Innovative Climate Financing for Adaptation Mainstreaming - PowerPoint PPT Presentation

Innovative Climate Financing for Adaptation Mainstreaming Adaptation Financing in Development Planning in India Seite 1

Background  Huge adaptation financing needs in India: As per MoEFCC, India would need USD Development 206 billion between 2015 and 2030 Adaptation Technology?  Policy instruments: National Action Plan Finance? on Climate Change (NAPCC), National Measures? Adaptation Fund on Climate Change (NAFCC)  State Action Plans on Climate Change (SAPCCs) have been developed by 32 states and union territories Time  SAPCCs envisage state‘s strategies on climate change and will contribute to India‘s NDC targets  But still huge funding gap for SAPCC implementation We need significant efforts to enhance capacities to conceptualise projects and access finance 15.11.2017 Innovative Climate Financing for Adaptation Seite 2

Why mainstream adaptation Ease of convergence finance at lower levels of of funds and schemes governance? Translation Supports  SAPCCs have large potential for impactful of SAPCC decentralised climate action at the local level priorities planning Challenges Local level  Lack of clear methodology for estimating costs  Lack of capacities to leverage interational, national and private sector funds Most adaptation Potential for  Little awareness in states about innovative options require piloting and financing mechanisms local implemen- replication  Lack of prioritisation of climate actions tation In absence of sustained funding, these action plans will be limited to budgetary allocations and short term emergency relief and humanitarian aid. 15.11.2017 Innovative Climate Financing for Adaptation Seite 3

Climate Change Adaptation in Rural Areas (CCA-RAI)  Supporting states in accessing climate finance Financing instruments: Green Climate Fund  Punjab (GCF), National Adaptation Fund for Climate Haryana Change (NAFCC), Climate Change Action Uttar Programme (CCAP) Pradesh Nagaland Completed support: Meghalaya  7 states for accessing NAFCC Gujarat Mizoram Tripura  Total climate finance accessed: INR 144.63 crores (EUR 19.6 million)  Organised write-shops on proposal development Telangana for accessing GCF and NAFCC Andhra Investment plans for Pradesh Karnataka SAPCCs Climate Puducherry proofing Lakshadweep local planning Bottom-up Top-down 15.11.2017 Innovative Climate Financing for Adaptation Seite 4

Case study: Support to the Government of Karnataka for accessing NAFCC funds Climate change issues for livestock sector: Proposed solution: Low rainfall and high temperature Conserve and popularise indigenous • Less availability of fodder & feed varieties of livestock because they are: • Non-potable water Drought resistant • • Heat distress Less prone to diseases and • • Increased incidences of vector borne and parasitic diseases parasitic infestations • Proposed project: Conservation of varieties of livestock (cattle and sheep) in Karnataka Funding source NAFCC Implementing Department of Animal Husbandry and Veterinary Services department Location 4 Districts and 3 sheep farms located in 3 different tracts of the state Process 2 consultations at state level and 3 consultations at local level (climate change nodal department, line departments, district departments, PRI, farmers, etc.) Financial outlay INR 24.68 crores (EUR 3.3 million) (cost towards land, vaccination, some equipment were borne by department) Seite 5

Mainstreaming Adaptation into Local Planning Step 1: Screening Define the boundaries: Stakeholder participation • Past and current climate change trends in the state • Vulnerabilities of key sectors • Selection of vulnerable district and sector • Potential schemes and programmes for convergence Step 2: Detailed Analysis 2a: Community-level data: 2b: Scientific data including: • Participatory Rural Appraisal • Secondary sources, SAPCC • Focus Group Discussions • Projections, journals, etc. NGOs experts 2c: Data Analysis • Combine data sets and analyse climate risks and impacts • Map existing coping mechanisms and list of potential adaption options • Relevance to existing schemes/policies 15.11.2017 Innovative Climate Financing for Adaptation Seite 6

