Industry body calls for a holistic transition to sustainability across finance, recycling and infrastructure, simplifying environmental regulations, strengthening compliance, advancing circularity, and ensuring India’s future building stock is energy‑efficient.
The Confederation of Indian Industry (CII) has called for a suite of institutional reforms and policy interventions to accelerate India’s transition to a green economy. In its pre‑Budget 2026-27 recommendations, the apex industry body has proposed the creation of a Green Finance Institution (GFI), a Green Tech Expo Fund, Circular Economy Parks, and a unified authority for environmental clearances.
“As India moves closer to its goal of becoming a $5 trillion economy, advancing a green economy is no longer a choice but a strategic necessity. This transition is vital not only for meeting climate goals but also for shaping India’s long‑term growth, competitiveness, and global standing,” said Chandrajit Banerjee, Director General, CII.
India will require an estimated $1 trillion in green investments over the next 10-15 years, cumulatively reaching nearly $10 trillion by 2070, to meet its net-zero targets. Current green finance flows cover only about 25 per cent of this need, amplifying the urgency for long‑term, low‑cost capital.
CII has proposed a dedicated GFI to mobilise large‑scale capital across renewable energy, clean mobility, green buildings, and industrial decarbonisation. Structured as an intermediary rather than a balance‑sheet lender, the institution could be seeded by multilateral development banks, sovereign wealth funds, and philanthropies, with no direct fiscal outlay from the Centre. CII recommends locating the GFI within the Gujarat International Finance Tec‑City-International Financial Services Centre (GIFT‑IFSC) to leverage regulatory flexibility and attract foreign capital.
The institution could offer concessional loans, equity support, credit guarantees, and securitisation of small‑scale green assets to reduce project financing costs. CII also suggests a Green Tech Expo Fund to globalise India’s clean‑tech innovations and support participation in international sustainability expos.
Circular Economy and Resource Security
India’s high import dependence for supplies of critical minerals such as lithium, cobalt, and nickel poses strategic risks. CII recommends mandating recycling and urban‑mining targets for lithium batteries and electronics, backed by strict certification and fiscal incentives. Fast‑track clearances and strategic stockpiling of recovered minerals could enhance domestic refining capacity.
To address fragmentation in recycling value chains, CII proposes developing 15 Circular Economy Parks (CEPs) over the next three years, expanding to 45 within five years. These parks would focus on key waste streams such as e‑waste, plastics, tyres, and batteries. A national programme for large‑scale multi‑material recycling parks near urban centres could further strengthen the ecosystem.
Streamlining Environmental Approvals
Efficient and transparent environmental approvals are critical to enabling sustainable growth. CII recommends establishing a unified Environmental and Climate Clearance Authority (ECCA) with full digital integration across central and state agencies. The authority could implement risk‑based fast‑track approvals, automatic clearances within defined timelines, and expedited pathways for projects meeting emission, renewable energy, and zero liquid discharge (ZLD) thresholds.
India’s rapidly expanding urban landscape presents a unique opportunity to embed energy efficiency into future infrastructure. CII has proposed a National Digitalisation of Built Environment Initiative, mandating energy code compliance for large buildings and integrating the Energy Conservation Building Code (ECBC) with EC Act provisions.
“As India strides forward on its path of green transition, it is imperative to have a holistic approach to decarbonisation where transition finance, circularity and a robust ESG reporting ecosystem are prioritised, in addition to the focus on renewables and green mobility,” said Chandrajit Banerjee, Director General, CII. “These are vital for not only building a resilient, innovative, and inclusive economy but also offer significant untapped opportunities for investors looking to capitalise on these transformative trends,” he added.
Such measures will be critical in simplifying environmental regulations, strengthening industry compliance, advancing circularity and recycling, and ensuring that India’s future building stock is environmentally sustainable.