Revolutionizing Climate Finance: India’s Multi-Billion Dollar Green Growth Strategy
Michael R. Bloomberg, serving as the UN Secretary-General’s Special Envoy for Climate Ambition and Solutions and the founder of both Bloomberg L.P. and Bloomberg Philanthropies, in collaboration with the Climate Finance Leadership Initiative (CFLI) India, unveiled financial strategies aimed at generating upwards of US$6.5 billion to aid India’s sustainable and climate-adaptive growth during COP28.
Endorsed by the Indian government, CFLI India’s coalition, comprising chief executives from prominent Indian and global financial and corporate entities, has joined forces with the international development sector to develop original financial solutions and enhance India’s policy framework conducive to growth.
CFLI India’s climate strategies, which span sectors such as electric mobility, the circular economy, green hydrogen production, and renewable energy, are designed to align with the Indian government’s climate objectives. These strategies are not only scalable throughout India but also have the potential for worldwide application. In the forthcoming decade, these initiatives aim to channel private investment toward the US$10.1 trillion required for India to achieve its 2070 carbon neutrality goal.
“The culmination of this public-private partnership will help India accelerate its clean energy transition and offers the way forward for India and others to reach net-zero targets, while also improving public health, creating jobs, and building a stronger and more resilient economy,” said Michael R. Bloomberg, UN Special Envoy for Climate Ambition and Solutions and Chair, CFLI.
“The Tata Group is committed towards climate sustainability and is proud to co-chair the CFLI India initiative. India needs very large investments to achieve the global 1.5-degree pathway in line with the Paris Agreement. CFLI India was formed with an objective of accelerating investment in sustainability sectors in India. Over the last two years, CFLI India members have partnered in developing concepts to address complex issues across themes such as e-mobility, circular economy for water and renewable energy."
"The concepts include innovative financial structures across the public and private sector for circular water economy, new financial products targeted to increase e-mobility adoption, and catalyzing investments for green ammonia and grid upgrades. This initiative has helped advance collaboration between public, private, and multilateral sectors. Learnings from this targeted and rapid approach to scaling climate related investments can be applied across markets,” said N. Chandrasekaran, Chairman, Tata Sons and Co-Chair, CFLI India.
“Unlocking large financial commitments for climate projects in emerging markets calls for close collaboration across the public and private sector. Our experience in India shows that multi-lateral finance institutions are ready to be catalytic and invest alongside private capital to create innovative, scalable solutions in sectors like e-mobility that are critical to slowing emissions growth and reducing air pollution,” said Shemara Wikramanayake, Managing Director and Chief Executive Officer, Macquarie Group and Co-Chair, CFLI India.
Members of CFLI India have unveiled a series of initiatives:
Endorsed by the Indian government, CFLI India’s coalition, comprising chief executives from prominent Indian and global financial and corporate entities, has joined forces with the international development sector to develop original financial solutions and enhance India’s policy framework conducive to growth.
CFLI India’s climate strategies, which span sectors such as electric mobility, the circular economy, green hydrogen production, and renewable energy, are designed to align with the Indian government’s climate objectives. These strategies are not only scalable throughout India but also have the potential for worldwide application. In the forthcoming decade, these initiatives aim to channel private investment toward the US$10.1 trillion required for India to achieve its 2070 carbon neutrality goal.
“The culmination of this public-private partnership will help India accelerate its clean energy transition and offers the way forward for India and others to reach net-zero targets, while also improving public health, creating jobs, and building a stronger and more resilient economy,” said Michael R. Bloomberg, UN Special Envoy for Climate Ambition and Solutions and Chair, CFLI.
“The Tata Group is committed towards climate sustainability and is proud to co-chair the CFLI India initiative. India needs very large investments to achieve the global 1.5-degree pathway in line with the Paris Agreement. CFLI India was formed with an objective of accelerating investment in sustainability sectors in India. Over the last two years, CFLI India members have partnered in developing concepts to address complex issues across themes such as e-mobility, circular economy for water and renewable energy."
"The concepts include innovative financial structures across the public and private sector for circular water economy, new financial products targeted to increase e-mobility adoption, and catalyzing investments for green ammonia and grid upgrades. This initiative has helped advance collaboration between public, private, and multilateral sectors. Learnings from this targeted and rapid approach to scaling climate related investments can be applied across markets,” said N. Chandrasekaran, Chairman, Tata Sons and Co-Chair, CFLI India.
“Unlocking large financial commitments for climate projects in emerging markets calls for close collaboration across the public and private sector. Our experience in India shows that multi-lateral finance institutions are ready to be catalytic and invest alongside private capital to create innovative, scalable solutions in sectors like e-mobility that are critical to slowing emissions growth and reducing air pollution,” said Shemara Wikramanayake, Managing Director and Chief Executive Officer, Macquarie Group and Co-Chair, CFLI India.
