India's Green Financial Leap: Bridging the Climate Funding Gap

The Indian government plans to establish a National Green Financing Institution to support its net-zero target by 2070. Addressing low finance flows for climate initiatives, NITI Aayog suggests creating this institution to pool green capital and lower costs, exploring structural models and international best practices.

The push towards environmental sustainability is shaping India's financial landscape with the proposed establishment of a National Green Financing Institution. According to NITI Aayog, the move aims to address the significant shortfall in current climate funding as the nation targets net-zero emissions by 2070.

This institution is envisioned to serve as a critical aggregator of green capital from diverse sources, ultimately reducing capital costs for climate initiatives. NITI Aayog's report for 2024-25 highlights the strategic goal of bridging the financing gap through innovative models inspired by successful Green Banks globally.

Linked to India's commitments under the UNFCCC, the country aims for a 45% GDP emission intensity reduction by 2030 and a shift to 50% non-fossil electric power capacity, among other ecological targets such as creating a substantial carbon sink through increased forest cover.

(With inputs from agencies.)