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1、Unlocking Private Sector Investment into Natural Climate Solutions in IndiaW H I T E P A P E RJ U LY 2 0 2 4In collaboration with the Confederation of Indian Industry(CII)and IORA Ecological SolutionsImages:Getty Images 2024 World Economic Forum.All rights reserved.No part of this publication may be

2、 reproduced or transmitted in any form or by any means,including photocopying and recording,or by any information storage and retrieval system.Disclaimer This document is published by the World Economic Forum as a contribution to a project,insight area or interaction.The findings,interpretations and

3、 conclusions expressed herein are a result of a collaborative process facilitated and endorsed by the World Economic Forum but whose results do not necessarily represent the views of the World Economic Forum,nor the entirety of its Members,Partners or other stakeholders.Unlocking Private Sector Inve

4、stment into Natural Climate Solutions in India2ContentsPrefaceExecutive summaryIntroduction1 Global and national context for investment in natural climate solutions1.1 NCS in climate action strategies1.2 Current scale of global investments in nature-based solutions1.3 NCS in the Indian context1.4 Po

5、licy and market environment for NCS in India2 Corporate insights on NCS investments in India2.1 The business case for investing in NCS2.2 Corporate NCS preferences2.3 Sectoral NCS preferences2.4 Barriers to scaling-up NCS investments in India2.5 Opportunities to increase NCS investments in India3 Re

6、commendations for tackling barriers to unlock greater investment in NCS3.1 Clarity on regulations and standards3.2 Collaboration with government3.3 Sourcing high-quality NCS projects with strong MRV3.4 Strengthening the business case3.5 The way forward:Unlocking private sector investment in NCSConcl

7、usionAnnexesA1 Policy instruments driving investment in NCS in IndiaA2 National commitments by sector,associated policies and relevance for NCS investmentsA3 Policy recommendationsContributorsAcknowledgementsEndnotes45788910111415161719212325272830313233333436373738Unlocking Private Sector Investmen

8、t into Natural Climate Solutions in India3PrefaceThis white paper presents findings from a collaborative study by the World Economic Forum,the Confederation of Indian Industry and IORA Ecological Solutions,focusing on the evolving landscape of natural climate solutions(NCS)investments among Indian c

9、orporations.The report delves into the landscape of NCS investments in India,dissecting challenges,opportunities and actionable recommendations.Surveying a sample of the countrys largest companies,the findings reveal a robust commitment to sustainability:89%have dedicated strategies while nearly hal

10、f have adopted net-zero goals.Notably,70%have incorporated NCS into their commitments,investing in afforestation,reforestation and ecosystem restoration.In a context of rising socio-economic risks from the dual climate and biodiversity crises,NCS emerge as a vital strategy.A great majority of respon

11、dents(86%)agree there is a business case for NCS investments,citing carbon sequestration for net-zero goals,improving brand reputation and increasing business resilience.However,private sector investments lag,with a$161.9 billion(13,500 billion)funding gap projected for the forestry sector alone by

12、2030.Barriers include unclear regulatory frameworks,land ownership complexities and the need for high-quality projects.Nevertheless,in addition to international commitments under the Paris Agreement and the United Nations to create additional carbon sinks and restore 26 million hectares,India is dev

13、eloping new instruments such as the regulatory carbon market and the Green Credit Programme(GCP).These instruments have caught the attention of major companies,with around 79%of respondents indicating that clear guidelines on the GCP,for example,would influence their decision to increase investments

14、 in NCS.This provides a timely opportunity for India to embrace standardized protocols,policy clarity and avenues for public-private partnerships to enhance the effectiveness of NCS and incentivize further nature-positive corporate investments.In conclusion,the findings of this report reveal a trans

15、formative phase in corporate attitudes towards NCS investments in India.The opportunities are vast and,with strategic interventions,the private sector can emerge as a significant contributor to Indias climate,biodiversity and land restoration commitments.Policy-makers,businesses and civil society mu

16、st collaborate to unlock the full potential of NCS,creating a sustainable future for India and the planet.Nicole Schwab Director,1t.org;Co-Head,Nature Positive Pillar,World Economic ForumUnlocking Private Sector Investment into Natural Climate Solutions in India July 2024Unlocking Private Sector Inv

17、estment into Natural Climate Solutions in India4Executive summaryAt a time when$44 trillion of the global economy is at risk from nature loss,1 natural climate solutions(NCS)represent a key strategy to address the dual crises of climate change and biodiversity loss and strengthen the resilience of t

18、he worlds socio-economic systems.NCS encompass a range of actions aimed at safeguarding,conserving,restoring and sustainably managing terrestrial,freshwater,coastal and marine ecosystems while providing livelihood benefits.NCS could deliver up to one-third of the net emission reductions required by

19、2030.2 This is particularly critical as climate-related risks could cost India 6.4%of its GDP annually at 2C of global warming,rising to over 10%at 3C by 2100.3 The prolonged economic effects of climate change also risk increasing Indias national poverty rate by 3.5%in 2040,equivalent to around 50 m

20、illion more people living in poverty.4 With an estimated 30%of forestland in India considered degraded,the great majority of which is due to vegetation degradation,5 NCS emerge as a comprehensive solution,providing benefits for ecology,people and the planet by focusing on conservation and restoratio

21、n efforts.In this context,India has made international commitments under the Paris Agreement and the United Nations Convention to Combat Desertification(UNCCD)to create an additional sink of 2.5 to 3 billion tonnes of carbon dioxide-equivalent(CO2e)through additional forest and tree cover and to res

22、tore 26 million hectares of degraded land by 2030.6 However,as is the case globally,current investments in NCS in India are largely public-sector driven and fall short of what is needed.One estimate suggests that India needs to spend$9.36 billion every year until 2030,to fulfil its nationally determ

23、ined contributions in the forestry sector,while actual public spending on forests averaged an estimated$1.75 billion per year over the period 2012-2017.7 Closing this funding gap will entail a significant increase in public and private sector investments in this area.To better understand the potenti

24、al of private sector investment in NCS in India,research conducted for this report surveyed a sample of the countrys largest companies,in partnership with the Confederation of Indian Industry(CII).Findings reveal a strong commitment to sustainability among surveyed companies:89%of respondents have a

25、 sustainability strategy and nearly half have a net-zero strategy.Meanwhile,about 70%have integrated NCS into their corporate commitments,which include investments in afforestation,reforestation,and ecosystem restoration of forests,grasslands,wetlands and mangroves,as well as agricultural land manag

26、ement.The great majority of respondents(86%)agree there is a business case for NCS investments,citing factors such as carbon sequestration for net-zero goals,enhancing brand reputation and strengthening business resilience.However,only 39%consider the mitigation of residual greenhouse gas emissions

27、an investment driver,while just four out of the 56 respondents(7%)are currently generating carbon credits from their NCS investments.Furthermore,for most respondents(62%),investments currently come from corporate social responsibility(CSR)budgets,with 35%indicating that they invest in NCS to meet na

28、tional or global mandatory regulatory requirements.This suggests that while companies recognize the potential business case outside CSR investments,this has yet to fully translate into investment decisions.Furthermore,75%of companies face challenges in NCS implementation,including 71%citing the abse

29、nce of standardized monitoring methodologies,while more than half have encountered land ownership complexities(55%)or insufficient site-specific information(53%).Nevertheless,over 90%of respondents plan to increase their NCS investments either significantly or moderately over the next five years,54%

30、mention they plan to start or increase their purchase of forest carbon credits in the next five years,while one third remains uncertain about their course of action.Climate risks could cost India 10%of GDP annually at 3C of warming.Companies can play a critical role in tackling these risks by increa

31、sing investment in natural climate solutions.Unlocking Private Sector Investment into Natural Climate Solutions in India5Snapshot of survey on corporate attitudes to natural climate solutions(NCS)39%86%say there is a businesscase for NCS investmentssay mitigating residual GHGemissions is an investme

32、nt driver7%are generating carbon creditsfrom their NCS investmentsFour categories of challenges emerge from the research that represent barriers to investment,which if addressed could influence corporate decisions to scale-up investment:1.Clarity on regulatory frameworks that enable NCS investments,

33、including the Indian governments Green Credit Programme(GCP),as well as the compliance and voluntary carbon markets,where companies need more information regarding the issuance,ownership and international transfer of carbon credits.2.Support from the government in navigating the complexities of land

34、 ownership and opportunities for multi-stakeholder partnerships,including with state governments.3.Availability of high-quality NCS projects with strong measurement,reporting and verification(MRV)frameworks.4.A stronger business case to address concerns about uncertain returns on investment,high upf

35、ront costs and a lack of alignment between NCS projects and short-term financial priorities.Table 2,Chapter 3 presents a full set of recommendations proposed by corporate respondents to address some of these challenges in each of the four categories identified above.In summary,as more companies esta

36、blish their climate and sustainability strategies,the drivers of NCS investments are shifting and there is an appetite among companies to better understand how NCS credits can contribute to net-zero goals.Consequently,companies are interested in seizing the opportunities represented by NCS carbon cr

37、edits and other voluntary market-based schemes(such as the GCP),provided these are clear and backed by strong enough incentives.Policy instruments can play a key role to strengthen the business case through compliance measures,voluntary market instruments and emerging corporate reporting requirement

38、s,which lead to inventories of carbon and nature footprints as well as goals to reduce those impacts.In a context of emerging regulation and new instruments in India,including the compliance carbon market and GCP,there is a huge opportunity for standardized protocols and policy clarity to enhance th

39、e effectiveness of NCS.Taken together,these policies along with clear guidance on public-private partnerships could help close the NCS funding gap by unlocking greater private finance towards these goals.As the world navigates the complex terrain of climate action,NCS stand out as a beacon of hope,c

40、alling for concerted efforts from governments,private enterprises and communities alike to unlock their full potential in safeguarding our planet for future generations.Unlocking Private Sector Investment into Natural Climate Solutions in India6IntroductionNatural climate solutions(NCS)represent a c

41、ritical component of a sustainable and climate-resilient future.NCS,defined as nature-based solutions addressing climate change,encompass a range of actions aimed at safeguarding,conserving,restoring and sustainably managing terrestrial,freshwater,coastal and marine ecosystems.NCS could deliver up t

42、o one-third of the net emission reductions required by 2030.Additionally,NCS effectively address social,economic and environmental challenges while concurrently supporting human well-being and providing ecosystem services,resilience and biodiversity benefits.This white paper provides insights and ac

