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 renewable energy facilities. The proposed SLGB structure would include three key performance indicators: decommissioning coal capacity by an ambitious date, adding renewable capacity, and ensuring just transition through re-skilling and compensation packages. The article cites a study showing that repurposing coal plants in Maharashtra could save INR 750 billion ($9.08 billion) over 10 years through lower renewable energy costs. The structure would allow for blended finance through dual-tranche issuances, with institutional investors targeting senior tranches and development banks focusing on subordinate tranches at concessional rates.

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