New Delhi : At the Indian Venture and Alternate Capital Association’s (IVCA) GreenReturns Summit 2025, Shri Pramod Rao, Former Executive Director of Securities and Exchange Board of India (SEBI) and ex-Member of the International Financial Services Centres Authority (IFSCA), the National Financial Reporting Authority (NFRA), and the Indian Institute of Corporate Affairs (IICA), led one of the key fireside chats of Day 1. In conversation with Ashley Menezes, Partner and COO at ChrysCapital and Chairperson of IVCA, during a session titled “Catalyzing Change: Green Bonds, Impact Instruments, and the Future of Sustainable Finance in India”, Shri Rao outlined how India’s financial ecosystem is evolving to support sustainable investment and climate-aligned capital flows.
He spoke about how India’s financial markets are entering a transformative phase, where green bonds, social bonds, and other impact instruments are becoming critical for mobilising private capital towards sustainability goals. He highlighted the importance of policy clarity, market infrastructure, and investor confidence in scaling these instruments.
Shri Pramod Rao said:”India’s sustainable finance ecosystem is evolving rapidly, with corporates, regulators, and investors all playing a role. Through frameworks like green bonds, GSS Plus, and the social stock exchange, Indian companies now have structured avenues to raise capital for climate-positive and social-impact projects. These instruments provide investor confidence, ensure transparency, and enable scalable project financing, creating a robust foundation for long-term sustainable growth. The success of these frameworks shows that India is not only aligning with global standards but also innovating to meet its domestic climate and social objectives, encouraging more corporations to leverage these mechanisms for impactful financing.”
He emphasised that while sustainable finance is focused on environmental outcomes, it is also concerned with unlocking economic growth, innovation, and long-term value creation. Shri Rao noted that a strong regulatory framework, combined with industry collaboration, is key to ensuring sustainable finance instruments deliver measurable impact while remaining attractive to investors.
Menezes added that investors, fund managers, and policymakers must work together to create market depth, improve transparency, and integrate environmental, social, and governance (ESG) principles across capital allocation decisions.
Ashley Menezes said: “Sustainable finance is no longer just about compliance; it’s about driving measurable impact and fostering innovation. As investors, fund managers, and policymakers, we need to actively encourage outcome-based reporting, improve the credibility and comparability of ESG ratings, and support innovative instruments like ESG bonds and social stock exchanges. By deepening market adoption, engaging corporates, and creating transparency across investments, India can ensure that capital is effectively mobilised towards inclusive and climate-resilient growth, ultimately supporting the country’s long-term sustainability goals for future generations.”
Their conversation revealed that India’s sustainable finance ecosystem is at a pivotal stage, offering opportunities for innovation, capital mobilisation, and scaling climate-positive solutions. The discussion showcased how regulators, investors, and industry leaders can collaborate to strengthen India’s green finance market and support the country’s broader sustainability goals.
