CLIMATE CHANGE

FINANCING
Strategic IMPACT ASSESSMENT
CLIMATE FINANCING
 CLIMATE FINANCE

• Climate finance refers to local, national or transnational financing—drawn from public, private and
alternative sources of financing—that seeks to support mitigation and adaptation actions that will address
climate change.
• The Convention, the Kyoto Protocol and the Paris Agreement call for financial assistance from Parties
with more financial resources to those that are less endowed and more vulnerable. This recognizes that
the contribution of countries to climate change and their capacity to prevent it and cope with its
consequences vary enormously.
• Climate finance is needed for mitigation, because large-scale investments are required to significantly
reduce emissions.
• Climate finance is equally important for adaptation, as significant financial resources are needed to adapt
to the adverse effects and reduce the impacts of a changing climate.
 WHAT IS THE DIFFERENCE BETWEEN ADAPTATION AND
MITIGATION?

• Adaptation means anticipating the adverse effects of climate change and taking appropriate action
to prevent or minimize the damage they can cause, or taking advantage of opportunities that may
arise. Mitigation means making the impacts of climate change less severe by preventing or reducing
the emission of greenhouse gases (GHG) into the atmosphere.
• Adaptation means anticipating the adverse effects of climate change and taking appropriate action
to prevent or minimize the damage they can cause, or taking advantage of opportunities that may
arise. Examples of adaptation measures include large-scale infrastructure changes, such as building
defences to protect against sea-level rise, as well as behavioural shifts, such as individuals reducing
their exposure to high temperatures and checking on vulnerable family members and neighbours
during heatwaves. In essence, adaptation can be understood as the process of adjusting to the current
and future effects of climate change.
• Mitigation means preventing or reducing the emission of greenhouse gases (GHG) into the
atmosphere to make the impacts of climate change less severe. Mitigation is achieved either by
reducing the sources of these gases — e.g. by increasing the share of renewable energies, or
establishing a cleaner mobility system — or by enhancing the storage of these gases — e.g. by
increasing the size of forests. In short, mitigation is a human intervention that reduces the sources of
GHG emissions and/or enhances the sinks.
 EXAMPLES OF MITIGATION

• Building barriers to protect urban areas from sea-level rises.

• Building infrastructure and urban areas in non-coastal zones.
• Implementing new agricultural techniques that allow for the cultivation of low-
water-demand crops in drought-prone areas.
• Funding medical research into the study and treatment of diseases that are
likely to be spread with rising temperatures in some regions of the world.
• Enhancing the capacity and efficiency of wildfire prevention and suppression
efforts in response to their increasing frequency and intensity.
 EXAMPLES OF ADAPTATION

• The phase-out of fossil fuels and the transition towards renewable energy
sources.
• The use of battery electric vehicles.
• The implementation of emissions trading systems or a carbon tax.
• Reforestation and protection of forests and oceans, which will enhance the
atmosphere’s carbon dioxide absorption capacity.
These mitigation measures are aimed at reducing greenhouse gas emissions,
which is essential for limiting the increase of the global average temperature.
 SOME OF THE MAJOR SCHEMES/POLICIES
SIGNIFICANTLY ADDRESSING ADAPTATION
OBJECTIVES ARE AS FOLLOWS:

• Mahatma Gandhi Swarnajayanti Gram Swarozgar Yojana (Rural self-employment

program)
• Sampoorna Grameen Rozgar Yojana (Comprehensive rural employment scheme)
• Pradhan Mantri Gram Sadak Yojana (Prime Minister’s rural roads program)
• National Rural Health Mission
• Accelerated Rural Water Supply Programme
• Desert Development Programme
• Major and Medium Irrigation
• Sustainability of Dryland/Rainfed Farming System and
• Disaster Management
FROM REVIVING TRADITIONAL CROPS TO CLIMATE -
PROOFING INFRASTRUCTURE: HOW 5 INDIAN
COMMUNITIES ARE ADAPTING TO CLIMATE CHANGE

• https://www.weforum.org/stories/2023/03/from-reviving-traditional-crops-to-building-climate-proof-
infrastructure-how-5-indian-communities-are-adapting-to-climate-change/

Climate Change Adaptation & Mitigation in India

• https://www.swaniti.com/climate-change-adaptation-mitigation-in-india/

Doubling Investment by 2025 and Eliminating Nature-Negative

Finance Flows
• https://youtu.be/VZfTtrsF9Kw
MAJOR MITIGATIO N - O RIE NTE D POLICIE S ACROSS TH E FIVE MOST
E MISSION INTE NSIVE SE CTORS
 WHAT IS THE FINANCIAL MECHANISM?

