In a crucial announcement, Finance Minister Nirmala Sitharaman revealed that India is facing a substantial $10.1 trillion funding gap to achieve its net-zero commitment by 2070. Speaking at the ‘An Aspiration of Modern India’ session in GIFT City, Sitharaman outlined a visionary plan to address this financial shortfall.
The Finance Minister urged the International Financial Services Centre (IFSC) to establish a dedicated platform facilitating the trading of green credits. This initiative aims to provide companies in India with direct access to global funds by allowing them to list on IFSC exchanges.
‘The much-awaited direct listing of stock in Gift IFSC was announced earlier. We are going through the process in a systematic manner, and I’m confident that it will happen at the earliest. With that, Indian companies should be able to access global funds easily being listed in India,’ Sitharaman stated.
Last year, the government had made a landmark decision to permit both listed and unlisted companies to directly list themselves on the IFSC exchanges at GIFT City. Previously, Indian companies could access foreign equity markets only through depository receipts or by listing debt securities on foreign markets.
Highlighting the urgency of the situation, Sitharaman emphasized the need for a platform at IFSC where green credits, earned through environmentally friendly practices such as afforestation, renewable energy, and solid waste management, can be traded. She specifically mentioned the establishment of Miyawaki forests across the country as one of the initiatives contributing to green certification.
‘I would think the authorities here should work on getting a platform ready so that green credits can be sold by people who are planting trees. This place should be the hub for getting those credits bought and sold,’ Sitharaman asserted.
The Finance Minister’s proposal aligns with India’s commitment to achieving net-zero emissions by 2070 and emphasizes the role of GIFT City in bridging the funding gap required for this ambitious goal. The establishment of a dedicated platform for trading green credits is seen as a step towards encouraging sustainable practices and attracting global investments in environmentally conscious initiatives.
