Climate Finance in India: Bridging the Gap in International Efforts for Equitable Allocation

Author: Anusha Arif

India is currently at a complex standpoint since, as the most populous country, it is continuously exploring new and alternative energy due to its growing energy needs. Yet, it is now also among the largest emitters in the world. Amidst India’s energy transition goals, the country is moving towards expanding its share of renewable energy, as well as exploring new technology, to support the growing energy needs of the country through its continued dependence on thermal power. To support its just transition ambition, the country requires innovative sources of climate financing. This paper expands on the idea of climate finance in the context of the country’s aspirations and addresses the gap in international climate finance mechanisms. It examines the necessity, scope, and challenges in access to climate finance. The study delves into the limitations and inadequacies of international climate finance mechanisms and India’s efforts on the national front to counter the problems by mobilising domestic financing architecture. It assesses the effectiveness of these measures in further attracting international investments. The paper concludes with a brief review of the present scenarios and a suggested roadmap for the country to meet its goals for energy transition and access.