India will spend an estimated 85.6 lakh crore rupees ($1.05 trillion) by 2030 to adapt its various industries to be compliant with climate change norms. These figures are part of â€˜Report on Currency &amp; Finance 2022-23â€™ by the Reserve Bank of India's (RBI) Department of Economic and Policy Research (DEPR).



â€œIndia has embarked on a targeted and time-bound climate action plan to reduce carbon emissions and currently ranks the best amongst G-20 countries as per the Climate Change Performance Index, 2023. Indiaâ€™s green financing requirement is estimated to be at least 2.5 percent of gross domestic product (GDP) annually till 2030,â€_x009d_ the apex bank stated.



The report suggests that a sector-specific strategy for mitigating climate risks is necessary, considering the challenging policy decisions involved in balancing the short-term impact of fulfilling NDC commitments against the potential long-term output losses due to inaction. The central bank highlighted that there is a need for a balanced policy intervention with progress ensured across all policy levers for India to achieve its green transition targets by 2030 and later make the net zero goal by 2070 attainable.



India which currently holds the G20 presidency has positioned LiFE (Lifestyle for Environment) as a way forward in its fight against climate change. It intends to bring behaviour changes on a global scale through LiFE. The RBI is expected to set a disclosure framework on climate-related financial risks and guidance on climate scenario analysis and stress testing shortly.

Indiaâ€™s cost of adapting to climate change pegged at $1 trillion by 2030

As 2023 inches to a close, it would be a good time to have a relook at what the year was like when it comes to the climate crisis, key moments shaping the biggest crisis of our times and what we achieved and what needs to be done.&nbsp;



It was a year shaped by heatwaves and droughts, of floods and record-breaking temperatures, of annual climate pledges, victories and misses.&nbsp;



<h2>Heatwaves, Wildfires, Cyclones &amp; Droughts</h2>



The year 2023 was the hottest year on record everywhere from Asia to America and Europe to Africa. Intense heatwaves gripped parts of US, China and Easter Europe in July. Rising carbon emissions and climate change are key factors behind this and the anticipated return of the <a href="https://letmebreathe.in/2023/01/30/explainer-what-is-el-nino-and-how-does-it-affect-us/">El NiÃ±o weather phenomenon</a> is also playing a part. The World Meteorological Organization (WMO) has also said â€“ for the first time ever â€“ that global temperatures are more likely than not to <a href="https://www.weforum.org/agenda/2023/11/climate-2023-hottest-year-on-record/">move more than 1.5Â­Â°C above pre-industrial levels </a>in the next five years.&nbsp;



The UK, Vietnam, Poland, Spain, China, Latvia, Myanmar, Portugal, Belarus, the Netherlands, Thailand are just some of the countries where temperature records have been broken this year. Meanwhile, in May, Delhi witnessed one of the <a href="https://letmebreathe.in/2023/05/01/why-delhi-weather-is-breaking-records-this-summer/">lowest temperatures for the month</a> at 19.2 degree celsius as the temperature in the Capital state hit a low of 6.6 degree celsius in january. Canada faced the worst wildfire season with roughly <a href="https://www.ciffc.ca/">18.5 million hectares of Canadian land burned</a>.&nbsp; It surpassed the previous record of 7.6 million hectares scorched in 1989.&nbsp;



With record-breaking temperatures there was also a notable rise in the average ocean temperature. Starting in April, the oceanâ€™s temperature has been on a steady ascent that culminated in an astounding 20.9 degree celsius in July.



Tropical Cyclone Freddy crossed the Indian Ocean as the longest-lived tropical cyclone on record and stayed over more than five weeks between February and March,. It made landfall three times, causing intense rainfall, flooding and landslides in Madagascar, Mozambique and Malawi. Tropical Cyclone Mocha, in May 2023, was one of the most intense cyclones ever observed in the Bay of Bengal, reaching peak 10-minute sustained winds of 115 kilometres per hour. It triggered 1.7 million displacements across the sub-region from Sri Lanka to Myanmar and through India and Bangladesh. Storm Daniel triggered floods in Libya claiming over 11,000 lives.



