Authors: Nagesh Mandavi
Abstract: Chhattisgarh, one of India’s richest states in minerals and forests, presents a paradox: vast natural wealth coexists with widespread poverty. The central challenge is achieving economic growth while conserving its abundant natural resources—especially given that nearly 44% of the state’s land remains under forest cover. This paper explores how innovative green finance models can help Chhattisgarh pursue environmentally responsible and economically inclusive development. After outlining the state’s socio-economic and ecological context, the paper reviews major green financial instruments such as green bonds, carbon credits and emissions trading systems, ESG investing, payments for ecosystem services (PES), and green microfinance or blended finance. For each instrument, practical applications suited to Chhattisgarh are proposed: municipal green bonds for clean urban infrastructure, forest-based carbon credit projects, ESG-driven investment in cleaner industrial practices, community PES schemes to support forest conservation, and microfinance products that promote climate-resilient agriculture. The paper draws on successful examples from India and abroad—including Indore’s oversubscribed green bonds, Himachal Pradesh watershed PES scheme, and Costa Rica’s national PES program—to demonstrate the feasibility of such models. It also identifies key barriers, including limited institutional capacity, regulatory gaps, and investor perceptions of risk, and suggests strategies such as strengthening policy frameworks, improving financial expertise, and encouraging multilateral agencies to share risk. The conclusion emphasizes that with supportive policies and coordinated action among government, investors, and civil society, green finance can unlock substantial investment for sustainable development, helping Chhattisgarh advance toward India’s broader climate and green growth goals.
DOI: https://doi.org/10.5281/zenodo.18296411
