Green Bank Proposal: A Catalyst for Climate Finance

PHDCCI has recommended the establishment of a Green Bank to attract private investments in sustainable technologies. The proposal includes budgetary support, risk-sharing, and transparency measures. Additional suggestions include boosting MSME credit, supporting export sectors, and ensuring liquidity.

The PHDCCI has proposed the creation of a Green Bank to spur private investment in green technologies like renewable energy and electric vehicles. This recommendation comes as part of their pre-Budget suggestions.

During a pre-Budget session with the BFSI sector, participants highlighted the importance of budgetary aid and risk-sharing mechanisms, along with transparent frameworks, to support green lending. They also advocated for the Green Bank to have fundraising capabilities through green bonds.

The recommendations also call for increased credit to MSMEs, support for export-focused sectors, and enhanced liquidity, urging the need for effective transmission of rate cuts. The Union Budget will be presented on February 1.

(With inputs from agencies.)