New Delhi: Mr Amitabh Kant, CEO, NITI Aayog on Thursday said that NITI Aayog is committed to ensure the development of policy frameworks for accelerating sustainable finance flows in India to achieve its SDGs.
Addressing the Report Launch Event- India-UK Sustainable Finance Working Group by FICCI and City of London Corporation, Mr Kant said that India needs substantial investments to the tune of USD 260 billion every year to meet its sustainable development goals (SDGs) by 2030. “Govt of India, through the production-linked incentive (PLI) scheme will be providing incentives to the tune of USD 26 billion, which also includes sunrise sectors of electric vehicles and solar power. India has been the second fastest growing market in sustainable investments,” he added.
FICCI and City of London Corporation on Thursday virtually launched the report, Practical Actions to Finance India`s Sustainable Recovery, under the India-UK Sustainable Finance Working Group. The report launch brought together key dignitaries on UK and Indian stakeholders who deliberated on ways to deepen UK-India partnership on sustainable finance.
Speaking at the event, Mr Uday Shankar, President, FICCI said that sustainable finance and climate change imperatives are closely intertwined, each being the trigger for the other. “As we move towards COP-26, the climate conference of parties in Glasgow later this year to be presided over by the UK, the India-UK Sustainable Finance Working Group can play a catalytic role in bringing clear implementable solutions to enable the policy ecosystem and market creation for sustainable finance in India to meet India’s climate priorities and sustainable development goals,” he added.
Lord Mayor of the City of London, Rt Hon Alderman William Russell said that he was delighted that the UK is working ever more closely with Indian partners as UK looks towards its hosting of COP26 later this year. “The UK India Sustainable Finance Working Group exemplifies these efforts and has gathered huge momentum to drive new capital into India’s sustainable finance framework,” he added.
The Lord Mayor also stated that the group’s latest report provides granular recommendations for government and the private sector to unlock capital for a sustainable recovery, which will be central to discussions as green finance continues to grow in India.
Hitendra Dave, India-UK Sustainable Finance Working Group & Managing Director and Head of Global Banking and Markets, HSBC India called the report as being one of the most comprehensive bodies of work on the sustainable finance agenda, and yet practical from the point of clear short-term and long-term recommendations that can now be picked up by relevant authority or regulators for further examination.
Richard Abel, UK Co-Chair, India-UK Sustainable Finance Working Group in India, and Managing Director, UK Climate Investments said that bringing together UK, City of London innovation and expertise with Indian market leaders has led to focussed, concrete proposals to increase sustainable capital flows.
Dr C S Mohapatra, Additional Secretary, Department of Economic Affairs, Ministry of Finance said that the recommendations need to be fructified in a timebound manner. He suggested that right regulatory regime with right incentives to investors are important. Dr Mohapatra congratulated his counterparts in HMT, Government of UK, his colleagues in Ministry of Finance, co-chairs of the working group, FICCI and COL on the report launch.
Richard Knox, Director, Financial Services (International), HMT noted that sustainable finance is an important agenda for UK and India as massive amounts of such capital will be required by 2035. He said that he was pleased to see UK-India collaboration on sustainable finance.
Natalie Toms, Chief Economist and Counsellor, British High Commission, Delhi said that it was good to see that the India-UK Sustainable Finance Working Group was recognised during 10th Economic & Financial Dialogue between Governments of India and UK. The report makes important recommendations to accelerate sustainable finance flows in India, she added.
FICCI and City of London are together anchoring the India-UK Sustainable Finance Working Group established after the 9th Economic and Financial Dialogue (EFD) and comprising of senior executives from some of India’s largest lenders (banks and non-banks), investors (asset managers, pension funds) representing the interests of the providers of capital/finance and has amongst its members some of the largest issuers and borrowers to represent the interest of the beneficiaries of such capital and finance. The Joint Statement of the 10th Economic and Financial Dialogue released by Finance Minister of India and Chancellor of the Exchequer of UK on 28 October 2020 had welcomed the India-UK Sustainable Finance Working Group.
The recommendations of the Working Group have been made with reference to sustainable finance taxonomy, mobilising domestic capital for sustainable projects, and facilitating international finance flows to support India’s climate and sustainable development goals. The report can be accessed on http://www.ficci.in/sector-studies.asp?sectorid=14.