Members of CFLI India have unveiled a series of initiatives:
- Macquarie Group has initiated an unprecedented blended finance platform dedicated to providing tailored financing solutions to promote the uptake of electric vehicles among India’s fleet operators. This platform has effectively utilized a US$200 million equity investment from the United Nations’ Green Climate Fund and is seeking to secure an additional US$205 million from institutional investors to fund the platform. The long-term goal is to generate a total capital of US$1.5 billion, inclusive of debt financing.
- Tata Motors has formed strategic alliances with the State Bank of India, HSBC India, HDFC, Axis Bank, and Tata Capital to present enticing financing and leasing options for small-scale commercial and consumer electric vehicles. These partnerships aim to achieve an EV market penetration of 10-12% by the year 2030, representing a financial opportunity estimated between US$2.4 and US$3.0 billion over the period.
- Tata Group and Larsen & Toubro Ltd. have developed novel financial frameworks, particularly a partial risk guarantee mechanism, to facilitate Public-Private Partnerships (PPPs) at the municipal level. Preliminary discussions with the Government of Maharashtra are underway to pinpoint prospective initiatives. These financial models have the potential to release up to US$2 billion in private funds through PPPs by 2030. Both entities are also exploring collaborations with the World Bank to bolster municipal finance across Indian cities.
- Kotak Mahindra Bank Limited has disclosed their ongoing efforts to create a unique pooled funding mechanism that will empower leading municipalities to attract up to US$100 million in commercial funding for essential green municipal projects, including wastewater and solid waste management infrastructure.
- An affiliate of GIC Private Limited has entered into a partnership with AM Green, established by the founders of Greenko, along with Gentari, Petronas’ renewable energy arm based in Malaysia. This collaboration is set to produce 5 million tons of green ammonia annually by 2030, a move that is anticipated to expedite the achievement of net-zero objectives in both India and OECD countries. AM Green Ammonia Holdings, a fully capitalized entity under AM Green, plans to invest progressively in regions such as Andhra Pradesh, Tamil Nadu, Gujarat, Karnataka, and Himachal Pradesh in India. The fruition of this deal is contingent upon meeting standard preconditions.
The success of these endeavors has been greatly attributed to the collaborative efforts between public and private sectors. CFLI India’s members have worked in close coordination with the Government of India, His Majesty’s Government, and the international development community, including the Global Infrastructure Facility and the City of London Corporation, to successfully introduce these solutions to the marketplace.
“At State Bank of India, we are seized of the importance and urgency of addressing climate change and are dedicated to playing a pivotal role in India’s journey towards sustainability. As the largest Bank in India, our commitment goes beyond just providing financial solutions; it encompasses active engagement with policy makers, regulators, and key stakeholders for facilitating a conducive framework for achieving the country’s commitment to net-zero targets."
"In line with this commitment, SBI has established a dedicated ESG & Climate Finance Unit, headed by a senior functionary which is a testament to our proactive approach towards a sustainable future. Our strategic partnerships with major Multilateral Development Agencies, Development Financial Institutions, and key players in the green sectors such as renewable energy and electric vehicles sectors reflect our belief in the transformative power of finance to drive positive change and contribute to a greener, more sustainable tomorrow."
By supporting initiatives that contribute to climate resilience, we aim to strengthen India’s contribution in the global fight against climate change. State Bank of India is not just a Bank; it’s a partner in building a sustainable tomorrow,” said Dinesh Khara, Chairman, State Bank of India.
“The CFLI in India represents a trinity of government, corporate and citizen initiatives to accelerate the clean energy transition. The financial ecosystem plays a pivotal role in advancing India’s clean energy investment goals by mobilizing capital and financing. As active participants of the CFLI, we have been working towards developing financing models and creating enabling frameworks for priority to the sector. We have had the privilege to chair the working group on scaling E-mobility and charging infrastructure and have taken initiatives towards expanding sustainable lending for the EV ecosystem. We have also announced a grant supporting research for the real-world application of Green Hydrogen,” said Hitendra Dave, Chief Executive Officer, HSBC India.
“As a leading diversified and integrated financial services Group, Kotak Mahindra Bank is committed to offering sustainable financing solutions. CFLI India provides a great platform that connects like-minded institutions catalyzing enhanced ideation and execution of sustainable solutions using private capital at scale. We are excited in our journey towards developing innovative pooled structures that will enable municipalities to raise commercial capital to develop wastewater, solid waste management and other green infrastructures,” said Dipak Gupta, Managing Director and Chief Executive Officer, Kotak Mahindra Bank Limited.
“Climate change is the single largest challenge being faced by all of humanity. While the Indian government has initiated various programs to provide funding for multiple areas such as renewable energy, e-mobility, water and sanitation, there remains a massive funding gap. In this context, CFLI India members have made commendable efforts towards scaling up adoption of EV, promoting wastewater projects, and supporting use of renewable energy through financing structures and policy recommendations,” said S. N. Subrahmanyan, Chairman and Managing Director, Larsen & Toubro Ltd.
