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On the urgency of greening financial systems: Insights from India, the G20 and the role of development co-operation
To meet the commitments of the Paris Agreement and contribute to the global net zero goal, an estimated USD 1 trillion are needed annually in developing countries’ energy sectors by 2030 (IEA, 2021). As climate change is increasingly materialising as a development challenge, countries are increasing efforts to transform their financial systems into drivers and enablers of climate action and sustainable development. To align financial flows with the global mitigation and adaptation goals, countries need to trigger systemic change in both allocation and intermediation. This session will discuss the opportunities for developing countries in greening their financial systems, explore remaining challenges and barriers to harness the potential of green finance and outline actual and needed support from development co-operation. An emphasis will be placed on India’s perspective on greening financial systems, given the estimated investment need of USD 2.5 trillion to achieve the country’s NDC targets by 2030, and the country’s 2023 G20 Presidency.
