Adaptation Fund (AF):
The Adaptation Fund (AF) was set up under the Kyoto Protocol of the United Nations Framework Convention on Climate Change (UNFCCC). It was established in 2001 and officially launched in 2007 at CoP-7 in Marrakech, Morocco. It aims to finance concrete projects and programmes that help vulnerable communities in developing countries that are Parties to the Kyoto Protocol to adapt to climate change. The Fund is financed in part by government and private donors, and also from a two percent share of proceeds of Certified Emission Reductions (CERs) issued under the Protocol’s Clean Development Mechanism (CDM) projects.
The Adaptation Fund headquartered in Washington DC, USA is supervised and managed by the Adaptation Fund Board (AFB). The AFB is composed of 16 members and 16 alternates and holds periodic meetings throughout the year. The World Bank serves as trustee of the Adaptation Fund on an interim basis.
Ministry of Environment, Forest & Climate Change, Govt. of India is the National Designated Authority (NDA) for Adaptation Fund. The proposals are submitted to Adaptation Fund by the National Implementing Entity (NIE) with endorsement of NDA.
Total number of approved projects: 6
Green Climate Fund (GCF):
Green Climate Fund (GCF) was established at sixteenth session of the Conference of the Parties (COP-16) held in Cancun as one of the operating entities under financial mechanism set up under the United Nations Framework Convention on Climate Change (UNFCCC) to provide support to developing countries in combating climate change, with resources to be generated from funding by developed country Parties and various other public and private sources. The Fund is governed by the GCF Board and it is accountable to and functions under the guidance of the COP to support projects, programmes, policies and other activities in developing country Parties using thematic funding windows.
The Green Climate Fund is committed to investing in developing countries’ efforts to adapt to the effects of climate change. GCF aims to deliver a 50:50 balance between mitigation and adaptation allocations in its portfolio, and ensure that at least 50% of adaptation funding goes to particularly vulnerable countries, including Least Developed Countries (LDCs), Small Island Developing States (SIDS) and African States. India as an eligible country has access to GCF and can seek financial support to undertake adaptation and mitigation activities at national and regional level.
Ministry of Environment, Forest and Climate Change (MoEFCC) is National Designated Authority (NDA) for GCF in India. Projects and programmes can be implemented in a country with the approval of NDA. The GCF channels its funds through partner institutions, known as “Accredited Entities (AE)”, rather than managing projects directly. So far, National Bank for Agriculture and Rural Development (NABARD), Small Industries Development Bank of India (SIDBI), YES Bank, IDFC Bank and IL&FS Environmental Services have been accredited by the GCF.
Total number of approved projects: 3
Green Climate Fund Readiness and Preparatory Support:
The first phase of the readiness programme was implemented by UNDP from November 2016 to October 2019. Major focus was at national level a) to strengthen institutional capacity for NDA to fulfil its role and b) development of the country programme document.
The second phase of GCF Readiness support will build on the outcomes of the first phase and will build capacity of DAEs and state governments to actively engage with NDA for implementation of the country programme and leveraging GCF resources while engaging the private sector for unleashing its full potential to undertake climate actions in the areas of clean energy and building climate resilience. The second phase has two major objectives:1) Accreditation support and building capacity of DAEs and state governments to develop fundable proposals based on the priorities identified in the country programme document with financing models that are innovative and can leverage various types of funds 2) Systematically engaging Businesses and financial institutions to invest in climate actions.
Global Environment Facility (GEF):
The Global Environment Facility (GEF) Trust Fund was established on the eve of the 1992 Rio Earth Summit, to help tackle our planet’s most pressing environmental problems. GEF funding to support the projects is contributed by donor countries. These financial contributions are replenished every four years (see GEF Replenishment documents) by the 39 GEF donor countries.
GEF funds are available to developing countries and countries with economies in transition to meet the objectives of the international environmental conventions and agreements.
The World Bank serves as the GEF Trustee, administering the GEF Trust Fund (contributions by donors). The Trustee helps mobilize GEF resources; disburses funds to GEF Agencies; prepares financial reports on investments and use of resources; and monitors application of budgetary and project funds. The Trustee creates periodic reports that contain an array of fund-specific financial information.
