India Transition Finance Program
The India Transition Finance Program (ITFP) will provide best practice data and analytics on aspects of transition finance, with focus on India. The program will play a leading role in defining aspects of transition finance such as climate financial risks and cost of capital.
Transition Finance is the provision and use of financial products and services to support counterparties, such as companies, sovereigns, and individuals, realise alignment with environmental and social sustainability (Caldecott, 2020).
The ITFP is an initiative to provide knowledge support to build an ecosystem that: (a) helps accelerate the shift in financial intermediation provided by banks and capital markets towards transition finance, (b) helps in making the financial system resilient to increased financial risks, and (c) enables a just transition to a low-carbon economy. Key activities will revolve around 3 pillars – (1) Research and Analysis, (2) Collaboration, and (3) Education and Training.
While the ITFP will focus on all areas of transition finance, in the near-term it is focusing on climate financial risks and the cost of capital, in synergy with the Environmental Stress Testing and Scenarios (ESTS) and the Energy Transition Risk and Cost of Capital (ETRC) projects, respectively. The initial projects are, therefore, focused on assessing climate transition risk for the power sector and on risk mitigation for at scale deployment of green technologies.
