Using Green Bonds to Raise International Capital for India's Transition to a Low-Carbon and Climate Resilient Economy Phase-(II)

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India faces huge investment requirements for its transition towards a low-carbon and climate resilient economy, and government has made it clear private sector investments as well as tapping in to international capital markets will be crucial to cover this vast capital gap. Green/Masala bonds with access to private capital at scale through the international bond markets can offer lower cost of capital compared to domestic bank lending covering various climate sensitive projects and green infrastructure investments in railways, renewable energy, water infrastructure, low carbon buildings and many other sectors. The British High Commission had been promoting green/masala bonds as well as the city of London as a preferential and eases to access capital market for Indian issuers. Our efforts in led some prominent Indian business taking the green bond route to meet their financial requirement e.g. NTPC - $300m (listed in London issuing the world's first "green masala bond" in London (a green bond issuing in Indian Rupees), Axis Bank - $500m (again listed in London stock exchange). Our support also assisted in shaping up the India-UK green finance forum, which is now actively engaged in formulating Green Bonds regulation in India. The phase (II) of this support is meant to accelerate the ongoing momentum on green bond and to closely work with key stakeholders in GOI for promoting the India-UK green finance forum as a government to government forum.