Fiscal Instruments to Promote Low Carbon Growth in Tamil …financial instruments/tools, the Tamil Nadu State Planning Commission and the Institute for Financial Management & Research,

FISCAL INSTRUMENTS TO PROMOTE LOW CARBON GROWTH

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Fiscal Instruments to Promote Low Carbon Growth

in Tamil Nadu

Organized by

Tamil Nadu State Land Use Research BoardState Planning CommissionEzhilagam, Chepauk, Chennai - 600 005.


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Tamil Nadu State Planning Commission The State Planning Commission was constituted in Tamil Nadu on 25th May 1971 under the Chairmanship of the Hon’ble Chief Minister as an Advisory body to make recommendations to the Government on various matters pertaining to the development of the State. The Chairman of the Commission is assisted by a team of Members, Consisting of Vice Chairman, Full Time Member & Part Time Members who are experts in various fields. The Additional Chief Secretary to Government, Planning, Development and Special Initiatives and the Principal Secretary to Government, Finance Department are the ex-officio members. The Member Secretary is responsible for administration in the Commission.

The Commission has the following technical divisions:1. Agricultural Policy and Planning2. Industries, Power and Transport3. Land Use4. Education and Employment5. Health and Social Welfare6. District Planning and Rural Development7. Plan Co-ordination.

Main activities of SPC :The major functions of the State Planning Commission are as follows:1. Preparation of Five Year and Annual Plans based on the policies and priorities of the Government;

2. Undertake Mid Term review of the Five Year Plan, other special reviews on the Economy and advise the Government on appropriate modification and restructuring of the schemes;

3. Monitor development indicators that influence the Human Development Index, Gender Development Index, etc., at a disaggregated level and suggest correctional measures;

4. Undertake special studies as required for formulation and implementation of plan projects and programmes;

5. Tamil Nadu State Land Use Research Board (TNSLURB) is functioning under the chairmanship of Vice Chairman, State Planning Commission as a permanent body in the State Planning Commission. This Board is intended to promote interaction and study in the vital areas of land use. The State Planning Commission organizes seminars/workshops and undertake studies.

6. Human Development Reports (HDRs) were prepared for Dindigul, Sivagangai, Tiruvannamalai, Cuddalore, Nagapattinam, the Nilgiris, Kanyakumari and Dharmapuri districts. The concept of Human Development has been disseminated to all districts through workshops organized in the concerned districts. Proposal for preparation of District Human Development Reports (DHDR) for the remaining districts is under process.

7. State Balanced Growth Fund (SBGF) is operated to bridge the regional imbalances among the districts.


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S.No Description Pg. No.

1. Workshop Team 4

2. Workshop Sessions 5

3. Executive Summary 6

4. Introduction 9

5. Climate Policy and Finance at the National and Sub-National Levels 10

6. Salient features of the Tamil Nadu State Action Plan on Climate Change (TNSAPCC) 16

7. Low Carbon Growth and Investment in Tamil Nadu - Research Findings 27

8. Budgeting for Low Carbon Transport 35

9. Potential for Congestion Tax in Chennai – Research Findings 43

10. Roundtable Discussion 55

11. Conclusions 61

12. Recommendations 62

13. List of Participants 63

CONTENT


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WORKSHOP TEAM

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Tmt. Santha Sheela Nair, I.A.S.(Retd.),Vice Chairperson,State Planning Commission.

Dr. Sugato Dutt, I.F.S.,Member Secretary(i/c) &Head of Division (Land Use),State Planning Commission.

Tmt. R.B. Koteeswari,Planning Officer (Land Use), State Planning Commission.

Thiru. P.Suresh Kumar,Senior Research Fellow,Tamil Nadu State Land Use Research Board,State Planning Commission.

Thiru. M.Thirumavalavan,Technical Assistant (Land Use),State Planning Commission.

Tmt. R.V.Meenakshi,Planning Assistant (Land Use),State Planning Commission.

Institutions/ Departments / NGOs

Dr.H.Malleshappa, I.F.S., Director of Environment, Tamil Nadu.

Dr.Koyel Mandal, Programme Head, CDF, IFMR, Chennai.

Ms. Sujatha Srinivasan, Researcher, IFMR, Chennai.

Thiru. James Clark Osborne, Senior Associate (Transport Policy), ITDP, Chennai.

Dr. Haripriya Gundimeda, Professor, IIT Bombay, Mumbai.


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WORKSHOP SESSIONS

Welcome Address

Dr. Sugato Dutt, I.F.S.,Member Secretary(i/c) &Head of Division (Land Use),State Planning Commission.

Presidential AddressTmt. Santha Sheela Nair, I.A.S.(Retd.),Vice Chairperson,State Planning Commission.

SeSSion – iClimate Policy and Finance at the National and Sub –National level in India

Dr.Koyel Mandal, Programme Head, Centre for Development Finance, IFMR, Chennai.

SeSSion – iiSalient features of the Tamil Nadu State Action Plan for Climate Change (TNSAPCC)

Dr.H.Malleshappa, I.F.S., Director of Environment, Tamil Nadu.

SeSSion – iiiLow Carbon Growth and Investment in Tamil Nadu -Research findings

Ms. Sujatha Srinivasan, Researcher,IFMR, Chennai.

SeSSion – iVBudgeting for Low Carbon Transport Thiru. James Clark Osborne,

Senior Associate (Transport Policy), Institute for Transportation & Development Policy (ITDP), Chennai.

SeSSion – VPotential for Congestion Tax in Chennai – Research Findings

Dr. Haripriya Gundimeda, Professor, Indian Institute of Technology Bombay, Mumbai.

Vote of Thanks Dr. Sugato Dutt, I.F.S.,Member Secretary(i/c) &Head of Division (Land Use),State Planning Commission.


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Background and Rationale

In the context of Government of India’s recent voluntary domestic commitment to reduce the emissions intensity of its GDP by 20–25 percent from 2005 levels by 2020, it has become imperative for all States in the country to individually chalk out their action plan to achieve this target within their jurisdiction to help the country as a whole to achieve its objectives. So far 25 States have developed their State Action Plans on Climate Change. But progress of States towards achieving these goals is likely to falter over a familiar stumbling block: financing.

There are broadly three different sources of climate finance available to States: private, public (domestic) and international public finance. The current mix of sources and corresponding funds, however, may not be able to meet their climate financing needs. Innovative carbon pricing instruments need to be considered to raise additional funds. For instance, the Government of Sikkim has created an Ecology Fund by levying a CESS on the price of non-biodegradable materials entering the State. It is estimated that for the Financial Year 2012-13 the fund has created more than Rs. 80 crores as revenue for the state. The revenues are utilized for amelioration of the environment and ecology of the State. Similarly taxes and

incentives are also underway in states like Maharashtra, Karnataka and Chhattisgarh, whereas others like Rajasthan, Kerala and Uttarakhand are considering setting up similar green funds using a combination of fiscal instruments and budgetary allocations.

Identification of state level climate financing needs and transparency regarding flow and use of funds will be a key to raising additional funds and meeting mitigation goals. This project is expected to aid states and promote their efforts in this regard. This project will also result in incentives leading to increased low-carbon production and additional funds to implement low-carbon policies at the state level

objectives

Given the above context, the objectives of the project are:

1. To increase transparency regarding the flow and use of existing funds as well as the need for additional investments to promote low carbon growth in Tamil Nadu.

2. Analyze the potential for using fiscal instruments to promote low carbon growth in Tamil Nadu.

EXECUTIVE SUMMARY


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Roundtable Discussion in Tamil nadu

In order to engage government stakeholders and other key factors involved in climate change with a specific focus on discussing the potential of innovating, designing, developing and implementing financial instruments/tools, the Tamil Nadu State Planning Commission and the Institute for Financial Management & Research, Chennai have conducted a half-day roundtable discussion.

During the roundtable, it was proposed that government agencies, academic institutions, and research organizations can collectively ideate and deliberate on the following questions:

What are the key components of Tamil Nadu’s low carbon growth plan? What are the various approaches before the State to generate funds to implement these plans and programs? What models of climate financing would work better for Tamil Nadu depending on its current economic development trajectory? What has been the success and learning from the existing environmental fiscal instruments (e.g. Green tax on vehicles, Emissions Trading Scheme for air pollutants etc.)? Were the funds generated enough and how were they utilized? Can we innovate and design new fiscal instruments (e.g. Congestion tax for the Transport Sector) as a means to effectively and efficiently mitigate climate change and also to generate dedicated

funds to support the State in implementing its low carbon growth plans.

Although these questions are applicable to all sectors, the roundtable will be specifically anchored using transportation sector as an example. Research findings presented by the IFMR team as part of their project on low carbon growth in TN will be used as a background to this discussion.

Based on the discussions from the roundtable, appropriate recommendations will be made regarding potential and design for new fiscal instruments (or strengthening of existing or proposed instruments), with the goal of addressing Tamil Nadu’s low carbon growth plans in an effective and efficient manner.

Recommendations

According Bus Rapid Transit System (BRTS), shifting people from private to public transport system is a high time cost. If it is designed well and rolled out - it will be very effective and has lowest carbon foot print.

Transport Authority of Tamil Nadu suggests that proper infrastructure is required for effective Tolling Policy implementation.

As per Corporation of Chennai, effective parking policy should be adapted with designated parking area and preparing the draft parking policy.


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Tamil Nadu Pollution Control Board shared that increase of Vehicles in Chennai City cause lot of traffic problems in peak hours and the pollution level is critical today; pollution is the main cause for the diseases like respiratory diseases, diabetic, hypertension etc.

Thiru Gitakrishnan Ramadurai, Assistant Professor, IIT Chennai, suggested that there is a need for more traffic engineers and panel specialists. Only a transport engineer can design the effective Transportation Network Model, Dynamic Traffic Assignments, Intelligent Transportation Systems, and Pedestrian safety, etc.

The Vice Chairman, State Planning Commission (SPC) stated that the role of SPC is to bring all the policy makers and implementing departments together in a platform and make recommendations. Regarding the discussion about the transport engineers, the SPC suggested that there is a need of political will to take the idea forward.

Conclusion

Taxes that collected on fuel surcharge on petrol and diesel can be used for the creation of a dedicated State Climate Change Fund (a policy call), the key design for such fund may be utilized specifically for climate change activities. In addition to finance, regulation and policy backing needs to be strong. The importance of better and improved reporting of low-carbon expenditure by the State may

recognize. The idea of incorporating new accounting heads to track green investments in the State may considered. IFMR was requested to send the climate expenditure data that they have collected to the various Departments for vetting.

