Renewable Energy

India has raised $43 billion in the hidden universe of Green Bonds since 2014: Report

Priti Dubey

Notable because

Realising India’s clean energy ambitions requires capital mobilisation of at least USD 200 billion. RE projects are typically financed by conventional sources which may not have sufficient headroom left for further lending. Green bonds offer a lucrative alternative to meet RE financing needs owing to medium and longer tenors and greenium among other benefits. Indian developers see substantial interest in international green bond issuances as they have been oversubscribed by 3.6 times on average.

What to look out for in the months ahead

Will the introduction of a framework for sovereign green bonds (SrGB) in 2022 and the USD 2 billion SrGB issuance in Q1 2023 enhance market confidence?

Will green bond issuances, both domestic and international, be able to fill the financing gap for RE deployment in India?