Total number of approved projects (Climate Change specific): 45
Bilateral and Multilateral Projects:
The Ministry has been implementing several climate change projects with the assistance of bilateral and multilateral funding agencies such as Deutsche Gesellschaftfür Internationale Zusammenarbeit (GIZ) GmbH, European Union (EU) and United Nations Development Programme (UNDP).
At the international level, growing attention has focussed on a promising instrument called the Nationally Appropriate Mitigation Actions (NAMAs) to reduce Greenhouse Gas (GHG) emissions, and to simultaneously foster sustainable development in emerging markets and developing countries. The project provides technical support to the MoEFCC to develop the first NAMAs in the sectors of waste and forestry. The project applies a participatory approach, bringing together various stakeholders from the public and private sectors. This multi-stakeholder approach builds the necessary broad support for proper and successful subsequent implementation of NAMAs. The objective of this project is to contribute to the achievement of the Indian climate goals and to introduce the experiences made into the policy formulation process by piloting and proofing the NAMA concept in Waste and Forestry Sector. By piloting the developed NAMA concepts in both the sectors, the project develops necessary capacities and instruments for access to climate financing.
The project comprises the following activities:
- Developing a National Climate Change Mitigation Action Manual including a definition and a framework for the development and management of NAMAs in India.
- Developing fully fledged and bankable NAMA concepts for the waste and forestry sectors, including Monitoring, Reporting and Verification (MRV) systems.
- Preparing outlines for NAMA Support Projects (NSP) under the fourth (October 2016), the fifth call of the NAMA Facility (March 2018) and other financing avenues.
- Capacity building for public and private sector actors, such as specific trainings on NAMAs and the MRV.
India, whose yearly emissions follow only two nations, China and the US, is a prominent player in global climate politics and plays a crucial role in meeting the goals of the Paris Agreement. Carbon markets have played a significant role in India’s climate policy since the Kyoto Protocol. GIZ India has been implementing the Indian chapter of the global project called ‘BMU CDM JI Initiative’ since 2008 with a focus on developing Clean Development Mechanism (CDM) projects and building capacities. Considering the evolving nature of the carbon markets, the project was rechristened as ‘Global Carbon Market’ in 2013 and expanded its scope to climate finance, voluntary carbon markets and carbon pricing aspects.
The project supports the public and private sector decision makers and other actors in using existing and new carbon market instruments for implementing the national climate change goals and targets. The project is supporting public and private decision makers on discussions and engagements on Article 6 of the Paris Agreement along with strategic development of new instruments. The project advises and builds the capacities of government agencies, public enterprises and private sector actors on the potential benefits of the carbon market, including the use of new market mechanisms and carbon pricing approaches. In addition, through studies and pilot activities, the project provides inputs for potential mechanisms that could be developed as per Article 6 of the Paris Agreement. This project provides evidence-based policy advisory through comprehensive, demand driven and sector specific studies and reports. Experiences suggest that capacity building is critical in both public and private sector. MoEFCC’s recent interest in consolidating stakeholder voices on Article 6 of the Paris Agreement (dedicated to markets) is a welcome move in the direction of formulating India’s position. The Global Carbon Market (GCM) project has been supporting the Indian government in this endeavour by jointly organising such consultations. The project also aims to facilitate national and international knowledge exchange and institutional networks resulting in more visible and active role of India in international climate negotiations and other fora.
To deal with climate impacts, India needs to strengthen its capacities. Cooperation is vital for implementing India’s initiatives and plans aimed towards addressing and coping with climate change.
The ICCC project promotes dialogue and knowledge exchange among governments, research institutes, academia, and civil society to coordinate actions on climate change. It proposes to create a hub or an institutional mechanism to act as an interface between science, policy and practice. This will serve as a climate-action think tank and a vibrant knowledge network to coordinate climate change actions. This coordination of knowledge will contribute in achieving India’s climate goals as well as the UN Sustainable Development Goals
Building an institutional mechanism is the central goal of the ICCC project. The coordination structures will advise line ministries on mainstreaming climate-change actions and help them build their capacities to put climate policies into effect. The project will foster networking and partnerships by establishing an Indo-European expert group on climate science. This will facilitate the exchange of ideas, identify areas of common concern, develop national coordination structures and plan joint research activities to help achieve climate goals. The knowledge exchange will benefit both India and European climate action. Additional project outcome is to create a web portal for public information on climate change. This will make publicly available documents, publications, videos and other media on climate science, policies and good practices to pursue sustainable lifestyles and a healthy environment.
