Blue Economy | Volition LLP https://volitionllp.com Environment & Finance Sun, 13 Apr 2025 11:33:31 +0000 en-US hourly 1 https://wordpress.org/?v=6.8 https://volitionllp.com/wp-content/uploads/2020/05/cropped-vol-icon-32x32.png Blue Economy | Volition LLP https://volitionllp.com 32 32 IFC Partners with Axis Bank to Provide Climate Loan, Blue Finance https://volitionllp.com/ifc-partners-with-axis-bank-to-provide-climate-loan-blue-finance/ Mon, 07 Oct 2024 11:06:20 +0000 https://volitionllp.com/?p=6332 The International Finance Corporation (IFC), a member of the World Bank Group and the largest global development institution, is partnering with Axis Bank, one of the largest private sector banks...

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The International Finance Corporation (IFC), a member of the World Bank Group and the largest global development institution, is partnering with Axis Bank, one of the largest private sector banks in India, to provide a $500 million loan to help develop a blue finance market and scale up financing of green projects in India.

This is IFC’s first blue investment in India and the first blue transaction by a financial institution in the country.  Blue loans are financing instruments that raise and earmark funds for investments such as water and wastewater management, reduction of marine plastic pollution, restoration of marine ecosystems, sustainable shipping, eco-friendly tourism, and offshore renewable energy.

This transaction is also the largest green financing by IFC in the country. The funding will enable Axis Bank to expand its climate finance portfolio.

With India’s rapid urbanization and economic growth, there is a substantial opportunity to enhance water and energy efficiency. The water and wastewater treatment market size was estimated at $1.6 billion as of 2022 and is expected to reach $3 billion by 2029. Additionally, the green buildings sector presents an investment opportunity of $1.4 trillion by 2030, driven by a need for sustainable infrastructure. Most of these investments need to come from the private sector to offset limited public funding.

Axis Bank on Sustainable Finance

Speaking on the occasion, Amitabh Chaudhry, Managing Director and Chief Executive Officer of Axis Bank said, “With the increasing effects of climate change into the global ecosystem and the growing awareness of environment sustainability, it’s imperative for banks to adopt sustainable lending practices. We are excited to partner with IFC with whom we share a common vision of strengthening standards and lending practices to boost sustainable finance in India. Given Axis Bank’s focus on growing its climate and sustainable finance portfolios, along with its large size, systemic importance, and wide reach, we hope to be a strong and stable partner for IFC in the key focus area of climate finance in India.”

“We are thrilled to announce our inaugural blue loan in India, marking our largest climate finance initiative in the country to date. India serves as an exceptional testing ground for innovative approaches to climate adaptation. This loan will not only catalyze private sector investment in this emerging asset class but also direct long-term funding toward fostering a sustainable blue economy. Additionally, it aims to enhance financing for climate projects across India, with a strong emphasis on green buildings that will mitigate climate change impacts and generate jobs. Partnering with Axis Bank, a like-minded ally, we are committed to propelling India’s sustainable and inclusive growth forward,” said Makhtar Diop, Managing Director of IFC.

Axis Bank’s Milestone on Sustainable Finance

Axis Bank is among the first banks in India to have a board-approved Environmental, Social and Governance (ESG) policy for lending that adheres to IFC Performance Standards. The Bank remains committed to supporting India’s climate agenda with public commitment of incremental financing of Rs 60,000 crores (approximately $7.2 billion) in ESG-aligned sectors by 2030 (from August 2021), of which Rs 30,000 crores (approximately $3.1 billion) of incremental financing was achieved by March 2024.

Axis Bank has been a pioneering issuer of sustainable instruments among Indian financial institutions. It issued Basel III additional tier I bonds in 2021 and senior green bonds in 2016. The bank, with a long-standing history of being a pioneer in sustainable financing, will use IFC’s financing to promote resource-efficient growth and to create jobs, while protecting the critical clean water resources and supporting the nation’s climate goals.

As part of its advisory services, IFC will support Axis Bank in growing its green buildings portfolio, including for affordable housing projects and building capacity for impact reporting. Through this engagement, IFC aims to catalyze the green buildings’ market in India. IFC will also provide a performance-based incentive of up to $2.9 million from the UK-IFC Market Accelerator for Green Construction (MAGC) program aimed at supporting the design and construction of green buildings certified by IFC’s EDGE (Excellence in Design for Greater Efficiencies) green buildings standard.

IFC has built a successful track record in the green finance market and is laying the groundwork for launching and scaling blue finance across the globe. Since 2020, IFC has provided more than $1.9 billion dollars in blue loans and bonds to private institutions around the world.

About IFC

IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.

About Axis Bank

Axis Bank is third largest private-sector bank in India. The Bank serves various customer segments, ranging from large and mid-corporates to SMEs and agriculture and retail businesses. As of 30th June 2024, the Bank had 5,427 branches, including extension counters, 15,014 ATMs, and 2,987 touchpoints across India, facilitating the Bank to reach out to a vast population of India with its wide range of products and services. The Axis Group includes Axis Mutual Fund, Axis Securities Ltd., Axis Finance, Axis Trustee, Axis Capital, A.TReDS Ltd., Freecharge, Axis Pension Fund and Axis Bank Foundation.

