Now Reading: India positioned to shape emerging global green finance order
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India positioned to shape emerging global green finance order
India is emerging as a key architect of a new global financial order, using its G20 presidency and COP platforms to push for reforms in multilateral development banks (MDBs) and green finance.…
India is emerging as a key architect of a new global financial order, using its G20 presidency and COP platforms to push for reforms in multilateral development banks (MDBs) and green finance. The existing system, anchored by the IMF and World Bank, is struggling to meet climate and SDG funding needs, with MDBs expected to provide only about $120 billion a year by 2030, far below what is required.
India has created the International Solar Alliance, Coalition for Disaster Resilient Infrastructure and Global Biofuel Alliance as practical platforms. During its 2023 G20 presidency, it secured the Green Development Pact and called for voting rights at MDBs to reflect developing nations' economic weight. The expanded BRICS+ coalition, representing over 40% of global GDP, offers a twin-track approach: recapitalising the New Development Bank for local-currency lending and building exclusive green mechanisms for the Global South.
Indian Opinion Analysis
India's push for MDB reform and a multipolar financial order reflects a shift that began with the 2010 IMF quota reforms, which gave emerging economies more voting power but still fall short of their current GDP share. The New Development Bank, capitalised at $50 billion in 2014, has lent under $35 billion to date, a fraction of what climate finance needs require. The real test will come at the next round of IMF quota discussions in December 2025, where India must convert its G20 consensus into hard voting-right changes. A parallel challenge is whether BRICS+ can build a payment system that rivals SWIFT without triggering US sanctions on member banks.
Source: thehindu.com
This brief was synthesised by AI from the source linked above.
