Model Answer

Introduction

Carbon Dioxide Removal (CDR) refers to a set of technologies, practices, and approaches designed to remove and durably store carbon dioxide (CO2) from the atmosphere. As per the UN Intergovernmental Panel on Climate Change (IPCC), achieving net negative CO2 emissions is critical to combating climate change, and CDR plays an essential role in this process.

Methods of CDR

1. Afforestation and Reforestation: Planting trees helps capture CO2 through natural processes, storing carbon in biomass and soil. Agroforestry and tree planting initiatives are vital to enhancing this process.
2. Peatland Restoration: Re-wetting and re-vegetating degraded peatlands capture and store carbon in the soil, preventing the release of CO2.
3. Biochar: This method involves converting organic waste into stable, carbon-rich material through pyrolysis, which can be stored in the soil, promoting soil health.
4. Enhanced Rock Weathering: By accelerating the natural weathering process with silicate rocks like basalt, CO2 is permanently stored as solid carbonate minerals.
5. Bioenergy with Carbon Capture and Storage (BECCS): Biomass is used as an energy source, while CO2 released during conversion is captured and stored.
6. Direct Air Carbon Capture and Storage (DACCS): Industrial chemical processes capture CO2 directly from the air and store it in geological formations or products.
7. Marine-based Techniques: Techniques like ocean fertilization and coastal wetland management use biological or geochemical processes to capture CO2.

Challenges of CDR

1. Competition for Land: Techniques like afforestation and BECCS require significant land, potentially competing with agricultural and energy needs.
2. Impact on Biodiversity: Practices like single-species afforestation or ocean fertilization can harm biodiversity and disrupt food webs.
3. Potential for Greenhouse Gas (GHG) Emissions: Improper combustion of biochar or destruction of wetlands could release CO2 back into the atmosphere.
4. High Costs: Methods like DACCS and ocean fertilization are costly and may be unfeasible for developing nations.

Conclusion

While CDR is not a substitute for deep emissions reductions, it is a crucial tool for achieving net negative emissions. To maximize its potential, appropriate governance and policies are necessary to manage risks and challenges effectively.

Model Answer

Introduction

Climate budgeting is essential for integrating climate concerns into India’s development agenda, as it helps identify, classify, and categorize climate-related expenditures within the government’s budgetary structure. This enables accurate estimation, diligent monitoring, and systematic tracking of climate-related finances. However, India currently lacks a specific framework or guidelines to allocate a budget for climate change interventions.

Reasons for Climate Budgeting

1. International Reporting Requirements

Climate budgeting can help India meet its international reporting obligations, such as the Enhanced Transparency Framework (ETF) under the UNFCCC. By tracking climate finance expenditures, India can efficiently report its contributions towards national climate targets in Biennial Transparency Reports (BTR), fulfilling global commitments.

2. Strengthening Climate Finance Frameworks

Integrating climate finance into the budget allows for better identification of eligible projects, enhancing frameworks like green bonds. This, in turn, facilitates investments in climate-friendly initiatives, ensuring that financial instruments align with climate goals.

3. Estimating the Climate Finance Gap

Climate budgeting enables the estimation of the finance gap, providing evidence of existing climate expenditures. For example, Indonesia used climate budgeting to analyze this gap, helping create innovative financial models to address the shortfall.

4. Robust Policy-Making

By quantifying investments required to reduce emissions, climate budgeting aids in prioritizing climate actions. This process supports the State Action Plans on Climate Change, allowing for better management of climate finance and more robust policy decisions.

5. Preventing Underreporting

Climate budgeting helps prevent the underreporting of development projects with significant climate co-benefits. For example, PMKSY (Pradhan Mantri Krishi Sinchayee Yojana), which focuses on water conservation, is not typically reported as a climate adaptation or mitigation initiative.

Conclusion

Several Indian states, such as Maharashtra, Assam, Chhattisgarh, Bihar, Odisha, and Kerala, have already initiated budget coding exercises to track the climate relevance of development projects. This emphasizes the need for a national framework for climate budgeting to improve transparency, accountability, and the effectiveness of climate finance management.