Green financing in post-pandemic India takes precedence as players like ReNew Power, Adani and SBI look to explore new opportunities
Ahmedabad, November 5: A new form of financing has taken over in the post-pandemic world. Green financing has become the ‘next big thing’, attracting the attention of investors across the globe. The temporary disruption of the economy has revamped its outlook as terms like sustainability become more prevalent.
Data from the Economic Survey 2019-20 revealed India to be the second-largest emerging green market. Transactions worth $10.3 billion were recorded in the first half of 2019 alone, highlighting the fast pace at which companies are taking to green investment. This is evident in the way heavyweights like Reliance, Tata, Adani, SBI, ReNew Energy, etc., are adopting green financing as part of their business practices. The ensuing paradigm shift is expected to open new opportunities worth $3.1 trillion to investors and companies alike.
Green financing is not new to India. Numerous green bonds and similar fund raising strategies have been employed by both companies and banks in the past. The historic importance of banks in India’s economic growth has, however, put the onus on them to increase their contributions towards the country’s sustainable growth. Dinesh Khara, Chairman, State Bank of India (SBI), said that the banking sector needs to accelerate green lending. Emphasizing the need to sensitize India’s financial sector to the importance and benefits of green finance, Khara pushed for a formal definition of green finance which would help design effective policy regulations for the green sectors.
Green bonds have become a firm favourite for entities looking to finance their renewable projects and garnered a lot of traction in the recent past. ReNew Power, Adani, SBI, IDBI, Axis Bank and many more players have already issued green bonds worth millions. Adani, for example, raised a whopping USD750 million to finance the construction of its renewables projects. With over 11GW in its pipeline, Adani is one of the leading renewables company in India. The company has already overhauled its set target of 25GW renewables capacity this year even as it aims to become the world’s largest renewables company by 2030.
SBI was also one the many Indian banks that offered green bonds. It listed green bonds worth $100 million on India INX’s Global Securities Market Green Platform in April this year, having already listed its maiden green bond issuance of $650 million on the same platform earlier. Green bonds issued by financial institutions provide a valuable addition to the ones issued by companies like Adani. Loans are another way SBI is approaching the subject of green finance. The lender has already adopted new policies that will ensure borrowers are keeping up with the latest ESG practices. For example, loans exceeding Rs.50 crores would be issued to a borrower only after an evaluation on the basis of various ESG parameters.
Although the sudden thrust towards green financing is a huge positive, it is not without its own challenges. Studies show that while assets under ESG funds have grown by 27 per cent in Q1 2020, a massive funding gap still exists. Bridging this gap will be paramount to unlocking new avenues for growth. What remains to be seen is if stakeholders like Adani and SBI are willing to go all out and accelerate India’s transition to a truly green economy.
30 thoughts on “Adani, SBI among trendsetters as green financing picks up the pace in post-pandemic India”
183416 602034Hello! I could have sworn Ive been to this weblog before but soon after browsing via some of the post I realized its new to me. Anyways, Im undoubtedly pleased I discovered it and Ill be book-marking and checking back regularly! 267584
575475 47483Hi. Cool post. Theres a difficulty with the web site in chrome, and you might want to check this The browser is the marketplace chief and a big component of other folks will miss your superb writing due to this difficulty. I like your Post and I am recommend it for a Website Award. 345293
607565 79502How will be the new year going? I hope to read more fascinating posts like last year 927639
162327 17296you could have a great weblog here! would you wish to make some invite posts on my weblog? 952297
883276 752452As I website owner I believe the articles here is really amazing , thankyou for your efforts. 537428
34366 540143Would love to constantly get updated wonderful internet weblog ! . 738637
389252 725928I believe other internet site proprietors ought to take this website as an model, quite clean and superb user genial style . 688776
185230 103909Thank you for your extremely great information and feedback from you. san jose car dealers 458678
565713 660197Glad to be one of a lot of visitors on this awing website : D. 843126
234639 95026Thank her so a lot! This line is move before dovetail crazy, altarpiece rather act like habitual the economizing – what entrepreneur groovy night until deal with starting a trade. 93343
575297 504379I genuinely treasure your function , Wonderful post. 547527
462221 484206You may be websites successful individuals, it comes effortlessly, therefore you also earn you see, the jealousy of all of the ones lots of journeymen surrounding you could have challenges within this challenge. motor movers 437202
670037 782556That is some inspirational stuff. Never knew that opinions could be this varied. Be confident to maintain writing. 66979
Good day! This is kind of off topic but I need some advice from an established blog. Is it very hard to set up your own blog? I’m not very techincal but I can figure things out pretty quick. I’m thinking about setting up my own but I’m not sure where to begin. Do you have any ideas or suggestions? With thanks
It is in reality a nice and useful piece of info. I am satisfied that you simply shared this helpful information with us. Please stay us informed like this. Thanks for sharing.
I always was interested in this subject and still am, regards for putting up.
Thanks for the sensible critique. Me & my neighbor were just preparing to do a little research about this. We got a grab a book from our area library but I think I learned more clear from this post. I’m very glad to see such fantastic info being shared freely out there.
714058 824035Oh my goodness! an amazing article dude. Thanks a ton Nonetheless I will likely be experiencing dilemma with ur rss . Do not know why Not able to join it. Can there be every person acquiring identical rss problem? Anybody who knows kindly respond. Thnkx 643506
excellent points altogether, you just gained a brand new reader. What would you suggest in regards to your post that you made a few days ago? Any positive?
642138 179489Hey! Wonderful post! Please do tell us when we can see a follow up! 544051
817701 850052But wanna admit that this really is quite useful , Thanks for taking your time to write this. 92756
870368 568163Awesome write-up , Im going to spend far more time researching this subject 753793
I just could not depart your website before suggesting that I really loved the standard information an individual provide on your visitors? Is gonna be again ceaselessly in order to inspect new posts
806348 852647Some genuinely good and utilitarian information on this web website , likewise I feel the layout has amazing features. 516386
Thanks for sharing excellent informations. Your website is so cool. I am impressed by the details that you’ve on this website. It reveals how nicely you perceive this subject. Bookmarked this web page, will come back for extra articles. You, my pal, ROCK! I found simply the info I already searched everywhere and simply couldn’t come across. What an ideal site.
I like this website very much, Its a rattling nice place to read and obtain information. “Words are like leaves and where they most abound, Much fruit of sense beneath is rarely found.” by Alexander Pope.
I?¦ve been exploring for a bit for any high quality articles or weblog posts on this kind of space . Exploring in Yahoo I finally stumbled upon this web site. Reading this info So i?¦m satisfied to show that I’ve a very just right uncanny feeling I came upon exactly what I needed. I so much certainly will make sure to don?¦t put out of your mind this site and give it a glance on a relentless basis.
The next time I learn a weblog, I hope that it doesnt disappoint me as much as this one. I imply, I do know it was my option to learn, but I truly thought youd have something interesting to say. All I hear is a bunch of whining about something that you could possibly repair when you werent too busy in search of attention.
Hi, i believe that i noticed you visited my weblog thus i came to “return the favor”.I’m attempting to find things to enhance my web site!I suppose its adequate to make use of some of your ideas!!
Magnificent web site. Lots of useful info here. I am sending it to a few pals ans also sharing in delicious. And naturally, thank you in your effort!