43、tionable recommendations to facilitate private sector investment in natural climate solutions in India,based on an analysis of the regulatory framework,insights from an industry survey and interviews with key stakeholders.The reports primary objective is to offer an understanding of the current regu

44、latory and investment landscape,highlight key opportunities and barriers for NCS investments in India and put forward recommendations to mobilize private sector investments in NCS initiatives within India.The analysis draws on an industry survey,designed and conducted in partnership with the Confede

45、ration of Indian Industry(CII),to better understand corporate sentiment and experiences with NCS investments in India,and how these connect to companies sustainability and net-zero strategies.The survey was sent to a sample of the largest companies in the country and findings draw on answers from 56

46、 companies across 20 diverse industries.The surveys findings were complemented by structured interviews with prominent industry leaders and by a public-private roundtable that provided insights on the initial draft paper for consultation.The report is a collaboration between the World Economic Forum

47、,CII and IORA Ecological Solutions.Each partner brings a wealth of experience,expertise and shared commitment to driving sustainable practices across industry sectors.This collaboration has taken a multi-disciplinary approach to navigate the complexities of NCS investments,ensuring that the insights

48、 presented are both practical and actionable.The report is divided into three chapters as follows:Chapter 1 looks at the global and national context for NCS investments,how these connect to climate action,the current scale of investment,the financing gap and the policy environment for NCS in India.C

49、hapter 2 presents corporate insights on NCS investments garnered through the industry survey and interviews,including perspectives on the business case,as well as barriers and opportunities to scaling NCS investment.Chapter 3 concludes with deeper analysis of areas highlighted by companies and prese

50、nts recommendations,which could provide the basis for discussion to refine multi-stakeholder partnerships and facilitate and incentivize private sector investment in NCS in India.This report presents insights on investments in NCS from interviews with prominent corporate leaders and a survey of 56 c

51、ompanies across 20 industries in India.Natural climate solutions,defined as nature-based solutions addressing climate change,could deliver up to one-third of the net emission reductions required by 2030.Unlocking Private Sector Investment into Natural Climate Solutions in India7Global and national c

52、ontext for investment in natural climate solutions1Of the estimated$542 billion per year needed for nature-based solutions by 2030,the private sector invests just$35 billion.Given over half the worlds GDP is dependent on nature,companies have a major interest in stepping up contributions.Natural cli

53、mate solutions are key to addressing the urgent challenges of biodiversity loss,land degradation and climate change.The Intergovernmental Panel on Climate Change(IPCC)has stated that three of the five most effective strategies for reducing emissions are nature-based:ecosystem protection,nature resto

54、ration and improved farmland management.8 Research suggests NCS could provide up to one-third of the emission reductions required by 2030 to keep global warming within the 2C threshold envisaged by the Paris Agreement.9 Governments globally are acknowledging the potential of NCS by integrating these

55、 solutions into their national biodiversity strategic action plans(NBSAPs),climate targets and land-degradation neutrality commitments.Beyond carbon sequestration,NCS offers a plethora of benefits,including ecosystem protection,climate resilience and land restoration.They also promote shifts in agri

56、cultural and forestry practices to prioritize the conservation of natural capital and associated ecosystem services.NCS fall into three types of actions:protection,management and restoration.NCS in climate action strategies1.1Three types of actions for natural climate solutionsSafeguarding existing

57、natural ecosystems from degradation or conversion.Preserving these ecosystems will ensure continued carbon sequestration while preventing biodiversity loss and the release of stored carbon.ProtectionSustainable use and management of natural resources to ensure that ecosystems continue to function op

58、timally and provide their services.Improved land management practices can enhance carbon sequestration rates while maintaining or enhancing biodiversity.ManagementAssisting the recovery of ecosystems that have been degraded or destroyed,ranging from assisted natural regeneration to afforestation.Res

59、toration activities can bring back lost ecosystem functions,enhance biodiversity and increase carbon storage capacity.Restoration123Unlocking Private Sector Investment into Natural Climate Solutions in India8The latest data shows that total global investments in nature-based solutions(NBS)amount to$

60、200 billion per year,only a third of the funding needed to achieve climate,biodiversity and land degradation targets by 2030.10 When it comes to private sector investment,the gap is even greater,with gross private sector contributions to NBS estimated at$35 billion per year,just 18%of the total,with

61、 governments providing the remaining$165 billion.11 This underscores the scope for significantly increasing financial flows from the private sector.Given that more than half of the worlds GDP($44 trillion)is at risk due to moderate or high dependency on nature,12 the private sectors role in maintain

62、ing functioning ecosystem services cannot be overestimated.Furthermore,annual finance flows from public and private sources that have direct negative impacts on nature are estimated at almost$7 trillion per year,of which$5 trillion or about 5%of global GDP are from private sources.This underscores t

63、he need to realign public and private financing flows from nature-depleting towards nature-restoring activities.Current scale of global investments in nature-based solutions1.2Source:UN Environment Programme$35billionPrivate sector finance for nature-based solutions per year$165billionGovernment fin

64、ance for nature-based solutions per year$542billionInvestment needed in nature-based solutions per year by 2030$5trillionPrivate finance flows with a direct negative impact on natureUnlocking Private Sector Investment into Natural Climate Solutions in India9India plays a key role in the global clima

65、te response.The countrys Paris Agreement goals aim to reduce emissions intensity by 45%from 2005 levels,as well as targeting 40%power capacity from non-fossil fuels by 2030.13 After the energy sector,which represents 69.5%of the countrys greenhouse gas(GHG)emissions,the agriculture,forestry and othe

66、r land-use(AFOLU)sector is the second largest emissions contributor at over 170 million tonnes of carbon dioxide-equivalent(CO2e)per year(5.8%of Indias total GHG emissions in 2018).14India has made important commitments when it comes to land restoration and increasing its forest-based carbon sinks.1

67、5 The updated nationally determined contribution(NDC)commits the country to create an additional carbon sink of 2.5-3.0 billion tonnes of CO2e by 2030 via additional forest and tree cover.The target of protecting,restoring and enhancing 10 million hectares of forest cover under the Green India Missi

68、on16 and the pledge to restore 26 million hectares of degraded land by 2030 under the United Nations Convention to Combat Desertification(UNCCD),are key commitments towards the creation of this additional carbon sink.This is particularly important as India faces unique environmental and socio-econom

69、ic challenges exacerbated by climate change.The nation grapples with threats such as rising sea levels along its 7,500km coastline,receding Himalayan glaciers and erratic monsoon patterns impacting an agriculture sector that employs over half its population.17 Agricultural yields are projected to dr

70、op by 16%by 2030,18 resulting in a predicted decline of 2.8%in overall GDP by 2050.19 With one-third of the economy dependent on nature,a large part of Indias population is vulnerable to climate risks.20The land use,land-use change and forestry(LULUCF)sector,21 which encompasses a major share of NCS

71、,offsets about 12%of Indias GHG emissions.22 This underscores the immense potential and relevance of NCS in India,not just for environmental conservation and tackling climate change but also as a strategic tool for socio-economic resilience.Enhancing investments in NCS can offer significant mitigati

72、on and adaptation benefits.Despite Indias commitments to NCS,current investments fall well short of what is needed as is the case globally.A report in January 2021 by The Energy and Resources Institute(TERI)23 estimated that India needed to spend 60,000 crores*per year($9.36 billion at 2015 prices)u

73、ntil 2030 to attain its forestry NDC target.However,actual annual expenditure from 2012-17 averaged 11,256 crores($1.75 billion),amounting to less than 19%of required funds,leaving a gap of 48,744 crores($7.61 billion)per year.A report by the International Union for Conservation of Nature(IUCN)analy

74、sed investments made in forest restoration efforts in India from 2011-17 and found that 94%of interventions were made by government agencies.24NCS in the Indian context1.3Indias updated NDC commits the country to create an additional carbon sink of 2.5-3.0 billion tonnes of CO2e by 2030 via addition

75、al forest and tree cover.*One crore=10,000,000Unlocking Private Sector Investment into Natural Climate Solutions in India10Indian government policiesPolicy and market environment for NCS in India1.4The Indian government has put in place a number of policies to manage natural resources and regulate i

76、nvestments in natural climate solutions,while more are under development.Table 1 presents an overview of these policies and their objectives including compliance-based regulation mandating companies to invest in NCS,as well as voluntary market instruments.Annex A1 provides more details on responsibl

77、e agencies for each of these policies,as well as examples.They will be analysed further in Chapter 3,in light of the insights gained from the corporate survey on barriers and opportunities for NCS investments in India.Indian government policies supporting investment in NCSTABLE 1Compensatory Affores

78、tation Fund Management and Planning Authority(CAMPA)Under the Compensatory Afforestation Fund Act 2016,the entities responsible for converting forest land for non-forest purposes deposit funds into the compensatory afforestation fund(CAF).The Ministry of Environment,Forest and Climate Change(MoEFCC)

79、oversees the national CAMPA(NCAMPA)at the federal level,while state forest departments manage state CAMPAs(SCAMPAs)at the state level.25 CAMPA funds are primarily used for compensatory afforestation,wildlife management,ecosystem restoration,capacity building and research.The national and state CAMPA

80、 authorities actively monitor and evaluate the utilization of funds to ensure transparency and accountability.The mechanism aims to balance development and environmental conservation by compensating for the loss of forest cover due to land conversion.Green belt regulationIndustries are stipulated to

81、 develop and maintain a green canopy belt to address the environmental impact,pollution and emissions caused by their operations.The green belt refers to a buffer zone of 33%of the project area,within which no industrial activities are to be carried out.As per the stipulations of MoEFCC,greenbelt is

82、 to be provided all along the boundary by planting tall,evergreen trees and the total green area including landscaping area will be about 40%of the project area.26Corporate social responsibility(CSR)Indian corporations fulfilling one of the following criteria net worth over 500 crores,turnover of mo

83、re than 1,000 crores,or net profit of more than 5 crores in the previous financial year are mandated to spend at least 2%of their average net profits towards CSR.Schedule VII of the Companies Act 2013 provides a list of eligible activities that align with the Sustainable Development Goals(SDGs).As s

84、een in the survey for this report,most NCS investments currently originate from CSR budgets.A case study is included in Box 1.Carbon markets compliance and voluntaryA regulatory carbon market is being set up in India to facilitate the compliance of regulated entities with mandated targets.27 Complia

85、nce-based carbon credits are applicable only to the countrys NDCs,except those allowed by the country to be exported internationally as per Article 6 of the Paris Agreement.India has notified 13 sectors from which carbon credits can be exported,including green hydrogen,compressed biogas,carbon captu

