INDIA SUSTAINABLE DEBT STATE OF THE MARKET 2021

This report by the Climate Bonds Initiative analyzes the state of the sustainable debt market in India as of December 31, 2021. It details the growth of green, social, and sustainability (GSS) bonds and sustainability-linked bonds (SLBs), highlighting the dominance of the green sector and the role of non-financial corporates. The document also explores growth avenues in renewable energy, electric vehicles, waste management, and agriculture, while outlining the policy framework being developed by the Indian Ministry of Finance.

• The Indian GSS debt market experienced significant growth in 2021, with issuance increasing more than six-fold (+585%) to reach USD 7.5bn. By December 31, 2021, the cumulative volume of the market reached USD 19.5bn, making India the 19th largest GSS market globally and the sixth largest in the APAC region.
• Green labelled instruments are the primary driver of the market, accounting for 89% of the total GSS market with a cumulative value of USD 18.3bn. In 2021 alone, green issuance reached USD 6.4bn, representing a 484% year-on-year growth rate.
• Private sector issuers, specifically non-financial corporates, lead the market. Non-financial corporates are the largest issuer type by both volume (USD 12.6bn) and number of deals (40 of 77). In 2021, non-financial corporates added a record USD 6bn in issuance.
• Renewable energy is the dominant use of proceeds for green bonds, with over USD 16.4bn (89% of cumulative green issuance) earmarked for renewable energy and related activities. Other 2021 allocations included low-carbon buildings (USD 85m) and water management (USD 20m).
• Sustainability-linked bonds (SLBs) emerged as a new tool for entities in transition, totaling USD 1.2bn by the end of 2021 across three issuers: JSW Steel (USD 500m), UltraTech Cement (USD 400m), and Adani Electricity Mumbai (USD 300m). These bonds are linked to specific KPIs, such as CO2 emission intensity reductions or renewable energy shares.
• The US Dollar is the preferred currency for GSS debt in India, accounting for 87% of the cumulative amount issued and 37 of the 75 deals. Local currency (INR) ranks second with 37 deals worth USD 2.1bn, while the Euro has been used for a single EUR 300m deal by Power Finance Corporation Ltd.
• The Indian Ministry of Finance (MoF) has established a Sustainable Finance Task Force to develop a roadmap based on four pillars: an Indian Taxonomy of sustainable activities, reporting and disclosure, financial policy and regulation, and ecosystem development.
• The Union Budget of 2022 announced the issuance of a domestically issued, INR-denominated sovereign green bond, which is expected to boost the domestic market and attract further public and private capital.

APA

Bhattacharya, S., Kumar, N., & Lonikar, P. (2022). INDIA SUSTAINABLE DEBT STATE OF THE MARKET 2021. Climate Bonds Initiative. https://www.climatebonds.net/files/documents/publications/India-Sustainable-Debt-Market-State-of-the-Market-2021-report.pdf

Chicago

Bhattacharya, Sandeep, Neha Kumar, and Prashant Lonikar. INDIA SUSTAINABLE DEBT STATE OF THE MARKET 2021. Climate Bonds Initiative, 2022. https://www.climatebonds.net/files/documents/publications/India-Sustainable-Debt-Market-State-of-the-Market-2021-report.pdf.

Wikipedia

{{cite report |last1=Bhattacharya |first1=Sandeep |last2=Kumar |first2=Neha |last3=Lonikar |first3=Prashant |title=INDIA SUSTAINABLE DEBT STATE OF THE MARKET 2021 |publisher=Climate Bonds Initiative |date=May 2022 |url=https://www.climatebonds.net/files/documents/publications/India-Sustainable-Debt-Market-State-of-the-Market-2021-report.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{bhattacharya2022india, author = {Bhattacharya, Sandeep and Kumar, Neha and Lonikar, Prashant}, title = {{INDIA SUSTAINABLE DEBT STATE OF THE MARKET 2021}}, institution = {Climate Bonds Initiative}, year = {2022}, month = may, url = {https://www.climatebonds.net/files/documents/publications/India-Sustainable-Debt-Market-State-of-the-Market-2021-report.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }