18-Jul-2022: Green Climate Fund
The Government of India organized a stakeholder consultation workshop on ‘Understanding India’s Climate Financing needs and its mobilization with focus on Green Climate Fund (GCF)’ under the ongoing GCF Readiness Program on 24th June 2022 in New Delhi. The workshop addressed ways of mobilizing finance at scale to facilitate a shift to low greenhouse gas emission and climate resilient development path, aligned with India’s Nationally Determined Contributions under Paris Agreement. The workshop suggested that sustainability path significantly raises the need for finance and human, technological and institutional capacities.
The task of developing a global architecture for trade in credits for emission reductions under Article 6 of the Paris Agreement is assigned to the UNFCCC Secretariat, as per the decisions of Parties to Paris Agreement. The GCF’s objective is to support shift towards low-emission and climate resilient development path by providing support to developing countries in the form of grants, loans, guarantees, equity etc. The Government of India has been actively engaging with GCF. So far, 5 projects have been approved with total allocation of USD 514.8 million in diverse areas including water, clean energy, livelihoods and transport. Two projects under GCF i.e., (i) Ground Water Recharge and Solar Micro Irrigation to Ensure Food Security and Enhance Resilience in Vulnerable Tribal Areas of Odisha and (ii) Enhancing climate resilience of India’s coastal communities, are being implemented with the active participation of communities in the states of Andhra Pradesh, Maharashtra and Odisha.
24-Jun-2022: Stakeholders Consultation Workshop on “Understanding India’s Climate Financing needs and its mobilization with focus on Green Climate Fund (GCF)” organized by Ministry of Environment, Forest & Climate Change
A stakeholder consultation workshop on “Understanding India’s Climate Financing needs and its mobilization with focus on Green Climate Fund (GCF)” was organized by Ministry of Environment, Forest and Climate Change, Government of India under the ongoing GCF Readiness Program on 24th June 2022 in New Delhi. This workshop is part of an ongoing effort to understand India’s Climate Financing needs and scale of investments needed to be mobilized to accelerate investment in climate resilient development in India.
The inaugural session of the workshop was attended by Ms. Leena Nandan, Environment Secretary, Ms. Anupa Rimal Lamichhane, Regional Manager, Green Climate Fund, Ms. Shoko Noda, UNDP Resident Representative. The Key Note Address was given by Shri Ajay Seth, Secretary, Department of Economic Affairs, Ministry of Finance.
Ms. Leena Nandan, Secretary, MoEFCC, in her address, focused on need for understanding the range of costs for meeting India’s ambitious climate actions which will indicate the scale of investments needed to be mobilized and also would help in identifying policies that will spur low carbon and resilient growth and emphasized that the role of public sources of funding would remain critical to mobilizing and leveraging private capital. She stressed on the scope, scale and speed of climate finance, which have to increase considerably to match the aspirations of an emerging economy like India. She emphasized on community level development projects which have the potential to generate green credits. Green credits generated through carbon market can also act as an effective vehicle to attract investments.
Recalling the Hon’ble Prime Minister’s statement at COP 26 “Mindful and Deliberate Utilization, instead of Mindless and Destructive Consumption”, Shri Ajay Seth, Secretary, DEA in his key note address highlighted the importance of assessing sector by sector climate finance requirements towards low carbon transition. He noted that the sectoral roadmaps to be prepared for key sectors of economy should cover the externalities and the delta for viability. While emphasising the equity and Common but Differentiated Responsibilities and Respective Capabilities (CBDR-RC) in global transition towards low carbon and climate resilient pathways, the vulnerable sectors and communities such as MSMEs, small and marginal farmers, and rural communities should be factored in for the additional premium associated with low carbon transition.
The workshop has focused on understanding India’s financial needs for climate actions with a focus on various financial instruments by its two technical sessions on Assessing India’s Financing Needs and Leveraging Climate Finance to meet the needs where dignitaries from Government of India, Private Sectors and Financial Institutions participated. The workshop thereby addressed ways of mobilizing the requisite finance at a scale to bring the much-needed shift to a transition towards the sustainable development path. The workshop stressed on the viability of financial instruments. The Workshop noted that sustainability path significantly raises the need for Finance and Human, Technological, Institutional, and Regulatory capacity. Financial resources and the said capacities grow as the country steps up the development trajectory. The workshop also addressed the experiences and success stories of Rewa Solar Power Project and attracting scalable private finance and the need for designing bankable projects sourcing. The Line Ministries/ Departments of Government of India, Private Sector Stakeholders, Financial Institutions, GCF Accredited Entities, Executing Entities, Implementing Entities and other relevant stakeholders participated in the workshop and shared their experiences and views.
