URBAN-LEDS COUNTRY FACTSHEET

Multilevel governance for 2020 in

Summary FACTS & FIGURES

India’s National Action Plan on Climate Change (NAPCC) was created in 2008. This broad national policy was the basis on which the Nationally Per capita Determined Contribution (NDC) was prepared. India’s federal structure distributes powers at national and emissions (2015 state levels, and the implementation of the NAPCC estimate): is envisioned through the formulation of State Action 2.7 tonnes Plans for Climate Change (SAPCC). Implementation of these will require clear Monitoring, Reporting and CO2e Verification (MRV) systems and access to finance. Governance structure: Under the current system, climate data collection and communication across different levels of government Democratic could be improved. Local governments’ access to republic climate finance is also limited due to lack of mandate Human Development and knowledge on funding sources, limited technical Index (2019): capacity to design and implement bankable projects 129/189 with clear risk mitigation, and absence of engagement with donors and financiers. These challenges all point % urban population toward a need for strengthened vertical integration to (2015): create better conditions for the implementation of the 34% NDC and for India’s climate adaptation and mitigation strategies at sub-national levels.

The Vertical and Horizontal Dimensions of Multilevel Governance for Climate Change

New project resource

This diagram has been produced by the Urban-LEDS project to show the important components of multi-level governance for climate change action. Only by supporting systems of collaboration between and within national and local government can we ensure climate change can be tackled successfully while meeting development goals. Urban-LEDS Country factsheet: India

Enabling framework #1: National policies and strategies

India’s NDC builds on a strong existing policy framework, including the National Environment Policy (NEP) 2006, the National Action Plan on Climate Change (2008), the Energy Conservation Act (2001), the National Electricity Policy (2005), the Integrated Energy Policy (2016) and the National Policy for Farmers (2007). National policy directives are implemented through joint efforts at central, state and local levels. For example, the National Action Plan for Climate Change designates national missions that outline the priorities for mitigation and adaptation to climate change and sets the agenda for states to mainstream climate change concerns in the planning processes.

Urban content in India’s NDC India’s on-going mitigation and adaptation strategies

The significance of urbanization Mitigation: and importance of urban centers I. Clean energy production and distribution (e.g. National and their stakeholders for achieving Solar Mission) the national commitments is II. Enhancing Energy Efficiency (e.g. National Mission for recognized, and urban missions Enhanced Energy Efficiency (NMEEE)) are identified to promote climate resilience in cities. The central and III. Developing climate resilient urban centers (e.g. Smart state governments have provided Cities Mission) programmatic guidance and granted IV. Promoting waste to wealth conversion (e.g. ‘Swachh incentives to urban centers for Bharat Mission’) climate resilient and energy efficient V. Safe, Smart and Sustainable Green Transportation policies, regulations and financing Network (e.g. National Electric Mobility Mission Plan in conventional infrastructure, 2020 (NEMMP)) renewables, technology-based smart solutions, waste to wealth, and Adaptation: transportation and mobility. UN- Habitat’s Sustainable Urbanisation I. Water (e.g. National Water Mission (NWM)) in the NDCs report found that India’s II. Health (Health Mission) NDC has a strong urban context III. Coastal regions & islands (e.g. Mangroves for the Future and falls under Cluster A defined as (MFF) initiative) “Group of NDCs with urban mention IV. Disaster management (National Cyclone Risk Mitigation within headers” with mitigation Programme (NCRMP)) measures identified covering most urban sectors. V. Knowledge management & capacity building (Indian Network on Climate Change Assessment (INCCA)

145-kilowatt solar PV system installed at the Aji Water Treatment Plant, Rajkot © Rajkot Municipal Corporation Urban-LEDS Country factsheet: India

Enabling framework #2: Monitoring, Reporting and Verification (MRV)

