On Earth Day, NABARD announced its Climate Strategy 2030 to tackle India’s demand for sustainable financing through green initiatives.

Key Highlights

  • The National Bank for Agriculture and Rural Development (NABARD) emphasized that the India requires approximately $170 billion annually to reach a cumulative total exceeding $2.5 trillion by 2030 to invest in sustainable solutions. 
  • However, current green financing inflows stand at only $49 billion, with limited private sector participation hindering adaptation and resilience efforts (which received just $5 billion in 2019-20).
  • Moreover DLF, a leading real estate developer, has pledged to prioritize sustainable development. They have implemented eco-friendly practices such as zero-discharge water systems and sewage treatment plants, recycling millions of liters of water daily. 
  • Moreover, they emphasize the need for self-regulation and behavioral changes among workers to tackle environmental challenges in construction.


NABARD came into existence 1982 marked a significant transfer of agricultural credit functions from RBI and refinance functions from the Agricultural Refinance and Development Corporation (ARDC). NABARD is a government-owned institution.


  • NABARD operates under a Board of Directors appointed by the Government of India in accordance with the NABARD Act. 
  • This board consists of various representatives, including those from rural economics, cooperative banks, and government officials, among others. 
  • The Managing Director and other directors are appointed by the Central Government in consultation with RBI.

Core Function

  • Providing financial assistance to rural areas.
  • Developing rural infrastructure.
  • Formulating local credit plans and guiding banks to achieve them.
  • Supervising Cooperative Banks and Regional Rural Banks (RRBs).
  • Offering recommendations to RBI on Cooperative Banks’ licenses and branch expansions etc.
  • Designing and executing government development schemes.
  • Training and supporting handicraft artisans for enhanced marketing.
  • Spearheading watershed development for sustainable climate resilience.

Prominent Programs

  • SHG Bank Linkage Project (1992)
  • Kisan Credit Card Scheme
  • Tribal Development Program
  • EShakti Project: Launching digitization for Self-Help Groups (SHGs) in 2015.
  • RuPayKisan Cards (RKCs) 

NABARD’s Climate Strategy 2030 focuses on four key pillars:

  1. Accelerating Green Lending Across Sectors: This pillar outlines strategies to increase lending for renewable energy projects, climate-smart agriculture, and other green initiatives.
  2. Playing a Broader Market-Making Role: NABARD aims to develop a more robust market for green financing by facilitating investments and partnerships between different stakeholders.
  3. Internal Green Transformation: The strategy emphasizes NABARD’s commitment to adopting more sustainable practices within its own operations.
  4. Strategic Resource Mobilization: This pillar focuses on mobilizing additional resources, both domestic and international, to support green financing initiatives.


  • Attracting Investors: Convincing private companies to invest in green projects can be tough due to perceived risks. India needs ~$170 billion annually, but only attracts ~$49 billion currently.
  • Tracking Impact: NABARD needs a strong system to check if green loans benefit the environment. Studies show good monitoring improves project impact.
  • Building Expertise: NABARD’s experience lies in rural development projects. Green financing requires specialized skills.
  • Policy Environment: Favorable government policies like tax breaks for green businesses can boost green investments.

Way forward:

  • Risk Sharing: Partnering with others can spread risk and make green projects more attractive.
  • Strong Monitoring: Effective tracking allows NABARD to assess project success and replicate effective strategies.
  • Staff Training: Developing staff skills in green project management is crucial.
  • Collaboration: Working with government, banks, and NGOs strengthens resource mobilization and expertise.


NABARD’s Climate Strategy 2030 represents a significant step towards bridging the green financing gap in India.  By mobilizing resources and fostering innovation, this strategy has the potential to accelerate India’s transition towards a more sustainable future.

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