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4) Agriculture demand side management (Ag DSM) under UPNRM by replacing the old and energy
inefficient pumps had been very effective as it promoted energy efficiency and proved a bankable
model.
5) Awareness level is very low among the bankers about climate change and climate finance.
6) No standards are available with the Bankers on Environmental and Social safeguards and majority
of them expressed helplessness in this regard.
7) The scope and the possibility for tracking the climate funds at sub national/local is limited.
8) Most of the activities undertaken by farmers are climate smart but unfortunately, they are not
explicitly defined.
9) Most of the CSA technologies and practices are initiated on a project mode and their scalability on a
sustainable basis remains highly uncertain.
Major Recommendations:
1. There is a need to create awareness among all stakeholders on climate change issues in particular.
Climate change education should be provided the utmost priority as it enhances the resilience of
communities.
2. Awareness has to be created among the various stakeholders on various aspects of Detailed Project
Report (DPR) preparation and appraisal system for expediting more projects under climate change
financing. Procedures to access climate funds have to be simplified, particularly with respect to
proposal preparation, to achieve more wide spread realisization of benefits.
3. Since climate change is a global public good, individuals lack incentive to work towards its mitigation.
Thus incentives are essential. Incentives should be designed in such a way that they account for the
positive and negative externalities created by a project sanctioned by the bank. Views of various
stakeholders need to be considered while designing the incentive mechanisms.
4. NABARD may collaborate with the research institutes and universities to undertake studies to
design a suitable incentives for the wide spread adoption of climate smart technologies/ practices
and effective use of National and International Climate Funds.
5. NGOs and other civil societies should be effectively involved in promoting CSA and monitoring. This
will help to overcome the moral hazard issues faced by the bankers.
6. Classification of the presently prevalent loan products and the subsidy schemes, in terms of their
contribution/ support towards adoption and mitigation towards climate change impacts, both
directly and indirectly, needs to be standardized and documented in explicit terms.
7. There exists a need to collect and analyze the data regarding the various climate smart technologies/
practices and incorporate the same in the Potential linked credit plans of NABARD.
8. The benefits of adoption of CSA are not always appreciable in the short term, but the costs are borne
immediately. Finance has an important role to play in helping the farmers to bear the cost and risk
effectively.
9. Handholding of farmers during the initial years of CSA technology/ practice adoption is very much
essential.
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