staina ilit and limate han e ndia and he             orld    19.7
     issues6 involved with the mobilisation of green          risks pose irreversible costs. Complexity arises in
     finance:                                                 the case of financing for addressing adaptation
           (i) For a developing country like India,           and mitigation of GHG emissions. Provision of
                 poverty alleviation and development          finance is embedded in the convention and has
                 are of vital importance and resources        also been mentioned in the Paris Agreement for
                 should not be diverted from meeting          addressing the adaptation and mitigation needs of
                 these development needs. Green finance       developing countries. Tracking of climate finance
                 should not be limited only to investment     is equally important. Lack of a clear definition of
                 in renewable energy, as, for a country       climate finance has led to controversies in recent
                 like India, coal based power accounts        estimates of climate finance.
                 for around 60 per cent of installed                The Climate Finance in 2013-14 and the
                 capacity. Emphasis should be on greening     US$100 Billion Goal report released (late 2015)
                 coal technology. In fact, green finance      by the OECD (Organisation for Economic Co-
                 for development and transfer of green        operation and Development) states that the
                 technology is important as most green        mobilization of climate finance from developed to
                 technologies in developed countries are
                                                              developing countries had reached US$62 billion
                 in the private domain and are subject
                                                              in 2014. The report seems to include the full
                 to intellectual property rights (IPRs),
                                                              value of multilateral development bank (MDB)
                 making them cost prohibitive.
                                                              loans as well as official development assistance
         (ii) Green bonds are perceived as new and            (ODA), some private finance, export credits, etc.
                 attach higher risk and their tenure is also
                                                              as climate finance, leading to double counting.
                 shorter. There is a need to reduce risks to
                                                              Also it includes the promises, pledges and multi-
                 make them investment grade.
                                                              year commitments and not actual disbursements
        (iii) There is also a need for an internationally     as climate finance. The decline in allocation of
                 agreed upon definition of green financing    ODA to the least developed countries (LDC) in
                 as its absence could lead to over-           the past year, could perhaps be linked to higher
                 accounting.
                                                              allocation to ‘climate-related objectives’, implying
        (iv) While environmental risk assessment is           that ODA is being diverted to ‘climate-related
                 important, banks should not overestimate     activities’.
                 risks while providing green finance.
                                                                    The Paris Agreement mandates that
         (v) Green finance should also consider               transparent and consistent information on
                 unsustainable patterns of consumption        support provided and mobilized through public
                 as a parameter in deciding finance,
                                                              interventions for developing country Parties be
                 particularly conspicuous consumption
                                                              provided by developed countries. However, it is
                 and unsustainable lifestyles in developed
                                                              silent on the definition of climate finance. While
                 countries.
                                                              the question of what counts as climate finance
                                                              would be decided at a later stage by the Standing
        clImatE FInancE
                                                              Committee on Finance under the UNFCCC, it
     World is alive to the compulsion of combating            is important that it should highlight certain basic
     climate change as unmitigated climate change             elements like7—
        6.    Ibid., Vol. 2, pp. 182–83.                          7.  Ibid., pp. 185–86.