Clean energy finance and investment roadmap

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Development of a Clean Energy Finance and Investment (CEFI) Roadmap can help India to achieve its clean energy ambitions, bringing together government and private sector stakeholders to agree upon a clear action plan that identifies and addresses bottlenecks complicating or constraining finance and investment in renewable energy and energy efficiency developments.

The CEFI Roadmap will outline opportunities to tailor interventions to channel capital for clean energy development at suitable scales. This includes identifying innovative financing solutions and effective investment vehicles that can help deepen local capital markets, bring in new investors and attract international capital for clean energy.

The CEFI Roadmap, developed by the OECD Clean Energy Finance and Investment Mobilisation (CEFIM) team in partnership with the Natural Resources Defense Council (NRDC) and under the guidance of the Government of India, will bring together stakeholders through a series of three workshops:

1. To assess critical barriers and opportunities to prioritise actions that improve clean energy finance and investment
2. To identify and assess innovative solutions and effective investment vehicles that can deepen capital markets and mobilise stakeholders/investors
3. To deliberate recommended actions and build consensus on the steps forward that implement and operationalise financing tools able to attract capital at suitable scale.

Through this process, the CEFI Roadmap will endeavour to set forth a clear action plan, built on consensus, to help unlock further finance and private capital for clean energy projects. Emphasis will be on the development of clean energy projects over the next five (5) years.

For more information on the CEFI Roadmap, download the background document.

The CEFI Roadmap has set forth a clear action plan, providing a comprehensive overview of key enabling tools and financing mechanisms in critical areas relevant to clean energy investment.  The recommendations are built by consensus, to help unblock further finance and private capital for clean energy projects.  Emphasis is on the development of projects over the next decade.

Three focus areas have been selected in line with governmental priorities to unlock the potential for these segments with India's economic recovery plans and its Aatma Nirbhar Bharat (Self-reliant India) ambitions.

Offshore wind can play a critical role in meeting India’s renewable energy targets to 2030, particularly given the country’s 7 600 kilometres of coastline. Enabling the prospects for offshore wind capacity additions, however, will require targeted actions that help to channel capital to early projects whilst enabling a pipeline of future capacity additions.

A first CEFI Roadmap workshop on solutions to unlock capital for offshore wind development in India was held on Friday, March 4th 2022. The workshop brought together stakeholders from government, industry, finance and development partners to discuss key challenges and opportunities for offshore wind projects in coming years and to 2030. Discussions built upon findings from a series of stakeholder consultations held by OECD and NRDC to assess priority areas for action under the CEFI Roadmap.

Energy efficiency presents an opportunity for India’s micro, small and medium enterprises (MSMEs) to reduce their emissions footprint whilst achieving energy cost reductions. Enabling investment in energy efficiency solutions, however, will require addressing barriers to finance, including but not limited to awareness, incentive and capacity to carry out energy efficiency upgradation and the overall cost of financing faced by MSMEs.

A first CEFI Roadmap workshop on solutions to unlock capital for MSME energy efficiency investments in India was held on Monday, March 14th 2022. The workshop brought together stakeholders from government, industry, finance and development partners to discuss key challenges and opportunities for MSME energy efficiency finance in coming years. Discussions built upon findings from a series of stakeholder consultations held by the OECD and NRDC to assess priority areas for action under the CEFI Roadmap.

Energy efficiency was highlighted in India’s 2016 nationally determined contributions, contributing up to 56% of India’s commitment to reduce emissions intensity by 33-35% over 2005 levels by 2030. Prime Minister Shri Narendra Modi announced intentions at COP 26 to increase this carbon intensity target to 45% reduction by 2030.

A second CEFI Roadmap workshop was held on Tuesday, May 12th 2022. It has brought together representatives from the Government of India, energy service companies, domestic financial institutions, and international development finance organisations to discuss cost of finance as a key barrier to energy efficiency uptake in the MSME sector.

India has an ambitious target of 500 gigawatts (GW) of renewable energy capacity by 2030 as well as net-zero ambitions by 2070. Meeting these objectives will require development of clean energy solutions such as offshore wind and green hydrogen production.

A second CEFI Roadmap workshop was held on Wednesday, May 13th 2022. It has brought together representatives from the Government of India, energy companies, domestic financial institutions, and international development finance organisations to discuss investment needs and solutions to increase domestic and international finance for offshore wind & green hydrogen in India.

Targeted application of public funds, alongside international climate and development finance can “crowd in” investors and channel private capital to meet India’s clean energy ambitions. The third workshop under the Clean Energy Finance and Investment Roadmap for India convened stakeholders for in-depth focus group discussions on two key recommendations from the CEFI Roadmap: (i) an Energy Savings Insurance for energy efficiency in MSMEs, and (ii) Blended Finance Facilities for offshore wind and green hydrogen.