A new report by Climate Policy Initiative (CPI) shows that green finance flows in India averaged at around Rs 124 thousand crore (US$ 19 billion) for FY 2016-17 and FY 2017-18. This is an estimated 10% of US$ 170 billion required annually for India to finance its climate actions across sectors as per its nationally determined contributions.
The annual tracked investment increased from Rs 111 thousand crore (US$ 17 billion) in FY2017 to Rs 137 thousand crore (US$ 21 billion) in FY 2018, aggregating to Rs 248 thousand crore (US$ 38 billion) for the period 2016-18.
The report said while India’s gross domestic product (GDP) grew at an average rate of 7.2% between 2016-17 and 2017-18, the tracked investments suggested an increase of 24%. This indicates that investments in green sectors such as renewable energy, energy efficiency, and low-carbon transport can drive the country’s economic growth.
The CPI report, supported by the Shakti Sustainable Energy Foundation, titled ‘Landscape of Green Finance in India’, presents a comprehensive study on green finance in India.
The report said 85% of the finance during the period 2016-18 was raised domestically, indicating a strong domestic preference.
Out of the Rs 248 thousand crore (USD 38 billion) for the period 2016-18, domestic private investors contributed the largest share of about Rs 139 thousand crore, though debt (63%) and equity (51%). Commercial financial institutions accounted for 40% of these funds. Nearly all the funds were directed towards renewable energy development in the country.
Domestic public finance by the government and its agencies totaled Rs 71 thousand crore (US$ 9 billion) for the two years. Expenditure on Government of India initiatives, including climate-related mitigation activities undertaken by the dedicated public sector undertakings, more than doubled from FY 2017 to FY 2018, while the budgetary allocations increased by 36%.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: firstname.lastname@example.org.