“In the transition to a lower carbon economy, partnerships such as CFLI India are indispensable, particularly in scaling groundbreaking technologies. By combining the innovative capabilities of the private sector with the strategic support of the public sector, we can accelerate the development and widespread adoption of these important climate solutions. These collaborations are not just partnerships; they are incubators for cutting-edge technologies, blending diverse resources, expertise, and novel financial structures,” said Sonjoy Chatterjee, Chairman and Chief Executive Officer, India, Goldman Sachs.
“The success of CFLI initiatives across multiple sectors exemplifies the robust partnership between the Government and private sector to build innovative solutions in developing India’s energy markets for achieving net zero objectives,” said Sashidhar Jagdishan, Managing Director and Chief Executive Officer, HDFC Bank Limited.
“India’s green infrastructure space is seeing a good flow of investment opportunities for long-term investors like GIC to participate in. We are pleased that CFLI India continues to serve as a multi-party initiative that members from private and public sectors can come together and develop even more opportunities to enable the transition to a net zero economy.” – Jeffrey Jaensubhakij, Group Chief Investment Officer, GIC Private Limited.
If you would like to learn more about CFLI India, click here.
“At State Bank of India, we are seized of the importance and urgency of addressing climate change and are dedicated to playing a pivotal role in India’s journey towards sustainability. As the largest Bank in India, our commitment goes beyond just providing financial solutions; it encompasses active engagement with policy makers, regulators, and key stakeholders for facilitating a conducive framework for achieving the country’s commitment to net-zero targets."
"In line with this commitment, SBI has established a dedicated ESG & Climate Finance Unit, headed by a senior functionary which is a testament to our proactive approach towards a sustainable future. Our strategic partnerships with major Multilateral Development Agencies, Development Financial Institutions, and key players in the green sectors such as renewable energy and electric vehicles sectors reflect our belief in the transformative power of finance to drive positive change and contribute to a greener, more sustainable tomorrow."
By supporting initiatives that contribute to climate resilience, we aim to strengthen India’s contribution in the global fight against climate change. State Bank of India is not just a Bank; it’s a partner in building a sustainable tomorrow,” said Dinesh Khara, Chairman, State Bank of India.
“The CFLI in India represents a trinity of government, corporate and citizen initiatives to accelerate the clean energy transition. The financial ecosystem plays a pivotal role in advancing India’s clean energy investment goals by mobilizing capital and financing. As active participants of the CFLI, we have been working towards developing financing models and creating enabling frameworks for priority to the sector. We have had the privilege to chair the working group on scaling E-mobility and charging infrastructure and have taken initiatives towards expanding sustainable lending for the EV ecosystem. We have also announced a grant supporting research for the real-world application of Green Hydrogen,” said Hitendra Dave, Chief Executive Officer, HSBC India.
“As a leading diversified and integrated financial services Group, Kotak Mahindra Bank is committed to offering sustainable financing solutions. CFLI India provides a great platform that connects like-minded institutions catalyzing enhanced ideation and execution of sustainable solutions using private capital at scale. We are excited in our journey towards developing innovative pooled structures that will enable municipalities to raise commercial capital to develop wastewater, solid waste management and other green infrastructures,” said Dipak Gupta, Managing Director and Chief Executive Officer, Kotak Mahindra Bank Limited.
“Climate change is the single largest challenge being faced by all of humanity. While the Indian government has initiated various programs to provide funding for multiple areas such as renewable energy, e-mobility, water and sanitation, there remains a massive funding gap. In this context, CFLI India members have made commendable efforts towards scaling up adoption of EV, promoting wastewater projects, and supporting use of renewable energy through financing structures and policy recommendations,” said S. N. Subrahmanyan, Chairman and Managing Director, Larsen & Toubro Ltd.
“In the transition to a lower carbon economy, partnerships such as CFLI India are indispensable, particularly in scaling groundbreaking technologies. By combining the innovative capabilities of the private sector with the strategic support of the public sector, we can accelerate the development and widespread adoption of these important climate solutions. These collaborations are not just partnerships; they are incubators for cutting-edge technologies, blending diverse resources, expertise, and novel financial structures,” said Sonjoy Chatterjee, Chairman and Chief Executive Officer, India, Goldman Sachs.
“The success of CFLI initiatives across multiple sectors exemplifies the robust partnership between the Government and private sector to build innovative solutions in developing India’s energy markets for achieving net zero objectives,” said Sashidhar Jagdishan, Managing Director and Chief Executive Officer, HDFC Bank Limited.
“India’s green infrastructure space is seeing a good flow of investment opportunities for long-term investors like GIC to participate in. We are pleased that CFLI India continues to serve as a multi-party initiative that members from private and public sectors can come together and develop even more opportunities to enable the transition to a net zero economy.” – Jeffrey Jaensubhakij, Group Chief Investment Officer, GIC Private Limited.
If you would like to learn more about CFLI India, click here.
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