NABARD's 'Climate Strategy 2030' through 'Green Financing'

Reference

recently National Bank for Agriculture and Rural Development (NABARD) On the occasion of World Earth Day, Climate Strategy 2030 Document Unveiled.

National Bank for Agriculture and Rural Development (NABARD) Objective: its formation 'For matters relating to policy, planning and operations in the field of credit for agriculture and other economic activities in rural areas in India'. Establishment: B. Sivaraman Committee Based on the recommendations of National Bank for Agriculture and Rural Development Act 1981 Came into existence to implement. NABARD of the Reserve Bank of India Agricultural Credit Department (ACD) And Rural Planning and Credit Cell (RPCC) And Agricultural Refinance and Development Corporation (ARDC) Took place of. Partner: World Bank organizations affiliated with And global development agencies working in the field of agriculture and rural development are associates of NABARD. the headquarters: Mumbai.

NABARD Climate Strategy 2030 document

• Objective: Green financing of India of To fulfill the need.
  • This Thiruvananthapuram Held in 78th Business Plan Meet (BPM) Was released during.
• To meet this demand It is structured around four key pillars:
  • Accelerating green credit across sectors.
  • To play a broader market-making role.
  • NABARD Internal green transformation of.
  • Mobilizing strategic resources.
• Objective
  • towards environmental management NABARD Strengthening the commitment of.
  • One Resilient and sustainable economy To be an important stakeholder in India's transition towards

What is Green Finance?

• United Nations Environment Programme According to, the purpose of green financing is to provide public, Financial flows from private and non-profit sectors to sustainable development priorities To increase the level of income (through banking, micro-credit, insurance and investment).

• Examples of green finance include:
  • Buying eco-friendly services and goods
  • green infrastructure development
  • green bond
  • green mortgage
  • green fund
  • green loan
  • durable credit card
• In this Climate finance includes, But it is not limited to this.
  • it Other environmental objectives Also refers to a wide range of, Such as industrial pollution control, water sanitation or biodiversity conservation.
• importance of green finance
  • To better manage environmental and social risks.
  • Take advantage of such opportunities, Which provide environmental benefits.
  • Creating greater accountability.

Benefits of Green Finance

• Facilitating eco-friendly technologies: green finance green infrastructure within local markets Facilitates wider deployment of environmental protection and other environmentally friendly initiatives.
• Competitive Advantage: Businesses developing low-carbon technologies through green finance Provides competitive advantage.
• Enhanced business value: Green finance adds value to a company's portfolio, to stakeholders, investors and current Or attracts potential customers.
  • Economic boost: Businesses can further encourage green initiatives, which will benefit their financial activities while promoting sustainability.
• Promotes the importance of sustainability: Adoption of green finance by one company can inspire others may inspire to follow it, Their Can influence local markets and promote the development of renewable energy.

Challenges related to green financing

• Lack of standardization: Without a universal standard defining green finance, It is challenging for both investors and consumers to distinguish truly committed companies from those engaged in greenwashing.
  • Risk Assessment: standardization and availability Lack of data complicates pricing of green finance, By which Challenges arise for accurate risk assessment.

India's green financing gap (Green Financing Gap) Inadequate Green Finance Flows: year to india $2.5 trillion by 2030 To reach a total cumulative amount of more than About $170 billion is required annually. By the year 2019-20, India Raised nearly $49 billion in green financingwhich was only a fraction of what was needed. The majority of funds were earmarked for mitigation, with only $5 billion allocated for adaptation and resilience. in these areas Due to minimal private sector participation. Due to challenges in bankability and commercial feasibility.

• • Data Availability: Reliable data on green finance is scarce, making it complex to determine which companies are actually succeeding in implementing green finance initiatives.
• Infection Risk: To transition to a low-carbon economy Requires changes in business practices in various industries, Which potentially impacts investor portfolios.
  • Additionally, changing customer preferences and technological advancements Green finance may not suit the needs, which will further impact investor portfolios.
• Regulatory Concerns: Since Green finance is heavily influenced by government policies, investors may be worried that of the future Environmental regulations may reduce the profitability of their investments.
  • Uncertain Financial Performance: Uncertainties between traditional and green finance may raise concerns among investorsespecially with regard to short-term returns despite proven long-term profitability.

How can green financing be promoted?

• Through changes in the regulatory framework of countries
• By harmonizing public fiscal incentives,
• Increase in green financing from various sectors
• With the environmental dimension of the Sustainable Development Goals Alignment of public sector financing decision making
• Increase in investment in clean and green technologies
• Financing for sustainable natural resource-based green economies and climate smart blue economy, increasing use of green bonds, etc.

Pledge of Sustainable Practices by India's Leading Real Estate Developers

• DLF: zero-discharge water systems And sewage treatment plants By implementing practices like, It has been able to recycle millions of liters of water every day, Due to which the pressure on local water sources has reduced.
  • for the last three years Dow Jones Sustainability Index (Dow Jones Sustainability Index) displayed in As the only Indian real estate company.
    • It exemplified commitment to environmental, social and governance excellence.
    • They are amidst infrastructure development Prioritizes greenery conservation by transplanting trees, ensuring continuity of Gurugram's green landscape.
• Signature Global (India) Limited: Most of their projects are either EDGE certified or IGBC Gold-rated, demonstrating a commitment to the environment.
  • Through various optimum water use practices they Saved about 52% water.
• Remsons Industries Limited: They Environment, Labor and Human Rights, Ethics and Sustainable Procurement Showed exemplary performance in key areas such as.
  • EcoVadis Sustainability Assessment (Ecovadis Sustainability Assessment) It got the gold medal.
    • This medal recognizes Remsons Industries as one of the top 5% of all assessed companies globally, Which reaffirms its commitment to environmental, social and governance (ESG) excellence.

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