India Inc is all in on net zero, but needs capital and policy support: Standard Chartered

Corporate India is increasingly confident about delivering on the country’s net zero ambitions, but execution will hinge on access to capital, policy stability and wider adoption of sustainable finance tools, according to a new report by Standard Chartered.

The bank’s report, India and the Energy Transition, based on a survey of 40 Indian corporates, paints a largely optimistic picture of how companies view the country’s decarbonisation pathway. As many as 83% of the firms surveyed said they have already put net zero strategies in place, while 93% are actively investing in solutions to reduce emissions.

Looking ahead, corporate commitment appears set to deepen. Nearly 98% of respondents expect their investments in sustainable solutions to rise over the next five years, underscoring growing boardroom focus on energy transition, clean technologies and emissions reduction.

However, the report also highlights a clear gap between ambition and action when it comes to financing tools that can accelerate this transition.

Despite strong intent, less than 40% of the surveyed companies have so far engaged with sustainable finance solutions, such as green loans or sustainability-linked financing. Exposure to carbon markets remains even lower, with only 32% having any experience with carbon credits so far.

That said, the appetite to close this gap appears strong. Around 86% of corporates expect to use sustainable finance solutions in the future, while 88% said they anticipate being active in the carbon credit market, signalling a potential surge in demand for structured transition finance.

Speaking to CNBC-TV18, Ben Daly, Global Head of Transition Finance at Standard Chartered, said access to capital will be a decisive factor in determining how quickly India’s energy transition gathers pace.

“Access to capital is obviously going to be key,” Daly said. “Standard Chartered, with my team and our broader corporate and investment banking franchise, is very much here to enable capital for the energy transition.”

Beyond financing, Daly stressed the importance of a stable and predictable policy environment to ensure projects can move from planning to execution.

“The policy landscape is also important. Making sure there is a platform and stability that enables these projects to reach financial close will be critical,” he said.

Against this backdrop, global lenders are positioning themselves to play a larger role in India’s transition journey. Daly said the bank has made a significant long-term commitment to sustainable finance.

“We have one big number we can talk about today. The bank has committed to mobilise $300 billion of sustainable finance by 2030,” he said.

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For India Inc, the message from the data is clear: while corporate intent and investment appetite are no longer in doubt, scaling up sustainable finance adoption — supported by policy clarity and global capital — will be crucial in turning net zero pledges into on-ground progress.

As India pushes ahead with its energy transition goals, the coming years are likely to test how effectively corporates, financiers and policymakers can work together to bridge this execution gap.