India

India is a non-Annex I country under the Kyoto Protocol and thus has no binding target for emissions reduction. It is an active participant in the Clean Development Mechanism (CDM) established by the Protocol. It had more than 1,479 registered CDM projects as of February 2014.

In 2010 India released a GHG inventory for 2007 (not officially submitted to the UNFCCC), and stated that it would be the first developing country to publish its emissions inventory in a two-year cycle going forward. In 2012, India published its second commu­nication to the UNFCCC, which includes an emissions inventory for the year 2000. The communication also includes a section on vulnerability assessment and adaptation: it presents climate change projections and impact assess­ments on water, forests, agriculture and human health. Consultations are under­ way for a third communication.

India has pledged to reduce the emissions intensity of its GDP by 20-25% below 2005 by 2025. Efforts include improved energy efficiency, increased use of renewable and nuclear power, expanded public transportation and energy pricing reform.

Rather than integrative binding legislation, India is developing a policy process to specifically target climate change. It adopted a “National Action Plan on Climate Change” (NAPCC) in 2008 outlining existing and future policies and programmes directed at climate change mitigation, adaptation and knowledge management. The focus of the NAPCC is on promoting understanding of climate change, and action on adaptation, mitigation, energy efficiency, and natural resource conservation while pursuing overall economic growth. In 2010, the Ministry of Environment and Forests at the Government of India released India: Taking on Climate Change – Post Copenhagen Domestic Actions, which evaluates the progress of the policies announced in the 2008 NAPCC.

The plan outlines eight national missions, which include the National Solar Mission, the National Mission for Enhanced Energy Efficiency, and the National Mission for a Green India (focused on the increasing of forest cover), as well as the National Mission on Strategic Knowledge (aiming at establishing a research fund). In addition, it contains the National Water Mission, the National Mission on Sustainable Habitat, the National Mission for Sustaining the Himalayan Ecosystem to help protect India’s water supply and the National Mission for Sustainable Agriculture.

The NAPCC was outlined by the Advisory Council on Climate Change, which is chaired by the Prime Minister and was reconstituted in November 2014. The Advisory Council has broad-based repre­sentation from key stakeholders, including government, industry and civil society and sets out broad directions for national actions in respect of climate change. The Council provides guid­ance on matters relating to co-ordinated national action on the domestic agenda and review of the implementation of the NAPCC including its R&D agenda.

The Council also provides guidance on matters relating to international negotiations including bilateral and multi­lateral programmes for collaboration, research and development. It is responsible for undertaking periodic reviews and annually reporting on the Missions’ progress. A secretary-level Executive panel assists the Advisory Council and regularly monitors the implementation of the eight missions and strengthens inter-ministerial co-ordination.

Four new missions were announced under the NAPCC in 2014, and are pending the approval of the Prime Minister’s Council on Climate Change – the National Wind Energy Mission; the National Human Health Mission; the National Coastal Resources Mission, and the National Waste-to-Energy Mission.

In 2012, the government approved the 12th Five-Year Plan for 2012–2017, which sets a target of 8.2% growth during that period. The Plan makes clear that high growth requires supporting growth in energy and that the government must take steps to reduce the energy intensity of production processes and also to increase domestic energy supplies as quickly as possible. The government has set up an Expert Group on Low Carbon Strategy for Inclusive Growth with the mandate to develop a roadmap for low carbon development. It recommended actions in sectors such as electricity, transportation, industry, oil and gas, buildings, and forestry, which are a central part of the Plan.

The government plans to develop 60 cities as solar cities during the 11th Five-Year Plan and include more during the 12th Five-Year Plan. Sanctions have been issued for 48 Cities and the master plans have been prepared for 44 cities, of which seven have been approved in principle by the Ministry of New and Renewable Energy for implementation. This includes preparation of a master plan to increase energy efficiency and renewable energy supply in the city, targeting a minimum 10% reduction in projected demand of conventional energy at the end of five years. This includes setting up institutional arrangements for the implementation of the master plan and awareness generation and capacity building activities.

