Bridging the Financing Gap for Low Carbon Buildings: India’s Green Finance Network

India’s rapid urbanisation presents a major opportunity to shape a more sustainable built environment. With more than half of the infrastructure the country will need by 2050 yet to be built, decisions made today will have long-term implications for future energy demand and emissions. Flagship programmes such as Pradhan Mantri Awas Yojana (PMAY), led by the Ministry of Housing and Urban Affairs, Government of India, also create opportunities to integrate low-carbon, energy-efficient, and climate-resilient building practices at scale.  

Despite India’s strong policy framework, including the India Cooling Action Plan (ICAP) and the Energy Conservation and Sustainable Building Code (ECSBC), which establishes minimum energy performance standards for buildings, access to finance continues to constrain the pace at which low–carbon building (LCB) projects move from concept to implementation. 

India’s financing challenge is not simply a shortage capital, but an enabling ecosystem that has yet to fully connect viable LCB projects with sustainable finance. Higher upfront costs, limited incentives for lenders and borrowers, and fragmented market information continue to constrain investments. Small developers often lack access to suitable financing, while financial institutions can struggle to identify credible, investment–ready projects that meet both commercial and sustainability criteria.  

One response to this challenge is the Green Finance Network (GFN), a collaborative, member-led network established under the Asia Low Carbon Buildings Transition (ALCBT) project to accelerate financing for LCBs in India. Rather than serving as a financing facility, the GFN brings together financial institutions, project developers, technology providers, policymakers, and technical experts to identify financing barriers, strengthen project preparation and business development, facilitate knowledge exchange, and encourage greater private sector participation.  

By creating a space for these actors to engage, the GFN aims to strengthen connections between credible projects and potential sources of finance. Open to both national and international stakeholders, the network also promotes more inclusive access to green finance by encouraging the participation of women–led institutions and advancing gender responsive approaches across the green finance ecosystem.