Context:

A recent report by the International Centre for Integrated Mountain Development (ICIMOD) highlights that India, along with other countries in the Hindu Kush Himalaya (HKH) region, faces a substantial climate finance gap in addressing the impacts of climate change. India alone requires nearly USD 102 billion annually to meet climate adaptation and mitigation needs in its Himalayan regions.

Key Findings of the Report:

Scale of Climate Finance Requirement:
• The HKH region, spanning eight countries (India, China, Afghanistan, Pakistan, Nepal, Bangladesh, Bhutan, and Myanmar)—requires approximately USD 768.7 billion per year to address climate impacts and build resilience.
• India’s share of this requirement is estimated at around USD 102 billion annually.
• China’s requirement is significantly higher, at nearly USD 605 billion per year; together, India and China account for over 92 percent of the region’s total climate finance needs.

Long-Term Finance Gap:
• The cumulative regional climate finance gap for the period 2020–2050 is estimated at nearly USD 12 trillion, with an average annual requirement of about USD 768.68 billion.
• This underscores the scale of investment needed for climate adaptation, mitigation, and resilience-building across fragile mountain ecosystems.

Drivers of Climate Vulnerability:
• The Himalayan region is particularly vulnerable to climate change due to:
o Accelerated glacial melt
o Biodiversity loss
o Increasing frequency of extreme weather events
o Rising water insecurity
These factors pose serious risks to ecosystems, local livelihoods, and downstream populations dependent on Himalayan water systems.

Implications for India:

Himalayan Ecosystem at Risk:

• • • The Himalayas serve as a vital freshwater source for billions of people across South Asia and are central to India’s agricultural productivity and economic stability.
    • Climate-induced changes such as glacial retreat and erratic rainfall patterns threaten water security, food systems, and disaster preparedness in the country.

Funding Shortfall and Development Pressures:

• • • Despite substantial financial needs, existing climate finance flows remain far below required levels, constraining India’s capacity to implement large-scale adaptation and mitigation measures.
    • Limited domestic fiscal space and competing development priorities further intensify the challenge, underscoring the need for innovative financing instruments and enhanced international cooperation.

About ICIMOD:

The International Centre for Integrated Mountain Development (ICIMOD), established on 5 December 1983 and headquartered in Kathmandu, Nepal, is an intergovernmental organisation serving the countries of the Hindu Kush Himalaya region. Its mission is to generate and share knowledge that informs regional policy, investment, and action, enabling member countries to pursue greener, more inclusive, and climate-resilient development pathways.

Conclusion:

The ICIMOD report underscores a stark climate finance gap in the Hindu Kush Himalaya, with India’s annual requirement alone estimated at around USD 102 billion. Bridging this gap will require a combination of domestic resource mobilisation, strengthened international climate finance, and innovative funding mechanisms to protect Himalayan ecosystems and enhance climate resilience for millions who depend on them.