Financing State Climate Actions: Initiatives in Gujarat and Madhya Pradesh

Research Team: Vivek Venkataramani, V. Shivaranjani, Radhika Sundaresan
LEAD Centre: Centre for Development Finance (CDF)
Focus Area: Environment & Climate Change
Project Geography: Gujarat, Madhya Pradesh
Partner: Shakti Sustainable Energy Foundation (SSEF)
Status: Completed

Background:

Over the last decade or so, there has been growing awareness at the Central and sub-national levels in India regarding the importance of action plans on climate change. However, climate finance requirements are very high and will need to be met through a combination of domestic and international climate finance. Given this context, this project seeks to sensitise State department officials of two states, Gujarat and Madhya Pradesh, about the landscape of climate finance, both domestic and international, and the modalities involved in accessing it. It also aims to facilitate the documentation of potential concept notes for States. These concept notes can then be developed further and submitted to either domestic or domestic international climate funds.

The project consisted of stakeholder consultation workshops in each State which helped in gathering first-hand information on their climate initiatives and sensitising them on funding sources. Based on an in-depth understanding of the barriers faced by the implementing agencies in preparing concept notes for dedicated climate funds, we propose a set of draft guidelines to be considered during such submissions. Another integral component of this project was to take stock of the States’ engagement with NABARD which is the Accredited Entity (AE) for the National Adaptation Fund on Climate Change (NAFCC) and the Green Climate Fund (GCF) in India. The Project Report also provides specific recommendations on enhancing this engagement as well, based on detailed feedback and inputs from select States.