India's transition to a low-carbon economy requires significant green financing, with an estimated $1.3 trillion needed by 2030. This financing is crucial for supporting the country's ambitious climate goals and renewable energy targets.
As of June 2025, India's cumulative green, social, sustainability, and sustainability-linked (GSS+) debt issuance reached $55.9 billion, a substantial increase from 2021. The government has actively issued sovereign green bonds, creating a domestic green yield curve.
Challenges remain, including underfunding in the renewable energy sector and project delays. To address these, India's central bank is proposing a common pool of bankable climate-focused projects. Green investments are projected to grow significantly by 2030, primarily in renewable energy.