ABSTRACT
This chapter illustrates the case for Maharashtra state on the sub-national Climate Finance need as also associated constraints and discusses innovations needed to unlock the same.
Maharashtra is the third-most vulnerable state in India from a climate consideration. Its climate strategy is critical to ensuring a climate aligned national growth. The state is faced with a complex set of climate transition challenges given that it is not only one of the most industrialised states in India but also has a very large agricultural sector as also a very extensive coastline.
Given the current spends, it is clear that significant interventions and innovative frameworks and demand mandates are crucial for attracting requisite private capital. State has the opportunity to use public or philanthropic capital to spur private sector investments related to the state/city’s climate priorities and/or aligned to the SDGs. The chapter discusses instruments such as ‘Infrastructure Investment Trusts’, ‘Debt for Nature Swaps’ and Biodiversity Credits’ that may apply quite well in context of other states of India as well.
Core facets of the effort entails developing specialist institutions with requisite technical capacity and financial resources and empowered to develop pipeline of sustainable, bankable projects that can engage with private funders, helping craft products tailored to the needs of state/cities.
