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Green Financing

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.