 "International Financial Services Centres Authority IFSCA")
The International Financial Services Centres Authority (IFSCA) has constituted an expert committee on transition finance to formulate a regulatory framework to promote green and sustainable debt securities.
The committee, which includes representatives from corporates, banks, standard setters, exchanges, consultants, and think tanks, will be chaired by Dhruba Purkayastha, the India Director for Climate Policy Initiative.
The committee has been tasked to assess the trends in the segment and identify the best practices for transition finance in India by 2047.
Along with providing a roadmap and timeline for developing this ecosystem in India’s maiden IFSC, GIFT City, the committee will recommend policy decisions to the government to address taxation, legal, and regulatory affairs.
Several ongoing initiatives towards developing IFSC as the hub for sustainable finance instruments have led to significant issuance.
These initiatives have led to the listing of $10.1 billion ESG-labelled debt securities, issuance of more than $700 million in green/sustainable loans, and the setup of an ESG Engagement Fund at IFSC—as per the official disclosures.
The additional regulatory and policy measures will help India Inc to fund its transition to net-zero carbon emissions through transition bonds and transition loans.