The draft SAPCC for Tamil Nadu needs to

be more specific to climate change and has to be drawn from the mitigation and climate vulnerability analysis conducted for the State. There needs to be a clear demarcation between implementable projects and supporting policies and regulations. The Department of Environment, Tamil Nadu was requested to circulate the draft SAPCC to various Departments and incorporate their feedback. The issue of transportation reform and low carbon transport for the city of Chennai needs to be examined in an integrated manner. Some of the issues in the transportation sector will be taken up separately in future workshops.


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There is near consensus among the scientific community that ongoing global warming is an anthropogenic phenomenon, a result of carbon intensive activities since the industrial revolution. However, different countries are at different stages of development, and have had different emission trajectories in the past. On a per capita basis, India is one of the lowest emitters of greenhouse gases in the world, yet it is threatened by the impact of global warming and climate change.

Greenhouse gases (GHGs) and other pollutants are negative externalities imposing an external cost on the entire society and not just on the individuals who consume a certain product. Though India does not have an obligation to reduce the emissions of GHGs, it is important for Indian States to adopt a sustainable growth path. The emissions of GHGs and other pollutants, if left to free market forces, are unlikely to be reduced on their own. Hence, Government intervention is needed to internalize the externalities in production and consumption decisions of firms/individuals.

Researchers are exploring low-carbon development from a number of angles. The workshop is particularly focus on the way that policies, politics, institutions and markets shape innovation and investment in, and use of, low-carbon energy.

A Workshop on “Fiscal Instruments to Promote Low Carbon Growth in Tamil Nadu” was conducted on March 17, 2014 under the Chairmanship of Vice Chairman, SPC at the State Planning Commission.

The following five presentations were made in the course of the workshop :

1. Climate Policy and Finance at the National and Sub - National level in India – by Dr.Koyel Mandal, Programme Head, CDF, IFMR, Chennai.

2. Salient features of the Tamil Nadu State Action Plan for Climate Change – by the Department of Environment, Tamil Nadu.

3. Low Carbon Growth and Investment in Tamil Nadu - Research findings – by Ms. Sujatha Srinivasan, CDF, IFMR, Chennai.

4. Budgeting for Low Carbon Growth in Tamil Nadu Transport Sector – by Institute for Transport for Development Policy (ITDP), Chennai.

5. Potential for Congestion Tax in Chennai - Research Findings – by Dr. Haripriya Gundimeda, Professor, Indian Institute of Technology Bombay, Mumbai.

At the outset, Dr. Sugato Dutt, I.F.S., Member Secretary (i/c), State Planning Commission (SPC) welcomed the gathering. He stated that the key objective of this workshop is to assess the current status regarding flow and use of funds and to analyze the potential for fiscal instruments to promote low carbon growth in Tami Nadu. India Globally has despite action plan for Low Carbon Growth. After his opening remarks, he requested the resource persons to give their presentation. The following papers were presented in the Workshop, which was followed by the round table discussions and concluding remarks by the Vice Chairman, State Planning Commission, Chennai.

INTRODUCTION


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Session – i CLIMATE POLICY AND FINANCE

AT THE NATIONAL AND SUB-NATIONAL LEVELS

Thiru. Koyel Mandal is program head, environment at the centre for development finance (CDF), Institute for Financial Management and Research (IFMR), Chennai.

“What is Low-Carbon Development?” Low Carbon Development is a long term

plan of action that integrates mitigation and development objectives.

india’s Low-Carbon Development Plans � National Action Plan on Climate Change:

“Identifying measures that promote our development objectives while also yielding co-benefits for addressing climate change effectively”

v Jawaharlal Nehru National Solar Mission (JNNSM)

v National Mission for Enhanced Energy Efficiency (NMEEE)

v Low carbon measures as part of other missions – NMSA, Habitat

� Voluntary domestic commitment to reduce emissions intensity of GDP by 20 - 25 percent from 2005 levels by 2020

– Planning Commission’s Expert Group on “Low Carbon Strategies for Inclusive Growth”

– Draft 12th Five Year Plan

excerpt from Draft 12th Five Year Plan:

The final report of the Expert Group will include an economy-wide modelling and analysis of co-benefits in a cross-cutting framework. It will spell out the policy actions required to implement low carbon strategies up to 2030, and also suggest some finance strategies for the same. To evaluate the alternative policy instruments, a four-pronged strategy of ‘growth, inclusion, carbon mitigation and local environment benefits’ has been formulated. Taken together, the economy-wide modelling and co-benefits analysis will provide the analytical tools for formulating the low carbon strategies for sustainable and inclusive growth.

The Expert Group has identified twelve focus areas for the Twelfth Plan :1. Advanced Coal Technologies

2. National Wind Energy Mission

3. National Solar Mission

4. Technology Improvement in Iron and Steel Industry

5. Technology Improvement in Cement Industry

6. Energy Efficiency Programmes in the Industry

7. Vehicle Fuel Efficiency Programme


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8. Improving the Efficiency of Freight Transport

9. Better Urban Public and Non-motorized Transport

10. Lighting, Labelling and Super-efficient Equipment Programme

11. Faster Adoption of Green Building Codes

12. Improving the Stock of Forest and Tree Cover

In the Union budget 2012-13 a sum of INR 2 crores have been allocated for the Expert Group on Low Carbon Economy.

Sub-national Level Plans

� State Action Plans on Climate Change(SAPCC)

P Currently nine SAPCCs have been endorsed by National Steering Committee on Climate Change – Andhra Pradesh, Arunachal Pradesh, Madhya Pradesh, Manipur, Mizoram, Rajasthan, Sikkim, Tripura and West Bengal

P Three SAPCCs have been considered by Expert Committee on Climate Change - Assam, Meghalaya and Odisha

� State Solar Policy

� State Renewable Energy Policy

� ECBC rules are being drafted at the State level

The Bureau of Energy Efficiency (BEE) said that implementation of the Energy Conservation Building Code (ECBC) for commercial buildings will be mandatory for eight states, including Delhi and Maharashtra, from Financial Year 2012. The Governments of Uttar Pradesh, Haryana, Tamil Nadu, Andhra Pradesh, Karnataka and West Bengal will also have to make ECBC mandatory for any new construction of commercial buildings coming up in their states from April 2011 onwards.

State governments are responsible for enforcing the Energy Conservation Building Code and improved coordination between the central and state governments is needed. However, state governments may amend the codes prepared by the central government to meet their regional and local climatic conditions. According to BEE, as of August 2012, Rajasthan and Odisha had issued notifications for Energy Conservation Building Code rules; Uttar Pradesh, Uttaranchal, Karnataka, and Lakshadweep have amended the Energy Conservation Building Code to suit their local and regional climatic conditions; and Punjab, Gujarat, and Chhattisgarh are in the process of amending the Energy Conservation Building Code.

Cost of implementation of Climate Change Policies

� An estimated 46.89 billion USD required to implement the eight missions under NAPCC over the 11th and 12th Five Year Plan


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� Financial requirement of 71.4 billion USD for implementing the SAPCCs of 13 States having budgetary provisions

Financing Low-Carbon Growth

I. Public Domestic Sources

II. Private Sources

III. International Public Sources and Clean Development Mechanism

i. Public Domestic Sources

Public Domestic – National Level

� Budgetary Allocations

– Adaptation Expenditure – 2.68% of GDP in 2009-10

– Mitigation Expenditure

� National Clean Energy Fund – CESS of Rs. 50 / ton on coal

– Revenue collection of INR 10.66 billion in 2010-11 and INR 25.8 billion in 2011-12

In order to provide low cost finance, the government will provide low interest bearing funds from the NCEF to IREDA for renewable energy projects; the scheme will have a life span of five years. These funds will be used for the development of a transmission and evacuation corridor termed the Green Energy Corridor for renewable energy in the country. The funds will be utilised on the basis of a report prepared by the Power Grid Corporation of India on setting up of a Green Energy Corridor which involves eight states, including Karnataka, Tamil Nadu, Andhra Pradesh, Himachal Pradesh, Rajasthan and others.

Clean energy CESS budget estimates: 38.64 bn in 2012-13 (RE 33.36 bn) and 35.37 bn in 2013-14.

Public Domestic – State Level

Revenue Sources:– State taxes, FDI, Fiscal instruments

Comparison of Green Tax Rates in Various States

State Private Vehicles (15 years old) [in Rs. per annum]

Commercial Vehicles (7/8 years old) [in Rs. per annum]

Motorcycles Other Vehicles Auto Rickshaws Other Vehicles

Andhra Pradesh 1,000 5,000 5,000

Tamil Nadu 500(for 5 years) 1,000(for 5 years) 200 500

Maharashtra 2,000(for 5 years) 3,000(petrol vehicle for 5 years) 3,500(diesel vehicle for 5 years)

750(for 5 years) 1,250(for 5 years)

Rajasthan 250 500 200

Karnataka 250 500 200

Bihar Under Bihar Vehicles Taxation Act 1994 amendment, a green tax at the rate of 10% of the vehicle tax is payable by owner of registered commercial vehicle, which are over 12 years old (except three wheelers, tractors and trailers)

Source : Compiled from various news articles and official government websites


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Fiscal instruments

State Instrument Year Rev. collection / potential Objectives Gujarat Green CESS @ 2 paisa/unit 2011 244 cr (11-12) RE generation,

purchase Maharashtra Load Management charge and

rebate

2005 70 cr (05) DSM,EE

Sikkim Env CESS for non-

biodegradable materials

2005 57.5 cr (till 12-13) Env protection and

ecological balance Goa Green CESS @ 2% of sale value

of polluting substances

2013 100 to 120 cr annually Reducing carbon

footprint of the State Tamil Nadu (AP,

MH, KA, RJ, BR)

Green tax on older vehicles 2005 140 cr (till 11-12) Combat pollution

ii. Private Sources

Investments from Private Sourcesv $ 6.2 billion in India’s clean energy sector in 2012

Venture Capital/Private Equity (VC/PE), Public Markets and Asset Finance Investment in Renew-able Energy in India by Sector, 2012

(in $bn)

Asset Finance* Public Market VC/PE Total

Wind 3.0 - 0.1 3.1

Solar 1.8 - 0.01 1.8

Small hydro 0.6 - - 0.6

Biomass & waste-to-energy 0.5 - 0.03 0.6

Bio-fuels 0.02 - - 0.02

Total 6.0 0.0 0.1 6.2

Footnote: *Asset finance volume adjust for reinvested equity

Source: UNEP, Bloomberg New Energy Finance


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iii. international Public Sources and Clean Development Mechanism

International Public Sources : Dedicated Climate Funds

Fund ObjectivesAmount approved/ disbursed (million

USD)

Clean Technology Fund

Demonstration, deployment, transfer of low carbon techs

263

Japan’s Fast Start Finance

Enabling vulnerable developing countries to economic growth

0.45

Global Trust Fund Helping developing countries and economies in transition to mitigate and adapt

GEF4 : 113.67 GEF5 : 54.04

International Climate Initiative

Financing climate projects in developing and newly industrialized countries

44.63

Special Climate Change Fund

Combating climate change, technology transfer and capacity building

9.82

Strategic Priority on Adaptation

Addressing local adaptation needs, generating global env benefits

4.78

Global EE and RE fund

Investing in PE sub funds to finance EE and RE projects of SMEs

0.13

International Public Sources : Official Development Assistance (oDA)

Official Development Assistance (ODA) is a term coined by the Development Assistance Committee (DAC) of the Organisation for Economic Co-operation and Development (OECD) to measure aid. The DAC first used the term in 1969. It is widely used as an indicator of international aid flow. It includes some loans.

