Green finance the backbone of resilient economies, says Bhupender Yadav, Minister of Environmental Affairs

New -delhi: Bhupender Yadav of India’s environment, forest and climate change, said Thursday that Green Finance – investments aimed at projects or companies that have a positive environmental impact – were no longer a nis sector as it now forms the ‘backlog of resilient, competitive economies’. He acknowledged that India’s climate transition would demand great financing. Harssha Vardhan Agarwal, who emphasizes the Green Finance Gap, Federation of Indian Chambers of Commerce & Industry (Ficci) President Harsha Vardhan Agarwal, said global Green Investments crossed $ 1.8 billion in 2023. This financing gap threatens to undermine the climate obligations of developing countries at a critical time for reducing global emissions. “Green financing is about restructuring the flow of capital, so that every investment in infrastructure, industry, transport or agriculture contributes to sustainability rather than undermining it,” the Minister of Environment on Ficci’s lead 2025 said. He said that a collaborative effort between governments, industries, regulators, global financial institutions and citizens is key to facing the challenge of climate change, while ensuring inclusive economic development. Yadav said Green Finance will play an important role in unlocking investments in sectors such as solar and wind power, green hydrogen, sustainable agriculture and an infrastructure for climate freedom. These areas have the potential to generate millions of jobs, strengthen competitiveness and secure India’s energy future, he added. On this, Ficci’s agarwal noted that Indian businesses are already using ‘green bonds to finance solar parks in Rajasthan and build advanced recycling ecosystems in car supply chains, proving that profitability and sustainability can thrive together. According to Yadav, India has already shown strong investor confidence through its Sovereign Green Bonds program, which has attracted significant international investments. However, he added that public funding alone cannot face the challenge. “The fiscal space is stiff,” he said. “The role of public budgets and concession finances is to venture, set and set rules that unlock private capital.” The minister set out India’s triple approach under Prime Minister Narendra Modi’s leadership: to treat climate financing as development financing, position early green investors to possess tomorrow’s value chains, and acknowledge that developed countries should significantly increase their financial commitments to developing countries. Central to the Strategy of India is the recently revised Green Credit program launched in October 2023. The updated methodology, which was notified on August 29, sets direct participation through private entities and minimum recovery obligations, which aim to mobilize private climate action capital. The program represents part of India’s broader pushing beyond the implementation of Article 6 of the Paris agreement that enables international collaboration in carbon markets. Yadav also emphasized the role of innovation in financing and emphasizes that financial technology, digital platforms and ai-led approaches can make green financing more efficient, transparent and scalable.