Page 1
10
CHAPTER
271
CLIMATE AND
ENVIRONMENT:
ADAPTATION MATTERS
India needs to achieve robust economic growth to attain developed nation
status by 2047, with a focus on inclusive and sustainable development. While
the country has low per capita carbon emissions, it is committed to pursuing
low-carbon growth. However, it faces challenges in deploying renewable
energy, particularly due to a lack of storage technology and access to minerals.
Given India's vulnerability to climate change, a strong adaptation strategy
is essential; the increase in adaptation expenditures from 3.7 per cent to 5.6
per cent of GDP between FY16 and FY22 indicates the prominence adaptation
and building resilience play in the development strategy. The Lifestyle for
Environment (LiFE) initiative, designed to encourage sustainable practices and
circular economy, will play a transformative role in the development process.
The flow of international finance has remained grossly inadequate, with much
of the action being financed from domestic resources. The outcomes from the
recent CoP29 hold little promise on that account.
INTRODUCTION
10.1 India’s ambition to achieve developed nation status by 2047 is fundamentally
anchored in the vision of inclusive and sustainable development. Notably, India’s per
capita carbon emissions are one-third of the global average, even as it stands among the
world's fastest-growing economies. The country is dedicated to identifying and exploring
pathways for low-carbon development that simultaneously ensure affordable energy
security, job creation, economic growth, and environmental sustainability. However,
India's aspiration for low-carbon economic growth presents significant trade-offs.
While the nation has made remarkable progress in building renewable energy capacity,
effectively harnessing and scaling these resources remains challenging due to the lack
of viable storage technologies and limited access to essential minerals.
10.2 A strong adaptation strategy is a priority for the country, given its significant
vulnerability to climate change, stemming from its geographic and agro-climatic
diversity.
1
India’s Initial Adaptation Communication, submitted to the United Nations
1 Khanna, P. (2024, December 29). India is overlooking the climate drag on its economic growth. Financial Times.
Retrieved January 4, 2025, from https://tinyurl.com/cbkc3hjx.
Page 2
10
CHAPTER
271
CLIMATE AND
ENVIRONMENT:
ADAPTATION MATTERS
India needs to achieve robust economic growth to attain developed nation
status by 2047, with a focus on inclusive and sustainable development. While
the country has low per capita carbon emissions, it is committed to pursuing
low-carbon growth. However, it faces challenges in deploying renewable
energy, particularly due to a lack of storage technology and access to minerals.
Given India's vulnerability to climate change, a strong adaptation strategy
is essential; the increase in adaptation expenditures from 3.7 per cent to 5.6
per cent of GDP between FY16 and FY22 indicates the prominence adaptation
and building resilience play in the development strategy. The Lifestyle for
Environment (LiFE) initiative, designed to encourage sustainable practices and
circular economy, will play a transformative role in the development process.
The flow of international finance has remained grossly inadequate, with much
of the action being financed from domestic resources. The outcomes from the
recent CoP29 hold little promise on that account.
INTRODUCTION
10.1 India’s ambition to achieve developed nation status by 2047 is fundamentally
anchored in the vision of inclusive and sustainable development. Notably, India’s per
capita carbon emissions are one-third of the global average, even as it stands among the
world's fastest-growing economies. The country is dedicated to identifying and exploring
pathways for low-carbon development that simultaneously ensure affordable energy
security, job creation, economic growth, and environmental sustainability. However,
India's aspiration for low-carbon economic growth presents significant trade-offs.
While the nation has made remarkable progress in building renewable energy capacity,
effectively harnessing and scaling these resources remains challenging due to the lack
of viable storage technologies and limited access to essential minerals.
10.2 A strong adaptation strategy is a priority for the country, given its significant
vulnerability to climate change, stemming from its geographic and agro-climatic
diversity.
1
India’s Initial Adaptation Communication, submitted to the United Nations
1 Khanna, P. (2024, December 29). India is overlooking the climate drag on its economic growth. Financial Times.
Retrieved January 4, 2025, from https://tinyurl.com/cbkc3hjx.
Economic Survey 2024-25
272
Framework Convention on Climate Change (UNFCCC) in December 2023, reveals
that the total expenditure related to adaptation in FY22 was 5.6 per cent of the Gross
Domestic Product (GDP), an increase from 3.7 per cent in FY16. Climate action, so far,
has been financed through domestic resources, with the public sector playing a central
role. On the other hand, the international flow of funds for climate actions is highly
inadequate and has a mitigation bias (Chart 1).
10.3 Following a low-carbon development pathway and achieving the net zero carbon
emissions goal necessitates a fundamental shift in mindset and behaviour towards
mindful consumption and production. The India-led global movement, Lifestyle for
Environment (LiFE), aims to enhance the country’s sustainability efforts. The LiFE
initiatives are being executed in India in mission mode through various regulatory
measures and policies that encourage environmentally friendly practices such as waste
management, resource conservation, and recycling. Promoting a circular economy is
also envisioned as a central component under the Mission LiFE.
10.4 The recent outcome of the New Collective Quantified Goal at CoP29 (29th session
of the annual climate conference under the UNFCCC) held in Baku in November 2024
on finance presents little optimism about the possibility of support to developing
countries. With the developed countries also falling short of their Nationally
Determined Contributions (NDCs) by about 38 per cent,
2
their actions do not reflect
the historical responsibility or the leadership in meeting their obligations. The lack of
commitment and insufficient delivery of the means of implementation,
3
as mandated in
the Paris Agreement, will make the low-carbon transition in developing countries more
challenging.
Chart X.1: International flow of finance in 2021-22 (in USD billion)
30.4
19.6
1.1
16.4
10.5
0.6
0
5
10
15
20
25
30
35
MDB Climate Finance Bilateral Climate Finance Multilateral Climate Fund
Mitigation
Adaptation
Source: Based on the Sixth Biennial Assessment and Overview of Climate Finance Flows by the Standing
Committee of Finance, UNFCCC. The flow of finance to cross-cutting actions has not been included here. The
report can be accessed at https://tinyurl.com/52md2zht.
2 CEEW (October 26, 2023). Trust and Transparency in Climate Action. Retrieved December 23, 2024, from
https://www.ceew.in/publications/trust-and-transparency-climate-action-research.
3 Finance, Technology and Capacity Building are regarded as the means of implementation.
Page 3
10
CHAPTER
271
CLIMATE AND
ENVIRONMENT:
ADAPTATION MATTERS
India needs to achieve robust economic growth to attain developed nation
status by 2047, with a focus on inclusive and sustainable development. While
the country has low per capita carbon emissions, it is committed to pursuing
low-carbon growth. However, it faces challenges in deploying renewable
energy, particularly due to a lack of storage technology and access to minerals.
Given India's vulnerability to climate change, a strong adaptation strategy
is essential; the increase in adaptation expenditures from 3.7 per cent to 5.6
per cent of GDP between FY16 and FY22 indicates the prominence adaptation
and building resilience play in the development strategy. The Lifestyle for
Environment (LiFE) initiative, designed to encourage sustainable practices and
circular economy, will play a transformative role in the development process.
The flow of international finance has remained grossly inadequate, with much
of the action being financed from domestic resources. The outcomes from the
recent CoP29 hold little promise on that account.
INTRODUCTION
10.1 India’s ambition to achieve developed nation status by 2047 is fundamentally
anchored in the vision of inclusive and sustainable development. Notably, India’s per
capita carbon emissions are one-third of the global average, even as it stands among the
world's fastest-growing economies. The country is dedicated to identifying and exploring
pathways for low-carbon development that simultaneously ensure affordable energy
security, job creation, economic growth, and environmental sustainability. However,
India's aspiration for low-carbon economic growth presents significant trade-offs.
While the nation has made remarkable progress in building renewable energy capacity,
effectively harnessing and scaling these resources remains challenging due to the lack
of viable storage technologies and limited access to essential minerals.
10.2 A strong adaptation strategy is a priority for the country, given its significant
vulnerability to climate change, stemming from its geographic and agro-climatic
diversity.
1
India’s Initial Adaptation Communication, submitted to the United Nations
1 Khanna, P. (2024, December 29). India is overlooking the climate drag on its economic growth. Financial Times.
Retrieved January 4, 2025, from https://tinyurl.com/cbkc3hjx.
Economic Survey 2024-25
272
Framework Convention on Climate Change (UNFCCC) in December 2023, reveals
that the total expenditure related to adaptation in FY22 was 5.6 per cent of the Gross
Domestic Product (GDP), an increase from 3.7 per cent in FY16. Climate action, so far,
has been financed through domestic resources, with the public sector playing a central
role. On the other hand, the international flow of funds for climate actions is highly
inadequate and has a mitigation bias (Chart 1).
10.3 Following a low-carbon development pathway and achieving the net zero carbon
emissions goal necessitates a fundamental shift in mindset and behaviour towards
mindful consumption and production. The India-led global movement, Lifestyle for
Environment (LiFE), aims to enhance the country’s sustainability efforts. The LiFE
initiatives are being executed in India in mission mode through various regulatory
measures and policies that encourage environmentally friendly practices such as waste
management, resource conservation, and recycling. Promoting a circular economy is
also envisioned as a central component under the Mission LiFE.
10.4 The recent outcome of the New Collective Quantified Goal at CoP29 (29th session
of the annual climate conference under the UNFCCC) held in Baku in November 2024
on finance presents little optimism about the possibility of support to developing
countries. With the developed countries also falling short of their Nationally
Determined Contributions (NDCs) by about 38 per cent,
2
their actions do not reflect
the historical responsibility or the leadership in meeting their obligations. The lack of
commitment and insufficient delivery of the means of implementation,
3
as mandated in
the Paris Agreement, will make the low-carbon transition in developing countries more
challenging.
Chart X.1: International flow of finance in 2021-22 (in USD billion)
30.4
19.6
1.1
16.4
10.5
0.6
0
5
10
15
20
25
30
35
MDB Climate Finance Bilateral Climate Finance Multilateral Climate Fund
Mitigation
Adaptation
Source: Based on the Sixth Biennial Assessment and Overview of Climate Finance Flows by the Standing
Committee of Finance, UNFCCC. The flow of finance to cross-cutting actions has not been included here. The
report can be accessed at https://tinyurl.com/52md2zht.
2 CEEW (October 26, 2023). Trust and Transparency in Climate Action. Retrieved December 23, 2024, from
https://www.ceew.in/publications/trust-and-transparency-climate-action-research.
3 Finance, Technology and Capacity Building are regarded as the means of implementation.
Climate and Environment
273
10.5 The 29th session of the Conference of the Parties to the United Nations Framework
Convention on Climate Change (COP 29) and the 6th Session of the Conference of the
Parties serving as the meeting of the Parties to the Paris Agreement (CMA 6), held in
Baku, Azerbaijan, were designated as the 'Finance COP'. The focus was to establish the
New Collective Quantified Goal (NCQG) on climate finance.
4
The meetings of COP29
and CMA6 presented a significant opportunity to serve as a benchmark for international
climate cooperation and multilateralism, with the potential to influence the efficacy of
climate policies on a global scale and strengthen collaborative efforts by enhancing the
financial commitments to support climate action in developing countries.
10.6 Establishing a small mobilisation target of USD 300 billion annually by 2035 is a
fraction of the estimated requirement of USD 5.1 - 6.8 trillion by 2030.
5
It is out of sync
with the needs of the critical decade when action is required to keep the temperature
goals of the Paris Agreement within reach.
6
The decision demonstrates a significant
misalignment with the Paris Agreement’s mandate to demonstrate a ‘progression beyond
previous efforts’ by developed countries. It underscores the unwillingness of affluent
developed nations to assume their equitable share of the responsibility to address emission
reduction and mitigate climate change impacts on vulnerable populations in developing
regions. The goal contravenes equity and the principle of common but differentiated
responsibility in the global climate response by disproportionately placing the burdens
of climate change on those nations that have not historically contributed to the crisis.
10.7 COP 30 in 2025 is the COP for Climate Action, before which the parties to the Paris
Agreement are to submit their next version of Nationally Determined Contributions.
The funding shortfall may lead to a reworking of the climate targets. Considering
that domestic resources will be the key to action, resources for meeting development
challenges may be affected, undermining progress toward sustainable development
objectives and compromising the integrity of international climate partnerships.
10.8 This chapter is structured into three broad parts. It starts with discussing the
importance of adaptation for India and the measures taken, focuses on energy transition
and the lessons learnt from the experience of the developed countries and weighs
options for India. It ends with an overview of the Lifestyle for Environment (LiFE)
initiative and measures encouraging sustainable practices and circular economy.
4 Conference of the Parties serving as the meeting of the Parties to the Paris Agreement. (2024). New collective
quantified goal on climate finance. In Decision -/CMA.6. Retrieved December 11, 2024, from https://tinyurl.
com/45x593ce.
5 UNFCCC Standing Committee on Finance. (2024). Second report on the determination of the needs of developing
country Parties related to implementing the Convention and the Paris Agreement. In UNFCCC. Retrieved
December 23, 2024, from https://unfccc.int/sites/default/files/resource/UNFCCC_NDR2_ES_Web_Final.pdf.
6 United Nations. (2024). Outcome of the first global stocktake Decision 1/CMA.5 in the Report of the Conference of
the Parties serving as the meeting of the Parties to the Paris Agreement on its fifth session. In Addendum (FCCC/
PA/CMA/2023/16/Add.1). UNFCCC. Retrieved December 23, 2024, from https://unfccc.int/sites/default/files/
resource/cma2023_16a01E.pdf.
Page 4
10
CHAPTER
271
CLIMATE AND
ENVIRONMENT:
ADAPTATION MATTERS
India needs to achieve robust economic growth to attain developed nation
status by 2047, with a focus on inclusive and sustainable development. While
the country has low per capita carbon emissions, it is committed to pursuing
low-carbon growth. However, it faces challenges in deploying renewable
energy, particularly due to a lack of storage technology and access to minerals.
Given India's vulnerability to climate change, a strong adaptation strategy
is essential; the increase in adaptation expenditures from 3.7 per cent to 5.6
per cent of GDP between FY16 and FY22 indicates the prominence adaptation
and building resilience play in the development strategy. The Lifestyle for
Environment (LiFE) initiative, designed to encourage sustainable practices and
circular economy, will play a transformative role in the development process.
The flow of international finance has remained grossly inadequate, with much
of the action being financed from domestic resources. The outcomes from the
recent CoP29 hold little promise on that account.
INTRODUCTION
10.1 India’s ambition to achieve developed nation status by 2047 is fundamentally
anchored in the vision of inclusive and sustainable development. Notably, India’s per
capita carbon emissions are one-third of the global average, even as it stands among the
world's fastest-growing economies. The country is dedicated to identifying and exploring
pathways for low-carbon development that simultaneously ensure affordable energy
security, job creation, economic growth, and environmental sustainability. However,
India's aspiration for low-carbon economic growth presents significant trade-offs.
While the nation has made remarkable progress in building renewable energy capacity,
effectively harnessing and scaling these resources remains challenging due to the lack
of viable storage technologies and limited access to essential minerals.
10.2 A strong adaptation strategy is a priority for the country, given its significant
vulnerability to climate change, stemming from its geographic and agro-climatic
diversity.
1
India’s Initial Adaptation Communication, submitted to the United Nations
1 Khanna, P. (2024, December 29). India is overlooking the climate drag on its economic growth. Financial Times.
Retrieved January 4, 2025, from https://tinyurl.com/cbkc3hjx.
Economic Survey 2024-25
272
Framework Convention on Climate Change (UNFCCC) in December 2023, reveals
that the total expenditure related to adaptation in FY22 was 5.6 per cent of the Gross
Domestic Product (GDP), an increase from 3.7 per cent in FY16. Climate action, so far,
has been financed through domestic resources, with the public sector playing a central
role. On the other hand, the international flow of funds for climate actions is highly
inadequate and has a mitigation bias (Chart 1).
10.3 Following a low-carbon development pathway and achieving the net zero carbon
emissions goal necessitates a fundamental shift in mindset and behaviour towards
mindful consumption and production. The India-led global movement, Lifestyle for
Environment (LiFE), aims to enhance the country’s sustainability efforts. The LiFE
initiatives are being executed in India in mission mode through various regulatory
measures and policies that encourage environmentally friendly practices such as waste
management, resource conservation, and recycling. Promoting a circular economy is
also envisioned as a central component under the Mission LiFE.
10.4 The recent outcome of the New Collective Quantified Goal at CoP29 (29th session
of the annual climate conference under the UNFCCC) held in Baku in November 2024
on finance presents little optimism about the possibility of support to developing
countries. With the developed countries also falling short of their Nationally
Determined Contributions (NDCs) by about 38 per cent,
2
their actions do not reflect
the historical responsibility or the leadership in meeting their obligations. The lack of
commitment and insufficient delivery of the means of implementation,
3
as mandated in
the Paris Agreement, will make the low-carbon transition in developing countries more
challenging.
Chart X.1: International flow of finance in 2021-22 (in USD billion)
30.4
19.6
1.1
16.4
10.5
0.6
0
5
10
15
20
25
30
35
MDB Climate Finance Bilateral Climate Finance Multilateral Climate Fund
Mitigation
Adaptation
Source: Based on the Sixth Biennial Assessment and Overview of Climate Finance Flows by the Standing
Committee of Finance, UNFCCC. The flow of finance to cross-cutting actions has not been included here. The
report can be accessed at https://tinyurl.com/52md2zht.
2 CEEW (October 26, 2023). Trust and Transparency in Climate Action. Retrieved December 23, 2024, from
https://www.ceew.in/publications/trust-and-transparency-climate-action-research.
