Climate change is at the top of government agendas across the world. Finding solutions to issues such as drought, flooding, food shortages and emissions can no longer be ignored as people?s homes and livelihoods come under threat.

India is unlikely to escape the worst effects of a warming planet. Many of its citizens, particularly those in poor rural areas will simply not be able to afford to protect themselves from the worst aspects of global warming. As the National Action Plan on Climate Change said, India?s population has close economic ties to natural resources and climate sensitive sectors such as agriculture, water and forestry, and will require a serious adaptive capacity to combat climate change. The International Energy Agency predicts that India will become the third largest emitter of greenhouse gases by as early as 2015.

As a developing country, India can little afford the risks posed by climate change and with more than a quarter of the population still below the poverty line, reducing vulnerability to the impacts of climate change is essential. This knowledge, combined with the fact that primary energy demand is expected to more than double by 2030, means that the Indian government has already undertaken significant steps to try and mitigate the situation by outlining new regulations and developing green business codes: incentives to promote renewable energy and energy efficiency are actively promoted, adaptation strategies, which aim to make agriculture more resilient to the impacts of climate change, have also been proposed and India has set voluntary targets to reduce carbon emissions intensity by 20-25% by 2020. Yet, despite these measures and public acknowledgement that climate change is a real and pressing problem for India, policymakers face an uphill battle to find the necessary expertise and resources to fully address the issues and find workable resolutions.

So what can be done? I believe that it is only by utilising the power of the private sector that the immense challenges of climate change will be overcome. Indeed, mitigating the effects of climate change is an area where the private sector not only can, but must play a part.

It is a win/win situation: the private sector has the capacity to develop the expertise to tackle the impact of climate change and there is money to be made. Recent estimates indicate that green spending in India could reach up to $150 billion by 2017 bringing huge opportunities for businesses. There is no reason why India should not be a world leader in this drive to harness the expertise and resources of businesses and private investors. It already has a large market in low-carbon and green goods and the sector is expanding all the time. Similarly, the investment landscape looks good: more Indian companies are undertaking focused efforts to manage their carbon footprints, with top management support. Such information is increasingly important in influencing where financial institutions decide to invest their money. Investors are aware of the opportunities that are available and the private sector in India has implemented low carbon projects using a range of investment sources: self-financing, private equity investment, venture capital and where available, carbon finance.

But there could be more action: financial incentives are essential to really bring people and institutions on board, and a clear and consistent regulatory environment around all aspects of climate change mitigation is required. Investors have a strong appetite to fund clean technologies such as renewable energy?but only if they can be sure that they are basing investment decisions within a secure regulatory framework. It is also necessary to examine how expertise in the financial markets can be used to develop innovative financing techniques. This is an area where I believe the City of London can work closely in partnership with India by linking India?s drive and entrepreneurial flair with the city?s expertise as a financial innovator and as a centre for carbon financing.

The challenges of climate change are going to affect everyone and there are no easy solutions, but prompt and coordinated action from governments and private investors mean that these challenges can be turned into great opportunities with Indian businesses, forging a path to a cleaner and more sustainable planet.

The author is the Lord Mayor of the City of London