Climate change is increasingly recognised as a material financial risk, impacting banks, investors, and markets through physical and transition risks. Regulators like the RBI are introducing frameworks for disclosure, risk management, and governance to enhance financial stability. While awareness among investors is growing, bridging the gap between recognition and action—through metrics, transition plans, and green investments—is critical to building a resilient, sustainable, and net-zero aligned financial system.
Click to View MoreIndia is developing a Climate Finance Taxonomy to guide sustainable investments and bridge a $170 billion annual climate finance gap by 2030. A CSEP report emphasizes that the taxonomy must be practical, inclusive, and aligned with domestic priorities while remaining credible to global investors. Key recommendations include supporting MSMEs, integrating adaptation finance, promoting indigenous innovations, and ensuring coordination between RBI, SEBI, and the Ministry of Finance. The framework should be dynamic, evolving with technology and market needs to effectively channel finance toward India’s real climate goals.
Click to View MoreThe ICIMOD report highlights the HKH region’s vast 3.5 TW renewable potential, with only 6.1% utilized. Fossil fuel dependence, climate risks, and policy gaps hinder progress. India can lead by boosting investment, regional cooperation, and resilient projects, advancing sustainable growth, energy security, and climate commitments across South Asia.
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