Climate finance 'make-or-break issue', India needs USD 10 tn by 2070: Bhupender Yadav

New Delhi, Sep 11 (PTI) Union Environment Minister Bhupender Yadav on Thursday said climate finance is the "make-or-break issue for climate action" and stressed that developed countries have a "moral responsibility to support the global south" in its transition to a low-carbon economy.

Addressing an event organised by industry chamber FICCI, Yadav said India will require more than USD 10 trillion by 2070 to meet its net-zero target and called for global financial systems to unlock private capital while ensuring transparency, accountability and affordability.

"Public money cannot and would not be sufficient to address the scale of the problem at hand. Fiscal space is tight. The role of public budgets and concessional finance is to de-risk, crowd in and set rules that unlock private capital," he said.

He said climate finance is development finance.

"Clean power, efficient cities, climate-smart agriculture and resilient infrastructure are not add-ons; they are the foundation of energy security, food security and industrial competitiveness," the minister said.

Highlighting India's achievements, Yadav said sovereign green bonds have attracted strong investor confidence, regulators such as the RBI and SEBI are ensuring accountability and credibility in green instruments and blended finance mechanisms are being used to support renewable energy, electric mobility, waste-to-wealth and nature-based solutions.

India has chosen a path of "ambition, innovation and transformation" under the leadership of Prime Minister Narendra Modi, the minister said and pointed to the country's "largest renewable energy expansion programme, one of the most vibrant startup ecosystems and a young, skilled population eager to innovate".

Yadav strongly supported the use of Article 6 of the Paris Agreement as a tool for green growth, saying it enables international cooperation and can unlock financial support for developing countries.

He explained that Article 6 allows nations to trade carbon credits through mechanisms overseen by the UN as well as bilateral arrangements. "Article 6 transactions, when aligned with nationally determined contributions and long-term strategies, provide both results-based payments and an incentive for innovation." According to Yadav, such high-integrity carbon markets, based on transparency and clear accounting, can channel billions into climate action that would otherwise not be financed.

He called it a key pathway to mobilise resources for mitigation while promoting technology transfer and capacity building.

Recalling that "the Global North must rise to hold its promises for the greater good of Planet Earth", Yadav said the UNFCCC process of USD 300 billion by 2035 is insufficient.

He warned that failing to mobilise adequate finance would mean "locking our future generations into a future of greater climate uncertainty, resource scarcity and environmental degradation".

The minister said India's Green Credit Programme, notified with a revised methodology last month, is mobilising private capital for eco-restoration, while the RBI has estimated that India will spend about Rs 85.6 trillion by 2030 to align industries with climate norms.

"Green finance is not a niche. It is the backbone of resilient, competitive economies," Yadav said, adding that financial technology, digital platforms and AI can make green financing more transparent, efficient and scalable.

He emphasised that green finance must put "people at the centre" by creating decent jobs, protecting the vulnerable and ensuring access for MSMEs, farmers and marginalised groups.

"A failure to finance our green transition is a failure of our moral duty. It would be an acceptance that our generation's comfort is more important than their survival: a notion that runs contrary to Indian values and principles," Yadav said. PTI GVS MIN MIN