� ODA from OECD countries:

P Mitigation – 2.79 bn USD in 2010

P Adaptation – 152.75 mn USD in 2010

Clean Development Mechanism:

The Clean Development Mechanism (CDM) is one of the flexibility mechanisms defined in the Kyoto Protocol (IPCC, 2007) that provides for emissions reduction projects


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which generate Certified Emission Reduction units which may be traded in emissions trading schemes

� No. of projects registered: India – 1484, China – 3783

� CERs issued: India – 184.6 mn, China – 873.4 mn (as of 31st Dec, 2013; source: UNFCCC)

Project on Financing of Low-Carbon Growth at the State level

� Facilitating increased availability of funds for low-carbon growth - TN

– Mapping of current investments from various sources

– Understanding investment gaps and barriers to financing

– Analyzing the potential of fiscal instruments for climate mitigation and raising additional funds for implementing climate change activities

Step 1 : Defining low carbon investment

According to a recent IMF Working Paper (Eyraud et. al. 2011), green investment is “the investment necessary to reduce greenhouse gas and air pollutant emissions, without significantly reducing the production and consumption of non-energy goods”. It includes both public and private investment.

In defining what counts as low carbon investments, the focus has been on investments in renewable energy, energy efficiency, green construction, R & D. Controversial categories such as nuclear, carbon capture and sequestration (still in its infancy), and bio-fuels, Hydro-Power are not included for the purpose of this study. Expenditures which can be counted as more of day-to-day spending rather than investment are also excluded from the study. For example, activities and campaigns that facilitate awareness-raising and behaviour change, salaries and overheads for staff in dedicated organisations, have all been excluded.

Step 2 : Components and structure of low carbon investment

In order to map out the options for low carbon growth, various national reports on best practices for low carbon technologies in India were referred. The main reports used for this exercise are the following- Interim Report of the Expert Group on Low Carbon Strategies for Inclusive Growth, Environment and Energy Sustainability : An Approach for India (McKinsey, 2009) and Low Carbon Transformation: An imperative for the Indian Industry (Ernest and Young, 2011). The typology of mitigation activities considered in this study is categorized under the following sectors - Power, Transport, Industry, Buildings, Forestry and Agriculture.


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Session – iiSALIENT FEATURES OF THE TAMIL NADU STATE ACTION PLAN ON CLIMATE CHANGE (TNSAPCC)

Dr. H.Mallesappa, I.F.S., Director, Department of Environment, Tamil Nadu

Tamil nadu in Context to TnSAPCC :

Tamil Nadu has densely populated coast and its economic assets are prone to multiple hazards like high frequency & high intensity cyclones, rising sea levels, storm surges, coastal floods, degradation of mangroves & shelterbelts and depletion of ground water resources. Most vulnerable communities of Tamil Nadu are live in the zone up to 1,000 meters from the high tide line and vicinity. About 57 percent of the total land area of Tamil Nadu is dry land and per capita land holding is less than 1 ha. In Tamil Nadu 50 percent of net sown area is rainfed and irrigation dependent on ground water in most of the areas. The State dependent on rains for recharging the ground water, monsoon failures lead to acute water scarcity and severe drought. Decreasing trend of indigenous cattle & Buffalo and increasing trend of climate sensitive cross breed, milk production in jeopardy as the temperatures are rising. Sectoral demands for water are projected to increase to 48,766 Million Cubic Metres (MCM) in 2015 and 55,649 MCM in 2020 exceeding potential availability of 47,679 MCM. Only 35 percent of the blocks in the State have safe ground water which is mainly used for drinking and agriculture purposes. Frequent forest fires making way for invasive

species in forests. Decrease in annual income of disadvantaged and landless tribal’s especially women by 20% to 40% due to depleting trends of Non-Timber Forest Products (NTFP). Decrease in mangrove forests cover due to shrimp farming leading to higher exposure of inland areas to cyclones and storm surges.

objectives of TnSAPCC :

Within the overall State Vision on Development TNSAPCC aims to reduce its vulnerability due to climate change at the State Government level by

� Developing an overarching climate response framework that translates the missions of the NAPCC at the state level

� Leading to a

Ø Reduction in hazard and exposure to changes in climate and extreme hydro meteorological events

Ø Increases the capacity of the state and its people to cope with the likely impacts of projected changes in climate

observed Climate of Tamil nadu :

A study was made to study the maximum and minimum temperature increase throughout Tamil Nadu in last 100 years.


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From the study, when compared to maximum temperature, the increase in minimum temperature is faster in between 1971-2010 (IMD, 2011). The precipitation trend is varying by season and spatially. Of the average of 945 mm rainfall, 48% of rainfall is during North East (NE) monsoon, 32% in South West (SW)

monsoon, pre-monsoon rain fall is 16% and winter rainfall is around 4%. On an average, moderate to severe cyclones have struck the coast every two years. Between 1891 and 2006, about 62 cyclones crossed Tamil Nadu, of which 30 were severe cyclones.

Projected Range of changes in climate with respect to base line (1970-2000) for Tamil nadu

Projected changes 2000-2040 2040-2070 2070-2100

Temperature: Increase in average annual temperatures

1.0oC 2.0oC 3.1oC

Rainfall

North-east monsoon (Oct-Dec) > 5mm/ day : will increase by 1.5%

South-west monsoon (Jun-Sep) > 5mm/day : will decrease by 2%

Sea level rise Likely to range from 0.19-0.83 m by 2100


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Agro-Climatic Zones of Tamil nadu :

S.No Agro Climatic Zones

Districts covered

1 North Eastern Zone

Kancheepuram, Tiruvallur, Cuddalore, Vellore, Villupuram & Tiruvannamalai

2 North Western Zone

Dharmapuri, Krishnagiri, Salem and Namakkal (Part)

3 Western Zone Erode, Coimbatore, Tiruppur, Theni, Karur (Part), Namakkal (Part), Dindigul, Perambalur & Ariyalur (Part)

4 Cauvery Delta Zone

Thanjavur, Nagapattinam, Tiruvarur, Trichy and parts of - Karur, Ariyalur, Pudukkottai & Cuddalore

5 Southern Zone

Madurai, Sivagangai, Ramanathapuram, Virudhunagar, Tirunelveli and Thoothukudi

6 High Rainfall Zone

Kanyakumari

7 High Altitude and Hilly Zone

The Nilgiris and Kodaikanal (Dindigul)

Sectoral groups identified for TnSAPCC� Sustainable Agriculture

� Water Resources

� Forest and Biodiversity

� Coastal Area Management

� Energy Efficiency, Renewable Energy and Solar Mission

� Sustainable Habitat

� Knowledge Management


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Impacts of Climate Change and Strategies in Identified Sectors

AGRiCULTURe & HoRTiCULTURe CRoPS

Impacts Strategies

• Variable dates of onset of monsoon• Dryareasbecomingdrier• Moreintensedroughts• Enhancedsoilerosion,• Lossinsoilnutrient,• Increaseinpestsanddiseaseoccurrence

and emergence of new ones • Loss in productivity due to flooding of

extended areas with respect to what is occurring now

• Lossincropbiodiversity• Lossinincomes• Specificdecreaseinproductivityin2050s

and 2080s of rice, Maize may improve

• Agro-climatic Zone Approach • Focusonfarmlevelcropmanagement• Promote crop varieties that are

indigenous and are thermal resistant, saline and water stress tolerant

• Riskmitigationthroughinsurance• Promote new and efficient farm

mechanization techniques • Regular training for capacity building

of farmers and Agriculture officials for internalizing Climate Change Adaptation techniques


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iMPACTS on AniMAL HUSBAnDRY

Impacts Strategies

• Changes in species composition of grasslandsexpected altering quantity and quality of fodder and feed available for animals.

• Likelyaffectonnutritionalqualityofforageandhence digestibility capacity

• Milkproductionlikelytoreduceby0.43lit/day/animal for cross breeds and 0.16 lit / day animal for indigenous cattle per unit of rise of Thermal Humidity Index above 72

• Higherdemandforwaterwithdecreaseinwateravailability may be deleterious for the health of the livestock

• Alter distribution of vector borne disease andhence disease profile and spread across the State

• Emergenceofnewpestsanddiseases

• Ensure fodder and feed for sustainingintense and frequent droughts

• Intensify disease surveillance anddevelop capacity for short and long term disease forecasting

• Avoid Heat stress- build green sheltersfor livestock

• Trainruralwomenonanimalcare,animaldisease reporting, and nutrition for optimising milk production

• Promote indigenous varieties that areheat tolerant

iMPACTS on FiSHeRieS

Impacts Strategies

• Decrease in catch of current fish type isexpected with increase in Sea Surface Temperature (SST) and deep sea temperatures in long run

• FishcatchmaybefoundinthezonesbeyondExclusive Economic Zone (EEZ)

• Increase in fish catch > 50% can beanticipated off the coast in commensuration with increase in Phytoplankton production by 300% which is again associated with reduced snow cover across Eurasia in the short term

• Increase in temperaturemay reduce inlandfisheries potential of existing fish types

• Promote diversification of livelihoods forfishing folks to ensure livelihood security in the face of increasing intensities of coastal hazards

• Develop long term predictive modelingcapabilities

• Identifynativefishtoleranttohigherambienttemp and support fish farms that breed thermal resistant seeds

• MeasureandmapSeaSurfaceTemperature(SST), deep sea temperatures and chlorophyll concentrations to track fish off coast

• Enableeasieraccesstoinsuranceandcredits

• Enable access to mobile phones, satellitephones and community FM radio for avoiding disasters


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Impacts Strategies

• 10-20%increaseinprecipitationNorthEast(NE) monsoon projected

• Drainage and flood problems likely toexacerbate in lower parts of delta with increase in NE monsoon coupled with higher sea level rise

• GroundWater(GW)islikelytobecomemoresaline with sea water ingress due to sea level rise & increase in cyclone intensities during NE monsoon

• Decrease in South West (SW) monsoonprojected leading to increase in demand for irrigation water in upper basin

• GWdemandwillprobablyincrease

• Marginal increase in evapo-transpirationleading to increase in water demand by crops

• StrategiesforHills,PlainsandCoastalregions(through Research & Policy)

• Hills:Rainwaterharvestinginrechargezonesalong hilly slopes check dams, renovation of existing water bodies

• Plains:Increasereservoirstoragecapacities;transfer from excess to deficit basins, artificial recharge of over exploited (GW), limit GW extraction renovate and create small reservoirs

• Coasts : Construct and rehabilitate tail-endregulators. Install desalination water plants. Avoid seawater intrusion


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Impacts Strategies

• Biophysical modeling projects fragmentedforests in Tamil Nadu

• Forestthenwillbemoresusceptibletopestattacks and disease prone and will be at risk to frequent fires

• LossinsoilorganicCarbon

• Sea-levelrisewill leadtoincreaseinsalinityof wetlands.

