India's ambitious goal of achieving 500 GW of renewable energy by 2030 necessitates an investment infusion of around Rs 33 lakh crore. To bridge the financing gap in the sector, policymakers are considering the Renewable Energy Financing Obligation (REFO). This mechanism proposes that financial institutions allocate a fixed percentage of their lending portfolios to renewable energy projects, including solar, wind, green hydrogen, and energy storage. The Union Minister for New & Renewable Energy emphasizes the urgency of REFO, highlighting the need for innovative financing models and flexible lending terms. The potential impact of REFO is significant, with the mechanism aiming to lower borrowing costs for renewable projects, making them more competitive than fossil fuels. By shifting the burden of financing to private institutions, REFO could stimulate market-driven growth and attract long-term investors. The blueprint for REFO prioritizes lending for strategic renewable segments and includes measures to streamline loan approval processes and expand the use of financial instruments like green bonds. Despite its promise, REFO faces challenges such as potential financial burdens on institutions, concerns about efficient fund allocation, and the need for stringent enforcement. Global experiences provide insights for refining REFO, emphasizing the importance of careful policy design and enforcement. Ultimately, REFO represents a bold step towards closing India's financing gap and unlocking dormant capital for renewable projects. If implemented effectively, this mechanism could play a vital role in India's clean energy transition, paving the way for a sustainable, low-carbon future. However, challenges remain, including the adaptation of India's financial sector and the need for clear regulations to ensure the success of REFO.