Policy makers need to consider the targeted interventions that can boost the financial flows to the domain of clean energy. Analyse (200 Words)
Refer - Business Line
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IAS Parliament 4 years
KEY POINTS
The RBI’s Financial Stability Report indicates that gross non-performing assets of the banking system are set to rise from 7.5 per cent (of total advances) in September 2020 to 13.5 per cent by September 2021.
Targeted interventions
· Opening up bond market refinancing of Renewable Energy project loans through a subsidised credit-enhancement facility can address the funding constraints.
· Credit enhancement is one means to make RE issuances attractive to these investors.
· A green taxonomy can make international capital more accessible to financially under-served clean energy segments.
· Concessional green capital that either directly lends or catalyses private sector investments by underwriting risks.
· A green taxonomy , a classification system for sustainable activities with defined performance indicators aid in the identification of a credible pipeline of projects.
· Regulators must strike a balance between a taxonomy that is both fit-for-purpose for India and harmonised with international standards.
· Such a taxonomy should be able to evaluate and ascribe green credentials to the wide range of clean energy applications deployed.
Dev 4 years
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IAS Parliament 4 years
Good attempt. Keep Writing.
