IDEAS home Printed from https://ideas.repec.org/a/sae/smppub/v12y2023i1p111-128.html

Reflections on Climate Finance in India and the Way Forward

Author

Listed:
  • Vimal Pant
  • Prachi Pathak

Abstract

Climate Change has acquired centre stage in all business and economic decisions globally after numerous studies have warned of its catastrophic impacts on humankind. The article is a commentary on the state of climate finance around the world and the key issues in India. It draws the latest data from credible sources to form the narrative. This analysis reflects on recent developments and trends in climate or green finance across the world as well as its impact on India. It aims at finding possible solutions to address the impediments in boosting the prospects of a vibrant green finance landscape. ESG finance has gained momentum around the world due to policy support, investor enthusiasm and innovative funding options as economic growth policies are being integrated with environmental sustainability. However, the pie is still small and a lot needs to be done to catapult it into mainstream business finance. The article also includes recommendations for rejuvenating the green finance landscape so that the market can reach its full potential for all stakeholders and help India fulfil its international commitments to reduce greenhouse gas emissions. JEL Classification: E44, E66, G1

Suggested Citation

  • Vimal Pant & Prachi Pathak, 2023. "Reflections on Climate Finance in India and the Way Forward," South Asian Journal of Macroeconomics and Public Finance, , vol. 12(1), pages 111-128, June.
    • Handle: RePEc:sae:smppub:v:12:y:2023:i:1:p:111-128
    DOI: 10.1177/22779787221147992
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/22779787221147992
    Download Restriction: no
    File URL: https://libkey.io/10.1177/22779787221147992?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Berensmann, Kathrin & Lindenberg, Nannette, 2016. "Green finance: actors, challenges and policy recommendations," Briefing Papers 23/2016, German Institute of Development and Sustainability (IDOS).
    2. Dikau, Simon & Volz, Ulrich, 2021. "Central bank mandates, sustainability objectives and the promotion of green finance," Ecological Economics, Elsevier, vol. 184(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shalini Talwar & Nourah O. Alshaghdali & Bhumika Gupta & Enrico Battisti, 2026. "Climate Finance for Sustainable Development: Substantive Agendas and Future Directions," Sustainable Development, John Wiley & Sons, Ltd., vol. 34(1), pages 321-337, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ozili, Peterson K, 2024. "The role of central bank in greening the Nigerian financial system," MPRA Paper 120157, University Library of Munich, Germany.
    2. Ozili, Peterson Kitakogelu, 2022. "Green finance research around the world: a review of literature," MPRA Paper 114899, University Library of Munich, Germany.
    3. Joaquín Bernal-Ramírez & Jair Ojeda-Joya & Camila Agudelo-Rivera & Felipe Clavijo-Ramírez & Carolina Durana-Ángel & Clark Granger-Castaño & Daniel Osorio-Rodríguez & Daniel Parra-Amado & José Pulido &, 2022. "Impacto macroeconómico del cambio climático en Colombia," Revista ESPE - Ensayos sobre Política Económica, Banco de la Republica de Colombia, issue 102, pages 1-62, July.
    4. Djedjiga Kachenoura & David Chetboun & Marine Lagarde & Laurent Mélère & Damien Serra, 2024. "Les politiques financières et réglementaires face aux enjeux climatiques," Post-Print hal-05421553, HAL.
    5. Zhang, Dongyang, 2023. "Does green finance really inhibit extreme hypocritical ESG risk? A greenwashing perspective exploration," Energy Economics, Elsevier, vol. 121(C).
    6. Kappel, Robert & Pfeiffer, Birte & Reisen, Helmut, 2017. "Compact with Africa: fostering private long-term investment in Africa," IDOS Discussion Papers 13/2017, German Institute of Development and Sustainability (IDOS).
    7. Tobias Kranz & Hamza Bennani & Matthias Neuenkirch, 2024. "Monetary Policy and Climate Change: Challenges and the Role of Major Central Banks," Research Papers in Economics 2024-01, University of Trier, Department of Economics.
    8. Dippi Verma & Rameesha Kalra & Santosh Satyanarayan Baheti, 2025. "Examining the Domain of Green Finance Through Bibliometric Research Analysis of 22 Years (2000–2022): An Analytical Retrospective," Vision, , vol. 29(2), pages 244-265, April.
    9. Da Gao & Xiaotian Zhou & Jing Wan, 2024. "Unlocking sustainability potential: The impact of green finance reform on corporate ESG performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(5), pages 4211-4226, September.
    10. Zhu, Chenliang & Qi, Jiajun & Feng, Lingbing & Wang, Xinyi, 2025. "Source control or end-of-pipe treatment: How green finance policy impacts enterprise carbon intensity," International Review of Financial Analysis, Elsevier, vol. 104(PA).
    11. Xuan Liu & Xuexi Huo, 2024. "Green Finance, Land Transfer and China’s Agricultural Green Total Factor Productivity," Land, MDPI, vol. 13(12), pages 1-18, December.
    12. Canepa, Alessandra, 2025. "Two Decades On: Assessing the Impact of the Copenhagen Criteria on Environmental Performance in the 2004 EU Accession Countries," Department of Economics and Statistics Cognetti de Martiis. Working Papers 202501, University of Turin.
    13. Josep Ferret Mas & Alexander Mihailov, 2021. "Green Quantitative Easing as Intergenerational Climate Justice: On Political Theory and Pareto Efficiency in Reversing Now Human-Caused Environmental Damage," Economics Discussion Papers em-dp2021-16, Department of Economics, University of Reading.
    14. Hunjra, Ahmed Imran & Hassan, M. Kabir & Zaied, Younes Ben & Managi, Shunsuke, 2023. "Nexus between green finance, environmental degradation, and sustainable development: Evidence from developing countries," Resources Policy, Elsevier, vol. 81(C).
    15. Satish Kumar & Dipasha Sharma & Sandeep Rao & Weng Marc Lim & Sachin Kumar Mangla, 2025. "Past, present, and future of sustainable finance: insights from big data analytics through machine learning of scholarly research," Annals of Operations Research, Springer, vol. 345(2), pages 1061-1104, February.
    16. Caroline Vincensini, 2026. "After 25 years of reforms of economic policy governance, is EMU fit to address the climate challenge? A political economy view," Review of Evolutionary Political Economy, Springer, vol. 7(1), pages 1-22, December.
    17. Kakuho Furukawa & Hibiki Ichiue & Noriyuki Shiraki, 2020. "How Does Climate Change Interact with the Financial System? A Survey," Bank of Japan Working Paper Series 20-E-8, Bank of Japan.
    18. Klein, Sophie Maria Anneke & Polzin, Friedemann, 2025. "Greening the retail banking industry: Evidence from German bank account consumers," International Review of Financial Analysis, Elsevier, vol. 104(PA).
    19. Yi, Eunkyung & Kim, Bongchul & Oztarsu, Mehmet Fatih & Khaustova, Yevheniia & Yatsenko, Hanna, 2025. "Optimisation of international financial institutions: A comparative analysis of Ukraine and South Korea’s roles in enhancing global economic stability," World Development Perspectives, Elsevier, vol. 38(C).
    20. Mathias Lund Larsen, 2023. "Bottom-up market-facilitation and top-down market-steering: comparing and conceptualizing green finance approaches in the EU and China," Asia Europe Journal, Springer, vol. 21(1), pages 61-80, March.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E66 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General Outlook and Conditions
    • G1 - Financial Economics - - General Financial Markets

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:smppub:v:12:y:2023:i:1:p:111-128. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.