The UNEP State of Finance for Nature 2026 report highlights a severe global imbalance in environmental finance, revealing that more than $30 is spent on activities that harm nature for every $1 invested in protecting it. Nature-negative financial flows reached around $7.3 trillion annually, while funding for nature-based solutions (NbS) stood at only $220 billion. Harmful subsidies for fossil fuels, industrial agriculture, and resource-intensive sectors continue to dominate global spending patterns. Although investment in NbS has shown modest growth and some decline in fossil fuel financing is visible, progress remains far too slow. UNEP warns that NbS funding must rise to at least $571 billion per year by 2030 to meet global climate, biodiversity, and land restoration targets. Without redirecting financial systems toward nature-positive investments, the triple planetary crisis of climate change, biodiversity loss, and pollution will intensify.
Click to View MoreGreen industrialisation is an emerging development strategy that integrates climate action with industrial growth by promoting low-carbon, resource-efficient manufacturing. It recognises that achieving decarbonisation requires building domestic clean-technology capabilities, creating green jobs, and restructuring supply chains. For countries like India, green industrialisation offers a pathway to balance climate commitments with economic development, competitiveness, and inclusive growth, provided it is supported by coherent policies, adequate finance, and global cooperation.
Click to View MoreClimate 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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