86、re and green ammonia.The Indian carbon market is still in its nascent stage and NCS credits are not included in the approved list of project types that can export carbon credits.28 So for now,companies can only use NCS credits to meet their voluntary offset targets or export them to international bu

87、yers through the global voluntary carbon market.Green Credit ProgrammeThe Green Credit Programme(GCP)is currently under development and aims to create a market for a wide range of environmental actions.29 So far,the GCP has been set up for two sectors,water conservation and afforestation.This list w

88、ill be expanded to include waste management,air pollution reduction,mangrove conservation and restoration,eco-mark products and sustainable buildings.Green credits from all these sectors will be issued on an online registry and traded through an online trading platform.Green credits serve as a valua

89、ble incentive within the GCP,rewarding entities for their positive environmental efforts.Their primary objectives include encouraging proactive environmental actions through voluntary tree planting,establishing a readily accessible inventory of land suitable for afforestation programmes,ensuring tra

90、nsparency through an online system and rigorous monitoring,and fostering a greener and more sustainable future.Other policies and subsidiesThere are other government schemes and missions that may incentivize corporate investments in NCS through the promotion of natural and organic farming,watersheds

91、,skilling and training of communities etc.Many of these schemes involve subsidies and concessions(see Annex A2 for more details).Unlocking Private Sector Investment into Natural Climate Solutions in India11International frameworksIn addition,international frameworks facilitating environmental,social

92、 and governance(ESG)reporting are of increasing relevance to Indian businesses.While there is no single global methodology,pertinent frameworks include:Global Reporting Initiative(GRI),30 a multi-stakeholder approach covering the economic,social and environmental aspects of sustainability reporting.

93、International Sustainability Standards Board(ISSB)of the IFRS Foundation31 provides a high-quality global baseline of investor-focused sustainability-related disclosures.The IFRS Foundation has taken over the monitoring of the progress of companies climate-related disclosures from the Task Force on

94、Climate-Related Financial Disclosures(TCFD).Upcoming frameworks such as those being developed by the Taskforce on Nature-related Financial Disclosures(TNFD)are also likely to gain relevance in the coming years,supporting companies in assessing their dependencies on nature and making commitments,incl

95、uding NCS investments,to reduce their nature-related impacts.Biodiversity credits The rapid development of new financial instruments such as biodiversity credits at a global level can also inform the Indian context and relevant opportunities both from a voluntary and compliance perspective.Increasin

96、g awareness of the far-reaching consequences of biodiversity loss for wildlife,people and the global economy has led to a growing sense of urgency to protect nature by both the private and public sectors.On the back of the Kunming-Montreal Global Biodiversity Framework(GBF)signed in December 2022 in

97、 particular Target 19 of the agreement that calls for the mobilization of$200 billion per year32 biodiversity credits have gained momentum as an important and innovative financial instrument to increase the level of financial resources directed towards nature-positive investments.Biodiversity credit

98、s can be described as verifiable and tradeable financing mechanisms that reward positive outcomes from projects through the sale of units of biodiversity gain.They are used to finance activities and projects whose purpose is to protect,restore and/or enhance the biodiversity state in a pre-defined a

99、rea and that result in quantifiable and measurable positive outcomes for biodiversity(e.g.species,ecosystems,natural habitats)and its stewards(e.g.Indigenous people and local communities),through the creation and sale of a biodiversity unit.While regulated markets are emerging around the globe,such

100、as the UKs biodiversity net gain(BNG)policy or the Australian nature repair market,more and more businesses are interested in this voluntary instrument as a way to complement their transition efforts and their nature strategies.Drivers of biodiversity credits are mostly related to access to the corr

101、esponding ecosystem services that these conservation and restoration projects allow.However,despite clear linkages with corporate impacts and dependencies,biodiversity credits are currently seen as distinct from biodiversity offsets.While both encourage a nature-positive approach,offsetting requires

102、 a localized approach that should be subject to tailored regulation by local governments to ensure the highest integrity(rather than through voluntary corporate action).This is needed to avoid any perception that such offsets could represent a right to adversely impact natural ecosystems.The success

103、 of biodiversity credits markets will depend on their ability to provide clear proof of their positive environmental and social impacts,avoiding some of the pitfalls that carbon markets have faced.This requires the definition of common integrity frameworks,buyers codes of conduct,and generally accep

104、ted metrics and measurement systems to compare different approaches across ecosystems.Notwithstanding the importance of these governance elements,leadership from the private sector in testing and piloting new approaches will be important in the coming years to ensure that these markets deliver on th

105、eir promises.Unlocking Private Sector Investment into Natural Climate Solutions in India12Mahindra Groups tree planting initiative:Project Hariyali a natural climate solution funded through corporate social responsibilityBOX 1Project Hariyali is Mahindra Groups flagship afforestation programme,launc

106、hed in the state of Andhra Pradesh in 2007.Its vision is to improve Indias green cover,halt the rising ecological imbalance,create an environmentally conscious citizenry and a carbon sink.It is an example of a CSR-funded natural climate solution investment designed to deliver ecological and socio-ec

107、onomic benefits to the communities involved.Objectives Create functional forests for tribal communities by planting varieties of fruit,forest and shade trees.Convert degraded landscapes into multi-use landscapes,improving food security and generating additional income for communities.Employ internat

108、ional standards for natural resource management and organic farming protocols to increase community incomes.Improve agricultural ecosystems and support overall improvements in quality of life.Implementation modelImpact in numbers Over 24 million trees planted in India with a survival rate of 85%over

109、 the last 15 years.Covers 295 villages.Supports the livelihoods of more than 25,000 tribal farmers.Estimated carbon sequestered:153,000 tonnes of CO2-equivalent.33 Impact storyThe project has made a significant impact on the livelihoods of tribal communities in the Araku valley of Andhra Pradesh.Fru

110、it trees planted with the help of the tribal community have provided soil nutrients and shade to enhance the quality of the coffee they grow.This product has become famous as“Araku coffee”and is appreciated by connoisseurs as far away as in France and Ireland.Mahindra worked closely with the communi

111、ties to develop a holistic programme based on bio-dynamic farming,which helped them secure premium prices for their product.The tribal communities revere these trees and treat them like family.This leads to a virtuous cycle of increased community engagement,greater tree plantation,higher survival ra

112、tes and increased income for the community a remarkable example of working in tandem with nature and communities to achieve better outcomes.Community engagement and identification of native speciesPlanning and procurementPreparation of landand trainingMonitoring through trained local youthSources:Ma

113、hindra Group,Field Actions Science Reports,India CSR34Unlocking Private Sector Investment into Natural Climate Solutions in India13Corporate insights on NCS investments in India2While most companies agree there is a business case for investing in NCS,most invest under$1 million.Barriers to scaling-u

114、p include an absence of standard impact metrics,land ownership complexities,poor site-specific information and lack of regulation.To better understand the drivers of corporate investment in NCS in India,the World Economic Forum conducted an industry survey in partnership with CII.The survey was sent

115、 to 222 leading Indian companies,including large conglomerates as well as subsidiaries of major international corporations.A total of 56 companies responded,with good representation across industry sectors(see Figure 1)and operations spanning all Indian states.Industrial sectors represented by respo

116、ndents to corporate surveyFIGURE 1AgricultureAuto&auto componentsBanking&investmentEnergy,renewable energy,oil and natural gasManufacturing13%11%5%34%43%0102030405060708090100Note:totals add up to more than 100%as respondents include conglomerates that represent more than one industry sector.Unlocki

117、ng Private Sector Investment into Natural Climate Solutions in India14The business case for investing in NCS2.1The survey reveals a noteworthy commitment to sustainability and net-zero goals among the companies that responded:89%affirm that their companies have established a sustainability strategy,

118、with 49%reporting the presence of a dedicated net-zero strategy.Meanwhile,70%indicate they have integrated NCS into their corporate sustainability commitments.For 21%of respondents,however,NCS have not yet found a place within corporate commitments,highlighting that there is still work to be done in

119、 terms of mainstreaming NCS across the business landscape(see Figure 2).86%agree there is a business case for investing in NCS and 70%have integrated NCS into their corporate sustainability commitments.Respondent companies that have integrated NCS into corporate sustainability commitments(%)FIGURE 2

120、Furthermore,86%of respondents agree that there is a business case for investing in natural climate solutions.The top reasons cited by these companies are as follows:To invest in carbon sequestration to meet net-zero goals(73%):For companies on a science-based decarbonization pathway,NCS investments

121、can serve to counterbalance unabated emissions on the journey to net zero and neutralize residual emissions.NCS projects can also deliver significant ecosystem services and other co-benefits beyond carbon sequestration,such as improved livelihoods for participating communities.To improve brand reput

122、ation(64%)and elevate ESG ratings(64%):Investing in NCS can provide the impetus for companies to position their brands and improve their sustainability indicators and ESG ratings.An improved brand image also helps companies become a more attractive employer for top talent.To increase business resili

123、ence(54%):Companies with supply chains linked to natural ecosystems can derive benefits from protecting and restoring degraded ecosystems to improve and maintain natural functionalities and ecosystem services,thereby mitigating financial risk associated with nature loss.About one-fifth of companies

124、also indicate that NCS investments enhance customer loyalty(associated with improved brand reputation),save costs through supply chain risk mitigation and have the potential to create new revenue streams.Although most companies agree there is a business case,62%of respondents indicate that their NCS

125、 investments come out of their corporate social responsibility budgets,while 75%engage in NCS investments as part of their voluntary commitments and strategies.Only 35%indicate that they invest in NCS to meet national or global mandatory regulatory requirements.YesNoIn progressUnder consideration7%2

126、%70%21%Unlocking Private Sector Investment into Natural Climate Solutions in India15While two-thirds of respondents mention net-zero goals as part of the business case,only 37.5%cite the mitigation of residual greenhouse gas emissions as an investment driver and just four out of the 56 respondents(7

127、%)are generating carbon credits from their NCS investments.Half of respondents(48%)indicate they are considering this but have not generated any credits yet,suggesting a number of barriers still need to be addressed to move from awareness and intention to action.It is noteworthy that a majority of N

128、CS investments(57%)are relatively small-scale,with investments of less than$1 million(see Figure 3).Half the companies(27 out of 56)say they are considering generating carbon credits from their NCS investments,but just four have done so.Scale of investment in NCSFIGURE 3Corporate NCS preferences2.2C

