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/
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<strong>Enhancing</strong> <strong>India’s</strong> readiness <strong>to</strong> access and deliver international climate finance<br />
Figure 3.3: Current <strong>to</strong>tal public climate finance, is underweight in India and overweight in Latin<br />
America, when compared <strong>to</strong> future mitigation and adaptation finance needs<br />
Source: Buchner et al. (2012), IEA (2012), World Bank (2010), Vivid Economics. 31<br />
3.4 <strong>India’s</strong> climate finance performance: High-level trends<br />
The analysis in the previous section shows that India is already attracting climate finance that can<br />
help the country meet its sustainable development goals – although likely not at the level needed <strong>to</strong><br />
fully implement the country’s main climate change strategy. In sum, the main messages that come<br />
out of this analysis are:<br />
India has developed a comprehensive national climate change policy – the NAPCC –<br />
which addresses eight priorities for sustainable development with climate change cobenefits.<br />
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The NAPCC is not backed by a coordinated financing strategy – although estimates of<br />
the cost <strong>to</strong> implement the Plan are at least $38 billion.<br />
Since 2003, India has accessed $554 million from multilateral climate funds, with the<br />
CTF and GEF being the two most important sources.<br />
In 2012 India received nearly $928 million in bilateral climate finance for mitigation and<br />
adaptation, excluding funding from Japan. 76% of this financing came from Germany.<br />
For both bilateral and multilateral climate finance, delays on disbursement and project<br />
implementation remain a barrier that needs <strong>to</strong> be overcome in India.<br />
India was the second largest recipient of CDM investment, behind China, although CDM<br />
financing has begun <strong>to</strong> dry-up and cannot be expected <strong>to</strong> play a major role in the future.<br />
Renewable energy projects are the main destination for private sec<strong>to</strong>r climate finance<br />
investment, comprising 77% of <strong>to</strong>tal CDM funding. Strong government action under the<br />
31 Vivid Economics (2014), Delivery vehicle options for the International <strong>Climate</strong> Fund, report prepared for<br />
ICF spending departments.<br />
Ref: Ricardo-AEA/R/ED59216/Final Report<br />
17
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