Landscape of Green Finance in India

India's tracked green finance for mitigation reached INR 3,712 billion (USD 50 billion) per annum in FY 2021/22, a 20% increase from 2019/20. However, this represents only approximately 30% of the annual finance needed to meet the country's Nationally Determined Contributions (NDC). Mitigation finance is primarily domestic (83%), with clean energy receiving the largest share (47%). Adaptation finance saw a nearly threefold increase to INR 1,092 billion (USD 15 billion) per year, dominated by government budgetary expenditure (98%) and focused on disaster risk management. The report highlights significant investment gaps, particularly in electric vehicles and on-farm agricultural adaptation, and recommends the development of a green finance taxonomy and enhanced private sector mobilization.

• Tracked green finance for mitigation sectors in India reached an annual average of INR 3,712 billion (USD 50 billion) in FY 2021/22, marking a 20% increase from the INR 3,093 billion (USD 44 billion) recorded in FY 2019/20.
• Current mitigation finance is insufficient to meet India's climate goals, covering only about 30% of the estimated annual requirement of INR 11 trillion (USD 170 billion) needed to achieve its Nationally Determined Contributions (NDC).
• Domestic sources provided 83% of mitigation finance in 2021/22. Within domestic flows, the private sector contributed 66% (INR 2,048 billion), while public sources accounted for 34% (INR 1,045 billion).
• Clean energy was the largest recipient of mitigation finance at 47% of total flows, with solar projects attracting the most investment at INR 947 billion (USD 13 billion), a 75% increase from 2019/20.
• Clean transportation finance reached INR 657 billion (USD 9 billion) per year in 2021/22, with public sources providing nearly 90% of the funding. Mass rapid transit systems (MRTS) received the largest share at 78% of the sector's finance.
• Energy efficiency finance increased to INR 1,287 billion (USD 17.3 billion) per annum in 2021/22, with 95% of the funding coming from private sources, primarily commercial financial institutions.
• Finance for adaptation-related sectors rose nearly threefold to INR 1,092 billion (USD 15 billion) per year in 2021/22. This growth was driven by increased government spending on disaster risk management and the first-time tracking of on-farm agricultural adaptation.
• Adaptation finance is overwhelmingly public, with domestic sources (mainly government budgets) accounting for 98% of the total in 2021/22. Disaster risk management received the highest share of adaptation funds at 42% (INR 461 billion).
• On-farm adaptation-related agricultural activities received INR 265 billion (USD 3.6 billion) in 2021/22, with crop insurance receiving the largest share (58%) of these funds.
• Debt was the primary financial instrument for mitigation, accounting for 50% (INR 1,860 billion) of total finance, followed by equity at 29% and government budgetary expenditure at 16%.

APA

Chakravarty, M., Pal, U., Kaur, J., Samal, A. K., Sikka, A., & Sen, V. (2024). Landscape of Green Finance in India. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2024/12/Landscape-of-Green-Finance-in-India.pdf

Chicago

Chakravarty, Malini, Uma Pal, Jaspreet Kaur, Anup Kumar Samal, Aanandita Sikka, and Vivek Sen. Landscape of Green Finance in India. Climate Policy Initiative, 2024. https://www.climatepolicyinitiative.org/wp-content/uploads/2024/12/Landscape-of-Green-Finance-in-India.pdf.

Wikipedia

{{cite report |last1=Chakravarty |first1=Malini |last2=Pal |first2=Uma |last3=Kaur |first3=Jaspreet |last4=Samal |first4=Anup Kumar |last5=Sikka |first5=Aanandita |last6=Sen |first6=Vivek |title=Landscape of Green Finance in India |publisher=Climate Policy Initiative |date=December 2024 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2024/12/Landscape-of-Green-Finance-in-India.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{chakravarty2024landscape, author = {Chakravarty, Malini and Pal, Uma and Kaur, Jaspreet and Samal, Anup Kumar and Sikka, Aanandita and Sen, Vivek}, title = {{Landscape of Green Finance in India}}, institution = {Climate Policy Initiative}, year = {2024}, month = dec, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2024/12/Landscape-of-Green-Finance-in-India.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }