NABARD Unveils Climate Strategy 2030 To Bridge Green Financing Gap In India

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India’s National Bank for Agriculture and Rural Development (NABARD) has made a significant leap towards a greener future with the launch of its Climate Strategy 2030. This comprehensive plan unveiled on Earth Day by NABARD Chairman Shri Shaji K V aims to tackle the nation’s growing need for sustainable financing.
Climate Strategy

The urgency is clear. India requires an estimated US$170 billion annually to achieve a cumulative total of over US$2.5 trillion by 2030 for climate-friendly initiatives. However, current green finance inflows fall drastically short. In 2019-20, India secured only US$49 billion, highlighting the substantial gap that needs to be bridged.

Furthermore, the available funds are primarily directed towards mitigating climate change impacts. A mere US$5 billion was allocated for adaptation and resilience efforts, indicating the limited participation of the private sector in these crucial areas. This can be attributed to challenges in making such projects financially viable for banks.

NABARD’s Climate Strategy 2030 is a four-pronged approach designed to address these issues. The strategy focuses on:

  1. Accelerating Green Lending Across Sectors: This pillar aims to increase the flow of funds towards sustainable projects in agriculture, renewable energy, and other sectors.
  2. Playing a Broader Market-Making Role: NABARD will work to create a more robust market ecosystem for green financing by facilitating partnerships and developing innovative financial instruments.
  3. Internal Green Transformation of NABARD: The bank itself will undergo a green transformation, aligning its internal operations with best environmental practices.
  4. Strategic Resource Mobilization: NABARD will explore ways to attract additional resources from domestic and international sources to support its climate goals.

This strategic initiative not only strengthens NABARD’s commitment to environmental responsibility but also positions it as a key driver in India’s transition to a sustainable and climate-resilient economy.

Reference- NABARD website, PR Agency Release, Mercom India, Business Standard