At COP 26, India announced ambitious targets with enhanced 2030 NDCs, energy independence by 2047 along with a commitment towards net zero in 2070. Green finance is a key building block of this transition. India needs an estimated USD 2500 billion from 2015-2030 in order to achieve its NDCs, but as of 2018 only 18% of this target has been met. The need to mobilize finance exponentially in order to support the transition is urgent and demands attention.
However, one must also be mindful of unintended consequences of sudden financial market reforms. Increased coordination and dialogue amongst relevant stakeholders is the need of the hour, as we grapple with the question- How resilient is India’s financial system to such unprecedented changes?
In light of this, and to drive action in this regard, Small Industries Development Bank of India (SIDBI), Agence Française de Développement (AFD), and Shakti Sustainable Energy Foundation have convened an initiative in 2022, the Green Indian Financial System (GIFS) Initiative. This initiative which seeks to facilitate dialogues and discussions on greening the Indian financial system between French, European and Indian stakeholders, as well as to catalyse green finance initiatives and identify priority areas for action.
Inaugurated by the “Towards a Green Indian Financial System” conference on January 28, 2022, the initiative has continued throughout 2022 with different events, conferences and webinars to deepen important parameters of the greening of the financial system. The latest of such event was a very high-level seminar that took place in Paris from 13th to 15th of June 2022. 15+ CEOs of public and private Indian as well as regulators and officials were gathered to discuss their ambition, priorities and challenges on different thematics, and exchange with their French and European homologues.
From October 2022 onwards, the GIFS Initiative will focus on 2 dimensions: capacity-building; and networking/international expertise sharing and awareness raising – both dimensions that could provide tools for the Indian financial players to integrate climate issues more broadly in their strategy and operations.
Given the momentum and the success of the GIFS Initiative aims to extend its activities beyond 2022, with a continued network and conference cycle – especially through the Women in Climate Finance network.
Financing instrument: Partnership/ Network
PRESENTATION OF THE ORGANIZATION
AFD Group implements France's policy in the areas of development and international solidarity. The Group includes Agence Francaise de Developpement (AFD), which finances the public sector and NGOs, as well as research and education in sustainable development; its subsidiary Proparco, which is dedicated to private sector financing; and Expertise France, a technical cooperation agency. The Group finances, supports and accelerates transitions towards a fairer, more resilient world.
Small Industries Development Bank of India (SIDBI) set up on 2nd April 1990 under an Act of Indian Parliament, acts as the Principal Financial Institution for Promotion, Financing and Development of the Micro, Small and Medium Enterprise (MSME) sector as well as for co-ordination of functions of institutions engaged in similar activities.
Shakti Sustainable Energy Foundation seeks to facilitate India's transition to a sustainable energy future by aiding the design and implementation of policies in the following areas: clean power, energy efficiency, sustainable urban transport, climate change mitigation and clean energy finance.