News Excerpt:

National Bank for Agriculture and Rural Development (NABARD) unveiled its Climate Strategy 2030 document on Earth Day, which aims to address India’s need for green financing.

About Climate Strategy 2030: 

• The Climate Strategy 2030, a comprehensive blueprint, is designed to tackle India’s growing demand for green financing.
• NABARD's Climate Strategy 2030 is structured around four key pillars: 
• • Accelerating green lending across sectors: This pillar focuses on increasing green lending across various sectors to meet the rising demand for sustainable financing.
  • Playing a broader market-making role: NABARD aims to shape the green finance market, facilitating increased participation and investment in sustainable projects.
  • Internal green transformation of NABARD: This aspect of the strategy involves internal reforms within NABARD to align its operations and practices with environmental sustainability goals.
  • Strategic resource mobilisation: NABARD intends to mobilise resources strategically to support and scale up green financing initiatives effectively.

Key challenges in green financing:

• India requires approximately $170 billion annually, amounting to a cumulative total of over $2.5 trillion by 2030 for green financing, but the current inflows are critically insufficient.
• As of 2019-20, India garnered about $49 billion in green financing, which is merely a fraction of what is needed.
• Only $5 billion was allocated towards adaptation and resilience, reflecting the minimal private sector engagement in these areas due to bankability and commercial viability challenges.

Sustainable practices followed by real estate developers:

• DLF:
  • DLF's sewage treatment plants recycle over 14 million litres of water daily, supporting horticulture, secondary water usage, and lake replenishment, reducing reliance on groundwater.
  • They implement practices like zero-discharge water systems, reducing strain on local water sources.
  • DLF is the only Indian real estate company featured in the Dow Jones Sustainability Index for the past three years, exemplifying its commitment to environmental, social, and governance excellence.
  • They prioritise preserving greenery by transplanting mature trees, ensuring the continuity of Gurugram's green landscape amid infrastructural development.
• Signature Global (India) Ltd:

• Most of their projects are either EDGE-certified or IGBC gold-rated, demonstrating their environmental commitment.
• They save around 52% of water usage through various optimum water use practices, such as low-flow faucets and toilets, rainwater collecting systems, and wastewater treatment and reuse facilities.