New Delhi: Industry body CII has urged the government to set up a dedicated finance institution and tech expo fund to support initiatives related to promoting the green economy, as there are significant gaps in long-term and low-cost capital availability in the country.As India moves closer to its goal of becoming a USD 5 trillion economy, advancing a green economy is no longer a choice but a strategic necessity, it said.
In its pre-Budget suggestions, the chamber has suggested establishing a dedicated Green Finance Institution (GFI) to mobilise large-scale, low-cost capital for India's green transition across renewable energy, clean mobility, green buildings, and industrial decarbonisation."The institution could be domiciled in the GIFT City (in Gujarat) to leverage regulatory flexibility and attract foreign capital. It could offer concessional loans, equity support, credit guarantees, and securitization of small-scale green assets to reduce project financing costs," it said in a statement.
It has also called for a green tech expo fund to help globalise India's green tech innovations.The fund, it said, could support participation of Indian enterprises engaged in producing green technology, in global sustainability and technology expos, facilitating collaborations with global investors, buyers, and technology partners.On green transition finance, the chamber said, India needs an estimated USD 1 trillion in green investments over the next 10-15 years, cumulatively reaching nearly USD 10 trillion by 2070, to achieve the goal of net zero emissions by 2070.
"However, current green finance flows cover only about 25 per cent of this need, highlighting significant gaps in long-term, low-cost capital availability," it said.The chamber has further recommended mandatory recycling and urban-mining targets for lithium batteries and electronics with strict certification to curb unprocessed scrap exports."Fiscal incentives and fast-track clearances could be facilitated to boost domestic refining capacity and strategic stockpiling of recovered critical minerals," it said.
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