India's Climate Finance Resource Assessment Exercise : Rio Markers and other Tracking Tools, Mr. Appukuttan Nair Damodaran, Indian Institute of Management Bangalore, India
Trilateral Cooperation Experiences and Challenges - Seminar Brasilia 2017
3.2 WORKSHOP ON PARTNER COUNTRY PERSPECTIVES FOR TRACKING DOMESTIC AND INTERNATIONAL CLIMATE- AND BIODIVERSITY-RELATED FINANCE
1. PERSPECTIVES
FOR IMPROVING THE OECD DAC CLIMATE-
AND BIODIVERSITY-RELATED DEVELOPMENT
FINANCE STATISTICS
Prof A.Damodaran
Indian Institute of
Management Bangalore
Views expressed here are made
strictly in personal capacity
2. STATUS OF USE OF DAC AND RIO
MARKERS
1. Developing Countries look forward to precise stats on
projects/programs where ODA (non grant flows – or grant equivalent )
are combined with MDB and other non MDB flows (like EXIM Bank loans)
towards projects and programs
2. There is need for Information tools that hybridize ODA loans. MDB loans,
TA Investments with private sector counterpart guarantees including risk
guarantees
3. India has a quazi Rio Marker system employed for Biodiversity that has
features of Rio Markers 1,2 and 3 ( core, non core and peripheral ). But
these relate to domestic budgets
4. The larger task is to have a similar system for external resource flows
which can be done through the modernized DAC system
5. It will be important to work on co-efficients for Rio Marker 3 so that the
degree of mainstreaming will be evident in development assistance
3. WAY FORWARD
1. ‘Harmonization of Methodology’ workshops particularly on Rio
Markers with BD budgeting systems
2. Awareness building at the Federal and State Levels
3. Results of Pilot exercises to be disseminated
4. KEY QUESTIONS
What definitions are being used in-country to track climate change
mitigation, adaptation and biodiversity activities?
How are climate- and/or biodiversity-related activities identified in
national, sub-national and sectoral budgets? What methodologies
and approaches are used?
What are the challenges experienced in tracking climate- and
biodiversity-related finance?
5.
6. UNDERLYING PRINCIPLES OF RESOURCE REQUIREMENT
ASSESSMENT IN ENVIRONMENT SECTOR : INDIA
History of ‘aggregation based need assessment based on sectoral approaches
Line Departments at the village and block/range /divisional levels prepare need
assessments, which are aggregated at the Provincial levels and projected to
Planning Authorities at the National level
National level allocations tailor allocation of resources to availability of resources
and possibility of achieving success in execution – ie capabilities as evident by
physical progress achieved in the previous plan (the latter can be enhanced by
GEF and other externally aided projects)
In the case of development programs, there is evidence of local self government
based plans which is aggregated upwards
Either way there is an effort to co-relate needs as defined in physical terms with
needs as defined in financial terms and also develop benchmarks of financial
requirements per unit of ecosystem conserved (say ideal costs/ha for land
treatment under Integrated watershed management Projects or on afforestation
in per hectare terms)
7. ASSESSMENT
METHODOLOGY:BIODIVERSITY
Is a constrained assessment model depending on availability of financial
resources
We look at likely availability of resources and work on fulfillment of needs
within these resource constraints
We took core funding and non core funding
We assume that non core funding require structural adjustments to tune it to
Aichi targets which we related to global environmental benefits.
This we assume to be the role of GEF and externally aided funds (TA,
capacity building and technology leveraging)
We divided Aichi targets into enabling ones, policy reform requiring and
programmatic ones and postulated a flat 20% of total budget for the first
type
8. HOW ARE CLIMATE- AND/OR BIODIVERSITY-RELATED ACTIVITIES IDENTIFIED IN NATIONAL,
SUB-NATIONAL AND SECTORAL BUDGETS?
