Latest news with #GlobalLandscapeofClimateFinance
Bangkok Post
17-07-2025
- Business
- Bangkok Post
Taking stock of nation's climate finance
If the ravages of extreme weather worldwide were not enough to convince anyone of the need to urgently address and adapt to climate change, consider a sobering fact delivered by the World Meteorological Organization (WMO). In its "State of the Global Climate 2024" report, it said last year was "likely the first calendar year to be more than 1.5C above the pre-industrial era, with a global mean near-surface temperature of 1.55 ± 0.13C above the 1850-1900 average". This makes 2024 the warmest year in the 175 years that have been observed, according to this seminal report which was released in March. The record-breaking year "underlined the massive economic and social upheavals from extreme weather and the long-term impacts of record ocean heat and sea-level rise". Leading concerns Thailand serves as a microcosm of this urgent need. The country has already ranked 30th in this year's list of countries that are most vulnerable to climate change, according to human rights organisation Germanwatch. The United Nations Economic and Social Commission for Asia and the Pacific (Unescap) estimates that Thailand's average annual damage from climate change will amount to almost 1 trillion baht, or 6.6% of the country's GDP per year, under the 2-degree scenario. The cumulative damage of climate change on Thailand's agriculture sector alone is estimated to be between 17.5–83.8 billion baht per year between 2021-2045. Naturally, Thailand needs significant investments in climate mitigation to keep up its commitment on the global stage. In 2024, the Department of Climate Change and Environment estimated that a 30% reduction in carbon emissions by 2030 would require a 5 trillion baht investment in climate finance, while a 40% reduction would require an investment of 7 trillion baht. Tracking finance flows One major drawback for Thailand is the lack of any sense of urgency as well as the financial resources for both climate mitigation (to lower greenhouse gas emissions) and climate adaptation to reduce the negative impacts of climate change. Thailand still lacks a clear picture of the current climate finance flows in the country. As Climate Finance Network Thailand (CFNT) was founded in 2024 with the aim of catalysing more meaningful climate finance in Thailand, we took it upon ourselves to compile as much data from publicly available sources to construct a public "Climate Finance Tracker" (henceforth referred to as the "Tracker") for Thailand -- akin to the Global Landscape of Climate Finance report produced annually by the Climate Policy Initiative (CPI), the US-based organisation that focuses on climate finance and policy. We focus on two main activities: climate mitigation and climate adaptation. We found sources of climate finance come from various areas such as government bodies, multilateral development banks, national and multilateral climate funds, state-owned enterprises, specialised financial institutions, domestic public funds, and international financial institutions. These funds are typically directed through official development assistance (ODA), concessional loans, grants, or public investment programmes. On the other hand, private climate finance also comes from the private sector, for example, commercial financial institutions, corporations, impact investors (including philanthropy), institutional investors, and other non-state actors. It includes investments aligned with clear climate-related objectives through mechanisms such as green bonds, green loans, and blended finance. One key principle used by the CPI that we adopted for our Tracker is the focus on direct investment aligned with climate mitigation and adaptation efforts within the country. In line with the CPI's methodology, the Tracker also excludes any financial flows that do not represent new investments targeting climate-related outcomes. Investments we excluded from our calculation are secondary markets, refinancing, the transfer of ownership of existing assets, and public subsidies that are primarily designed to reimburse initial investment costs, such as those supporting private research and the development of new technologies. Like the CPI, we exclude "carbon emissions lock-in" projects. This refers to cases where investment clings to fossil-fuel based infrastructure despite the low-emission alternatives available that could be deployed. One example of a carbon lock-in project would be an upgrade to improve the efficiency of coal-fired power plants. Financing challenges Climate adaptation is a much more complicated affair to track. Each activity has its own context and characteristics, and a lot of time, effort and resources are needed to monitor adaptation activities to judge whether they are "successful" or not. CFNT attempts to address this challenge by using the Tailwind Taxonomy, a publicly available model to audit the performance of climate adaptation and resilience projects. The model was developed by Tailwind Futures, a strategic venture fund. We chose climate adaptation projects that address the specific vulnerabilities to climate change and climate-related risk, and make assessments from the evidence-based outcomes of these activities. What have we found? From tallying over 2,800 project-level and organisation-level data carried out from year 2018 to May of this year, we conclude that at least 1.7 trillion baht has been invested in climate mitigation projects. Some 82% of this sum derives from corporations, commercial banks, and state-owned enterprises. In terms of contributions by sector, 64% of total investment comes from energy and transport. Zooming into sub-sectors, the most popular climate mitigation activities are rooftop solar installations (17% of the total), electric vehicles (10%), and mass transit and mass railway projects (8%). We also look into climate adaptation activities and projects. Based on data from 670 projects, we estimate that during 2020-2024, Thailand spent 148 billion baht on climate adaptation projects. Some 95% of the money came from Thailand's central government, followed by multilateral climate funds (1.8%). Zooming into sectors, sustainable water management, urban resilience, and sustainable agriculture are key focal areas for climate adaptation. Those who are interested in perusing our Tracker -- reading our detailed methodology and downloading slides featuring our key highlights -- can do so by visiting our website at By making the Tracker publicly accessible and updating the database annually, we hope to assist policymakers in identifying the gap between existing climate finance flows and demands. We seek to jumpstart conversations on climate finance, as well as enabling better allocation of funds into the most urgently needed sectors and sub-sectors in Thailand, especially to those that are the most vulnerable to the worsening impacts of climate change.
