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Adequate, Affordable Finance Remains Constraint In India’s Climate Actions: Economic Survey

India’s climate ambitions require resources to be dedicated to the cause of climate change, stated Economic Survey 2023

Adequate, Affordable Finance Remains Constraint In India's Climate Actions: Economic Survey
The country's climate actions have so far been largely financed from domestic sources only: Economic Survey 2023

New Delhi: The availability of adequate and affordable finance remains a constraint in India’s climate actions, the Economic Survey for 2022-23 tabled in Parliament on Tuesday (January 31) said. The country’s climate actions have so far been largely financed from domestic sources only, including government budgetary support, a mix of market mechanisms, fiscal instruments and policy interventions, it added. While several estimates of the required investments are indicated in the long-term low greenhouse gas emission development strategies (LT-LEDS) report prepared by India, it is important to note that all allude to a need for tens of trillions of US dollars, it said.

Also Read: Economic Survey 2023 Highlights: Quality Health For All & Leaving No One Behind, An Important Priority For The Government

While India is less responsible for the high stock of emissions, it has consistently engaged in demonstrating global leadership towards adopting various measures and ensuring a low-emission growth pathway, with a commitment to the net-zero emissions goal by 2070, it added.

The survey said,

India’s climate ambitions require resources to be dedicated to the cause of climate change, in addition to, what is needed for the country’s development goals.

Obligations on climate should be matched with the on-time availability of climate finance, technology and inputs like critical minerals, while not jeopardising the socio-economic development objectives and aspirations, it noted.

Even if India has so far undertaken climate actions on its own, the heightened expectations of further large-scale climate measures have to be equated with the enhanced initiatives by developed countries in terms of providing means of implementation, including finance, technology transfer and capacity-building support, it said.

More importantly, the global climate agenda will advance if advanced countries can set examples of policy and behavioural changes that work in their backyard and whose trade-offs are well recognised and accepted by their people. Then, it might be realistic to expect such policies and behavioural expectations of households to succeed in developing countries, it added.

Also Read: World Bank Seeks More Funds To Address Climate Change, Other Crises

Climate change is primarily attributed to disproportionately high cumulative emissions, both historical and high per capita annual emissions of greenhouse gases (GHGs) of the developed countries.

The global nature of the problem makes India one of the most vulnerable regions despite having contributed only about 4 per cent in the cumulative global emissions (for the period 1850-2019) and maintaining its per capita emission at far less than the world average.

According to the survey, the understanding in the Climate Convention and the Paris Agreement has been that the developed countries will mobilise the resources through public and other sources, including by catalysing private finance, to enable a flow of financial resources at a reasonable cost.

While these are yet to materialise, India has scaled up its efforts towards greater mobilisation of private capital to meet climate action goals, it said.

India has integrated the development goals with ambitious climate action goals, be it in the form of augmented solar power capacity (installed), higher energy saving targeting notified in PAT cycle-VII and improved green cover facilitated by Green India Mission, among other targeted government actions.

As part of dedicated efforts to preserve ecosystems, India now has 75 Ramsar sites for wetlands, in addition to various regulatory and promotional measures to protect and conserve mangroves. Continued river conservation and rejuvenation efforts are underway through Namami Gange and National River Conservation Plan (NRCP).

Also Read: 2022 The Fifth Warmest Year On Record: NASA

In August 2022, the country updated the Nationally Determined Contributions (NDCs) in line with the Prime Minister’s vision expressed in the 26th meeting of the Conference of Parties of UNFCCC.

In terms of transition to renewable energy sources, India has already achieved its target of 40 per cent installed electric capacity from non-fossil fuels ahead of 2030. It has advanced the target to 50 per cent, which should also translate to a significant reduction in the average emission rate.

The National Hydrogen Mission and Green Hydrogen Policy have been introduced to enable India to be energy independent by 2047. Its pivotal role is also reflected in India’s Long Term Low Emissions Development Strategy (LT-LEDS).

It said,

The availability of adequate and affordable finance remains a constraint in India’s climate actions. The country has so far largely met its requirements from domestic sources only.

Also Read: Financing Alone Won’t Mitigate Climate Change, Invest In Community Resilience: Neera Nundy, Co-Founder, Dasra

Since finance is a critical input for its climate actions, the country has scaled up its efforts towards mobilising private capital, including through sovereign green bonds, to meet climate action goals.

A framework for the latter has been issued in compliance with International Capital Market Association (ICMA) Green Bond Principles. The sustainable finance framework has also evolved from the initial steps covering the top listed 100 companies required to conform to sustainability standards.

The requirement has now not only been extended to 1,000 top listed companies on a mandatory basis but also the sustainability standards have become much stronger and measurable that correspond to the best practices while taking into account the specific context of India, it said.

Despite the adverse impacts of COVID-19 on the economy, the country has enhanced its climate ambition manifold and embarked on a long-term strategy towards a low GHG Emission Development Strategy by adopting a multi-pronged approach, it added.

Also Read: Analysis: Drops Of Climate Finance Start To Fill An Ocean Of Need

(This story has not been edited by NDTV staff and is published from a syndicated feed.)

NDTV – Dettol have been working towards a clean and healthy India since 2014 via the Banega Swachh India initiative, which is helmed by Campaign Ambassador Amitabh Bachchan. The campaign aims to highlight the inter-dependency of humans and the environment, and of humans on one another with the focus on One Health, One Planet, One Future – Leaving No One Behind. It stresses on the need to take care of, and consider, everyone’s health in India – especially vulnerable communities – the LGBTQ populationindigenous people, India’s different tribes, ethnic and linguistic minorities, people with disabilities, migrants, geographically remote populations, gender and sexual minorities. In wake of the current COVID-19 pandemic, the need for WASH (WaterSanitation and Hygiene) is reaffirmed as handwashing is one of the ways to prevent Coronavirus infection and other diseases. The campaign will continue to raise awareness on the same along with focussing on the importance of nutrition and healthcare for women and children, fight malnutrition, mental wellbeing, self care, science and health, adolescent health & gender awareness. Along with the health of people, the campaign has realised the need to also take care of the health of the eco-system. Our environment is fragile due to human activity, which is not only over-exploiting available resources, but also generating immense pollution as a result of using and extracting those resources. The imbalance has also led to immense biodiversity loss that has caused one of the biggest threats to human survival – climate change. It has now been described as a “code red for humanity.” The campaign will continue to cover issues like air pollutionwaste managementplastic banmanual scavenging and sanitation workers and menstrual hygiene. Banega Swasth India will also be taking forward the dream of Swasth Bharat, the campaign feels that only a Swachh or clean India where toilets are used and open defecation free (ODF) status achieved as part of the Swachh Bharat Abhiyan launched by Prime Minister Narendra Modi in 2014, can eradicate diseases like diahorrea and the country can become a Swasth or healthy India.

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