Financing Adaptation in India: Recent Developments and Emerging Pathways
Background
Adaptation is a critical component in India’s national and subnational climate planning. India’s updated Nationally Determined Contribution (NDC), the Economic Survey 2025–26, and the forthcoming National Adaptation Plan (NAP) reflect this growing focus, while updated State Action Plans on Climate Change (SAPCCs) provide an important basis for translating climate risks and priorities into state-level actions and financing requirements.
As climate risks intensify, the need for adaptation finance is also rising. India’s Initial Adaptation Communication estimates that a cumulative expenditure of approximately INR 56.68 trillion (USD 684.6 billion[1]) will be required for adaptation under a business-as-usual (BAU) scenario till 2030. However, under increasing climate-induced pressures and developmental needs, adaptation finance requirements could be as high as INR 72 trillion (USD 854.16 billion[2]) (MoEFCC 2023).
Domestic public finance remains central to India’s adaptation response. However, the scale and diversity of requirements point to the need to strengthen public finance, diversify financing sources, and mobilize private capital where appropriate. At the sub-national level, states also approach adaptation within different climate, socioeconomic and fiscal contexts, making localized planning and financing approaches essential.
Against this backdrop, CPI’s latest Financing Adaptation in India: Taking stock of progress report examines the evolving climate risk and policy context, state-level adaptation finance requirements and financing approaches, along with pathways for strengthening public and private finance for adaptation.
Objectives
The webinar will launch the CPI’s latest Financing Adaptation in India: Taking stock of progress report and facilitate a conversation among policymakers, public and development finance institutions, private finance actors, researchers, and other relevant stakeholders on the evolving adaptation finance ecosystem in India. The specific objectives of the webinar are:
- Discuss how state-level adaptation planning and financing are evolving: drawing on the updated SAPCC and their approaches to identifying adaptation priorities, finance requirements, institutional arrangements, and implementation requirements.
- Discuss the role of public finance and the state’s broader financing context in supporting adaptation.
- Explore the complementarities between public and private finance for adaptation finance requirements, including enabling conditions that are essential to mobilize capital.
- Identify pathways to support translating adaptation priorities into required finance needs at the sub-national level.
[1] Given that (MoEFCC 2023) signifies 2023–24 as the base year of their analysis, the conversion assumes an annual average exchange rate of 1 USD: 82.79 INR (Available at: https://rbidocs.rbi.org.in/rdocs/Publications/PDFs/136T_29082025B3A87298ECDA401D91920EB7555802C1.PDF )
[2] As per PIB 2024. (Available at:
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2082745®=3&lang=2 )
