Editorials thehindu.com

Funding India’s climate future, the trillion-dollar question’

The article highlights India's substantial climate finance requirements, estimated at $2.5 trillion by 2030 for Nationally Determined Contributions and $10.1 trillion by 2070 for net-zero emissions. It discusses the current state of green finance in India, including the issuance of green and sustainability-linked debt, and identifies key challenges such as the lack of a comprehensive climate finance taxonomy, guarantee architecture, and regulatory incentives. The article emphasizes the crucial role of the Reserve Bank of India (RBI) in mandating green finance through measures like integrating climate risks into lending, making green activities eligible for Priority Sector Lending (PSL), and proposing differentiated capital requirements. It also stresses the importance of a finalized Climate Finance Taxonomy, scaling sovereign green bond issuances, establishing a State Climate Finance Facility, and leveraging blended finance to mobilize capital at scale.