129、ompanies prioritize different types of NCS interventions in different land-use contexts(respondents could choose more than one type):82%of respondents are investing in afforestation and reforestation initiatives.45%prioritize afforestation or reforestation on degraded common land.37.5%are investing

130、in forest land.34%are investing agricultural land.34%are contributing to urban forests,acknowledging the role of urban green spaces in climate action.Within agricultural land management,the companies are primarily focusing on improved water and irrigation management(64%),improved fertilizer applicat

131、ion(34%),improved crop residue management(31%)and to a lesser extent improved grazing management(7%).More than two-thirds of respondents are investing in ecosystem restoration initiatives primarily forest restoration projects(64%),but also wetlands(30%)and to a lesser extent grasslands(11%).Two-thir

132、ds of respondents indicate their interventions cover conservation activities(of forest,wetland or mangrove ecosystems).These endeavours signify a growing recognition of the importance of rehabilitating and protecting ecosystems to combat climate change and restore biodiversity.These investments coll

133、ectively highlight a substantial commitment to enhancing agricultural practices for environmental sustainability.This is interesting considering the following:About 26%of land in India is suitable for agroforestry initiatives,including tree plantations on boundaries,agri-horti-forestry35 and farm fo

134、restry.This amounts to 87 million hectares of land that meet the criteria for agroforestry,with less than 40%tree cover density and a population density of under 400 people/km2.36More than two-thirds of respondents are investing in ecosystem restoration primarily forest restoration(64%),but also wet

135、lands(30%)and grasslands(11%).Less than$1 million$1 million to$5 million$5 million to$10 millionMore than$10 million11%57%23%9%Unlocking Private Sector Investment into Natural Climate Solutions in India16 Around 10%of land in India is suitable for broad-scale restoration(afforestation or forest rest

136、oration covering large areas of land).This corresponds to 33.6 million hectares with over 40%tree cover density and a population density of under 200 people/km2.37 Over 37 million hectares of degraded land are classified as unirrigated agricultural land,suitable for agricultural land management prac

137、tices.38When it comes to partnerships,61%of companies choose to implement NCS initiatives within their operational areas and nearby regions and 62%partner with local communities including farmers and Indigenous populations.Other partners include forest departments(for 43%of respondents),state govern

138、ments(39%)and gram panchayats or village councils(39%),highlighting the significance of local governance structures,especially in the context of rural and community-based NCS projects.A smaller cohort(25%)chooses to collaborate with specialized NCS providers.Sectoral NCS preferences2.3The companies

139、surveyed are major players in their field and it has therefore been possible to identify some sectoral trends.However,it is important to note that survey respondents represent leaders when it comes to sustainability and NCS investments,so the comments below may not be applicable to the sector as a w

140、hole.Agriculture sectorAmong survey respondents,the agriculture sector incorporates NCS into its sustainable supply chain management by emphasizing sustainable farming and agroforestry.These efforts are primarily funded through CSR allocations,bolstered by regulatory requirements and organizations b

141、iodiversity commitments.Two respondent organizations in this sector are actively engaged in NCS projects,focusing on sustainable farming and afforestation,with key performance indicators(KPIs)related to soil health,biodiversity enhancements,increased water availability,reduced flooding incidents and

142、 improved livelihoods.Unlocking Private Sector Investment into Natural Climate Solutions in India17Auto and auto component sectorWithin the auto and auto component sector,NCS play a vital role in achieving net-zero commitments.Organizations in this sector favour afforestation across agricultural,com

143、munity and forest land areas,while they also prioritize ecosystem restoration within natural wetlands and forests.Respondents indicate that collaboration with state governments and gram panchayats is common for NCS implementation.However,challenges arise from regulatory requirements,land availabilit

144、y issues and ownership conflicts.Banking and investment sectorIn contrast,the banking and investment sector has yet to include NCS in its sustainability commitments.Among the companies that have made NCS investments,the focus is primarily on sustainable farming and forest restoration.One bank stands

145、 out for providing loans to farmers for sustainable farming.Despite the potential,limited investments are observed and respondents highlight regulatory challenges and difficulties in documenting benefits.Energy,renewable energy,oil and natural gas sectorThe energy,renewable energy,oil and natural ga

146、s sector highlights the integral role of NCS in its sustainability and net-zero strategies.NCS methods are closely tied to business operations,with a strong emphasis on enhancing brand reputation,business resilience and carbon sequestration to meet net-zero commitments.Despite having a strong busine

147、ss case,CSR funds are the primary source(62.5%)for investments and focus on socio-economic benefits to local communities,while only two companies claim to have invested in NCS for carbon credit benefits.High upfront costs and uncertainty around the advantages of NCS are highlighted as significant ch

148、allenges.Manufacturing,metals and mining,and cement sectorIn the manufacturing,metals and mining,and cement sector,around half the companies commit to NCS as part of their sustainability and net-zero efforts.These companies actively implement NCS,focusing primarily on afforestation and forest and we

149、tlands restoration.These NCS initiatives are predominantly funded through CSR allocations to meet regulatory requirements for greenbelt development and water neutrality.One company is also promoting bamboo plantations as an NCS initiative to fulfil its fuel requirements for cement production.Unlocki

150、ng Private Sector Investment into Natural Climate Solutions in India18Barriers to scaling-up NCS investments in India2.4Investment decisions in NCS differ from usual corporate investment processes,because NCS projects entail complex multi-stakeholder environments with different risk profiles and les

151、s standardization in terms of costs and monitoring,compared to other infrastructure investments.This presents significant challenges,as confirmed by our survey findings(see Figure 4).Three-quarters of respondents encounter obstacles in the implementation of NCS,with the top challenges outlined below

152、.The absence of standardized methodologies for NCS monitoring and reporting is cited as a challenge by 71%of respondents,including the lack of a well-defined,standardized and universally accepted set of measurement criteria for outcomes arising from NCS projects.This absence of standardization acros

153、s impact metrics means that corporate claims on benefits are fraught with uncertainty.The absence of standardized impact metrics means that corporate claims on benefits are fraught with uncertainty.Land ownershipLand availability and ownership complexities are cited as a challenge by 55%of responden

154、ts,linked to complex governance and ownership models prevailing in the country across government,private and community stakeholders.The consequence is that procurement of or collaboration on NCS projects becomes equally complex.Site-specific informationLack of site-specific information for NCS plann

155、ing and implementation at national and state level is cited as a challenge by 54%of respondents.Lack of defined and stakeholder-specific information is a major constraint on boosting the involvement of the private sector in developing NCS.This includes information on the risks and benefits of NCS in

156、terventions for investors and local communities.Additional challenges include a dearth of regulations or policies for NCS implementation in forest areas(cited by 41%)and transparency around NCS implementation and benefit-sharing in relation to state-level policies(cited by 20%).Challenges faced by r

157、espondents in implementing NCSFIGURE 401020304050607080Lack of availability of standardized and commonly accepted methodologies for NCS progress monitoring and reportingLack of land availability for NCS,unclear land ownership and/or diversion of allocated land for other purposesLack of availability

158、of site-specific information for NCS planning and implementation at national and state levelLack of regulation or policies at federal and state level for NCS implementation in forest areasState level policies are available but transparency for NCS implementation and benefit-sharing is not available7

159、1%55%54%41%20%Unlocking Private Sector Investment into Natural Climate Solutions in India19This data suggests that while climate action is increasingly becoming part of the Indian governments agenda,the process of integrating NCS into legislation is yet to be fully embraced.While India has different

160、 legislations and policies pertaining to different aspects of nature,NCS cut across all these legislations and policies;hence,lack of legislative clarity creates ambiguity regarding its development.For example,there is no explicit policy guidance available in India on the participation of the privat

161、e sector in NCS,including rules on the transfer of carbon credit ownership or public-private partnership models for forestry.When it comes to scaling-up or investing in NCS,by far the biggest barrier cited by 71%of respondents is the absence of a clear regulatory framework and the complexity of exis

162、ting regulations(see Figure 5).Almost half of respondents identify the limited availability of high-quality NCS projects,uncertain returns on investment and limited access to funding or financial incentives as key barriers.Additional concerns include the timeframe of NCS investments not aligning wit

163、h short-term financial priorities(30%),lack of awareness and expertise within the organization(27%)and high upfront costs(23%).When it comes to scaling-up or investing in NCS,by far the biggest barrier cited by 71%of respondents is the absence of a clear regulatory framework and the complexity of ex

164、isting regulations.Barriers faced by respondents in scaling-up investment in NCSFIGURE 501020304050607080Lack of clear regulatory framework/complex regulatory environmentLack of availability of high-quality NCS projectsUncertain return on investmentLimited access to funding or financial incentivesTi

165、meframes of NCS investments are not compatible with short-term financial priorities71%48%45%45%30%Lack of awareness and expertise within the organization27%High upfront costs23%Deeper inquiry by researchers into corporate knowledge about respective regulatory environments reveals that only 14%of res

166、pondents say they are aware of the policies that support NCS implementation in their states of operation.Half the respondent companies rely instead on the support and collaboration of local entities.This underscores the need for heightened corporate awareness and understanding of national and state-

167、level NCS policies,to support successful NCS investments and implementation.Unlocking Private Sector Investment into Natural Climate Solutions in India20Opportunities to increase NCS investments in India2.5Despite these implementation challenges and perceived barriers to investment,over 90%of corpor

168、ate respondents plan to either significantly or moderately increase their NCS investments over the next five years.What is more,54%of respondents mentioned they plan to start or increase their purchase of forest carbon credits in the next five years.Nevertheless,34%of respondents remain uncertain ab

169、out their future course of action in this area,suggesting the need for more clarity and information.Two factors that would drive corporations to increase their investments in NCS are clear guidelines on the Indian governments recently announced Green Credit Programme(79%)and clarity of policies rega

170、rding the issuance,ownership and international transfer of carbon credits(75%).Other factors that influence organizations decisions include collaboration with state governments for degraded land restoration along with clarity on investment modalities,alignment with long-term sustainability goals,as

171、well as opportunities to partner with local communities and demonstrate positive impacts(see Figure 6).Despite implementation challenges,over 90%of corporate respondents plan to significantly or moderately increase NCS investments over the next five years.Factors leading respondents to increase inve

172、stments in NCSFIGURE 601020304050607080Clear guidelines on governments green credit programmeClarity on policy regarding issuance,ownership and international transfer of carbon creditsOpportunity for joint implementation of NCS with state government for degraded land restoration and clarity on inves

