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NABARD’s Climate Strategy 2030


Why is it in the news?

  • NABARD unveiled its Climate Strategy 2030 document aimed at addressing India’s need for green financing.

 

Key Pillars of NABARD’s Climate Strategy 2030

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

 

About Green Financing

·        Green finance encompasses structured financial activities designed to promote better environmental outcomes.

·        It involves increasing financial flows from various sectors (banking, micro-credit, insurance, investment) towards sustainable development priorities.

Objectives:

·        Better management of environmental and social risks.

·        Pursuit of opportunities that offer both a decent rate of return and environmental benefits.

·        Delivery of greater accountability in financial activities.

Significance:

·        Promotion through regulatory framework changes and harmonizing public financial incentives.

·        Increased green financing from different sectors.

·        Alignment of public sector financing with environmental dimensions of Sustainable Development Goals.

·        Investment in clean and green technologies.

·        Financing for sustainable natural resource-based green economies and climate-smart blue economies.

·        Increased utilization of green bonds.

 

Current Scenario in India

·        India received approximately $49 billion in green financing in 2019-20, which is significantly below the required amount.

·        India needs approximately $170 billion annually to achieve a cumulative total of over $2.5 trillion by 2030, highlighting the critical insufficiency of current green finance inflows.

 

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