Potential Financing Mechanism for Greening Indian Urban Local Bodies

By : Shantanu Srivastava, Saurabh Trivedi

Page No: 62-68

Abstract
This article discusses the challenges Urban Local Bodies (ULBs) in India face in financing climate mitigation and adaptation projects, despite their critical role in addressing climate change. To address these challenges, the article presents potential financing mechanisms for Indian ULBs to finance their low-carbon infrastructure needs. These mechanisms include municipal green bonds, aggregation models, risk mitigation facilities and carbon credit trading. The article provides examples of such mechanisms used by ULBs in India or abroad and addresses existing policy gaps and capacity issues to ensure the effective use of these mechanisms by Indian ULBs.

Authors :
Shantanu Srivastava : Affiliated with the Institute for Energy Economics and Financial Analysis (IEEFA). Working as the Sustainable Finance and Climate Risk lead for IEEFA South Asia. Also, co-authored this paper along with Saurabh Trivedi who works as an Energy Finance Analyst with IEEFA Asia Pacific.
Saurabh Trivedi : Energy Finance Analyst, IEEFA.