Climate finance still skewed towards solar, wind energy
New Delhi, Jan. 31 -- Although India has successfully reduced its emissions intensity by 36% since 2005 and achieved 50% non-fossil power capacity ahead of schedule, climate finance remains skewed towards mature sectors such as solar, wind energy and energy efficiency, Economic Survey 2025-26 states.
Critical areas, including adaptation, financing for micro, small, and medium enterprises (MSMEs), urban infrastructure, and hard-to-abate industries, remain underfunded. Currently, around 83% of India's finance for mitigation and 98% of finance for adaptation is sourced domestically. The current levels of climate finance fall short of the requirements of developing countries to meet their climate ambitions. By 2030, developing economies are estimated to need $ 5-6 trillion, the survey said.
In 2023, global climate finance totalled $ 1.9 trillion, of which private capital accounted for nearly $ 1.3 trillion. More than half of this private finance flowed to advanced economies, with China attracting another 30%, while developing countries, excluding China, received only about 15%....
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