Additionally, analysts point out that there are risks associated with the certainty of policy, the sanctity of contracts, and the assurance of demand growth for these projects.

These concerns are particularly relevant when considering the attraction of funding for sovereign or private green projects.

Climate activists argue that funding should prioritise regions in need for maximum impact. “South Asia is the least integrated of regions for attracting climate financing. Money is not coming to the places that need the most,” Climate Policy Initiative India Director Dhruba Purkayastha said.

Recent data shows that as of last year, multilateral development banks’ total global climate finance was at US$446.9 million, while the South Asian region received just $59.3 million since 2011.