NABARD has made a major advancement in sustainable development.
Shaji K V, Chairman, NABARD, released the company’s Climate Strategy 2030 document on Earth Day. The goal of this plan is to meet India’s growing demand for green financing.
Despite the urgent need—India alone needs about $170 billion a year to reach over $2.5 trillion in total by 2030. The current inflows of green finance are woefully inadequate. India received only a small portion of the required green financing, approximately $49 billion, as of 2019–20. Only $5 billion was set aside for adaptation and resilience, with the majority of funds designated for mitigation. This indicates that the private sector has not engaged in these areas because of difficulties with bankability and commercial viability.
To meet this need, NABARD’s Climate Strategy 2030 is organized around four main pillars:
(i) Quickening the pace of green lending across industries
(ii) Expanding One’s Market-Making Capabilities
(iii) NABARD’s Internal Green Transformation
(iv) Strategic Resource Allocation
This strategic move positions NABARD as a key actor in India’s transition to a resilient and sustainable economy while also reaffirming the organization’s commitment to environmental stewardship, the company said in a press release.
