Green financing in India rises to $82 billion, but flows mostly to established sectors: Report
The Landscape of Green Finance in India, now in its fourth edition, maps actual finance flows or disbursements across sources, instruments, sectors, and subsectors for financial years 2022-23 and 2023-24. According to the report, while green finance has increased substantially between 2016-17 and 2023-24, financial flows remain concentrated in established sectors and technologies.
New Delhi: Green finance in India has surged to $82 billion, yet most of this investment remains focused on well-established sectors, according to a recent report. The Landscape of Green Finance in India, a fourth edition assessment, highlights that private capital now surpasses public funds, accounting for 68% of domestic green finance in 2023-24.
The report reveals that while total green finance has grown from $50 billion in 2021-22 to $81.9 billion in 2023-24, most of this funding remains concentrated in sectors like renewable energy, energy efficiency, clean transportation, and electric vehicles. Clean energy projects, comprising over half of the tracked mitigation finance at $41.4 billion, lead this sector-specific investment.
Energy efficiency projects garnered the next highest share at 31%, with clean transportation accounting for 18% of the mitigation funds. To stimulate investment in emerging technologies and sectors, the report suggests the establishment of a comprehensive knowledge hub, providing financiers with crucial information about the risks and returns associated with lending to less-established technologies.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
