Bhupender Yadav Urges Green Finance as Backbone of Sustainable Growth at FICCI LEADS

Union Minister for Environment, Forest and Climate Change, Shri Bhupender Yadav, delivered the keynote address at the 4th Edition of FICCI’s LEADS Conference on the theme “Collaborations for Growth in a Transformative World.” His speech centered on the vital role of green financing in shaping economies of the future, where sustainability, inclusivity, and resilience must guide industrial and financial growth.

Growth, Sustainability, and Collective Responsibility

The Minister opened his address by reflecting on the historical journey of industrialisation, noting that while it spurred global progress, it also accelerated environmental degradation. He warned that global temperature thresholds—between 1.5°C and 2°C—reflect the cumulative costs of unsustainable growth, not just figures from climate science. Industry, he emphasized, must look beyond profit margins to account for hidden environmental costs.

Shri Yadav underlined that the 21st century poses a dual challenge for countries like India: meeting the development aspirations of a young, ambitious population while also safeguarding ecosystems from climate change, biodiversity loss, and resource depletion. Under Prime Minister Shri Narendra Modi’s leadership, India has opted for a transformational pathway of ambition and innovation that balances growth with ecological stewardship.

Green Finance: Core of Future Economies

Calling green finance the backbone of competitive and resilient economies, Shri Yadav explained that it is not a niche approach but a restructuring of capital flows across all sectors. Every rupee invested in infrastructure, agriculture, transport, or industry must, he said, simultaneously strengthen sustainability and community well-being.

India has already taken strong steps in this direction, including the issuance of sovereign green bonds, which have attracted significant international attention. Regulators such as the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) are reinforcing accountability, disclosure norms, and transparency in green financial instruments to ensure long-term trust.

Mobilising Investments for Net Zero by 2070

Shri Yadav highlighted that India will require over USD 10 trillion by 2070 to achieve its net zero commitments. To meet this challenge, India is fostering blended finance mechanisms that use public funds to de-risk private investment in key areas such as renewable energy, electric mobility, energy efficiency, waste-to-wealth initiatives, and nature-based solutions.

He laid down three guiding principles for India’s climate action:

1. Climate finance equals development finance – sustainability must be integrated into national development strategies.

2. Clean energy and resilience are foundational – renewable power, smart cities, sustainable agriculture, and resilient infrastructure are central to industrial competitiveness.

3. Nations that lead in green finance today will lead future value chains – making it imperative for developed nations to support the Global South.

Carbon Markets and International Cooperation

The Minister stressed the importance of operationalising Article 6 of the Paris Agreement to create high-integrity carbon markets. Such mechanisms, governed by transparency and accountability, can channel billions into climate action by enabling countries to trade climate outcomes. This not only accelerates emission reductions but also opens avenues for finance, technology transfer, and capacity development in developing nations.

Quoting UNEP Executive Director Inger Andersen, Shri Yadav reminded participants: “Finance is the make-or-break issue for climate action.”

India’s Green Credit Programme

He also highlighted the Green Credit Programme, launched in October 2023, as an innovative mechanism to encourage voluntary environmental action. A revised methodology, notified on 29 August 2025, now allows direct participation by private entities, mandates minimum restoration commitments, and expands the scope of credit utilisation. These reforms are designed to ensure transparency, measurable outcomes, and greater private sector involvement in ecological restoration.

Opportunities for Growth and Job Creation

Positioning India as the fastest-growing major economy, Shri Yadav highlighted opportunities in solar and wind power, green hydrogen, sustainable agriculture, the circular economy, and climate-resilient infrastructure. He noted that these sectors can attract massive investments, create millions of green jobs, and reinforce India’s global competitiveness.

Inclusive and Innovative Financing

The Minister stressed that financing mechanisms must be inclusive, ensuring benefits for farmers, MSMEs, and vulnerable communities. He called for leveraging financial technology, AI-driven platforms, and digital tools to make green financing scalable, transparent, and efficient. Instruments such as green bonds, sustainability-linked loans, carbon markets, and impact investment funds must move from “margins to mainstream,” he declared.

A Moral and Ethical Imperative

In conclusion, Shri Yadav urged all stakeholders—governments, industry, regulators, and civil society—to treat financing the green transition as both a moral and ethical responsibility. Failure to act now, he cautioned, would endanger future generations by placing short-term comfort above long-term survival.

Reaffirming India’s commitment under Prime Minister Modi’s leadership, he declared that the country stands ready to pioneer sustainable growth, fulfil its climate responsibilities, and safeguard the planet’s future while ensuring prosperity for its people.