CII urges green investments to achieve climate action goals

The Confederation of Indian Industry (CII), a leading industry association working with government and businesses to shape policies and drive economic growth, has urged the government to set up a dedicated green finance institution and a green tech expo fund to strengthen India’s transition to a sustainable, low-carbon economy.

CII said advancing a green economy, an economic system focused on low-carbon, resource-efficient and environmentally sustainable growth has become essential as India targets a USD 5 trillion economic milestone while aligning with global sustainability standards.

In its pre-Budget recommendations, the chamber proposed the establishment of a Green Finance Institution (GFI), a specialised financial body designed to mobilise long-term, low-cost capital for green sectors such as renewable energy, clean mobility, green buildings and industrial decarbonisation. CII suggested that the GFI be housed in GIFT City, India’s international financial hub in Gujarat known for its regulatory flexibility and ability to attract global investors.

According to CII, the GFI could offer concessional loans, equity support, credit guarantees and securitisation of small-scale green assets to lower financing costs and bridge the country’s significant green funding gap.

The industry body also recommended creating a green tech expo fund to support Indian enterprises in showcasing clean technology innovations at global sustainability platforms, fostering international partnerships and technology collaborations.

CII highlighted that these efforts closely align with several global sustainability commitments. The initiatives directly support SDG 13 (Climate Action) by enabling India’s low-carbon transition, SDG 7 (Affordable and Clean Energy) through renewable energy financing, SDG 9 (Industry, Innovation and Infrastructure) by promoting green industrial growth, SDG 12 (Responsible Consumption and Production) through recycling and urban mining, and SDG 17 (Partnerships for the Goals) via global collaborations in green technology.

India will need an estimated USD 1 trillion in green investments over the next 10–15 years and nearly USD 10 trillion by 2070 to achieve its net-zero emissions target. However, CII noted that current green finance flows cover only about 25 per cent of this requirement.

The chamber also called for mandatory recycling and urban-mining targets for lithium batteries and electronic waste, supported by strict certification to curb unprocessed scrap exports. It added that fiscal incentives and fast-track clearances would help expand domestic refining capacity and build strategic reserves of recovered critical minerals.