First India International Climate and Energy Transition Finance Forum Concludes Successfully in London.
The first-ever India International Climate and Energy Transition Finance Forum (IICF 2024) concluded on a high note in London, UK, from 25-27 September 2024. This landmark event brought together over 30 Indian companies from a wide range of sectors, including Renewable Energy, Green Hydrogen, Biofuels, Water Management, Waste Management, Sustainable Agriculture, Carbon Finance, Green Data Centres, and Commodity Trading Platforms. Over the course of three days, these companies engaged in transformative discussions with global investors to explore opportunities for mobilising climate and energy transition finance for India.
A Platform for Global Dialogue
IICF 2024 served as a unique platform where Indian businesses and global investors came together to discuss how best to channel large-scale institutional capital into India’s rapidly growing climate and energy transition sectors. The event aimed to unlock financing opportunities that could accelerate India’s journey towards achieving its climate goals while also capitalising on the significant economic opportunities that arise from this transition.
The forum featured several high-profile discussions and engagements, with the highlight being the Global Investors' Strategic Dialogue, held at the London Stock Exchange on Thursday, 26th September 2024. This session brought together a stellar line-up of keynote speakers, including:
- Mr. Tarun Kapoor, Advisor to the Prime Minister’s Office, Government of India
- Mr. Charlie Walker, Deputy CEO, London Stock Exchange
- Mr. U.K. Sinha, Former Chairperson of the Securities and Exchange Board of India (SEBI)
The dialogue saw active participation from leading global investors and financial institutions, such as JPMorgan Chase, MetLife, Norfund, Standard Chartered, The Scottish National Investment Bank, MOBILIST Global, and the City of London Corporation. The discussions revolved around the importance of climate finance, India's investment potential, and the mechanisms available to streamline capital flow into the country’s climate and energy transition sectors.
Top 5 Takeaways from IICF 2024
Here are the five key takeaways from this groundbreaking forum that signal a new era in climate finance collaboration between India and the global investor community:
1. Institutional Capital is Key to Accelerating Decarbonisation
One of the most significant conclusions from the discussions was the critical role of institutional capital in driving global decarbonisation efforts. With climate change presenting a massive challenge, it’s clear that traditional financing mechanisms alone are insufficient to meet the scale of investment required. Institutional investors—such as pension funds, insurance companies, and sovereign wealth funds—hold vast pools of capital that can be mobilised for climate-friendly projects.
India, as one of the world’s fastest-growing economies, offers an attractive market for such investments. The feeder fund model, which was a key point of discussion at the forum, provides a viable structure for institutional investors to channel funds into high-impact climate projects in India.
2. India’s Climate Finance Potential is Enormous
India represents a significant investment opportunity for global capital, particularly in the climate and energy transition space. With a projected USD 5 trillion investment potential across renewable energy, green hydrogen, sustainable agriculture, and other key sectors, the country stands out as a major player in the global effort to combat climate change.
This potential is driven by India’s commitment to achieving its climate targets, including generating 500 GW of renewable energy capacity by 2030, transitioning to cleaner energy sources, and implementing sustainable practices across industries. Investors at IICF 2024 recognised India’s unique position and the massive opportunities it offers for climate finance.
3. The Indian Government is Committed to Facilitating Investments
A recurring theme at IICF 2024 was the Indian government’s dedication to creating a favourable environment for international investments. The government has implemented a range of policies and regulatory frameworks aimed at simplifying the investment process and reducing the risks associated with investing in India’s climate and energy sectors.
Mr. Tarun Kapoor, Advisor to the Prime Minister’s Office, reassured investors that India is taking proactive steps to streamline investment opportunities, including offering incentives, creating public-private partnerships, and addressing infrastructure bottlenecks. These efforts are intended to make it easier for global investors to deploy their capital in India, further accelerating the country’s transition to a low-carbon economy.
4. Infrastructure Investment Trusts (InvITs) Offer a Valuable Investment Vehicle
One of the most promising tools for mobilising global institutional capital into India is through Infrastructure Investment Trusts (InvITs). InvITs allow investors to pool their capital into income-generating infrastructure assets, offering a reliable return on investment while contributing to the country’s sustainable development goals.
At IICF 2024, InvITs were highlighted as an excellent vehicle for attracting long-term institutional investments into India’s operational assets, particularly in the renewable energy and energy transition sectors. By investing via the InvITs, global investors can gain exposure to India’s climate infrastructure while also contributing to the decarbonisation of the economy.
5. Global Feeder Funds Can Transform Investment for High-Growth Markets
The concept of global feeder funds emerged as one of the most transformative ideas discussed at the forum. Feeder funds are a type of investment fund that pools capital from investors and directs it towards a master fund that invests in specific markets or projects. In the context of climate finance, feeder funds listed on platforms like the London Stock Exchange offer a practical solution for channelling global capital into high-growth markets like India.
By providing a structured, transparent, and efficient mechanism for investment, feeder funds can help bridge the gap between global investors and India’s climate projects. This model has the potential to unlock significant amounts of capital and accelerate the country’s energy transition efforts.
A New Chapter for India’s Climate Finance Journey
The conclusion of IICF 2024 marks the beginning of a new chapter in India’s climate finance journey. The forum successfully engaged the global investor community, catalysing critical discussions on how to mobilise the finance needed to meet the country’s ambitious climate goals. The partnerships and dialogues initiated at the event are expected to pave the way for more robust collaborations between India and international investors, helping to unlock the vast investment potential that exists within the country’s climate and energy transition sectors.
As India moves forward, events like IICF 2024 will play a vital role in maintaining momentum and ensuring that the necessary capital flows into projects that will shape the country’s sustainable future. The path ahead is challenging, but with the support of global investors, India is well-positioned to lead the way in the global fight against climate change.
If you’re interested in learning more about how you can get involved in India’s climate finance journey or would like to explore opportunities with the CETF, reach out to us today. Together, we can build a sustainable and resilient future for the Global South and the world.