Climate Change in
Development Planning:
Mechanisms for Mainstreaming
Introduction
C limate change
is now one of the greatest threats to economic development. Recognising
this, the Government of India has developed the National Action Plan on
Climate Change (NAPCC) and has identified 8 missions to address the
enormous challenges of mitigation and adaptation to climate change. At
the sub-national level, about 22 states have developed their State
Action Plan on Climate Change (SAPCC) on the guidance of the national
plan using different processes for the same. The MoEF & CC has approved
action plans of 14 states as of February 2014. The Financial Needs
Assessed by NAPCC through its 8 missions is estimated at Rs. 2300 +
billion and the same estimated by 14 states under SAPCC is Rs 2009
billion. This seems an unrealistic wish list and how it is to be met is
still unclear.
At the global level, as a significant step to promote
low emission, climate resilient and gender sensitive development
pathway, the Green Climate Fund (GCF) was launched in the 17 th
Conference of Parties (COP) of United Nation Framework Convention on
Climate Change (UNFCCC) in 2011 at Cancun, Mexico. The GCF is expected
to be operational by early 2015. NABARD has been identified as the
National Implementing Entity for the Adaptation Fund in India set-up
post the 7th
COP of UNFCCC held at Marrakesh, Morocco in 2001. The Adaptation Fund
was set up to assist developing countries that are particularly
vulnerable to the adverse effects of climate change to meet the cost of
adaptation. These are mainly for CSO (civil society organisation) led
community based projects for adaptation. The Government of India has
also announced Rs. 100 crore as Adaptation Fund. However, the
multi-stakeholder mechanism for access and utilisation of funds from GCF
and Adaptation Fund of the Government of India is still to be drawn
upon. The Government of India has also set by the National Clean Energy
Fund (NCEF) from the coal cess levied to fund research and innovative
projects in clean energy technologies. Rs. 500 crore, 1% of the same has
been allocated to the Ministry of New and Renewable Energy. The Ministry
has spent only Rs 1.6 crore on clean energy projects over the past three
years.
Policy formulation for Climate Finance in India is
primarily being looked at by the Ministry of Environment and Forest and
Climate Change (MoEF & CC) with support from the Ministry of Finance and
Ministry of External Affairs playing a role in the negotiation process
at UNFCCC. The Ministry of Finance has also set-up a Climate Change
Financing Unit. However, the process for availability and disbursal of
funds is still unclear.
The plans have been developed finances are available
however effective utilisation of the same is still a question. The
question is how this pool of financial resources available should be
looked at in a comprehensive manner to have desired results?
Challenges for Mainstreaming Climate Change in
Development Planning
Given the quantum of financial requirement under
NAPCC and SAPCC and diverse routes for fund flows, mainstreaming climate
change into development plans and policies is very important for
effective climate resilient development. However, integration of climate
change into development planning is a multi-dimensional and multi-level
process. Mainstreaming climate change in development planning is not
bereft of problems in operationalisation as the impacts of climate
change are complex and require coordination across multiple sectors and
departments (horizontal integration) and multi-levels viz.
state-district-local levels (vertical integration).

Currently, planning is being done in departmental
silos considering the resource (especially financial resource)
availability through centrally sponsored programmes with little
connection to vulnerabilities, climatic variabilities and integration of
climate funds available. The state plans are an integration of the state
line department plans tailored to the resource basket available
remaining a top-down exercise. Post 73 rd
and 74th
Constitutional Amendment, decentralised planning is now being looked at
with primary planning being done at the village level. However, at the
Gram Panchayat and community level, the understanding of climate change,
adaptation and mitigation mechanism is limited. Hence, it is left to the
District Commissioner/Magistrate to tie the plans based on the resource
availability.
Climate change is cross cutting and requires cross
sectoral integration. However, the state plans are developed in
departmental silos and are sometimes contradictory in nature for eg.
emphasis on watershed development for addressing the water stress
conditions and at the same time subsidy on irrigation pump sets. Such
contradictions can be avoided if integration is promoted and capacity of
various stakeholders enhanced to look at climate resilient development
pathways.
Considering these challenges, the recommendation
strategies have to be more robust with vertical and horizontal
integration and capacity enhancement of key actors on climate change
integration.
Recommendations for Mainstreaming Climate Change in
Development Planning
The development plans are made for five years and
climate perspective planning requires a long term vision (20 year) which
can then be further split to mid-term (five year) and short term
(annual) plans. Climate change impacts differ in ecological zones hence,
the plans should be developed considering these differences and not be
completely top driven. A combination of top-down and bottom up
strategies are required for effective integration of climate thinking in
development planning. This will require:
• Horizontal Integration:
Inter-departmental linkages for climate change need to be understood due
to climate impacts facilitating development of robust and convergent
climate resilient development plans and integration of finances. To
ensure effective utilisation of funds, monitoring and evaluation
mechanisms need to be put in place with climate indicators incorporated
in the same.
• Vertical Integration
and Capacity Enhancement: Capacity of all stakeholders at different
levels and especially PRIs and ULBs enhanced for development of locally
relevant climate resilient plans addressing both adaptation and
mitigation needs. Fiscal devolution is critical to empower PRIs. Hence,
the plans need to look at efficient delivery mechanisms at all levels
for access and utilisation of funds.
• There is a great scope
of climatising the centrally sponsored programmes like Integrated
Watershed Management Programme (IWMP), Mahatma Gandhi National Rural
Employment Gurantee Programme (MGNREGA), Hill Area Development Programme
(HADP) etc. How can climate change be integrated in such programmes?
• The GCF and other
Climate Financing mechanisms will require looking at a comprehensive
multi stakeholder process to determine national priorities for climate
finance. It will require setting up institutional systems for effective
integration of climate concerns in development planning and
implementation processes.
• To look at a model of
two funding windows viz. on budget window for integration of climate
concerns in various departments and the off budget window providing for
CSO led innovative/facilitative initiatives for mainstreaming.
q
Gazala Shaikh
ggshaikh@devalt.org
Refrence
1
http://www.moef.nic.in/downloads/home/Pg01-52.pdf
2
http://articles.economictimes.indiatimes.com/2014-06-13/news/50564444_1_the-ncef-national-clean-energy-fund-rs-500-crore
3 Srinivas Krishnaswamy, A Handbook of Climate Finance in India, Vasudha
Foundation and Heinrich Boll Stiftung
http://us.boell.org/sites/default/files/climate_change_handbook_-_08-10-2014.pdf
4
http://articles.economictimes.indiatimes.com/2014-06-13/news/50564444_1_the-ncef-national-clean-energy-fund-rs-500-crore
5 Bisht H & Shaikh GG, 2012, Mainstreaming Climate Change Adaptation in
Policy and Planning, New Delhi, Development Alternatives
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