India’s climate and economic targets: net-zero by 2070 and a $30 trillion economy by 2047, demand a fundamental shift in how capital is mobilized, allocated, and managed. Meeting these goals will require a credit system that is climate-aligned, risk-informed, and capable of serving diverse sectors at scale.

The Credit Summit 2025, held in New Delhi, convened over 150 leaders from policy, finance, and development to examine what this transformation entails. Co-hosted by Dalberg and Council for International Economic Understanding, the Summit focused on one of the most critical, yet often overlooked, actors in India’s green finance landscape: Non-Banking Financial Companies (NBFCs).

With deep regional presence and operational flexibility, NBFCs are uniquely positioned to drive investments in decentralized renewables, electric mobility, sustainable agriculture, and climate adaptation. Yet they face persistent barriers, including exposure to climate risk, limited access to low-cost capital, and a regulatory environment not yet aligned with the requirements of green lending.

The Summit explored key shifts needed to address these challenges:

• Deploying blended finance and credit guarantee mechanisms to reduce risk and expand capital access
• Integrating climate risk into credit scoring, underwriting, and stress testing models
• Scaling capital market solutions: from green bonds to sustainability-linked loans
• Advancing regulatory tools such as green taxonomies, climate disclosures, and risk-weighted incentives
• Exploring the establishment of a dedicated green financial institution to support high-impact, high-risk investments

Strengthening India’s green finance architecture will require us to build on the strengths of domestic institutions like NBFCs. Their potential to have a last mile reach, serve underserved sectors, and innovate at the local level makes it essential to scaling climate-aligned credit. With the right policy signals, data systems, and risk-sharing tools, they can play a catalytic role in driving inclusive, resilient growth.

The Credit Summit 2025 report synthesizes insights from the convening and presents a forward-looking agenda for aligning India’s credit system with its climate priorities, positioning NBFCs at the core of a more inclusive, resilient financial architecture.

Download the full report below.