Mainstreaming Adaptation into Local Planning Step 3: Identification & Prioritisation of adaptation measures Stakeholder participation Technical feasibility, financial feasibility, Urgency of CC vulnerability being addressed, convergence with existing programmes/schemes, direct and indirect beneficiaries Step 4: Demonstration and integration in local plan • What are the additional resources and technical skills needed? • Which resources can be mobilised from the existing schemes? • How can the action plan with adaption options be aligned with existing scheme/plan? • Are the options significantly different than what is being currently implemented? • Is it necessary to modify the original planning to integrate the option for action? If so, how? Step 5: Elaborate, implement and monitor an action plan 15.11.2017 Innovative Climate Financing for Adaptation Seite 7

Eco-system based climate Case study: Mainstreaming adaptation proofing watershed in  Detailed analysis: Climate change vulnerability assessment and Tiruvanmallai district, understanding current coping mechanisms of communities Tamil Nadu Selected adaptation activities:  Department of Environment,  Treating the hilly ecosystem of Jawadhu hills watersheds to enhance Tamil Nadu soil fertility and reduce soil erosion and increase the water storage Dhan Foundation  Construction of percolation ponds, farm ponds and check dams  Planting trees on slopes of field boundary State Agriculture  Promoting cultivation of hardy crops Department and District Administration  Implementation of national and sub-national policies like PMKSY and MGNREGA at the district level Convergence Opportunity Space and funds in District Irrigation Plan Incentive Assured employment through plantation in MGNREGA Enrollment of farmers in state millet mission Drivers Integrated Watershed Management Programme (IWMP) has plan for watershed development 15.11.2017 Innovative Climate Financing for Adaptation Seite 8

Investment Plans for SAPCCs in Punjab and Telangana Baseline Prioritize activities Assess financing needs Develop investment Assessment plan for SAPCC  Based on SAPCC  Costing of SAPCC and other state  Intensive activities  Develop SAPCC initiatives stakeholder investment plan  Identify additional engagement  Use of MCA tool & financing requirements  Case studies in  Nodal institution stakeholder & innovative financing specific sectors consultation for SAPCC instruments needed prioritized for funding in the state Financing sources and instruments:  International grants: GCF, UNDP, USAID, IDRC, DFID, etc.  National grants: NAFCC  Budgetary allocations: Devolution of fund fron centre to state, state budgets, etc.  Loans/debt from international (e.g. World Bank, ADB, IFAD, etc.) and national (e.g. IREDA, SIDBI, NABARD, etc.) sources,  Bonds: Green bonds, climate bonds, etc.  Equity: Private sector  Taxes: Coal cess, other taxes  Market-based instruments: Carbon markets, ES Certs, RECs 15.11.2017 Innovative Climate Financing for Adaptation Seite 9

Credit-based and Hybrid Models in Umbrella Programme Adaptation Financing for Natural Resource Management (UPNRM)  Promoting environmentally sustainable growth by encouraging private investments that are pro-poor Strategic cooperation with:  Development of replicable business models for funding National Bank for sustainable and climate resilient natural resource Agriculture and Rural management measures Development (NABARD)  Paradigm shift: Move away from purely grant-based funding to a greater reliance on loans  Identifying synergies public and private sectors to attract sustainable private investments Private companies invested 1.8 million EUR from CSR  funds for the implementation/ leverage of UPNRM projects 15.11.2017 Innovative Climate Financing for Adaptation Seite 10

Credit-based and Hybrid Models in Adaptation Financing Technical support Financial support GIZ NABARD KfW Credit for carrying out components of fish farming activity to the beneficiary Duckery – Improved Flow of UPNRM funds Construction of duck Channel Partner - productivity of shed, supply of ducks the beneficiary Gram Uthan and feed to the Technical support beneficiary Cultivation of two rows of banana/ papaya/drumsticks Umbrella Programme for Natural Flow of funds from beneficiary to UPNRM Flow of technical support Resource Management (UPNRM) Flow of funds from UPNRM 15.11.2017 Innovative Climate Financing for Adaptation Seite 11