Investor group launches new investment vehicles for clean energy in India
October 27, 2017
New Delhi, 26 October 2017 –
The India Innovation Lab for Green Finance – a group of investors and government representatives that accelerates green finance instruments to meet India’s green infrastructure goals – launched two new instruments that could help catalyze millions of dollars for clean energy in India.
The launch is in partnership with the India Lab’s public and private Lab Members, including the Indian Ministry of New and Renewable Energy, the Ministry of Finance, the Indian Renewable Energy Development Agency (IREDA), the Asian Development Bank, ReNew Power, Cyril Armachand Mangladas, HSBC India, KfW Bank, YES Bank, the World Bank, and the development agencies of the French, UK, and US governments, among others.
Lab members and other experts have spent the last year vetting and developing the new instruments, to ensure they meet stringent criteria and can help meet India’s green infrastructure goals. The new instruments are:
- Solar Investment Trusts (SEITs): An instrument similar to a mutual fund, which can help small-scale rooftop solar developers in India raise capital at a lower cost of financing. Proposed by Cleanmax Solar, SEITs can mobilize capital worth USD 1 billion within the next five years in key Indian markets.
- Sustainable Energy Bonds (SEBs): Debt instruments that aim to drive impact investment to sustainable energy in India by offering debt exposure, sufficient returns, and standardized impact measures for impact investors. Proposed by cKers Finance, SEBs will create credible benchmarks for impact evaluation, lower transaction costs, and de-risk small-scale lending.
The India Lab is one of four programs of a larger Lab network. Founded in 2014, the Lab has helped develop and launch 25 innovative sustainable investment instruments globally that have mobilize USD 977 million to date.
More information on each instrument, including fact sheets and analytical reports, are available at www.ClimateFinanceLab.org.
The Lab is also seeking submissions for sustainable finance instruments and businesses into its 2017-2018 cycle. Interested parties can visit www.ClimateFinanceLab.org to learn more and submit proposals.
QUOTES FROM FUNDERS AND LAB MEMBERS
Mr. Krishan Dhawan, CEO, Shakti Sustainable Energy Foundation – “Accelerating more finance to sustainable energy and other green sectors in India is essential for meeting the country’s sustainable development goals. The instruments launched by the India Innovation Lab for Green Finance show considerable potential and will help mobilize the financial resources needed to meet our clean energy targets.”
Santosh Janakiram, Partner, Cyril Armachand Mangladas – “Cyril Armachand Mangladas is proud to be a part of the India Lab, and we’re excited to see this new class of innovative green finance instruments take off and attract needed investment for green infrastructure in India.”
Thibaut Wolff, Investment Officer, PROPARCO – “India is in a crucial moment, where the potential of clean energy and green infrastructure is immense, but finance is currently lacking. We applaud the India Lab and this new class of promising transformative green finance instruments, which could catalyze millions of dollars for green growth in India.”
Hemant Bhatnagar, Senior Sector Speacialist, KfW Bank – “The Lab is a great platform to promote innovative financing instruments for sustainable development in India.”
Gireesh Shrimali, Director, Climate Policy Initiative India and India Lab Secretariat – “The green finance instruments launched by the India Lab aim to tackle some of the most difficult financing challenges for clean energy and sustainable urbanization in India. Our analysis shows that they’re ready for this challenge, and we look forward to seeing them in action.”
The Lab identifies, develops, and launches sustainable finance instruments that can drive billions to a low-carbon economy. It is comprised of several regional and sectoral programs: the Global Innovation Lab for Climate Finance, the Brasil Lab for Green Finance, the India Innovation Lab for Green Finance, and the Fire Awards for Sustainable Finance. The Lab’s programs have been funded by Bloomberg Philanthropies, the David and Lucile Packard Foundation, the German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB), the Netherlands Ministry for Foreign Affairs, Oak Foundation, the Rockefeller Foundation, Shakti Sustainable Energy Foundation, the UK Department for Business, Energy & Industrial Strategy, and the U.S. Department of State. Climate Policy Initiative serves as Secretariat.
Angel Jacob – India
Maggie Young – United States