Indian Rupees. (Photo by Singh Lens via Getty Images) 

Tracked green finance in India was $44bn per annum in 2019 and 2020 – less than a quarter of what is required for the nation to meet its nationally determined contributions (NDCs) under the Paris Agreement – uncovers the latest report by analysis and advisory organisation the Climate Policy Initiative (CPI).

The report, published 10 August 2022, finds India’s green finance flows have grown by 150% since the first assessment was published two years ago but international sources of finance have only grown to 17% in the 2020 fiscal year from 13% in 2019. CPI says this is “still a far cry from Prime Minister Modi’s demand of a trillion dollars of climate finance at COP26 in Glasgow, to help meet India’s 2030 and net-zero goals”.

The research concludes the majority of India’s green financing comes from its domestic sector, with 87% and 83% increases in the 2019 and 2020 fiscal years, respectively.

“The report shows increased flows to renewable energy sectors, reflecting the positive role policy support has had in mobilising investment. We hope to see a similar role being played in other sub-sectors like distributed renewable energy and clean mobility,” said Neha Khanna, the report’s lead author.

The study tracks public and private contributions to clean energy, clean transport and energy efficiency, calculating finance flows based on actual investments instead of commitments.

India’s 2021 “Panchamrit” targets include adding 500 gigawatts of non-fossil fuel-based energy capacity to meet 50% of energy demand with renewable sources. The CPI cautions that meeting these ambitions requires much greater mobilisation of green finance.