CII Proposes Green Finance Institution and Tech Expo Fund for Budget
The Confederation of Indian Industry (CII) has proposed establishing a Green Finance Institution (GFI) in the upcoming Union Budget for FY27 to mobilize large-scale, low-cost capital for India’s green transition.
Key Recommendations
- Establish Green Finance Institution in GIFT City
- Create Green Tech Expo Fund for global exposure
- Develop Circular Economy Parks for waste management
- Mandate recycling targets for lithium batteries and electronics
Addressing the Green Finance Gap
India requires nearly $10 trillion in green investments to achieve its 2070 net-zero target, with $1 trillion needed over the next 10-15 years. Current finance flows cover only 25% of this requirement, highlighting critical funding gaps.
Finance Minister Nirmala Sitharaman will present the budget on February 1, with energy transition expected to be a key focus area.
“This could be structured as an intermediary and seeded by multilateral development banks, sovereign wealth funds, and philanthropies entailing no direct fiscal outlay from the government,” CII said.
Strategic Necessity for Growth
Chandrajit Banerjee, CII Director General, emphasized that “advancing a green economy is no longer a choice but a strategic necessity” for India’s growth, competitiveness, and global standing.
He stressed the need for a holistic approach prioritizing transition finance, circularity, and robust ESG reporting alongside renewables and green mobility.
Green Tech Globalization
The proposed Green Tech Expo Fund would support Indian enterprises in global sustainability expos, facilitating collaborations with international investors, buyers, and technology partners.
A Deloitte report projects $1.5 trillion investment requirement by 2030 across renewable energy, biofuels, decarbonization, and sustainable infrastructure.
Circular Economy Push
CII recommends mandatory recycling and urban mining targets for lithium batteries and electronics with strict certification to reduce unprocessed scrap exports.
“Policy should support the development of 15 Circular Economy Parks over the next 3 years, expanding to 45 in 5 years,” the CII statement said.
The government has already prepared a ₹1,500 crore incentive scheme for critical mineral recycling, with significant industry registration on the application portal.
