Shakti Foundation’s report on India’s Climate Finance Readiness as a reference
| Concern | Example/Case Study | Indian Case Study |
|---|---|---|
| Fulfillment of Commitments | Developed countries pledged $100 billion annually by 2020 but fell short. | India’s Perform, Achieve and Trade (PAT) scheme aimed at improving energy efficiency in industries. As per the Shakti Foundation’s report, the first PAT cycle led to energy savings of 8.67 MTOE (Million Tonne of Oil Equivalent), but limited international climate finance hampers scaling such projects. |
| Transparency and Accountability | Criticisms surround the Green Climate Fund (GCF) for a lack of transparency. | According to the Shakti Foundation’s report, each Indian state was to prepare its Climate Change Action Plan (CCAP) by 2010 with the help of UNDP. However, as of the report, many states are yet to complete this, highlighting the need for transparency and accountability. |
| Adequate Funding | The cost of combating climate change far exceeds the current climate finance levels. | Renewable Purchase Obligations (RPOs) require electricity distribution companies to purchase a portion of their power from renewable sources. Despite this, India fell short of its RPO targets by about 27% in 2019 due to funding and implementation challenges. |
| Equitable Distribution | Criticisms exist that GCF funds are not adequately reaching vulnerable countries. | India’s National Mission for a Green India plans to increase forest/tree cover by 5 million hectares, involving 3,000 villages across the country. Ensuring equitable distribution of funds for such a vast project is critical. |
| Inclusion of Indigenous and Local Communities | The Amazon Fund faced criticism for insufficient engagement with indigenous communities. | The National Mission for Sustainable Agriculture aims to support 500,000 farmers in climate-resilient agricultural practices. Integrating indigenous and local communities into such programs is essential. |
| Sustainable Debt Mechanisms | Debt-for-nature swaps need to be carefully designed. | In India, international climate finance (Page 5) can help reduce the fiscal burden on the government. For instance, a GCF-funded project for groundwater recharge in the vulnerable Indian state of Odisha was financed to the tune of $34 million. |
| Climate and Biodiversity Linkage | The Global Environment Facility (GEF) addresses multiple environmental issues, but balancing funding can be challenging. | The National Mission for Sustaining the Himalayan Ecosystem needs an estimated $640 million over 5 years. Achieving this funding requires recognizing and addressing the interconnectedness of climate change and biodiversity. |
| Private Sector Involvement | Despite initiatives like the GEF, green finance remains a small fraction of total global finance. | According to the Shakti Foundation’s report, $10.3 billion private sector investment was made in renewable energy projects between 2006-2013. However, this is still a fraction of what’s required for India to achieve its renewable energy targets. |
These specific examples and numbers highlight the pressing need to address various concerns while navigating climate finance, especially in developing nations like India.