A stakeholder consultation workshop on “Understanding India’s Climate Financing needs and its mobilization with focus on Green Climate Fund (GCF)” was organized by Ministry of Environment, Forest and Climate Change, Government of India under the ongoing GCF Readiness Program on 24th June 2022 in New Delhi. This workshop is part of an ongoing effort to understand India’s Climate Financing needs and scale of investments needed to be mobilized to accelerate investment in climate resilient development in India.
The inaugural session of the workshop was attended by Ms. Leena Nandan, Environment Secretary, Ms Anupa Rimal Lamichhane, Regional Manager, Green Climate Fund, Ms Shoko Noda, UNDP Resident Representative. The Key Note Address was given by Shri Ajay Seth, Secretary, Department of Economic Affairs, Ministry of Finance.
Ms Leena Nandan, Secretary, MoEFCC, in her address, focused on need for understanding the range of costs for meeting India’s ambitious climate actions which will indicate the scale of investments needed to be mobilized and also would help in identifying policies that will spur low carbon and resilient growth and emphasized that the role of public sources of funding would remain critical to mobilizing and leveraging private capital. She stressed on the scope, scale and speed of climate finance, which have to increase considerably to match the aspirations of an emerging economy like India. She emphasized on community level development projects which have the potential to generate green credits. Green credits generated through carbon market can also act as an effective vehicle to attract investments.
Recalling the Hon’ble Prime Minister’s statement at COP 26 “Mindful and Deliberate Utilization, instead of Mindless and Destructive Consumption”, Shri Ajay Seth, Secretary, DEA in his key note address highlighted the importance of assessing sector by sector climate finance requirements towards low carbon transition. He noted that the sectoral roadmaps to be prepared for key sectors of economy should cover the externalities and the delta for viability. While emphasising the equity and Common but Differentiated Responsibilities and Respective Capabilities (CBDR-RC) in global transition towards low carbon and climate resilient pathways, the vulnerable sectors and communities such as MSMEs, small and marginal farmers, and rural communities should be factored in for the additional premium associated with low carbon transition.
The workshop has focused on understanding India’s financial needs for climate actions with a focus on various financial instruments by its two technical sessions on Assessing India’s Financing Needs and Leveraging Climate Finance to meet the needs where dignitaries from Government of India, Private Sectors and Financial Institutions participated. The workshop thereby addressed ways of mobilizing the requisite finance at a scale to bring the much-needed shift to a transition towards the sustainable development path. The workshop stressed on the viability of financial instruments. The Workshop noted that sustainability path significantly raises the need for Finance and Human, Technological, Institutional, and Regulatory capacity. Financial resources and the said capacities grow as the country steps up the development trajectory. The workshop also addressed the experiences and success stories of Rewa Solar Power Project and attracting scalable private finance and the need for designing bankable projects sourcing. The Line Ministries/ Departments of Government of India, Private Sector Stakeholders, Financial Institutions, GCF Accredited Entities, Executing Entities, Implementing Entities and other relevant stakeholders participated in the workshop and shared their experiences and views.
The workshop emphasized on identifying the ways to drive short-term recovery and long-term resilience; leverage investments in least-cost energy solutions, resilient and secure energy systems, efficiency and competitiveness, and social and environmental equity for a sustainable future. The GCF secretariat has also provided their expert views on facilities available under the GCF. This consultation workshop has tried to strengthen the ongoing engagement with various stakeholders including the private sector and financial institutions to ensure effective and coherent engagement.