On April 08, 2025, the International Financial Services Centres Authority (“IFSCA”) issued a consultation paper on the framework for Transition Bonds (“Consultation Paper”)[1]. IFSCA invites comments from stakeholders on the Consultation Paper latest by April 29, 2025.
This Consultation Paper aims to notify a framework for Transition Bonds to support financing for high-emission sectors shifting to low-carbon pathways. The eligible issuers inter-alia shall be required to align with recognised taxonomies (ASEAN, EU, Climate Bonds, etc.) and present a credible, Paris-aligned transition plan. An independent external review shall be mandatory, and detailed initial and annual disclosures shall be required, covering emission targets, CapEx plans, and use of carbon credits. The framework aims to boost credible transition finance through the IFSC platform.
[1] https://ifsca.gov.in/Viewer?Path=Document%2FReportandPublication%2Fconsultation-paper-on-transition-finance_080425_final08042025030602.pdf&Title=Consultation%20Paper%20on%20Framework%20for%20Transition%20Bonds&Date=08%2F04%2F2025