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CII Asks Govt To Set Up A Finance Institution, Tech Fund To Boost The Green Economy

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CII has asked government to create a special finance institution and a tech expo fund to support efforts to grow the green economy

CII

Industry group CII has asked the government to create a special finance institution and a tech expo fund to support efforts to grow the green economy, saying there are big gaps in long-term and low-cost capital in the country.

As India gets closer to its goal of becoming a USD 5 trillion economy, moving towards a green economy is now a strategic need, not just a choice. In its pre-Budget suggestions, CII recommended setting up a Green Finance Institution (GFI) to bring in large amounts of low-cost capital for India’s green transition in areas like renewable energy, clean transportation, green buildings, and reducing industrial pollution.

The institution could be based in GIFT City in Gujarat to use flexible regulations and attract foreign investment. It could offer low-interest loans, equity support, credit guarantees, and help with financing small green projects to lower costs.

CII also suggested a green tech expo fund to help Indian green tech companies join global sustainability and technology expos, making it easier to work with international investors, buyers, and partners. For green transition finance, CII said India needs about USD 1 trillion in green investments over the next 10-15 years, reaching nearly USD 10 trillion by 2070, to reach net zero emissions by 2070. But right now, only about 25 percent of this need is being met, showing big gaps in long-term, low-cost capital.

CII also recommended setting mandatory recycling and urban-mining targets for lithium batteries and electronics, with strict certification to stop unprocessed scrap exports. Fiscal incentives and faster approvals could help increase domestic refining and stockpiling of important recovered minerals.

(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI)

Aparna Deb

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More

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