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BFSI Chronicle, 11 Edition September2022
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corporates, lenders and the government in an green capabilities, by not only the direct lenders but
equitable and efficient manner, for which in depth also alternate investment funds, asset management
analysis and detailed examination of various companies, insurance and pension funds etc.
projects and programs will have to be undertaken. We may even require a separate institution with
sufficient capital and expertise to spearhead
The gigantic task of achieving 500 GW of non fossil the green financing initiative over the years.
fuel power generation capacity will require a robust
mechanism of funding the traditional solar and D. Conclusion
wind projects as also the emerging opportunities On the climate change front, it is virtually a “DO
in battery and power storage and off-shore wind or Die situation” now and the very survival of the
energy. Funding of EV based projects and new human race is at stake. Various agencies at global
technologies like green hydrogen will create new level are prodding the governments to take urgent
avenues of lending. Similarly, specific funding may action in this direction. India has also taken up the
be required to reduce green house gases emissions challenge in right earnest and set up ambitious targets
in existing setups, efficiency improvements in for net Zero emissions, dependence on renewable
transition sectors, and sustainability linked loans. energy and sustainable growth. The Financial
Sector, as the key driver of growth and sustainable
The recently set up National Bank For Financing development,has a challenging task before it. All the
Infrastructure and Development (NaBfid) and all stakeholders involved are however gearing up to
other existing lenders along with National Investment meet these challanges in a pragmatic manner with
and Infrastructure Fund (NIIF) have a crucial role comprehensive assessment of the issues involved, the
to play to achieve the desired objectives. Pooling possible mitigation steps and the capacity building to
of finances and disbursement of investments in ensure effective and orderly implementation of the
a collaborative manner may become essential. strategies. The way forward for the Financial sector
is challenging but full of opportunities to successfully
There will be a need to develop and improve the lead us to a greener future.

The Institute Of Cost Accountants Of India

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