• Higher SST and higher deep sea watertemperatures will lead to bleaching of corals

• NTFPlikely tobeaffectedandhenceaffectlivelihoods depending on the same

• Increase forest cover and restore degradedforests

• EnhanceBiodiversityConservationefforts

• Maintain plant biodiversity register in allvillages

• Undertakelowerstratadiversification

• Selectclimateresilientplantspeciessuitablefor future climate in various climatic zone of Tamil Nadu

• Manageforestfiresandalieninvasivespecies


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Impacts Strategies

• Longcoastalzonehighpopulationdensity

• Critical high value infrastructure in such aspower plants, desalinization plants, roads, high value housing, sea ports, airports and bridges across sea.

• Changesinclimateleadingtohighintensitycyclones, stronger storm surges, and extreme rain fall make these infrastructures vulnerable.

• Ecosystem services providedby the coastalzone extending up to 20 nautical miles into sea also supports livelihood of a large population.

• As temperatures increase agriculture,biodiversity of sea, fish catch and aqua culture will be adversely impacted

• Exacerbated hydro meteorological eventswill impact more areas inland

Develop a Tamil Nadu Integrated Coastal Protection Plan (TN-ICPP) to adapt to projected sea level rise, enhanced intensities of cyclones, storm surges, and extreme rainfall

• AvertCoastalerosion

• Strengthenresilienceofcoastalcommunities

• Avertsaltwaterandensurewatersecurity

• Conservebiodiversity

• Avert pollution of water and causedby industrial (power plants and other industries), domestic wastewater and solid waste

• Integrate climate change in disaster riskreduction and towards disaster mitigation


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Impacts Strategies

• Energy scarcity and increased demand, inlow supply scenario due to climate induced circumstances such as enhanced heat island effect, enhanced irrigation requirement due to wide scale droughts with far and in between heavy precipitation events

• If conventional energy usage is increasedthen there is a rise in Carbon Emissions.

• MinimizeTransmission&DistributionLosses

• Undertake efficiency and energy conser-vation improvements

• LaunchGreenVillagesandintroduceEnergyEfficient Homes

• Draft new building by laws incorporatingprinciples of Energy Conservation and Building Code (ECBC)

• Increasing Grid connected RenewableEnergy by 10,650 MW

• Encourage Off Grid Renewable Energydevelopment


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Impacts Strategies

• Population livingon riverandwatercourseslying below Mean Flow Levels will be submerged during flash floods causing loss of lives or properties.

• Shortfallindrinkingwater

• Haphazardurbandevelopment

• Increase in Heat related morbidity andmortality, Vector borne and Water borne diseases, Neurological diseases and disorders

• Increaseinpressureontransportsystemandenhanced consumption of energy and hence GHG emissions

• Housing :Implement Energy ConservationBuilding Code (ECBC) norms in commercial and residential sectors;

• Integrate design alternatives & alternateconstruction materials

• Water:Rainwaterharvesting;

• Urban Development : Developing Satellitetownships; green buildings; roof top garden; Greening of Urban spaces

• Health and Sanitation : Integrated healthmanagement system

• WasteManagement:SolidwasteandReuseof grey water

• Transport:Multi-tiertransport

• Pollution : Cleaner technology; zerodischarge; waste minimization

• Capacity building : Data base creation andawareness


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Existing Technical Institution in the State

Centre for Climate Change Adaptation Research, Anna University

Develop a scientific basis for understanding climate change issues

Support Research in Technical innovations

Undertake field implementation, Capacity building and Broadcasting of

Technical innovations

Develop a data bank on climate change

Support Research on policy and institutional innovations for addressing

climate change concerns

Demonstration of green and Environment Friendly Technologies

Support regular monitoring of critical environmental and landscape

parameters

Mainstream Traditional Knowledge

Support Creation of monitoring and evaluation tools

Undertake Capacity building activities to integrate climate change concerns in

management of natural resources

Develop a Climate Change Knowledge Portal

Climate Change Cell

Department of Environment, Govt. of Tamil Nadu

Tamil Nadu Mission on Knowledge Management


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Session - iii LOW CARBON GROWTH AND INVESTMENT IN

TAMILNADU - RESEARCH FINDINGS

Ms. Sujatha Srinivasan is a Researcher, Urban Infrastructure and Governance Group, Centre for Development Finance (CDF), Institute for Financial Management and Research (IFMR), Chennai.

Study objectives

� Facilitating increased availability of funds for low-carbon growth in TN

� Facilitating effective implementation of fiscal instruments for low carbon growth in Indian States

� Tracking of low-carbon policies in TN

� Mapping of current investments from various sources (public and private)

� Understanding barriers to financing

� Identification of State level climate financing needs

� Creating a baseline to analyze investment gaps, track change in investments over time, and draw conclusions about the efficacy of public subsidy to leverage private sector expenditure

Low carbon finance reporting is important for a comprehensive analysis of the relative levels of public and private investments and for serving as a benchmark to draw conclusions about the efficacy of public subsidy to leverage private sector expenditure

This exercise is also important for understanding the investment gaps that need to be filled in order to meet the low carbon targets proposed by the State.

Methodology

� Defining low-carbon finance

“Investment necessary to reduce Green House Gasses (GHG) and air pollutant emissions, without significantly reducing the production and consumption of non-energy goods” – International Monetary Fund (IMF)

� Components of low-carbon investment

Ø Supply factor (low-emission energy supply, carbon sequestration)

Ø Demand factor (energy efficiency in energy consuming sectors)

Ø Mixed factors (energy efficiency in electricity sector)

� Measuring low-carbon investment – Financial Year 2010-11 and 11-12

Ø Public expenditure (Departmental reports, meetings with govt. officials, and filing RTIs, Annual reports)

Ø Private expenditure (BNEF data on deal flows in RE)


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Step 1 : Defining low carbon investment

� According to a recent IMF Working Paper (Eyraud et. al. 2011), green investment is “the investment necessary to reduce greenhouse gas and air pollutant emissions, without significantly reducing the production and consumption of non-energy goods”. It includes both public and private investment.

� In defining what counts as low carbon investments, the focus has been on investments in renewable energy, energy efficiency, green construction, R & D. Controversial categories such as nuclear, carbon capture and sequestration (still in its infancy), and bio-fuels, Hydro-Power are not included for the purpose of this study. Expenditures which can be counted as more of day-to-day spending rather than investment are also excluded from the study.

Step 2 : Components and structure of low carbon investment

� In order to map out the options for low carbon growth, various national reports on best practices for low carbon technologies in India were referred. The main reports used for this exercise are the following- Interim Report of the Expert Group on Low Carbon Strategies for Inclusive Growth, Environment and Energy Sustainability: An Approach for India (McKinsey, 2009) and Low Carbon

Transformation : An imperative for the Indian Industry (Ernest and Young, 2011). The typology of mitigation activities considered in this study is in appendix I and is categorized under the following sectors- Power, Transport, Industry, Buildings, Forestry and Agriculture.

� Public expenditure includes Tamil Nadu Government Departments and PSUs

Low Carbon interventions – examples

I. Electricity (demand/supply)

• Rehabilitationof existing power plants to decrease GHG emissions

• Highefficiencyretrofitoftransmissionand distribution systems

• Smart grid investments aimed atsystem efficiencies

• Energy efficiency improvements inlighting, appliances, equipment

• Installation of energy efficient streetlighting

• Carbon capture implementation inexisting coal power plants

• Solarwaterheating

II. Other sources of energy• Construction of power generation

capacity from Solar Thermal & Solar PV, Wind, Biomass, Biogas, Hydro

III. Other activities

• Technicalcapacitybuilding

• Technicalassessmentstudies


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• Technical and financial feasibilitystudies

• Surveys,audits

• Awareness generation, informationsystems

In order to obtain an estimate of the budgetary expenditure on low carbon interventions in Tamil Nadu, relevant data has been sourced from Departmental reports (Policy Notes, Citizen’s Charter, Annual Reports public statements made by the Departments, Government of Tamil Nadu), meetings with Department officials and through filing Right to Information (RTI) queries for expenditure data on schemes. Public expenditure under all relevant Departments was analysed for the Financial Year 2010-11 and 2011-12.

The following Departments have been included for mapping low carbon investments in the State of Tamil Nadu :

1. Agriculture Department

2. Energy Department

3. Handlooms, Handicrafts, Textiles and Khadi Department

4. Industries Department

5. Municipal Administration and Water Supply Department

6. Transport Department

7. Environment and Forests Department

8. Micro, Small and Medium Enterprises Department

The following Public Sector Units (PSU) have been included for mapping low carbon investments in the State of Tamil Nadu :

1. Tamil Nadu Newsprint and Papers Limited (TNPL)

2. Tamil Nadu Industrial Development Corporation (TIDCO)

3. Tamil Nadu Industrial Investment Corporation Limited (TIIC)

4. Tamil Nadu Cements Corporation Limited (TANCEM)

5. State Industries Promotion Corporation of Tamil Nadu Ltd (SIPCOT)

Limitations

� Time lag between announcements and disbursements through schemes

� Absence of information on private sector energy efficiency projects and investments

� No project development timeframe

� Difficulty in comparing project level investments due to discrepancy in denominations and changing exchange rates

An issue while reporting low carbon finance in the State - that requires further investigation is the time lag between announcements and disbursements through schemes. Due to such time lags, the investment figure in this report is expected to be an over estimate of the actual low carbon public


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funding that was disbursed in Financial Year 2010-11 and 2011-12.

