Mobilising Private Sector Finance for Climate Change Dr. Ashish - - PowerPoint PPT Presentation

Mobilising Private Sector Finance for Climate Change

• Dr. Ashish Chaturvedi

Director- Climate Change GIZ, India

SAPCC investment plans

• Important to Identify various forms, instruments and sources of financing and subsequently develop

strategies to target them for financing actions under SAPCCs.

• Developed investment plans for SAPCCs of 4 states – Telangana, HP, Punjab, TN.
• Methodology developed called ‘Integrated Assessment of Public Financing of State Budget towards

SAPCC Implementation’.

• Developed case studies - with financial analysis and financing models, serving as demonstrative

examples of how the State can finance SAPCC activities.

• Intensive

stakeholder engagement

• Nodal institution

for SAPCC Baseline Assessment

• Develop SAPCC

investment plan

• Case studies in specific

sectors prioritized for funding in the state Develop investment plan for SAPCC

• Based on SAPCC and
• ther state

initiatives

• Use of MCA tool &

stakeholder consultation Prioritize activities

• Costing of SAPCC

activities

• Identify additional

financing requirements & innovative financing instruments needed Assess financing needs

Snapshot Example – Telangana SAPCC Investment plan

Review of existing investment instruments and internal sources Factors considered during the review

Fiscal condition

• f the state

Characteristics

• f existing ML

&BL funding in the State

Effectiveness of new & innovative instruments in the state or parts

• f India

Characteristics of existing state and central government sources

9,074.8 790.4 9,746.7 560.4 59.3 579.5 8,514.5 9,167.2 79,125.2 20,000 40,000 60,000 80,000 Total Climate Positive Expenditure (SAPCC Sectors) Total Climate Positive Expenditure (Non SAPCC… Total Climate Positive Expenditure of App Acc (Total… Total Climate Negative Expenditure (SAPCC Sectors) Total Climate Negative Expenditure (Non SAPCC… Total Climate Negative Expenditure of App Acc… Total Climate Relevant Expenditure- SAPCC Sectors… Total Climate Relevant Expenditure- All 32 Grants… Total SAPCC Rq. Budget per Year

S.N

• .

Activity identified for developing demonstrative case studies of investment plans Potential funding mechanism 1 Documentation of biodiversity including genetic fingerprinting Multilateral/GCF grant with partial financing from central/state schemes 2 Creation of forests in degraded/public lands in and around cities and towns CAMPA funds along with State funds. Private sector can also be leveraged 3 Construction of STP at Nakkavagu – 40 MLD ESCO model or issue Green bonds 4 Climate resilient upgradation of sewerage management Majorly state funded, 40% to be met through GBs or PS investment 5 Promotion of solar rooftop scheme in government buildings Gross or net metering model with private sector investment 6 Green Skill Development project in Telangana Multilateral loan with co- financing from centre/state

Strategic Alliances

• Diageo/United Spirits Limited, with a focus on its distillery in

Alwar, Rajasthan and Aurangabad, Maharashtra

• ITC, with a focus on food facility in Malur, Karnataka and

paper mill in Coimbatore, Tamil Nadu

• MARS, with a focus on mint suppliers in Barabanki, Uttar

Pradesh and food facility in Pune, Maharashtra

• GIZ India, AWS and WWF India

Partners Proposed project

• Unique opportunity to leverage

corporate commitments to up- scale the adoption of water stewardship in India.

• Private sector partners committed

to implement the AWS Standard at priority sites (diverse locations)

• Private companies partnership

facilitates to improve, incentivise and develop responsible water use practices in the identified catchment area Enhanced Water Security in India through actions and innovations at community, catchment, state and national levels Significant contribution to water security, climate change adaptation and the SDGs by transforming the institutional and on-ground capacity of India water stewardship network

• Green Startups and Social Enterprises are not able to access

voluntary carbon markets due to high transaction cost, carbon credit project development risk and limited capacities.

• With help of sensitization workshop by GIZ several start-ups

and social enterprises are collectively developing a Gold Standard Programme of Activity (PoA) in municipal solid waste management thus reducing transaction cost and project risk.

• Carbon revenue is distributed after deducting certain overhead

costs increasing viability and attractiveness for investors.

Sensitizing Green Startups & Social Enterprises about Voluntary Carbon Markets

XXX 12.12.2018

Conclusions

Leveraging the knowledge of governments and communities on local scenarios can enable private sector develop more robust adaptation strategies Adaptation is highly emphasized on the Paris Agreement and can be linked to market based mechanisms Private sector is undertaking projects with adaptation and mitigation benefits Lack of financial resources including lack of credit facilities, loans and subsidies appear to be key barriers for enhancing adaptation finance PPPs or multi-stakeholder partnerships can emerge as key instruments for tackling climate change