Climate Finance at the Sub-National Level – the Case of Odisha

This study provides recommendations on financing strategies for State Action Plans on Climate Change (SAPCC), based on learnings from Odisha’s experience.

Background
States Governments in India  have embarked on developing action plans for low-carbon and climate resilient development, in line with national efforts through the National Action Plan on Climate Change (NAPCC). This study aims to develop financing strategies that would assist the Central and State Governments in implementing the State Action Plans on Climate Change (SAPCC) in an effective and efficient manner. This report aims to help States and promote their efforts with regards to some of these issues by using Odisha (erstwhile Orissa) as a case study.
Approach
Phase I of this study included a comparative analysis of the SAPCCs of six Indian states against a set of criteria. An in-depth analysis of plans was conducted to develop strategies to fund the SAPCCs. This study used Odisha (erstwhile Orissa) as a case study to identify approaches and frameworks that could potentially be applicable to all other states.

Key Findings

There are broadly three different sources of climate finance available to States: public (domestic), private and international public finance. There is a need to improve synergies among the various sources and better targeting of both existing and additional funds. Transparency regarding the flow and use of funds will increase coordination and cooperation among different funding sources, as well as better leveraging of scarce financial resources to achieve climate change goals.

Implications
Findings from this study have important implications for enabling state missions in accessing funds, in line with their climate action plans. Although the immediate results and findings are relevant to Odisha, some of the broader strategies and in particular, the approach and analytical frameworks used to arrive at these findings would be applicable to and potentially useful for all Indian States.

Thematic area

Institutions

Project Leads

Koyel Mandal, Shivaranjani.V, Sunanda Rathi, Vivek Venkataramani

Location

Odisha

Partners

Department for International Development (DFID)

Status

Completed