Not Specifically identified or marked in National, Sub-National
Budgets /Sectoral Budgets
However marked in terms of Core, non core and net peripheral items
in the context of the National Biodiversity Strategy and Action Plan
9. METHODOLOGY
Core : Aggregation of Direct Conservation based budgets of Ministry
of Environment , Forests and Climate Change and Department of
Forests, Ecology ,Forests and Wildlife of Government of States (Track
1 Rio Marker)
Non Core : Budgets that are devoted to non conservation based
Environmental Protection Activities like pollution abatement and
hazardous substances management that incidentally aid biodiversity
conservation ( modified version of Track 2 Rio Marker)
Peripheral: Development Projects that have environmental protection
aims as well ( as in Track 3 of Rio Marker)
10. Source: http://indiabudget.nic.in
Ministry of Environment
& Forests:
Rs. 2635.52 Crores
(09.52 %)
Ministries Relevant to
Biodiversity:
Rs. 25037.43 Crores
(90.48 %)
Leverageable Proportion
Share of Core and Peripheral Annual Funding on
Biodiversity Conservation (2010-11) Source : MoEF and CC
(2014)
Ministry of Environment & Forests
(Core)
Schemes of other Ministries
relevant to Biodiversity
Conservation : Non- Leverageable
Schemes of other Ministries
relevant to Biodiversity
Conservation : Leverageable
11. Source: http://indiabudget.nic.in
0.65
99.35
Share of Outlay on Biodiversity Relevant Schemes
in the Aggregate Budget of Government of India
during the year 2010-11 ; Source : MoEF and CC
2014
MoEF &
Ministries
Relevant to
Biodiversity
(Rs.
26312.95
Crores)
12. Source: Annual Report of Ministries Concerned for 2010-11
13.59
2.57 0.31
9.49
4.12
56.32
0.72
Percentage of Total Budget Spent by Various Ministries of
Government of India (other than MoEF) on Biodiversity
Relevant Schemes during the year 2010-11: Source: MoEF and
CC 2014 Ministry of Rural Development
Ministry of Urban Development
Ministry of Earth Sciences
Department of Agriculture
Department of Animal Husbandry
Indian Council of Agricultural Research
(ICAR)
Department of Ayurveda Yoga,
naturopathy, Unani, Siddha and
Homeopathy (AYUSH)
13. 38.75
61.25
Relative Shares of Central and State Governments
in Core Annual Funding on Biodiversity
Conservation during the year 2010-11 (in %)
(Source:MoEF and CC 2014)
Government of India (Rs. 2429 Crores) Average Spending by States (Rs. 3840 Crores)
Source: Annual Report of Ministry of Environment and Forests
14. INDIA: RELATIVE ALLOCATION
PROFILE (SOURCE: MINISTRY OF ENVIRONMENT,
FORESTS AND CLIMATE CHANGE,2014:INDIA'S FIFTH
NATIONAL REPORT TO THE CBD)
15. Core funding by States in 2013-14 INR 5025 crores
12th Finance Commission (2005-2009) INR 1000 crores
13th Finance Commission(2010-2014) INR 5000 crores
India: Biodiversity Conservation Funding by States (Source: Ministry of
Environment, Forests and Climate Change,2014:India's Fifth National Report
to the CBD)
16. CHALLENGES : MULTIPLIERS
USED TO ESTABLISH CONTRIBUTION
OF PERIPHERAL FUNDING
India: Multipliers Used (Source: Ministry of
Environment, Forests and Climate
Change,2014:India's Fifth National Report to the
CBD)
17. OTHER CHALLENGES
Demand Side Resource Assessment
Secondary Demand for Services
Unit cost assessment Variations
Local Level Resource Assessment
Decomposing Co Benefits
18. CLIMATE CHANGE: CURRENT
APPROACH
Global Assessment – National Assessment –National Implementation
National Assessment is Impact Assessment not resource flow
assessment
National Implementation –Project Finance for Mitigation/Adaptation:
Policy Instruments – Emission Trading Standards – Insurance
20. POSSIBLE APPROACHES TO CLIMATE
CHANGE RESOURCE ASSESSMENT
Move to Program Based Approaches from Project Based Approaches
Sectoral Aggregation after decomposing co-benefits
Multiplier/Co-efficient to tap secondary impacts of Adaptation and
Mitigation
21. SECTORS: CLIMATE CHANGE
Environment and Forests
Wasteland Development Board
National Afforestation and Eco development Board
Agriculture
Energy
Livestock
Industry
Water Resources
Urban Development
Rural Development
Health
New and Renewable Sources of Energy
Transport