A panel of the International Financial Services Centres Authority has recommended the development of a voluntary carbon market and the creation of a global climate alliance among other measures to grow the sustainable financing ecosystem through India’s offshore financial services center, GIFT-IFSC.
The committee also recommended devising a framework for transition bonds, promoting regulatory sandbox for green fintech, and setting up of a platform for sustainable lending for small and medium enterprises, the federal government said in a statement.
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The main focus of the final report submitted by the panel was to explore ways in which capital flows can be channelized to meet the nation’s net-zero commitments and also support development of innovative financial products in green and sustainable finance, the statement said. The committee also backed the use of instruments such as catastrophe bonds, municipal bonds and green securitization, it said.
Source: Bloomberrg