Rethinking Climate Finance - Mainstreaming Climate Resilience in India’s Flagship Water and Sanitation Programmes

January 2026

The global landscape of climate finance is undergoing significant transformation. Recent trends show a slowdown in international climate finance commitments and reporting. This shift signals a broader reassessment of global climate finance architecture. It places greater responsibility on climate-vulnerable countries to identify sectoral entry points to sustain climate action despite uncertain international flows. In India, while this shift is a challenge; it is also a strategic opportunity to review its approach and priorities.

Across India, climate stress is already reshaping everyday realities. Urban centres experience extreme heat, erratic rainfall and more frequent disasters. Rural areas also face groundwater depletion, shifting monsoon patterns and declining water quality. In this context, the water and sanitation sector is one of the most strategic and high-impact sectors for climate action and resilience.

The strategic opportunity lies not only in creating standalone “climate projects”, but in reframing the water and sanitation investments for climate-resilient development. India’s flagship national programmes, especially including Jal Jeevan Mission, AMRUT and Swachh Bharat Mission, offer robust institutional platforms and financial resources. By aligning these programmes with climate finance principles, such as risk reduction, adaptive capacity and sustainability, India can strengthen their climate relevance while staying focused on national development goals.

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