Simultaneously, the Mediterranean region and parts of Asia experienced deadly storms and typhoons, while the Americas confronted unprecedented disasters, including Brazilâ€™s extreme floods and the stranding of Burning Man attendees in the US desert.



The heatwaves and floods were also followed by severe, long-running droughts, including in Central and South America, Europe and East Africa.&nbsp;



<h2>Big Climate Wins Of 2023</h2>



One of the biggest wins of the year has been the UN annual climate conference COP28 where the loss and damage fund was launched to compensate countries hit by climate disasters. Another notable achievement from the conference was when 200 countries signed the agreement on transitioning away from fossil fuels marking the â€œbeginning of the endâ€_x009d_ for fossil fuels.&nbsp;



In April, Germany shut down its last three nuclear power plants, and the share of coal-fired power generation in the third quarter of 2023 has almost halved compared to the previous year, according to Germany's Federal Statistical Office. Though the move has been controversial since climate advocates support nuclear as a clean, zero-carbon source others who fear nuclear accidents have supported the decision.Â 



Also Read: <a href="https://letmebreathe.in/2023/12/26/https-letmebreathe-in-2023-12-26-ground-zero-cop28-why-rural-design-in-climate-action-matters/">Rural Design In Climate Action</a> 



The European Union agreed on a landmark biodiversity law that requires member states to restore at least 20% of their degraded land and sea habitats by 2030. It would also enforce a deadline to restore all damaged ecosystems by 2050 with Some 80% of habitats across the continent in poor condition.



In the US, the green energy transition has received a massive boost from the Inflation Reduction Act which includes $369 billion for action to reduce greenhouse gas emissions, support clean energy and encourage electrification.&nbsp;



After decades of negotiations, countries have finally agreed to The High Seas Treaty that provides a framework for setting up marine protected areas, a crucial step to fulfil aims to protect 30% of the world's oceans by 2030.



The rate of deforestation in the Amazon rainforest dropped sharply, after Brazil's new government pledged to stop deforestation completely by 2030 and took steps including monitoring the forest for criminal activity such as illegal logging. In another milestone move, the country also upheld <a href="https://www.bbc.com/news/world-latin-america-58328604">indigenous people's rights</a> to their ancestral land in a landmark ruling.



<h2>Action-packed Global Events&nbsp;</h2>



One of the key highlights of the year was the G20 New Delhi Summit in 2023 which was convened as a significant platform where climate change was a key issue of discussion. The ratified G20 Leaders' Declaration, finalised on September 9, 2023, tackled various environmental challenges, focusing on sustainable development goals, climate finance commitments, decarbonisation imperatives, and transitioning to cleaner energy sources.&nbsp;&nbsp;



Emphasising the need to preserve ecosystems, promote a resilient ocean-based economy, combat plastic pollution, and strengthen disaster risk reduction and infrastructure resilience, the declaration underscored environmental priorities on a global scale. Despite acknowledging the commitment to tripling global renewable energy capacity by 2030, the summit encountered difficulties in reaching an agreement on fossil fuel phase-out, reflecting challenges from preceding G20 Energy Ministers' meetings.



COP28 held in Dubai drew attention to the inaugural Global Stocktake (GST), taking precedence over other environmental agendas during its two-week span. Acknowledging the necessity of a 43% reduction in global greenhouse gas emissions by 2030 to limit global warming to 1.5Â°C, GST emphasised the shortfall in meeting outlined goals from the Paris Accord.&nbsp;



It urged collective global action to triple renewable energy capacity and double energy efficiency improvements by 2030. The final COP28 deal, agreed upon after intense negotiations, mandated countries to present national adaptation plans by 2030, with 51 nations having done so already. However, contributions to the Adaptation Fund fell short of requirements, with only a fraction of needed funding pledged by some European countries during the summit, spotlighting gaps in commitments to addressing climate change impacts. By the end of COP28, the fund's coffers had swelled to <a href="https://unfccc.int/news/cop28-agreement-signals-beginning-of-the-end-of-the-fossil-fuel-era">$700 million</a>, though that was still far from what's required. According to estimates by climate experts, the fund will need between $150-400 billion annually by 2030.

