Building Bridges and Partnerships across India
Enabling Green Finance and Net-Zero by 2070
India needs approximately USD 2.5 trillion by 2030, or roughly USD 300 billion per year, in green finance to meet its climate commitments under the Paris Agreement. More than USD 10 trillion is needed to achieve net-zero emissions by 2070. However, the current tracked green finance falls woefully short of what is needed to meet India’s climate goals.
SIFF is a virtuous not-for-profit partnership established in 2017 with catalytic support from the United Nations Environment Programme (UNEP) and World Agroforestry Centre (ICRAF) to ‘leverage private finance for public good’ in sectors such as sustainable agriculture, biodiversity, freshwater, fisheries, renewables, and forest protection.
Instead of a conventional ‘concentrated risk’ approach where all the risk is concentrated at the hands of the borrower, SIFF mainstreams a unique ‘distributed’ risk model that has a host of significant actors assuming responsibility for segments of the risk along the value chain making the projects ‘investable’. This enables financing flows into sectors that typically do not qualify for loans due to an inability to provide returns within short repayment periods and high-interest rates.