National Bank for Agriculture and Rural Development (NABARD) unveiled its Climate Strategy 2030 document on the occasion of Earth Day.

A media statement said this comprehensive strategy aims to address India’s escalating need for green financing.

Despite the pressing demand, where India requires approximately $170 billion annually to reach a cumulative total of over $2.5 trillion by 2030, current green finance inflows are critically insufficient. As of 2019-20, India garnered about $49 billion in green financing. With the majority of funds earmarked for mitigation, only $5 billion was allocated towards adaptation and resilience, reflecting the minimal private sector engagement in these areas due to challenges in bankability and commercial viability.

The statement said NABARD’s Climate Strategy 2030 is structured around four key pillars to address this demand. The pillars are: accelerating green lending across sectors, playing a broader market-making role, internal green transformation of NABARD and strategic resource mobilisation.

It said that this strategic initiative not only reinforces NABARD’s commitment to environmental stewardship but also positions it as a pivotal player in India’s transition towards a resilient and sustainable economy.

Shaji KV, Chairman of NABARD, released the document, it added.

Published on April 23, 2024