 "Confederation of Indian Industry (CII)")
The Confederation of Indian Industry (CII) has called for amendments to the Environment Protection Act (EPA) and the Environment Impact Assessment (EIA) Notification to legally establish a unified Environmental and Climate Clearance Authority (ECCA) with powers to fast-track approvals for low-risk and green projects.
This comes a day after the industry body proposed creating ECCA in the upcoming Budget 2026-2027. “In CII’s view, this will entail amendments to the EPA and to the present EIA notification so that powers and responsibilities of project appraisal and clearance can be vested in a single institutional framework with appropriate safeguards,” Chandrajit Banerjee, director general of CII, told Business Standard.
Why does CII want amendments to the EPA and EIA Notification?
The intent is not to weaken environment protection, but to allow for fast-track, expedited pathways, especially for projects that are demonstrably green or low risk, he added. CII has also pushed for mandatory recycling and urban mining targets for lithium, nickel and cobalt, warning that India’s dependence on imports for these critical minerals could strain sectors such as EVs, defence manufacturing and advanced electronics.
Banerjee said that with strong producer responsibility norms, digital tracking and a national network of circular economy parks, India could meet 20-30 per cent of its domestic demand for these metals through recycling by the early-to-mid 2030s.
What is CII proposing on the financial side?
On the financial side, Banerjee clarified that the proposed Green Finance Institution (GFI) pitched in its Budget recommendations does not require tax concessions or incentives, but a clear regulatory framework that allows it to raise and channel capital efficiently from GIFT City.
“Key requirements include explicit recognition of the institution as a specialised green finance intermediary, streamlined rules for its operations in GIFT City, single-window coordination between GIFT regulators and national financial regulators, clarity on how Indian banks and investors can participate in its structures, and standardised documentation and disclosure norms for green assets,” Banerjee said.
How much finance could the proposed GFI mobilise?
Drawing from global precedents, Banerjee said the GFI could realistically mobilise $5-7 billion in green finance in its first five years of operations. “This would depend on effective design, strong project pipelines and close coordination with multilateral development banks and long-term investors, rather than on large fiscal support from the government,” he added.
What support does CII want for India’s clean-tech firms?
Banerjee also disclosed the specific size and structure of the proposed Green Tech Expo Fund, which was proposed to help India’s clean-tech firms participate in global sustainability and technology expos.
“A practical starting point would be an annual envelope of about $20-30 million in the initial years,” he said. The corpus can be created by converging existing export promotion schemes, leveraging philanthropic and multilateral climate funds, and the commerce ministry should anchor the fund given its role in export promotion, Banerjee said.
CII’s recommendations come as India seeks to address a widening green investment deficit, estimated at $1 trillion over the next 10 to 15 years.
