What Is Green Finance? Minister Explains Why It’s Key for India’s Future Growth
Green finance means investing money in projects that protect the environment—like renewable energy, eco-restoration, and clean transport. At FICCI’s 4th LEADS event, Union Environment Minister Bhupender Yadav said this kind of financing is the backbone of strong and sustainable economies.
Key Highlights
- Green finance must be seen as the backbone of competitive economies, not a niche idea.
- Sovereign Green Bonds have drawn strong global investor confidence in India’s green growth story.
- Article 6 of the Paris Agreement is vital to unlock billions in climate finance through carbon markets.
- Green Credit Programme methodology revised (August 2025) to bring in private players and ensure eco-restoration commitments.
- India needs over USD 10 trillion by 2070 to achieve net zero targets.
- Financing green transition is a moral responsibility to future generations, said the Minister.
Why It Matters
Financing climate action is no longer optional—it is directly tied to economic growth, jobs, and competitiveness. India’s push for green bonds, carbon markets, and private participation signals how developing economies can mobilize funds for sustainable growth while balancing global climate responsibilities.
With new policies and global investor support, India is positioning green finance as a driver of both economic security and climate resilience.
Want to see how green investments can generate income? Try our Solar Farm Income Calculator to estimate returns from solar power projects.
Source: Ministry of Environment, Forest and Climate Change, PIB