Hindustan Times
31-05-2025
- Business
- Hindustan Times
India's climate finance taxonomy: Green compass for Viksit Bharat
India has taken a decisive and future-ready step in its climate journey. With the release of the draft Framework for India's Climate Finance Taxonomy by the department of economic affairs under the Union ministry of finance, the country has moved to build a transparent, accountable, and investment-friendly ecosystem for green finance. This move not only fulfils finance minister Nirmala Sitharaman's Union Budget 2024 promise but also signals India's readiness to lead in defining what climate-aligned development looks like in the Global South. In a world facing cascading climate and economic shocks, this taxonomy is not just a bureaucratic tool—it is a strategic lever for systemic transformation. A climate finance taxonomy serves as a standardised classification system to help policymakers, investors, and businesses identify and support economic activities that contribute to climate goals. It brings coherence, trust, and comparability into the highly fragmented world of green finance. For a country like India--poised to become a $5 trillion economy and simultaneously facing the world's most complex climate risks—such a taxonomy is both timely and necessary. Although climate finance has expanded at an unprecedented pace in recent years—reaching $ 1.46 trillion in 2022—it remains significantly below what is required to meet global climate goals. According to one of the reports titled Global Landscape of Climate Finance, an estimated $ 7.4 trillion in annual investment is needed worldwide through 2030. Of this, at least $ 2.4 trillion must be directed to emerging markets and developing economies (EMDEs), excluding China. Notably, EMDEs are among the most vulnerable to the adverse effects of climate change, despite contributing relatively little to global greenhouse gas emissions. The document's release also aligns with long-standing global expectations that emerging economies must improve domestic enabling environments to better absorb international climate finance. India's taxonomy does exactly that--without compromising on national priorities. Designed as a living document, the Indian taxonomy is built to evolve with changing climate needs, technological innovations, and market shifts. The initial draft lays out a comprehensive approach across three key climate pillars: mitigation, adaptation, and transition of hard-to-abate sectors. From power and transport to agriculture and water security, the taxonomy identifies critical sectors for decarbonisation and climate resilience. Particularly significant is its treatment of hard-to-abate sectors such as cement, iron, and steel--often ignored in green finance discussions due to their complexity. The classification mechanism is equally forward-looking. Activities will fall under climate-supportive or transition-supportive categories, with further tiering to accommodate the realities of Indian industry and infrastructure. This allows the taxonomy to remain ambitious without being exclusionary--a fine balance that many global taxonomies fail to achieve. The strategic timing of this release cannot be overstated. As the world navigates the Baku to Belem roadmap under Brazil's COP30 presidency--tasked with delivering $1.3 trillion in annual climate finance—the onus is on developing nations to demonstrate domestic readiness. India's taxonomy sends a strong, confident message to global stakeholders: We are ready, we are credible, and we are investing in our own transformation. Moreover, India's alignment with Association of South East Asian Nations (Asean) principles in the taxonomy is both politically and economically significant. It reinforces regional cooperation while setting a new benchmark for emerging economies seeking to build their own sustainable finance pathways. Notably, as of April 2024, only 10% of developing and emerging economies had published green finance taxonomies. India's move positions it as a trailblazer, opening the door to more bilateral climate finance agreements, blended finance models, and responsible private investment. The taxonomy is not just about mobilising global capital--it's about structuring India's transition to a Viksit Bharat by 2047. It operationalises the vision of climate-smart growth, making sure that every rupee spent in the name of sustainability delivers long-term climate, social, and economic value. Through this taxonomy, India is sending a message that green finance is not a luxury--it is core to our development planning, to our food and water security, to job creation, and to building resilient infrastructure. It strengthens the Atmanirbhar Bharat agenda by enabling industries to attract climate-aligned investment and innovate towards clean technologies. In short, the taxonomy is a bridge between India's climate commitments and its economic aspirations. While the draft framework is ambitious and thoughtfully constructed, its real success will depend on implementation, governance, and stakeholder uptake. Future iterations must provide more detailed sectoral annexures, lay out performance thresholds, and develop mechanisms for transparency, reporting, and verification. Moreover, capacity-building across state governments, financial institutions, and industries will be crucial to making the taxonomy not just a compliance tool, but a strategic enabler of green growth. The public consultation process opens until June 25, 2025, is a valuable opportunity to shape a more inclusive, effective taxonomy that works for all stakeholders—from large corporates to grassroots entrepreneurs. India's draft climate finance taxonomy marks a pivotal shift in our climate narrative. It offers a roadmap that's not only aligned with the Paris Agreement but deeply rooted in Indian realities. In a world divided by climate finance promises and delivery gaps, India is showing what domestic leadership looks like. This is what leadership for a Viksit Bharat looks like: Bold, thoughtful, and grounded in both science and sovereignty. This article is authored by Kirit P Solanki, former MP, Lok Sabha and Pradeep Singhvi, executive director, Energy and Climate Practice, Grant Thornton Bharat LLP.
