Enhancing India’s Readiness to Climate Finance

Enhancing India’s readiness to access and deliver international climate finance
3.2 Have the costs and benefits of
taking action to shift these
strategies been assessed and
quantified?
Investment requirements have been assessed for major climate change programmes, but
full scale costs-benefits analysis between BAU and climate change strategies has not been
undertaken
• There have been preliminary estimates available on implementing the NAPCC, estimated
at INR 230,000 crore.
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• Nodal Ministries entrusted with implementation of the missions are yet to fully assess
the likely costs – so estimates are currently very fragmented and incomplete.
• India (Centre for Science and Environment 2010) has looked at investment requirements
for six key sectors, with $10 billion a year in finance needed for the power sector alone.
• No detailed needs assessment has been done, nor has any cost-benefit analysis of
actions for mitigating emissions from the largest sectors and reducing the impacts on
climate vulnerable sectors.
4. Institutional response to
climate change
Have effective institutional
mechanisms to respond to
climate change been put into
place?
4.1 Is there a strategy, plan or
policy that addresses climate
change?
India has launched several plans and policies addressing climate change
• India has announced a domestic goal of reducing the emission intensity of its GDP by 20-
25 per cent of the 2005 level by 2020.
• The National Action Plan on Climate Change (with eight thematic ‘missions’) is the main
policy to promote adaptation & mitigation actions.
• All States have been asked to prepare State Action Plans on Climate Change- state-level
action plans. These plans are envisioned as extensions of the NAPCC at various levels of
govt., aligned with eight National Missions.
2.5
• India's latest Five Year Plan includes sustainability as a main focus for the first time.
• Many of the missions under the NAPCC are under implementation after receiving funds
through budgetary allocations. Some missions could leverage private finance as well (e.g.
NSM, NMEEE).
• Most of the states have also created SAPCC, though implementation is yet to start on
these plans.
• The majority of State Action Plans are not very detailed, have not defined clear funding
strategies, and are not fully ready for implementation.
4.2 Who are the key
actors/institutions who have
championed the climate
change response?
Relevant institutions have been set up but greater coordination, communication and above
all greater accountability is required
• Political Function: Prime Minister’s Council on Climate Change
• Strategic Function: Planning Commission and MoEFCC
• Financial/ MRV: Climate Change Finance Unit, MoF
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Ref: Ricardo-AEA/R/ED59216/Final Report
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