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component in creating an enabling environment to attract private 3.2
investments in the sector (FAO 2012). There is also a need to ensure
careful use of subsides in the agriculture sector, including the fertilizer
subsidy, to be able to plough back the subsidy savings—this could
then be used for the development of agricultural practices which are
low carbon in nature.
The agriculture sector in India can also make use of the funding
available under the Adaptation Fund to implement adaptation
measures as a response to negative impacts of climate change.
Box 2.6 gives highlight of the adaptation fund.
Box 2.6: Adaptation Fund under UNFCCC
The Adaptation Fund (AF) was established in 2001 to finance concrete adaptation
projects and programmes in developing country Parties to the Kyoto Protocol that are
particularly vulnerable to the adverse effects of climate change. It is financed with a
share of proceeds from the CDM project activities and other sources of funding. The
share of proceeds amounts to 2 per cent of CERs issued for a CDM project activity. The
fund also receives contributions from governments, the private sector, and individuals.
The AF is supervised and managed by the Adaptation Fund Board (AFB) which is
composed of 16 members and 16 alternates.
One unique feature of the Adaptation Fund is its direct access mechanism, which
enables accredited national implementing entities (NIEs) and regional implementing
agencies (RIEs) in developing countries to directly access climate adaptation financing.
The National Implementing Entities (NIEs) prepares and submit projects to the
designated authority of the national government for endorsement to the AFB Secretariat
for consideration and sanction. India is eligible to seek financial support under the AF. It
can undertake climate adaptation activities at national and regional level. NABARD has
been accredited by the Adaptation Fund Board of UNFCCC as National Implementing
Entity (NIE) in India. The NIE bears full responsibility for the overall management, all
financial, monitoring, and reporting responsibilities for the project. It may appoint
Executing Entities to execute projects and programmes under its oversight.
2.3.7 Industry
India’s industry sector consists of both large industries that are at
par with world standards and scale, as well as small units which are
primarily unorganized and constrained in being able to access and
make gainful use of knowledge, processes, and mechanisms that allow
technological progress. In terms of primary energy consumption,
industry remains the largest consumer of energy in India, accounting
for over 50 per cent of the total energy consumption in the country.
Energy-intensive industries namely fertilizers, aluminium, textiles,
Chapter 2 Innovative Financing for Low Carbon Development 295
investments in the sector (FAO 2012). There is also a need to ensure
careful use of subsides in the agriculture sector, including the fertilizer
subsidy, to be able to plough back the subsidy savings—this could
then be used for the development of agricultural practices which are
low carbon in nature.
The agriculture sector in India can also make use of the funding
available under the Adaptation Fund to implement adaptation
measures as a response to negative impacts of climate change.
Box 2.6 gives highlight of the adaptation fund.
Box 2.6: Adaptation Fund under UNFCCC
The Adaptation Fund (AF) was established in 2001 to finance concrete adaptation
projects and programmes in developing country Parties to the Kyoto Protocol that are
particularly vulnerable to the adverse effects of climate change. It is financed with a
share of proceeds from the CDM project activities and other sources of funding. The
share of proceeds amounts to 2 per cent of CERs issued for a CDM project activity. The
fund also receives contributions from governments, the private sector, and individuals.
The AF is supervised and managed by the Adaptation Fund Board (AFB) which is
composed of 16 members and 16 alternates.
One unique feature of the Adaptation Fund is its direct access mechanism, which
enables accredited national implementing entities (NIEs) and regional implementing
agencies (RIEs) in developing countries to directly access climate adaptation financing.
The National Implementing Entities (NIEs) prepares and submit projects to the
designated authority of the national government for endorsement to the AFB Secretariat
for consideration and sanction. India is eligible to seek financial support under the AF. It
can undertake climate adaptation activities at national and regional level. NABARD has
been accredited by the Adaptation Fund Board of UNFCCC as National Implementing
Entity (NIE) in India. The NIE bears full responsibility for the overall management, all
financial, monitoring, and reporting responsibilities for the project. It may appoint
Executing Entities to execute projects and programmes under its oversight.
2.3.7 Industry
India’s industry sector consists of both large industries that are at
par with world standards and scale, as well as small units which are
primarily unorganized and constrained in being able to access and
make gainful use of knowledge, processes, and mechanisms that allow
technological progress. In terms of primary energy consumption,
industry remains the largest consumer of energy in India, accounting
for over 50 per cent of the total energy consumption in the country.
Energy-intensive industries namely fertilizers, aluminium, textiles,
Chapter 2 Innovative Financing for Low Carbon Development 295
