Navigating Through India’s Policy Framework for Climate Finance
Navigating Through India’s Policy Framework for Climate Finance
Introduction: India’s commitment to addressing climate change and promoting sustainable development is reflected in its robust policy framework for climate finance. This framework encompasses a range of policies, regulations, and financial mechanisms that facilitate the mobilization and utilization of climate finance in the country. In this report, we explore India’s policy framework for climate finance, along with a table highlighting key policies and initiatives.
Table: Key Policies and Initiatives in India’s Policy Framework for Climate Finance
| Policy/Initiative | Objective |
|---|---|
| National Action Plan on Climate Change (NAPCC) | Setting out India’s strategy for climate change mitigation and adaptation |
| National Clean Energy Fund (NCEF) | Financing renewable energy projects and clean technology development |
| National Adaptation Fund for Climate Change | Supporting adaptation measures to address climate change impacts |
| Renewable Purchase Obligation (RPO) | Mandating a minimum share of electricity to be procured from renewables |
| Pradhan Mantri Kisan Urja Suraksha evam | Promoting solar power generation among farmers |
| Utthaan Mahabhiyan (PM-KUSUM) | |
| Smart Cities Mission | Promoting sustainable urban development and climate-resilient cities |
| UJALA (Unnat Jyoti by Affordable LEDs for All) | Encouraging energy-efficient lighting through the distribution of LEDs |
| International Solar Alliance (ISA) | Promoting solar energy deployment through global cooperation |
The table above highlights key policies and initiatives within India’s policy framework for climate finance. Each policy or initiative serves a specific objective, ranging from climate change mitigation and adaptation to renewable energy promotion and energy efficiency.
National Action Plan on Climate Change (NAPCC): The NAPCC serves as India’s comprehensive strategy for addressing climate change. It encompasses eight national missions, focusing on various sectors, including solar energy, energy efficiency, sustainable agriculture, and sustainable habitat.
National Clean Energy Fund (NCEF): The NCEF aims to finance clean energy projects and technologies by imposing a clean energy cess on coal. The fund supports research and development, capacity building, and demonstration projects in the renewable energy sector.
National Adaptation Fund for Climate Change: The National Adaptation Fund provides financial resources to implement adaptation measures that enhance resilience to climate change impacts. It supports projects related to water management, agriculture, coastal zone management, and ecosystem restoration.
Renewable Purchase Obligation (RPO): The RPO mandates electricity distribution companies and certain consumers to procure a specific percentage of their electricity from renewable sources. This policy encourages the growth of renewable energy capacity and ensures market demand for clean energy.
Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM): This initiative aims to promote solar power generation among farmers by installing solar pumps, solarization of existing grid-connected agricultural pumps, and setting up solar power plants on barren lands.
Smart Cities Mission: The Smart Cities Mission focuses on developing sustainable and climate-resilient cities. It promotes the integration of climate-friendly technologies, efficient urban planning, and resilient infrastructure development.
UJALA (Unnat Jyoti by Affordable LEDs for All): UJALA is a government scheme that aims to distribute energy-efficient LED bulbs at subsidized rates to promote energy conservation and reduce greenhouse gas emissions.
International Solar Alliance (ISA): The ISA is a global partnership that aims to promote solar energy deployment worldwide. It facilitates cooperation among solar-rich countries to promote solar technologies, capacity building, and investment in the solar sector.
Conclusion: India’s policy framework for climate finance provides a solid foundation for mobilizing and utilizing financial resources to tackle climate