India is increasingly vulnerable to climate change. We lose approximately one percent of our annual GDP due to the increasing frequency of natural disasters that can be linked to climate change. An increasing number of Indians recognise this reality and are concerned.
We have done well to state a net-zero target and aggressively accelerate renewable energy deployment. However, drawing up a road map with agreed milestones must be accomplished, particularly for hitherto missed opportunities.
Financing for climate action is our biggest challenge. According to the Climate Policy Initiative, about $44 billion of climate finance was mobilised in 2021, approximating one-fourth of the requirement. Most went towards mitigation projects, particularly renewable energy. Domestic capital contributed about 85 percent, with a 60:40 split between private and public sectors.
Clearly, there is a need to ramp up financing. We also need supportive policies and business models, specifically for sectors with low investments. For example, cities need to be prioritised as they are particularly vulnerable to climate impacts and consume a large proportion of energy.