Union Environment, Forest and Climate Change Minister Bhupender Yadav delivered the keynote address at the 4th Edition of FICCI’s LEADS event, themed “Collaborations for Growth in a Transformative World.” Highlighting the centrality of green financing, the Minister emphasised that future economies must align progress and profit with sustainability, putting people and ecosystems at the heart of development.
Yadav stressed the importance of collective action—among governments, industries, regulators, global financial bodies, and citizens—to tackle climate change while ensuring inclusive economic growth. He reflected on the historical trajectory of industrialisation, pointing out that over two centuries of unsustainable development have significantly contributed to environmental degradation. The global temperature rise of 1.5 to 2 degrees Celsius, he noted, reflects not only scientific warnings but also the environmental costs of unchecked growth.
India, he said, faces a dual challenge in the 21st century: to meet the aspirations of its young population while also addressing climate change, biodiversity loss, and ecological degradation. Under Prime Minister Narendra Modi’s leadership, India has pursued a path defined by ambition, innovation, and transformation. He applauded Indian industry, represented at the event by FICCI, for adopting an approach that supports both economic and ecological objectives.
According to the Minister, green finance must be seen not as a niche area, but as a core pillar of resilient and competitive economies. He explained that investment decisions—whether in infrastructure, agriculture, transport, or industry—must generate economic returns while enhancing environmental sustainability. This integrated approach is essential for building economies that are both growth-oriented and environmentally responsible.
Yadav highlighted several initiatives India has undertaken to build trust in green investments. Among them is the successful issuance of sovereign green bonds, which have garnered strong international interest. Financial regulators, including the Reserve Bank of India and SEBI, are also promoting greater accountability, transparency, and responsible disclosures in green finance instruments. He pointed to India’s push for blended finance mechanisms, using public funds to reduce risk and encourage private investment in renewable energy, energy efficiency, e-mobility, waste management, and nature-based solutions. With India requiring over USD 10 trillion to reach net zero by 2070, such approaches are critical.
The Minister laid out three key principles guiding India’s climate action:
Climate finance is inseparable from development finance.
Clean energy, sustainable cities, climate-resilient agriculture, and infrastructure form the core of national security and competitiveness.
Nations that lead in green investment today will command future industrial and trade value chains.
He called on developed nations to uphold their responsibilities toward the Global South, stating that the current UNFCCC target of USD 300 billion by 2035 is insufficient given the scale of the climate crisis.
Addressing the importance of carbon finance, Yadav urged the swift operationalisation of Article 6 of the Paris Agreement. This mechanism, he said, can unlock billions for climate action by enabling transparent and accountable carbon markets. Through bilateral and multilateral trading of emissions reductions, both buyer and seller countries can benefit—buyers by offsetting emissions, and sellers by accessing finance and technology.
He also spoke about India’s Green Credit Programme, launched in October 2023, which encourages individuals and institutions to take up voluntary environmental actions. The programme’s revised methodology, notified on 29 August 2025, introduces new features such as mandatory restoration commitments, expanded private sector participation, and more robust monitoring systems to ensure transparency and measurable outcomes.
Reinforcing India’s position as a rapidly growing economy with a strong renewable energy push, dynamic startup ecosystem, and skilled youth, Yadav said green finance will be essential in unlocking investment in key areas like solar and wind energy, green hydrogen, sustainable agriculture, the circular economy, and climate-resilient infrastructure. These sectors, he added, are critical for job creation, competitiveness, and securing India’s energy future.
He also stressed the importance of inclusivity in climate finance, ensuring benefits reach MSMEs, farmers, and vulnerable communities. Innovation in financial instruments and technology—such as green bonds, sustainability-linked loans, AI-enabled platforms, and carbon markets—must be scaled and integrated into mainstream finance.
In his concluding remarks, Yadav urged stakeholders to treat green transition financing as a moral responsibility to future generations. Ignoring the need for urgent action, he warned, risks prioritising short-term gains over long-term planetary survival. Reaffirming India’s commitment to sustainable development under Prime Minister Modi’s leadership, he pledged continued efforts to fulfil global climate obligations and protect the planet’s future.
