India Needs $1.3 Tn By 2030 To Meet Climate Goals: Report
India needs $1.3 trillion by 2030 to fund green and social projects essential for meeting its long-term climate and development goals, according to a report by MUFG and the Climate Bonds Initiative.
India will need an investment of $1.3 trillion (Rs108 lakh crore) by 2030 to work on its big climate project and development goals, according to MUFG Bank and the Climate Bonds Initiative (CBI) report. The projects that focus on protecting the environment, helping society, and supporting overall sustainable development.
The report says that this investment is very important if India wants to move toward clean energy, reduce pollution, build eco-friendly infrastructure, and support people’s health, education, and housing, target set for 2070.
The report also highlights that India is not investing enough money on important areas of ESG (Environmental, Social, and Governance) when compared with global benchmarks. To make a huge progress, India will need major financial support in areas like clean energy, green buildings, sustainable transportation, waste management, and social infrastructure.
Estimation of $1.3 trillion that India will require, out of which $1 trillion will be required for green projects like renewable energy, energy efficiency, and low-carbon infrastructure. The remaining amount will be used for social projects such as affordable housing, education, and healthcare. Overall, the money will be used to fight climate change and rest will be used in improving people’s quality of life.
To raise a huge amount of money, India needs for green and social development, the report suggests that India must create a clear ESG taxonomy which is like a rulebook which counts as a green activity. It will make easier for investors to know which projects really help environment and society. Also, grow the green bond market, a special loan that raise money for eco-friendly projects. This will help companies and government in getting funds for their projects.
Currently, India makes up only 0.7% of global green bond issuances, despite being one of the world’s largest economies and a rapidly growing emitter of greenhouse gases. As India ramps up its climate commitments, including tighter regulations from SEBI on sustainability-linked bonds and corporate ESG disclosures, access to climate-aligned capital is becoming more important than ever.
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