India is implementing many programmes and policies in reporting on MRV is under the preview of Ministry of the energy, transport, industry, agriculture and forestry Environment, Forest and Climate Change, there is an sectors, which also contribute to GHG mitigation. absence of a streamlined MRV mechanism that tracks Monitoring, Reporting and Verification (MRV) systems and reports all the data pertaining to GHG emissions from are useful to estimate emissions and to measure the the urban contributors. currently in the process performance of projects and possible improvements. of developing a National Inventory Management System There is currently no dedicated urban/city focused MRV (NIMS) that will coordinate consistently with the supporting reporting system. Instead MRV is organised by sector. institutions with adequate capacity for the preparation of Further, most of the schemes that are under the Ministry National Communications and Biennial Update Reports of Housing and Urban Affairs (e.g. the Smart Cities Mission on a continuous basis. In addition, a recent initiative called or Atal Mission for Rejuvenation Urban Transformation), the Climate SmartCities Assessment Framework has been have no MRV mechanisms to measure GHG emissions initiated by the Ministry of Housing and Urban Affairs is a directly, as that is not a central priority of these schemes. pioneering effort to collate climate information from the Since climate change and associated international 100 smart cities in India.

CSCAF – Climatesmart Cities Assessment Framework

MoHUA has initiated the “ClimateSMART Cities Assessment whole, towards combating Climate Change (mitigation and Framework” to incentivize a holistic, climate responsive adaptation) while planning their actions, including investments. development in the 100 Smart Cities under the Smart City The key outcomes that are expected to emerge from the Mission. This is a first-of-its-kind public assessment framework assessment: where do you stand and what to do to improve? on climate-relevant parameters. The objective is to provide What you can do and what you need help with? Who else is in a a clear roadmap for the cities and in effect, urban India as a similar situation and how can you learn from them?

Enabling framework #3: BEST PRACTICE EXAMPLE Financing the climate transition Turning carbon Preliminary estimates indicate that do not have an urban focus. States can subsidy into India would need around US$ 206 tap into these funding sources provided carbon taxation billion (at 2014-15 prices) between the plan is aligned with the priorities 2015 and 2030 for implementing of each fund. National Missions do India has cut subsidies and adaptation actions in key areas provide support for the attainment increased taxes on fossil like agriculture, forestry, fisheries, of related urbanisation goals. The fuels (petrol and diesel) infrastructure, water resources Mission on Sustainable Habitat has turning a carbon subsidy and ecosystems. Total estimates implemented sector-based measures regime into one of carbon for meeting India’s climate change including new national building codes, taxation. Further, in its actions between 2015 and 2030 is the development of long-term transport effort to rationalize and at US$ 2.5 trillion (at 2014-15 prices). plans for cities and water supply target subsidies, India has Climate Finance in India comes from projects, among others, while the Smart launched ‘Direct Benefit Transfer Scheme’ for cooking multiple sources including national Cities Mission has many objectives that gas, where subsidy will be (domestic budgets and private can contribute to climate-compatible transferred directly into the funds) and international (multilateral urban development (e.g promotion of bank accounts of the targeted and bilateral aid agencies, and cycling and walking, climate adaptation, beneficiaries. These actions multinational private firms). mixed-land use planning). have led to an implicit carbon The main national funds include the Most secondary municipalities tax (USD 140 per ton for petrol Climate Change Action Programme are largely dependent on and USD 64 per ton for diesel) (CCAP), the National Adaptation Fund intergovernmental transfers for income; in absolute terms. This is on Climate Change (NAFCC) and the with low capacity for mobilisation of substantially above what is National Disaster Response Fund existing resources via, for example now considered a reasonable initial tax on CO emissions (NDRF). Urban Local Bodies (ULBs) property taxes, and limited experience 2 of USD 25- USD 35 per ton as receive intergovernmental transfers in attracting and spending climate per international standards. from national government (if a ULB finance. Municipalities may need to These national measures have is part of a national flagship mission) look beyond the traditional sources the potential to support local or transfers from states. These funds of funding and models of financing governments in reaching their at national level are often earmarked infrastructure projects to meet their own city-wide transport and for different sectors – e.g. power, service delivery objectives and the energy goals. , agriculture etc. and needs of their citizens. Urban-LEDS Country factsheet: India

