In an insightful interview with SolarQuarter, Mr Dhruba Purkayastha, Interim India
Director and Director of US India Clean Energy Finance (USICEF) talks about how
India is positioned in receiving green investments, how India’s green sector has
grown over time and the need of a comprehensive climate budget tagging framework.
Please tell our readers about the services CPI provides in the clean energy sector.
In India, CPI manages long-term climate, clean energy, and green finance related innovative programs such as The Global Innovation Lab for Climate Finance (the Lab) and the US-India Clean Energy Finance (USICEF) Facility. We are also building a Green Finance Program in India which includes tracking of green finance investment flows, developing a taxonomy for Green Finance in India, and organizing a banking, financial services and insurance (BFSI) collaborative. We have also undertaken several studies on India’s renewable sector, particularly from the financial perspective, which has time and
again influenced policy, regulation, and business decision making.
How has India’s green sector grown over time compared with overall GDP?
The GDP of India grew at an average rate of 7.2% between 2016-2017 and 2017- 2018. In the same period, green investment increased by 24%. Between FY2017 and FY2018, India’s Gross Fixed Capital Formation (GFCF) to GDP ratio was 28%, while green investments averaged ~1% of GDP. While the data is insufficient to develop a relationship between the two variables, it indicates that green investments have the potential to drive the economic growth of the country.
Why does India need an integrated domestic Measurement and Reporting System for tracking Green Finance?
A systematic assessment to track current levels of investments would be the first step to gauge whether India is on track to achieve its set goals. Effective, comprehensive, and nation-wide reporting of green finance flows will help to build trust with national and international investors. The identification and measurement of existing sources of green finance offer numerous benefits: Identifying and tapping the right capital providers for green sectors; improving transparency and accountability of the Government’s action plans on climate change; bringing better macro-level reporting on flows of green capital.
Read the full interview here: https://solarquarter.com/2021/01/16/solarquarter-india-december-2020-issue/