CAFRI was initiated as part of Indo-German Bilateral Cooperation in partnership with MoEFCC with Himachal Pradesh and Uttar Pradesh as state level partners and the National Bank for Agriculture and Rural Development (NABARD) with the objective that the implementation of the Indian nationally determined contribution (NDC) on climate adaptation is improved with regard to need- and evidence-based planning of adaptation initiatives and climate-sensitive design of financial instruments. In the process, the project aims at reducing climate change risks of vulnerable population groups and sectors as well as develop capacities of different actors in the planning, implementation and financing of climate adaptation initiatives at the state level. Thematic areas for the project support comprise 1) Gender-responsive participatory adaptation planning and implementation on a local level; 2) Impact assessment and monitoring of adaptation related initiatives; 3) Innovative funding sources for adaptation; and 4) collaboration & coordination at national and subnational levels for implementing the NAPCC and SAPCC
The project envisages 3 major outputs:
Output 1 aims to improve the planning and impact monitoring of adaptation-relevant measures. The project would develop appropriate participation formats and procedures with the national and State authorities to ensure that local needs are incorporated into the development of adaptation projects.
Output 2 focusses on the increased use of existing development programmes and innovative new sources of finance to fund gender-sensitive measures that are relevant to climate adaptation. NABARD will receive methodological and process-related advice from the project. These inputs from the project will aid in the development of a climate risk assessment instrument. Together with NABARD and the private sector, the project will also further develop ideas on how private sector resources can be systematically mobilised to finance adaptation to climate change.
Output 3 aims at improving coordination and cooperation between the various actors in the field of adaptation, in particular at state level.
European Union (EU)
The global programme “Strategic partnerships for the implementation of the Paris Agreement (SPIPA)” contributes to European Union’s (EU’s) climate diplomacy efforts and cooperation between the EU and non-European major economies to promote the implementation of the Paris Agreement. It translates the political commitment for advancing bilateral dialogues and cooperation in the field of climate action into concrete interventions in line with the global ambition level as set by the Paris Agreement. The project objectives are to (1) Facilitate the exchange of climate policy options and good practices between the EU and non-European major economies with a view to enable policy changes; (2) Advance bilateral cooperation and investment in pursuit of the goals of the Paris Agreement and of Nationally-Determined Contributions, and (3) Contribute to improve public awareness, including by the business community, of challenges and opportunities associated with the implementation of the Paris Agreement. The project will focus on stepping up upstream policy collaboration along four thematic axes: mitigation policy instruments, mid- century strategies/renewal of nationally determined contributions to the Paris Agreement, climate transparency and adaptation planning.
By fostering exchanges and collaborations among national and subnational administrations, business communities, the academia and civil society stakeholders from the EU and other major economies, the project will encourage and assist major economies in making their best efforts towards the goals of the Paris Agreement, harnessing international economic and political relations to move quicker together towards its full implementation. The impact of the project is ideally that the non-European G20 countries effectively implement the Paris Agreement and their Nationally Determined Contributions (NDCs) and thus embark on low- carbon and climate resilient development pathways.
The project will be implemented in close collaboration with the European Commission and the European External Action Service, with funding from the EU Partnership Instrument and the German Federal Ministry for the Environment, Nature Conservation, and Nuclear Safety (BMU). It will build on and complement existing European climate policy dialogues and cooperation with major economies, including under the strategic cooperation with South Africa and the respective bilateral EU-SA Forum on Climate Change, Environment, Sustainable Development and Water, and the BMU bilateral climate portfolio in the country.
The overall goal of this program is to contribute to India’s sustainable and inclusive development objectives through the increased use of renewable energy, clean technology and energy efficiency in the delivery of municipal services, the new building construction market, and SME clusters/supply chains in selected ecocities in India (Bangalore, Bhubaneswar, Chennai, Pune, and Mumbai/Thane, with replication to other cities across India).
The program is implemented through three components:
Climate-Smart Municipal Services: This component aims to promote energy efficiency, renewable energy and clean technology projects and practices in the delivery of municipal services and replace ageing infrastructure by involving the private sector through public private partnerships and other funding mechanisms.
