Unlocking Private Sector Investment into Natural Climate Solutions in India

The report finds that while 86% of surveyed Indian companies recognize a business case for natural climate solutions (NCS), investments remain largely small-scale and driven by corporate social responsibility (CSR) budgets. Significant barriers include a lack of standardized monitoring methodologies, land ownership complexities, and regulatory ambiguity. However, over 90% of respondents plan to increase NCS investments over the next five years, particularly if the government provides clear guidelines on the Green Credit Programme and carbon credit ownership.

• There is a substantial funding gap for natural climate solutions in India; the forestry sector alone is projected to have a funding gap of $161.9 billion (₹13,500 billion) by 2030.
• A survey of 56 large Indian companies shows a strong commitment to sustainability, with 89% having a sustainability strategy and 70% integrating NCS into their corporate commitments.
• While 86% of respondents agree there is a business case for NCS, most investments are small-scale (under $1 million) and primarily funded through corporate social responsibility (CSR) budgets (62%).
• The primary drivers for corporate NCS investment are carbon sequestration for net-zero goals (73%), improving brand reputation (64%), and elevating ESG ratings (64%).
• Companies face significant implementation barriers, most notably the absence of standardized monitoring and reporting methodologies (71%), land ownership complexities (55%), and a lack of site-specific information (53%).
• The most significant barrier to scaling up investment is the lack of a clear regulatory framework and the complexity of existing regulations, cited by 71% of respondents.
• Despite challenges, over 90% of surveyed companies plan to increase their NCS investments over the next five years, with 54% planning to start or increase the purchase of forest carbon credits.
• Corporate appetite for increased investment is strongly linked to the need for clear guidelines on the Indian government's Green Credit Programme (79%) and clarity on the issuance and transfer of carbon credits (75%).
• Current regulations in India generally prevent companies from claiming carbon credits for mandated activities such as those under CAMPA or green belt regulations, or for projects funded via CSR.

APA

World Economic Forum (2024). Unlocking Private Sector Investment into Natural Climate Solutions in India. https://www3.weforum.org/docs/WEF_Unlocking_Private_Sector_Investment_into_Natural_Climate_Solutions_in_India_2024.pdf

Chicago

World Economic Forum. Unlocking Private Sector Investment into Natural Climate Solutions in India. 2024. https://www3.weforum.org/docs/WEF_Unlocking_Private_Sector_Investment_into_Natural_Climate_Solutions_in_India_2024.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Unlocking Private Sector Investment into Natural Climate Solutions in India |date=July 2024 |url=https://www3.weforum.org/docs/WEF_Unlocking_Private_Sector_Investment_into_Natural_Climate_Solutions_in_India_2024.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2024unlocking, author = {{World Economic Forum}}, title = {{Unlocking Private Sector Investment into Natural Climate Solutions in India}}, institution = {World Economic Forum}, year = {2024}, month = jul, url = {https://www3.weforum.org/docs/WEF_Unlocking_Private_Sector_Investment_into_Natural_Climate_Solutions_in_India_2024.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }