Page 310 - Low Carbon Development in China and India
P. 310
According to the World Giving Index Report11 of 2014, India ranked
52nd in terms of donating money to charity; overall, India ranks 69th
(Charities Aid Foundation 2014). Table 2.12 lists philanthropic causes
and contribution in India for the year 2014. It is seen that philanthropic
contribution for the cause of environment is negligible (0.06 per cent
of total philanthropic contribution) for the year 2013–14. It can be
thus said that there is wide scope for activities around environmental
sustainability in terms of both CSR and philanthropic activities.
Table 2.12: Philanthropic Causes and Contribution in India (2013–14)
Rank Cause Total contribution Total contribution % (total)
(INR Crores) (USD million) 78.89
12.98
1 Education 15,791 2,361.83 8.05
0.07
2 Social & rural development 2,333 388.83 100.00
3 Healthcare 1,447 241.12
4 Environmental protection 12 2
Total 19,583 2,993.78
Note: Values are rounded, and past figures are subjected to exchange rate fluctuations.
1 USD = INR 60.
Source: Hurun Research Institute (2014)
2.3 Sectors and Finance 3.2
Finance plays a crucial role in resource allocation towards an economic
activity. The role of finance is no different in economic activities
concerning low carbon development. However, the challenges are far
greater. A study by Infrastructure Development Finance Company
suggests that the lack of familiarity of financial institutions to low carbon
space and consequently, the inability to assess risks make financing of
low carbon space difficult and inadequate (IDFC 2010). It adds that
there is a prevalence of high transactions costs in such activities, which
also require initial high capital outlays and long payback periods. The
tendency of financial institutions to ask for recourse finance and the
absence of specific funds for low carbon space make the challenge even
more daunting. These add to making economic activities concerning
low carbon development extremely policy dependent. With public
finance becoming ever scarce, and the demand for public finance
for other strategic areas increasing, low carbon space may be found
11 The World Giving Index (WGI) was compiled by the Charities Aid Foundation,
using data gathered by Gallup, and ranks 153 countries in the world according
to how charitable their populations are.
Chapter 2 Innovative Financing for Low Carbon Development 275
52nd in terms of donating money to charity; overall, India ranks 69th
(Charities Aid Foundation 2014). Table 2.12 lists philanthropic causes
and contribution in India for the year 2014. It is seen that philanthropic
contribution for the cause of environment is negligible (0.06 per cent
of total philanthropic contribution) for the year 2013–14. It can be
thus said that there is wide scope for activities around environmental
sustainability in terms of both CSR and philanthropic activities.
Table 2.12: Philanthropic Causes and Contribution in India (2013–14)
Rank Cause Total contribution Total contribution % (total)
(INR Crores) (USD million) 78.89
12.98
1 Education 15,791 2,361.83 8.05
0.07
2 Social & rural development 2,333 388.83 100.00
3 Healthcare 1,447 241.12
4 Environmental protection 12 2
Total 19,583 2,993.78
Note: Values are rounded, and past figures are subjected to exchange rate fluctuations.
1 USD = INR 60.
Source: Hurun Research Institute (2014)
2.3 Sectors and Finance 3.2
Finance plays a crucial role in resource allocation towards an economic
activity. The role of finance is no different in economic activities
concerning low carbon development. However, the challenges are far
greater. A study by Infrastructure Development Finance Company
suggests that the lack of familiarity of financial institutions to low carbon
space and consequently, the inability to assess risks make financing of
low carbon space difficult and inadequate (IDFC 2010). It adds that
there is a prevalence of high transactions costs in such activities, which
also require initial high capital outlays and long payback periods. The
tendency of financial institutions to ask for recourse finance and the
absence of specific funds for low carbon space make the challenge even
more daunting. These add to making economic activities concerning
low carbon development extremely policy dependent. With public
finance becoming ever scarce, and the demand for public finance
for other strategic areas increasing, low carbon space may be found
11 The World Giving Index (WGI) was compiled by the Charities Aid Foundation,
using data gathered by Gallup, and ranks 153 countries in the world according
to how charitable their populations are.
Chapter 2 Innovative Financing for Low Carbon Development 275
