Financial Instrument Design

My research advances climate finance by strategically redesigning existing instruments and creating new solutions for specific risks. I analyze and optimize green bonds, transition mechanisms, and risk frameworks that leverage public capital’s catalytic role to mobilize private investment effectively. These instruments are crucial during the transition period before markets fully price climate externalities, simultaneously enhancing capital efficiency and environmental impact.

  • Repurposing India’s coal power plants: Sustainability-linked green bonds as a financing solution

    Repurposing India’s coal power plants: Sustainability-linked green bonds as a financing solution

    The article proposes sustainability-linked green bonds (SLGBs) as a solution for India to balance its growing energy needs with climate goals while addressing the sensitive issue of coal power plant retirement. It suggests that private utilities controlling 35% (73 GW) of India’s coal capacity could use SLGBs to finance the repurposing of coal plants into […]

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  • How to mobilise green finance for Indian micro, small and medium enterprises

    How to mobilise green finance for Indian micro, small and medium enterprises

    The article discusses how India’s 63 million MSMEs, which contribute 30% of GDP and consume 20-25% of industrial energy, struggle to access financing for decarbonization despite high energy costs (10-30% of production costs). It proposes a green finance platform governed by SIDBI to help MSMEs access green bond capital, leveraging SIDBI’s AAA credit rating and […]

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  • Battery Subscription Facility

    Battery Subscription Facility

    The Battery Subscription Facility is a conceptual financial instrument designed to address key barriers to electric bus adoption in India. The proposed mechanism would reduce upfront costs by 40-50% through a battery-as-a-service model, where the Facility would own batteries while bus operators subscribe to their use on a daily or per-kilometer basis. If implemented, this […]

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  • Solar Investment Trusts (SEITs)
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    Solar Investment Trusts (SEITs)

    The Solar Investment Trusts (SEITs) are innovative investment vehicles designed to help small-scale rooftop solar developers in India raise equity capital at lower financing costs. Structured as Infrastructure Investment Trusts (InvITs), they pool multiple solar projects to reduce risk through diversification and increase market participation by opening investment to various investor classes with different risk […]

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  • FX Hedging Facility

    FX Hedging Facility

    The FX Hedging Facility is a customizable currency hedging product comprised of a foreign exchange (FX) hedging facility backed by an FX tail risk guarantee. The mechanism targets a particular tranche of FX risk and allows allocation of risks to suitable parties, and also eliminates the credit risk premium otherwise charged in a commercial currency […]

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