Certain limitations to the database include:

a) Absence of information on energy efficiency projects and investments

b) Unavailability of project development timeframes and breakdown of investments by financial year

c) Unavailability of investments by asset class in INR denomination renders it difficult to compare project level investments within the renewable sector

As a consequence, our private sector investment figures are only a conservative estimate of actual private investments towards GHG mitigation in the state

LONG TERM FINANCIAL REQUIREMENT

Vision 2023 SAPCCSector Cost estimates

(INR bn)Sector Cost Estimates

(INR bn)

Energy 3,900 Energy 292.19

Transport 2000 Agriculture 0.77

Agriculture 302 Forests and Biodiversity

6.23

Industry - Sustainable Habitats 12.87

Environment and Forest -

Total (2012-23) 6202 Total (2012-22) 312.06

Annual 564 Annual 31

Vision 2023 - Sector

� Energy - Ultra Mega Power Project, Liqufied Natural Gas Terminal, RE, T &D infra, smart grid.

� Transport - Using plastic waste for road laying, high speed rail, dedicated freight corridor, metro/mono rail

� Agriculture - Micro-irrigation, Parks,

Strengthening R & D, improving water source

� Industry - Industrial townships, aerospace and logistics park, SEZs

� Environment and Forest - Increasing forest cover, conserving biodiversity, recycling solid waste, mangrove plantation in coasts


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SAPCC - Sector� Energy - Reducing AT&C loss, conversion

to LED, CFL, increasing grid + off - grid RE

� Agriculture - Zero tillage, mulching, vermin composting, SRI, drip irrigation

� Forests and Biodiversity - Industrial plantation, agro/farm forestry, region specific tree plantation, urban forestry

� Sustainable Habitats - Implementing ECBC, waste management, efficient transport system, greening urban spaces

energy : investment needs (Vision 2023)

* ~ 355 bn per annum

energy: investment needs (SAPCC)

210

0.4 10 1.01 4 2 3 0.1 0.15 4 25 32.53

292.19

0 50 100 150 200 250 300 350

AT&C loss reduction

Mapping and auditing of

Implementation of audit

Mapping and auditing of

Conversion of streetlights

Conversion to green

Replacement of bulbs to

Awareness generation on

Drafting and

EfGiciency improvement

Increasing grid connected

Offgrid renewable energy

Total

* 290 bn for the 10 year period. ~29 bn per annum (only 8% of annual funding requirement proposed in Vision 2023)


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inFeRenCeS :

1. Inconsistencies in terms of proposed low carbon investments between vision document and SAPCC. The proposed RE investments in vision document is INR 800 bn whereas those in SAPCC are only 57.53 bn.

2. The RE investments constitute 20% of the proposed low carbon investments in the vision document and the potential low carbon investments constitute 87% of the overall planned investments in energy sector as per the vision document. Whereas for SAPCC the total planned investments for energy sector (RE+EE) is 292.19 bn which is much conservative than proposed RE expenditures in the vision document.

3. The SAPCC document aims to capitalize on low hanging fruits through inter-ventions such as AT&C loss reduction, conversion to LED, CFLs etc. This is obviously a good starting point before moving towards more sophisticated interventions like energy efficiency in industries through state of the art technologies.

4. Vision 2023 document anticipates that 30-40% of the funding requirements will be met by private sector, while the remaining (60%) is expected to be met through central/state sources. However, even in the energy sector for an increase

in renewable capacity by 10000 MW (proposed in both documents), SAPCC proposes only 6% of the per annum funding requirement proposed in Vision 2023.

5. The two planning documents (Vision and SAPCC) should complement each other to device low carbon interventions at the State level. For example- the vision document proposes a huge expenditure on LNG gas terminal and gas grid, which will facilitate the availability of an environment friendly low carbon fuel. Natural gas will serve as an efficient and environmentally friendly fuel to Power plants, fertiliser units, and Tamil Nadu’s industrial, domestic and transportation sectors. The SAPCC can complement the Vision Document by planning detailed strategies on how to utilize LNG across these sectors.

6. Financing strategies for the TN SAPCC: Most of the proposed interventions in the SAPCC (across key sectors mentioned above) can be dovetailed into already existing schemes that have been in place for the state of TN. The strategies mentioned above significantly overlap with existing schemes both instituted at the national and the state level. For example, the reduction of AT&C losses could be achieved through leveraging existing schemes such as Restructured Accelerated Power Development & Reform Programme (R-APDRP


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TAMIL NADU LOW CARBON INVESTMENTS (PUBLIC)

Sector Initiatives FY 10-11 (INR bn)

FY 11-12 (INR bn)

Energy RE (solar, wind, biomass, cogen) and Energy Efficiency

67.84 212.7

Transport Chennai Metro Rail 11.12 39.73

Agriculture Sustainable cultivation, soil conservation, groundwater recharge

1.01 1.68

Industry Energy conservation 0.57 0.75

Environment and Forest

Afforestation, regeneration, Waste management, R&D

2.44 2.7

Total 82.98 257.56

Source: Analysis by IFMR

Private Sector investment in Renewable energy:v 2010-11: INR 57.86 bn v 2011-12: INR 97.38 bn

ENERGY SECTOR INVESTMENT BREAKDOWNSectors FY 10-11 (INR bn) FY 11-12 (INR bn)Feed-in Tariffs 3.33 30.61 Capital Assistance (GoTN, GoI) 0.48 14.91 Modernization (GoTN, GoI - RAPDRP) 6.17 8.55 Wind evacuation infrastructure* 0 61.25 Assessment Studies 0.001025 Energy Efficiency 0.0074 0.0006 Total Public Investment 9.99 115.32 Private Investment 57.86 97.38 Total Investment 67.8453 212.70

*Energy Department Policy Notes 2011-12, 2012-13 – unclear if entire allocation is towards wind evacuation

Feed-in Tariff• Wind-0.58,23.69• Solar-0.01,0.09• Cogen-2.56,6.50• Biomass-0.18,0.33

Capital Assistance• Wind–0,0• Biomass-0.05,12.43• SmallHydro-0.09,0.15• Solar-0.31,2.31• Other-0.01,0.02


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Tamil Nadu Low Carbon Investments (Private)

Sector FY 10-11 (in INR bn) FY 11-12(in INR bn)Wind 52.42 94.96 Solar 0.97 1.03 Biomass, waste, cogen 4.47 1.39 Total 57.86 97.38

Source: BNEF data and IFMR analysis

Investment Gaps : Energy Efficiency

Savings Potential (2011-12) 11 Billion Units (BU) Key sectors Agricultural, Domestic, Industrial, Commercial

SAPCC focus areas Government buildings – 10.3 bn Street lighting – 5 bn Energy efficient homes initiative – 5 bn Industries (SME clusters) – 4 bn Awareness generation - .01 bn Buildings (domestic/commercial) - .15 bn

SAPCC Proposed investments for Energy efficiency and conservation

24.46 bn (2.5 bn per annum)

Current investments in Energy efficiency and conservation

0.004 bn per annum

� 40% growth in just 3 years, from 7.8 BU in 2008-09

� 18% of total energy consumption, exceeds national average

� Potential is particularly high in agricultural, domestic and industrial sectors� SAPCC proposed 10bn investment (1 bn per annum) towards LED street lighting and energy

efficient homes initiatives (CFL) – not sure if this will complement the existing schemes of solar powered green houses and solar powered street lights

Key Questions� How can we institutionalize state level climate finance tracking and reporting mechanisms� How do we design and implement market-based fiscal instruments to increase the availability

of funding for mitigation purposes� How can we overcome existing state-specific financing barriers and leverage opportunities

to promote a low carbon pathway in the state


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Session - iV BUDGETING FOR LOW CARBON TRANSPORT

Transport Strategies for Chennai, Coimbatore, Madurai, Trichy, Tiruppur and Salem Districts

Thiru James Clark Osborne, Senior Associate (Transport Policy), Institute for Transportation and Development Policy (ITDP), Adyar, Chennai.

What is Low Carbon Transport?

“… a strategy to provide economically viable infrastructure and operation that offers safe and secure access for both persons and goods whilst reducing short and long term negative impact on the local and global environment.”(Global Environmental Fund / World Bank)

institute for Transportation and Development Policy (iTDP) india� What does ITDP India mean by “sustainable”…

� Sustainable Development:

Ensure that [development] meets the needs of the present without compromising the ability of future generations to meet their own needs.


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Sustainability e’s

Sustainable Mobility Accessibility:

How many opportunities can you easily reach?

The extent to which the land use and transportation systems enable (groups of ) individuals to reach activities or destinations. It is measured in terms of the time, money, discomfort and risk that are required to reach such opportunities.

Mobility : How far can you go? How quickly can you

get there?

Sustainable Mobility : Maintaining the capability to provide non-

declining accessibility over time.

What is transportation for?“… The purpose of transportation is to

bring people or goods to the places that they are needed, and to concentrate the greatest variety of goods and people within a limited area, in order to widen the possibility of choice without making it necessary to travel.”(Lewis Mumford, 1964)

eMiSSion iMPACTS – TRAnSPoRT CoSTS

Chennai Trip Distribution by Mode

Chennai Mode Shift Patterns 1995-2008

Which modes generate the highest emissions?

Chennai mode share


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Chennai CO2 emission share

CO2 emissions per passenger km

Construction emissions (CO2 t/km)

Reducing emissions � Metro can slow the growth rate in

emissions if electricity is obtained from clean sources. But much more is needed.

� Key mechanisms for addressing transport emissions:

– Change development control regulations to encourage higher density, mixed use development near public transport

– Low cost public transport : Bus Rapid Transit (BRT) & bus fleet expansion

– Walking and cycling improvements– Travel demand management

� An effective low-carbon strategy for transport must reduce use of personal motor vehicles

Carbon reduction strategies

Activity Emissions reduction potential

Cost Implementing agency

Trip reduction through land use policy change High CMDA

Non-motorised transport improvements High COC, Highways, TNRDC

Bus fleet expansion High MTC

Rapid transit Low-High* * CMRL, Transport Dept, etc.

Vehicle technology Moderate RTO, Transport Dept., Centre

Road expansion, elevated corridors Only temporary COC, Highways Dept., TNRDC

* Depending on mode, fuel / electricity source.


