Green Finance in Rajasthan: Inclusive Development or Reproducing Disparities?

India's net-zero commitments place green finance at the forefront of balancing economic growth with environmental sustainability. However, there's a recognized gap in understanding how these capital flows translate into inclusive development, particularly for rural households, marginalized communities, and small enterprises, rather than just large corporations.

Rajasthan, boasting India's highest solar irradiation and strong wind resources, is a crucial case study. The state has attracted significant green investment, including a 2024 MoU for over 28,500 MW of renewable capacity, and has a green budgeting exceeding Rs.27,000 crore. Despite this, semi-urban and rural areas struggle with limited access to green credit, technical capacity, and climate-adaptive livelihoods.

The proposal aims to investigate if green finance mechanisms in Rajasthan are structured to achieve inclusive outcomes, or if they are likely to reinforce existing regional and socio-economic inequalities, potentially widening the gap between different segments of the population.