PHDCCI Urges Government to Create Green Bank to Fund Clean Energy Ahead of Budget 2026

PHDCCI Urges Government to Create Green Bank to Fund Clean Energy Ahead of Budget 2026

January 10, 2026

Industry group PHD Chamber of Commerce and Industry (PHDCCI) has recommended that the Indian government set up a specialized Green Bank or Climate Finance Facility to help finance renewable energy, energy-efficient projects and electric vehicles in the upcoming Union Budget 2026. The proposal aims to attract more private investment into sustainable technologies. 

In its pre-Budget suggestions, PHDCCI said the new financial institution should not only provide funding but also include measures such as risk-sharing arrangements and clear disclosure rules to ensure accountability in green lending. The chamber’s representatives told officials from the banking, financial services and insurance (BFSI) sector that such a facility could unlock substantial private capital for India’s clean energy transition. PHDCCI also proposed that once established, the Green Bank should be permitted to raise money through green bonds and similar pooled instruments, giving it greater capacity to support long-term investments in low-carbon technologies. In addition to this recommendation, the chamber has shared other policy suggestions covering credit support and reforms for various sectors with the finance ministry as part of its pre-Budget engagement. 

The Budget session of Parliament is expected to begin on January 28, with the Union Budget scheduled for presentation on February 1, 2026.