India needs $20 billion (about Rs 1.53 lakh crore) worth of investments each year to achieve its climate targets and fund its green transition, according to a report.

The white paper by Ficci and Trilegal highlights that the country needs a large budget allocation, international finance from bilateral and multilateral sources and green private investments.

The report also spotlights reforms in the power sector to encourage environmental, social and governance-led investment in India’s climate transition.

Focussing on redefining corporate citizenship — the road to sustainability, the report details how corporates can contribute to the sustainability agenda, non-financial metrics and management of environmental, social and governance (ESG) risks.

As regulators actively incorporate ESG and sustainability factors into the legal framework, the ways in which companies operate will change, it added.

“India needs $20 billion worth of investments each year to achieve its climate targets and fund its green transition. It needs a large budget allocation,” the report stated.