Rewind 2023: The Key Climate Events That Shaped The Year

India's share of global CO2 emissions has sharply risen to 7.3%, making it the world's third-largest carbon emitter. However, the country's population share is 17.7% globally, with over 65% residing in rural areas. Notably, 85% of the poor population lives in rural India, where per capita emissions are significantly lower. This indicates that, while human activities are major contributors to emissions, rural areas are likely to bear the brunt of climate change.



Since the Paris Agreement, India has submitted its Nationally Determined Contribution (NDC) with a common and differentiated responsibility. However, there is a need to strengthen adaptation strategies, which will be challenging given India's ranking as the second-largest global user of coal in electricity generation. Hence, balancing the need for electricity in rural areas with emission reduction goals remains a complex task.



Despite India emerging as a global economic growth engine, with 60% of GDP generated in rural areas, the Energy and Agriculture, Forestry, and Other Land Use (AFOLU) sectors contribute significantly to greenhouse gas emissions. The 'National Multidimensional Poverty Index (MPI): A Progress Review 2023', published by NITI Aayog, reveals concentrated poverty in these regions, particularly in central and eastern parts, including Madhya Pradesh, Uttar Pradesh, Jharkhand, and Chhattisgarh. These areas face higher climate risks and have experienced historical deprivation of endowments, investments, and growth.



Climate change is often viewed as a highly scientific field, predominantly influenced by the Global North. Consequently, rural discussions may not fully encompass global perspectives. Rural dialogues worldwide are significantly shaped by local culture, religion, contexts, values, belief systems, and geopolitical situations. Rural communities interpret climate change either as a regional hazard or as seasonal weather shifts, with interpretations varying across different geographical locations.



Therefore, facilitating annual conferences such as COP28 or regional dialogues can not only aim to incorporate local insights into the global discourse but also seek to contextualise global discussions for diverse rural settings. For instance, holding basic COP sessions at regional or even Panchayat levels and integrating them into the democratic processes of Gram Panchayat Development Plans (GPDP) can be beneficial. Just as the COP is where Parties come together to assess and drive climate action, it needs to happen at the Panchayat Level as well. Just as the Gram Sabhas are held and GPDP are being prepared, climate action must be integrated at the level of Gram Panchayats. Important stakeholders and communities vulnerable to climate change must take part in it and ensure dialogues, assessment of the climate change in the Gram Panchayat and ensure a plan of action.



Also Read: <a href="https://letmebreathe.in/2023/12/22/https-letmebreathe-in-2023-12-22-what-is-green-finance-and-why-it-matters/" data-type="URL" data-id="https://letmebreathe.in/2023/12/22/https-letmebreathe-in-2023-12-22-what-is-green-finance-and-why-it-matters/">Explainer: Green Finance</a>



Meanwhile, the impact of climate change on the food value chain and nutrition is also influenced by production systems that vary from place to place, coupled with the nutrition choices made by the population. Women are more vulnerable to climate change, especially natural disasters and extreme weather events. Womenâ€™s access to livelihood assets, entitlements, and services is limited or curtailed. They also bear a disproportionate burden and expectation of caring for and securing food, water, energy, and other resources, leading to increased and worsened drudgery and a significant gap in the division of labour. Women are often excluded from decision-making, particularly regarding income, assets, and other resources within the household, as well as in various local decision-making forums.&nbsp;



Additionally, gender norms directly impact social rules, skills, behaviours, and activities, specifically in livelihoods, leading to further inequality and poverty that affects the health and nutrition of women. For example, in many rural areas of India, women bear the responsibility of livestock care and management, exposing them to increased risks at the human-animal-environmental interface, leading to higher mortality and malnutrition, which further affects their children. The deprivation, inequity, and the vicious cycle that women are trapped in are not only multi-dimensional but also intergenerational; it is almost genetic.



