A Snapshot of Urban Green Finance in Two Indian Cities

The report analyzes urban green finance in Hyderabad and Kolkata, finding that both cities are heavily dependent on state and central government funding. While Hyderabad has made significant progress in renewable energy and electric mobility, and Kolkata has excelled in e-bus adoption and wetland conservation, both face governance challenges due to overlapping mandates and limited financial autonomy. The study recommends harmonized climate budgeting, increased devolution of funds to urban local bodies, and the exploration of innovative financing mechanisms like green bonds and resilience bonds to bridge investment gaps.

• State governments are the primary drivers of climate policy and finance in India, dominating the implementation and funding of urban climate projects more than city governments do.
• Urban local bodies (ULBs) in India lack sufficient technical and financial capacity and require more institutional support to align with national climate priorities and access innovative financing.
• Hyderabad has significantly expanded its renewable energy capacity, with total installed capacity growing from 35 MW in 2014 to 4,059 MW in 2019, with solar energy accounting for approximately 90% of this total.
• Hyderabad's investment in electric mobility saw a sharp increase between FY 2018 and FY 2019, rising from USD 1.1 million to USD 10.7 million, driven largely by the FAME-India scheme.
• Kolkata has made substantial progress in sustainable transport, aiming for a fleet of 5,000 e-buses by 2030 and winning a C40 Cities award in 2019 for its low-carbon commute transition.
• Kolkata struggles with renewable energy development due to a lack of clear mandates and poor coordination between state-level agencies and the city's lighting and electricity department.
• The East Kolkata Wetlands serve as a critical natural resource for the city, treating over 900 million liters of sewage daily and providing a buffer against urban flooding.
• Both case study cities exhibit governance challenges characterized by overlapping legislation and fragmented responsibilities among multiple administrative bodies.
• The COVID-19 pandemic negatively impacted the financial resources of urban transport systems, with Hyderabad Metro and Kolkata Metro losing approximately USD 140 million and USD 22 million in revenues respectively.
• There is a critical need for India to implement harmonized climate budgeting and for cities to explore value-capture financing, such as property taxes and land monetization, to reduce dependence on government grants.

APA

Jain, S., & Padmanabhi, R. (2021). A Snapshot of Urban Green Finance in Two Indian Cities. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2021/11/CCFLA-Indian-cities-report_FINAL-1.pdf

Chicago

Jain, Shreyans, and Rajashree Padmanabhi. A Snapshot of Urban Green Finance in Two Indian Cities. Climate Policy Initiative, 2021. https://www.climatepolicyinitiative.org/wp-content/uploads/2021/11/CCFLA-Indian-cities-report_FINAL-1.pdf.

Wikipedia

{{cite report |last1=Jain |first1=Shreyans |last2=Padmanabhi |first2=Rajashree |title=A Snapshot of Urban Green Finance in Two Indian Cities |publisher=Climate Policy Initiative |date=November 2021 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2021/11/CCFLA-Indian-cities-report_FINAL-1.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{jain2021snapshot, author = {Jain, Shreyans and Padmanabhi, Rajashree}, title = {{A Snapshot of Urban Green Finance in Two Indian Cities}}, institution = {Climate Policy Initiative}, year = {2021}, month = nov, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2021/11/CCFLA-Indian-cities-report_FINAL-1.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }