Lok Sabha Question No. 828 (UNSTARRED), answered on 2022-02-07
Subject: Climate Finance
Ministry: FINANCE
Asked by: Rajiv Pratap Rudy

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 828

TO BE ANSWERED ON 07.02.2022

## CLIMATE FINANCE

## 828.  SHRI RAJIV PRATAP RUDY:

Will the Minister of FINANCE be pleased to state:

- (a)  whether  the  Government  has  estimated  the  climate  financing  needed  for  achieving pledges at COP26 and if so, the details thereof along with the timeline in this regard; (b) whether there are regulatory concerns or barriers in attracting domestic and international finance and if so, the details thereof; (c)  the  steps  taken/proposed  to  be  taken  by  the  Government  to  mobilise  the  requisite finances  for  mitigation  and  adaptation  along  with  the  achievements,  amount  mobilised, projects sanctioned, expenditure and the impact thereof, State/UT-wise and year-wise; (d) whether India has been successful in the green bond market and if so, the details thereof with worldwide ranking, bonds issued, participating institutions, projects sanctioned and their impact during the last four years, year-wise; (e) whether the Government has been using/proposes to use other instruments for attracting green finances; and (f)  if  so,  the  details  thereof  along  with  the  instrument's  global  competitiveness,  amount
- realised, projects sanctioned, expenditure and the impact thereof during the last four years?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

- (a) India's statement at COP 26 had noted that substantial scaling up of climate action would require  greater  resources  and  low  cost  climate  technologies from  the developed  countries. India's  Nationally  Determined  Contribution  (NDC),  submitted  under the  Paris  Agreement in 2015, provides a preliminary estimate that at least USD 2.5 trillion (at 2014-15 prices) would be required for meeting India's climate actions from 2015 to 2030.
- (b)  There  are  no  regulatory  concerns  or  barriers  as  such  in  attracting  domestic  and international finance.
- (c)  India's  climate  actions have so far been largely financed from domestic resources. The Government is implementing the National Action Plan on Climate Change (NAPCC), which is the  overarching  policy  framework  and  comprises  of  national  missions  in  specific  areas  of solar energy, enhanced  energy  efficiency, water, agriculture, Himalayan  eco-system, sustainable  habitat,  green  India  and  strategic  knowledge  on  climate  change.    Further,  33 States/Union Territories have prepared State Action Plans on Climate Change (SAPCCs)

consistent with the objectives of NAPCC.  In addition, the Government has launched many schemes  and  programs  to  scale  up  India's  action  on  both,  the  adaptation  and  mitigation. Appropriate  measures  are  being  taken  under  these  schemes  and  programs  across  many sectors including water, agriculture, forest, energy, sustainable mobility and housing, waste management,  etc. The government has also constituted an Apex Committee for Implementation of Paris Agreement to generate a coordinated response on climate change matters  that  ensures  India  is  on  track  towards  meeting  its  obligations  under  the  Paris Agreement including its NDC.

India's third Biennial Update Reports (BUR) submitted to the UNFCCC in 2021 reports that during  2005-2016,  the  country  had  reduced  emission  intensity  of  its  GDP  by  24  per  cent. According to the India State of Forest Report 2021 released in January 2022, the total carbon stock in the country's forests is estimated to be 7,204 million tonnes, and the carbon stock in forest  has  increased  by  79.4  million  tonnes  as  compared  to  the  last  assessment  of  2019. According to the Central Electricity Authority, as on 31 st December 2021, the share of nonfossil sources in installed capacity of electricity generation was 40.2 per cent.

Further  the  Government  of  India  through  Ministry  of  Environment,  Forest  and  Climate Change  is  implementing  the  two  central  sector  schemes;  namely  the  National  Adaptation Fund on Climate Change (NAFCC) and Climate Change Action Program (CCAP).  Under the NAFCC, 30 projects with a total allocation of Rs. 847.5 crores were sanctioned during 201519. The details of funds released under NAFCC are placed at Annexure I & II .

(d)  to  (f)  India  has  seen  an  increasing  number  of  issuances  in  the  overseas  green  bond market. India is currently ranked 2nd (after China) among the emerging market economies in Green  Bonds  issuance.  Till  date,  there  have  been  11  issuances  of  green  debt  securities, under SEBI guidelines, by private and public sector entrities in India amounting to Rs. 3,099 crore.

The Union Budget 2022-23 has emphasized sovereign green bonds and thematic funds for blended finance in areas including climate action.

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Annexure I

## ANNEXURE REFERRED TO REPLY IN PART (c) OF LOK SABHA UNSTARRED QUESTION NO 828 DUE FOR 07.02.2022 REGARDING 'CLIMATE FINANCE' RAISED BY SHRI RAJIV PRATAP RUDY

Table: Grants released under NAFCC (Rs. crore)

| Financial Year               |   Grants released under NAFCC (Rs. in Crore) |
|------------------------------|----------------------------------------------|
| 2017-18                      |                                       115.36 |
| 2018-19                      |                                       109.5  |
| 2019-20                      |                                        33.52 |
| 2020-21                      |                                        42.94 |
| 2021-22 (Till December 2021) |                                        27.76 |

## ANNEXURE REFERRED TO REPLY IN PART (c) OF LOK SABHA UNSTARRED QUESTION NO 828 DUE FOR 07.02.2022 REGARDING 'CLIMATE FINANCE' RAISED BY SHRI RAJIV PRATAP RUDY

## Table: The State-wise details of funds released under NAFCC

| Financial Year   | For implementation of projects in the States/UTs   |   Funds Released (in Rs. Crore) |
|------------------|----------------------------------------------------|---------------------------------|
| 2017-18          | Rajasthan                                          |                            12.5 |
| 2017-18          | Bihar                                              |                            11.5 |
| 2017-18          | Nagaland                                           |                            12.3 |
| 2017-18          | Uttar Pradesh                                      |                             6.3 |
| 2017-18          | Jharkhand                                          |                            12.4 |
| 2017-18          | Punjab, Haryana, Rajasthan & Uttar Pradesh*        |                            60.3 |
| 2017-18          | Total                                              |                           115.4 |
| 2018-19          | Tamil Nadu                                         |                            21.9 |
| 2018-19          | Rajasthan                                          |                            10   |
| 2018-19          | Kerala                                             |                             5   |
| 2018-19          | Mizoram                                            |                             3   |
| 2018-19          | Manipur                                            |                             3   |
| 2018-19          | Himachal Pradesh                                   |                             5   |
| 2018-19          | Sikkim                                             |                             6.2 |
| 2018-19          | Arunachal Pradesh                                  |                            12   |
| 2018-19          | Puducherry                                         |                             9.3 |
| 2018-19          | Telangana, Maharashtra & Rajasthan**               |                            34.1 |
| 2018-19          | Total                                              |                           109.5 |
| 2019-20          | Meghalaya                                          |                             5   |
| 2019-20          | Gujarat                                            |                            12.6 |
| 2019-20          | Manipur                                            |                             2   |
| 2019-20          | Sikkim                                             |                             2.5 |
| 2019-20          | Mizoram                                            |                             2.2 |
| 2019-20          | Tamil Nadu                                         |                             2.4 |
| 2019-20          | Uttar Pradesh                                      |                             2.2 |
| 2019-20          | Himachal Pradesh                                   |                             4.7 |
| 2019-20          | Total                                              |                            33.5 |
|                  | Uttar Pradesh                                      |                             5.2 |
| 2020-21          | Meghalaya                                          |                             6.5 |
|                  | Sikkim                                             |                             6   |
|                  | West Bengal                                        |                             8.6 |
|                  | Kerala                                             |                             3   |
|                  | Telangana                                          |                            10.7 |
|                  | Chhattisgarh                                       |                             3   |
|                  | Total                                              |                            42.9 |
|                  | Uttar Pradesh                                      |                             6   |
| 2021-22          | Jharkhand                                          |                             6.2 |
| 2021-22          | Nagaland                                           |                            11   |
| 2021-22          | Kerala                                             |                             4.5 |
| 2021-22          | Total                                              |                            27.8 |