Institutions like World Bank need to become climate banks, suggests Amitabh Kant

New Delhi: Speaking at India's flagship annual conference, Raisina Dialogue 2024, India's G20 sherpa, Amitabh Kant, emphasised the need for institutions like the World Bank to transform into climate banks, so as to take on the challenges emanating from climate change.
Speaking at the conference on Wednesday, he also highlighted the necessity to de-risk global projects, pointing out the disparity in interest rates -- 2 per cent for the developed world, 8 per cent for India, 16 per cent for African countries, and 22 per cent for sub-Saharan countries.
India has always advocated for a concrete action on climate funding and transfer of technology for climate mitigation. At recently held COP in Dubai, India suggested for a clear roadmap on climate financing.
Climate finance typically refers to any financing that seeks to support mitigation and adaptation actions that will address climate change.
Further, Kant proposed the establishment of a global agency to de-risk international projects and ensure their commercial viability.
Kant said that international financial institutions must undergo a redesign and restructuring to align with the challenges of climate change.
"Establishing the right policy frameworks is crucial for engaging the private sector in renewable energy efforts, as demonstrated by India's success," Kant said at the conference.
"While converting electricity to clean energy is vital, addressing hard-to-abate sectors like coal, steel, cement, and others requires a shift to clean energy, constituting 80 per cent of global energy consumption,"
"India aims to transform from a fossil fuel importer to a clean energy exporter by "Reforms in international financial institutions, coupled with policy frameworks, can facilitate the necessary resources for green initiatives. India's commitment to sustainable practices and the importance of nudging people towards behavioral changes for a pro-planet lifestyle were highlighted," he said.
He suggested that the global south must adopt a different, sustainable approach to development, learning from the mistakes of the industrialised western world.
Nations that are regarded as having a relatively low level of economic and industrial development are referred to as the Global South.
"Ultimately, going green will attract capital and enhance citizens' quality of life, avoiding historical errors in the pursuit of progress," Kant said.
At COP26 held in 2021 in Glasgow, India committed to an ambitious five-part "Panchamrit" pledge. They included reaching 500 GW of non-fossil electricity capacity, generating half of all energy requirements from renewables, to reducing emissions by 1 billion tonnes by 2030.
India as a whole also aims to reduce the emissions intensity of GDP by 45 per cent. Finally, India commits to net-zero emissions by 2070.