India at CoP-29: Push for climate finance and strengthen domestic sources

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Subscribe to enjoy similar stories. As CoP-29 reaches its final phase of talks in Baku, Azerbaijan, the focus on climate finance has intensified, underscoring its importance for developing economies like India. India’s transition to a low-carbon economy is more than just a national challenge; it is a global imperative.

Climate finance pledges are essential to enabling developing economies to harness their potential as clean energy powerhouses. With the right actions, India can not only accelerate its clean energy transition but also set a global benchmark for sustainable growth. India’s initial Nationally Determined Contributions (NDCs) projected a requirement of $2.5 trillion as climate financing between 2015 and 2030, or about $170 billion annually.

The current capital flow covers only 25% of this requirement. As CoP-29 enters its final stretch, India has amplified its push for grant-based, long-term climate finance under the New Collective Quantified Goal (NCQG). Representing like-minded developing countries (LMDCs), India reiterated its call for developed nations to commit to providing at least $1.3 trillion annually through 2030.

In this context, India needs to adopt a dual approach: attract international capital and prepare its domestic financial markets to redirect local capital toward climate-aligned investments. This strategy supports India’s 2070 net-zero goal and delivers significant economic and environmental benefits across sectors. At the heart of this effort lies India’s domestic financial sector, particularly its banks, which are the largest source of climate finance outside of the government.