India’s increased focus on environmental funding and nature-based solutions reflects a growing recognition of the urgent need to address climate change. By combining governmental efforts, corporate social responsibility, and community-led initiatives, India aims to build a sustainable and resilient future, writes Rangeet Mitra, Community Driven Nature Based Solutions Expert.
As the world grapples with the escalating impacts of climate change, India is taking decisive steps to mitigate environmental damage and foster sustainable practices. The Union Budget 2025-26 reflects this commitment with increased allocations for environmental initiatives and a renewed focus on nature-based solutions. The Union Ministry of Environment, Forest and Climate Change has been allocated INR 3,412.82 crore in the 2025-26 Union Budget, marking a 9 percent increase from the previous year’s INR 3,125.96 crore. This financial boost aims to bolster ecosystem conservation, enhance wildlife protection, and expand India’s forest cover. Key budget highlights include:
- The National Mission for a Green India will receive INR 220 crore, up from INR 160 crore.
- Funding for natural resources and ecosystem conservation has risen from INR 30 crore to INR 50 crore.
- Biodiversity conservation funding has nearly tripled, from INR 3.5 crore to INR 10 crore.
- INR 35 crore has been allocated for aquatic ecosystem conservation, up from INR 23.5 crore.
- Project Tiger and Project Elephant will see increased funding, from INR 245 crore to INR 290 crore.
- Solar energy received the highest allocation of INR 26,549 crore, emphasizing rooftop solar projects under the PM Surya Ghar Yojana.
This budget aligns with India’s commitment to a green transition and its ambitious climate goals. The country aims to reduce the greenhouse gas (GHG) emission intensity of its economy by 45 percent by 2030 from 2005 levels and achieve net-zero emissions by 2070. As of 2024, India’s total GHG emissions stand at 2.9 billion metric tons of CO2 equivalent (mtCO2e), with projections indicating a 35 percent increase by 2050. The need for such investments is underscored by recent findings indicating severe economic repercussions from climate change.
A UNEP report estimates potential annual economic losses of $38 trillion by 2050. Weather-related extremes in the European Union have already resulted in EUR 738 billion in asset losses between 1980 and 2023, with a significant 22 percent of these losses occurring between 2021 and 2023. Experts warn that without mitigating measures, a 1.5–4°C rise in temperature could lower global real GDP by 1.0–3.3 percent by 2060 and by 2–10 percent by 2100. More than 100 million individuals in emerging nations are expected to fall below the poverty level by 2030 due to climate change.
To address these challenges, India is not only increasing government spending but also leveraging corporate social responsibility (CSR) initiatives. In fiscal year 2023-24, India’s CSR expenditure surged to INR 29,986.92 crore, a significant increase from INR 26,579.78 crore in the previous year. Education received the highest allocation at INR 10,085 crore, with substantial contributions also directed towards health, rural development, and sustainability. Environment, sustainability, and vocational skill development each received 13 percent of the total CSR funds. Central Public Sector Enterprises (CPSEs) also increased their CSR spending by 19 percent, reaching INR 4,911 crore. The top 10 CPSEs contributed 56.72 percent of the total CSR expenditure, showcasing their significant role in driving social impact initiatives.
India’s climate finance landscape is also evolving. Climate financing in India has increased from approximately $20 billion in 2021 to around $22.5 billion in both 2022 and 2023. The country contributed $1.28 billion in climate finance through multilateral development banks in 2022, exceeding the contributions of many developed countries. India has received USD 1.16 billion for climate projects through UN funds. However, the country still faces a substantial funding gap. India requires adaptation investments estimated to be at least INR 85.6 trillion (USD 1 trillion) or INR 5,733 billion (USD 67 billion) per year from 2015 to 2030. To bridge this gap, India is expected to add 25 GW to 28 GW of renewable energy capacity in fiscal year 2024-25. Researchers emphasize the feasibility of women-led, community-bound, localized nature-based solutions to mitigate climate change impacts. These solutions protect, restore, and manage natural ecosystems to address social, economic, and environmental challenges. Key nature-based solutions in India include:
- Protecting and restoring forests for carbon sequestration and biodiversity.
- Protecting mangroves and coral reefs to safeguard coastlines and marine life.
- Conserving and restoring wetlands for water management and habitat preservation.
- Creating urban green spaces, green roofs, blue roofs, and green walls to enhance urban resilience and quality of life.
India’s increased focus on environmental funding and nature-based solutions reflects a growing recognition of the urgent need to address climate change. By combining governmental efforts, corporate social responsibility, and community-led initiatives, India aims to build a sustainable and resilient future. These investments not only protect the environment but also contribute to economic growth and social well-being, ensuring a balanced and sustainable path forward. As the country moves towards its climate goals, the integration of nature-based solutions, increased renewable energy capacity, and sustained funding for environmental initiatives will be crucial. With continued commitment from both the public and private sectors, India is poised to play a significant role in global efforts to combat climate change and create a more sustainable world for future generations.