In 2010, The Indian Network for Climate Change Assessment (INCCA) released a “4X4” assessment of the impacts of climate change on four sectors – water resources, agriculture, forests and human health – in four critical regions of India – the Himalayan region, the North East, Western Ghats and Coastal India. INCCA comprises 127 research institutions tasked with undertaking research on the science of climate change and its impacts on different sectors of the economy across the various regions of India. The Indian Space Research Organisation (ISRO) plans to launch a satellite to monitor GHG emissions later in 2015. Under the new Government elected in 2014, the Ministry of Environment and Forests has become the Ministry of Environment, Forests and Climate Change. In the COP20 in Lima in December 2014, the Indian Minister, Prakash Javadekar, announced that in ‘the next budget session (India is) going to introduce comprehensive climate legislation’.

Carbon Pricing

In 2010, India created the National Clean Energy Fund, to finance and promote clean energy initiatives and fund related research. The corpus of the fund is built on a levy on coal, originally set at the rate of INR50 (USD0.81) per tonne, which will apply to both domestically-produced and imported coal. In order to increase the size of the National Clean Energy Fund (NCEF), the levy has been increased to INR200 (USD3.22) per tonne in the 2015 budget. This money will go into a National Clean Energy Fund that will be used for research, innovative projects in clean energy technologies and environmental remediation programmes. Until late 2014, Viability Gap Funding of INR165.11bn (USD2.66bn) has been recommended from the NCEF for 46 projects.

Energy demand

India’s cabinet approved the National Mission on Enhanced Energy Efficiency (NMEEE) in 2010. The Mission includes several new initiatives – the most important being the Perform, Achieve and Trade (PAT) Mechanism, which will cover facilities that account for more than 50% of the fossil fuel used, and help reduce CO₂ emissions by 25m tonnes per year by 2014–2015.

A number of regulations and incentives promote energy efficiency and the use of renewable energy, at the Federal and the State levels. These include a revision in 2007 of the Energy Conservation Building Code that sets minimum requirements for building envelope components, lighting, HVAC, electrical systems and water heating and pumping systems.

The Government has approved National Mission on Enhanced Energy Efficiency (NMEEE) in August 2014 with an outlay of INR7.75bn (USD125m). It will enhance investments for better technology, creation of a venture capital with partial risk guarantee fund, appliance rating system and notification of a new building code for energy conservation.

Energy Supply

The Electricity Act 2003 sought to better co-ordinate development of the power sector and to promote efficient and environmentally benign policies. The Act recognises the role of renewable energy in the country’s National Electricity Policy (issued in 2005) and contains key provisions relating to renewable energy. This Act was supplemented by the 2006 National Tariff Policy, which stipulates that the targets for the Solar RPO (Renewable Purchase Obligation) shall be 0.25% by 2012-13 extending to 3% by 2022, which would require 34GW of installed solar capacity by 2022. The government has announced that it will raise the country’s target for solar power five-fold from 20GW to 100GW by 2022. There are separate RPOs for other renewable sources.

The 2006 Integrated Energy Policy that received Cabinet approval in 2008 aims to meet energy demand “at the least cost in a tech­nically efficient, economically viable and environmentally sustainable manner”. It contains a number of policies that contribute to avoiding GHG emissions.

In 2007, the cabinet proposed an indicative target of 20% blending of biofuels, both for biodiesel and bioethanol, by 2017. A National Policy on Biofuels outlining the same target was approved in 2009. In order to avoid a conflict between energy security and food security, the policy promotes only fuels derived from non-edible plants, in waste, degraded or marginal lands. The policy offers farmers and cultivators a minimum support price for non-edible oil seeds, as well as a minimum purchase price for fuel.

The National Solar Mission is a large-scale solar energy programme that runs from 2010 to 2022 and promotes electricity generation from both small- and large-scale solar plants. Presently, wind farm projects qualify for Generation-Based Incentives (GBI) and a tax holiday as infrastructure projects, but accelerated depreciation under the Income Tax Act has been withdrawn from the 2013-14 Budget. Lots of local projects are also being implemented such as the Solar Photovoltaic Programme, the Solar Water Heating System Programme and the Village Electrification Programme.

