Roadmap for Answer Writing 1. Introduction Briefly introduce the concept of carbon trading and its significance in tackling climate change. Define carbon trading as a system where carbon credits are bought and sold, allowing entities to offset their emissions by investing in projects ...
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, aRead more
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.
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Model Answer Reducing Greenhouse Gas (GHG) Emissions Carbon trading is a key mechanism in addressing climate change by reducing GHG emissions. It provides a market-based solution where entities that exceed their emissions targets can buy credits from those who reduce their emissions, creating financRead more
Model Answer
Reducing Greenhouse Gas (GHG) Emissions
Carbon trading is a key mechanism in addressing climate change by reducing GHG emissions. It provides a market-based solution where entities that exceed their emissions targets can buy credits from those who reduce their emissions, creating financial incentives for emission reductions. For example, trading in sulfur dioxide permits successfully helped reduce acid rain in the U.S. Carbon trading systems have been adopted globally, covering over 21% of global emissions by 2021, up from 15% in 2020-Effectiveness and Flexibility**
Carbon trading is often more cost-effective than imposing direct regulations or taxes on emissions, allowing industries to meet emissions targets without the heavy burden of direct control measures. This flexibility helps reduce the overall societal costs of combating climate change .
Alih the Paris Agreement
Carbon markets align with Article 6 of the Paris Agreement, encouraging international cooperation by facilitating the trade of carbon credits. This fosters a collective global effort to achieve emissions reduction goals .
Promoting Innd Financial Benefits
The system incentivizes industries to innovate and adopt cleaner technologies to reduce emissions. It also offers financial rewards for entities that emit less than their allowed limits by enabling them to sell unused credits .
Key Features oon Credit Trading Scheme (CCTS) 2023
Governance and Oversight
The Ministry of Power has set up the CCTS framework to regulate carbon markets in India. The National Steering Committee (NSC), led by the secretaries of Power and Environment, provides direct oversight of the Indian carbon market .
Role of Bureau of Energy Effic)
BEE will administer the carbon market, setting emission reduction targets, issuing carbon credit certificates, and accrediting carbon verification agencies .
Regulatory Bodies and Functions
The CCTS 2023 is an essential step in India’s climgy, helping to integrate domestic efforts with global initiatives for climate mitigation.
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