Introduction: On World Earth Day, April 22, 2024, the National Bank for Agriculture and Rural Development (NABARD) released its Climate Strategy 2030 document. The document was unveiled by Shaji K.V., Chairman of NABARD, with the primary objective of promoting and enhancing green financing in India.
Key Points:
- Green Financing Needs: To achieve a cumulative total of over USD 2.5 trillion by 2030, India needs an estimated USD 170 billion annually. Current green finance inflows are insufficient to meet this target.
- Current Inflows: As of 2019-20, India received around USD 49 billion in green financing, significantly short of the required amount.
- Private Sector Engagement: Only USD 5 billion was allocated towards adaptation and resilience efforts, highlighting the limited involvement of the private sector due to challenges in bankability and commercial viability.
Key Pillars of Climate Strategy 2030:
- Accelerating Green Lending Across Sectors: Enhance lending to various sectors to promote green initiatives.
- Playing a Broader Market-Making Role: Facilitate the development and growth of the green finance market.
- Internal Green Transformation of NABARD: Implement green practices within NABARD’s operations.
- Strategic Resource Mobilisation: Mobilize resources strategically to support green financing.
About NABARD:
- Establishment: Established under the NABARD Act, 1981, and operational since 1982.
- Jurisdiction: Operates under the Department of Financial Services (DFS), Ministry of Finance.
- Headquarters: Mumbai, Maharashtra
- Chairman: Shaji K.V.
Conclusion: NABARD’s Climate Strategy 2030 aims to significantly boost green financing in India by addressing the critical need for increased financial flows to support climate adaptation, resilience, and sustainable development efforts.
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