In a recent speech, India’s Environment Minister Bhupender Yadav emphasized that green finance is now a vital part of our economy. It’s not just a trend; it’s essential for building strong, competitive markets. He noted that India’s shift towards a greener future will require significant investment.
Despite global green investments hitting over $1.8 trillion in 2023, emerging economies like India have received less than 25% of that funding. This gap could hinder crucial climate commitments when global emissions need reducing.
“Green finance means restructuring investments so they support sustainability,” Yadav explained at the Ficci Leads 2025 conference. He stressed that everyone—governments, industries, and citizens—must work together to address climate change while promoting economic growth.
Investments in solar, wind, and green hydrogen could create millions of jobs and boost India’s energy independence. Agarwal from Ficci highlighted how Indian companies are already using green bonds to fund solar parks and build recycling systems, showing that profit can coexist with sustainability.
India’s sovereign green bonds have drawn international interest, but Yadav warned that public money alone isn’t enough. “The role of public budgets is to reduce risks and attract private capital,” he stated.
Under Prime Minister Narendra Modi, India is taking a three-part approach: treating climate finance as development finance, positioning early green investors advantageously, and urging developed nations to increase their financial support to developing countries.
A significant part of this strategy is the recently updated Green Credit Programme. Launched in October 2023, it promotes private investment in climate initiatives through clearer restoration commitments.
Innovative financing methods, like financial technology and AI, could make green investments more effective and transparent. As the world shifts towards a greener economy, India’s steps in this direction could set a powerful example.
For further reading, you can check the United Nations Framework Convention on Climate Change for guidelines on international climate action efforts.
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green finance, climate change, sustainable agriculture, solar power, green bonds, Ficci, Bhupender Yadav, renewable energy
