Enhancing India’s Readiness to Climate Finance
India has taken several steps to improve its national response to climate change. India’s climate finance requirements, however, are very high, and will need to be met through a combination of public, private and international climate finance. See more at: http://shaktifoundation.in/
India has taken several steps to improve its national response to climate change. India’s climate finance requirements, however, are very high, and will need to be met through a combination of public, private and international climate finance. See more at: http://shaktifoundation.in/
3.2.1 Multilateral climate funds Enhancing India’s readiness to access and deliver international climate finance Of the 28 international climate funds analysed in this report, India is eligible to access 10 multilateral funds. 27 However since the GCF is not yet operational and since GEF 4 funding is now completed, in practice there are 8 multilateral funds that India is currently eligible to access. Table 3.1 lists these funds and shows the cumulative volumes of climate finance that India has received from these sources in the period 2003 to 2014, specifying how much funding has been approved and how much has been actually disbursed. The table highlights the strong role that the GEF has played in financing climate-related activity in India. The table also highlights the fact that the Clean Technology Fund is the single largest source of climate finance in India, but that funding has not yet been disbursed due to delays in the project preparation process. A detailed breakdown of project expenditure for the GEF, CTF, and Adaptation Fund – as well as India’s institutional arrangements for accessing these funds – can be found in Annexes IV, V and VI. Table 3.1: Cumulative climate finance from multilateral funds received by India, 2003-2014 Multilateral Fund Approved* Disbursed* Adaptation Fund 0.00 0.00 Clean Technology Fund 349.91 0.00 Carbon Market Initiative** - - GEF Trust Fund 4 (2006-2010)*** 118.45 118.45 GEF Trust Fund 5 (2010-2014) 75.23 18.85 Global Energy Efficiency and Renewable Energy Fund 0.13 0.00 Partnership for Market Readiness**** 0.5 0.23 Special Climate Change Fund 9.82 0.00 UN-REDD 0.00 0.00 Total: 554.04 137.53 Source: Climate Funds Update. *Totals approved and disbursed to date, all funds in USD millions **Data on the CMI’s funding is not publically available ***GEF Trust Fund 4 data includes $4.78 million approved and disbursed under the Strategic Priority on Adaptation (SPA) window ****World Bank PMR website. Report No. ISDR10877. 3.2.2 Bilateral climate finance Analysis of bilateral contributions from donors using the OECD/DAC Rio Markers shows that India received a sum total of $927.74 million in 2012, of which $701 million (75.6%) came from Germany. Table 3.2 breaks down this headline figure for mitigation and adaptation interventions in the main donor countries. A more detailed summary of all OECD countries’ climate finance to India in 2012, with data disaggregated by the ‘principal’ and ‘significant’ Rio Markers can be found in Annex III. A detailed breakdown of project finance provided by Germany – the main bilateral source of climate finance in India, can be found in Annex VII. Table 3.2: Total bilateral climate finance received by India for mitigation & adaptation, 2012 27 See Annex II for a detailed list of multilateral and bilateral funds analysed in this report. This list covers all main international public climate funds, as well as several specialised thematic and geographic funds. As mentioned above, there are several funds which India is ineligible to access due to the Funds’ requirements that assistance be targeted to a specific country, region, or country type (e.g. LDCs). Ref: Ricardo-AEA/R/ED59216/Final Report 13
Enhancing India’s readiness to access and deliver international climate finance Rio Marker Mitigation* Adaptation* Totals Australia 11.92 12.07 23.99 France 69.41 69.41 138.82 Germany 496.07 205.26 701.33 Norway 0.35 29.15 29.5 Sweden 6.86 7.27 14.13 Switzerland 5.78 3.95 9.73 United Kingdom 2.58 2.58 5.16 Other OECD Donors 1.81 3.27 5.08 Total: 594.78 332.96 Sum Total: $927.74 million* Source: OECD StatExtracts Database. *Mitigation and adaptation funding totals are a combination of ‘principal’ and ‘significant’ volumes using the Rio Marker tags. All funds in USD millions, figures are cumulative totals of all OECD donors excluding Japan. Box 3.1: The Japanese Fast Start Finance contribution Japan and India have an important bilateral cooperation partnership. Japan is one of the largest international donors operating in India, and has provided substantial support to India for climaterelated activities in recent years. According to the OECD’s StatExtracts database, Japan provided India with $3.36 billion in mitigation and adaptation support in 2012. However there is uncertainty over how Japan labels its climate-related development assistance and speculation that some of its funding does not meet traditional definitions of ‘climate finance’. Figures