NABARD Unveils Climate Strategy 2030

1. The National Bank for Agriculture and Rural Development (NABARD) recently launched its Climate Strategy 2030 document  On Earth Day
2. It aims to address India's escalating need for green financing.
3. Despite the pressing demand for approximately $170 billion annually to reach a cumulative total of over $2.5 trillion by 2030, current green finance inflows in India remain critically insufficient.
4. As of 2019-20, India has mobilized only $49 billion in green financing, which was less than the required amount.
5. Most of the funds were earmarked for mitigation, with only $5 billion allocated for adaptation and resilience.
6. This reflects minimal private sector participation in these sectors due to challenges in bankability and commercial feasibility.

NABARD's Climate Strategy 2030 is structured around four key pillars:

1. Accelerating green lending across sectors.
2. Playing a broader market-making role.
3. Internal green transformation of NABARD.
4. Strategic resource mobilization.

Role of NABARD:

1. NABARD acts as the lead organization concerned with policy, planning and operations in the field of credit for agriculture and other rural activities.
2. Established in 1982, NABARD was set up to support and promote agriculture and rural development through various initiatives.
3. With a strong regional presence across the country, NABARD has played an important role in the development of agricultural and non-agricultural sectors. Its financial, developmental and supervisory functions enable it to influence almost every aspect of the rural economy.

Functions of NABARD:

1. Providing refinance support.
2. Building rural infrastructure.
3. Preparing district-level credit plans.
4. Guiding and motivating the banking industry in achieving credit targets.
5. Supervising Cooperative Banks and Regional Rural Banks (RRBs) for sound banking practices.
6. Designing new projects for rural development.
7. Implementing Central government development schemes.
8. Training handicraft artisans and providing them with a marketing platform.

NABARD's Climate Strategy 2030 not only strengthens its commitment towards environmental stewardship, but also positions it as a key player in India's transition towards a resilient and sustainable economy.

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