India’s green bond market has grown rapidly, with the sovereign green bond issuance in 2023 signalling government commitment. The RBI’s Framework for Green Deposits and SEBI’s regulations on green debt securities are creating a structured market for sustainable finance.
Sustainability-linked loans (SLLs) are also gaining traction, with Indian banks offering interest rate reductions tied to ESG performance targets. These instruments align borrower incentives with sustainability outcomes — but only if the KPIs are ambitious, the targets are independently verified, and the consequences of missing targets are meaningful.
For companies, green finance offers a cost-of-capital advantage. But accessing it requires credible sustainability data, verified environmental claims, and robust reporting frameworks. This is where ESG advisory and assurance become directly linked to financial performance.
RSustain helps clients access green finance by: preparing green bond frameworks aligned with ICMA Green Bond Principles, designing SLL KPI structures, conducting second-party opinions on sustainability credentials, and supporting the ongoing reporting and verification required by lenders and investors.
India’s ambition to mobilise $2.5 trillion for climate action by 2030 depends on a functioning green finance ecosystem. Companies that position themselves as credible sustainable investments will attract capital; those that don’t will pay a brown premium.