The workshop emphasized on identifying the ways to drive short-term recovery and long-term resilience; leverage investments in least-cost energy solutions, resilient and secure energy systems, efficiency and competitiveness, and social and environmental equity for a sustainable future. The GCF secretariat has also provided their expert views on facilities available under the GCF. This consultation workshop has tried to strengthen the ongoing engagement with various stakeholders including the private sector and financial institutions to ensure effective and coherent engagement.
15-Nov-2019: US$43 million project to boost climate resilience
The Government of India took an important step toward its goals for low-carbon, climate-resilient development with the kick-off of a US$43 million project to build climate resilience of millions of people living in the coastal states of Andhra Pradesh, Maharashtra and Odisha. The six-year project will work with communities in restoring ecosystems and promoting climate-resilient livelihood options, such as the sustainable farming of mud crabs.
The new project, funded by the Green Climate Fund, will be led by the Ministry of Environment, Forest and Climate Change, with support from UNDP. It further establishes India as a leader on climate action, and marks an essential step for India to reach its goals outlined in the Paris Agreement and 2030 Agenda for Sustainable Development. These global compacts call on every nation to end poverty and hunger by 2030, and to take strong action to ensure no one is left behind in protecting vulnerable people from the extreme impacts of climate change. This initiative will particularly address India’s strategic plan to achieve its nationally determined contributions under the Paris Agreement, which focuses on adaptation efforts in vulnerable communities.
Over 1.7 million people are expected to directly benefit from livelihoods support, with another 10 million indirectly benefitting from improved shoreline protection. The initiative will also focus on providing tangible benefits for vulnerable communities, including women, female-headed households, young people and the elderly, and members of Scheduled Castes and Tribes. Over 3.5 million tonnes of CO2 will be sequestered through restored ecosystems over the next 30 years.
India’s coastal areas are quite vulnerable to climate change and in the last 5 years, we’ve seen increased floods & cyclones in these regions. This pace-setting new initiative will help enhance resilience and adaptability, lead to emissions reductions and support sustainable livelihoods. It aligns well with the priorities of the National Action Plan on Climate Change, the State Action Plans, and the nationally determined contributions under the Paris Agreement. The Government of India will finance an additional US$86.8 million toward the new project to mainstream and accelerate the impacts of the Green Climate Fund grant.
This initiative will not just build climate resilience among people living on India's coasts, it will also have considerable long-term environmental benefits. By promoting healthier ecosystems, better biodiversity conservation and resilient livelihoods, it is also an example of the kind of integrated approach we need to achieve the Sustainable Development Goals.
To protect life on land and below water as outlined in the 2030 Agenda, project activities will focus on the restoration and conservation of over 15,000 hectares of mangroves, coral reefs, seagrasses and saltmarshes. Communities, including local youth, will be trained to work with scientists in monitoring ecosystem health and coastal ecology.
To strengthen climate risk-informed coastal management and infrastructure planning, the innovative project will create an online decision-support tool available via mobile phone for use by government officers, academic institutions, community members and scientists. The project will also build local knowledge of climate change and the associated risks via training and public education programmes.
A range of partners from the public sector, private sector and civil society were consulted in the creation of the project proposal and will be involved throughout its implementation. The project is set to run to the end of 2024.
5-Dec-2018: Accounting methods of climate fund questioned
The Finance Ministry has issued a ‘discussion paper’ that has criticised the accounting methods used by developed countries to report how much money they have given, so far, to developing countries to address climate change.
Accounting procedures, regarding the flow of climate finance, is one of the most controversial issues being debated at Katowice, Poland where countries have gathered to agree upon a ‘Rule Book’ to implement the Paris Agreement of 2015, that commits countries to ensure the earth doesn’t warm 2 degree Celsius beyond pre-industrial levels.
