Global climate action: Indian banks need to accelerate green financing

Indian banks need to move away from financing fossil fuels projects and prioritise lending to renewable energy and other environmentally sustainable projects

Indian banks and financial institutions are lagging behind international financial institutions in helping control the climate crisis, research shows.

Indian banks and financial institutions, including the State Bank of India (SBI), ICICI, Axis Bank, the Trust Group and HDFC, are among the largest global financial institutions funding fossil fuel projects. Meanwhile, several banks in other countries, including the Spain-based Banco Santander and the Commonwealth Bank of Australia, have promised to phase out financing of coal-powered plants and mining by 2030.

Banks play an important role in financing sustainable sectors such as renewable energy and in stopping financing of fossil fuels.