India has tremendous potential when it comes to nature-based solutions—it can provide sustainability, jobs, and growth. NBS are currently implemented in different schemes and programmes in India, including the Mahatma Gandhi National Rural Employment Scheme (MGNREGA) and missions, under the National Action Plan on Climate Change (NAPCC).
For instance, almost 60 per cent of the activities allowed under the NREGA are related to natural resource management, which comes under the purview of NBS. Under its Nationally Determined Contributions (NDCs), India has mentioned a target of creating an additional sink of 2.5 to 3 billion tonnes of CO2 by increasing forest and tree cover by 2030 and identified 12 National Biodiversity Targets under its National Biodiversity Action Plan.
The Government of India has taken action to scale NBS, as highlighted in the recently released Union Budget of 2023. I launched two novel programmes, namely the ‘Mangrove Initiative for Shoreline Habitats and Tangible Income (MISHTI)’ and ‘Amrit Darohar’, to encourage the optimal use of wetlands, build the livelihoods of local communities, and preserve such ecosystems.
Various ecosystem services under NBS, ranging from cultivating climate-resilient crops to restoring and managing wetlands, could help India achieve these targets.
Why NBS (nature-based solutions) are pivots
Nature-based solutions have the potential to meet one-third of the climate mitigation targets needed to meet the goals set under the Paris Agreement, save USD 57 billion in flooding damages every year, and provide additional benefits worth USD 170 billion through a variety of ecosystem services across supply chains and livelihoods, including well-being.
Furthermore, it is suggested that doubling investments could significantly reduce emissions (from 5 GtCO2/year by 2025 to 15 GtCO2/year by 2050), halt biodiversity loss, and restore close to 1 billion hectares of degraded land. Moreover, the International Labour Organization (ILO) report suggests that a threefold increase in NBS expenditure could generate approximately 20 million jobs globally.
However, the funding currently flowing into NBS is abysmal in India and globally. The State of Finance for Nature, released by the United Nations Environment Programme (UNEP), identified that only USD 154 billion annually is being invested in NBS globally. The private sector’s contribution constitutes only 17 percent of the total amount.
The following are some steps that can help create an enabling environment to channel investments towards NBS:
Establishing a research and development (R&D) cell for NBS:
The primary reason for the lack of investment in NBS is the lack of empirical science-based evidence and data to represent the economic benefits of implementing NBS. Investors require a clear understanding of a project’s risks and returns. However, due to the complex socio-economic nature of such solutions, it is often difficult to map out and measure the different benefits of NBS.
A dedicated Research and development (R&D) cell will help stakeholders in both the private and public sectors identify the risks and returns associated with projects involving NBS, thus encouraging and driving more investments in this sector. Additionally, this cell could create a repository of best practices and implementable case studies, which can be demonstrated at an international level and adopted by other countries in their local context.
Establishing a monitoring unit for NBS:
Around 94 percent of NBS’s current investments in India originate from different sources within the government, while private initiatives account for merely 3.6 percent.
Thus, a decentralized monitoring unit needs to be established based on the guidelines by the central government that tracks the public and private spending on NBS, which will ensure transparency and accountability, and enhance the understanding of investments towards NBS in India. Moreover, the monitoring unit must also define state-specific reporting and response mechanisms for identified issues concerning NBS.
Providing technical assistance grants:
The government could set up an executive committee under the MoEFCC that can review and provide grants to build the technical capacity of organisations and programmes. Organizations or programmes with either a development model or an innovative strategy to implement NBS while ensuring socio-economic development would be given priority.
Such grants would encourage entrepreneurs to explore the currently under-researched realm of NBS while supporting the ‘Make in India’ programme. They would also invite more private investments and ensure the participation of local communities.
Looking ahead
NBS are apt for India, where a majority of its population still lives in rural and semi-urban areas, living by age-old practices and beliefs in the regenerative power of nature and the ability to stand up to climate resilience, living in mud houses for safety from excessive heat, rains, and natural calamities. Nature and the laws of nature for the majority in our country can act as a safety net for the millions.
This Post was submitted by Climate Scorecard India Country Manager Pooran Chandra Pandey.