India to need more than $1 trillion by 2030 to adapt to climate change

India to need more than $1 trillion by 2030 to adapt to climate change

NEW DELHI: India will be required to spend an estimated 85.6 trillion rupees ($1.05 trillion) by 2030 to adapt its various sectors to comply with climate change norms, a finding by the country’s Reserve Bank of India (RBI) said.

The study was done by contributors from the Department of Economic and Policy Research, an internal department of India’s central bank.

Central bank or financial regulator has several policy instruments at their disposal to influence investment decisions and the allocation of resources and credit to achieve the sustainability targets, the Reserve Bank of India’s (RBI) report on Currency and Finance said.

The green financing requirements in India could be at least 2.5 percent of GDP annually to address the infrastructure gap caused by climate events, according to the finding.

The study added that a sector-specific approach to climate risk mitigation is called for, in view of the difficult policy trade-offs between containing near-term adverse output impact due to NDC (nationally determined contribution) commitments against larger output losses in the medium-run due to no policy action.

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