3 Finance, Technology and Capacity Building are regarded as the means of implementation.
Climate and Environment
273
10.5 The 29th session of the Conference of the Parties to the United Nations Framework
Convention on Climate Change (COP 29) and the 6th Session of the Conference of the
Parties serving as the meeting of the Parties to the Paris Agreement (CMA 6), held in
Baku, Azerbaijan, were designated as the 'Finance COP'. The focus was to establish the
New Collective Quantified Goal (NCQG) on climate finance.
4
The meetings of COP29
and CMA6 presented a significant opportunity to serve as a benchmark for international
climate cooperation and multilateralism, with the potential to influence the efficacy of
climate policies on a global scale and strengthen collaborative efforts by enhancing the
financial commitments to support climate action in developing countries.
10.6 Establishing a small mobilisation target of USD 300 billion annually by 2035 is a
fraction of the estimated requirement of USD 5.1 - 6.8 trillion by 2030.
5
It is out of sync
with the needs of the critical decade when action is required to keep the temperature
goals of the Paris Agreement within reach.
6
The decision demonstrates a significant
misalignment with the Paris Agreement’s mandate to demonstrate a ‘progression beyond
previous efforts’ by developed countries. It underscores the unwillingness of affluent
developed nations to assume their equitable share of the responsibility to address emission
reduction and mitigate climate change impacts on vulnerable populations in developing
regions. The goal contravenes equity and the principle of common but differentiated
responsibility in the global climate response by disproportionately placing the burdens
of climate change on those nations that have not historically contributed to the crisis.
10.7 COP 30 in 2025 is the COP for Climate Action, before which the parties to the Paris
Agreement are to submit their next version of Nationally Determined Contributions.
The funding shortfall may lead to a reworking of the climate targets. Considering
that domestic resources will be the key to action, resources for meeting development
challenges may be affected, undermining progress toward sustainable development
objectives and compromising the integrity of international climate partnerships.
10.8 This chapter is structured into three broad parts. It starts with discussing the
importance of adaptation for India and the measures taken, focuses on energy transition
and the lessons learnt from the experience of the developed countries and weighs
options for India. It ends with an overview of the Lifestyle for Environment (LiFE)
initiative and measures encouraging sustainable practices and circular economy.
4 Conference of the Parties serving as the meeting of the Parties to the Paris Agreement. (2024). New collective
quantified goal on climate finance. In Decision -/CMA.6. Retrieved December 11, 2024, from https://tinyurl.
com/45x593ce.
5 UNFCCC Standing Committee on Finance. (2024). Second report on the determination of the needs of developing
country Parties related to implementing the Convention and the Paris Agreement. In UNFCCC. Retrieved
December 23, 2024, from https://unfccc.int/sites/default/files/resource/UNFCCC_NDR2_ES_Web_Final.pdf.
6 United Nations. (2024). Outcome of the first global stocktake Decision 1/CMA.5 in the Report of the Conference of
the Parties serving as the meeting of the Parties to the Paris Agreement on its fifth session. In Addendum (FCCC/
PA/CMA/2023/16/Add.1). UNFCCC. Retrieved December 23, 2024, from https://unfccc.int/sites/default/files/
resource/cma2023_16a01E.pdf.
Economic Survey 2024-25
274
BRINGING ADAPTATION TO THE FOREFRONT
10.9 India is the seventh most vulnerable country to climate change.
7
It suffers from
weather extremes and hazards, slow onset events such as sea-level rise, biodiversity
loss, and water insecurity. While greenhouse gas (GHG) emissions are a global bad and
the benefits of mitigation are diffused, vulnerable developing countries such as India
have to bear a disproportionate burden of climate change and have no choice but to face
the climate change consequence of historical emissions. The emissions remain with us.
They impose huge costs on already resource-constrained countries. Hence, vulnerable
developing countries such as India need to undertake climate adaptation on an urgent
footing as this has a direct impact on lives, livelihoods and the economy.
10.10 The Ministry of Environment, Forest and Climate Change (MoEFCC) has
initiated the process of developing the National Adaptation Plan (NAP). The NAP is a
vital strategic document articulating India’s adaptation priorities. The process aims to
develop a comprehensive and inclusive NAP that aligns with sustainable development
goals and ensures climate resilience for all regions and sectors. This is in addition to
the Initial Adaptation Communication submitted to the UNFCCC on 9 December 2023,
highlighting the country's adaptation priorities, strategies, policies, and programmes
along with implementation support needs for adaptation action.
