{"id":77901,"date":"2026-06-27T16:42:45","date_gmt":"2026-06-27T11:12:45","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=77901"},"modified":"2026-06-27T16:42:51","modified_gmt":"2026-06-27T11:12:51","slug":"green-capital-developing-economies","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/editorial-analysis\/27-06-2026\/green-capital-developing-economies","title":{"rendered":"Mobilising Green Capital For Developing Economies: Challenge &#038; Way Forward"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Environment<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The <strong>Green Transition Board<\/strong> began its work with members stressing that the global climate agenda has <strong>moved beyond setting targets<\/strong> to mobilising investment and ensuring implementation.<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-group has-background\" style=\"background-color:#fff2cc\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p><strong>Green Transition Board<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It was announced at the <strong>Raisina Dialogue 2026.<\/strong><\/li>\n\n\n\n<li>It aims to provide policy recommendations on <strong>climate finance, multilateral development bank (MDB) reforms<\/strong>, and India&#8217;s transition towards <strong>2,500 GW of clean energy capacity by 2047<\/strong> and <strong>net-zero emissions by 2070<\/strong>.<\/li>\n\n\n\n<li><strong>Secretariat:<\/strong> Observer Research Foundation (ORF) Middle East<\/li>\n\n\n\n<li><strong>Primary Focus:<\/strong> India\u2019s green transition<\/li>\n\n\n\n<li><strong>Broader Objective:<\/strong> Develop policy pathways for emerging markets and developing economies (EMDEs).<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About Green Transition<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It is a shift from carbon-intensive economic systems to a <strong>low-carbon, climate-resilient and sustainable development model<\/strong>.<\/li>\n\n\n\n<li>It seeks to transform energy, industry, transport and agriculture along with ensuring economic growth and social inclusion.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Need for Green Transition<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Climate Change Mitigation: <\/strong>Fossil fuel combustion accounts for nearly <strong>75% of global greenhouse gas emissions<\/strong>.\n<ul class=\"wp-block-list\">\n<li>A green transition is necessary for limiting global warming to 1.5\u00b0C, as set out in the Paris Agreement.<\/li>\n\n\n\n<li>Transitioning to clean energy is essential to limit global warming to <strong>1.5\u00b0C<\/strong>, as envisaged under the Paris Agreement.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Energy Security: <\/strong>Dependence on imported fossil fuels exposes economies to geopolitical disruptions and price volatility.\n<ul class=\"wp-block-list\">\n<li>Renewable energy enhances <strong>self-reliance and energy sovereignty<\/strong>.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Sustainable Economic Growth: <\/strong>Green sectors create employment opportunities in renewable energy, battery manufacturing, EVs and green hydrogen.\n<ul class=\"wp-block-list\">\n<li>The <strong>International Renewable Energy Agency (IRENA)<\/strong> estimates millions of jobs can be generated globally through clean energy expansion.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Public Health Benefits: <\/strong>Reduced air pollution lowers health costs and improves quality of life.<\/li>\n\n\n\n<li><strong>Achieving SDGs: <\/strong>Green transition contributes directly to SDGs relating to climate action, affordable energy, sustainable cities and responsible consumption.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Current State of the Green Transition in India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India has succeeded in exceeding more than 50% of the share of installed electricity capacity based on non-fossil fuel sources ahead of its Nationally Determined Contribution (NDC) deadlines.<\/li>\n\n\n\n<li>Capacity in renewable energy (including large hydro) has reached more than 230 GW.<\/li>\n\n\n\n<li>The ambitions of India include:\n<ul class=\"wp-block-list\">\n<li>500 GW non-fossil fuel capacity by 2030;<\/li>\n\n\n\n<li>50% cumulative electric power capacity from non-fossil sources by 2030;<\/li>\n\n\n\n<li>Net zero emissions by 2070;<\/li>\n\n\n\n<li>2,500 GW capacity in clean energy by 2047.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>New Areas:<\/strong> The fast growth in solar and wind energy generation; scaling up of the production of green hydrogen; the increase in electric mobility and battery storage; and development of rooftop solar energy under the PM Surya Ghar Yojana.<\/li>\n\n\n\n<li>India is set to achieve net-zero much before 2070, given the availability of proper finance and technology.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Issues and Concerns in Green Transition<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Climate Finance Gap: <\/strong>Developing countries face severe shortages in affordable long-term finance.\n<ul class=\"wp-block-list\">\n<li>Global climate finance commitments remain inadequate and unevenly distributed.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Limited Private Investment: <\/strong>Perceived risks in emerging economies discourage private investors.\n<ul class=\"wp-block-list\">\n<li>Many projects lack the ability to achieve bankability.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Multilateral Development Banks Reform Needed:<\/strong> Existing MDBs have a limited lending capacity.\n<ul class=\"wp-block-list\">\n<li>Developing countries require concessional finance and participation in the decision-making.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Technology Transfer Issues: <\/strong>The cost, intellectual property rights and lack of access prevent using advanced technologies.