India Innovation Lab for Green Finance, a New Initiative Supported by Government and Business Leaders, Seeks Innovative Ways to Drive Finance to Cleaner Growth in India
Recently, with the endorsement of the Government of India’s Ministry of New and Renewable Energy, a first of its kind initiative has been launched to identify and develop innovative finance instruments that can unlock investment in building green infrastructure in India, in order to meet its sustainable development goals.
With India’s declared intent to meet 40% of its electricity demand from non-fossil fuel sources by 2030, there has never been a more important time to scale up finance for the green infrastructure that will support renewable energy and energy efficiency. Increasing private investment will be especially critical to achieving this target.The India Innovation Lab for Green Finance is a new platform that will draw on business and government leaders to identify, select, and help implement ideas for instruments that will mitigate risks and drive more investment for clean growth in India.
The India Innovation Lab for Green Finance will open a call for ideas on November 23rd; information on how to submit ideas will be available at www.greenfinancelab.in. The India Lab seeks ideas that provide concrete solutions to the unique financing challenges to investment in green infrastructure in India. These ideas should address investors’ needs, in order to unlock more private investment. Examples might be credit enhancement of renewable energy projects to attract institutional investors, or tools to reduce the cost of currency hedging to attract more foreign investment. The India Innovation Lab will apply the successes and lessons learned through its sister initiative, the Global Innovation Lab for Climate Finance, to India’s unique challenges and opportunities.
Ideas will be assessed based on their potential to unlock investment for green infrastructure in India, and to establish that they are actionable, catalytic, innovative, and replicable. Up to four winners will be announced in February, and will receive support and expert advice from Lab members to develop and implement the ideas over the course of the next year.
“The India Lab will bring together public and private players on a common platform with the objective of unlocking and channelizing private investment for green infrastructure sectors such as renewable energy and energy efficiency. We look forward to being engaged in the India Lab as a key stakeholder…” – from a Letter of Endorsement from Tarun Kapoor, Joint Secretary, Ministry of New and Renewable Energy
“The India Innovation Lab for Green Finance is a welcome and essential initiative for the country. The Lab aims to develop innovative solutions to financing renewable energy, energy efficiency, and sustainable urbanization infrastructure. We are pleased to host the Lab. We also thank the David and Lucile Packard Foundation and the Government of UK for co-investing in this initiative with us.” – Krishan Dhawan, CEO, Shakti Sustainable Energy Foundation (Host of the India Innovation Lab for Green Finance)
“India has strong renewable energy targets, but much more private investment is needed. There has never been a more important time for the India Innovation Lab for Green Finance, to innovate catalytic solutions to scale up finance for green infrastructure in India.” – Gireesh Shrimali, Director of Climate Policy Initiative, India (Secretariat for India Lab)
“The UK and India share world-class expertise in research and innovation. The India Innovation Lab for Green Finance is a great example of how the public and private sector can work together to tackle the barriers to low carbon investment and reduce our emissions. This is crucial because if sustainable economies are to flourish, we need green technology to become affordable for every citizen.” – Amber Rudd, Secretary of State, Energy and Climate Change, UK Government