10.11 Implementing effective adaptation strategies will necessitate a multi-faceted
approach that includes policy initiatives, sector-specific strategies, development of
resilient infrastructure, research and development, and securing financial resources
for adaptation efforts. Furthermore, these adaptation measures should be tailored to
regional specificities, given India's significant diversity of geographic and agro-climatic
conditions. The following subsections discuss the initiatives to build resilience across
sectors.
Adaptation in agriculture
10.12 Heat and water stress can negatively impact yields, posing challenges for India’s
food security. Adaptation strategies in agriculture have included enhanced focus on
research and development of climate-resilient seeds, measures to preserve and enhance
groundwater resources, improve soil health, and modify cropping practices, among
other measures. The chapter on Agriculture and Food Management discusses measures
to improve adaptation in agriculture in detail.
Building resilience in urban areas
10.13 With increasing urbanisation and climate change impacts, comprehensive
adaptation action to address heat stress, urban flooding, and depleting groundwater in
7 Global Climate Risk Index. (2021). The 10 most affected countries in 2019. Table 1. Page 8. Retrieved December
27, 2024, from https://www.germanwatch.org/en/19777.
Page 5
10
CHAPTER
271
CLIMATE AND
ENVIRONMENT:
ADAPTATION MATTERS
India needs to achieve robust economic growth to attain developed nation
status by 2047, with a focus on inclusive and sustainable development. While
the country has low per capita carbon emissions, it is committed to pursuing
low-carbon growth. However, it faces challenges in deploying renewable
energy, particularly due to a lack of storage technology and access to minerals.
Given India's vulnerability to climate change, a strong adaptation strategy
is essential; the increase in adaptation expenditures from 3.7 per cent to 5.6
per cent of GDP between FY16 and FY22 indicates the prominence adaptation
and building resilience play in the development strategy. The Lifestyle for
Environment (LiFE) initiative, designed to encourage sustainable practices and
circular economy, will play a transformative role in the development process.
The flow of international finance has remained grossly inadequate, with much
of the action being financed from domestic resources. The outcomes from the
recent CoP29 hold little promise on that account.
INTRODUCTION
10.1 India’s ambition to achieve developed nation status by 2047 is fundamentally
anchored in the vision of inclusive and sustainable development. Notably, India’s per
capita carbon emissions are one-third of the global average, even as it stands among the
world's fastest-growing economies. The country is dedicated to identifying and exploring
pathways for low-carbon development that simultaneously ensure affordable energy
security, job creation, economic growth, and environmental sustainability. However,
India's aspiration for low-carbon economic growth presents significant trade-offs.
While the nation has made remarkable progress in building renewable energy capacity,
effectively harnessing and scaling these resources remains challenging due to the lack
of viable storage technologies and limited access to essential minerals.
10.2 A strong adaptation strategy is a priority for the country, given its significant
vulnerability to climate change, stemming from its geographic and agro-climatic
diversity.
1
India’s Initial Adaptation Communication, submitted to the United Nations
1 Khanna, P. (2024, December 29). India is overlooking the climate drag on its economic growth. Financial Times.
Retrieved January 4, 2025, from https://tinyurl.com/cbkc3hjx.
Economic Survey 2024-25
272
Framework Convention on Climate Change (UNFCCC) in December 2023, reveals
that the total expenditure related to adaptation in FY22 was 5.6 per cent of the Gross
Domestic Product (GDP), an increase from 3.7 per cent in FY16. Climate action, so far,
has been financed through domestic resources, with the public sector playing a central
role. On the other hand, the international flow of funds for climate actions is highly
inadequate and has a mitigation bias (Chart 1).
10.3 Following a low-carbon development pathway and achieving the net zero carbon
emissions goal necessitates a fundamental shift in mindset and behaviour towards
mindful consumption and production. The India-led global movement, Lifestyle for
Environment (LiFE), aims to enhance the country’s sustainability efforts. The LiFE
initiatives are being executed in India in mission mode through various regulatory
measures and policies that encourage environmentally friendly practices such as waste
management, resource conservation, and recycling. Promoting a circular economy is
also envisioned as a central component under the Mission LiFE.
10.4 The recent outcome of the New Collective Quantified Goal at CoP29 (29th session
of the annual climate conference under the UNFCCC) held in Baku in November 2024
on finance presents little optimism about the possibility of support to developing
countries. With the developed countries also falling short of their Nationally
Determined Contributions (NDCs) by about 38 per cent,
2
their actions do not reflect
the historical responsibility or the leadership in meeting their obligations. The lack of
commitment and insufficient delivery of the means of implementation,
3
as mandated in
the Paris Agreement, will make the low-carbon transition in developing countries more
challenging.