Opportunities and recommendations for enhancing multilevel governance

Establish a dedicated Climate collection and reporting formats that be provided on how cities and Change Department at the State are similar across the country and in municipalities can help contribute Level line with India’s NDC. Coordination towards the goals set in the NDC. These departments would oversee between stakeholders on multiple planning, implementation and levels should be applied to Explore use of municipal bonds monitoring, and have the mandate ensure transparent and structured Municipal bonds are attractive as to facilitate the coordination reporting. Increasing technical the expected revenues in e.g. water between other state departments. capacity at the sub-national level supply and sewerage projects can Their responsibilities would include is also critical through training and be predicted with a reasonable making roadmaps, coordinating institutionalisation of best practices. level of certainty. The bond market fundingUrban with the champion central government can contribute to the financing of as well as different agencies and Develop a climate change climate adaptation technologies, working together with the municipal preparedness index improvements in energy efficiency Every other newsletter, we hand over the mic to local government staff in Urban-LEDS cities, so they can tell you their story of Projectpromoting Management low-carbon development Units to in their municipalitiesA central government body could and reduction of emissions. ensure the mutual understanding of create an index to rank states based priorities regarding climate change on their performance on some Encourage the establishment of and Low Emission Development key performance indicators such Public-Private Partnerships (PPPs) Strategies. In many States, existing as climate change adaptation and These partnerships can support environment department or State mitigation measures, availability Robertogovernment Cláudio Rodrigues funding, while funded institutions have already of finance for implementing key Bezerrafinancing innovative and efficient taken up this role like EPTRI climate-related projects, and Mayorprojects, of Fortaleza as the private sector is (Environment Protection Training institutional framework for MRV. more likely to invest in higher-risk and Research Institute) in projects. These mechanisms can and EPCO (Environmental Planning Mainstream climate change be beneficial for projects on the & Coordination Organisation) in objectives into existing central and city-level, but it is important to . state policy and finance flows transportimplement revealed to bethem the largest in a way that can sourcesbe of emissions,integrated Fortaleza in local has systems. Build capacity and harmonise the By synergising local urban begun to introduce incentives for public transport, and is implementing a waste collection of data by a central body objectives with other levels of government’s climate objectives, management plan that involves the public for urban sector and private sectors. In 2018, the city was Such an entity could contribute climate action can be mainstreamed.the winner of the Sustainable Transport in developing harmonised data Clearer guidelines could also Award of the Institute for Transport and DevelopmentThe PoliciesUrban-LEDS (ITDP), forproject the implementationThe Urban-LEDS of good practices II project in sustainable addressestransport and integrated traffic low The City of Fortaleza in Brazil faces transformation of a city does not depend safety and is setemission to host andthe Mobilize resilient challenges like many large cities: fast and on one person – the mayor - but is led International Congressdevelopment in June in 2019. more than 60 disorganized growth, public demands by the implementation of public policies cities in 8 countries. for security, housing, education and that engage all sectors in a city, and its In this new phase of Urban-LEDS, health, and the threat of climate impacts. entire population. “My expectation is to Fortaleza has reachedIt is implemented a level of maturity by Roberto Cláudio, the Mayor of Fortaleza, leave the seed of a future legacy that and accumulatedUN-Habitat knowledge and that, ICLEI – Local a coastal city in the north-eastern could change the way in which the citizen according to theGovernments mayor, will allow for Sustainability.the regional of Brazil, has the responsibility to of Fortaleza looks at the environment them to take biggerThe project steps on is thefunded path by the manage these challenges. and the development of the city”, he to low carbon Europeandevelopment. Union. Now, their mentioned. great ambition is to create a plan to adapt One of the reasons why Roberto Cláudio to climate change,Acknowledgements which aims to create got involved in politics, he says, was For the Mayor, the first phase of the more inclusiveThis public factsheet policies, isgenerate based on to make a difference in people’s lives. Urban-LEDS project was a learning jobs and, at theresearch same time, by Paruldrive the Agarwala. Married, a father of two daughters, opportunity, which included the achievement of sustainable development. and a doctor by profession, his career creation of the city’s first inventory of Edited by Dora Hegyi, Steven Bland and Aida Guardiola included a long period working in public GHG emissions and an accompanying Find out more about Fortaleza’s Urban- (UN-Habitat). health policy. He believes that the reduction plan. With waste and LEDS phase 1 achievements in this video Cities and Regions Talanoa Dialogue held in India, October 2018 © ICLEI South

For more information on the Urban-LEDS project;

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Disclaimer: The sole responsibility for the content of this publication lies with the authors. It does not necessarily reflect the opinion of the European Union. The European Commission is not responsible for any use that may be made of the information contained therein.

6 | March 2019 - Newsletter