<\/li>\n\n\n\n<li><strong>Grid and Storage Problems:<\/strong> The integration of large quantities of renewable energy requires investments in transmission grids, energy storage facilities, smart grids, and reliable supply chains.<\/li>\n\n\n\n<li><strong>Problem of Just Transition: <\/strong>Transition away from fossil fuels may cause negative consequences for workers and regions relying on coal-based industries.<\/li>\n\n\n\n<li><strong>Dependency on Critical Minerals:<\/strong> The use of renewable technologies is based on lithium, cobalt and rare earth elements.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Related Global Initiatives\/Programs<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Paris Agreement (2015):<\/strong> The goal is to restrict global temperature increase to well below 2\u00b0C and preferably to 1.5\u00b0C.<\/li>\n\n\n\n<li><strong>Conferences of the Parties (under UNFCCC): <\/strong>It guides the actions of the world in the climate field; COP30 (Brazil) will focus on implementation and climate finance.<\/li>\n\n\n\n<li><strong>UN Sustainable Development Goal 7:<\/strong> It provides access to affordable, reliable, sustainable and modern energy for all.<\/li>\n\n\n\n<li><strong>Global Stocktake:<\/strong> It evaluates the collective progress on achieving Paris Agreement objectives.<\/li>\n\n\n\n<li><strong>Loss and Damage Fund: <\/strong>It helps the most vulnerable developing countries in dealing with climate impacts.<\/li>\n\n\n\n<li><strong>International Solar Alliance (ISA):<\/strong> A global initiative led by India and France.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>India&#8217;s Initiatives and Efforts<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>National Action Plan on Climate Change (NAPCC): <\/strong>Missions on solar energy, energy efficiency and sustainable habitats.<\/li>\n\n\n\n<li><strong>Green Hydrogen Mission: <\/strong>The goal is to transform India into a global producer and exporter of green hydrogen.<\/li>\n\n\n\n<li><strong>PM Surya Ghar Muft Bijli Yojana:<\/strong> It encourages the adoption of rooftop solar energy in households.<\/li>\n\n\n\n<li><strong>Production Linked Incentive (PLI) Scheme:<\/strong> The scheme stimulates domestic manufacturing of solar modules and advanced chemistry cells.<\/li>\n\n\n\n<li><strong>FAME Scheme:<\/strong> It supports adoption of electric vehicles.<\/li>\n\n\n\n<li><strong>Biofuel Policy:<\/strong> The policy promotes ethanol blending and alternative fuels.<\/li>\n\n\n\n<li><strong>Sovereign Green Bonds:<\/strong> They finance the construction of green infrastructure projects.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Way Forward: Strengthening Green Transition<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Make reforms to MDBs for expanding concessional climate finance and de-risking investments.<\/li>\n\n\n\n<li>Develop innovative financial instruments, such as blended finance and green bonds.<\/li>\n\n\n\n<li>Invest in grid infrastructure, energy storage and transmission grids.<\/li>\n\n\n\n<li>Encourage international cooperation for technology transfer and capacity building.<\/li>\n\n\n\n<li>Implement just transition through skill building, social protection and regional diversification.<\/li>\n\n\n\n<li>Increase domestic manufacturing of renewable energy technologies and processing of critical minerals.<\/li>\n\n\n\n<li>Improve project preparation to turn climate commitments into bankable investments.<\/li>\n\n\n\n<li>Foster South-South cooperation among emerging economies to learn best practices.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Creation of the Green Transition Board is a sign of India&#8217;s willingness to move from climate ambitions to climate implementation.<\/li>\n\n\n\n<li>The board can help in bridging the gap between ambitions and actions through focusing on climate finance, reform of MDBs, technology access and mobilization of private investments<\/li>\n\n\n\n<li><strong>Recommendations of the board<\/strong> aim to define India&#8217;s path to net-zero by 2070 and become a model for other developing economies seeking sustainable development.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background has-fixed-layout\" style=\"background-color:#fff2cc\"><tbody><tr><td><strong>Daily Mains Practice Question<\/strong><br><strong>[Q] <\/strong>Discuss the major challenges in mobilising green finance for developing countries. Suggest measures to strengthen climate finance architecture and accelerate a just green transition.\u00a0<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><a href=\"https:\/\/indianexpress.com\/article\/india\/key-challenge-to-mobilise-green-capital-for-developing-economies-nk-singh-10759524\/\" target=\"_blank\" rel=\"noopener\">Source: IE<\/a><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong>Published on:<\/strong> 27 June, 2026<\/p>\n<p>The Green Transition Board began its work with members stressing that the global climate agenda has moved beyond setting targets to mobilising investment and ensuring implementation.<\/p>\n","protected":false},"author":4,"featured_media":77902,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[22],"tags":[],"class_list":["post-77901","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-editorial-analysis"],"acf":[],"jetpack_featured_media_url":"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/06\/mobilising-green-capital-for-developing-economies.webp","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/77901","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=77901"}],"version-history":[{"count":1,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/77901\/revisions"}],"predecessor-version":[{"id":77903,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/77901\/revisions\/77903"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media\/77902"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=77901"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=77901"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=77901"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}