1 week Ago By Luis Alvarado
I ndia is nothing short of crucial to achieving global systems-level change for climate: its strong commitment to progress aligned with socio-economic development can set a precedent for sustainable, equitable pathways among emerging economies. Countries in the Asia-Pacific are at risk of losing 35% of gross domestic product by 2050 due to the effects of climate change and natural hazards, undoing over 30 years of efforts to reduce poverty, tackle food security and advance human development. Equally, this formidable problem also holds immense leadership opportunities, the recognition of which is evident in the Government of India’s policies such as Viksit Bharat 2047 – the country’s roadmap to becoming completely developed by 2047 – its nationally determined contributions under the Paris Agreement and its long-term low-carbon development strategy , along with collective momentum across the country’s climate ecosystem.
Yet, available finance is still far short of what India needs to meet its nationally determined contributions and build climate resilience. Philanthropic capital alone cannot fill this gap. However, it can provide momentum for fresh ideas, remove market obstacles, unlock stalled processes, convene communities, mobilize civil society, test and amplify novel ideas, fund high-risk and context-appropriate solutions and unleash additional private and public capital for climate action through the “4P” approach of public, private and philanthropic partnerships .
The philanthropy sector in India is growing steadily, with a 10% growth rate in 2023 . However, climate action accounts for just 0.5% of total domestic philanthropic funding , covering 10% of the nation’s climate financing needs.
However, several factors hinder the potential for speed and scale that collaborative philanthropy could harness. These include insufficient long-term funding, trust barriers, operational inefficiencies, a lack of consensus among stakeholders and – despite the many innovative finance tools and vehicles flourishing – the lack of scale to tackle systemic issues. On the other hand, promisingly, trends for cooperation and partnership are rising, with donors increasingly open to collaborating with different stakeholders and bringing the power of many to the table.
They are shifting the focus from individual giving to collaborative endeavours, adopting more strategic, multistakeholder approaches. There has also been a shift from traditional grant giving at grassroots levels towards more systematic approaches, impact investing and venture philanthropy tools. While the 4P approach is a relatively new concept in India, it has grown in recent years, which is evident in the emergence of new initiatives such as pooled funds, blended finance vehicles, networks and platforms.
Having funded everything from education to livelihoods to gender, India’s philanthropists are increasingly aware of the magnitude and complexity of their country’s climate challenge and the need for big bets. Such wagers in emerging economies go beyond the quantum of capital or a limited focus on mitigation. They can ensure inclusive and sustainable progress for India, aiming to simultaneously solve inequality and climate change by accounting for socio-economic risks and mitigation, adaptation, transition and loss and damage priorities.
They also call on a systems change lens to holistically frame the problem and solutions and require deep collaboration with other actors. Philanthropists are already betting big on aligning progress for climate, communities and nature in India by experimenting with levers of impact, paying attention to underserved sectors and regions and using multiple financing instruments. A key example is the Harit Bharat Fund , a unique collaborative initiative co-created by the research non-profit the World Resources Institute (WRI), WRI India, the India Climate Collaborative (ICC) and four other organizations.
Modelled after the successful TerraFund for AFR100 , which funds champions of land restoration in Africa, the Harit Bharat Fund seeks to accelerate a land restoration-based economy in India to help mitigate climate risks, improve livelihoods, and boost nutrition and food security. More than 700 million people depend on forests and agriculture for their sustenance in India. More than 85% of these are small and marginal landholders, making protecting and restoring these lands critical.
The fund also aims to sequester an additional 825 million tonnes of above-ground carbon through landscape restoration by 2030, putting India on a path to exceeding its nationally determined contributions. A precedent for innovative financing, the fund will provide grants for non-government organizations and customized loans for for-profit enterprises in Central India. It will focus on supporting women, first-generation entrepreneurs and marginalized communities to enable landscape restoration.
Given the complexities of land-use challenges, the ICC has also identified the need for a blended finance approach, encouraging a partner philanthropist to bring in debt capital and demonstrate how blended instruments can support restoration in India. Multiple levers of impact, including financial support, capacity building, and policy support, have been prioritized, which opens doors for synergies between civil society, philanthropy and government. Another example of an effective big bet is the Climate Resilience Atlas for India , an effort by the Council on Energy, Environment and Water.
Seed-funded by the ICC, it aims to improve climate decision-making at all levels through access to local and reliable risk assessments. A first-of-its-kind climate vulnerability index has been created to map risk hotspots and future risk scenarios for communities susceptible to droughts, cyclones and floods at district and sub-district levels. This data already informs government-led climate action plans and will support government efforts to climate-proof healthcare infrastructure and adopt nature-based solutions – paving the way for intelligent design of context-specific solutions.
To see more 4P solutions worldwide, the World Economic Forum’s GAEA (Giving to Amplify Earth Action) aggregates resources and expertise to create climate and nature solutions that affect systems-level change through its Big Bets accelerator . It aims to incubate and support big ideas for climate and nature solutions at the scale and pace necessary to ensure a sustainable future across the five key thematic areas of nature, energy, industry, food systems and climate intersections. The accelerator focuses on seeding the potential of emerging 4Ps through its network, scaling proven 4Ps through workshops and convenings, and enabling large-impact 4Ps to soar by providing strategic support.
To achieve a truly sustainable transformation that offers a real chance to successfully take on the greatest challenge of our time – the climate crisis – radical, dynamic partnerships at unprecedented global collaboration are required. Prioritizing and harnessing the leadership in the Global South will allow the transformation that achieves a truly sustainable economy globally and ensure equity for the world’s most vulnerable. GAEA and ICC are working to elevate Indian climate philanthropies to the global leadership stage and incubate 4P constructs in India for India to help show proof of concept and put Indian philanthropists at the vanguard of climate leadership.
As one of the most climate-vulnerable and emissions-intensive countries and home to the highest population in the world, India’s successful transition will mean success for the world. (The authors, Luis Alvarado, Head of GAEA / Strategic Public-Private-Philanthropic Partnerships, World Economic Forum and Shloka Nath, Chief Executive Officer, India Climate Collaborative) This article is was originally published in the World Economic Forum. Read the original article .
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