Countries must prioritise domestic mechanisms such as carbon pricing, green taxes, and public private partnership: Panelists at CII Partnership Summit

Countries must prioritise domestic mechanisms such as carbon pricing, green taxes, and public private partnerships, said Ms Mikiko Tanaka, Director & Head, UN Economic and Social Commission for Asia Pacific (UNESCAP). She was speaking at the session on Funding Climate Action - The Way Forward at the 29th CII Partnership Summit, organised by the Confederation of Indian Industry (CII) in partnership with the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry in New Delhi today.

“At COP29 the pledge of USD 300 billion annually by 2035 was an important step from the previous USD 100 billion annual commitment, but it is evident that this amount is largely insufficient to bridge the large funding gap developing nations face,” she added.

Mr Shalabh Tandon, South Asia Regional Head of Operations & Climate Change, International Finance Corporation (IFC), India said, “We have put in place a very ambitious target internally to all our teams that 45% of every financing that we do should be in climate and half of that should be adaptation.”

Speaking at the session on Driving Sustainable Global Growth: Strategies for the Next Decade session, Mr Henrik Isakson, Director-Trade Policy, Confederation of Swedish Enterprise, Sweden said that though the Indian economy is doing quite well, FDI investments have remained inadequate. He added that in addition to promoting activities and offering incentives, having an open trade regime is pivotal in attracting investments as companies do not act in isolation but rather act in a commercial ecosystem.

Ms Edith Nordmann, Chairman, the Netherlands India Chamber of Commerce and Trade, Netherlands stated, “Economic success must be redefined not solely by growth metrics but by inclusivity, equity and sustainability.” She highlighted the significant trade relationship between India and the Netherlands and focused on the innovation-driven spirits of India and mentioned that the Netherlands with specialisation in AI, digital infrastructure, and smart logistics is a natural partner in scaling the solutions globally.

During the CII Partnership Summit 2024, sessions were organised on exploring sustainable growth strategies and ways forward for funding climate action. The sessions explored attracting private sector investment, which is crucial to filling the financing gap, innovative mechanisms such as green bonds, and blended finance can unlock such investments.

Mr Rajiv Memani, President Designate, Confederation of Indian Industry (CII) and Chairman and Chief Executive Officer, EY India said, “If we don’t address the issue of climate where India stands today, I think growth itself will be challenged. New technologies such as green hydrogen and carbon capture still need to be competitive with most of equity funding favouring solar, wind, and the EV projects.”

Mr Madhavkrishna Singhania, Chairman, CII Northern Region and Joint Managing Director & Chief Executive Officer, J K Cement Limited highlighted that growth should be comprehensive, focusing not only on economic expansion but also sustainability, inclusivity, and resilience.

2 December 2024

New Delhi