The committee has provided its recommendation on various aspects of sustainable finance including products, policies and regulations, capacity building and outreach initiatives related to green and sustainable finance, IFSCA said in a statement

The report of the committee of experts would go a long way in shaping GIFT IFSC’s strategies to emerge as an international hub for green finance, while also channelizing global capital to meet India’s net zero commitments, IFSCA chairperson Injeti Srinivas said.

New Delhi:

The International Financial Services Centres Authority (IFSCA) on Wednesday said an expert panel headed by former environment and forest secretary C K Mishra has submitted a report on sustainable finance suggesting development of carbon market among other things.

The committee has provided its recommendation on various aspects of sustainable finance including products, policies and regulations, capacity building and outreach initiatives related to green and sustainable finance, IFSCA said in a statement.

Some important recommendations include developing a voluntary carbon market, framework for transition bonds, enabling de-risking mechanisms, promoting regulatory sandbox for green fintech and facilitating the creation of a global climate alliance among others.

Considering the significance of the MSME sector in the economic development of the country, it said, the committee also proposed setting up of a dedicated MSME platform for sustainable lending.

The committee recommended the use of innovative instruments such as catastrophe bonds, municipal bonds, green securitisation, blended finance among others, it said.

”Focusing on the need to enhance capital flows in IFSC, the committee endorses the need to enable aggregation facilities, impact funds, green equity etc. in IFSC. In addition to the above, it recommends IFSCA to play a vital role in capacity building which lays the foundation for greening the financial system,” it said.

The committee, whose members comprised of leaders and experts from the entire sustainable finance ecosystem, submitted its report on October 3.

“The unique mix of the committee members and the vast canvas on which the recommendations are based will surely provide the right start for the efforts being taken by IFSCA and project it as the hub for sustainable finance,” Mishra said.

The report of the committee of experts would go a long way in shaping GIFT IFSC’s strategies to emerge as an international hub for green finance, while also channelizing global capital to meet India’s net zero commitments, IFSCA chairperson Injeti Srinivas said.

IFSCA was established in April 2020 under the International Financial Services Centres Authority Act, 2019. It is headquartered at GIFT City, Gandhinagar. IFSCA is a unified authority for the development and regulation of financial products, financial services and financial institutions in the Interxcnational Financial Services Centre (IFSC) in India.

At present, GIFT IFSC is the only international financial services centre in India. Prior to the establishment of IFSCA, the domestic financial regulators, namely, RBI, Sebi, PFRDA and IRDAI regulated the business in IFSC. The main objective of IFSCA is to develop a strong global connect and focus on the needs of the Indian economy as well as to serve as an international financial platform for the entire region and the global economy as a whole.