ABSTRACT
As of 2024, projections indicate a staggering expenditure of approximately INR 162.5 lakh crores (USD 2.5 trillion) from 2015 to 2030, translating to an annual average of around INR 11 lakh crores (USD 170 billion) to fulfil India’s Nationally Determined Contributions (NDC). In the fiscal years 2019 and 2020, a sum of USD 44 billion was raised, with approximately 85% of this funding, nearly USD 37 billion, sourced domestically. India’s internal fund mobilisation exceeds the combined funding from the UN’s Green Climate Fund (GCF) and the Global Environment Facility (GEF). Despite receiving grants totalling USD 165.25 million from the GCF and GEF, India’s domestic mobilisation amounts to USD 1.374 billion, highlighting a ratio 8.3 times higher than the grants provided by the GCF and GEF. International climate finance allocated to India remains disproportionately focused on mitigation rather than adaptation. It also tends to be in the form of concessional loans rather than grants (Third Biennial Report, 2021). The biennial report stressed the importance of this finance being accompanied by cofinancing generated internally by India, often through public funding.
This chapter will delve into India’s current pathways to net zero, focusing on financing challenges. It will also map the current green finance channels available domestically and internationally.
