NABARD Unveils Climate Strategy 2030 to Propel India’s Green Finance Agenda

Strategic initiative aims to address the nation’s pressing need for sustainable financing.

On the occasion of Earth Day, the National Bank for Agriculture and Rural Development (NABARD) marked a significant leap towards sustainable development by revealing its Climate Strategy 2030. The unveiling ceremony, graced by Shri Shaji K V, Chairman of NABARD, showcased a comprehensive blueprint aimed at tackling India’s mounting demand for green financing.

India finds itself at a critical juncture, requiring approximately US$ 170 billion annually to realize a cumulative total exceeding US$ 2.5 trillion by 2030. However, current green finance inflows fall woefully short of this imperative need. Figures from 2019-20 indicate a meager US$ 49 billion directed towards green financing, with a paltry US$ 5 billion allocated for adaptation and resilience efforts. This stark reality underscores the challenges hindering private sector engagement, primarily revolving around issues of bankability and commercial viability.

NABARD’s Climate Strategy 2030 is anchored on four pivotal pillars designed to bridge this gap:

  1. Accelerating Green Lending across sectors,
  2. Playing a broader Market-Making Role,
  3. Initiating Internal Green Transformation of NABARD, and
  4. Strategic Resource Mobilization.

This strategic maneuver not only underscores NABARD’s unwavering dedication to environmental stewardship but also positions the institution as a linchpin in India’s transition towards a resilient and sustainable economy. As the nation grapples with the urgency of climate action, NABARD’s forward-looking approach stands as a beacon of hope, signaling a concerted effort towards a greener future.