Study Material for UPSC IAS, Civil Services and State PCS Examinations - Environment (Climate Financing Initiatives)

Study Material for UPSC IAS, Civil Services and State PCS Examinations - Environment (Climate Financing Initiatives)

Global Environment Facility (GEF)

  • The Global Environment Facility (GEF) was established on the eve of the 1992 Rio Earth Summit to help tackle our planet’s most pressing environmental problems. It is A UNIQUE PARTNERSHIP of 18 agencies- including United Nations agencies, multilateral development banks, national entities and international NGOs.
  • Since 1994, the World Bank has served as the Trustee of the GEF Trust Fund and provided administrative services.
  • It is a public funder of projects to improve the environment. It acts as a financial mechanism for the following conventions:

1. Convention on Biological Diversity (CBD)
2. United Nations Framework Convention on Climate Change (UNFCCC)
3. UN Convention to Combat Desertification (UNCCD)
4. Stockholm Convention on Persistent Organic Pollutants (POPs)
5. Minamata Convention on Mercury
6. The GEF, although not linked formally the Montreal Protocol on Substances that Deplete the Ozone Layer (MP), supports implementation of the Protocol in countries with economies in transition

Green Climate Fund

  • It is a fund within the framework of the UNFCCC. Founded in 2010 as a mechanism to assist developing countries in adaptation and mitigation practices to counter climate change.
  • It is intended to be the centrepiece of efforts to raise Climate Finance of $100 billion a year by 2020. Carbon taxes and cess by the national governments.

Emission Trading:

  • It allows parties to the Kyoto Protocol to buy ‘Kyoto units’ (emission permits for green house gas) from other countries to help meet their domestic emission reduction targets.

Clean Development Mechanism

  • It is a flexible mechanism defined in Kyoto Protocol. It involves investment by developed countries in emission reduction projects in developing countries Joint Implementation (JI)
  • JI enables developed countries to carry out em ission reduction projects in another developed country to meet their emission reduction target under Kyoto protocol.

Perform Achieve Trade (PAT)

  • It is an Indian initiative under National Mission on Enhanced Energy Efficiency (NMEEE).
  • It involves trading in energy efficiency certificates to offset emissions. Energy intensive industrial units are assigned energy efficiency improvement targets. Any energy efficiency improvements in excess of their target (perform above the achievement) is converted into Energy Savings Certificates (ESCerts). The companies which fail to meet their target can buy these ESCerts (Trade) to fulfill their commitment.

National Adaptation Fund for Climate Change [NAFCC]

  • NAFCC was launched in 2015 to provide 100%central grant to the State Governments for implementing climate change adaptation projects. The objective is to assist states/ UTs that are particularly vulnerable to adverse effects of climate change.
  • The National Bank for Agriculture and Rural Development (NABARD) is National Implementing Entity (NIE) for NAFCC.

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