Stimulating Green Growth in India: Policy Architecture Green Economy for Poverty Reduction: Innovation and Scale 17th Poverty Environment Partnership (PEP) Meeting K. Vijaya Lakshmi Development Alternatives Feb 6th-9th,2012 Orcha,(M.P) India Development Alternatives

India’s Development Trajectory essential focus: economic growth and poverty alleviation Pre – 1970 Asset Creation & Redistribution 1970s and 1980s Income and Employment Generation 1990s Liberalization and Globalization Environment Awareness and Integration Post 2000 Towards Inclusive Growth Climate Awareness and Integration 2

Poverty Alleviation – Key Findings India made steady progress in alleviating poverty, but not enough to achieve the MDGs High levels of inequality based on caste and gender -exacerbate the poverty of vulnerable groups Inequalities structural in nature, keeping groups trapped, making them unable to take advantage of economic growth Culturally rooted systems perpetuate inequality Women within lower groups are the worse affected Agriculture sector brought down levels of poverty from 55% in early 1970s to about 35%today Balance needed between Agri sector and productive employment in nonagricultural sectors (Kirit Parikh) Reaching the poorest, the marginalized and the most vulnerable 3

Impact of Climate Change on India 700 million rural population directly depended on climate sensitive sectors and natural resources Low adaptive capacity 2.7- 4.3°C temperature increase over India by the 2080s (IPCC, 2007) Changes in rainfall pattern India's 7,517 km coastline will be particularly hard-hit by storm surges and sea-level rise Increase in the frequency and intensity of droughts and floods creating food security risk

Emerging Challenges and Imperatives Steering a Rapidly Developing Economy Macro-economic Issues Globalisation and International Trade Integrating Poor and Vulnerable Communities Internal Security and Inclusive Growth Migration and Trans-boundary Issues Arresting Ecosystems Degradation and Climate Change 5

Current Policy Responses By Government Central Government PM’s Advisory Council and NAPCC 12th Five Year Plan, 14th Finance Commission Announcement of Voluntary Emissions Intensity Reduction Nuclear Energy? State and Local Governments State and Local Governments’ Action Plans Role of the Judiciary Traditionally very proactive – tending to judicial activism 6

Current Policy Responses By Other Indian Stakeholders Private Sector Civil Society Organisations Research and Academic Institutions Media 7

Climate Change (CC) concerns in Indian planning process

Climate change integrated planning Planning process is guided by the principles of sustainable development Initiatives such as renewable energy installations; introduction of green / bio fuels; enhancing afforestation etc India released its National Action Plan on Climate Change (NAPCC) India has been assessed as the Best CDM country Forest cover is increasing, by 0.8 million hectares a year neutralizing 11% of India’s annual GHG emissions State of the Environment (SOE) Scheme Environment protection as monitorable targets Participatory management and Eco-development (People’s Biodiversity Registers, JFM,SFM)

Climate change integrated planning Extension of conservation and management programmes to fragile or vulnerable ecosystems Budgetary Regulations (indicator) Reforms in the energy and power sector Awareness, training, capacity Building, Research Development of Institutional frameworks

Relative Expenditures on Major Adaptation Schemes by Thematic Area

Expenditure on adaptation to climate variability Addressing Energy Security And Climate Change, Ministry of Environment & Forests Ministry of Power, Bureau of Energy Efficiency, Government of India October 2007

Thrust Areas of Policies Energy Security Access to Energy Energy Efficiency Diversification of resources Food Security Increased Production / Yield Integrated Farming Systems Efficient Irrigation Systems Weather / Crop Insurance

Natural Resource Conservation Afforestation Integrated Management of Resources Participatory Disaster Management shift from R & R to mitigation and preparedness International Cooperation collaborative research mechanisms for technology transfer REDD +

Policy implications of Climate Change Policy imperatives for the energy intensive sectors such as, agriculture, industry, transport : Inclusion of risk assessment and vulnerability studies in national infrastructure planning; Integration of climate change scenarios into decision making at local, regional, and national levels; Development of adaptation options such as ensuring high design standards for new infrastructure to protect against extreme events; Integration of emissions reduction and climate change adaptation strategies into policies that seek to promote industrial growth, urban and rural development Trade policy Alternate sources of energy

National Action Plan on Climate Change 8 Missions, 2 of which are focus on ‘Mitigation’ and 5 on ‘Adaptation’

MNREGA potential towards Climate Change Mitigation & Adaptation Case Study MNREGA potential towards Climate Change Mitigation & Adaptation Choice of works (in %) under NREGA from initiation up till March 2007 Source: nrega.nic.in/presentations/PMOprese20-07-07.ppt available as on 15 June 2010

Various kinds of work under water conservation under NREGA Source: Ministry of Rural Development available

Post Kyoto 2012 Focus Energy Efficiency and Emission targets well set to reach 25% target NAPCC as a Key vehicle of NAMA implementation – If designed and implemented well, a great opportunity to realise policy to practice connect

Actions taken to reach 25% target Renewable Energy Certificates Trading mechanism - 5 trading sessions have taken place   Promotion of off grid renewables under RGGVY National Solar Mission call for batch 2 of phase 1 has been made. Invited bids for 350 MW PV capacity under solar mission                      MNRE invited bids for the second batch of solar power projects under the Phase I of the (JNNSM). Projects selection through reverse bidding wherein developers shall offer discounts on the base tariff of Rs 17.91 per kWh.       

Actions taken to reach 25% target…contd Role of technology,innovation & international regime REC, JNNSM and PAT allow registration of projects under CDM. Feasibility Studies carried our for industries and lighting (LED) using Japanese technology Delhi Metro Project was financed by JBIC. - Mitsubishi was instrumental in supplying technology for this project.

Proactive Measures at National Level Indian Network of Climate Change Assessment (INCCA) – 127 labs on climate change & impacts in different sectors Expert Group on a low carbon strategy and inclusive growth – to recommend for prioritized actions in Electricity, Transport, Industry, Oil & Gas, Buildings and Forestry Carbon Tax on Coal to fund Clean Energy Perform, Achieve and Trade Mechanism for Energy efficiency Assessment of Impacts of Climate Change on Water Resources, Agriculture, Forests and Human Health Bachat Lamp Yojana as CDM Program State level actions

India Inclusive Innovation Fund (IIIF) IIIF will use Rs.5000 Cr to foster inclusive innovation Focus: innovative models for poverty alleviation Priority areas: - Health - Rural communications, - Agriculture, - Animal husbandry and - Green energy. - Should largely be invested in Gender Inclusive innovations

What is Inclusive Development ? Development that : Reduces poverty Enables all groups of people to contribute to: - creating opportunities - sharing the benefits of development and - participating in decision making

Innovation to Empowerment&Inclusivity Innovation to empowerment is not a natural transformation. It requires: - strategic interventions - convergence of commitment - shift in paradigms - forging of new alliances - unleashing of innovations - an unprecedented opportunity is waiting for new alliances

THANKS