Green Financing:
The National Bank for Agriculture and Rural Development (NABARD) unveiled its Climate Strategy 2030 document on Earth Day to address India’s growing need for green financing.
- The strategy aims to mobilize resources for climate change mitigation, adaptation, and resilience projects in the country.
- India requires approximately $170 billion annually to reach a cumulative total of over $2.5 trillion by 2030 for green financing.
- As of 2019-20, India garnered only about $49 billion in green financing, with the majority of funds earmarked for mitigation.
- A mere $5 billion was allocated towards adaptation and resilience, reflecting minimal private sector engagement due to challenges in bankability and commercial viability.
- NABARD’s Climate Strategy 2030: The strategy is structured around four key pillars:
- Accelerating green lending across sectors
- Playing a broader market-making role
- Internal green transformation of NABARD
- Strategic resource mobilization
- The initiative reinforces NABARD’s commitment to environmental stewardship and positions it as a pivotal player in India’s transition towards a resilient and sustainable economy.
