Climate change is an urgent and complex challenge that poses significant risks to our planet and its inhabitants. The emission of greenhouse gases is causing the Earth’s temperature to rise which has led to frequent extreme weather events, sea level rise, and the destruction of ecosystems, among other impacts.
At the 26th Conference of Parties (CoP 26) India had set a target of reaching net zero emissions by 2070. However, it has become increasingly difficult for a capital-intensive developing country to move towards a clean-energy economy. Realising India’s goal will require pooling funding from both the public and private sectors and integrating a climate lens into business models.
Philanthropy in this regard can be a powerful driver of climate action as currently, philanthropic giving for climate mitigation is estimated to be just 2% of the global overall giving and is even lesser at 1.5% in Asia. Therefore, encouraging philanthropists and social investors to be ambitious and courageous in their giving for climate action may potentially hold the key to shortening the climate financing gaps.
Gaps and challenges in embracing climate philanthropy
Climate change can adversely impact both the supply side and the demand side of the economy. It can stoke inflation, reduce economic output, trigger uncertainty, and change consumer behaviour. This will be detrimental to the businesses as well as the government. While India has realised the significance of climate financing to counter climate crises and is implementing several policies in this regard, existing climate finance volumes are insufficient to meet the current climate goals. Here, private philanthropists and philanthropic organisations can drive partnerships between the public and private sectors, incubate and accelerate market solutions, enable increased market access, and can drive impact-led development. For philanthropies, there are two significant barriers to realising India’s climate financing requirements.
Firstly, motivations for philanthropies differ as per their personal priorities. Building resilience against the impacts of climate change and reaching India’s net-zero goal will require greater collaborations and an understanding of investments in climate intersectionality. Secondly, philanthropies are not keen to take on early-stage risk in climate-related investments. Therefore, philanthropists and social investors should be encouraged to deploy catalytic capital which is patient, risk-tolerant, concessionary and flexible. One cannot overemphasise why motivating their catalytic capital toward addressing climate action is the need of the hour.
Philanthropies can address climate change in India
There is an urgent need to reshape Indian philanthropy to include prioritisation toward climate giving. This can be done by approaching climate financing through an intersectional lens – by understanding that climate change also affects gender, equity, diversity, livelihoods, health, education, etc.
There are a few philanthropies in India that have delivered phenomenal outputs by tapping into climate intersectionality by collaborating with other stakeholders. Their success stories showcase strong proof points of integrating a climate-centric approach for companies looking for co-investment partners in this sphere.
It has been heartening to see how a family-owned Indian philanthropy has built a sustainable landscape management model that keeps climate prosperity at its core. They have been able to develop a successful holistic model to put people and communities at the center of sustainable living and livelihoods. In the last five years, their efforts have benefitted around 654 families in nine villages across Maharashtra. The CEO has succinctly explained how it is important to bring out a climate intersectionality lens in everything that people do. He explains how climate change was born as a result of the last few billion trade-offs made wrongly and how if we make these trade-offs better, we will start finding answers to climate change.
This is also reflected in Mission LiFE which is an India-led movement of living an environmentally conscious lifestyle. By encouraging the reduction of waste, adoption of healthy lifestyles, adopting of sustainable food systems amongst other sustainable measures, it aims to channel the efforts of individuals and communities into a global mass movement of positive behavioral change.
Collaboration is key to a climate-secure future
One of the ways of ensuring this mass movement is successful in its mission towards addressing climate change is by encouraging philanthropies that have the capital to work with foundations that are addressing the climate problem. An example of this collaboration is the Foundations Platform F20, a network of more than 80 foundations and philanthropic organizations from different parts of the world. The F20, formed as an engagement group to the G20 and via its partners from India, is playing a key role in recognising the role that philanthropic capital can play in contributing to a just transition.
This year, F20’s annual Climate Solutions Forum took place in Delhi on June 8, in the context of the Indian G20 Presidency, and was aimed at bringing focus towards resilience and intersectional climate action. The event sought to stimulate debate in the G20 process, showcase priorities, challenges, and opportunities to help build global momentum.
Most of the climate vulnerable populations are poor and marginalized, and for them, it is not just a question of thriving but surviving. If we do not act fast, they will not get swift access to the resources and other assets required for a just and equitable transition. Reading climate intersectionality into these efforts is non-negotiable as climate change has far-reaching effects, across food systems, urban design, transport, and population health. Therefore, multilateral finance institutions, governments, and the private sector in India need to collaborate to tackle the climate problem. We must come together for the future of India, and the future of its people.
Disclaimer
Views expressed above are the author’s own.
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