Financing India’s energy transition: a guide on green bonds for renewable energy and electric transport

India is undergoing a major energy transition. However, constraints on access to capital — both in terms of adequacy and affordability — are impeding the pace and efficiency of this transition. This report published in collaboration with the Climate Bonds Initiative focuses on the potential of green bonds as an effective instrument to finance India’s switch from fossil fuels to renewable resources. The bond market could complement traditional sources of debt – banks and non-bank financial institutions – through the refinancing of primary debt. Key regulatory and market developments could accelerate the development of India’s corporate bond markets, and facilitate capital raising through the bond route. Green bonds have the potential to be used as a tool to address the capital raising needs of both the private sector, as well as sub-sovereign government (in this case state governments), for the renewable energy (RE) and electric mobility sectors.