Govt plans National Green Financing Institution to achieve climate goals: NITI Aayog
Last Updated: Feb 25, 2025, 03:43:00 PM IST
NITI Aayog is planning to establish a National Green Financing Institution to meet India's 2070 net-zero target due to insufficient climate finance. The institution will aggregate green capital from various sources to reduce capital costs. India's climate goals include reducing GDP emission intensity by 45% and achieving 50% non-fossil fuel electric power capacity by 2030.
The government is working to set up a National Green Financing Institution to support its net-zero target by 2070, as current finance flows for climate initiatives remain much lower than the desired levels, NITI Aayog has said.
"A dedicated National Green Financing Institution may be envisaged to bridge the huge gap," the Aayog said in its annual report 2024-25. Trump-Modi Meet The mega MIGA, MAGA plans of India's Modi and US' Trump Trump says India has more tariffs than others Trump's 'golden rule' for imposing reciprocal tariffs It added that the primary purpose of the institution will be to aggregate green capital from different sources and lower the cost of capital.
NITI Aayog said it is examining structuring mechanisms for operationalising a potential National Green Financing Institution, including a bank modelled on NaBFID/NABARD, repurposing existing institutions like IREDA; Climate Fund in GIFT city, Green InvIT, etc. (non-exhaustive) along with analysing best practices from Green Banks around the world.
As part of its climate commitments or Nationally Determined Contributions (NDCs) submitted to the United Nations Framework Convention on Climate Change (UNFCCC) in 2022, India aims to reduce its GDP emission intensity by 45 per cent by 2030 compared to 2005 levels.
It also aims to achieve 50 per cent of its installed electric power capacity from non-fossil fuel sources by 2030.
India has also pledged to create an additional carbon sink of 2.5 to 3 billion tonnes through additional forest and tree cover by 2030.
The Cabinet has approved a Rs 7,145.14 crore, 117.7-km access-controlled greenfield highway between Kanpur and Kabrai on NH-34 in Uttar Pradesh. The BOT toll project is designed to cut travel time from 3.5 hours to 1.5 hours, strengthen links to the Kabrai mining belt and Bundelkhand corridor, and lower logistics friction for freight, construction material and agricultural movement.
NHAI has launched Multi-Lane Free Flow tolling at Manoharpura Toll Plaza on the Delhi-Jaipur section of NH-48 in Rajasthan. The barrier-free FASTag and ANPR system matters because it cuts toll-stop idling on a busy highway corridor, but users now need proper FASTag balance and must clear any e-notice within 72 hours to avoid double charges.
India has reset windfall-linked export duties from July 1, 2026 by raising the levy on petrol exports to Rs 4 per litre while cutting diesel and aviation turbine fuel export duties to Rs 8.50 and Rs 7.50 per litre respectively. The move matters because it changes refining economics, export incentives and the downstream pressure points that can eventually shape domestic fuel availability, airline costs and broader transport pricing.
State-run oil companies cut the 19-kg commercial LPG cylinder price by Rs 183.50 from July 1, 2026 and reduced aviation turbine fuel by Rs 5 per litre to about Rs 110 in Delhi. The move offers relief to restaurants, hotels and airlines, but household LPG, petrol and diesel users are still waiting.
