New Delhi [India], August 28 (ANI): The India Sustainability Taskforce, constituted by the Confederation of Indian Industry (CII), has recommended an integrated framework to accelerate India's sustainability transition, including a phased climate finance taxonomy, a credible carbon market, a dedicated Green Finance Institution and stronger sustainability reporting.
The recommendations were discussed at a panel discussion during the launch of the taskforce's report, chaired by Jayant Sinha, Chairman, CII India Sustainability Taskforce, with former SEBI chairman Ajay Tyagi, former State Bank of India chairman Rajnish Kumar, Crisil CEO Amish Mehta and IIM Ahmedabad professor Amit Garg participating in the panel.
Sinha said the framework was aimed at creating a coordinated approach to sustainability while also helping India mobilise the investment needed for the transition.
"We need to have a price for carbon, a discovered price for carbon, for a carbon market. The government has already begun work in this regard, but it needs to be deepened and clarified further," Sinha said while outlining the recommendations.
The taskforce's five recommendations include a whole-of-government and whole-of-society approach to sustainability, a clear green taxonomy defining sustainable activities, a price for carbon through a carbon market, a dedicated green finance institution and a new reporting standard to replace BRSR 1.0 with a more streamlined BRSR 2.0 aligned with global standards.
A key recommendation is the creation of a dedicated green finance institution that could potentially be funded through carbon markets and help accelerate investment in green technologies and projects.
Rajnish Kumar said the proposed institution should have specialised capabilities in project appraisal and risk assessment and support blended finance. He said India's sustainability transition could require an estimated USD 10 trillion by 2070, making it difficult for domestic capital alone to meet the financing requirement.
The taskforce also stressed the need for greater international alignment on green finance. Ajay Tyagi said domestic funding currently meets only around 40 per cent of projected requirements, making foreign capital important for meeting India's sustainability investment needs.
"I think it should match at least 70-75 per cent of what EU regulations are if you want really investment," Tyagi said, referring to the need for India's green taxonomy to align more closely with international standards.
On reporting, the taskforce proposed BRSR 2.0 with fewer and simpler indicators while improving alignment with global standards.
Sinha said the sustainability framework could eventually extend beyond carbon emissions to other scarce resources, including clean air, land, biodiversity and water, as India works towards a greener development path. (ANI)
CII taskforce proposes five-point roadmap to accelerate India's green transition
