Developing a voluntary carbon market, a framework for transition bonds and creation of global alliances were some of the important recommendations made by a “committee of experts on sustainable finance” constituted by International Financial Services Centres Authority (IFSCA) at the GIFT City.
The main focus of the committee headed by CK Mishra, former secretary, Union Ministry of Environment, Forest and Climate Change, was to align the IFSC regulations with the international best practices.
It explored ways in which capital flows through IFSC can be enhanced and support development of innovative financial products in the area of green and sustainable finance.
Some important recommendations include developing a voluntary carbon market, framework for transition bonds, enabling de-risking mechanisms, promoting regulatory sandbox for green fintech and facilitating the creation of a global climate alliance among others, stated an official release here on Tuesday.
Considering the significance of the MSME sector in the economic development of the country, the committee also proposed setting up of a dedicated MSME platform for sustainable lending.
It also recommended to facilitate the use of innovative instruments such as catastrophe bonds, municipal bonds, green securitisation, blended finance among others, the release further said.