India’s climate finance is a crucial element in bridging the gap between ambitious green commitments and the practical steps needed to fund them.
India aims to achieve net-zero emissions by 2070 and to establish 500 gigawatts (GW) of non-fossil energy capacity by 2030. Currently, about half of its energy mix comes from non-fossil sources, mainly solar and wind. While this is promising, experts warn that investment levels still fall short of what’s necessary to fulfill these goals.
Significant financial investments are essential. Recent studies indicate that India may require around $10.1 trillion in climate investments to stay on track for net zero by 2070. Although domestic financing for clean energy has been substantial, estimates suggest that tens of lakh crore rupees are still required by 2030 to achieve the 500 GW target. Experts are calling for broader budget reforms, focusing on practical solutions like credit guarantees and green financial structures.
Renewable energy growth faces challenges, particularly with energy storage and grid infrastructure. In some areas, as much as 10% of green electricity goes unused because of grid limitations during peak hours. Current battery storage systems also lag far behind requirements, which can hinder solar and wind energy’s effectiveness. Analysts assert that without stronger funding for infrastructure improvements, many renewable initiatives will not reach their full potential.
Looking ahead to Budget 2026, there are calls for a comprehensive climate finance strategy. Think tanks and industry representatives emphasize the need for clear regulations around green finance and the establishment of green financial institutions. Unlocking private and international investment could be key to making India’s climate journey a robust growth opportunity. If the government does not act, the progress in clean energy could slow, especially as global climate discourse becomes increasingly complex.
In this rapidly changing landscape, many on social media are discussing India’s climate actions, expressing both hope and skepticism. Surveys show that a significant number of Indians are aware of climate issues but also concerned about how they will be financed.
For further reading on global climate finance trends, you can check out reports from the World Bank.
