Enhancing India’s Readiness to Climate Finance

Enhancing India’s readiness to access and deliver international climate finance
There has been limited engagement of the private sector on climate finance issues.
Agent/actor/institution: Lack of representation of the private sector in any of the national
committees and bodies on climate change; few forums in place to
engage the private sector.
Competency Gaps:
Capacity and skills gaps with public and private players have led to early
stage enforcement and implementation issues; There is a lack of
understanding and capacity to use climate risk screening tools for
investment decisions.
5.3.2 Detailed scoring of Tier 1 indicators
1. GHG emissions – Have emissions estimates been identified at the national and
sectoral levels?
3
India has appropriate systems in place to estimate GHG emissions, namely the Indian
Network for Climate Change Assessment; National Communications to the UNFCCC (2004
and 2012); and via the India GHG Programme.
2. Risk & Vulnerability – Have climate vulnerabilities, risks and been identified and
estimated?
1.5
Macro-level risk assessments have been conducted; however there is a need for
detailed sectoral and State-level analysis. Vulnerabilities attributed to rise in surface
temperature, sea level rise and adverse weather conditions are given in the National
Communications to the UNFCCC, IPCC reports and National Mission documents.
Key vulnerabilities have been identified but the link between environmental damage
and socio-economic impact needs to be clearer. Adverse impacts on Biodiversity, Urban
Areas, Rural Development, Health, Food and Water have been analysed in the National
Communications to the UNFCCC, IPCC reports, 12 th FYP and National Mission documents.
However, the link between key vulnerabilities and the specific impacts in terms of freshwater
species) and socio-economic impacts (e.g. health impacts, loss of economic assets) is not
clear.
3. Economic impacts of climate change – Have implications of climate change for the
national economy been estimated?
1
Climate change awareness has improved in India, however economic strategies still do
not consider the impacts of climate change appropriately. National plans, such as the 12 th
FYP, have given attention to the impacts of climate change, however they do not provide
detailed analysis on the implications climate change will have on the economy. State-level and
sectoral development plans rarely appraise or address the economic impacts of climate
change.
Investment requirements have been assessed for major climate change programmes,
but a full scale costs-benefit analysis between BAU and climate change strategies has
not been undertaken. There have been preliminary estimates made on implementing the
NAPCC, estimated at $38 billion by the Economic Survey of India. However, nodal Ministries
entrusted with the implementation of the missions are yet to fully assess the likely costs of
actions; estimates are therefore currently very fragmented and incomplete. There are no
‘needs’ assessment aimed at estimating financial needs for each prioritised mitigation and
adaptation measure, or identifying possible financial instruments/mechanism to deliver them.
No cost-benefit analysis has been undertaken on the actions for mitigating emissions from the
largest sectors or reducing impacts of climate vulnerable sectors.
Ref: Ricardo-AEA/R/ED59216/Final Report
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