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Editorials · 05 June 2026 · Indian Economy

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05 June 2026

GS-3Editorials05 Jun 2026thehindu.com

Charting India’s renewable future

The article highlights India's significant progress in renewable energy, particularly solar and wind power, becoming a global leader in clean energy transition. It details the rapid increase in installed capacities, key policy initiatives like solar parks and PLI schemes, and the strategic importance of wind energy. The analysis also addresses the critical challenge of intermittency in renewable supply and the government's strategic shift towards prioritizing grid stability and energy storage solutions (BESS and PSP). It outlines future storage requirements and long-term planning targets, emphasizing a balanced approach to expand clean energy while ensuring grid resilience and energy security.

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GS-3Editorials05 Jun 2026thehindu.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.

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