Page 350 - Low Carbon Development in China and India
P. 350
• Public finance will be crucial in helping stimulate investments 3.2
for low carbon development. Apart from initiatives, such as the
National Clean Energy Fund, there is need for more public spending
on low carbon development initiatives.
• Institutions needs to be strengthened to respond and anticipate the
complexities and needs emerging in the low carbon space.
• Private sector should be engaged to fill the financing and
implementation gap for LCD. Coordination between private and
public sector needs to be improved.
• RBI can take steps in the direction of bringing financial innovation
like designing ‘green’ credit guidelines. It should also promote
voluntary sustainability reporting by banks.
• The Ministry of Finance, Government of India, should actively
monitor the usage of its fund flow towards various LCD activities.
One such mechanism could be ‘green budgeting’.
• Policymakers should devise ways that do not just generate interest
among individuals and organizations towards adoption of green
practices in their routine activities but also be able to sustain it.
• Policies in the state should promote organizations which work
towards low carbon initiatives by extending incentives to them
such as tax credits.
• There should be a knowledge sharing platform to document lessons
learnt at the sub-national level which can feed into national level
policymaking and improve national policy scenario.
• It will be up to the municipal corporations and the panchayats to
obtain funds to engage more in low carbon space and judiciously
utilize those funds. It also has to ensure that the national or sub-
national ‘green’ guidelines and/or policies are efficaciously
followed.
• Awareness about Carbonex and Greenex should be enhanced.
These can also be extended to more companies.
• Market mechanisms in India will need to be strengthened for
instruments such as the Renewable Energy Certificates (RECs) and
Energy Saving Certificates (ESCerts). Trading of instruments under
the Power Exchange India Limited can be further explored.
• In terms of international carbon market-related instruments, there
is a need for institutional support to CDM project developers
across various states in India. There is also a need to relook at the
current institutional processes which are bureaucratic and complex
in design.
Chapter 2 Innovative Financing for Low Carbon Development 315
for low carbon development. Apart from initiatives, such as the
National Clean Energy Fund, there is need for more public spending
on low carbon development initiatives.
• Institutions needs to be strengthened to respond and anticipate the
complexities and needs emerging in the low carbon space.
• Private sector should be engaged to fill the financing and
implementation gap for LCD. Coordination between private and
public sector needs to be improved.
• RBI can take steps in the direction of bringing financial innovation
like designing ‘green’ credit guidelines. It should also promote
voluntary sustainability reporting by banks.
• The Ministry of Finance, Government of India, should actively
monitor the usage of its fund flow towards various LCD activities.
One such mechanism could be ‘green budgeting’.
• Policymakers should devise ways that do not just generate interest
among individuals and organizations towards adoption of green
practices in their routine activities but also be able to sustain it.
• Policies in the state should promote organizations which work
towards low carbon initiatives by extending incentives to them
such as tax credits.
• There should be a knowledge sharing platform to document lessons
learnt at the sub-national level which can feed into national level
policymaking and improve national policy scenario.
• It will be up to the municipal corporations and the panchayats to
obtain funds to engage more in low carbon space and judiciously
utilize those funds. It also has to ensure that the national or sub-
national ‘green’ guidelines and/or policies are efficaciously
followed.
• Awareness about Carbonex and Greenex should be enhanced.
These can also be extended to more companies.
• Market mechanisms in India will need to be strengthened for
instruments such as the Renewable Energy Certificates (RECs) and
Energy Saving Certificates (ESCerts). Trading of instruments under
the Power Exchange India Limited can be further explored.
• In terms of international carbon market-related instruments, there
is a need for institutional support to CDM project developers
across various states in India. There is also a need to relook at the
current institutional processes which are bureaucratic and complex
in design.
Chapter 2 Innovative Financing for Low Carbon Development 315
