New Delhi [India], October 27 (ANI): An estimated USD 10 billion in catalytic capital could help mobilise USD 50 billion in blended finance, paving the way for investments worth USD 500 billion across 20 low-carbon technologies by 2030 to meet India's climate goals, according to a report by CEEW and Tata Sons.
The report, titled "Blended Finance for India's Climate Goals," launched by the Council on Energy, Environment and Water's Green Finance Centre (CEEW-GFC) and Tata Sons, noted that USD 50 billion in blended finance could be mobilised with just USD 10 billion in catalytic capital.
This indicates that “every dollar of catalytic capital mobilises five dollars in blended finance - an indicative leverage multiple of 5x.”
Highlighting the sector-wise investment requirements, it noted, “India needs USD 500 billion in climate investment by 2030 across 20 low-carbon technologies in these sectors: USD 198 billion, or 39.6 per cent of the total, in power and renewables; USD 115 billion, or 23 per cent, in green hydrogen; and USD 187 billion, or 37.4 per cent, in electric mobility.”
The report further explained that the amount of catalytic capital required varies depending on the technological and economic maturity of clean technologies and their established track records.
For instance, solar energy, being a relatively mature technology, has an estimated leverage multiple of 35x, as it primarily requires credit enhancement guarantees to attract commercial investments.
In contrast, green hydrogen, which remains at a nascent stage, has a leverage multiple of just 2x, reflecting its greater need for equity support and risk-sharing mechanisms.
At the sectoral level, the report estimated that power and renewables would require USD 1.5 billion in catalytic capital through 2030, while green hydrogen would need USD 5.9 billion and electric mobility USD 2.7 billion.
Between 2010 and 2022, India recorded USD 5.6 billion in blended finance transactions, accounting for 3.4 per cent of the global market, with catalytic capital contributing just 17 per cent. To boost financing for low-carbon technologies, the report proposed establishing a National Green Finance Institution, as recommended by NITI Aayog, to pool catalytic capital from governments, philanthropies and development partners.
N Chandrasekaran, Chairman, Tata Sons, said, "India's development path calls for decarbonisation while continuing to industrialise, urbanise, and expand prosperity. These twin imperatives place extraordinary demands on our energy systems, industries, and mobility networks, and meeting our 2030 climate commitments will require over half a trillion dollars of investment across them. Conventional finance alone will be insufficient — India needs capital willing to absorb early risks, remain patient, and accept lower near-term returns in pursuit of much larger long-term gains. This is where blended finance becomes critical. With the right financial architecture and incentives, India's climate transition can become a powerful engine of innovation, competitiveness, energy security, and sustainable livelihoods." (ANI)
USD 10 billion catalytic capital could help unlock USD 500 billion for India's climate goals by 2030: CEEW-Tata Sons report
