The government of India aims to dramatically increase the amount of installed renewable energy and is currently focused on arranging and facilitating the needed capital investment to achieve targets. In India there are fundamental challenges for renewable energy developers in the financial marketplace such as asset-liability mismatch, high interest rates and sector limits. Green Bonds are standard, fixed-income financial instruments (bonds) where the proceeds are exclusively utilized for financing climate change mitigation or adaptation related projects or programs.This report provides information on the use of Green Bonds as a key financial instrument to provide Indian renewable energy project developers access to scalable, long-term, low-cost debt capital from institutional investors. This report was prepared through the Partnership to Advance Clean Energy-Deployment (PACE-D) Technical Assistant (TA) Program which is funded by USAID.
Included in the report is information on the need for renewable energy investment in India, the benefits and use of Green Bonds, the global market trends of Green Bonds, the issuance of Green Bonds in India and recommendations for improving the flow of Green Bonds to India.