India’s Climate Finance: Mitigation Thrives, Adaptation Lags
India’s Climate Finance: Mitigation Thrives, Adaptation Lags
IN · Published Nov 7, 2026
• India's annual climate finance averaged ₹8.20 trillion (US$100.4 billion) during FY2022-23 and FY2023-24, according to the Climate Policy Initiative's Landscape of Green Finance in India 2026 report.
• Of this, ₹6.685 trillion (US$81.9 billion) was allocated for mitigation, while only ₹1.510 trillion (US$18.5 billion) went towards adaptation.

Impact & Risks

The disparity in climate finance allocation poses significant risks to vulnerable communities in India. While mitigation projects attract private investment, adaptation efforts for small farmers, coastal communities, and informal workers rely on insufficient public funding. This imbalance leaves these groups exposed to climate-related disasters such as droughts, cyclones, and heat stress. Without adequate adaptation finance, the most vulnerable populations may struggle to protect their lives and livelihoods, exacerbating social and economic inequalities.

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