At the three day conference held in Mahabalipuram, G20 working group discussed sustainable finance for facilitating flow of private capital to fund green carbon technology
In order to lessen the effects of climate change, the G-20 working group on sustainable finance has argued for improving the flow of private capital to fund investments in green carbon technologies through policies and financial instruments, an official said on Wednesday. It also highlighted the necessity of establishing an encouraging environment for startups to develop novel technology to lower carbon emissions. The conclusions of the G-20 Sustainable Finance Working Group's three-day conference, held in Mahabalipuram, will be discussed at the G-20 Finance Ministers and Central Bank Governors conference, which will take place on July 17–18 in Gandhinagar.
Geetu Joshi, an advisor in the Department of Economic Affairs, gave a press conference following the meeting and stated that the sustainable finance working group "finalised key deliverables" for the year under India's G-20 Presidency.
"The finalised version of G-20 Sustainable finance deliverables under the Indian presidency consists of voluntary recommendations that have been finalised through consensus and collaborative approach. We have broadly made recommendations for a list of options to expand de-risking facilities, as well as policies and financial instruments to support private capital for investment in green and low carbon technologies," Joshi said.
The analytical framework for sustainable development goal (SDG)-aligned finance is one of the suggestions that will support the G-20 Sustainable finance roadmap, which also includes advice on social impact investing and data and reporting connected to the environment. According to Chandni Raina, an adviser in the Department of Economic Affairs, early-stage technologies, which are primarily created by startups, need to be financed if they are to be used to lessen the effects of climate change.
"This is the time when (early stage climate) technology needs the resource at a concessional rate, at a rate that enables it to grow to the scale that we need. The discussion was on how we do that because the normal instruments of mobilizing (funds) will not work," she said.
Raina noted that startups are home to early-stage climate technology and that enabling frameworks must be developed in order to scale up startup operations and market those products.