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TRAnSPoRT SCenARioS

Sustainable Cities through Transport The CMA in conjunction with ITDP and ICLEI sponsored Sustainable Cities through Transport

project to develop municipal transport budgets for Tamil Nadu Cities.

Project ObjectiveTo achieve a more equitable allocation of road space by incorporating sustainable transport

as an essential parameter at planning and budgeting stages.

Sustainable Cities through Transport Strategic planning for transport systems that are equitable, cost-effective, and environmentally

friendly

Support from :


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Key role of land use policy� Benefits of compact, mixed land use:

– Fewer, shorter trips

– Trips that do occur can use sustainable modes

� Required reforms in land use plans and development control regulations:

– Allow higher densities along high capacity rapid transit corridors

– Reduce off-street parking provision

– Urban design improvements: active edges, pedestrian friendly street network, etc.

� Finance for infrastructure improvements through development charges

Annual Co2 reductions from identified projects

Avoided CO2 emissions: 828,368 t/yr (39% below status quo emissions)

Financing requirements in perspective

Conclusions

� Urban growth policies e.g. urban planning offer significant reduction in CO2 emissions when integrated with urban transport plans.

� Non-motorized transport, besides emission reduction provides social equity and should be given priority.

� Focusing on public transport measures such as BRTS and Metro can offer significant reductions.

– Metro rail may increase CO2 emissions from city transport due to higher grid emission factor in India and high auxiliary energy consumption especially in well to wheel boundaries.

� Travel demand management: reduce off-street parking provision

� Road network improvements provide only temporary CO2 reductions due to induced and rebound effect.


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Mode Shift 2013 – 2018

Goal PT to achieve 60% motorized modes

enhancing Bus Fleet & Quality


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Session - VPOTENTIAL FOR CONGESTION TAX IN

CHENNAI – RESEARCH FINDINGS Dr. Haripriya Gundimeda, Professor, Indian Institute of Technology Bombay, Mumbai

"Can Congestion charge help in decongesting Chennai and enable shift to a low carbon economy?"

The Situation � Chennai’s vehicle population 600,000 in 1992, to 1.3 million in 2001 and 3.64 million in 2012.

� Daily addition to roads – 1500 vehicles

� Two wheelers comprise 75%

� 1 vehicle for every 2 Chennaites

� Percentage of population using public transport – 40%

� Average bus speed in the city – 17 – 18 kms per hour

� Maximum allowable – 80 km per hour

Traffic in Nungambakkam, Villivakkam, Annasalai

NUNGAMBAKKAM


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VILLIVAKKAM

ANNASALAI


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Why this occurs?� Passengers do not perceive the true, total, costs of using cars, or trucks, at the time they

make their travel decisions

� They therefore use their car, or truck, more than is economically efficient

� That can lead to increased congestion

� And impose extra costs on other road users, as well as the community in general

Cost of this congestion

Individual - Private � Fuel cost � Opportunity cost of time

Environment � Emissions CO2, CO, NOx, SPM

Society

� Well-being � Less time available with family � Health costs

off-peak delays

Distance Time Taken

Average Vehicle Speed

Running Speed

Avg. Delay

Anna Salai Towards Guindy 14 1886 36 26 525

Anna Salai Towards Parrys 13 2247 24 20 373

Periyar EVR Salai Towards Koyambedu 9.5 1671 26 20 374

Periyar EVR Salai Towards Parrys 9.5 1967 24 17 541

Chamiers Road Towards Mandaveli 1.2 625 12 7 269

Chamiers Road Towards Anna Salai 1.2 353 16 12 90

Kathivakkam High Road Towards Tiruvottriyur High Road

5.8 1664 17 13 453

Kathivakkam High Road Towards Basin Bridge 5.8 1677 14 12 230

Jawaharlal Nehru Road Towards Madhavaram 18 2275 503 28 36

Jawaharlal Nehru Road Towards Alandur 18 2258 445 28 35

Sardar Patel Road Towards Adyar 3.4 282 20 43 47

Sardar Patel Road Towards Guindy 3.6 483 42 27 29


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Peak time delays

Distance Time Taken

Time Taken

Running Speed

Actual Speed

Avg. Delay

Anna Salai Towards Guindy 13.5 1 1685 37 29 377Anna Salai Towards Parrys 12.6 1 1967 29 23 405

Periyar EVR Salai Towards Koyambedu 9.5 1 1407 29 24 236

Periyar EVR Salai Towards Parrys 9.5 1 1516 28 23 297

Chamiers Road Towards Mandaveli 1.2 1 297 29 15 147

Chamiers Road Towards Anna Salai 1.2 1 321 25 13 146

Kathivakkam High Road Towards Tiruvottriyur High Road

5.8 1 1496 18 14 331

Kathivakkam High Road Towards Basin Bridge 5.8 1 1558 17 13 362

Jawaharlal Nehru Road Towards Madhavaram 17.6 1 2819 869 22 32

Jawaharlal Nehru Road Towards Alandur 17.6 1 2762 764 23 32

Sardar Patel Road Towards Adyar 3.4 1 611 106 20 24

Sardar Patel Road Towards Guindy 3.6 1 525 59 25 28

economic background

Public transportation alternatives

I. MRTS System1. Chennai Beach – Velachery 2. Velachery – St. Thomas Mount (under

construction)

3. Thiruvanmiyur – Mamallapuram (Proposed)

4. MRTS system forming a ring around the city


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II. Metro Railway

� Two corridors – Phase I1. Washermanpet – Chennai

International Airport (under construction)

2. Chennai Central – St. Thomas Mount (Under construction)

� Corridor 3 – Moolakadai – Thiruvanmiyur (Planned)

� Corridor 4 : Moolakadai – Mogappair (Planned)

� Mylapore – Poonamallee (Planned)

III. Buses – Extensive coverage

IV. Autos

Alternative economic instruments

I. Fuel Tax (Petrol/Diesel Tax)

� Increase the cost of private transport

� However does not vive individual flexibility.

II. Differential Parking Fee

� Differentiate by type, time of the day

� Once again is not very flexible and is limited to certain areas alone

III. Congestion zone charges

IV. Carbon tax based on the carbon emissions

V. Inflexible and does not lead to reduction in congestion

VI. One time pollution tax – but this does not again change the individual behavior

Congestion Pricing

The basic principle of Congestion Pricing is to impose additional charges, at the time of travel, to reflect the full community costs of the journey at that location and at that time

other names : � Road user charging

� Road pricing

� Congestion charge

� Congestion tax

� Other specific terms e.g. road tolling, value pricing, variable pricing and peak period pricing

What is the optimal Level of Congestion� Distance of highway

� Monetary travel costs/mile

� Opportunity cost/mile

� Demand for travel: The marginal willingness to pay of the marginal traveler


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Efficient Congestion Charge

� Charges may vary between peak and off-peak travel and for the type of vehicle

� Further varies on the number of zones vehicle travels

How does a Congestion Tax Reduces Traffic Volume and carbon emissions?

� Encourage carpooling, van pooling

� Change the time of travels

� Encourages individuals to switch to less congested routes

Why countries are interested in congestion pricing?

� Congestion Pricing effective in alleviating traffic congestion

� Failure of alternative policies to cope with the growth of traffic congestion

� Reducing environmental impacts

� Revenue generation for new transportation projects

� More flexible in comparison with a carbon tax

� People who continue using the charged road pay the tax, but have lower travel costs

� People who stop using the charge road do not pay the tax, but forgo the benefits from using the highway

� Generates revenue

� However, marred by several barriers

inTeRnATionAL exPeRienCeSi. Singapore

� 1975 - the Area Licensing Scheme (ALS)

� 1998 - Replaced by Electronic Road Pricing (ERP)

ii. norway� Toll rings were installed to raise revenue

� Bergen in 1986

� Oslo in 1990

� Trondheim in 1991

iii. London� February 17, 2003 – Congestion Pricing

Hong Kong, Netherlands, Sweden, USA, AUS, and other cities in Britain all have moved towards or in experimental phases.

Singapore’s Road Pricing

� First country to introduce urban road user charging.


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objective

� Restrict traffic at peak periods into the Central Business District in order to alleviate congestion.

implementation� Initially, the system applied was Area-

Licensing Scheme (ALS).

� In 1998, the ALS was replaced by Electronic Road Pricing (ERP).

� The tolls would be varied according to the average speed on the network.

� Prices applied under ERP are subject to maintain traffic speeds of 45 - 65 km/h on expressways and 20 - 30 km/h on arterial roads.

norwegian’s Cordon Systems

� Cordon pricing schemes

1. Bergen in 1986

2. Oslo in 1990

3. Trondheim in 1991

� The main objective of the toll rings was to raise revenue to finance road projects and, to a lesser extent, public transport.

� The scheme was not designed to reduce traffic.

� Nevertheless, some impacts on travel behaviour and traffic volume were found.

� The lesson from Oslo shows that acceptance has increased over time after implementation.

Some Basic Statistics for London

� Population of Greater London: 7.5 million

� Central London commuters: 1 million+

� 85% of central London commuters use public transport

� 40,000 vehicles enter central London per hour in the morning peak

� 250,000 vehicles enter central London between 07.00 and 18.30 hours

� Average traffic speed in central London: 16 km/h

London Congestion Charging � Bounded by the Inner Ring Road

� 7:00 - 18:30, Mon - Fri, excluding Public Holidays

� £5 per vehicle per day (£8 from 4 June 2005)

� Discount for e.g. residents who live in the zone, disabled people, taxis, coaches and minibuses

� Exempt for e.g. emergency services on behalf of the NHS, police, fire, ambulance

See Transport for London Web site (www.tfl.gov.uk) - Started on 17 February 2003


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objectives� Reduce traffic congestion

� Increase journey time reliability

� Decrease of air pollution

The Charged Area within London

21 sq km – 1.3% of Greater London

The Charged Area


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Payment and enforcement� Payment requires recording vehicle

licence number;

P held on data base

P checked against licence plates of vehicles observed within the charged area, using camera based Automatic Number Plate Recognition

P Penalty for non-payment is £80 (€110)

� Persistent offenders’ vehicles can be clamped or removed

� 203 fixed enforcement camera sites

P on boundary of charged area at entries and exits

P within charged area

� 10 mobile patrol units

� Cameras record licence plate

P and context (in colour) to help identify vehicle in case of ANPR failure/query or challenge of a penalty notice

Some exemptions and Discounts

� No discounts and limited exemptions

P emergency vehicles

P taxis

P buses

P motor cycles

P mobility impaired users, exempt annual vehicle excise duty

� 90% discount for residents of charged area

� full exemptions for

P low emission vehicles

P local authority vehicles

How to Pay?

