Topic– Indian Economy and issues relating to planning, mobilization of resources, growth,
development and employment.
4) In light of the threats from climate change, building a “greener” finance market for India is necessary. Examine.(250 words)
Why this question
The article discusses about the need for green funds, the problems associated with it, and ways in which the more green funds can be raised and the purposes they can be utilized for. As we see the effects of climate change slowly unfold, green finance is going to become very important and hence this question.
Key demand of the question
The question expects us to examine the need for a better finance market in India, discuss the issues faced by the sector, and suggest improvements and the impact that green finance will have.
Examine – When you are asked to examine, you have to probe deeper into the topic, get into details, and find out the causes or implications if any .
Structure of the answer
Introduction – Explain what green finance is.
- Discuss the need for green finance – discuss the financial aspect of climate change adaptation and mitigation, the environmental aspects and the associated economic aspects.
- Discuss the status quo wrt green finance – India is among the top issuers of green bonds, total issuances in 2017 stood at $6 billion—a fraction of what’s needed.
- Examine the issues that are faced by this sector – need for overseeing the expenditure of such funds , diversification of the source of such funds, incentivizing and penalizing companies to ensure that standards set are being met etc
Conclusion – Discuss the impact that mobilizing more green finance would have and the way forward for that.