G20 Summit: India seeks new financing instruments to steer Sustainable Development Goals

Installation of 500 GW RE generation capacity, in pursuit of SDGs 7 and 13, would require at least ~USD 200 billion. The exposure of Indian banks and NBFCs to the power sector, as of April 2020, stood at USD 160 billion. Considering that conventional sources may face headroom challenges, and even though innovative financial instruments such as InvITs and thematic bonds exist, more will be necessary to mobilise finance for the rapid deployment of RE.

So far, there is only one RE InvIT and no issuance of transition bonds in India. What additional measures are needed to trigger the roll-out and uptake of new financial instruments at scale?