173、tment modalitiesAlignment with long-term sustainability goalsDemonstrated positive impact on local communities and biodiversity79%75%63%57%50%Opportunity to partner with gram panchayat/local community/farmers for NCS implementation43%When it comes specifically to NCS carbon credits,the biggest drive

174、r for increased investments would be the presence of clear and supportive policies regarding claims(84%),combined with the assurance of measurable and verifiable carbon reductions(75%).This indicates that organizations highly prioritize regulatory transparency and assurance when considering investme

175、nts in NCS carbon credits.Furthermore,the presence of a functioning voluntary carbon market(57%),the cost-effectiveness of purchasing credits(54%)and the availability of diverse high-quality projects(46%)are also highlighted as key drivers(see Figure 7).Note:Gram panchayat is a village council in In

176、dia.Unlocking Private Sector Investment into Natural Climate Solutions in India21Factors leading respondents to increase investments in NCS carbon creditsFIGURE 701020304050607080Clear and supportive policies regarding claimsAssurance of measurable and verifiable carbon reductionsFunctioning volunta

177、ry carbon marketCost-effectiveness of purchasing creditsAvailability of diverse high-quality projects84%75%57%54%46%90Additional comments provided by respondents re-emphasize the importance of awareness,policy clarity,collaboration and equitable benefit-sharing in promoting private sector investment

178、s in NCS.Specific recommendations from respondents highlight the role of government support,education,strategic partnerships and the removal of restrictions in accelerating NCS initiatives within the private sector.Unlocking Private Sector Investment into Natural Climate Solutions in India22Recommen

179、dations for tackling barriers to unlock greater investment in NCS 3Clarity on regulations and standards,greater procedural support from government,a pipeline of high-quality projects and sector-specific business cases could unlock more corporate investment in NCS in India.What emerges from the analy

180、sis contained in this report is that the drivers of NCS investments in India may be shifting,or rather expanding.Until now,most investments came through corporate social responsibility projects in many cases as a way to improve the livelihoods of communities living around factories or as mandatory c

181、ompliance investments for companies with significant land-use footprints.They were not initiated with the intention to offset emissions or sell carbon credits.Now,however,with more companies establishing their climate and sustainability strategies,there is a growing appetite to understand how NCS ca

182、n contribute to net-zero goals.Consequently,companies are interested in seizing the opportunities represented by NCS carbon credits and other voluntary market-based schemes(e.g.the GCP),provided there are clear guidelines for implementation,backed by strong enough incentives.Unlocking Private Sector

183、 Investment into Natural Climate Solutions in India23There is an opportunity to help close the gap in NCS investments by unlocking greater private finance towards these goals.But to do so will require addressing the barriers that have been highlighted by companies interviewed and surveyed for this r

184、eport.This chapter groups corporate recommendations to overcome these barriers into four categories in order of priority and then examines each category in greater detail(see Table 2 and below):1.Clarity on regulations and standards2.Collaboration with government3.Sourcing high-quality NCS projects

185、with strong MRV4.Strengthening the business caseBusiness recommendations to unlock investments in natural climate solutions(NCS)in IndiaTABLE 2Clarity on regulations,standards,certifications and compliances will boost investmentCollaboration with and procedural support from the government will lead

186、to large-scale impactBetter define regulatory frameworks,roles and responsibilities,e.g.:Government for regulation and implementation on government landPrivate sector for co-investmentLocal stakeholders for implementation on community land and maintenance of NCS projectsClarify use of credits genera

187、ted through CSR investments.Establish legislative and governance frameworks to incentivize long-term investments and prevent double counting.Align at national and global levels to provide private investors with clarity on available opportunities.Establish transparent mechanisms for NCS fund utilizat

188、ion,to monitor benefits beyond carbon sequestration,e.g.habitat restoration and ecosystem services.Provide clear guidelines,operational protocols and transparent credit issuance mechanisms to build trust and boost private investment in the GCP.*GCP=Green Credit ProgrammeEstablish a comprehensive dat

189、abase to enhance transparency and attract participation and financing in varied landscapes,e.g.:Wetland restoration sitesLandscape restoration sitesDegraded forest areasProvide information about government-led initiatives and clearly define the role of the private sector.Develop mechanisms or regula

190、tions for benefit-sharing among partners,while ensuring fair and equitable distribution of benefits to communities,integrating livelihood creation.Identify areas where the government faces resource and finance shortages,allowing the private sector to bridge the funding gap.Offer procedural support o

191、n engagement methods to facilitate the development of strong,functional and trustworthy partnerships.Incorporate the establishment of or access to markets for sustainable products resulting from NCS efforts,to ensure long-term financial sustainability.Sourcing high-quality NCS projects with strong M

192、RV*and socio-economic benefits will build investment confidence and impactStrengthening sector-specific business cases will help corporates go beyond CSR*Adopt impact assessment tools to build more confidence in project outcomes.Emphasize ecological restoration models over simple plantation approach

193、es,to achieve better outcomes.Involve local communities in project parameter-setting and certification to ensure their ownership and effective social audit.Identify NCS projects that address common risk management areas associated with local communities and businesses.Scale-up agroforestry as a viab

194、le solution to reduce forest dependency,e.g.the One Village One Forest programme.Consider the intersection between climate and health,by tracking positive health indicators linked to NCS and ecosystem conservation and restoration interventions.*MRV=measurement,reporting and verification Attractmorei

195、nvestment beyond CSR,by promoting strong business cases with transitionpathwaysthat prioritize NCS.Recognize the varying reliance on naturalresources and ecosystem services acrosssectors.Strengthen the business caseby better valuation of natural capital and ecosystem services.Increasecorporate aware

196、ness of the materialrisks associated with nature loss,as well as the financial opportunities arising from NCSinvestments.Integrate nature-related risk management into the planning and execution phases of NCS projects.Allocate funding equivalent to 4-5%of project costs for NCS adaptation as an invest

197、ment in resilience-building against nature and climate-related risks.*CSR=corporate social responsibilityUnlocking Private Sector Investment into Natural Climate Solutions in India24Clarity on regulations and standards3.1Issues around claiming carbon credits under existing policiesOne of the areas t

198、hat requires clarification is the relevance and applicability of national policy instruments and guidelines related to the issuance and claiming of carbon credits.When it comes to the governments Compensatory Afforestation Fund Management and Planning Authority(CAMPA),the afforestation and restorati

199、on undertaken are to compensate for forest loss and are mandated by law.They are therefore not considered additional and corporations cannot claim carbon benefits resulting from these against their corporate net-zero targets.Similarly,for projects under the green belt regulations that require compan

200、ies to plant a buffer zone of trees around industrial activities:although these trees may not necessarily be a replacement for existing forests,the plantations involved are still deemed to be non-additional,since they are mandated by law and cannot therefore yield carbon credits for companies.In the

201、 case of corporate social responsibility investments,there is widespread agreement that using CSR funds to develop an NCS project that delivers carbon credits to meet corporate net-zero or emission reduction targets is not tenable under the current regulations.The rationale is that CSR can be treate

202、d as a philanthropic mode of funding NCS projects,which typically benefit the communities involved.The generation of certified credits could offer an additional revenue stream for the community,thereby enhancing livelihoods along with the projects longevity.However,companies would not be entitled to

203、 claim the corresponding carbon credits.Ways companies can procure high-integrity carbon creditsAt present,Indian companies interested in using NCS carbon credits towards their net-zero targets can do so only via the global voluntary carbon market(VCM)outside of CSR investments or other compliance m

204、echanisms described in the preceding section.This allows emitters to supplement the pace of emission reductions in their own operations and value chains by purchasing(or selling)high-integrity carbon credits.VCMs trade in carbon credits outside the compliance market,with private certifying agencies

205、such as Verra and Gold Standard that have developed NCS methodologies.Three types of emission reduction carbon units are commonly developed in NCS:reduced emissions,avoided emissions and removed emissions.Over recent years,the VCM approach to carbon credits(also known as offsets)has been criticized

206、to some extent,highlighting the need for transparency and high-integrity projects.Comprehensive guidance on how to procure high-integrity carbon credits via the VCM is available.In particular,the Natural Climate Solutions Alliance a collaboration between the World Economic Forum and the World Busine

207、ss Council for Sustainable Development has issued A Buyers Guide to Natural Climate Solutions Carbon Credits.39 This guide takes users through each of the steps required,which include:integrating carbon credits into their sustainability strategy;establishing the right criteria for NCS projects;ident

208、ifying corresponding sources of credits;conducting due diligence;purchasing credits;reporting and making credible claims.Companies may also choose to develop their own projects to generate carbon credits and guidance is available on developing such voluntary carbon market projects.40When it comes to

209、 companies making a claim associated with counterbalancing annual unabated emissions,there is a global consensus that such claims should comply with the following two overarching principles developed by the World Resources Institute:41 1.Credits must ensure environmental integrity and represent NBS

210、that respect the rights and livelihoods of Indigenous people and local communities while safeguarding biodiversity.2.An organization should be on a mitigation pathway aligned with limiting warming to 1.5C and its use of NBS credits must supplement,not reduce,the pace of emission reductions in its ow

211、n operations and value chains.At present,Indian companies interested in using NCS carbon credits towards their net-zero targets can do so only via the global voluntary carbon market.Unlocking Private Sector Investment into Natural Climate Solutions in India25How Indias Green Credit Programme will wo

212、rkWith respect to nascent policy schemes,the Indian governments GCP is attracting considerable interest.The green credits under this scheme are expected to be fungible across sectors(e.g.water,afforestation etc.).For small landholders,self-certification with geotagged photos as evidence is acceptabl

213、e for project certification and green credit issuance.A repository of degraded forest land has been initiated on the GCP portal and a number of states have already shared details on the platform.Calculations under the GCP will be based on the survival and growth of the tree and not the biomass and t

214、he carbon sequestered.Advanced geospatial analysis and third-party sampling on a random basis will be conducted as part of the MRV process.For large projects conducted by companies or institutions,a designated agency will be appointed to verify and validate the project activities credit issuance req

215、uests.In terms of the relationship with the carbon market,while the GCP allows project developers to register projects for carbon credits,challenges may arise as the major voluntary carbon standards tend not to allow projects to claim or“stack”environmental credits in addition to carbon credits.It i

216、s expected that when forestry becomes part of the national carbon market of India,projects will then be able to generate both green credits and carbon credits.However,these will fall under the compliance market and companies will therefore not be able to use these against their net-zero targets.Plan

