This study audits the public and private financial contribution to realizing low carbon commitments of the State of Tamil Nadu while identifying the gaps and barriers to investment.
Unmitigated climate change will have a significant long-term impact on people, ecosystems and the global economy. Carbon impact, a considerable driver of climate change, is instrumental in global rise in temperature which can wreak havoc on the global population. To contain, if not reverse the carbon impact, we need large-scale planning and investment at the highest level. This study assesses the current status of the low carbon finance scenario in the state of Tamil Nadu. Further, the study endeavours to detect gaps in investment which need to be filled in order to meet the low carbon targets proposed by the state. Additionally, this report attempts to bring together public and private sector low carbon investment data and highlights some of the barriers to low carbon investment.
Absence of clear guidelines of low carbon investment requirements from either national or state-level bodies makes it challenging to measure and compare the current and past investment levels. This study appraises various state policies, plans and targets announced against the public as well as the private investments made in renewable energy sources such as wind & solar, and other infrastructure-based sectors such as transport. The study also analyses the efficacy of the climate change policies by assessing the energy outputs, feed-in tariffs etc. over a period of time.
Low carbon finance reporting at the state-level will provide a comprehensive analysis of the relative levels of public and private investments and serve as a benchmark to draw conclusions about the efficacy of public subsidy to leverage private sector spending. The study can also aid the state in budgetary requirements to promote policy framework around climate change contributing to a low carbon economy. Further, by comparing per capita investment in the state to other states in India or internationally, the government can calibrate its progress to achieving its low carbon targets.