Green finance must become backbone of competitive economies: Bhupender Yadav at FICCI LEADS 2025

Union Minister for Environment, Forest and Climate Change Bhupender Yadav has called for embedding Green Finance into the core of economic systems, describing it as “the backbone of competitive and resilient economies” rather than a niche intervention.

Addressing the 4th edition of FICCI’s LEADS conference on the theme “Collaborations for Growth in a Transformative World”, the Minister underlined that green financing must drive a systemic shift in how capital flows are directed.

“Every investment—in infrastructure, agriculture, transport, or industry—should not only generate economic returns but also strengthen sustainability,” he said.

Mr Yadav stressed that green finance should form the foundation of economic models where growth is interwoven with ecological well-being. This approach, he noted, would enhance India’s competitiveness and resilience in a rapidly transforming global economy.

The Minister’s remarks come at a time when India is pushing forward ambitious climate and sustainability goals, from renewable energy expansion to nature-based solutions.

He pointed out that the rising global temperature thresholds—1.5 to 2 degrees Celsius—symbolise not merely climate science but the consequences of unsustainable growth.

The industry, he argued, must be mindful not only of its profit figures but also of the environmental costs hidden behind them.

Highlighting steps taken by India to build confidence in green investments, the Minster said India will require over USD 10 trillion by 2070 for achieving its net zero ambitions, such mechanisms are vital to build climate resilient economy.

He observed that developed countries bear a moral responsibility to support the global South, observing that the UNFCCC process target of USD 300 billion by 2035 is inadequate and does not reflect the scale of the challenge.

Recognising the role of carbon finance, Yadav highlighted the critical importance of operationalising Article 6 of the Paris Agreement. He explained that the Article 6 mechanisms allow countries to bilaterally and multilaterally trade climate outcomes, creating both a financial incentive and access to new technologies.

“Such tools, are not only expedite emission reductions for buyer countries but also enable seller countries to access finance and capacity development” he said.

Quoting UNEP Executive Director Inger Andersen, he reminded the gathering that “Finance is the make-or-break issue for climate action.”

The Minister called upon stakeholders to view the financing of the green transition as an ethical and moral responsibility to future generations. A failure to act now, he warned, would be tantamount to placing short-term comfort above the survival and well-being of future generation

The Minister also spoke about the Government of India’s Green Credit Programme, launched in October 2023, as an innovative instrument to encourage individuals and institutions to voluntarily undertake positive environmental action such as eco-restoration.