Going forward, UN conferences such as COP should focus on a myriad of adaptation options available for rural areas, including limiting risks to naturally managed ecosystems related to health, livelihoods, food, and water. Interventions should encompass economic growth, the management of local and indigenous knowledge, water efficiency, social safety nets, disaster risk management, and community-based adaptation. Achieving net-zero emissions requires changes that are more extensive than many realize, and these changes need to occur as the world is trying to recover from COVID-19 and other crises.Â 



There is an urgent need to promote gender-focused public interventions such as Nutri-Climate Linkages and One Health, where intersectionality serves as the linchpin for all climate change solutions. For example, on the supply side, measures such as phasing out coal and adopting a value chain approach to food, along with energy-efficient rural production of consumables, are necessary. On the demand side, integrating socio-economic development with the management of rural consumption habits and carbon pricing is crucial. Addressing the impact of nutrition decisions on climate change requires localised interventions in nutrition, agriculture, food technology, economics, marketing, value chains, consumption patterns, and more.



Changes are needed beyond the energy sector, with long-term strategies backed by investment commitments and measurable impact. There is a need to facilitate a dramatic scale-up of clean technologies, support the transitions of fossil fuel companies and energy-intensive activities, and bring low-cost capital to the countries and communities that need it most.



Activating rural citizens and influencing the choices they make will be crucial in terms of daily practices. Governments, too, need to activate their unique capacities by providing a strategic vision, stimuli for innovation, incentives for consumers, policy signals, public investments that catalyse action by private actors, and the creation of a supportive ecosystem for communities affected by the rapid changes of climate change. The local 'place-based identity, experiences, competence, perspectives,' formed through regional experiences of climate change, in combination with strong cohesion between government, markets, agencies for regenerative development, media, and NGOs/CSOs/CBOs, can help address climate change.







Neeraja Nitin Kudrimoti is the Associate Director and leads the Community Action Labs in Chhattisgarh at Transform Rural India, a development design practice, working for democratised and regenerative development.



Disclaimer: The thoughts expressed in this article are those of the author and do not necessarily reflect the views of the organisation.

Rural Design In Climate Action Matters

In the wake of escalating concerns surrounding environmentally detrimental practices, the spotlight is increasingly shifting towards green financeâ€”a pivotal force driving positive change. Green finance encompasses loans and investments strategically designed to foster environmentally friendly initiatives, ranging from the acquisition of sustainable goods and services to the development of eco-conscious infrastructure



In a nutshell, <a href="https://www.unep.org/regions/asia-and-pacific/regional-initiatives/supporting-resource-efficiency/green-financing">green finance </a>is an intentionally designed financial activity, be it a product or service, aimed at fostering a more favourable environmental impact. This financial approach involves loans or investments specifically geared towards supporting eco-friendly endeavours, whether it's the acquisition of environmentally-conscious goods and services or the development of sustainable infrastructure. Essentially, green finance is about channeling financial resources into initiatives that contribute positively to the environment.



<h2>Stakeholders Of Green Finance</h2>



Green bonds serve as a key avenue within the sphere of green finance. Governments, companies, or organisations issue these bonds to secure funding for projects that promote environmental well-being, including ventures in renewable energy, energy efficiency, and sustainable land use. Investors engaging in green bonds not only stand to gain a financial return but also actively participate in supporting initiatives that yield positive environmental impacts.



Under the expansive umbrella of green finance, noteworthy projects include green finance projects aimed at harnessing renewable energy sources and improving energy efficiency to reduce environmental impact. Initiatives focused on mitigating and controlling pollution to safeguard the environment too is important. Green finance practices also prioritise recycling, reusing, and reducing waste to create a circular economy. Projects promoting responsible and sustainable utilisation of natural resources and land too are important for green finance.



<h2>The Environment Well-being Goal</h2>



Nationally Determined Contributions (NDCs), energy independence by 2047, and a commitment to achieve net zero emissions by 2070. To realise these goals, it's estimated that India needs $2500 billion from 2015-2030. However, only around less than 25 percent of this target has been met. The urgency to mobilise finance exponentially to support this transition is clear and needs immediate attention. It's crucial to balance this need with an awareness of potential unintended consequences that may arise from sudden financial market reforms.



