BS EDIT: The Rise and Fall of ESG Investing

By Business StandardPublished On Dec 17, 2024

ESG Investments Lose Momentum

Post-pandemic boom in ESG funds fades; $24 billion exited globally in 2024

ESG stocks, including solar and wind, underperform broader markets

Politics vs ESG in US

President-elect Trump may undo Biden's climate policies as GOP states oppose ESG, calling it "woke capital"; US ESG funds decline for two years

Implications for Developing Nations

Decline in ESG finance could stall green transitions in nations like India

Concessional private funding opportunities dwindle as global focus shifts

India’s Delays Cost Opportunities

Bureaucratic inaction hampers green finance taxonomy in India

Lack of harmonised regulations deters international investors

Lessons from Global Leaders

EU, Indonesia, and Sri Lanka adopt clear, interoperable ESG guidelines

India risks being left behind by reinventing regulatory wheels

Path Forward for India

Adopt EU-like taxonomies, focus on green steel, align with global initiatives, and attract private capital with simplified, clear regulations