Page 282 - Low Carbon Development in China and India
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Thus, another fundamental issue relevant to financing strategies in the 3.2
low carbon development field is the absence of financial indicators.
2.2 Financial Mechanisms in India for Low Carbon
Development
The chapter will now look into the various aspects of financial
mechanisms for low carbon development in India. Seven types of
financial mechanisms will be covered as depicted in Figure 2.2.
These include public finance, traditional finance, risk management
instruments, market-based tradable instruments, international climate
finance, public-private partnerships, and philanthropy.
1) Public Finance Initiatives
• Special national funds
• Fiscally supported guarantee schemes
• Special funds at the sub-national level
2) Traditional Finance
• Banking
• Innovation in financial products
• Green Bonds
3) Risk Management Instruments
4) Climate Change and Market-Based Instruments
• International carbon markets
• Domestic carbon market
• Other market-based innovations
5) International Climate Finance
6) Public–Private Partnerships
7) Philanthropy
Figure 2.2 Financial Mechanisms for Low Carbon Development in India
2.2.1 Public Finance Initiatives
Special National Funds
The National Clean Energy Fund (NCEF), announced in the Union
Budget 2010–11, is seen as a major step in India’s quest for energy
security and reducing carbon intensity of energy. Funding research
and innovative projects in clean energy technologies and harnessing
Chapter 2 Innovative Financing for Low Carbon Development 247
low carbon development field is the absence of financial indicators.
2.2 Financial Mechanisms in India for Low Carbon
Development
The chapter will now look into the various aspects of financial
mechanisms for low carbon development in India. Seven types of
financial mechanisms will be covered as depicted in Figure 2.2.
These include public finance, traditional finance, risk management
instruments, market-based tradable instruments, international climate
finance, public-private partnerships, and philanthropy.
1) Public Finance Initiatives
• Special national funds
• Fiscally supported guarantee schemes
• Special funds at the sub-national level
2) Traditional Finance
• Banking
• Innovation in financial products
• Green Bonds
3) Risk Management Instruments
4) Climate Change and Market-Based Instruments
• International carbon markets
• Domestic carbon market
• Other market-based innovations
5) International Climate Finance
6) Public–Private Partnerships
7) Philanthropy
Figure 2.2 Financial Mechanisms for Low Carbon Development in India
2.2.1 Public Finance Initiatives
Special National Funds
The National Clean Energy Fund (NCEF), announced in the Union
Budget 2010–11, is seen as a major step in India’s quest for energy
security and reducing carbon intensity of energy. Funding research
and innovative projects in clean energy technologies and harnessing
Chapter 2 Innovative Financing for Low Carbon Development 247
