Climate Financing: As an Economic Approach towards Sustainable Environment

A sustainable environment is a result of the efficient use of environmental resources to make them available for future generations.Climate is the most important for biodiversity to survive on the earth.Rapid changes in the behaviour of climate due to the greenhouse effect, soil degradation, and pollution in the air, and water lead to come into effect impacts like EL nino., floods, heat waves, and many more natural hazard.Hence adverse climate economic activities need to be curbed and efficient resource mobilization towards environment-friendly projects including renewable energy needs to be channelized into the Indian economy, which is popularly known as climate financing., India secured 7th position in the Climate Change Performance Index (CCPI) and in 2023 the rank was 8th.The objectives of this study are to understand the necessity of climate financing for a sustainable environment and to take a glance at India's current stance and status in the Climate Financing Strategy.For that purpose, this research incorporated descriptive methodology to study various data collected from secondary sources and conclude that India is the third-largest greenhouse gas emitter.Annual CO2 emissions have been increasing at a steady rate, but the intensity per GDP ($) is decreasing, while per capita emissions are increasing sharply.India's GDP is expected to decrease by 4.5% by 2030, and this loss may reach 35% by 2100.To address this, budgetary allocation of India follows an increasing trend.Budgetary allocation trends from Rs.64 crores in 2014-15 to Rs. 220 crores in 2024-25 and continuing the same allocation at current F.Y ,ie.2024-25.Apart from budgetary allocation, India has made several environmental commitments, including the Nationally Determined Contribution (NDC) by 2030.However, green investment in India is currently short of its actual needs, ranging from $160 to $288 billion per year for climate actions.In the end, the research suggests effective utilization of FDI in the non-conventional energy sector, blended finance mode for climate projects domestic investment through private-public partnerships, identifying fossil burning propensity zones, and providing renewable energy easily to ensure a more significant reduction in greenhouse gas emissions and ensure a sustainable economy.