October 5

A panel appointed by the International Financial Services Centre Authority (IFSCA) has recommended ways to promote a regulatory sandbox for green fintech besides developing a voluntary carbon market and framework for transition bonds, among other measures for a sustainable finance ecosystem. The recommendations covered various aspects of sustainable finance including products, policies and regulations, capacity building and outreach initiatives related to green and sustainable finance. The Committee of Experts on Sustainable Finance has also recommended enabling de-risking mechanisms and the creation of a global climate alliance. Therecommendations, submitted to IFSCA on October 3, also suggested innovative instruments such as catastrophe bonds, municipal bonds, green securitisation, and blended finance, among others. To enhance capital flows it endorsed aggregation facilities, impact funds, green equity, and so on. Chaired by CK Mishra, former secretary to Government of India, Ministry of Environment, Forest and Climate Change, the committee comprised experts from national and international institutions in the field of sustainable finance. Mishra said, “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.” The committee has recognised the significance of the micro, small and medium enterprises (MSME) sector in the economic development of the country, and proposed a dedicated platform for sustainable lending. “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,” Injeti Srinivas, Chairperson IFSCA said.