Global Capital's Role in India's Green Energy Transition Discussed at Sustainability Conclave

Insights from the Sustainability Conclave

During the Sustainability Conclave, Shalabh Tandon, who oversees Operations & Climate Change for South Asia at the International Finance Corporation (IFC), emphasized that the fundamental principles of finance remain unchanged when it comes to attracting global investments for India's green energy initiatives. He highlighted that the risk-return dynamic is crucial, stating that many international investors are willing to embrace the risks associated with investing in India.

However, Tandon pointed out the significant currency risks that have emerged over the past 18 months, which have altered global investors' perceptions. He noted that those looking to invest in India as debt financiers are now seeking hedging or swap options. For equity investors, the currency risk is even more critical, prompting them to evaluate their overall investment portfolios to determine viability. The World Bank Group is collaborating with the Indian government and regulatory bodies to address these currency challenges.

On the topic of global capital influx for India's green transition, Tandon confirmed that investments are indeed flowing in, particularly in sectors like renewable energy, including solar and wind. However, he cautioned that high-risk climate projects, such as hydrogen initiatives, require substantial efforts to mitigate risks, which is where the IFC and World Bank's involvement becomes essential.

The remarks were made at the Adani Presents Sustainability Conclave 2026, co-sponsored by MAHATRANSCO, under the theme 'India 2035: A Self-Reliant Nation'. This event gathered policymakers, industry leaders, and sustainability experts to deliberate on India's clean energy transition, climate commitments, and the pathway to becoming a self-sufficient and sustainable nation by 2035. The discussions aimed to shift from mere policy declarations to actionable implementations, covering vital topics such as renewable energy, green financing, technological advancements, and public engagement in achieving India's long-term sustainability objectives.