Source: IFC News, Dated 7 October 2024
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Summary: First Environment and Climate Sustainability Working Group (ECSWG) https://volitionllp.com/summary-first-environment-and-climate-sustainability-working-group-ecswg/ Sat, 11 Feb 2023 18:20:47 +0000 https://volitionllp.com/?p=6262 1st Environment & Climate Sustainability Working Group (ECSWG) meeting concludes with commitment to constructively work towards the objective of the 3 priority areas.

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First Environment and Climate Sustainability Working Group (ECSWG)

First Environment and Climate Sustainability Working Group (ECSWG) meeting concludes in Bengaluru with all G20 countries showing commitment to constructively work towards the objective of the three priority areas.

The First G20 Environment and Climate Sustainability Working Group (ECSWG) meeting concluded in Bengaluru today on a positive note with all G20 countries showing interest and commitment to constructively work towards the objective of the three priority areas of

  1. Arresting Land Degradation, Accelerating Ecosystem Restoration and Enriching Biodiversity;
  2. Promoting a Sustainable and Climate Resilient Blue Economy and
  3. Encouraging Resource Efficiency and Circular Economy.

The first meeting of Environment and Climate Sustainability Working Group (ECSWG) marks the beginning of constructive discussions within G20 countries for a sustainable future, led by India’s G20 presidency. The three-day meeting of the ECSWG from 9-11 February, 2023 was led by the Ministry of Environment, Forests and Climate Change (MoEFCC), Government of India.

The meeting began with a side event centered around sharing of best practices for ecosystem restoration of forest fire and mining affected areas followed by a visit to the Bannerghatta National Park and Kalkere Arboretum to showcase the forest ecosystems of Karnataka, ecosystem restoration and ecotourism models, as well as wildlife protection.

The second day started with an inaugural address by Union Minister of Housing and Urban Affairs and Petroleum and Natural Gas, Shri Hardeep Puri. Thereafter, welcome address was delivered by Secretary, MoEFCC, Ms. Leena Nandan. She highlighted that India intends to address matters of environment and climate change through an action-oriented and consensus driven approach. The ECSWG will work in close collaboration with other G20 key working groups to holistically address issues relating to environment, sustainability and climate change, she further added.

The discussions during the first half of the second day revolved around methods to restore land-based ecosystems affected by anthropogenic causes and enhancement of the Global Biodiversity Framework.

In the second half, discussions were held on the creation of circular economies in various sectors including steel and biowaste and the role of extended producer’s responsibility in creation of a circular economy. The idea of a G20 industry coalition for resource efficiency and circular economy was also tabled. The sessions saw enthusiastic participation of delegates from all countries. During this session, Joint Secretary, G20 Secretariat, Ms Eenam Gambhir, made a presentation on the proposed High-Level Principles on LiFE and the Green Development Pact as potential deliverables, being steered by the Development Working Group. A cultural event was organized in the evening to showcase the rich cultural heritage of Karnataka and provided a unique ‘India’ experience to the delegates who had arrived from 29 Countries.

The third and last day commenced with the session focusing on theme of ‘Sustainable and Climate Resilient Blue Economy’. The opening remarks were made by the Secretary, Ministry of Earth Sciences, Dr. M Ravichandran.  The Oceans and Blue Economy discussions covered a range of issues including marine litter, conservation and enhancement of coastal and marine ecosystems and marine spatial planning, over three meetings and one side event. The focus of discussions on was on the problem of marine plastic litter and its adverse impacts.

The Presidency presented the inception report of the technical study on ‘Accelerating the transition to Sustainable & Climate Resilient Blue Economy’ that would cover all G20 Countries and provide inputs for development of high-level principles on ‘Sustainable and Climate Resilient Blue Economy’. It was also mentioned that Indian Presidency will publish the 5th report on actions against marine plastic litter under the G20 Framework for Marine Plastic Litter, in collaboration with Japan. Delegates expressed support for actions for sustainable use of ocean resources, prevention of pollution and littering and for protection and enhancement of biodiversity. These are critical for building resilience to climate impacts and maintain the carbon sequestration potential of oceans, besides contributing to a thriving blue economy that would support livelihoods of local coastal communities.

Towards the concluding session, it was highlighted that the India Presidency plans to convene an Ocean 20 dialogue to facilitate detailed discussion on important aspects on Blue Economy. The Indian Presidency also announced a coordinated beach cleaning event to be conducted on 21st of May 2023 on the sidelines of the Ocean 20 dialogue to emphasize on the importance of action on marine litter and community participation. The importance of LiFE (Lifestyles for Environment) Principles was highlighted, as behavior changes to encourage use of sustainable alternatives to single use plastics, prevention of littering etc.  would contribute to clean and healthy oceans.

Secretary MoEF&CC and Secretary Ministry of Earth Sciences addressed the media on the deliberations during the day.

The discussions will continue in the second half and the delegates agreed to engage constructively and collaborate with the India Presidency for further work towards achieving the proposed outcomes envisioned under the ECSWG.

The discussions during this meeting will be taken forward at the 2nd ECSWG meeting, which is scheduled on 27-29th March, 2023 at Gandhinagar.

Source: G20 Website, February 11, 2023

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