Expert Committee on Climate Finance submits First Report on Transition Finance to IFSCA

• The Expert Committee on Climate Finance has submitted its first report on Transition Finance to the Chairperson, International Financial Services Centres Authority (IFSCA),

Highlights:

• The Expert Committee on Climate Finance was constituted by IFSCA to provide a roadmap to develop a climate finance ecosystem and instruments at GIFT IFSC with a special focus on Transition Finance as well as to provide recommendations on establishing the GIFT-IFSC as a global hub for climate financing.
• The Committee includes experts across policy think tanks, standard setters, consultants, industry, and global financial institutions.
• The Report on Transition Finance captures the recommendations by the Expert Committee under three pillars:
  1. Scope and definition of Transition Finance
  2. Policy and Regulation,
  3. Financial Mechanisms and Instruments.
• It emphasizes the role of transition finance in driving investments towards hard-to-abate sectors such as steel, cement, shipping, fertilizers etc. which are crucial for economic growth of India and other developing nations.
• The report offers strategic recommendations to IFSCA and policy makers by exploring global best practices and regulatory landscapes, to enhance the role of GIFT-IFSC as a gateway for attracting international climate capital flows in order to achieve India’s ambitious goal of achieving net-zero by 2070.
• IFSCA will commence work on a framework for Transition Finance based on the report.
• The Committee is expected to continue its work and draft its next report on “Transforming GIFT-IFSC into a Climate Finance Hub”.

Prelims Takeaway:

• GIFT city
• Climate Finance