OECD Outlines Key Reforms to Unlock $10 Trillion Private Climate Investment in India
SDG 9: Industry, Innovation, and Infrastructure | SDG 13: Climate Action
Institutions: Ministry of Finance | Ministry of Road Transport and Highways | NITI Aayog
The OECD report titled “Addressing Legal and Regulatory Barriers to Quality Infrastructure Investment in India, Indonesia, and the Philippines” published on October 7, 2025, addresses the primary impediments investors face in attracting quality private financing for complex, multi-year infrastructure projects in Asia.
The report, which estimates India requires approximately $10 trillion to achieve its net-zero target by 2070, outlines three key areas for policy reform:
Land Acquisition and Investment Facilitation: Investors repeatedly face challenges due to restrictive land acquisition, complex and lengthy approval, bidding, and award processes. The report advocates for stronger alignment between national and local regulations and the implementation of harmonized national project lists to reduce regulatory discrepancies.
Innovative Financing: The study calls for expanding the availability and appeal of blended finance instruments and investment platforms as alternative investment vehicles. These mechanisms are essential for mobilizing private capital for projects that may be marginally bankable, encouraging partnerships with local stakeholders to improve risk profiles.
ESG Integration: The report highlights that Environmental, Social, and Governance (ESG) frameworks in many South Asian countries are underdeveloped. It urges regulatory reform to integrate ESG criteria directly into project preparation and structuring to align projects with international standards and investor mandates, thereby facilitating instruments like green bonds.
This analysis directly guides India’s immediate policy efforts under national programmes like the National Infrastructure Pipeline (NIP) and the PM Gati Shakti master plan by identifying specific regulatory friction points that must be removed to mobilize the massive private sector investment required for climate transition and sustainable growth.
What is National Infrastructure Pipeline (NIP)? The National Infrastructure Pipeline (NIP) serves as India’s core investment program, detailing a massive capital expenditure plan (initially over ₹111 lakh crore) spanning the five years from FY 2020 to 2025. It acts as a comprehensive, sector-wise inventory of both new and ongoing infrastructure projects across the country, primarily focusing on Energy, Roads, Urban development, and Railways. The NIP’s central objective is to provide transparency and predictability to domestic and foreign investors by offering a clear pipeline of public and private opportunities necessary to accelerate economic growth and achieve the country’s ambitious economic targets.
What is PM Gati Shakti National Master Plan? PM Gati Shakti is the transformative digital and institutional platform launched to ensure coordinated and cost-efficient execution of projects, including those under the NIP. The plan integrates approximately 16 Central Ministries onto a single GIS-based system, allowing for synchronized planning and real-time monitoring of infrastructure development. Its core goal is to break down bureaucratic silos, reduce logistics costs (which are high compared to global averages), and enhance multimodal connectivity (roads, rail, ports, and air), thereby addressing critical implementation delays and boosting the global competitiveness of Indian businesses.
Follow the full report here: https://www.oecd.org/content/dam/oecd/en/publications/reports/2025/09/addressing-legal-and-regulatory-barriers-to-quality-infrastructure-investment-in-india-indonesia-and-the-philippines_5da3c29b/fb81e1be-en.pdf