217、ning is underway that may create corporate mandates for green credits themselves.Box 2 summarizes recommendations for the GCP that emerged from a public-private roundtable hosted within the framework of this report.Public-private recommendations for Indias Green Credit ProgrammeBOX 2The following re

218、commendations for the GCP emerged from participants at a public-private roundtable hosted within the framework of this report:Establish clear guidelines,operational protocols and a transparent credit-issuance mechanism to instil trust and attract private investment.Provide clarity on the investment

219、case in the GCP and on prospects of trading green credits.Provide clarity regarding the investment opportunities for businesses.Develop methodologies that promote and track ecological restoration models and ecological value-add,rather than solely focusing on plantation efforts.Integrate MRV framewor

220、ks into green credit issuance to enhance transparency and prevent double counting,ensuring that the monitoring includes different ecological parameters/metrics.Create policies that facilitate the incorporation of protected areas and private lands into green credit programmes.Expand the scope of the

221、GCP beyond degraded land to include aspects such as livelihood generation for local communities.Establish linkages with international standards and markets.Furthermore,to facilitate implementation,adoption and scaling-up of the GCP,participants recommended the establishment of platforms for sharing

222、NCS best practices,including ecological impacts and business value creation for partners,as well as the development of use-cases across a variety of ecosystems and partnership models(e.g.corporate investment in reforestation projects in degraded areas to earn credits;support for farmers in adopting

223、agroforestry to improve soil health and biodiversity).The following flowchart(see Figure 8)presents some of the key channels through which a corporation may choose to invest in NCS,depending on its industry sector,as well as its sustainability and net-zero strategies.Note that this flowchart is not

224、intended to be comprehensive.Unlocking Private Sector Investment into Natural Climate Solutions in India26Flowchart of key channels through which companies could invest in NCSFIGURE 8Indian private corporationComplianceunderCAMPA?NoDo you haveCSR-based NCScommitments?Invest in afforestation/reforest

225、ation/other NCSprojects and fundsYesDo you have anet-zero and/or anature-positivestrategy?YesYesYesAssess your nature impacts and dependenciesand develop a strategyNoNoInvest in afforestation/reforestation/CAMPA fund/green belt regulationsInvest in afforestation/reforestation/other NCSprojects via v

226、oluntarycarbon marketInvest in green credits/biodiversity creditsCollaboration with government3.2The development of frameworks and ways of partnering between public,private and local community actors would greatly facilitate corporate investments into NCS.Such ways of working should cover different

227、arrangements depending on land ownership,offer clear pathways for how the private sector can engage,and provide guidance on the kinds of benefits that companies can derive from such partnerships.This is of particular importance on forest land,when it comes to afforestation or restoration of degraded

228、 areas.In these settings,further clarity provided by the government with respect to the interplay between restoration,carbon credits and associated claims and benefit-sharing,as well as for investment into non-timber forest product value chains and wood extraction would facilitate public-private par

229、tnerships and private sector investment.Clarity around how partnerships with government should work is also needed in relation to wetlands restoration as well as for providing demarcated areas for the GCP.Annex A3 provides more specific recommendations related to different policy instruments,highlig

230、hting the importance of clear partnership frameworks.Unlocking Private Sector Investment into Natural Climate Solutions in India27Sourcing high-quality NCS projects with strong MRV3.3Globally,increased scrutiny of projects as well as concerns about the integrity of climate change mitigation outcomes

231、 has been pushing the entire field towards greater quality and accountability.At the same time,rapidly evolving technology (e.g.geo-spatial data,drone capture of geotagged information,AI-enabled analysis)is making it possible to monitor project metrics with ever greater accuracy(see Box 3).Monitorin

232、g,reporting and verification(MRV)of NCSBOX 3Robust MRV of NCS projects is critical for companies to obtain and showcase verified benefits arising from their investments.Triangulation and assurance of MRV data need to be carried out to eliminate bias,remove errors and improve quality and credibility

233、of the findings.MRV may need to include ecological,social and economic data assessments to measure climate,biodiversity,climate resilience,community development and similar benefits.The system must include use of advanced digital tools,such as geospatial analysis,mobile devices etc.,accompanied by p

234、rotocols for physical assessment and interaction with stakeholders.The system should also be cost-effective and operate at different scales.While carbon credit projects,operating through standards,have developed MRV systems,other NCS projects lack standard guidance.Minimum standards for reporting ac

235、ross activities such as tree planting,watershed development and biodiversity conservation need to be adopted by industry.These standards should ensure cost-effective and transparent data collection and reporting at suitable periodicity.Industry associations and the Indian government can play a key r

236、ole in the creation and standardization of MRV principles.There are examples of this from other areas such as financial reporting and safety reporting.On the sustainability front,the Securities Exchange Board of India(SEBI)has created the mandatory business responsibility and sustainable reporting(B

237、RSR)standards for the top 1,000 listed companies a pioneering initiative.This institutional experience could be extended to include reporting on NCS projects.In this context,the methodologies of major certification bodies are evolving to ensure greater integrity and accuracy.Similarly,a number of gl

238、obal guidelines have been put forward to support companies in ensuring they are sourcing projects of high integrity.Companies can find further guidance from,for example,the Core Carbon Principles developed by the Integrity Council for the Voluntary Carbon Market42 and(for mangrove projects)the High-

239、Quality Blue Carbon Principles and Guidance,43 among others.While NCS projects can be non-profit and require philanthropic capital,an“ecopreneurship”movement is on the rise globally,whereby entrepreneurial principles are applied to natural climate solutions,with the aim of creating start-ups that re

240、store and regenerate natural capital as part of their business model.This offers new partnership and investment opportunities for companies seeking high-integrity NCS projects.In India,several ecopreneurs are spearheading high-quality NCS projects.However,they face a number of challenges highlighted

241、 in Box 4 along with associated recommendations,derived from a workshop conducted with businesses and ecopreneurs engaged in high-quality NCS projects in India.Unlocking Private Sector Investment into Natural Climate Solutions in India28Challenges to and recommendations for strengthening the impleme

242、ntation of high-integrity NCS projectsBOX 4Participants at a workshop conducted for this report with businesses and ecopreneurs engaged in high-quality NCS projects in India highlighted the following challenges they face,along with associated recommendations to overcome those barriers:Challenge#1:Ra

243、ising private investment.Recommendations:NCS projects typically require longer time frames to achieve a return on investment and margins tend to be smaller given the nature of the projects.Making companies aware of the longer timelines associated with NCS projects is essential to ensure meaningful a

244、nd sustained engagement with NCS.Mainstream a mixed-model organizational structure,consisting of a non-profit arm responsible for initial project development and a for-profit arm overseeing commercialization opportunities.A blended finance approach might be promising here,whereby grant funding or ph

245、ilanthropic capital can help build capacity and de-risk private capital which then serves to scale-up and commercialize NCS initiatives.Leverage existing mechanisms to de-risk investments.Tapping into schemes such as Mudra Yojana(loans of up to 10 lakhs*to micro-enterprises)or implementing a first-l

246、oss guarantee programme for NCS projects would improve investor confidence and help unlock more private capital.Challenge#2:Technical capacity gaps leading to difficulty in accessing alternative sources of finance(e.g.carbon finance),limiting expertise development and implementation at scale.Recomme

247、ndations:Share best practices and standardize procedure templates for project development,particularly in areas of widespread interest(e.g.carbon finance).Build capacity through training and education in NCS to help plug the skills gap.Challenge#3:Insufficient availability of data on existing NCS pr

248、ojects especially when it comes to data that captures knowledge of local communities.Recommendations:Develop a biodiversity registry or data repository,maintained at the panchayat level across the country and verified periodically,to help improve project implementation and decision-making,especially

249、 when it comes to species selection and product commercialization opportunities.Improve access to and affordability of data,including land-use records,geospatial data etc.Challenge#4:Weak partnership dynamics between businesses and project developers owing to lack of transparency on how investment i

250、s deployed on the ground and ineffective communication around how NCS projects address operational risks for businesses and/or benefit local communities.Recommendations:Create a platform that documents and aggregates benefits realised by NCS projects across the country,to help strengthen transparenc

251、y and improve communication of impact;this would facilitate fruitful partnerships with interested investors,offtakers etc.Recognize not only the huge opportunities but also the specific challenges faced by NCS ecopreneurs and unlock the corresponding financial and technical support to expedite progr

252、ess towards Indias NDC targets,while bolstering the nations climate resilience.*Note:One lakh is 100,000Unlocking Private Sector Investment into Natural Climate Solutions in India29Strengthening the business case3.4As this report has shown,most companies still feel uncertain about the return on inve

253、stment for NCS projects,particularly given high upfront costs which do not align with short-term financial priorities.However,as the material risks to businesses of their nature dependencies start to become better understood and factored into decision-making,NCS investments will soon appear as key o

254、pportunities to deliver business resilience,particularly for the most exposed sectors.In this context,front-runners will be able to seize these opportunities and direct their companies towards a sustainable trajectory,ensuring continued operations and customer loyalty.This will require greater aware

255、ness-raising and understanding of the role and impact of ecosystem services and NCS investments for core business operations.In parallel,policy developments that will either require greater NCS investments on the part of corporations(e.g.as part of carbon credit compliance markets)or incentivize suc

256、h investments(e.g.through the development of the GCP)can help make the business case stronger and expand these investments beyond CSR budgets.Table 3 outlines sector-specific risks and recommendations for how NCS investments can benefit businesses in different industries.NCS investments will soon ap

257、pear as key opportunities to deliver business resilience,particularly for the most exposed sectors.Sector-specific risks and NCS recommendationsTABLE 3SectorNature-related risksNatural climate solutionsAgricultureDiminishing populations of birds and insects that support agriculture.Native trees and

258、grassland development to create essential breeding and nesting habitats.Soil erosion that degrades soil quality and reduce agricultural productivity.Grassland restoration;agroforestry;improved water and irrigation management;fertilizer application;crop residue management.Renewable energyShortage of

259、water resources to facilitate cleaning of solar panels in solar energy installations.Freshwater ecosystem restoration and conservation(e.g.wetlands,lakes,ponds).Accumulation of dust or particulate matter on solar panels that reduces their efficiency.Ecosystem restoration(e.g.grasslands,dust abatemen

260、t,native flora).Introduction and management of invasive species.Ecosystem restoration(e.g.wetlands,lakes,ponds,reservoirs,grasslands).Oil and natural gasDraining large amounts of water from localized areas that depletes water reserves.Freshwater ecosystem restoration and conservation(e.g.wetlands,la

