1. Climate Change Innovation Programme
Financing India’s State Action Plans for Climate Change: Experience from the
Climate Change Innovation Programme
Dr. Aditya V. Bahadur FRGS, Regional Programme Development Manager, ACT/CCIP

2. Today we will cover- • Quick overview of CCIP
Today we will cover-
• Quick overview of CCIP
Short background on SAPCCs
SAPCC Financing Frameworks-
Estimate L &D
Assesing Effectiveness of Planned Actions
Quantifying Current Efforts and Identifying Resources & Gaps
Finding Finance
Cross cutting insights, lessons and learnings
Caveat- Manager, not a technical expert on climate finance + paper

3. Climate Change Innovations Programme
Climate Change Innovations Programme
5 year UK-India programme on CC planning
Working in Assam, Bihar, Chhattisgarh, Kerala, Maharashtra, Odisha
Supporting states to improve management of climate finance
Applying for climate funds
Prioritised and realistic financing plans for SAPCC actions
Identification of opportunities in the budget
Sectoral and programme studies, especially in the agriculture/water sectors
Knowledge management, planning systems

4. State Action Plans on Climate Change
State Action Plans on Climate Change
First State CC strategies/action plans
Provide learning and awareness of importance of CC
Vulnerability assessments
50 to 150 actions in 10 clusters
Some work on costing
Refinement
Improve engagement in line departments
Review the evidence on vulnerability (previously nat & reg studies being employed)
Fill gaps and strengthen justification for actions
Revise preliminary work on costing, including balance/phasing of expenditure
Bringing in line with medium term expenditure framework
Plan coordinated management of finances
Before ACT states were working with national and regional evidence + ACT brought sectoral understanding.
MTEF- total fiscal envelope

5. SAPCC Financing Frameworks: Estimating L&D
SAPCC Financing Frameworks:
Estimating L&D
Estimating the economic impact of climate change on Gross Domestic Product (GDP)
Based on: Exposure to CC & Sensitivity of sectors; many different methodologies climate change to reduce economic growth rate by between 1.4% and 4.3%per year of GDP by 2050 in the States reviewed
Many methodologies for estimating L&D exist but three main categories-
Use of broad assumptions, proxies and pre-existing measures of sensitivity
GIS, risk and hazard probability models & statistical downscaling models
Combined economic and biophysical and models

6. SAPCC Financing Frameworks: Assessing Effectiveness of Planned Actions
SAPCC Financing Frameworks:
Assessing Effectiveness of Planned Actions
International Default Values for AD%
Assessing effectiveness of adaptation actions-
Cost Benefit Analysis
Cost Effective Analysis
Multi Criterion Analysis
Risk Based Approaches
Two main approaches-
Benefits based approach
Objectives based approach
CCIP uses the former
Change this slide so that we are not starting ‘prioritizing actions within SAPCC’. We look at more than only the plan to look at the budget also.
CCIP CC relevance score derived from the benefits based approach. Total benefits reviewed and then see
What would happen if the project happened in CC and what not

7. SAPCC Financing Frameworks: Identifying current spending
SAPCC Financing Frameworks:
Identifying current spending
Reviewing past trends in climate expenditure
Total adaptation expenditure can be estimated through an analysis of State expenditure, including both development and recurrent, usually at the level of schemes
Selecting items that have some CC relevance and then weighting options for CC% percentage using a similar approach as the one identified on previous slide
Undertake budget review+ identify line items related to climate change+ then weight it by CC

8. SAPCC Financing Frameworks: Identifying future spending
SAPCC Financing Frameworks:
Identifying future spending
Five Year Financing Scenarios
CCIP helping to identify low and high financing scenarios.
Low: public expenditure/allocation remains constant+ some international climate finance
High: public expenditure increases/ reallocation+ international climate finance disbursed more quickly
Scenarios include medium term expenditure framework, international development funds; climate funds (national and international); and the private sector.
High scenario

9. SAPCC Financing Frameworks: Identifying the resource gap
SAPCC Financing Frameworks:
Identifying the resource gap
Resource gap for adaptation= difference between the adaptation needs and the adaptation supply.
Example from Kerala-
GDP of Kerala likely to grow 5X without CC but only 3X with CC
Combined impact of existing and planned initiatives will likely stop about 13% of the loss and damage, adaptation gap = 87%

10. SAPCC Financing Frameworks: Finding finance for implementation
SAPCC Financing Frameworks:
Finding finance for implementation
Domestic Budget Support
Majority of climate finance in India comes from budgetary sources
Private & Blended Funded
Business continuity
Business opportunity
Business as stakeholder
International Climate Funds
Usually when there is a high degree of CC
GEF, AF, ICF
National Climate Funds
NAF= 300 Crores

11. SAPCC Financing Frameworks: Final thoughts
SAPCC Financing Frameworks:
Final thoughts
New financing instruments need to be introduced
Standard guidelines needed
Significant training and capacity building is required
Moving towards a common approach
Approach helps: i) national monitoring of CC actions; ii) MRV for NDCs; iii) mobilise private sector capital and capacities.