Can Green NBFCs Take Climate Finance To The Last Mile?
Notable because
In India, non-bank finance companies (NBFCs) play an important role in financing energy in general, and the energy transition in particular. However, India’s financing requirements to achieve its clean energy ambitions are immense. As such, new specialist pure play green finance companies could contribute significantly to mobilising much needed capital – estimated to be USD 10 trillion for India to achieve net zero by 2070.
What to look out for in the months ahead
Will new green NBFCs increasingly look to local equity markets to raise capital – given the healthy interest generated by recent green issuances in India? Traditional green sectors such as renewables are already serviced by several lenders – will new green NBFCs focus more on emerging green sectors such as green hydrogen?