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Investments in economy need to be sustainable: Rajasree Ray, Economic Adviser, Ministry of Finance
Jan 28, 2020
London with its deep capital markets, expertise in green finance and low carbon transition is a partner of choice: Catherine McGuinness, Policy Chair, City of London Corporation
NEW DELHI, 28 January 2020: Ms Rajasree Ray, Economic Adviser, Ministry of Finance, Govt of India, today said that India, which is aiming for $5 trillion economy by 2024-25, needs to ensure that investments made in the economy are sustainable in terms of low carbon emission.
Speaking at 'India-UK Dialogue: Supercharging Sustainable Finance in India', organised by FICCI in collaboration with UK's Foreign & Commonwealth Office', the City of London and Climate Bonds Initiative, Ms Ray said that sustainable finance is no longer in the margins of discourse, but serious effort is being made to mainstream it.
"The challenge is not only to mobilise resources and invest in various segments of the economy including infrastructure but to ensure that these investments are going to be sustainable particularly consistent with low carbon and sustainable development pathway," she said.
Ms Rajasree Ray said that India joined the International Platform on Sustainable Finance in October 2019 acknowledging the fact that the global nature of financial markets has the potential to help finance the transition to a green, low carbon and climate resilient economy by linking financing needs to global sources of funding.
Ms Catherine McGuinness, Policy Chair, City of London Corporation, said that India is one of the few countries with commitment compatible with the ambitions of the Paris Agreement. For meeting India's clean growth needs and the ambitions of the Paris Agreement will not just require energy transition, but it will require a repetition of that feat across the economy whether that's in transport, agriculture, or in waste. And, that will require even more capital and investment, she said.
"London with its deep capital markets, its expertise in green finance and its own experience of low carbon transition is a partner of choice. And, indeed that's why we have set up the UK-India Green Finance Working Group. We recognise just how important it is to invest in India and to invest in the green transition, " she added.
Mr Rajnath Ram, Adviser, NITI Aayog, said that massive finance is needed for the growth of the renewable energy sector. He also said that NITI Aayog is soon coming with policy for storage of batteries.
The first report of the India-UK Working Group on Sustainable Finance titled 'Untapped Potential: Supercharging Green Finance in India' was released during the event.
Ms Natalie Toms, Economic Counsellor, British High Commission, said that climate action is a priority for both India and the UK, and it is a natural area for partnership between the two nations.
Mr Hitendra Dave, India Co-Chair, India-UK Working Group on Sustainable Finance and MD & Head of Global Banking and Markets, HSBC India, said that the report is a high-quality work and provides a platform to start working with its set of recommendations. He added that the India Working Group is a set of highly qualified key constituents of the market both from the investors/ lenders side as well as the issuers/ borrower�s side and together with the UK side will look at delivering practical and implementable solutions to mobilise sustainable finance.
Mr Richard Abel, UK Co-Chair, India-UK Working Group on Sustainable Finance and MD, UK Climate Investments, Macquarie, said that green financing is gaining popularity in India and that there is a need to improve the visibility of bankable projects.