CPI India’s CSF report highlights the need for an increase in investments to mitigate climate change effects. A multi-faceted approach, policy prioritisation, mainstreaming of adaptation investments and mobilising finance are crucial

‘Financing Adaptation’ the latest report by the Climate Policy Initiative’s (CPI) Center for Sustainable Finance(CSF) has revealed the immediate need for increased investments in adaptation to control and reduce the adverse effects of climate change in the country.

Due to the diverse geographical and socio-economic landscape, India faces a significant risk of climate change impacts. The report highlights the critical significance of adaptation, investments, figuring out the financial requirements of states across India and identifying funding gaps. The need to stress the necessity of exploring innovative financing solutions to address the pressing issue was highlighted by the lead author of this report, Malini Chakravarty. She drew attention to the potential of a multifaceted approach, including tax devolution principles shaped by the Finance Commission to channel resources to climate-vulnerable states and districts.

The requirement for policy and institutional prioritisation of adaptation, particularly in at-risk states was emphasised by the India director at CPI, Dhrba Purkayastha. Here he advocated for the mainstreaming of adaptation investments through budget allocations and leveraging public finance to attract commercial investments.

The report gives a detailed assessment of adaptation investment needs and funding gaps in states that have updated their State Action Plans On Climate  Change (SAPCCs). It provides important information on mobilising finance from public, private and blended sources for adaptation efforts.