India is at a critical juncture in its fight against climate change. With one of the most ambitious climate agendas globally, India’s journey toward a sustainable future relies heavily on a unique alignment between government policies, private sector innovation, and robust financial backing. Given the climate extremes the world has witnessed this year—from record-breaking temperatures to unprecedented floods and fires—COP29 is more than a platform; it’s a call to action for nations to transcend symbolic commitments and forge impactful collaborations that can reshape the climate future.

At the heart of India’s climate strategy lies a formidable financial challenge. Estimates from India’s latest Nationally Determined Contributions (NDCs) indicate that trillions of dollars will be required by 2050 to achieve its sustainability targets. India’s clean energy investment needs are projected to reach $253-263 billion annually from 2026-2030, escalating to $325-355 billion from 2031-2035. By comparison, the current investment available stands at only $44 billion per year, creating a vast funding gap that private capital and climate finance must address.

Scaling Climate Finance: The Backbone of India’s Climate Strategy

Climate finance has become the primary conversation point for developing nations at COP29. For India, scaling up climate finance is pivotal not only for reaching its domestic climate goals but also for setting a precedent that can inspire and mobilise the Global South.

Currently, the available funding in India is far below what is needed to drive an effective transition. The Climate Policy Initiative (CPI) estimates that only $44 billion annually is accessible, whereas the nation requires $150 billion each year to meet its green finance goals. With approximately half of this funding coming from the government and the other half from the private sector, the imbalance is evident and troubling. To meet its targets, India must leverage support from both domestic stakeholders and international financial institutions.

The Role of Multilateral Development Banks (MDBs) and Blended Finance

In closing this financial gap, Multilateral Development Banks (MDBs) play an instrumental role. The challenge, however, lies in their current structures, which many experts argue need to evolve to better accommodate the demands of the climate crisis.

MDBs are also crucial in addressing high-risk projects that are less attractive to private investors. By developing climate resilience in vulnerable regions and supporting large-scale renewable energy infrastructure, MDBs can encourage private entities to step into the green finance landscape with more confidence. This blended finance approach not only brings in much-needed private capital but also ensures that these projects are designed with long-term sustainability in mind, laying a foundation for enduring climate resilience.

Strengthening Public-Private Partnerships

Public-private collaboration is essential for bridging the existing gap in climate finance. India has demonstrated its commitment by setting a target of 500 gigawatts of non-fossil fuel capacity by 2030, yet current projections suggest that only 300-350 gigawatts may be achieved at the current pace. The private sector’s role in accelerating progress toward this target is vital.

The role of the private sector is important, as without sufficient capital from private entities, the shortfall will persist. This collaborative approach extends beyond just financial contributions; it involves sharing expertise, technological innovation, and best practices to optimise resource utilisation and maximise impact.

The government’s role in these partnerships is equally crucial. Policies that support green bonds, renewable energy subsidies, and carbon pricing mechanisms can create a favourable environment for private investments. Additionally, streamlined regulations and faster approvals for renewable projects can further boost investor confidence, allowing for quicker project rollouts and immediate environmental impact.

India’s Leadership Role at COP29

As COP29 convenes, India’s position on the global stage is both as a participant and a leader, particularly for developing nations seeking climate justice and equitable climate finance. While developed nations have historically lagged in meeting their financial commitments to developing countries, India’s proactive approach signals its dedication to shaping a climate agenda that is inclusive and actionable.

India’s stance is one of both urgency and optimism. As a growing economy, India is uniquely positioned to act as a bridge between the needs of developing nations and the financial capacity of developed ones.

A Pathway to Sustainable Progress

The collaboration between government, private sector, and financial institutions is essential for India to achieve its climate goals. COP29 offers an unprecedented opportunity for these sectors to join forces in addressing both the financial and infrastructural challenges that stand in the way of a sustainable future. Through innovative financing solutions, dedicated public-private partnerships, and strong international support, India can solidify its role as a leader in the global climate movement.

For India and the Global South, COP29 represents a crucial moment to secure both resources and partnerships to meet the climate commitments necessary for a resilient and sustainable future. By aligning policy, finance, and industry innovation, India can mobilise its climate ambition and build a future that not only protects but also prospers.

 Shaina Ganapathy, Head of Community Outreach,  Embassy Group.