The committee is chaired by Dhruba Purkayastha India Director for Climate Policy Initiative and has members including Shalabh Tandon, Interim Regional Director and South Asia Regional Head of Operations & Climate Change, IFC (World Bank Group), Prabodh Acharya, chief sustainability officer, JSW Group, Gaurav Bhagat, MD & Head of Financial Institutions, South Asia, MUFG, Piyush Jha, Head, Climate and Sustainable Finance, Tata Steel Limited
Gandhinagar:
In a bid to promote Gujarat International Finance Tec-City(GIFT City), India’s first International Financial Services Centre(IFSC) as a global hub of sustainable finance. the International Financial Services Centre Authority (IFSCA), has formed an expert committee on Transition Finance to formulate a regulatory framework to promote green and sustainable labelled debt securities.
The committee is chaired by Dhruba Purkayastha, India Director for Climate Policy Initiative and has members including Shalabh Tandon, Interim Regional Director and South Asia Regional Head of Operations & Climate Change, IFC (World Bank Group), Prabodh Acharya, chief sustainability officer, JSW Group, Gaurav Bhagat, MD & Head of Financial Institutions, South Asia, MUFG,. Piyush Jha,Head, Climate and Sustainable Finance, Tata Steel Limited.
Despite the significant global growth in instruments for financing environmentally friendly activities, in the past few years, the mobilisation of funds has been more inclined to certain sectors of the economy, whose activities are related to near-zero carbon emissions, said IFSCA.
The need of the hour is to fund the transition journey of all sectors, especially hard-to-abate sectors, in order to achieve Paris agreement goals and SDGs,noted IFSCA.
Transition finance instruments such as transition bonds, transition loans etc. have emerged as an alternative to address the financing gap needed to achieve Paris agreement goals and which is inclusive of sectors and geographies across industries.
IFSCA has undertaken numerous regulatory initiatives for development of financial instruments at IFSC to facilitate capital flows towards climate action in India and other developing countries.
These initiatives have led to listing of USD 10.1 Bn ESG-labelled debt securities, issuance of more than USD 700 Mn green/sustainable loans, and set-up of an ESG Engagement Fund at IFSC.