Union Minister Shri Bhupender Yadav Highlights Green Finance at FICCI’s 4th Edition of LEADS
New Delhi, September 11, 2025 – Union Minister for Environment, Forest and Climate Change, Shri Bhupender Yadav, delivered a compelling keynote address at the 4th Edition of FICCI’s LEADS summit, themed “Collaborations for Growth in a Transformative World.” Focusing on the pivotal role of green finance, the Minister underscored its importance as the backbone of resilient, competitive, and sustainable economies. He emphasized that aligning economic progress with environmental sustainability is not just a necessity but a moral imperative for securing the planet’s future.
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A Call for Collaborative and Sustainable Growth
In his address, Shri Yadav traced the history of industrialization, noting that two centuries of unchecked growth have led to environmental degradation, with global temperature rises of 1.5 to 2 degrees Celsius serving as stark reminders of unsustainable practices. He urged industries to look beyond profit margins and account for the hidden environmental costs of their operations. “The pathway to building economies of the future rests on aligning progress and profits with sustainability, placing people and ecosystems at the center of growth,” he stated.
The Minister highlighted the dual challenge facing nations like India: meeting the developmental aspirations of a young, ambitious population while mitigating the impacts of climate change, biodiversity loss, and ecological degradation. Under the leadership of Prime Minister Shri Narendra Modi, India is pursuing an ambitious path that balances economic growth with ecological responsibility. Shri Yadav lauded the Indian industry, represented by FICCI, for embodying this spirit of sustainable progress.
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Green Finance: The Backbone of Resilient Economies
Shri Yadav positioned green finance as a transformative force, not a niche intervention but the foundation of competitive and resilient economies. He defined green finance as the restructuring of capital flows to ensure that investments in sectors like infrastructure, agriculture, transport, and industry yield both economic returns and environmental benefits. “Green financing must form economic systems where growth is interwoven with ecological well-being and the health of communities,” he emphasized.
India has taken significant steps to bolster investor confidence in its green growth potential. The issuance of sovereign green bonds has attracted strong global interest, signaling trust in India’s sustainable development trajectory. Regulatory bodies such as the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) are enhancing transparency, accountability, and responsible disclosure in green financial instruments to ensure long-term stability. Additionally, India is promoting blended finance mechanisms, leveraging public funds to de-risk private investments in areas such as renewable energy, energy efficiency, electric mobility, waste-to-wealth initiatives, and nature-based solutions. With India requiring over USD 10 trillion by 2070 to achieve its net-zero ambitions, these mechanisms are critical.
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Core Principles of India’s Climate Action
The Minister outlined three guiding principles for India’s climate action strategy:
- Climate Finance as Development Finance: Climate finance is inseparable from development finance, as sustainable investments drive both economic and environmental progress.
- Foundation of National Security and Competitiveness: Clean energy, efficient cities, climate-smart agriculture, and resilient infrastructure are not optional add-ons but essential components of national security and industrial competitiveness.
- Leadership in Future Value Chains: Countries that prioritize green investments today will dominate future industrial and trade value chains.
Shri Yadav also stressed the moral responsibility of developed nations to support the global South, noting that the UNFCCC’s target of USD 300 billion by 2035 is insufficient to address the scale of the climate challenge.
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Unlocking Climate Finance Through Article 6 of the Paris Agreement
A key focus of the Minister’s address was the operationalization of Article 6 of the Paris Agreement, which enables countries to trade climate outcomes bilaterally and multilaterally through high-integrity carbon markets. These markets, governed by transparency and accountability, can unlock billions in climate finance while providing access to new technologies. Shri Yadav quoted UNEP Executive Director Inger Andersen, stating, “Finance is the make-or-break issue for climate action.” Article 6 mechanisms incentivize emission reductions for buyer countries and provide seller countries with financial resources and capacity-building opportunities.
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Green Credit Programme: A Step Toward Inclusive Sustainability
Shri Yadav highlighted the Green Credit Programme, launched in October 2023, as an innovative tool to encourage voluntary environmental actions such as eco-restoration. On August 29, 2025, the Ministry of Environment, Forest and Climate Change (MoEFCC) introduced a revised methodology for the programme, incorporating:
- Direct private sector participation to mobilize capital.
- Mandatory minimum restoration commitments to ensure measurable outcomes.
- Expanded scope for credit utilization to enhance flexibility.
These revisions aim to drive private investment while ensuring transparency and tangible environmental benefits.
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India’s Leadership in Green Innovation
As the fastest-growing major economy, India is well-positioned to lead the global green transition. With a robust renewable energy expansion, a thriving start-up ecosystem, and a young, skilled workforce, the country is poised to unlock investments in sectors such as:
- Solar and wind power
- Green hydrogen
- Sustainable agriculture
- Circular economy initiatives
- Climate-resilient infrastructure
These sectors promise to generate millions of jobs, enhance competitiveness, and secure India’s energy future. Shri Yadav emphasized the need for inclusive financing mechanisms that benefit MSMEs, farmers, and vulnerable communities. He also highlighted the role of financial technology, digital platforms, and AI-led approaches in making green finance more efficient, transparent, and scalable. Instruments like green bonds, sustainability-linked loans, carbon markets, and impact investment funds must transition from niche to mainstream, he urged.
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A Moral Imperative for Future Generations
In a powerful call to action, Shri Yadav described the failure to finance the green transition as a “moral failure” toward future generations. He warned that prioritizing short-term gains over long-term sustainability would jeopardize the survival and well-being of those to come. Under Prime Minister Modi’s leadership, India remains committed to pioneering sustainable growth, fulfilling its global climate responsibilities, and safeguarding the planet’s future.
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Conclusion
Shri Bhupender Yadav’s address at FICCI’s LEADS 2025 underscored the transformative potential of green finance in building resilient, inclusive, and sustainable economies. By aligning economic progress with ecological well-being, fostering global collaborations, and leveraging innovative financial mechanisms, India is charting a path toward a greener, more prosperous future. The Minister’s message was clear: green finance is not just an economic tool but a moral commitment to future generations and the planet we all share.
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