Chart X.1: International flow of finance in 2021-22 (in USD billion)
30.4
19.6
1.1
16.4
10.5
0.6
0
5
10
15
20
25
30
35
MDB Climate Finance Bilateral Climate Finance Multilateral Climate Fund
Mitigation
Adaptation
Source: Based on the Sixth Biennial Assessment and Overview of Climate Finance Flows by the Standing
Committee of Finance, UNFCCC. The flow of finance to cross-cutting actions has not been included here. The
report can be accessed at https://tinyurl.com/52md2zht.
2 CEEW (October 26, 2023). Trust and Transparency in Climate Action. Retrieved December 23, 2024, from
https://www.ceew.in/publications/trust-and-transparency-climate-action-research.
3 Finance, Technology and Capacity Building are regarded as the means of implementation.
Climate and Environment
273
10.5 The 29th session of the Conference of the Parties to the United Nations Framework
Convention on Climate Change (COP 29) and the 6th Session of the Conference of the
Parties serving as the meeting of the Parties to the Paris Agreement (CMA 6), held in
Baku, Azerbaijan, were designated as the 'Finance COP'. The focus was to establish the
New Collective Quantified Goal (NCQG) on climate finance.
4
The meetings of COP29
and CMA6 presented a significant opportunity to serve as a benchmark for international
climate cooperation and multilateralism, with the potential to influence the efficacy of
climate policies on a global scale and strengthen collaborative efforts by enhancing the
financial commitments to support climate action in developing countries.
10.6 Establishing a small mobilisation target of USD 300 billion annually by 2035 is a
fraction of the estimated requirement of USD 5.1 - 6.8 trillion by 2030.
5
It is out of sync
with the needs of the critical decade when action is required to keep the temperature
goals of the Paris Agreement within reach.
6
The decision demonstrates a significant
misalignment with the Paris Agreement’s mandate to demonstrate a ‘progression beyond
previous efforts’ by developed countries. It underscores the unwillingness of affluent
developed nations to assume their equitable share of the responsibility to address emission
reduction and mitigate climate change impacts on vulnerable populations in developing
regions. The goal contravenes equity and the principle of common but differentiated
responsibility in the global climate response by disproportionately placing the burdens
of climate change on those nations that have not historically contributed to the crisis.
10.7 COP 30 in 2025 is the COP for Climate Action, before which the parties to the Paris
Agreement are to submit their next version of Nationally Determined Contributions.
The funding shortfall may lead to a reworking of the climate targets. Considering
that domestic resources will be the key to action, resources for meeting development
challenges may be affected, undermining progress toward sustainable development
objectives and compromising the integrity of international climate partnerships.
10.8 This chapter is structured into three broad parts. It starts with discussing the
importance of adaptation for India and the measures taken, focuses on energy transition
and the lessons learnt from the experience of the developed countries and weighs
options for India. It ends with an overview of the Lifestyle for Environment (LiFE)
initiative and measures encouraging sustainable practices and circular economy.
4 Conference of the Parties serving as the meeting of the Parties to the Paris Agreement. (2024). New collective
quantified goal on climate finance. In Decision -/CMA.6. Retrieved December 11, 2024, from https://tinyurl.
com/45x593ce.
5 UNFCCC Standing Committee on Finance. (2024). Second report on the determination of the needs of developing
country Parties related to implementing the Convention and the Paris Agreement. In UNFCCC. Retrieved
December 23, 2024, from https://unfccc.int/sites/default/files/resource/UNFCCC_NDR2_ES_Web_Final.pdf.
6 United Nations. (2024). Outcome of the first global stocktake Decision 1/CMA.5 in the Report of the Conference of
the Parties serving as the meeting of the Parties to the Paris Agreement on its fifth session. In Addendum (FCCC/
PA/CMA/2023/16/Add.1). UNFCCC. Retrieved December 23, 2024, from https://unfccc.int/sites/default/files/
resource/cma2023_16a01E.pdf.
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BRINGING ADAPTATION TO THE FOREFRONT
10.9 India is the seventh most vulnerable country to climate change.
7
It suffers from
weather extremes and hazards, slow onset events such as sea-level rise, biodiversity
loss, and water insecurity. While greenhouse gas (GHG) emissions are a global bad and
the benefits of mitigation are diffused, vulnerable developing countries such as India
have to bear a disproportionate burden of climate change and have no choice but to face
the climate change consequence of historical emissions. The emissions remain with us.
