The government is working to set up a National Green Financing Institution to support its net-zero target by 2070, as current finance flows for climate initiatives remain much lower than the desired levels, NITI Aayog has said. "A dedicated National Green Financing Institution may be envisaged to bridge the huge gap," the Aayog said in its annual report 2024-25. It added that the primary purpose of the institution will be to aggregate green capital from different sources and lower the cost of capital. NITI Aayog said it is examining structuring mechanisms for operationalising a potential National Green Financing Institution, including a bank modelled on NaBFID/NABARD, repurposing existing institutions like IREDA; Climate Fund in GIFT city, Green InvIT, etc. (non-exhaustive) along with analysing best practices from Green Banks around the world. As part of its climate commitments or Nationally Determined Contributions (NDCs) submitted to the United Nations Framework Convention on ...