Climate Finance Initiatives (Indian & Global) YoY

2015:

• India Initiatives:
• The National Action Plan on Climate Change (NAPCC) was launched by the Government of India, encompassing several strategies to promote sustainable finance.
• The NAPCC introduced the concept of a national green bond market, providing a platform for environmentally friendly projects to secure funding.
• A green credit guarantee scheme was established to incentivize lending to green projects by offering credit guarantees to financial institutions.
• The National Clean Energy Fund (NCEF) was established to provide loans and grants to clean energy projects, capitalized by the government and private investors.
• SEBI issued guidelines for green bonds, defining criteria for qualifying bonds and setting reporting requirements.
• International Initiatives:
• The Paris Agreement was a landmark international agreement adopted to combat climate change, aiming to limit global warming to below 2 degrees Celsius.
• The Task Force on Climate-related Financial Disclosures (TCFD) was established by the Financial Stability Board, focusing on disclosing climate-related financial risks and opportunities.

2016:

• India Initiatives:
• The Reserve Bank of India (RBI) introduced the Green Banking Scheme to incentivize lending to sustainable projects with benefits like lower interest rates.
• The National Clean Energy Fund (NCEF) continued to provide financial support to clean energy projects.
• International Initiatives:
• The Green Climate Fund (GCF) was established as a global source of funding to support developing countries in mitigating and adapting to climate change.
• The Sustainable Development Goals (SDGs) were adopted by the United Nations, outlining a comprehensive framework for sustainable development by 2030.

2017:

• India Initiatives:
• SEBI issued guidelines for sustainable funds, defining criteria and reporting requirements for funds invested in sustainable projects.
• RBI launched the Green Infrastructure Finance Facility (GIFF) to provide financial support to various green infrastructure projects.
• International Initiatives:
• The Principles for Responsible Investment (PRI) were launched to encourage investors to incorporate environmental, social, and governance (ESG) factors in their decisions.
• The Climate Bond Initiative (CBI) was introduced to promote green bonds for climate change mitigation and adaptation projects.

2018:

• India Initiatives:
• The National Mission for Sustainable Agriculture (NMSA) was launched to promote sustainable farming practices.
• RBI introduced the Green Credit Guarantee Scheme to provide guarantees for banks lending to sustainable projects.
• International Initiatives:
• The European Commission’s Action Plan on Financing Sustainable Growth introduced measures like the European Green Bond Standard and a taxonomy for sustainable activities.
• The United Nations Environment Programme (UNEP) launched the Sustainable Finance Lab as a platform for sharing sustainable finance best practices.

2019:

• India Initiatives:
• The International Solar Alliance (ISA) was formed to promote solar energy and provide assistance to countries working on solar projects.
• SEBI issued guidelines for climate-aligned bonds, defining criteria and reporting requirements for bonds mitigating climate change.
• International Initiatives:
• The G20 Leaders’ Summit adopted a declaration on sustainable finance, committing to addressing climate change and environmental issues.
• The International Monetary Fund (IMF) published a report highlighting the role of sustainable finance in achieving the SDGs.

2020:

• India Initiatives:
• The National Hydrogen Mission (NHM) was launched to support the production and use of clean hydrogen as a fuel.
• RBI introduced the Green Stimulus Package, providing financial support to businesses investing in sustainable projects.
• International Initiatives:
• The COVID-19 pandemic emphasized the importance of sustainable finance in building resilient economies.
• The G20 Leaders’ Summit adopted a declaration on global recovery, emphasizing the role of sustainable finance.

2021:

• India Initiatives:
• The Sustainable Development Goals (SDG) Fund was launched to finance projects contributing to the UN’s SDGs by 2030.
• SEBI issued guidelines for sustainability-linked bonds, linking bonds to ESG performance.
• International Initiatives:
• The Intergovernmental Panel on Climate Change (IPCC) warned about the limited time to limit global warming to 1.5 degrees Celsius.
• The Glasgow Climate Pact was adopted at COP26, urging more ambitious climate action.

2022:

• India Initiatives:
• The National Adaptation Fund for Climate Change (NAFCC) was launched to provide support for climate adaptation projects.
• RBI introduced the Green Taxonomy, setting standards for classifying green projects.
• International Initiatives:
• The United Nations published its Emissions Gap Report, highlighting the need for urgent greenhouse gas emission reductions.
• The G20 Leaders’ Summit focused on climate change, emphasizing more ambitious emission reduction efforts.

2023:

• India Initiatives:
• Anticipated initiatives include launching a national green bond exchange, introducing tax breaks for sustainable investments, and establishing a dedicated government agency for sustainable finance.
• A growth in sustainable finance products and services is expected, including new green bonds and sustainable funds.
• International Initiatives:
• The IPCC warned about the ongoing impact of climate change, urging swift adaptation actions.
• The G20 Leaders’ Summit is expected to adopt a declaration on climate change, emphasizing ambitious emissions reductions and adaptation efforts.

These are just some of the key international developments in sustainable finance that took place from 2019 to 2023. The growth of sustainable finance is a global effort, and it is essential to continue to work together to promote sustainable finance and to build a more sustainable future.

In addition to these major developments, there have been many other initiatives and activities that have helped to promote sustainable finance in recent years. These include:

• The development of new sustainable finance products and services, such as green bonds, sustainable funds, and ESG-linked loans.
• The growth of sustainable investing, as more and more investors are looking to invest in companies and projects that are committed to sustainability.
• The increasing adoption of sustainability reporting standards, such as the TCFD, by companies and financial institutions.
• The development of new regulations and policies that promote sustainable finance, such as the European Union’s Sustainable Finance Disclosure Regulation (SFDR).

The growth of sustainable finance is a positive development, and it is expected to continue in the years to come. This is due to a number of factors, including:

• The increasing awareness of climate change and other environmental challenges.
• The growing demand for sustainable products and services from consumers and businesses.
• The increasing availability of sustainable finance products and services.
• The growing support for sustainable finance from governments and regulators.