In 2019, developed countries are expected to make available $100 billion annually to developing countries, according to a 2010 agreement in Cancun.
In 2016, developed countries published a road map to $100 billion, which claimed that public climate finance levels had reached $41 billion per year in 2013-14. In 2015, India had disputed this figure arguing it was only $ 2.2 billion. The 2017 numbers also tell a similar story. Only around 12% of total pledges to climate funds have actually materialised into disbursements.
It argues that the definition of climate finance in the UNFCCC has remained “imprecise and incomplete.” There was no clarity on whether the developed countries’ commitment to ‘provide funds’ meant funds committed or those that made it to their intended recipients.
The total pledges to the Green Climate Fund, the largest multilateral fund, was a “meagre” $10.3 billion. Further, most of the total climate finance has flowed into mitigation (a reference to preventing carbon dioxide from being emitted).
The growth in the reported climate specific finance actually slowed down from 24% between 2014 and 2015 to 14% between 2015 and 2016, quoting a report by the finance committee of the UN that manages climate-affairs.
The questions raised by the paper are similar to those articulated by India’s Environment Ministry-led delegation, now part of negotiations in Poland.
22-Oct-2018: Green climate fund approves $1 billion for projects in poor countries
Green climate fund has approved more than USD 1 billion in new investments after a four-day meeting in Bahrain. The Green Climate Fund said that the meeting approved 19 new projects, including a program to protect freshwater resources in Bahrain.
Environmentalists had argued the Gulf nation should pay for the project itself using money it has made off its vast reserves of oil and gas. Officials also agreed to start seeking new money for the fund next year.
President Donald Trump's decision to withhold USD 2 billion of the USD 3 billion pledged by predecessor Barack Obama has contributed to a shortfall in its projected assets.
The South Korea-based fund is considered a key vehicle for climate-related development programs.
27-Jul-2017: India all set to access resources under the Green Climate Fund for Finance Climate Action
An Accreditation Master Agreement (AMA) was signed between Green Climate Fund (GCF) and National Bank for Agriculture and Rural Development (NABARD).
India, like other developing countries, can do more, if finance and technology development & transfer and capacity building support are ensured as per the convention and its Paris Agreement. India is creating a network of strong institutions that can act as enablers for scaling-up climate action through technologically sound and innovative projects.
Several of the mitigation and adaptation targets, articulated in India’s Nationally Determined Contribution (NDC), to meet the international climate obligations are aligned with the Fund’s strategic impact areas - viz clean energy, energy efficiency, cities, transport, forestry, agriculture, water health and ecosystems. India’s NDC is among the few that make specific reference to the GCF specifically with regard to its role as a source for low-cost finance for its 40% non-fossil fuel based power target. India, with numerous climate change and developmental challenges, needs to engage more purposefully and actively with GCF. The accredited entities need to proactively engage with GCF to take advantage of the available opportunities.
The Green Climate Fund (GCF) is one of the operating entities under financial mechanism set up under the United Nations Framework Convention on Climate Change (UNFCCC) to provide support to developing countries in combating climate change, with resources to be generated from funding by developed country Parties and various other public and private sources. It supports both climate change adaptation and mitigation projects in developing countries.
So far, one project from India on “Installation of Ground Water Recharge System” in Odisha has recently been approved by the GCF for $34 million. Another proposal on coastal areas has already been submitted to the GCF Secretariat and several more projects are in the pipeline.
India has nominated a total of five direct access entities for accreditation by the GCF. Two of these from the public sector and three from the private sector for accreditation by the GCF. The public sector entities are NABARD and Small Industries Development Bank of India (SIDBI). The private sector entities nominated are YES Bank, IDFC Bank and IL&FS Environmental Services. So far, NABARD and SIDBI have been accredited by the GCF.
NABARD is the first entity from India to be accredited as Direct Access Entity (DAE). The signing of AMA between GCF and NABARD is an essential first step for accessing the GCF resources to help safeguard the lives, property and livelihoods of millions of people against climate change impact.
Board Member of GCF from India, Shri Dinesh Sharma, stressed upon submission of large size of proposals or multi state proposals from India to access the GCF resources and said that in coming years, GCF may play an important role in supporting climate change projects.