The Climate Finance Leadership Initiative, India (CFLI) has announced climate finance solutions with the potential to mobilize nearly $6.5 billion to support the country’s low-carbon, climate-resilient development.

The announcement was made at the UN Climate Change Conference of Parties (COP28) in Dubai.

These solutions are expected to help mobilize private capital towards the $10.1 trillion needed to meet India’s net-zero target by 2070.

CFLI’s climate solutions align with the Indian government’s climate priorities across e-mobility, circular economy, green hydrogen, and renewable sectors, which can be scaled across India and exported globally.

“The culmination of this public-private partnership will help India accelerate its clean energy transition and offers the way forward for India and others to reach net-zero targets while also improving public health, creating jobs, and building a stronger and more resilient economy,” said Michael R. Bloomberg, UN Special Envoy on Climate Ambition and Solutions and Chair, CFLI.

Some of the solutions announced by CFLI India members are:

• Macquarie Group launched a blended finance platform offering specialized counterparty financing options to drive electric vehicle adoption amongst Indian fleet operators. The platform has leveraged a $200 million equity commitment from the United Nation’s Green Climate Fund.
• Tata Motors announced partnerships with the State Bank of India, HSBC India, HDFC, Axis Bank, and Tata Capital to offer attractive loans and leasing solutions for small commercial and retail EVs, aiming for a 10-12% EV market penetration by 2030.
• Tata Group and Larsen & Toubro are exploring opportunities to work with the World Bank to improve municipal finance in Indian cities.
• Kotak Mahindra Bank will raise up to $100 million of commercial capital to develop municipal infrastructure services across wastewater, solid waste management, and other green infrastructure.

“Unlocking large financial commitments for climate projects in emerging markets calls for close collaboration across the public and private sector,” said Shemara Wikramanayake, Managing Director and Chief Executive Officer at Macquarie Group and Co-Chair, CFLI India.

CFLI was launched in 2021 by India’s Minister of Finance, Nirmala Sitharaman, and the then UK Chancellor and current Prime Minister, Rishi Sunak, to mobilize private capital for India’s sustainable infrastructure.