Climate Policy Initiative India releases its report on ‘Financing Adaptation in India’
Getting Adaptation to center stage for coping with the adverse impacts of climate change in India.
21 February 2024, New Delhi: In response to the growing urgency to devise requisite policy measures to increase Adaptation investments in India, the Center for Sustainable Finance (CSF) at the Climate Policy Initiative (CPI) India has released its report on ‘Financing Adaptation in India’. India’s approach to adaptation as a developmental strategy is highlighted in the report. It estimates adaptation investment needs of states in India and the funding gaps, exploring ways to bridge these gaps.
India, with its diverse geospatial and socio-economic conditions, stands as one of the most vulnerable countries to climate change. The adverse impacts of climate change are already undercutting the significant strides made towards achieving India’s Sustainable Development Goals. By 2040, over 50 million people in India could be thrust below the poverty line due to the detrimental impact on Indian agriculture and other related livelihoods sectors.
Despite India’s approach to climate adaptation being anchored in broader development initiatives, systemic challenges impede progress. A unified framework for assessing climate related physical risk and a methodology to distinguish adaptation and development are needed, along with a better understanding of adaptation investment needs and funding gaps, which then could evolve further as institutional measures for developing Resilience to climate change.
Ms Malini Chakravarty, Lead author of the report, noted, “not taking adequate and timely adaptive action carries a massive cost for India. Hence exploring innovative financing solutions is crucial. By adopting a multi-pronged approach that includes the Finance Commission shaping its tax devolution principles to direct resources to the most climate vulnerable states and districts, India can increase its adaptation efforts, critical for sustainable and climate resilient future of the country.”
Speaking at the report launch event, Dr Dhruba Purkayastha, India Director, Climate Policy Initiative India, stated, “India needs to prioritize policy and institutional action of Adaptation with focus on Vulnerable states by developing programs for implementing adaptation, followed by building Resilience actions. Bridging investment gaps requires mainstreaming of adaptation investments through budget allocations and leveraging public finance for attracting commercial investments. Assessing adaptation investment needs at both national and subnational levels is the first step to enabling informed policy and financing decisions.”
The ‘Financing Adaptation in India’ report is an assessment of adaptation investment needs and funding gaps across states in India that have updated their State Action Plan on Climate Change (SAPCCs). This report offers insights on mobilizing finance from public, private, and blended sources for adaptation investment. This report is timely publication for policymakers, financiers, and other key stakeholders to take cognizance of the need to increase Adaptation investments in India for coping with the adverse impacts of climate change.
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About Climate Policy Initiative India Private Limited
Climate Policy Initiative(CPI) is an analysis and advisory organization with deep expertise in finance and policy. Our mission is to support governments, businesses, banks, and financial institutions to drive economic growth while addressing climate change. CPI has six offices around the world in Brazil, India, Indonesia, the United Kingdom, and the United States.
Climate Policy Initiative India Private Limited (CPI India) works to support India’s clean energy mission directed by its Nationally Determined Contributions (NDC) through clean energy market catalyzing initiatives, such as the US India Clean Energy Finance (USICEF), India Clean Energy Finance (ICEF), Productive Use of Renewable Energy (PURE), India Distributed Solar Finance initiative (IDSF), and The Global Innovation Lab for Climate Finance (India Chapter); In addition, CPI India works on capacity building initiatives, such as the Center for Sustainable Finance (CSF); and carries out analytical work for transitioning towards a sustainable energy future, such as Futureproofing Strategy for PSUs, and Just Energy Transition. Learn more at: www.climatepolicyinitiative.org
