International Financial Services Centres Authority (IFSCA) has undertaken numerous regulatory initiatives for development of financial instruments at IFSC to facilitate capital flows towards climate action in India and other developing countries.
Transition finance instruments such as transition bonds, transition loans etc. have now emerged as an alternative to address the financing gap needed to achieve Paris agreement goals and which is inclusive of sectors and geographies across industries.
Taking into consideration the critical need for transition finance, the development of such financing instruments being at a nascent stage, and lack of globally recognized framework as in the case of green/sustainable labelled debt securities, IFSCA has formed an expert committee on Transition Finance consisting of representation from industry, standard setters, consultants, think tanks etc. to recommend a regulatory framework for transition finance instruments and measures to promote transition finance through GIFT IFSC.
The constitution of the committee and Terms of Reference (ToR) can be accessed through https://ifsca.gov.in/IFSCACommittees.