They impose huge costs on already resource-constrained countries. Hence, vulnerable
developing countries such as India need to undertake climate adaptation on an urgent
footing as this has a direct impact on lives, livelihoods and the economy.
10.10 The Ministry of Environment, Forest and Climate Change (MoEFCC) has
initiated the process of developing the National Adaptation Plan (NAP). The NAP is a
vital strategic document articulating India’s adaptation priorities. The process aims to
develop a comprehensive and inclusive NAP that aligns with sustainable development
goals and ensures climate resilience for all regions and sectors. This is in addition to
the Initial Adaptation Communication submitted to the UNFCCC on 9 December 2023,
highlighting the country's adaptation priorities, strategies, policies, and programmes
along with implementation support needs for adaptation action.
10.11 Implementing effective adaptation strategies will necessitate a multi-faceted
approach that includes policy initiatives, sector-specific strategies, development of
resilient infrastructure, research and development, and securing financial resources
for adaptation efforts. Furthermore, these adaptation measures should be tailored to
regional specificities, given India's significant diversity of geographic and agro-climatic
conditions. The following subsections discuss the initiatives to build resilience across
sectors.
Adaptation in agriculture
10.12 Heat and water stress can negatively impact yields, posing challenges for India’s
food security. Adaptation strategies in agriculture have included enhanced focus on
research and development of climate-resilient seeds, measures to preserve and enhance
groundwater resources, improve soil health, and modify cropping practices, among
other measures. The chapter on Agriculture and Food Management discusses measures
to improve adaptation in agriculture in detail.
Building resilience in urban areas
10.13 With increasing urbanisation and climate change impacts, comprehensive
adaptation action to address heat stress, urban flooding, and depleting groundwater in
7 Global Climate Risk Index. (2021). The 10 most affected countries in 2019. Table 1. Page 8. Retrieved December
27, 2024, from https://www.germanwatch.org/en/19777.
Climate and Environment
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cities has been gaining focus. The National Mission on Sustainable Habitat (NMSH),
launched in 2010, one of the nine missions under the National Action Plan on Climate
Change (NAPCC), seeks to promote low-carbon urban development and bolster
resilience against climate change impacts through five key thematic areas: waste
management, water management, energy and green building, mobility and air quality,
and urban planning, green cover, and biodiversity. In 2015, sustainable development
and climate actions became integral to urban investments through various missions
and programs. The Ministry of Housing and Urban Affairs (MoHUA) has introduced
a unique assessment framework for cities to evaluate climate-relevant parameters,
helping them adopt and share best practices. This framework aligns with international
standards for green, sustainable, and disaster-resilient urban habitats, enabling Indian
cities to promote sustainable urban development.
8
10.14 The Atal Mission for Rejuvenation and Urban Transformation (AMRUT) is
benefiting citizens by improving water supply systems, augmenting localised water
resources through the revitalisation of water bodies, enhancing groundwater recharge,
increasing permeable green spaces, promoting the recycling and reuse of wastewater,
and implementing energy efficiency reforms, thus, promoting key thematic areas
under the NMSH. As of December 2024, 785 stormwater drainage projects have been
completed, eliminating 3,631 waterlogging points and constructing 1,380 kilometres
of drains to mitigate the effects of urban flooding. Work is currently underway to
address an additional 285 waterlogging points. Additionally, 2,438 parks have been
developed, contributing 5,070 acres of green space. Over 320 green mobility projects
have been completed to encourage environmentally friendly modes of transport and
infrastructure, creating 493 kilometres of walkways and cycle tracks.
10.15 AMRUT 2.0
9
aims to enhance ease of living by creating water-secure cities through
water conservation, augmentation and rejuvenation. As of December 2024, 3,078 water
body rejuvenation projects have been approved with the planned rejuvenation of 475
square kilometres area with 4.65 crore million litres per day (MLD) capacity, of which
nine water rejuvenation projects have been completed. These projects are focused
on sewer diversion/ treatment before discharge into water bodies, sustainability and
emphasis on nature-based solutions. AMRUT 2.0 also focuses on the reuse of water and
greywater management. As of December 2024, 1,437 MLD capacity has been developed
for recycling/reuse.
8 Ministry of Housing and Urban Affairs. (2021). National Mission on Sustainable Habitat 2021-2030. Retrieved
December 17, 2024, from https://tinyurl.com/bdd584zk.
9 Ministry of Housing and Urban Affairs. (2021). Atal Mission for Rejuvenation and Urban Transformation 2.0.
Retrieved December 17, 2024, from https://tinyurl.com/24kkjvxn.
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