Event Details

The Credit Summit 2025 report lays out the opportunities, challenges and financial pathways needed to make green credit a reality at scale.  It also captures concrete ideas ranging from the need for a national green finance taxonomy and climate-adjusted credit models, to risk-sharing mechanisms, blended finance, and early thinking around institutional innovations that could expand green capital flows. 

The focus is on highlighting the critical interventions needed for NBFCs to scale their role in climate and cleantech financing.

❱❱ Balancing Asset and Liability-Side Challenges: NBFCs face a dual challenge— access to affordable capital (liability side) and building a strong pipeline of bankable cleantech projects (asset side). While innovative financial instruments like securitization and pooled bonds can lower the cost of capital, ensuring steady demand for climate-tech financing remains crucial.

❱❱ Structuring Climate Finance for New and Emerging Segments: Beyond rooftop solar and EVs, other cleantech verticals such as bioenergy, energy efficiency, and smart grid solutions are emerging as viable areas for NBFC financing. However, issues like resale values, large-scale adoption, and technology reliability remain hurdles.

❱❱ Expanding Access to Finance for New-to-Credit Customers: Many end-consumers of cleantech solutions—especially in solar and EV adoption—are New-to-Credit and lack formal financial histories. NBFCs must develop risk assessment frameworks to extend financing while managing default risks effectively.

❱❱ Adapting to New Financing Structures: The rise of product-as-a-service models (e.g., pay-as-you-go, rental-based clean energy services) challenges traditional lending frameworks. Unlike conventional loans, these models do not yet integrate with formal credit reporting and debt recovery systems, requiring NBFCs to rethink how they structure financing.

❱❱ Strengthening Climate Risk Integration and Stress Testing: NBFCs must incorporate geographic risk mapping and climate stress testing into credit assessments to understand portfolio exposure and adjust lending criteria for high-risk regions and sectors.

❱❱ Role of Policymakers and Regulators in Scaling Climate Finance: Unlocking larger capital pools requires policy interventions, risk-sharing mechanisms, and collaboration with DFIs. Regulatory support for green NBFCs, guarantees, and blended finance structures could help mainstream climate finance and accelerate capital deployment.