Maharashtra is setting its sights on becoming India’s first trillion-dollar economy by 2027-28 while also pursuing the nation’s net-zero carbon emissions target by 2070. To achieve these ambitious goals, the state is exploring a range of innovative financing options, with a strong focus on private investment and blended finance as key tools for climate action funding.
These topics were at the forefront of discussions during a workshop hosted by the State Climate Action Cell (SCAC) in collaboration with WRI India. Themed ‘Climate Finance Access and Mobilization Strategy for Maharashtra (2024-30)’, the event marked a critical step toward developing a comprehensive Resource Mobilization Strategy (RMS) to meet Maharashtra’s climate goals.
Private Sector and Innovative Finance Tools
Speaking at the event, Praveen Pardeshi, CEO of the Maharashtra Institution for Transformation (MITRA), highlighted some of the state’s climate-resilient strategies. “The agricultural sector can gradually transition toward solar energy as many banking institutions are interested in extending credit facilities for this purpose,” said Pardeshi. He also emphasized enhancing public transport and creating nature-based solutions, noting that public consensus is essential for the success of these projects.
Echoing the need for private sector participation, Abhishek Acharya, Director of the Ministry of Environment, Forest, and Climate Change (MoEFCC), said: “We need more private sector participation in climate change adaptation activities. Innovative financial instruments can help gather more private sector participation in adaptation initiatives, which achieve profits as well.”
Mobilizing Climate Finance
The focus on mobilizing climate finance was underscored by Abhijit Ghorpade, Director of SCAC, Maharashtra, who revealed key developments in the state’s climate planning.
“A chapter on climate finance has been introduced in the recently prepared State Action Plan on Climate Change (SAPCC) of Maharashtra, which will eventually culminate in the framing of a climate budget. In the year 2023-24, 11.95 percent of the state budget was expended on climate actions, with plans to increase this annually by 5 percent, so that by the end of 2030, 50 percent of the budget is a climate budget,” said Ghorpade.
He also outlined that Maharashtra requires nearly Rs 3 lakh crore in climate finance for the period 2024-2030. To achieve this, the state is actively working on a Climate Finance Access and Mobilization Strategy with the support of WRI India.
Role of WRI India in Maharashtra’s Climate Strategy
Madhav Pai, CEO of WRI India, highlighted WRI’s role in assisting Maharashtra in designing its climate finance strategy. “WRI India is supporting the State Climate Action Cell in designing the Climate Finance Access and Mobilization Strategy for Maharashtra. Operationalization of RMS in Maharashtra will require developing sector-specific strategies and bankable projects,” said Pai, adding that pooled finance facilities with a sectoral focus will be crucial to mobilizing the required funds.
Ulka Kelkar, Executive Director of Climate, Economics & Finance at WRI India, emphasized Maharashtra’s leadership in climate action but noted there are still challenges to be addressed. “Maharashtra is at the forefront of climate action, with its vibrant economy driving efforts to implement and finance climate initiatives. While the state’s climate finance needs and sources have been identified, gaps remain that must be addressed. This dialogue focuses on bridging that gap,” said Kelkar.
She also provided specific examples of climate finance strategies, stating: “First, when blending private finance, we must ensure the real risk isn’t entirely shifted to the public sector. Second, development finance institutions and philanthropies can collaborate to strengthen the capacity of state agencies and civil society to package climate action projects for climate finance. Third, as we mainstream climate finance into public budgets, we must ensure the pool of available funds expands.”
