NEW DELHI: Bhupender Yadav, Union Minister for Environment, Forests, and Climate Change, said finance is the make-or-break issue for climate action in the Global South, enabling them to undergo a just transition.
He quoted UNEP Executive Director, Inger Andersen in the address.The Minister emphasised that the future of economic development hinges on aligning growth and profits with sustainability, ensuring that both people and ecosystems are integral to this progress.
“The pathway to building economies of the future rests on aligning progress and profits with sustainability, with people and ecosystems placed at the centre of growth,” said Yadav in his speech on “Collaborations for Growth in a Transformative World” at the FICCI’s event.
He stressed that collaborative growth among governments, industry, regulators, global financial institutions, and citizens is key to meeting the challenge of climate change while ensuring inclusive economic development.
He emphasised that green finance is not to be seen as a niche intervention but as the backbone of competitive and resilient economies.
Green financing, he stressed, must form economic systems in which growth is interwoven with ecological well-being and the health of communities.
“It involves restructuring of capital flows so that every investment—in infrastructure, agriculture, transport, or industry—not only yields economic returns but simultaneously strengthens sustainability,” said Yadav.
The Government of India has taken a series of steps to promote green investment like the issuance of sovereign green bonds.
Further, regulators such as the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI) are also intensifying action to promote responsible disclosure, accountability and transparency in green instruments, thereby ensuring long-term trust and stability in the sector.
Alongside, India is fostering blended finance mechanisms that leverage public money to de-risk and accelerate private investment in renewable energy, energy efficiency, electric mobility, waste-to-wealth and nature-based solutions.
“Given that India will require over USD 10 trillion by 2070 for achieving its net zero ambitions, such mechanisms are vital,” said Yadav.
He also cited that developed countries, which are responsible for the current crisis, are inadequately providing funds to developing nations to carry out climate action.
“Developed countries bear a moral responsibility to support the global South, observing that the UNFCCC process target of USD 300 billion by 2035 is inadequate and does not reflect the scale of the challenge,” said Yadav.
Yadav also highlighted the recently revised methodology of India’s Green Credit Programme.
“Revised rules introduced new elements including direct participation by private entities, mandatory minimum restoration commitments and greater scope for utilisation of credits,” said Yadav.