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

Accessing Climate Finance: Perspective from a State Government

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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.

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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

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State Views on Climate Finance

 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

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View of state government  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

• f emissions unavailable

Why State Governments think so

Climate Finance Architecture in India

NAFCC

The finance architecture has been adopted from Centre for Policy Research Document Titled: The coordination of climate finance in India

Outfall/ Complementing / Supporting Systems  Private Sector Bank  Tax Systems: Coal Tax of INR 200 ton of coal  RPO/REC under BEE

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State Action Plan on Climate Change

 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

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Overview of SAPCCs

Example of Missing Financial Link

 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

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Budget Estimation for intervention

Example of Missing Financial Link

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 Monitoring plan for the same parameter

Systematic Climate Finance Plan

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  Guidance on choice of fund and modals of finance Strengthening of state nodal climate change departments/institutes to understand the complete gamut of climate finance types of climate finance options available for the states, the process of availing finance, documentation needs,  knowledge to develop /assist financial aspects etc

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Identification and Removal of Barrier

Strategic guidance Fund Flow

Climate Finance

Information Flow

Demystification of climate change & climate finance as a subject for one and all

Systematic Climate Finance Plan

 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

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Identification and Removal of Barrier

SHRI B.KALYAN CHAKRAVARTHY, IAS DIRECTOR GENERAL

ENVIRONMENT PROTECTION TRAINING & RESEARCH INSTITUTE, GACHIBOWLI, HYDERABAD

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