ENA Sectors 2024-04-18 17:51:50 <p><span style="font-size:14px"><strong>Gandhinagar, Apr 18 (KNN)</strong> The International Financial Services Centres Authority (IFSCA) has established a standing committee to develop a framework for launching climate finance products, as part of efforts to transform Gujarat International Finance Tec-City (GIFT City) into a climate finance hub. </span></p> <p><span style="font-size:14px"> Sustainable finance is going to be our biggest agenda. It is a much bigger and challenging agenda, said K. Rajaraman, Chairman of the IFSCA, the unified regulator for international financial services in India.</span></p> <p><span style="font-size:14px">The committee is tasked with submitting a report to the government by the end of May 2024 on transitioning GIFT City into a climate finance centre. </span></p> <p><span style="font-size:14px">Potential products under consideration include climate-focused alternative investment funds, transition bonds, and transition insurance.</span></p> <p><span style="font-size:14px"> We will also try to see how we can launch climate finance products from GIFT City, Rajaraman stated, reported BL.</span></p> <p><span style="font-size:14px">The push aligns with Prime Minister Narendra Modi's vision expressed last July when inaugurating India's first international bullion exchange at GIFT City, where he hoped the project would evolve into a hub for climate finance.</span></p> <p><span style="font-size:14px">Progress is already underway, with banks in GIFT City required to allocate 5 per cent of their lending to green and sustainable credit. </span></p> <p><span style="font-size:14px">So far, approximately USD 700 million in green and sustainable loans have been issued out of the USD 60 billion in outstanding loans.</span></p> <p><span style="font-size:14px">The bond market has also seen traction, with USD 14 billion out of the USD 55.5 billion in bonds raised from GIFT City being classified as green, social, sustainable, or sustainability-linked bonds.</span></p> <p><span style="font-size:14px"> There are many fund managers who are in the process of launching climate funds. We will be supporting and deepening this ecosystem here, Rajaraman added, stating that IFSCA will collaborate with insurance companies to facilitate climate insurance products.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 37466 https://knnindia.co.in/news/newsdetails/sectors/ifsca-to-develop-framework-to-make-gift-city-climate-finance-hub 2024-04-18 17:51:50 knnindia.co.in