Sub National Climate Fund

Source-This post on the Sub National Climate Fund has been created based on the article “Goa to be 1st state to get World Bank climate fund” published in “Times of India” on 20th February 2024.

Why in News?

Recently, Goa became the 1st state to get the World Bank backed Sub National Climate Resilient Green Fund.

About first Sub National Climate Resilient Green Fund

1. Goa’s government has partnered with the World Bank to set up a unique finance facility to strengthen climate resilience.

2. Stakeholders: Under the framework of the Blended Finance facility, the Department of Environment, Government of Goa, has signed Memoranda of Understanding (MoUs) with key financial institutions, including the National Bank for Agriculture and Rural Development (NABARD), the Small Industries Development Bank of India (SIDBI), and the Power Finance Corporation (PFC).

3. The announcement of the Blended Finance facility was made during the 2024 edition of the World Bank’s India Climate and Development Partners’ Meet held in Panaji from February 19 to 21.

4. The fund is being set up as an outcome of 100% renewable energy plan for Goa, which was announced at the G20 Summit.

5. Significance: 
a. This initiative marks a significant step towards accessing and mobilizing concessional finance to implement low-carbon and climate-resilient investments in Goa.
b. This facility is one of the first sub-national facilities of its kind in India. This will serve as a template for other states to adopt at the national level.
c. Key sectors earmarked to benefit from blended finance investments include e-mobility, renewable energy, biodiversity conservation, coastal protection, and green tourism, among others.

About Green Climate Fund

1. The Green Climate Fund (GCF) was set up in 2010 as a financial mechanism under the United Nations Framework Convention on Climate Change (UNFCCC).

2. The GCF mechanism allows funding from developed countries to developing countries to allow them to mitigate climate change and also adapt to disruptions arising from a changing climate.

3. The GCF is based in Incheon, South Korea. It is governed by a Board of 24 members and supported by a Secretariat.

4. The Fund also targets societies that are vulnerable to the effects of climate change, in particular Least Developed Countries (LDCs), Small Island Developing States (SIDS), and African States.

UPSC Syllabus- Environment