The Confederation of Indian Industries (CII), an industry body, on Sunday called for holistic green transition through setting up of a dedicated finance institution and tech expo fund.
“As India strides forward on its path of green transition, it is imperative to have a holistic approach to decarbonisation where transition finance, circularity and a robust ESG reporting ecosystem are prioritised, in addition to the focus on renewables and green mobility,” Chandrajit Banerjee, Director General of CII said in pre-budget submission. The budget for Fiscal Year 2026-27 is likely to be presented on February 1, 2026.
On transition finance, India needs an estimated $1 trillion in green investments over the next 10-15 years, cumulatively reaching nearly $10 trillion by 2070, to achieve the goal of net zero emissions by 2070. However, current green finance flows cover only about 25 per cent of this need, highlighting significant gaps in long-term, low-cost capital availability.
Keeping this in mind, the industry body has suggested establishing a dedicated Green Finance Institution (GFI) to mobilize large-scale, low-cost capital for India’s green transition across renewable energy, clean mobility, green buildings, and industrial decarbonisation. This could be structured as an intermediary (not a balance-sheet lender) 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 the GIFT City 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,” a statement by CII said. Another suggestion is about setting up a ‘Green Tech Expo Fund’, to help globalise India’s green tech innovations.
“For instance, India’s clean-tech revolution, is spurring technological innovations that can help the country emerge as a global clean-tech powerhouse. The Fund could support participation of Indian enterprises engaged in producing green technology, in global sustainability and technology expos, facilitating collaborations with global investors, buyers, and technology partners,” the industry body said.
The chamber has further recommended mandatory 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,” it said.
According to the chamber, India transitions towards a greener future, initiatives must extend beyond EVs and renewable energy to include the ones promoting the critical elements of green financing, simplifying environmental regulations for industry to boost compliance, circularity and re-cycling, and making buildings more environment friendly.
“These are vital for not only building a resilient, innovative, and inclusive economy but also offer significant untapped opportunities for investors looking to capitalise on these transformative trends”, Banerjee concluded.
