Indian philanthropy leading global climate action

A report by the Centre for Nature and Climate of the World Economic Forum has highlighted how India’s philanthropic power is leading global climate action. It states that 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.

However, it points out that India 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. The formidable problem as warned earlier 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.

As explained by a Deccan Herald report, ‘Viksit Bharat 2047’ is the current government’s roadmap to making India a completely developed nation by 2047. This is 100 years after independence. As Indian Prime Minister, Mr Narendra Modi has stated that the core objective of the Viksit Bharat vision is to foster inclusive economic participation among all citizens. A key component of this initiative is the ambitious goal of elevating India to the rank of the world’s third-largest economy within the next five years.

As the WEF report adds, 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 report points out that 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, the WEF report says. It adds that 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. It highlights the Harit Bharat Fund that seeks to accelerate a land restoration-based economy in India to help mitigate climate risks, improve livelihoods, and boost nutrition and food security.