Green finance backbone of resilient economies, says Bhupender Yadav

Union Environment Minister Bhupender Yadav on Thursday said green finance is the “backbone of resilient and competitive economies” and called for greater collaboration between governments, industry and financial institutions to tackle climate change while ensuring inclusive growth.

Addressing the 4th edition of The Federation of Indian Chambers of Commerce and Industry (FICCI)’s LEADS, Yadav said financing the green transition is not just an economic challenge but also a moral responsibility towards future generations. “Failing to finance green transition is a moral failure,” he cautioned.

He highlighted the confidence global investors have shown in India’s green growth potential, citing the country’s successful issuance of sovereign green bonds. Regulators such as the Reserve Bank of India and SEBI are also stepping up efforts to promote accountability and transparency in green financial instruments, he said.

The minister underlined that operationalising Article 6 of the Paris Agreement was critical to unlocking billions in climate finance through transparent carbon markets. Such mechanisms, he noted, would help accelerate emission reductions while enabling countries like India to access finance and technology.

Yadav also spoke about the government’s Green Credit Programme, launched in 2023, saying a revised methodology notified last month would enable direct participation of private entities, mandatory eco-restoration commitments and measurable outcomes on the ground.

India, he said, would require over USD 10 trillion by 2070 to achieve its net-zero targets. “Those countries which mobilise green investments today will dominate the future value chains of industry and trade,” Yadav said, stressing that developed nations must do more to support the Global South.

He added that green finance will be crucial in unlocking investments in renewable energy, green hydrogen, sustainable agriculture, circular economy and resilient infrastructure, sectors that hold the potential to generate millions of jobs and secure India’s energy future.