Sitharaman highlights surge in India’s climate outlay, pushes fair global cost sharing

Finance Minister Nirmala Sitharaman on February 14 said India has sharply increased its spending on climate action over the past six years, raising it to 5.6% of GDP as the country accelerates efforts to meet its emissions-reduction commitments.  

Speaking during a panel discussion at the Munich Security Conference, Sitharaman highlighted what she described as a shift from intent to implementation in India’s climate strategy.  

“Six years ago, we were spending approximately 3.7% of our GDP on climate action. Today, that figure is close to 5.6%. We have invested the funds. We are not waiting for financing and technology to come from elsewhere — but they must come,” she said.  

Renewables & carbon capture get policy backing  

The minister underscored that India will continue scaling investments in renewable energy, describing the transition as a sustained national priority rather than a short-term policy push.  

She also pointed to new allocations in the Union Budget 2026–27 to support carbon-capture initiatives, saying these technologies are being incentivised to enable deployment across sectors. The move signals a broader strategy that combines clean energy expansion with emerging decarbonisation tools for hard-to-abate industries.  

According to Sitharaman, India has already achieved nearly two-thirds of its nationally determined contributions (NDCs) in the renewable energy space — four years ahead of schedule — an indicator, she argued, of the country’s ability to deliver climate outcomes alongside economic growth.  

Call for ‘differentiated’ climate costs  

Making a case for climate equity, Sitharaman stressed that countries with historically lower emissions should not bear the same financial burden as major polluters.  

“It can’t be that countries which have contributed less to emissions are made to pay equally,” she said, calling for a differentiated framework in sharing the global costs of climate action.  

She added that climate policy must balance mitigation with resilience and adaptation, warning that an excessive focus on emission control alone could impose heavy developmental trade-offs for emerging economies.  

“As much attention as we give to emission control, we need to look at resilience and adaptation. Otherwise, you’re going to sacrifice a lot,” she noted, emphasising the need for interoperable technologies and collaborative global solutions.