Green Building Market Development: IFC promotes building resource efficiency through more energy efficient building envelopes and facades, more efficient lighting, air conditioning and ventilation systems, less water consumption, and more sustainable materials in the construction of new buildings. This component aims to accelerate the uptake of green buildings in India.
Promoting Competitive SMEs: This component aims to facilitate financing for SMEs by working through financial institutions and help factories implement projects that address manufacturing and supply chain inefficiencies, reduce operating costs, and improve competitiveness and productivity.
Through State-Level Action Plans on Climate Change (SAPCC), state governments are responsible for developing state specific mitigation action programmes for the power, transport, industry, buildings and municipal energy efficiency and forestry sectors in line with the NAPCC. In partnership with the Ministry of Environment Forest and Climate Change (MoEFCC) and with support from the Global Environment Facility (GEF), UNDP is implementing a project on ‘Market Transformation and Removal of Barriers for Effective Implementation of the State Level Climate Change Action Plan, with the aim to reduce greenhouse gas emissions achieved through the implementation of renewable energy and energy efficiency (RE/EE) solutions at the state level.
- Reduction of greenhouse gas emissions achieved through the implementation of RE/EE solutions at the state level as identified in the SAPCCs.
- Removal of barriers for effective implementation of RE/EE actions at the state level.
United Nations Secretary General (UNSG) Climate Action Summit
The Climate Action Summit was convened by Secretary General of United Nations in New York on 23rd September 2019 to boost climate ambitions and actions to implement Paris agreement.
India along with Sweden launched the Leadership Group for Industry Transition with the support of World Economic Forum to work towards accelerating voluntary transition of all industry sectors particularly in areas of hard to abate industrial sectors to low carbon pathways in line with the goals of Paris Agreement. Stockholm Environment Institute serves as Secretariat for the Leadership Group for Industry Transition. The Leadership Group is envisioned as a group of countries, companies, and other actors voluntarily committed to enhance climate action and to support the implementation of Nationally Determined Contributions (NDCs) of the countries under Paris agreement while acknowledging the principles and provisions of United Nations Framework Convention on Climate Change (UNFCCC) and the Paris Agreement including equity and Common but Differentiated Responsibilities and Respective Capabilities (CBDR-RC). So far, 12 countries including India and Sweden and 11 companies including three from India have joined as members of Leadership Group. Countries who have joined India and Sweden in the group are Argentina, Australia, Finland, France, Germany, Ireland, Luxembourg, the Netherlands, South Korea and the UK. Companies including Dalmia Cement, Mahindra Group, DSM, SpiceJet, Heathrow Airport, Luossavaara-Kiirunavaara Aktiebolag (LKAB), Royal Schiphol Group, Scania, SSAB, ThyssenKrupp and Vattenfall have joined.
India has also joined a Call to Action on Adaptation and Resilience launched by UK and Egypt under the action track on Adaptation and Resilience under the Summit. The call was supported by Bangladesh, Malawi, the Netherlands and Saint Lucia, supported by the UN Development Program. So far, a total of 112 countries and 68 other institutions have joined the Call.
UNSG has released a report on the major outcomes of the Summit.
Global Commission on Adaptation (GCA)
Global Commission on Adaptation (GCA) was launched in 2018 to advance and scape up climate adaptation actions. GCA is promoted by the Netherlands along with Ban Ki-moon, Bill Gates, World Bank and is managed by Global Center on Adaptation and World Resources Institute. The Managing Partners coordinate and support the engagement activities of Commissioners, help to deliver research products, and support the overall functioning of the Commission’s work. India is one of the 17 convening members of the Commission. Secretary for Environment, Forest and Climate Change, Government of India is one of the 29 commissioners.
The Commission released a Flagship Report titled “Adapt Now: A Global Call For Leadership On Climate Resilience” in September 2019 setting out why adapting to climate risks is important highlighting human, environmental and economic imperatives, what new actions need to be taken and what existing actions must be done differently and how can we start the work today to make the world better. The report has been informed by inputs from the world’s leading scientific, economic and policy analysis. The report finds that investing $1.8 trillion globally in five areas from 2020 to 2030 could generate $7.1 trillion in total net benefits.
Memorandum of Understanding/ Cooperation (MoU)/(MoC)