As one of the world's largest greenhouse gas emitters, India requires a substantial budget of over$10 trillion to achieve its net zero emissions target by 2070. Both the public and private sectors are actively engaged in various measures, leading to increased investment and financing opportunities. Notably, green finance plays a key role in this scenarioâ€”representing sustainable or responsible finance that effectively funds projects with environmental benefits. These projects focus on reducing greenhouse gas emissions, improving energy efficiency, and promoting the circularÂ economy.



Also Read: <a href="https://letmebreathe.in/2023/12/21/https-letmebreathe-in-2023-12-21-sky-gardens-how-green-roofs-foster-biodiversity-in-concrete-jungles/">Green Roofs In Concrete Jungle</a>



<h2>Future Of Green Finance In India</h2>



To support sustainable development and meet the growing demand for eco-friendly initiatives, the Reserve Bank of India has issued guidelines for banks and non-bank financial companies (NBFCs) to accept "green deposits." This ensures that funds are directed toward projects related to energy efficiency, clean transportation, climate adaptation, sustainable water and waste management, green buildings, and biodiversity conservation.



As the interest in green finance rises, India is expected to witness more creative financing solutions and investment opportunities in the green sector. In March, the Securities and Exchange Board of India (SEBI) introduced a category for Environmental, Social, and Governance (ESG) mutual funds. This allows asset management companies in India to launch multiple ESG funds, promoting increased transparency and boosting investor confidence as reporting on these parameters improves.



The Indian government has been actively addressing climate change through its National Action Plan, featuring eight missions to reduce emissions, enhance energy efficiency, increase forest cover, and develop sustainable habitats. This climate policy aligns with broader goals like ensuring energy access and water security.



This initiative is aimed at mobilising substantial resources dedicated to green infrastructure projects. The funds generated from these sovereign green bonds are expressly designated for deployment in public sector endeavors that actively contribute to the reduction of the carbon intensity of the economy. Strategic investments in sectors contributing to 41% of India's greenhouse gas emissions hold paramount significance, especially considering projections indicating their potential escalation to two-thirds of emissions by 2050 amidst ongoing economic growth.&nbsp;



<h2>Green Finance In Renewable Energy</h2>



Notably, the allocation of green bond proceeds to renewable energy plays a pivotal role in facilitating the adoption of well-established renewable technologies, with a primary focus on solar power, followed by wind and small hydro projects. Additionally, these funds contribute to vital research and development initiatives, including the exploration of emerging technologies such as tidal energy. This allocation of resources through green finance assumes critical importance in supporting India's transition towards a more sustainable energy landscape. These initiatives underscore the nation's dedication to leveraging financial instruments for the explicit purpose of fostering sustainable and environmentally responsible development, aligning with the broader global commitment to combat climate change.

Explainer: What Is Green Finance And Why It Matters

A building can gain heat from various sources and one of the easiest ways to cool it, is turning the roof into a green roof. Green roofs, often dubbed as 'vegetated heavens' or 'living oases,' are not your ordinary rooftops. A rooftop transformed into a flourishing ecosystem, boasting a waterproofing membrane as its guardian, a nourishing layer of soil as its foundation, and a vibrant array of plants as its lively inhabitantsâ€”all gracefully perched atop a conventional roof.



One of the initiatives feasible to contribute towards cooling any building is the green roof system. Green roofs serve as an extension of the existing roof infrastructure, requiring essential components such as high-quality waterproofing, a root-repellent system, efficient drainage, filter cloth, a lightweight growing medium, and a selection of plants.



Green roof systems can be categorised as modular, featuring pre-prepared, movable, and often interlocking grids containing drainage layers, filter cloth, growing media, and plants. Alternatively, they can be loose-laid or built-up, with each element installed independently. In essence, green roofs represent "contained" green spaces situated atop man-made structures, existing independently from the ground and manifesting at, below, or above grade levels. Successfully implemented worldwide, green roofs offer a solution to both public and private spaces.



<a href="https://ourworld.unu.edu/en/grow-a-green-roof">Green Roofs</a> are nature's water managers in urban landscapes. Imagine rooftops that don't just shield us from the polluting elements but actively contribute to managing water resources. Green roofs, adorned with lush vegetation, play a vital role in this ecological narrative.



