India among our top 3 markets for sustainable finance
Singapore's largest bank, DBS, considers India as one of its top three markets for sustainable finance. The bank's cumulative sustainable financing transactions across Asia, spanning 19 markets, amount to SGD 61 billion. India's contribution to this total is approximately SGD 1.1 billion, with expectations of further growth in the future. This development aligns with India's goal of generating 500 GW of non-fossil fuel energy by 2030, as it already has nearly 178.8 GW of installed renewable energy capacity. Yulanda Chung, Head of Sustainability of Institutional Banking Group at DBS Bank, stated that the bank had set a target of SGD 50 billion for sustainable financing by 2023, which has already been surpassed. Although there is no new target, DBS aims to expand its efforts beyond Singapore, and India is a promising market for sustainable finance. Singapore currently leads in this sector.
Sustainable financing encompasses loans for renewable energy projects, green buildings, and even transitioning coal-fired plants. India is among DBS's six core markets, and the bank sees significant opportunities for sustainable finance in the country, especially considering India's national goal of achieving net-zero carbon emissions by 2070. Yulanda Chung emphasised that financing volume and diversity will increase by 2025, encompassing not only conventional loans but also green and sustainability loans. SMEs are also an area of focus for DBS. Yulanda Chung highlighted the role of central banks and regulators in creating a supportive environment for financial institutions involved in sustainable financing, suggesting that regulators provide favourable conditions for such initiatives.
India's wind energy sector alone is projected to contribute 100 GW to the country's target of 500 GW of non-fossil fuel-based energy by 2030. Ajay Devaraj, Secretary General of the Indian Wind Power Association, stated that India's current wind energy installed capacity is 42.8 GW, with an additional 14 GW under construction. The remaining 43 GW of wind energy capacity will require a significant investment of over Rs 3.4 lakh crore by 2030.
As featured in The Times of India