Budget outlay for renewables has been increased by 65.8% (including direct hike in solar financing by INR10bn (USD161m) primarily for solar water pumps and setting up of ultra-modern solar power projects. The anti-dumping duty issue has been resolved as well with an impetus on “Make in India” solar manufacturing, and a priority for domestic content.

The government has also restored accelerated depreciation benefit to wind-power developers to ramp up wind generation capacity. Ad-hoc termination of this benefit in 2012 resulted in a nearly 50% fall in capacity installations in 2013. New directives from the Prime Minister’s office have announced a target for wind-power of 65GW by 2022.

Other regulatory moves such as amendments to the Electricity Act 2003 and tariff policy have been finalised, allowing for the next wave of reforms such as competition in retail and Renewable Purchase Obligations (RPO) enforcement.

In September 2014 the minister of power, coal and renewable energy said the country is looking to invest USD100bn in renewable energy over the next five years; additionally, it was announced that 8,000-10,000MW of wind power can be generated per year. In 2013, A ‘Green Energy Corridor’ was announced, with USD7.9bn set aside to facilitate flow of renewable energy into the national grid. Various initiatives taken include: allocation of INR1bn (USD16.1m) for the development of 1MW Solar Parks on the banks of canals; allocation of INR4bn (USD64.5m) for launching a scheme for solar power driven agricultural pump sets and water pumping stations.

REDD+ and LULUCF

The National Mission on Sustainable Habitats (NMSH) was approved as one of the eight National Missions under the Prime Minister’s National Action Plan on Climate Change (NAPCC). A comprehensive strategic plan is being drafted to implement it.

The National Mission for Green India (GIM), also one of the eight National Missions under NAPCC, is being finalised. It aims to double the area to be taken up for afforestation/eco-restoration in the next 10 years, taking the total area to be afforested or eco-restored to 20m ha. This would increase the above and below ground biomass in 10m ha of forests/ecosystems, resulting in increased carbon sequestration of 43m tonnes CO₂-equivalent annually.

In 2012, India held a national consultation on the preparedness for REDD+. A Technical Group has been set up to develop methodologies and procedures to assess and monitor REDD+ actions. Additionally, a National REDD+ Co-ordinating Agency has been approved in principle and methodologies for National Forest Carbon Accounting are being institutionalised.

A high level committee is currently reviewing environmental laws including the Forest (Conservation) Act of 1980 and the Indian Forest Act of 1927.

Adaptation

India’s population depends greatly on climate sensitive sectors – agriculture and forestry – for its livelihood. India’s climate risk assessment in the second communication to the UNFCCC states that climate change, leading to recession of glaciers, decrease in rainfall and increased flooding, could threaten food and water security; put at risk natural ecosystems including species that sustain the livelihood of rural households; and adversely impact the coastal system due to sea-level rise and increased extreme events.

A National Adaptation Fund was set up in July 2014 to address the impacts of climate change and to develop climate resilient agriculture. INR1bn (USD16.1m) has been allocated for the “National Adaptation Fund” for climate change. India’s National Bank for Agriculture and rural development (NABARD) has been accredited as a national implementation entity for the adaptation fund created by the UNFCCC.  The National Mission for Sustaining the Himalayan Ecosystem focuses on evolving suitable management and policy measures to sustain and safeguard the Himalayan glacier and mountain ecosystem.

Sub-National Activities

All Indian States have to prepare State Action Plans for Climate Change (SAPCCs) in line with the objectives of the National Action Plan on Climate Change (NAPCC) and ensure its implementation at state level. As of the end of 2014, 27 states and 4 Union Territories have prepared plans; the National Steering Committee on Climate Change has endorsed the SAPCCs of nine states (Andhra Pradesh, Arunachal Pradesh, Madhya Pradesh, Manipur, Mizoram, Rajasthan, Sikkim, Tripura and West Bengal. The SAPCCs of Assam, Meghalaya and Orissa are being considered by the Expert Committee on Climate Change. Other states are at various stages of preparing the SAPCCs.

State governments are preparing State-specific Action Plans on Climate Change, which draw upon the National Action Plan and operationalise state-level measures in mitigation and adaptation. Delhi became the first state to complete and launch their Action Plans. Most other States are finalising their Action Plans.