India Needs Global Climate Cash: Survey Warns of Shortfall

India's climate finance efforts are significantly hindered by a reliance on domestic resources, according to the Economic Survey. While India has made progress in emission reduction and non-fossil fuel capacity, key areas like adaptation and funding for MSMEs remain critically underfunded. The survey indicates that domestic sources account for the vast majority of climate finance, but this is insufficient to bridge the existing gaps.

To meet its climate ambitions, India must mobilize private sector finance, which necessitates international public sector climate finance at an affordable cost. Challenges persist in accessing finance at scale, with high capital costs, complex multilateral access, and limited long-term international capital. Underdeveloped risk-mitigation mechanisms further complicate large-scale adaptation projects and emerging technologies.