IIT Madras hosts G20 Event on Mobilizing Climate Finance in India for Mitigation and Adaptation

CHENNAI: Indian Institute of Technology Madras’ (IIT Madras) School of Sustainability organized a Roundtable Discussion on ‘Mobilizing Climate Finance in India for Mitigation and Adaptation’ on Saturday (17th June 2023).

The event was jointly organized with Department of Economic Affairs, Ministry of Finance, in collaboration with Climate Policy Initiative, an independent non-profit research group based in the US.

The domestic aspect of this roundtable precedes the 3rd Sustainable Finance Working Group (SFWG) meeting under India’s G20s Presidency, scheduled to be held between 19th and 21st June 2023 in Mahabalipuram, Tamil Nadu.

Delivering the welcome address, Prof. V. Kamakoti, Director, IIT Madras said, “Collective efforts, in line with India’s G20 motto of ‘Vasudhaiva Kutumbakam’ are fundamental for the world to deal with climate change.”

Prof V. Kamakoti added, “With a significant portion of our land exposed to floods, droughts, earthquakes and coastal hazards, it is imperative that we invest in robust adaptation and resilience measures. The roundtable discussion shed light on the estimated investment of $1 trillion needed between 2015 and 2030 to ensure effective adaptation. Our collective efforts must be directed towards building a climate-resilient India.”

Ms. Chandni Raina, Adviser, Department of Economic Affairs, Ministry of Finance gave the keynote address. The roundtable was moderated by Dr. Dhruba Purkayastha, Director India, Climate Policy Initiative.

The roundtable discussion witnessed the participation of prominent stakeholders, including senior representatives from the Ministry of Finance, Reserve Bank of India, leading public and private sector banks, investors, industry bodies, and international development financial institutions.

During the event, participants delved into the landscape of climate finance, highlighting the gap between the current and desired investment levels. The roundtable recognized the role of public finance in increasing climate investments, while emphasizing the need for scaling up private finance through policy, regulatory and market making measures, creating a better enabling environment for innovation and deployment of low-carbon technologies.

The roundtable discussion proposed several avenues to bridge the climate finance gap, including policy and regulatory measures such as taxonomy and disclosures, innovative financial mechanisms included blended finance, and the mobilization of funds from institutional investors such as insurance and pension funds.

During the event, Ms Chandni Raina, Adviser, Climate Change Finance Unit, Department of Economic Affairs, Ministry of Finance, said, “Mobilization of timely and adequate financial resources in a cost-effective manner and access to technology is critical for meeting the requirements for climate action.” She further stated, “Addressing Climate Action among various development imperatives remains a challenge and while the per capita carbon emission is much lower than the world average, several measures have been taken by the Government of India to reduce emissions in the past decade and more.”

Dr. Dhruba Purkayastha, Director India, Climate Policy Initiative, said, “India is on track to meet its NDC goals and India’s revised NDC commitments have significantly increased targets on emissions intensity reduction and renewable energy investments. Corresponding investments required in mitigation and adaptation would also have to be increased. While estimates vary between $ 150 and $ 200 billion per annum for NDC and Net Zero goals, it is imperative that domestic financial intermediation for climate investments through banks and capital markets is scaled up disproportionately from its present levels.”

Dr. Dhruba Purkayastha added, “This would need directed policy action, supportive regulation to increase climate finance and prudent trade-offs in progressively managing increased systemic risks which could accrue from transition to low carbon economy, in addition to active commitment to low carbon transition from the banking, financial services and insurance industry.”

The roundtable discussion proposed several avenues to bridge the climate finance gap, including policy and regulatory measures to build innovative financial mechanisms including blended finance, and the mobilization of funds from institutional investors such as insurance and pension funds. By developing partnerships and collaborations among stakeholders, the event aimed to foster sustainable investments and identify actionable recommendations.

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