India needs an estimated $1 trillion in green investments over the next 10-15 years, cumulatively reaching nearly $10 trillion by 2070, to achieve net zero emissions by 2070.
However, current green finance flows cover only about 25% of this need, highlighting significant gaps in long-term, low-cost capital availability.
“As India moves closer to its goal of becoming a $5 trillion economy, advancing a green economy is no longer a choice but a strategic necessity,” said Chandrajit Banerjee, director general CII.
GFI could support India’s green transition across renewable energy, clean mobility, green buildings and industrial decarbonisation, CII said. It could be structured as an intermediary and seeded by multilateral development banks, sovereign wealth funds and philanthropies, entailing no direct fiscal outlay from the government.
The institution could be domiciled in GIFT City in Gandhinagar, Gujarat to leverage regulatory flexibility and attract foreign capital. It could offer concessional loans, equity support, credit guarantees and securitisation of small-scale green assets to reduce project financing costs, it said.Another fund that CII has suggested is the Green Tech Expo Fund to help globalise India’s green tech innovations.The fund could support participation of green technology companies in global sustainability and technology expos, facilitating collaborations with global investors, buyers and technology partners.
CII has also suggested mandating recycling and urban-mining targets for lithium batteries and electronics with strict certification to curb unprocessed scrap exports.
Fiscal incentives and fast-track clearances could be facilitated to boost domestic refining capacity and strategic stockpiling of recovered critical minerals.
Policy support for the development of 15 circular economy parks over the next three years, expanding to 45 in five years, focusing on key waste streams. A national programme could be launched to establish large-scale multi-material recycling parks near major urban centres, it said.
CII also recommended establishing a unified Environmental and Climate Clearance Authority (ECCA) with digital integration across central and state agencies, supported by risk-based fast-track approvals for green projects.