Greening India’s Growth Story

November 2019

Dr Srini Sundaram
 Problem

Global extreme events and Food, Water, Air are

losses are accelerating due essential for ecosystem and
to climate change lives but facing severe
stress

Extra 117 basis points in Interest rate payments

(source: UNEP, SOAS university)
Products to mobilise capital and protection
A consumer centric platform to mobilise agricultural insurance
products that fits farmers and businesses needs.

A services platform to mobilise capital markets to reach SDG goals

and to reduce the cost of capital to emerging markets.

A technology driven platform that is powered using earth

observation data, IoT Sensor network on the assets, weather,.
Macro and market risk data

We are backed and supported by EU Climate KIC.

Parametric Insurance - Seed to Sale

Farmers & Ag businesses

Financing Institution
Seed to Products Off-takers/Buyers

Crop Insurance

(Credit/Credit (Delivery insurance/

Insurance) Surety Bonds)

Risk Capital (Carriers, Re, ILS)

Platform’s Green bond services offerings

Issuer Agvesto’s SDG services

Partner led consortium
States Design of a Green bond framework
✔

Municipalities Certification (Climate Third party

✔
Bond initiatives) verification
Corporations
Credit rating ✔

Pre Issue: Terms, Marketing, Roadshow Registering ✔

Issue - Investment Bank: Announcing the issue,

Book building, Price & allocation ✔
Issue - Stock Exchange partnerships
✔
2019 - World through the SDG lens

Our progress towards a sustainable world is still way short of the goals we have set resulting in an inter
generational crisis….

UN estimates an annual financing of $3Tn to $5Tn to meet the SDG with bulk from Private
sector
India Growth story - Measures
India Aligns itself with UN SDG with a strong
focus on achieving Sustainability

National Level SDG

• Government of India via Niti Aayog have created a national
level SDG dashboard
• https://sdgindiaindex.socialcops.com/
• We have launched an SDG financing facility (SFF) platform
to mobilise
• private sector capital to Indian SDG initiatives partnering
with UNDP, Social Finance
• India.
State Level - Localising the SDGs
• Each of the States have their action plan detailed in a Vision
document
• E.g. Haryana Vision 2030.
India Green Growth story - Opportunities
Economic impact:
Energy: India is the Third largest energy consumer in the world.

Manufacturing sector boost with expectation of 25% contribution

by 2025.

Technology Sector: Expected to add $1Trillion economic value to

the GDP by 2025.
Demographic and Social impact:
Economic liberalisation and sustainable urbanisation policies have resulted in a
largest transformation of middle class families.

Objective is to assist the nation to serve these segments with environmental resources in tact.

Labor market effect with Green growth: Transition to Green economy can create over 3 million new jobs. (Source:
ILO)
 India Green Growth story - Key facts

Five sectors are identified as

high impact sectors:
- Agriculture
- Power
- Transport
- Manufacturing
- Construction
India Growth story - Financing and Issuer challenges
• Lower Cost of Capital - to mobilise to serve large segments of
underserved.

• ESG frameworks development that can suit the country in its current
form.

• Credit rating (AAA is simply not the norm. India Sovereign rating is
BBB-. Capital flight is common during market volatility)

• Currency Risk and Hedging costs (about 8% for 10 year tenure)

• External Commercial Borrowing norms. (Only 25% of ECB are allowed

to finance existing loans). Double taxation applied on interest

• Geo spread - Carbon mitigation/Resilience/Adaptation. Various states

have different priorities and measurement frameworks don’t exist for
Adaptation and Resilience building yet

Ask: Community needs to come together to address Source: Green Growth Knowledge report
the challenges and enable robust market to invest.