Nirmala Sitharaman. File
| Photo Credit: The Hindu

Finance Minister Nirmala Sitharaman on January 11 said India has a $10.1 trillion funding gap to meet its net zero commitment and asked IFSC to set up a platform where green credits can be traded.

Speaking at a session ‘An aspiration of modern India’ at the GIFT City, the Finance Minister said companies in India will be able to access global funds soon with direct listing on IFSC exchanges.

“The much awaited direct listing of stock in Gift IFSC was announced earlier. We are going through the process in a systematic manner and I’m confident that it will happen at the earliest. With that Indian companies should be able to access global funds easily being listed in India,” she said.

Last year, the government had decided to allow listed and unlisted companies to directly list themselves on the IFSC (International Financial Services Centre) exchanges at GIFT City.

Currently, Indian companies can access foreign equity markets only through issuing depository receipts or by listing their debt securities on foreign markets. The Finance Minister suggested that there should be a platform located at the IFSC where green credits can be traded.

The Minister further said India has a funding gap of $10.1 trillion to meet its net zero commitment which has to be fulfilled by 2070 and GIFT City could help in bridging that gap.

“I would think the authorities here should work on getting a platform ready so that green credits can be sold by people who are planting trees.”

“Miyawaki forests are coming up all over the country, some credits for that and any other practices that you do in afforestation or activities which are full of the green certification, meaning using renewable energy, solid waste management, and so on, should be able to first come here to say I have credits, which I wouldn’t want to sit, let it be traded. This place should be the place for getting those credits bought and sold,” Mr. Sitharaman said.