• The Convention states that the operation of the financial mechanism can be entrusted to one or more
existing international entities. The Global Environment Facility (GEF) has served as an operating entity
of the financial mechanism since the Convention’s entry into force in 1994. At COP 16, in 2010, Parties
established the Green Climate Fund (GCF) and in 2011 also designated it as an operating entity of the
financial mechanism. The financial mechanism is accountable to the COP, which decides on its policies,
programme priorities and eligibility criteria for funding.
• In addition to providing guidance to the GEF and the GCF, Parties have established two special funds—
the Special Climate Change Fund (SCCF) and the Least Developed Countries Fund (LDCF), both
managed by the GEF—and the Adaptation Fund (AF) established under the Kyoto Protocol in 2001.
• At the Paris Climate Change Conference in 2015, the Parties agreed that the operating entities of the
financial mechanism – GCD and GEF – as well as the SCCF and the LDCF shall serve the Paris
Agreement. Regarding the Adaptation Fund serving the Paris Agreement negotiations are underway in
the Ad hoc Working Group on the Paris Agreement (APA).
NET Z E RO AND N AT U R E POSITIVE FINANCE: AC C E L E R AT I N G
S U S TA I N A B L E L A N D - U S E I N V E S T M E N T S F O R P E O P L E A N D P L A N E T
 HOW & WHY COMPANIES ARE COPING WITH THE
CLIMATE CHANGE PHENOMENON, AND STRATEGIES
BEING ADOPTED, BY THEM FOR THE SAME.

• (1)Ray Anderson: The business logic of sustainability (A Case of the American Company – Interface)
• https://www.youtube.com/watch?v=iP9QF_lBOyA
• (2) Also, do have a look at the documentary named - "Cowspiracy" on
Youtube. (https://www.youtube.com/results?search_query=cowspiracy )
 STRATEGIC ENVIRONMENTAL ASSESSMENT

Strategic Environmental Assessment

(SEA) refers to systematic analysis of the
environmental effects of development
policies, plans, programs and other
proposed strategic actions.
SEA represents a proactive approach to
integrating environmental considerations
into the higher levels of decision-making -
beyond the project level, when major
alternatives are still open.
 STAGES IN STRATEGIC ENVIRONMENTAL ASSESSMENT (SEA)

1. SEA Screening
• Screening refers to the decision to undertake an SEA. SEAs are necessary for all policies, plans or programmes that, when
implemented, are likely to produce significant negative impacts on the environment.
2. SEA Scoping
• Scoping refers to the identification and clarification of issues to be addressed by the SEA. Scoping should take into
consideration the concerns and value judgements of stakeholders, in order to ensure that these are addressed in the SEA
Study.
3. SEA study
• The SEA study provides the more detailed analysis of key issues and comprises several stages, such as the definition of the
environmental baseline, the identification of environmental and climate change constraints and opportunities, the
identification and assessment of the potential environmental impacts, an analysis of performance indicators, an appreciation
of the institutional capacities to address the environmental and climate change challenges identified, and conclusions and
recommendations.
 LIFE CYCLE ASSESSMENT
A Life Cycle Assessment (LCA) is defined as the systematic analysis of the potential
environmental impacts of products or services during their entire life cycle.

During a Life Cycle Assessment (Life Cycle Analysis), you evaluate the potential
environmental impacts throughout the entire life cycle of a product (production, distribution,
use and end-of-life phases) or service.

• This also includes the upstream (e.g., suppliers) and downstream (e.g., waste
management) processes associated with the production (e.g., production of raw, auxiliary
and operating materials), use phase, and disposal (e.g., waste incineration).
• Life cycle impact assessment (LCIA) covers all relevant inputs from the environment (e.g.,
ores and crude oil, water, land use) as well as emissions into air, water and soil (e.g.,
carbon dioxide and nitrogen oxides). The International Organization for Standardization
provides guidelines and requirements for conducting a Life Cycle Assessment according
to ISO 14040 and 14044.
(Source:- https://sphera.com/glossary/what-is-a-life-cycle-assessment-lca/ )
LIFE CYCLE ASSESSMENT(LCA) STAGES DIAGRAM
Cradle-to-gate
Cradle-to-gate only assesses a product until it leaves the factory gates before it is transported to the consumer.
This means cutting out the use and disposal phase. Cradle-to-gate analysis can significantly reduce the complexity of
an LCA and thus create insights faster, especially about internal processes. Cradle-to-gate assessments were
common in environmental product declarations (EPD) according to EN15804+A1, but EN15804+A2 now
demands a cradle-to-grave approach. Environmental Product Declarations are standardized certifications of a life
cycle assessment, used mostly to verify impact data from business to business.

Cradle-to-cradle
Cradle-to-cradle is a concept often referred to within the Circular Economy. It is a variation of cradle-to-grave,
exchanging the waste stage with a recycling process that makes it reusable for another product, essentially “closing
the loop”. This is why it is also referred to as closed-loop recycling.

Gate-to-gate
Gate-to-gate is sometimes used in product life cycles with many value-adding processes in the middle. To reduce
complexity in the assessment, only one value-added process in the production chain is assessed. These
assessments can later be linked together to complete a larger level Life Cycle Assessment.
 LC A OF MOBILE PHONES
h t t p s : / / w w w. yo u t u b e . c o m / w a t c h ? v = c b c 9 o t g q o n e
LCA OF LITHUIUM-ION BATTERY
LCA PRACTITIONERS IN INDIA