India needs a joint classification to finance transition only: Report

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India lacks a joint classification of transitional financing, which makes it difficult to determine the financial flows, measure and insult them, according to a new report issued by the Institute of Economics and Financial Analysis (IEFA).

With the acceleration of climate obligations in India, the energy transmission must also be only-which means that the shift from fossil fuels should be comprehensive, fair and supportive of workers and societies that depend on the intensive carbon sectors such as coal, steel, cement and cars.

The stakeholders emphasized the need for clarity about what constitutes the alignment of the transition only to effectively fill the capital.

The ecosystem of a fair transition (JT) includes coordination between organizers, ministries, financial institutions, companies and civil society, each of which plays intertwined and decisive roles.

While sustainable financing is developing in India, there is a large gap in financing social priorities such as the reformulation of workers, the elasticity of society, and regional economic diversification.

“The capital can be mobilized through the public and private sources, with which ministries are guided by financing and mixed incentives. Companies and their supply chains are the key to implementation, especially in the sectors with high emissions,” says the author of the report, Gaurav Upadhyy, an IEFA energy financing specialist.

Financial tools such as PSL (priority sector lending), green deposits, and sovereign green bonds can be modified to include eligibility standards and JT alignment standards.

For example, Seebi began to report sustainability through BRSR products and ESG products, but JT indicators are still missing. BRSR expansion to include social risks, JT can help direct capital to companies that have reliable transitional plans, “says Labanya Prakash Jena, a dedicated consultant and sustainable consultant in IEFA.

Investing in capacity -building, financial innovation, and comprehensive planning will ensure that the transmission of energy in India not only reduces climate risk, but also enables its members and regions for a more fair future.



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