Draft Report on Transition Finance by Expert Committee on Climate Finance

IFSCA has published the First Report on Transition Finance by Expert Committee on Climate Finance. It emphasizes the role of transition finance in driving investments towards hard-to- abate sectors such as steel, cement, shipping, fertilizers etc. which are crucial for economic growth of India and other developing nations. The report offers strategic recommendations to IFSCA and policy makers by exploring global best practices and regulatory landscapes, to enhance the role of GIFT-IFSC as a gateway for attracting international climate capital flows in order to achieve India’s ambitious goal of achieving net zero by 2070.

Terms of References of the Committee

1. To assess the trends in climate financing across the world, identify best practices and assess requirement of climate Finance with special focus on transition in India by 2047.
2. To recommend a regulatory framework for transition finance instruments utilizing the IFSCA draft framework as a starting point.
3. To recommend policy measures by Government of India in order to promote transition finance from GIFT IFSC, including legal, taxation, regulatory etc.
4. To advise IFSCA on the approach to developing a reliable and cost-effective ecosystem for transition finance meeting needs of Indian industry.
5. To provide a roadmap and timelines for IFSCA to develop climate finance ecosystem and instruments at GIFT IFSC.
6. To recommend policies and regulations for establishment of GIFT-IFSC as the global hub for climate financing, as deemed fit by the committee.