India's path to net zero by 2070 will call for an estimated $515 billion in climate finance every year. Today's financing flows meet only a fraction of this need. Closing this gap calls for a more diversified approach to climate finance, one that extends investment beyond the sectors that currently attract the most capital. Clean energy has emerged as a frontrunner, helped by clear policies and mature markets. Transport and industry hold equally critical potential for decarbonization, but need more tailored financial approaches given their scale and capital intensity.

This working paper:

  • Maps climate finance flows and instruments across India's power, transport, and industry sectors
  • Identifies underused and missing instruments, including blended finance, credit guarantees, viability gap funding, and transition bonds, that can help mobilize private capital
  • Draws on case studies from G20 countries, contextualized to India's institutional, regulatory, and market conditions
  • Offers policy, institutional, and implementation recommendations to align climate finance with the scale and urgency of India's transition