NABARD Launches Climate Strategy 2030 for Green Financing

April 24, 2024

The National Bank for Agriculture and Rural Development (NABARD) unveiled its Climate Strategy 2030 document on Earth Day to address India’s growing need for green financing. The strategy aims to mobilize resources for climate change mitigation, adaptation, and resilience projects in the country.

India’s Green Financing Gap

India requires approximately $170 billion annually to reach a cumulative total of over $2.5 trillion by 2030 for green financing.
As of 2019-20, India garnered only about $49 billion in green financing, with the majority of funds earmarked for mitigation.
A mere $5 billion was allocated towards adaptation and resilience, reflecting minimal private sector engagement due to challenges in bankability and commercial viability.

About NABARD’s Climate Strategy 2030

The strategy is structured around four key pillars:

Accelerating green lending across sectors
Playing a broader market-making role
Internal green transformation of NABARD
Strategic resource mobilization

The initiative reinforces NABARD’s commitment to environmental stewardship and positions it as a pivotal player in India’s transition towards a resilient and sustainable economy.

Real Estate Developers’ Sustainable Practices

Leading real estate developers have pledged for sustainable development practices.
DLF, the only Indian real estate company featured in the Dow Jones Sustainability Index for the past three years, has implemented practices such as zero-discharge water systems and sewage treatment plants, recycling millions of liters of water daily.
Signature Global (India) Ltd. has majority of its projects either EDGE certified or IGBC gold-rated, saving around 52% of water usage through low-flow water faucets, toilets, rainwater harvesting systems, and wastewater treatment and reuse facilities.

Remsons Industries’ ESG Excellence

Remsons Industries Ltd., an auto ancillary manufacturer, received Gold Medal in the Ecovadis Sustainability Assessment, recognizing it as one of the top 5% of all evaluated companies globally for its commitment to environmental, social, and governance (ESG) excellence.
The company showcased exemplary performance in key areas such as Environment, Labour and Human Rights, Ethics, and Sustainable Procurement.

About India’s efforts to sustainable Environment

India is the world’s third-largest emitter of greenhouse gases, after China and the United States.
The country has set an ambitious target of achieving 175 GW of renewable energy capacity by 2022 and 450 GW by 2030.
India’s Nationally Determined Contribution (NDC) under the Paris Agreement includes reducing the emissions intensity of its GDP by 33-35% by 2030 from the 2005 level.
The Indian government has launched several initiatives to promote green financing, such as the Partial Credit Guarantee Scheme for NBFCs, the Green Climate Fund, and the National Adaptation Fund for Climate Change.

This is a significant step towards mobilizing green financing in India and helping the country meet its climate change commitments.

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