The Landscape of Green Finance in India

The report analyzes green finance in India for FY 2017-2018, finding that average annual flows of USD 19 billion are insufficient to meet national climate goals, representing only about 10% of the total requirement. Domestic private investors are the largest contributors, primarily funding renewable energy, while international public finance focuses heavily on sustainable transportation and solar projects. The study highlights a critical need for a harmonized green finance taxonomy and an integrated measurement, reporting, and verification (MRV) system to address significant data gaps and transparency issues.

• Green finance flows in India averaged INR 124 thousand crores (USD 19 billion) per year for FY 2017 and FY 2018, with totals of INR 111 thousand crores (USD 17 billion) in FY 2017 and INR 137 thousand crores (USD 21 billion) in FY 2018.
• Domestic private investors provided the largest share of green finance, contributing 63% in 2016-2017 and 51% in 2017-2018 of approximately INR 139 thousand crores, with 40% of these funds coming from commercial financial institutions and most directed toward renewable energy.
• The power generation sector is the primary recipient of green finance, accounting for nearly 80% of annual flows in 2017 and 2018, with solar PV and onshore wind power making up over 80% of that sector's finance.
• International public finance remained steady at 10% (INR 12 thousand crores) for both FY 2017 and FY 2018, with 56% of bilateral funds supporting sustainable transportation, specifically metro rail projects in Delhi (45%) and Mumbai (25%).
• Current tracked green finance in India is estimated to cover only 10% of the total requirement across sectors, suggesting that a 'business as usual' investment scenario will not bridge the finance gap.
• The study identifies several barriers to measuring green finance, including the lack of a harmonized green finance taxonomy, non-standardized reporting, and the absence of a climate-related financial disclosure policy.

APA

Climate Policy Initiative (2020). The Landscape of Green Finance in India. https://www.climatepolicyinitiative.org/publication/landscape-of-green-finance/

Chicago

Climate Policy Initiative. The Landscape of Green Finance in India. 2020. https://www.climatepolicyinitiative.org/publication/landscape-of-green-finance/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=The Landscape of Green Finance in India |date=9 September 2020 |url=https://www.climatepolicyinitiative.org/publication/landscape-of-green-finance/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2020landscape, author = {{Climate Policy Initiative}}, title = {{The Landscape of Green Finance in India}}, institution = {Climate Policy Initiative}, year = {2020}, month = sep, url = {https://www.climatepolicyinitiative.org/publication/landscape-of-green-finance/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }