India
In India, Climate Policy Initiative (CPI) develops innovative finance and policy solutions that support credible, equitable green growth and transition plans. Our work helps ensure that the Government of India, Development Finance Institutions, the private sector, and the overall Indian economy reach ambitious net-zero and sustainability goals. This work includes green finance, sustainable finance, renewable energy, and just energy transition.
Our work focuses on three thematic areas: enabling capital through managing funds and creating blended finance and risk management frameworks; promoting green and sustainable finance initiatives through monitoring finance flows and evaluating environmental impacts; and enabling a just transition through transforming electricity systems, reducing emissions, and creating a fair framework.
Among other research, analysis, and financial innovation efforts, we manage: the India window of the Global Innovation Lab for Climate Finance, an incubator for innovative climate finance instruments; the India Clean Energy Finance initiative, a program to mobilize debt financing for distributed solar energy; the India Pure Finance Facility, an initiative for promoting productive applications of Renewable Energy; and the India Center for Sustainable Finance, a knowledge and networking hub designed to accelerate India’s financial sector towards a more sustainable future.
Our expertise includes renewable energy, climate finance, sustainable transportation, industrial decarbonization, just transition, and greening the financial sector. Vivek Sen leads the team.
Featured work
Publication
Just Transition to Zero-Emission Trucking in India
The “Just Transition to Zero-Emission Trucking in India” report explores the challenges and opportunities of shifting to battery-electric trucks.
Publication
Carbon Rating Framework
The Carbon Rating Framework is envisioned as a tool to facilitate transition finance by providing a standardized method to evaluate and compare the carbon intensity of companies. It could serve as a valuable input for financial institutions, helping them to channel capital more effectively towards projects that contribute to the global climate goals. The paper highlights areas for future research, including the potential expansion of the framework to include Scope 3 emissions and other environmental factors, as well as how credit rating agencies and banks might adopt and adapt the framework.
Publication
Financing Adaptation in India
India faces heightened vulnerability to climate change repercussions, given its diverse geography and socio-economic conditions. This report assesses India’s adaptation approach, scrutinizes the policy landscape, evaluates state-level investment needs, and explores avenues to bridge funding gaps through public and private finance.
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Latest work
Publication
A Roadmap for Green and Transition Finance in India
The green transition has become crucial for global economies, with governments, regulators, and the private sector implementing strategies to reduce emissions and foster green opportunities. However, the financing landscape is skewed toward mitigation sectors like renewable energy and transport, leaving hard-to-abate sectors underfunded despite their substantial carbon-removal potential.
Blog
Just Energy Transition: Economic Implications for Jharkhand
As we transition from fossil fuels to cleaner energy, India faces economic challenges, particularly in mineral-rich states. Jharkhand, for instance, could lose billions annually, affecting state revenues, livelihoods, and communities.
Publication
Discussion Paper: Financing Industrial Decarbonization - Challenges and Solutions for India’s Iron and Steel Sector
This research underscores the need for increased global finance and proposes policy interventions to promote climate-aligned investment, particularly in high-emission sectors like iron and steel.
Blog
Transforming India's Climate Finance through Sector-Specific Financial Institutions
India’s pursuit of a sustainable, low-carbon future amidst rapid population growth and economic expansion requires significant climate finance. To achieve ambitious targets, including 50% renewable energy by 2030 and net zero emissions by 2070, innovative financial solutions are imperative.