Under the Green Indian Financial System (GIFS) Initiative, the GroW Network and Technical Assistance Center (TAC) convened a capacity-building session for banks and NBFCs on integrating green finance into automotive MSME lending. The training focused on helping financial institutions understand physical and transition climate risks across the automotive value chain and connect these risks to credit appraisal, risk assessment, and financing decisions.

Through sector examples, case studies, and practical discussions, participants explored how climate risks can affect revenue, operating costs, cash flows, collateral, and repayment capacity, as well as how these risks can translate into financing opportunities for green and resilient investments.

The session also highlighted the need for practical appraisal tools, stronger climate and sector data, and greater clarity on available financing schemes to help financial institutions embed climate considerations into existing lending processes.