261、kes,ponds).Vegetation loss that disrupts local species through habitat fragmentation,altering behaviour and reducing ecological integrity of systems.Terrestrial ecosystem restoration(e.g.forests,grasslands).Metals,mining and cementMining that harms local ecosystems,leading to regulatory challenges.T

262、errestrial ecosystem restoration(e.g.forests,grasslands).Water shortages that disrupt operations.Freshwater ecosystem restoration and conservation(e.g.wetlands,lakes,ponds).ManufacturingDependency of supply chain on nature to obtain raw materials,such as wood,water,rubber and other natural materials

263、.Ecosystem restoration(e.g.forests,wetlands,ponds,lakes,reservoirs,grasslands).Floods many manufacturing units are located on low-lying areas,riverbanks and coastal regions prone to flooding.Conservation and restoration of freshwater ecosystems(e.g.wetlands,lakes,ponds)and mangroves.Banking and inve

264、stmentInvestment portfolios can be vulnerable to climate and nature-related risks.Offer green or sustainable investment opportunities to organizations that are managing and disclosing their impacts and dependencies on nature progressively.Auto and auto componentsDependency on nature for water use in

265、 various manufacturing processes.Conservation and restoration of freshwater ecosystems(e.g.wetlands,lakes,ponds)and mangroves.Floods many manufacturing units are located on low-lying areas,riverbanks and coastal regions prone to flooding.Dependency of supply chain on nature to obtain raw materials,s

266、uch as wood,water,rubber and other natural materials.Ecosystem restoration(e.g.forests,wetlands,ponds,lakes,grasslands).Unlocking Private Sector Investment into Natural Climate Solutions in India30The way forward:unlocking private sector investment in NCS3.5Table 4 presents recommendations for gover

267、nment agencies,policy-making entities and businesses to stimulate widespread investment in natural climate solutions by the private sector and to facilitate governmental support for conservation and ecosystem restoration,in line with Indias international climate,biodiversity and land restoration com

268、mitments.Unlocking private sector investment into NCS in IndiaTABLE 4Project stagesStrategyand planningImplementationImpactEnabling factorsRegulatory framework and guidelines enabling investment.Strengthen business case focusing on NCS.Ready inventory of high-quality projects.Collaboration with gove

269、rnment and community to ensure land availability and procedural support.Tested,accepted and transparent MRV frameworks and tools.Government,policy-makers and advocacy bodiesEstablish standardized protocols for generating NCS credits in India,ensuring alignment with international carbon market scheme

270、s to facilitate seamless transfer and financial incentives.Address factors such as carbon accounting methodologies,project verification standards,land tenure and rights,biodiversity protection and community engagement in guidelines.Create knowledge-sharing platforms to deal with information asymmetr

271、y and create awareness and understanding of existing instruments.Converge policies and instruments between sectors at state and federal levels(e.g.agriculture,forestry).Create frameworks for public-private partnerships,e.g.in support of wetland conservation,wildlife corridors and afforestation under

272、 the Forest(Conservation)Act;investments into non-timber forest product(NTFP)value chains;and other effective area-based conservation measures(OECMs)under respective policies.Identify and demarcate areas for implementing voluntary environmental action.Recognize industry practices for sustainable sup

273、ply chain management in forest and agriculture areas resulting in greater resilience to climate change and reversing nature loss.Industry associations and the government could play a key role in the creation and standardization of MRV principles.Private sectorIntegrate NCS into core sustainability a

274、nd climate strategies by setting clear targets and reporting on NCS initiatives in annual sustainability and ESG reports,moving beyond CSR-driven investments.Invest in NCS through voluntary schemes such as the Green Credit Programme,leveraging existing programmes like tree plantation-based carbon cr

275、edits.Make long-term investments to ensure impact on the ground and return on investment.Create carbon sinks using NCS for adaptation and resilience both within and beyond sites of operations and value chains,by collaborating with local authorities.Collaborate with local government bodies and commun

276、ities to build trust and create value for business,nature and people.Invest in tech for nature and innovations for effective implementation.Implement clear and transparent reporting mechanisms,including online tracking and reporting capabilities,to boost accountability and transparency in NCS projec

277、ts.Share best practices and success stories,to inspire other companies and facilitate knowledge exchange.Unlocking Private Sector Investment into Natural Climate Solutions in India31ConclusionTackling climate change and nature loss is a high-stakes opportunity for India,with nearly a third of its la

278、nd degraded and a potential 10%hit to GDP at 3C of warming.Now is the moment for public and private sectors to join forces in boosting investment in NCS.The analysis presented in this report reflects a paradigm shift in the drivers of NCS investment in India.An increasing number of companies are inc

279、orporating NCS into their climate and sustainability strategies and have recognized the business case.This shift holds the promise of not only addressing environmental challenges but also fortifying the business case for sustainability.The current appetite among businesses to comprehend how NCS can

280、contribute to net-zero goals is at a critical juncture.Companies are exploring opportunities presented by NCS carbon credits and voluntary market-based schemes such as Indias Green Credit Programme,while also looking for clear regulatory frameworks,incentives and avenues for public-private partnersh

281、ips.This shift presents an opportunity to bridge the funding gap in NCS and mobilize greater private finance towards sustainability goals.The urgency to address climate change and biodiversity loss is underscored by the potential economic fallout of failing to act.Half the global economy(around$44 t

282、rillion)is at risk from nature loss,making NCS a critical strategy in fortifying the worlds socio-economic systems.In this context,India assumes a central role,facing potential annual GDP losses of 6.4%at 2C of global warming,escalating to more than 10%at 3C by 2100.The stakes are high,with long-ter

283、m implications for national poverty rates and the well-being of millions.Additionally,nearly 30%of forestland in India is considered degraded,with the great majority suffering from vegetation degradation that threatens food security.Given this backdrop,NCS emerge as a comprehensive solution,offering

284、 a strategic focus on safeguarding,conserving,restoring and sustainably managing terrestrial,freshwater,coastal and marine ecosystems for people and planet.As the findings of this report make clear,private sector engagement in NCS is not just a financial investment but a commitment to the broader vi

285、sion of sustainability.However,realizing the full potential of private sector investment in NCS demands a collaborative approach.To unlock this potential,policy-makers,businesses and civil society must work together to ensure that NCS become an integral part of the journey towards a sustainable futu

286、re.In conclusion,this report not only sheds light on the evolving landscape of NCS investments in India but also serves as a blueprint for action.It calls for immediate policy directives,public-private dialogue and concerted efforts to translate its findings into tangible actions.The journey ahead i

287、nvolves not just acknowledging the potential of NCS but actively harnessing it to forge a path towards environmental resilience,economic sustainability and social wellbeing.The time for action is now:through collective action with the government,private sector companies can pave the way for a future

288、 where nature and people thrive in harmony.Unlocking Private Sector Investment into Natural Climate Solutions in India32AnnexesPolicy instruments driving investment in NCS in IndiaA.1InstrumentsObjectivesAgencies®ulations involvedExamplesCompensatory Afforestation Fund Management and Planning Aut

289、hority(CAMPA)Promote afforestation and restoration activities to compensate for forest lands diverted to non-forest uses.National CAMPA of the Ministry of Environment,Forest and Climate Change(MoEFCC).State CAMPAs.Compensatory Afforestation Fund(CAF)Act,2016.The government of Arunachal Pradesh carri

290、ed out afforestation programmes on over 16,000 hectares of the state under the CAMPA scheme.44Green beltMinimize the environmental impact and pollution caused by industrial activities via developing a green canopy belt.Central Pollution Control Board.MoEFCC.Forest(Conservation)Act,1980.Environment(P

291、rotection)Act,1986.National Forest Policy,1988.Forest Conservation Rules,2003.Environmental Guidelines for Industries.Environment Management Plan.Creation of green belts around two plants of Bharathi Cements.45Corporate social responsibility(CSR)Integrate social and environmental concerns into the o

292、perations of corporations.Ministry of Corporate Affairs.Section 135 and Schedule VII of Companies Act,2013.Many NCS projects arise through CSR investments e.g.Mahindra Groups Project Hariyali(see Box 1).Voluntary carbon marketsAllow carbon emitters to offset their carbon emissions by buying&selling

293、carbon credits.Carbon certification agencies(e.g.Verra,Gold Standard,Plan Vivo).Article 6 of the Paris Agreement.Agricultural land management project in Beed district,India,implemented by Godrej Properties.46Green creditsEncourage voluntary environmental projects among public and private sector enti

294、ties by creating,buying&selling credits.Green credit registry,to be managed by the Indian Council of Forestry Research and Education(ICFRE).Payments for ecosystem services(PES)Monetize the services provided by ecosystems,so those maintaining ecosystems are financially incentivized by users.Ecosystem

295、 maintainers(sellers).Buyer entities.Facilitating organizations(e.g.credible NGOs).PES agreement between Palampur Municipal Corporation in Himachal Pradesh and the Village Forest Development Society(VFDS).47Unlocking Private Sector Investment into Natural Climate Solutions in India33National commitm

296、ents by sector,associated policies and relevance for NCS investmentsA.2Sectors identifiedNational commitments Sector-related policies,strategies and initiativesNCS actions Relevance for NCS Biodiversity and landscape conservation Conserve and protect 30%of landscapes and seascapes under Global Biodi

297、versity Framework(GBF).Biological Diversity Act,2002National Biodiversity Action PlanWildlife Protection ActProject TigerProject ElephantAmrit Dharohar promotes conservation of Ramsar sites(wetlands)Mangrove Initiative for Shoreline Habitats&Tangible Incomes(MISHTI)Protect,manage and restoreHighDisa

298、ster management,mitigation and adaptation Disaster Management Act,2005National Policy on Disaster Management,2009National Disaster Management PlanNational Disaster Management Authority(NDMA)Protect,manage and restoreHighEnvironmental education Mission LiFE(Lifestyle for Environment)mass movement to

299、nudge individual&community action to protect&preserve the environment.Protect,manage and restoreHighForestryCreate an additional(cumulative)carbon sink of 2.5-3.0 Gt CO2e through additional afforestation by 2030.National Forest Policy(NFP),1988Joint Forest Management(JFM)Biological Diversity Act,200

300、2Scheduled Tribes and Other Traditional Forest Dwellers Act,2006(commonly known as Forest Rights Act,2006)Draft National Forest Policy,2018National Afforestation Programme(NAP)Green India Mission(GIM)Compensatory Afforestation Fund Management and Planning Authority(CAMPA)Aravalli Green Wall projectN