In the midst of rain, these greens gracefully capture and retain water, allowing the moisture to evaporate slowly from the soil and rooftop greenery.The significance? It's a strategic move to thwart runoff during heavy downpours, a key player in preventing overwhelmed sewers from unleashing havoc.



By curbing excess runoff, and averting sewage overflows into local water bodies, sparing streams and lakes from contamination. This results in reduced basement backups, lower treatment costs, and a lighter load on energy consumption for rainwater treatment.



<h2>Navigating Temperatures in the Urban Heat Island Effect</h2>



Cities, with their concrete jungles of buildings and sprawling roads, have a unique tendency to absorb and retain heat, transforming urban landscapes into hotspots in comparison to the cooler surrounding rural areas.&nbsp; In the daytime, the disparity in air temperatures between urban and rural zones can range from 1.8 to 5.4Â°F, showcasing the distinct warming influence of city infrastructure. As night falls, this temperature gap widens further, as the built environment holds onto the absorbed heat from the day.The consequence is clear, cities become thermal islands, marked by a persistent warmth that extends beyond the sunset.



<h2>Impact of Nature On Quality of Life</h2>



In the quest for an enhanced quality of life, the connection to nature proves to be a transformative force. This connection, whether direct or indirect, holds the key to improving overall well-being. Stress, a contributor to chronic diseases, takes centre stage in this narrative, and research underscores the stress-alleviating power of direct exposure to nature.



Integrating nature into everyday spaces, such as workplaces adorned with green design elements like green roofs, manifests tangible benefits.



Also read:<a href="https://letmebreathe.in/2023/12/18/https-letmebreathe-in-2023-12-18-the-power-of-blue-carbon-in-climate-action/"> The Power Of Blue Carbon</a>



<h2>Green Roofs And Energy Costs</h2>



The transformative influence of green roofs extends beyond mere aestheticsâ€”it's a game-changer in enhancing building efficiency and curbing electricity expenses.



As the sun beats down, the growing medium provides insulation, and the verdant canopy shields the roof from the scorching embrace of solar heat. A green roof and a drop in the surrounding air temperature will have a big impact on the environment. This not only brings relief to the building but also translates into a tangible reduction in the need for air conditioning during the sweltering summer months.



<h2>Green Roofs As Pollution Combatants</h2>



By mitigating temperatures and slashing energy consumption, they play a pivotal role in reducing concentrations of harmful pollutants that cast a shadow on air quality, climate, and public health.These initiatives target a lineup of notorious culprits, including particle pollution (PM), ground-level ozone (O3), carbon monoxide (CO), sulfur dioxide (SO2), nitrogen oxides (NOx), and lead (Pb)â€”all pollutants for compromising air quality and posing health risks.



<h2>A Small Yet Necessary Step</h2>



In the face of climate change, green roofs provide us with a tangible and accessible solution. Whether in our homes or workplaces, integrating these living ecosystems into our urban landscapes can be a small yet impactful step. By doing so, we contribute to a cooler, cleaner, and more resilient future. As individuals, let us recognise the power we hold in fostering change, one green roof at a time. It's not just about sustainable rooftops; it's a collective effort to safeguard our planet and ensure a healthier, more sustainable tomorrow for generations to come.

"Sky Gardens, How Green Roofs Foster Biodiversity In Concrete Jungles"

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Indiaâ€™s cost of adapting to climate change pegged at $1 trillion by 2030

Published on May 04 , 2023

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Rewind 2023: The Key Climate Events That Shaped The Year

Rural Design In Climate Action Matters

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"Sky Gardens, How Green Roofs Foster Biodiversity In Concrete Jungles"

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Indiaâ€™s cost of adapting to climate change pegged at $1 trillion by 2030

Published on May 04 , 2023

Like

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Author

LMB Staff

4 Categories

Latest Posts

Rewind 2023: The Key Climate Events That Shaped The Year

Rural Design In Climate Action Matters

Explainer: What Is Green Finance And Why It Matters

"Sky Gardens, How Green Roofs Foster Biodiversity In Concrete Jungles"

Related Episodes

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