Accessing Climate Finance: Perspective from a State Government 1 A - PowerPoint PPT Presentation

Accessing Climate Finance: Perspective from a State Government 1

A Bottom up View - EPTRI Understanding Climate Change (Believers vs Non Believers)… 10,000 years/500 • years/5 years • Scientists at IITM Pune- an interaction..Hyderabad Floods...why did we not heed to Nostradamus ..Potsdam..Rockefeller Institute • Funding ..small..complicated procedure..time consuming..lack of knowledge, experience, competence, data and a little bit of Trump (Funds for mindset change not infrastructure) • Response of Telangana (EPTRI)...creation of a structure for nodal agency...SAPCC from aggregation of budgets to climate sensitivity..live projects in Agri/Industry/ Energy/Water. 2

Suggestions • PMO - CMO of every state - SAPCC to meet INDCs…SAPCC...SOER...Water budgeting • State Specific Objectives are still voluntary • Integration of Govt…NGOs…Private sector on a platform…environment is a critical public good • An empowered committee on environment as a single window clearance for finance, policy. Fiscal policies wherein role of private banks. Taxation systems, RPOs RECs, Carbon Bond • markers and carbon balance. • Nodal agency to monitor evaluate research-DST 3

State Views on Climate Finance View of state government  Climate Finance is a one off activity  Only for one or two projects  It is another grant that the state may receive  It cannot be relied upon  It is not one of the finance options to be considered while scrutinizing project finance Why State Governments think so  Vey limited experience or precedence and success stories  Procedures either not understood or complicated  Timeline for receiving the finance is stretched  Competency in developing proposals for the same missing  Unlike other countries like Australia/ Japan etc. city or state level trading of emissions unavailable 4

Climate Finance Architecture in India Outfall/ Complementing / Supporting Systems  Private NAFCC Sector Bank  Tax Systems: Coal Tax of INR 200 ton of coal  RPO/REC under BEE The finance architecture has been adopted from Centre for Policy Research Document Titled: The coordination of climate finance in India 5

State Action Plan on Climate Change Overview of SAPCCs  SAPCCs are suppose to be the guiding document on each states actions on climate change up till 2022  About 32 states and union territories, state action plan on climate change have been approved by the national steering committee  They provide an overview of the adaptation measures needed along with some mitigation measures  Different states follow different process –  some have identified measures by department  some have identified the measures and then the department  Financial/budgetary estimates on how much finance is needed for implementation of these measures is provided in SAPCC.  Timeline for implementation and monitoring of these interventions is either sketchy or absent in various SAPCC ’ s 6

Example of Missing Financial Link Budget Estimation for intervention  In SAPCC of Telangana concerned department had identified INR 6 crore as the budget needed for water bodies restoration in urban areas.  Where as Hyderabad alone has 169 lakes and restoration of 19 lakes alone costs INR 130 crore 7

Example of Missing Financial Link Monitoring plan for the same parameter  The monitoring table does not define exact number of water bodies to be restored  This is a good starting for first response but poses challenges in implementation, planning and hence, financing and/or accessing climate finance

Systematic Climate Finance Plan Identification and Removal of Barrier  Capacity development at state department level on the process of availing climate funds  Sensitization of the activities and initiatives for which the climate fund is available Strategic  Guidance on choice of fund and modals of guidance finance  Strengthening of state nodal climate change Climate departments/institutes to understand the Finance complete gamut of climate finance  types of climate finance options available for the states,  the process of availing finance, Information Fund Flow Flow documentation needs,  knowledge to develop /assist financial aspects etc  Demystification of climate change & climate finance as a subject for one and all 9

Systematic Climate Finance Plan Identification and Removal of Barrier  As SAPCC ’ s enter into implementation phase finance and climate finance will be important in their success  State level Climate change nodal agencies need to assess along with the departments intervention by intervention  The extent of the intervention (for example: whether 19 or 169 or 67 lakes will be restored in Hyderabad)  Delineate components of the intervention which are not directly linked with climate adaptation or mitigation ( for example: beautification of water bodies may not be linked to climate change mitigation or adaptation)  Identify the components of the intervention which are beyond regular government work, not budgeted in government budgets  Design implementation timeline 10

SHRI B.KALYAN CHAKRAVARTHY, IAS DIRECTOR GENERAL ENVIRONMENT PROTECTION TRAINING & RESEARCH INSTITUTE, GACHIBOWLI, HYDERABAD e