301、ational Mission for Himalayan Studies(NMHS)Ecological Fiscal Transfers(EFTs):the 14th and 15th Finance Commissions incorporated forest cover figures in the calculation of tax devolution to the states,with the 15th Commission increasing the weightage of“very dense”or“moderately dense”forest cover to

302、10%,from 7.5%used by the preceding Commission.48Protect,manage and restoreHighUnlocking Private Sector Investment into Natural Climate Solutions in India34Sectors identifiedNational commitments Sector-related policies,strategies and initiativesNCS actions Relevance for NCS AgricultureDoubling farmer

303、s income.National Food Security MissionRashtriya Krishi Vikas Yojana(RKVY)Integrated Schemes on Oilseeds,Pulses,Palm Oil and Maize(ISOPOM)Pradhan Mantri Fasal Bima Yojana crop insurance schemeE-marketplaceManage and restoreMediumUrban greening and sustainable cities Smart City MissionJawaharlal Nehr

304、u National Urban Renewal Mission(JNNURM)Atal Mission for Rejuvenation and Urban Transformation(AMRUT)Pradhan Mantri Awas Yojana(PMAY)affordable housing schemeHeritage City Development and Augmentation Yojana(HRIDAY)Deen Dayal Antyodaya Yojana national rural livelihoods missionManage and restoreMediu

305、mWater resources and conservation Ministry of Jal Shakti initiatives water ministryNational Water PolicyNational Water MissionWater Framework Law(Draft)Model Groundwater Bill(Draft)Dam Safety BillInterstate Water Disputes Amendment BillNational Water Policy(NWP),2012Namami Gange,Project Dolphin etc.

306、Manage and restoreMediumBioenergyIncrease share of non-fossil fuel-based energy resources to 40%installed electric power capacity by 2030.National Solar MissionFAME India(Faster Adoption and Manufacturing of(Hybrid&)Electric Vehicles in India)KUSUM(Kisan Urja Suraksha evam Utthan Mahabhiyan)scheme f

307、or farmersBharat emission norms VIGRIHA(Green Rating for Integrated Habitat Assessment)building codeManageLowEnvironmental research Map funds of research in Council of Agricultural Science and Technology and other agri-institutes ManageLowUnlocking Private Sector Investment into Natural Climate Solu

308、tions in India35Policy recommendationsA.3PolicyPresent NCS provisions RecommendationsGreen Credit Programme,2023Tree plantation,water conservation,sustainable agriculture,mangrove conservation and restoration are identified as market-based approaches for green credit to incentivize environmental act

309、ions of various stakeholders.Identify and demarcate areas for implementing these voluntary environmental actions.Wetlands(Conservation and Management)Rules,2017 under EPA,1986Conservation and management of wetlands of international importance(75 wetlands)under the provisions of the Convention on Wet

310、lands(Ramsar Convention).Wetlands notified under the rules by the central government,state governments and Union Territories administrations(1199 Wetlands).Develop an ecosystem for public-private partnerships for wetland conservation.Indias Nationally Determined Contributions(NDCs)Creation of an add

311、itional carbon sink of 2.5 to 3.0 billion tonnes of CO2e by 2030.Partnership with industry for afforestation on demarcated areas,with undertaking not to convert grasslands,wetlands or other habitats for afforestation.Wildlife(Protection)Act,1972Protected areas network,biodiversity conservation,habit

312、at preservation,environmental impact assessment,conservation initiatives.Develop business partnerships to restore and conserve wildlife corridors,support species conservation and engage in other effective area-based conservation measures(OECMs).Forest(Conservation)Act,1980Afforestation and reforesta

313、tion.Developing multi-stakeholder partnership models for afforestation:Protected afforestation/reforestation with carbon credits for investing companies.Afforestation/reforestation with only extraction of NTFPs(non-timber forest products)and carbon credits for investing companies.Afforestation/refor

314、estation with 50%protection and 50%for wood extraction as per forest management plan for the investing company.National Biodiversity Strategies and Action Plans(NBSAPs)Living in harmony with nature under Kunming-Montreal Global Biodiversity Framework.Integration of NCS for degraded ecosystem restora

315、tion,conservation and protection of natural habitats and partnership models for industry in NBSAPs.Biological Diversity Act,2002Access to and benefit sharing for commercial utilization of biological resources are promoted under the act for sustainable management of biodiversity.Recognition of indust

316、ry practices for sustainable supply chain management in forest and agriculture areas,resulting in building resilience to climate change and addressing nature loss.Unlocking Private Sector Investment into Natural Climate Solutions in India36ContributorsAcknowledgementsWorld Economic Forum Nicole Schw

317、abDirector,1t.org;Co-Head,Nature Positive PillarIshrat JahanSouth Asia Lead,1t.orgJaideep SalilUpLink Project Specialist,Innovation Ecosystems,1t.orgConfederation of Indian Industry(CII)Seema AroraDeputy Director GeneralShikhar JainExecutive Director,CII-ITC Centre of Excellence for Sustainable Deve

318、lopmentPravir DeshmukhSenior Counsellor,CII-ITC Centre of Excellence for Sustainable DevelopmentKashish MadanAssociate Counsellor,CII-ITC Centre of Excellence for Sustainable DevelopmentAbhejit Agarwal,Head,Sustainability&CSR,Axis BankRushikesh Chavan,Head,The Habitats TrustAnand Ethirajalu,Project

319、Director,Rally for Rivers&Cauvery CallingBhairavi Jani,Executive Director,SCA Group Bhaskar Padigla,Head,Climate Hub,WWF-IndiaMukund Rajan,Chairperson,ECube Investment Advisors Arun Kumar Sharma,Group Head,Sustainability and Climate Change,Adani Group Vaishali Nigam Sinha,Co-Founder and Chairperson

320、Sustainability,ReNew PowerPrashant Tiwari,Chief Sustainability Officer,Amara Raja GroupAnkit Todi,Group Chief Sustainability Officer,Mahindra GroupIORA Ecological Solutions Swapan MehraFounder and CEOCharu TiwariSenior Manager,Forestry and BiodiversityArihant JainAssociate,Agriculture&Climate Change

321、The World Economic Forum would like to extend its gratitude to the Confederation of Indian Industry and IORA Ecological Solutions for their unwavering support throughout the process.We would like to thank stakeholder council members of 1t.org,the members of the Alliance of CEO Climate Leaders(India)

322、and all the participants involved in the numerous discussions,interviews,surveys,public-private roundtable and research conducted for this white paper.Nevertheless,the opinions expressed herein may not necessarily correspond with the views of everyone involved in the process.Sincere thanks are exten

323、ded to the following members of the 1t.org India platform steering committee who helped guide the process and contributed their insights:Editing and Design Bianca Gay-Fulconis,DesignerJonathan Walter,EditorUnlocking Private Sector Investment into Natural Climate Solutions in India37Endnotes1.World E

324、conomic Forum,Nature Risk Rising:Why the Crisis Engulfing Nature Matters for Business and the Economy,January 2020,http:/www3.weforum.org/docs/WEF_New_Nature_Economy_Report_2020.pdf.2.World Economic Forum,Nature and Net Zero,May 2021,https:/www3.weforum.org/docs/WEF_Consultation_Nature_and_Net_Zero_

325、2021.pdf.3.Kompas,T.,Pham,V.H.,&Che,T.N.,The effects of climate change on GDP by country and the global economic gains from complying with the Paris Climate Accord,Earths Future,6,11531173,13 July 2018,https:/doi.org/10.1029/2018EF000922.4.Skoufias,E.,Rabassa,M.and Olivieri,S.,The Poverty Impacts of

326、 Climate Change:A Review of the Evidence,World Bank Policy Research Working Paper 5622,April 2011,https:/documents1.worldbank.org/curated/en/712691468042044435/pdf/WPS5622.pdf.5.According to the India State of Forest Report 2019,released by the Union Ministry of Environment,Forest and Climate Change

327、,30%of Indias forestland,or over 21 million hectares,is degraded,96%of which is due to vegetation degradation.Source:AbdelRahman,M.,An overview of land degradation,desertification and sustainable land management using GIS and remote sensing applications,Rendiconti Lincei.Scienze Fisiche e Naturali,3

328、4:767808,4 April 2023,https:/ Intended Nationally Determined Contribution:Working Towards Climate Justice,https:/unfccc.int/sites/default/files/NDC/2022-06/INDIA%20INDC%20TO%20UNFCCC.pdf.7.Mathur,A.et al.,Will India attain its forestry NDC target of achieving 2.5-3 billion tonnes of CO2 equivalent t

329、hrough additional forest and tree cover by 2030?,The Energy and Resources Institute(TERI),January 2021,https:/www.teriin.org/policy-brief/will-india-attain-its-forestry-ndc-target-achieving-25-3-billion-tonnes-co2-equivalent.8.Intergovernmental Panel On Climate Change(IPCC),Nature-based Solutions fo

330、r climate,2022,https:/www.iucn.org/our-work/topic/nature-based-solutions-climate.9.Total NCS abatement potential is approximately 7 Gt CO2 out of a total net emission reduction requirement of 23 Gt CO2 by 2030.Source:World Economic Forum,Nature and Net Zero,May 2021,Figure 3,https:/www3.weforum.org/

331、docs/WEF_Consultation_Nature_and_Net_Zero_2021.pdf.10.United Nations Environment Programme(UNEP),State of Finance for Nature 2023,December 2023,https:/www.unep.org/resources/state-finance-nature-2023.11.Ibid.12.World Economic Forum,Nature Risk Rising:Why the Crisis Engulfing Nature Matters for Busin

332、ess and the Economy,January 2020,http:/www3.weforum.org/docs/WEF_New_Nature_Economy_Report_2020.pdf.13.Union Cabinet,Cabinet approves Indias Updated Nationally Determined Contribution to be communicated to the United Nations Framework Convention on Climate Change,3 August 2022,https:/pib.gov.in/Pres

333、sReleaseIframePage.aspx?PRID=1847812.14.Solanki,S.et al.,National Level Greenhouse Gas Estimates,2005 to 2018,Agriculture,Forestry and Other Land Use Sector(AFOLU)Methodology,GHG Platform India,September 2022,https:/www.ghgplatform-india.org/wp-content/uploads/2022/09/GHGPI-Emissions-Estimates-2005-to-2018_Methodology-Note-Addendum-AFOLU-Sector.pdf.15.An“additional”change in the context of carbon