Undertaken By: Multiple, Recent Publication: 2019
India’s transition towards low-carbon economic development requires capital inflow at scale. There is a need for the structural transformation of financial policy and regulations to help direct capital towards green economic activities. This is particularly pertinent as India crafts out pathways to meet its Nationally Determined Contributions (NDC). India needs additional capital of US$ 1.8 trillion, amounting to an average of ~US$ 160 billion annually, in order to achieve only its adaptation and mitigation targets by 2030. To underline the scale of financing required, it is worth noting that India’s GDP stood at US$ 2.6 trillion for 2017. In stark comparison, the climate financing in India in 2016 was only around US$ 14.4 billion (with more than three-fourths of this being directed towards renewable energy). Thus there is an urgent need to drive large sums of capital from private and public sources into climate positive or ‘green sectors’.