� Online

� By phone

� By mobile phone text messaging

� At retail outlets

� By self service machine

� By post

� By account, for fleet operators

� By midnight on the day of travel

P payment in arrears is possible, but the charge increases to £10 (€14) when paid after 22:00 hrs.

London Congestion Charging

Impacts

- 15 % traffic reduction

- 30% congestion reduction

- 12% pollution reduction (NOx, PM10)

- Journeys had become more reliable

- Buses significantly gain in reliability

- Substantial reductions in road traffic accidents

- No evidence of any significant adverse traffic impacts from the scheme outside the zone


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The Costs and Revenues

Based on 8 years, 2000/2008� design and implementation

� 5 years of operation

� Net Present Values (NPVs)

Start Up Costs : €250 million

Operating Costs : €450 million

Charge Revenues : €970 million

Penalty Revenues : €155 million

Net Revenues : €425 million

But, costs exclude

� bus service improvements

� additional net bus operating costs

Conclusions� Congestion pricing is efficient and

environmentally beneficial available tool for heavily congested cities like Chennai

� Need to be substituted by other policies too – cheaper public transport, improved communication system


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� Improvement in public transport and other alternative modes

� Improved land use planning

� More usages of intelligent transport systems.

� However, there should be extensive public awareness

Recommended Alternatives for Chennai

� We propose a dedicated express lane for congestion pricing

� The price can be actively differentiated by the time of the day

� Trial run for the heavily congested road in Chennai (Anna Salai) and then extends to other congested roads.

� Cameras already located at different points

� The maximum volume of traffic is found near Anna Salai- Saidapet Bridge (1,75,051 vehicles in 24 hour period) – Chennai Comprehensive Transportation Study

� We propose (for one congestion unit)

� Rs. 20/- - for a fixed peak time (09:30-10:00, 18:30-19:00)

� Rs. 15/- for 09:00 – 09:30, 18:00-18:30

� Rs. 10/- for 10:00 – 10:30, 19:00-19:30

� Fee to be revised based on the reduction in traffic volume

� However, we need to carry out a detailed survey on demand elasticity – inelastic and elastic consumers and separate out their preferences

Steps towards congestion pricing

� Complicated due to detailed information required

� Passengers should be able to see the substantial difference – otherwise not effective

� Smart cards

� Automated license plate scanner

� Express lanes

� Objective should be carbon reduction rather than revenue generation

� Earmarking the revenues for investing in public infrastructure

� Need to convince people of the real costs of congestion


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ROUNDTABLE DISCUSSION “Fiscal Instruments to Promote Low Carbon Growth in Tamil Nadu”

Presentation: 1 – Climate Policy and Finance at the National and Sub –National level in India – by Dr.Koyel Mandal, Programme Head, Centre for Development Finance, IFMR, Chennai.

Dr. Koyel Mandal, Senior Research Manager, Centre for Development Finance, IFMR, Chennai in his presentation he clarified that though climate adaptation is equally important in the Indian context, the workshop was focused primarily on mitigation and will facilitate discussion on the implementation of low carbon plans and overcoming the related challenges. He mentioned the need for low carbon investment mapping which includes setting a baseline, comparing with long term requirements, identifying gaps etc. He explained in detail about the National Development Plans on Climate Change and also discussed about the various programmes implemented under National Action Plan of Climate Change (NAPCC) and State Level Action Plan for Climate Change (SAPCC) which helps for the identification of measures that promote development objectives and also yields co-benefits for addressing climate change effectively. He presented the broad sources of climate finance in India with some numbers on private and international climate funds for India.

observations on the Presentation

The Principal Secretary to Government, Planning, Development and Special Initiatives Department (Planning and Development) questioned about various kinds of funding available with the Steering Committee for SAPCC and Dr.Koyel Mandal mentioned that talks regarding the financing of SAPCCs are on-going and will most likely be streamlined through annual plan outlays from Centre to States. He also mentioned that the Green Corridor for wind power generation will be funded by National Clean Energy Fund (NCEF). He insisted that there is a need for the analysis of investment gaps.

The Vice Chairman, State Planning Commission (SPC) questioned about other countries which have been able to implement robust mitigation plans. Dr. Koyel Mandal replied that some of the European Union countries and Australia to some extent are doing well in this aspect.

The Secretary to Government, Highways and Minor Ports Department stated that generally for all taxes the collection is first directed to State Exchequer and then utilized for various purposes. There is no 1 : 1 ratio maintained for collection of tax and disbursement for activities. Tamil Nadu State is


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trying to mobilize resources through NCEF, but the funding for that has still not come through. State is going ahead with green corridor using state funding.

The Principal Secretary PD&SI, emphasized that low carbon efforts need to come across as voluntary instead of binding commitments. He also suggested the levy of a small (INR 1, for example) tax on petrol and diesel to generate funds for implementing low carbon activities in the State. The amount is small and individuals wouldn’t find it onerous, but this could lead to huge revenues for the State.

The Director Finance, CMRL suggested that incentives may be given for Green Buildings using Solar Energy Panels.

The Secretary to Government, Energy Department Secretary Energy (SE) highlighted the importance of finding the percentage of green energy consumption as a percentage of total energy consumption. The Highways and Minor Ports Department Secretary mentioned that globally the percentage of renewable power generation is about 25% of the total grid power. This is primarily due to the cost constraints and practical issues in scaling them up. He has also mentioned that INR 1-2 CESS on petrol and diesel is dedicated towards development of roads, highways, inter- connectivity and to create conditions for better roads. The total amount collected through

this fund is huge. However, the state is a not a beneficiary of the funds mobilized through the collection of this cess.

Dr. Koyel Mandal asked for suggestions on how to design a fund which can be used entirely for climate change activities in the State of Tamil Nadu, say a Tamil Nadu State Climate Change Fund. The Principal Secretary PD&SI, in response said that it is a policy call and suggested that it is not just a matter of finance, but both regulation and policy backing needs to be strong. However, the design of the fund is a key in order to ensure dedicated funds for climate change activities.

The Highways and Minor Ports Depart-ment Secretary highlighted the difficulty with relying on market based mechanism for implementing low carbon interventions. He stated that the scheme related to distribution of CFL bulbs was to be backed by CDM funding, state government even committed to providing a 100% subsidy for the implementation of the scheme. However, because the CDM markets crashed, the entire scheme collapsed. It was also discussed about the road policies - developments of roads, central road inter commodity and Central Road Safety Funds and the fatalities in India. It was also observed that the total amount credited is huge but not fully given to states/stakeholders. In this context, the Principal Secretary PD&SI, opined that every policy frame work has limitation


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for the effective fund mechanism. Unless the regulation is strong, fund mechanism will remain weak.

Presentation : 2 – Salient features of the Tamil Nadu State Action Plan for Climate Change (TNSAPCC) –by Dr. H. Malleshappa, I.F.S., Director of Environment, Tamil Nadu.

The Presentation elaborated on the salient features of the draft report on Tamil Nadu State Action Plan for Climate Change (TNSAPCC). In his presentation the Director of Environment (DOE) explained about the objectives of SAPCC and displayed the observed range of climate change with respect to the base year from 1971-2000. He also discussed about the Impacts of Climate Change and short and long term adaptation strategies in various sectoral groups of Sustainable Agriculture, Animal Husbandry, Fisheries, Forest and Biodiversity, Water Resources, Coastal Area Management and Sustainable Habitat Power and Renewable Energy, Knowledge and Management which are identified for TNSAPCC. He stated that it is proposed to develop a Climate Change Knowledge Portal. In this climate change development portal any department can easily access the information on various technical aspects of Climate Change, including their discrimination through trainings. The budget for adaptation strategies for the above sectoral groups in 12th FYP and 13th FYP were also displayed.


The Energy Department Secretary ques-tioned that how much of the budget is from Climate Change. It was suggested that the issues and activities need to be addressed and how much finance requirements are needed for the 12th and 13th Five Year Plan period.

The Principal Secretary PD & SI, Depart-

ment observed that most of the proposed interventions are an extension of what is already being done in the State. There is a disconnection between the scientific economic analysis and the proposed actions.

The Vice Chairman, SPC pointed out that

the SAPCC numbers are too conservative.

The Highways and Minor Ports Depart-ment Secretary acknowledged the idea of a knowledge portal envisioned under the mission for strategic knowledge management. He suggested that each dept. should have its own communication cell for knowledge sharing.

The Commissioner, Chennai Corporation, highlighted the importance of taking inspiration from how international donor projects work and emulating the (good management and practices) Externally Aided Projects’ (EAPs’). He pointed out that donors show keen interest in climate related actions.


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Project wise approach gains more traction and working with other departments will become easier using this approach instead of the schematic approach.

The Principal Secretary PD&SI mentioned that under climate change, each intervention can’t be categorized into projects. He stated that a clear demarcation of implementation plan and supporting policies and regulations is required. Hence there is need for suitable management and technical capability.

The Vice Chairman, SPC suggested the

DOE that taking all these points into consideration an ultimate action plan should be formulated and projects taken should be specific to Climate Change. The VC, SPC also suggested that the Draft SAPCC may be circulated to all the Secretaries to get their ideas and detailed comments to incorporate in the action plan. The VC, SPC suggested that each department should have cell for climate change issues.

Presentation: 3 – Low Carbon Growth and Investment in Tamil Nadu Research findings – by Ms. Sujatha Srinivasan, IFMR, Chennai.

Ms. Sujatha Srinivasan elaborated the objectives and methodology of the research study on Low Carbon Growth and Investment in Tamil Nadu conducted by IFMR. She stated that Low carbon finance reporting is important for a comprehensive analysis of the relative

levels of public and private investments and for serving as a benchmark to draw conclusions about the efficacy of public subsidy to leverage private sector expenditure. This exercise is also important for understanding the investment gaps that need to be filled in order to meet the low carbon targets proposed by the State.

She also stated that in order to map out the options for low carbon growth, various national reports on best practices for low carbon technologies in India were referred. The typology of mitigation activities considered in this study is categorized under the following sectors viz., Power, Transport, Industry, Buildings, Forestry and Agriculture. Public expenditure includes State Government Departments and PSUs. Certain limitations were also discussed during the presentation mainly about the time lag between announcements and disbursements through schemes and certain other limitations to the database like absence of information on energy efficiency projects and investments. She stated that the long term investment requirements were taken from Vision 2023 and SAPCC documents.


