Promoting the regulatory sandbox for green fintech: Panel

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October 5

A panel appointed by the International Financial Services Center Authority (IFSCA) has recommended ways to promote a regulatory sandbox for green fintech in addition to developing a voluntary carbon market and framework for transition bonds, among other measures for a sustainable financial ecosystem. The recommendations covered various aspects of sustainable finance, including products, policies and regulations, capacity building and awareness initiatives related to green and sustainable finance. The Expert Committee on Sustainable Finance also recommended the establishment of risk reduction mechanisms and the creation of a global climate alliance. The recommendations, submitted to the IFSCA on October 3, also suggested innovative instruments such as catastrophe bonds, municipal bonds, green securitization and blended finance, among others. To improve capital flows, he has endorsed aggregation facilities, impact funds, green stocks, and more. Chaired by CK Mishra, former Secretary to the Government of India, Ministry of Environment, Forests and Climate Change, the committee was composed of experts from national and international institutions in the field of sustainable finance. Mishra said: “The unique combination of committee members and the broad canvas on which the recommendations are based will certainly provide the right start for IFSCA’s efforts and project it as the hub of sustainable finance.” The committee recognized the importance of the micro, small and medium enterprise (MSME) sector in the economic development of the country and offered a dedicated platform for sustainable lending. “The expert panel report would go a long way in shaping GIFT IFSC’s strategies to become an international green finance hub, while channeling global capital to meet India’s net zero commitments,” Injeti Srinivas said. , President of the IFSCA.

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