from Japan’s Hatoyama Initiative (2010-2012) – commonly referred to as Japan’s Fast Start Financing – are therefore not covered in this study. The omission of these figures does not diminish the important role that Japan plays in India, for example in large cooperation programmes on conventional energy, as well as in smaller programmes on renewable energy. Overall figures for bilateral climate finance in Table 3.2 should thus be treated as conservative estimates. Of the 28 international climate funds analysed in this report, India is eligible to access 3 dedicated bilateral funds from Australia, Germany, and the UK. However bilateral climate funds are only a small component of the climate-related support that India receives from international donors. Table 3.4 lists these funds and outlines the cumulative volumes of climate finance that India has received from these sources (note that the volumes are included in the total bilateral figures in Table 3.3 above). It is clear from this analysis that delivering finance to the ground remains a critical barrier for bilateral funds operating in India, as no funding that has been approved by the ICI or the ICF have been officially disbursed to date. Table 3.4: Cumulative climate finance from bilateral funds received by India, 2003-2014 Bilateral Fund Approved* Disbursed* Australia’s International Forest Carbon Initiative (IFCI) 0.00 0.00 Germany’s International Climate Initiative 57.6 0.00 UK’s International Climate Fund 3.63 0.00 Source: Climate Funds Update. Total: 61.23 0.00 Ref: Ricardo-AEA/R/ED59216/Final Report 14
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<strong>Enhancing</strong> <strong>India’s</strong> readiness <strong>to</strong> access and deliver international climate finance<br />
Rio Marker Mitigation* Adaptation* Totals<br />
Australia 11.92 12.07 23.99<br />
France 69.41 69.41 138.82<br />
Germany 496.07 205.26 701.33<br />
Norway 0.35 29.15 29.5<br />
Sweden 6.86 7.27 14.13<br />
Switzerland 5.78 3.95 9.73<br />
United Kingdom 2.58 2.58 5.16<br />
Other OECD Donors 1.81 3.27 5.08<br />
Total: 594.78 332.96<br />
Sum Total:<br />
$927.74 million*<br />
Source: OECD StatExtracts Database.<br />
*Mitigation and adaptation funding <strong>to</strong>tals are a combination of ‘principal’ and ‘significant’ volumes using the Rio Marker tags. All funds in<br />
USD millions, figures are cumulative <strong>to</strong>tals of all OECD donors excluding Japan.<br />
Box 3.1: The Japanese Fast Start <strong>Finance</strong> contribution<br />
Japan and India have an important bilateral cooperation partnership. Japan is one of the largest<br />
international donors operating in India, and has provided substantial support <strong>to</strong> India for climaterelated<br />
activities in recent years. According <strong>to</strong> the OECD’s StatExtracts database, Japan provided<br />
India with $3.36 billion in mitigation and adaptation support in 2012. However there is uncertainty<br />
over how Japan labels its climate-related development assistance and speculation that some of its<br />
funding does not meet traditional definitions of ‘climate finance’. Figures from Japan’s Ha<strong>to</strong>yama<br />
Initiative (2010-2012) – commonly referred <strong>to</strong> as Japan’s Fast Start Financing – are therefore not<br />
covered in this study. The omission of these figures does not diminish the important role that Japan<br />
plays in India, for example in large cooperation programmes on conventional energy, as well as in<br />
smaller programmes on renewable energy. Overall figures for bilateral climate finance in Table 3.2<br />
should thus be treated as conservative estimates.<br />
Of the 28 international climate funds analysed in this report, India is eligible <strong>to</strong> access 3 dedicated<br />
bilateral funds from Australia, Germany, and the UK. However bilateral climate funds are only a small<br />
component of the climate-related support that India receives from international donors. Table 3.4 lists<br />
these funds and outlines the cumulative volumes of climate finance that India has received from these<br />
sources (note that the volumes are included in the <strong>to</strong>tal bilateral figures in Table 3.3 above). It is clear<br />
from this analysis that delivering finance <strong>to</strong> the ground remains a critical barrier for bilateral funds<br />
operating in India, as no funding that has been approved by the ICI or the ICF have been officially<br />
disbursed <strong>to</strong> date.<br />
Table 3.4: Cumulative climate finance from bilateral funds received by India, 2003-2014<br />
Bilateral Fund Approved* Disbursed*<br />
Australia’s International Forest Carbon Initiative (IFCI) 0.00 0.00<br />
Germany’s International <strong>Climate</strong> Initiative 57.6 0.00<br />
UK’s International <strong>Climate</strong> Fund 3.63 0.00<br />
Source: <strong>Climate</strong> Funds Update.<br />
Total: 61.23 0.00<br />
Ref: Ricardo-AEA/R/ED59216/Final Report<br />
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