ANNOUNCEMENTS
Agriculture and allied sectors are the backbone of the Indian economy, contributing about 16% to the national GDP in FY24 and supporting nearly half the population. However, the sector faces growing challenges from climate change, including erratic rainfall, droughts, floods, heatwaves, and rising temperatures threatening productivity, rural livelihoods, and food security. According to India’s Biennial Update Report to the UNFCCC (2023), GHG emissions from agriculture rose by 4.5% between 2016 and 2019, reflecting increased vulnerability.
Despite these risks, climate finance allocations to agriculture remain critically low. The Climate Policy Initiative (2023) reported that globally, the AFOLU sector received just USD 7 billion in 2021/2022, only 11% of adaptation finance and an even smaller share of mitigation funds. In India, finance remains skewed toward sectors like renewable energy and transport, with only 25% of overall climate finance needs currently met.
Crucially, India lacks an operational Climate Finance Taxonomy to define, classify, and track investments in climate-resilient agriculture. While regions such as the EU, Brazil, China, and Sri Lanka have introduced green taxonomies, India’s framework is still under development.
This study addresses this gap by analysing global Climate Finance Taxonomies, expert consultation for the development of framework, and identifying potential activities, measures, projects and technologies for India’s agriculture and allied sectors. Drawing on global best practices, it aims to boost resource mobilisation, enhance transparency, mitigate greenwashing, and strengthen climate governance, aligned with India’s 2070 net-zero target and the Viksit Bharat 2047 vision.
Keywords: Climate Finance, Agriculture Resilience, Climate Finance Taxonomy, Sustainable Agriculture.
