Leading in a Future Economy Project: Fostering an Enabling Environment for Climate Finance in India

Climate change poses a profound threat to global health and development, with the United Nations identifying it as the most significant health challenge facing humanity. Its impacts — ranging from air pollution and disease proliferation to extreme weather and food insecurity — are projected to cause approximately 250,000 additional deaths annually between 2030 and 2050. Developing countries, despite contributing less historically to global emissions, are disproportionately affected due to rapid population growth, industrialization, and reliance on fossil fuels. India, as the world’s most populous nation and third-largest emitter, exemplifies this paradox. It faces acute environmental challenges while striving for economic growth and sustainability. This paper explores India’s climate finance landscape, emphasizing the role of financial sectors in supporting national climate objectives. It analyzes current trends, identifies key challenges, and proposes strategic approaches to enhance climate finance flows, thereby fostering a more resilient and sustainable future.