Baku | Despite progress in gender-focused policies, India's climate response remains fragmented, and its national climate policy still lacks a consolidated, gender-responsive climate finance strategy that could more comprehensively support women as climate leaders, according to a new report.

The report by research and public policy consulting firm Chase India, supported by Global Counsel, underscores this gap, calling for coordinated, gender-responsive climate finance frameworks to position women as central agents of climate resilience rather than passive beneficiaries.

The report was presented on Thursday during the COP29 climate summit here in Azerbaijan's capital.

Programmes like the Pradhan Mantri Ujjwala Yojana, which has provided over 103 million rural women with access to clean cooking fuel, and the National Rural Livelihoods Mission, which has mobilised millions of women in sustainable livelihoods, demonstrate India's commitment to gender-responsive policies.

However, these achievements are often constrained by limited coordination, reducing the overall impact of women-focused climate efforts.

“Despite these efforts, the impact of such policies often remains fragmented due to various ministries working in silos, and India's national climate policy still lacks a consolidated, gender-responsive climate finance strategy that could more comprehensively support women as climate leaders,” the report said.

A clear example of this disconnect is the draft National Policy for Women 2016, which independently aims to prioritise addressing gender concerns during distress migration and displacement in times of natural calamities due to climate change and environmental degradation, it said.

While independent initiatives focused on enhancing rural women's access to micro-financing and sustainable livelihoods reflect India's commitment to empowering women as key actors in sustainable development, without dedicated, large-scale investments specifically targeting women's role in climate resilience and green technology, progress remains incremental.

For instance, there are various Missions under the National Action Plan on Climate Change (NAPCC) which enable employment opportunities for women, however, there are few climate finance mechanisms which include targeted funding to bolster female-led green initiatives or support women entrepreneurs in climate-sensitive sectors.

A critical advantage within the Indian regulatory framework is the quasi-federal structure, which provides an opportunity for targeted considerations to be built into independent State Action Plans for Climate Change, which devolve from NAPCC.

At this juncture, it is to be acknowledged that India's partnerships with multilateral organisations have been instrumental in advancing gender-responsive climate finance initiatives, providing women with essential roles in climate resilience and green economy projects.

To bridge these gaps, the report offered recommendations specifically tailored for India.

It advocates for creating dedicated climate finance funds exclusively for women-led initiatives in climate-sensitive sectors, supporting female entrepreneurs in green and low-carbon projects.

Additionally, it suggests implementing targeted financial literacy programmes at the grassroots level to connect rural women with the resources they need to participate in climate adaptation actively, equipping them with the tools to contribute to resilience efforts in their communities.

The report highlighted that women in India—constituting nearly half of the population and playing crucial roles in resource management—face systemic financial barriers that limit their capacity to adapt to climate impacts.

Addressing these gaps requires an overhaul of existing frameworks to ensure that gender-specific challenges are embedded within climate policies.

The report's recommendations include conducting gender assessments during climate policy planning stages, enabling a clear understanding of women's needs and designing policies that prioritize support for their roles in adaptation and resilience.

Another recommendation focuses on offering fiscal incentives to organizations adopting gender-inclusive practices, such as tax credits for companies with gender-focused sustainability initiatives.

This approach could encourage private sector participation in gender-responsive climate finance, adding critical support for climate action at both national and local levels.

Expanding the report's findings to the broader South Asia region, Chase India points out that women across the region face similar barriers due to socio-economic and financial inequalities.

Climate impacts, from droughts to floods, disproportionately affect women, who often lack the financial means and literacy needed to access adaptation resources.

The report argues that by integrating women into climate finance frameworks, South Asia could unlock significant socio-economic benefits, positioning women not only as participants but as leaders in climate resilience.

The report outlines a two-pronged approach of Price and Policy to create a gender-responsive financial system.

First, it recommends recognising the economic burdens women face in climate-affected regions and suggesting targeted solutions like subsidies, concessional loans, and insurance products tailored to women-led enterprises in low-carbon sectors.

Second, it advocates for social protection programmes—including climate-smart grants, disaster recovery loans, and support for women entrepreneurs—that stabilize economic conditions during climate shocks, offering a safety net for vulnerable populations, the report said.

To ensure effective implementation, the report stresses the importance of several ecosystem enablers.

It recommends capacity building through training for government officials, NGOs, and financial institutions, fostering a climate finance ecosystem that integrates women as leaders in adaptation efforts.

Partnerships with women-led organisations, the private sector, and local governments are crucial for channelling financial resources and technical expertise directly to the grassroots level, where they can have the greatest impact.

As the largest and most diverse country in South Asia, India is uniquely positioned to lead the region's shift toward gender-responsive climate finance.

By establishing a cohesive policy approach, the report said India could set a regional benchmark, promoting inclusive and sustainable climate solutions.

Suryaprabha Sadasivan, Sr Vice President, Chase India said: "With 80% of climate-displaced people being women and girls, they face both environmental devastation and economic insecurity without adequate financial support.

"COP29, with its focus on climate finance, offers a critical moment to change this. Our report calls for gender-responsive frameworks that position women as leaders in resilience. By bridging these financial gaps, we can transform women's vulnerability into powerful leadership for a sustainable future," Sadasivan said.