The Principal Secretary PD&SI pointed out that the second part of the vision 2023, having detailed cost estimates, have been released recently and is available online. He also emphasized the importance of better and


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improved reporting of investments especially low carbon investments on the govt. websites to help track progress. He also recommended the idea of incorporating new accounting heads to track green investments in the State.

Presentation: 4 – Overview of Low Carbon Growth in Tamil Nadu - Transport sector – by Thiru. James Clark Osborne, Senior Associate (Transport Policy) at the Institute for Transportation and Development Policy (ITDP), Chennai

James Clark Osborne, elaborated the budgeting for Low Carbon Transport taking examples from Tamil Nadu cities namely - Chennai, Coimbatore, Madurai, Salem, Trichy and Tiruppur. With the help of figures they highlighted the fact that cars and two wheelers are increasing exponentially in number and two-wheelers saw higher growth than cars. They also mentioned that although constituting only 50% of the overall mode share cars and two-wheelers emit 70% of GHGs emitted from all modes of transport in Chennai. They suggested changing development control regulations, introducing low cost public transport like Bus Rapid Transit System (BRTS) and non-motorized transport like cycling and walking to reduce GHG emissions. According to them various steps in developing sustainable city transportation plans include setting mode share goals, identifying projects to achieve those goals, implementing the projects etc. They underscored that the

lowest hanging fruit in Indian context is the management of on-street parking. With the caveat that road network improvements only provide temporary emission reductions due to induced and rebound effect.

Presentation: 5 – Potential for Congestion Tax in Chennai: Presentation of Research Findings- by Dr. Haripriya Gundimeda, Professor, Indian Institute of Technology, Bombay.

In her presentation, Dr. Haripriya set the context with relevant numbers for Chennai. She mentioned that while commuting, passengers don’t perceive the total costs of using cars. She stated the actual cost of congestion is not only the fuel cost but also the opportunity cost of time lost in the congestion. There are alternative instruments for reducing congestion like increasing the fuel tax to increase the cost of private transport, differential parking fees, congestion zone charges etc. While imposing congestion charge the optimal charge depends on the distance of the road stretch, monetary value of time etc. Several countries have these charges in different forms like Singapore’s road pricing, Norwegian Cordon System, London Congestion Charges etc. She briefly explained each of them and mentioned that discounts are available for private vehicles which are environment friendly. It was highlighted that these charges should be supplemented by cheaper public transport, improved land use planning, usages


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of intelligent transport systems and finally there should be extensive public awareness. Her suggestion for Chennai was to select a dedicated expressway for congestion charge. In this case it can be Anna Salai as it is the most congested. The price can be differential based on the time of day. She suggested three prices viz. INR 20, 15 and 10 based on the peak and off-peak hours and mentioned that based on the effect on congestion and traffic speeds the prices can be altered. Various requirements for levying a congestion charge are detailed traffic data collection, perceived difference on journey speed and time, dedicated express lanes, smart cards, automated license plate scanner etc. The revenue should be earmarked for improving public infrastructure.

observations on the Presentation :

The Secretary to Government, High-ways and Minor Ports Department suggested that congestion pricing needs to be looked at in the overall context of transport reforms and low carbon transport in the city of Chennai. There are also other important issues such as parking and footpaths that need focus.

The Commissioner, Transport Department

emphasized that it is high time the State Govt. plan for dedicated corridors and the introduction of Bus Rapid Transit System (BRTS).

The Commissioner, Corporation of Chennai, stated that a Parking Policy is already

being announced. The on-street and off-street parking areas are demarcated properly. He also mentioned the Corporation’s efforts in introducing an intelligent transport system. He pointed out the importance of proper regulation and enforcement to create more parking areas in the city. The example of Mumbai’s comprehensive Parking Policy was put forward by him. He suggested the introduction of a parking charge on similar lines. For transportation, taking an integrated approach is necessary and Chennai should follow Singapore in coming up with some sort of licensing and auctioning to help market take care of itself. He also mentioned about the adverse health impacts of RSPM from vehicular emissions.

The Vice Chairman, SPC suggested a limit on the number of cars owned by a family to reduce congestion.

The Commissioner, Corporation of Chennai mentioned about Corporation’s efforts in introducing cycling tracks, encouraging pedestrians to walk by creating footpaths despite huge protest from car owners and traffic police.

One of the workshop participants, a professor from IIT Madras, mentioned the importance of transportation engineers and experts and suggested their inclusion in the system to enable a comprehensive planning.


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After presentation the following observations and suggestions were made:

• BRTS:Itwassuggestedthatthisisahightime to introduce BRTS to shift people from private to public transport system. BRTS if designed well and rolled out it will be very effective and has lowest carbon foot print. It was also suggested that cycling paths, shared cycles, dedicated waling wide footpaths to pedestrians and this will be healthy and safety. And there is a need to address the basic issues in Highways and arterial roads. All Departments should sensitize strong policy decision to promote cycling.

• Effective Tolling policy should beimplemented.

• TheCommissioner,ChennaiCorporationdiscussed the effective parking policy should be adapted with designated parking area. The Chennai Corporation aims for the draft parking policy with the designated parking area. It was suggested that the collection of parking fees should be privatized. The present enforcement machinery lacks of shortage of police and manpower. It was also observed that regulatory measures have to be taken for the models of licenses.

• Itwasobservedthatthepollutionleveliscritical today and pollution is the main cause for the diseases like respiratory diseases, diabetic, hypertension,

• It was suggested that there is a needfor more traffic engineers and panel specialists. Recruitments may be made from IIT Madras and specialist in CUMPT and other agencies for continuous monitoring and management.

• The Vice-Chairman, SPC stated thatthe role of SPC is to bring all the policy makers and implementing departments together in a platform and make recommendations. Regarding the discussion about the transport engineers, the VC, SPC suggested that there is a need of political will to take the idea forward. The holistic programme focus to bring all the information together and inputs should be given in such a way that all these relevant point is politically saleable. She quoted an example of success story of Rainwater Harvest which was executed within the time frame and which contributed much political benefits.

• The Vice-Chairman, SPC concludedstating the importance of policies and regulations. She mentioned that SPC will send all the suggestions that came from the entire workshop to the Government.

Conclusions


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Action points and issues for further consideration that emerged from the roundtable discussion

• It would be useful to have a similarworkshop, perhaps with participation from the climate finance unit, Ministry of Finance to understand the role of the Central Govt. in funding the SAPCCs and the manner in which it will be done.

• Generally, for all taxes the collection isfirst directed to State Exchequer and then utilized for various purposes. There is no 1: 1 ratio maintained for collection of tax and disbursement for activities. However, the creation of a dedicated State Climate Change Fund is a policy call. Several funding mechanisms, such as a fuel surcharge on petrol and diesel can be used for the creation of such a fund. The key is to design such a fund in a manner that the funds are utilized specifically for climate change activities. In addition to finance, regulation and policy backing needs to be strong.

• ThedraftSAPCCforTamilNaduneedstobemore specific to climate change and has to be drawn from the mitigation and climate vulnerability analysis conducted for the State. The cost estimates need to be more robust. There should be a project-based approach to addressing climate change as opposed to a schematic approach. This would ensure greater participation among departments and with international donors, and will also bring in technical and managerial expertise. There needs to be a

Recommendations

clear demarcation between implementable projects and supporting policies and regulations.

• The Department of Environment, TamilNadu was requested to circulate the draft SAPCC to various Departments and incorporate their feedback.

• The importance of better and improvedreporting of low-carbon expenditure by the State was recognized. The idea of incorporating new accounting heads to track green investments in the State was considered.

• IFMR was requested to send the climateexpenditure data that they have collected to the various Departments for vetting.

• Theissueoftransportationreformandlowcarbon transport for the city of Chennai needs to be examined in an integrated manner. Parking reform, road safety, and issues of public health related to vehicular emissions need to be addressed first. Dedicated corridors, BRTS and congestion pricing are effective mechanisms that could be looked at as second generation reforms. Some of these issues in the transportation sector will be taken up separately in future workshops.

Further the Vice Chairman, SPC has stated that SPC is happy to organize workshops to share the discomforts of different sectors. She requested the Secretaries and each presenter to tell the next step.


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List of Participants

Sl.No. Name and Designation

1 Tmt. Santha Sheela Nair, I.A.S.(Retd.),Vice Chairman, State Planning Commission,Chepauk, Chennai.

2 Thiru. S. Krishnan, I.A.S.,Principal Secretary (Planning & Development),Planning Development and Special Initiatives Department, Secretariat, Chennai.

3 Thiru. Rajeev Ranjan, I.A.S.,Principal Secretary to Government,Highways and Minor Ports Department,Secretariat, Chennai.

4 Thiru. Vikram Kapur, I.A.S.,Principal Secretary / Commissioner,Corporation of Chennai, Chennai.

5 Dr. T. Prabhakara Rao, I.A.S.,Principal Secretary / Commissioner,State Transport Authority (Commissionerate of Transport), Chepauk, Chennai.

6 Thiru. Syed Muzammil Abbas, I.F.S.,Special Secretary to Government.Environment and Forest Department.Secretariat, Chennai.

7 Thiru. Rajesh Lakhoni, I.A.S., Secretary to Government,Energy Department,Secretariat, Chennai.


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8 Thiru. Sudeep Jain, I.A.S.,Chairman and Managing Director, Tamil Nadu Energy Development Agency,Chennai.

9 Dr. Sugato Dutt, I.F.S.,Member Secretary (i/c), Head of Division (Land Use),State Planning Commission,Chepauk, Chennai.

10 Thiru. Ashok Upreti, I.F.S.Chief Conservator of Forest,(Planning and Development)Department of Forest, Chennai.

11 Dr. H. Malleshappa, I.F.S.,Director of Environment,Panagal Building, Chennai.

12 Thiru V. Mohan,Assistant Engineer,Directorate of Environment, Panagal Building, Chennai.

13 Thiru. R. Radhakrishnan,Joint Transport Commissioner,Transport Commission, Chennai.

14 Dr.S. Chinnaraj,Assistant General Manager (R&D),Tamil Nadu Newsprint and Paper’s Ltd., Chennai.

15 Thiru. R. Kumar,Additional Chief Environment Engineer,Tamil Nadu Pollution Control Board, Chennai.


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16 Tmt M. Geetha,Senior Planner,Chennai Metropolitan Development Authority, Chennai.

17 Dr. Gitakrishnan Ramadurai,Assistant Professor,Department. of Civil Engineering, IIT Madras, Chennai.

18 Thiru Jamie OsborneTransport Policy, Institute of Transportation & Development Policy (ITDP),Chennai.

19 Thiru Christopher Kost,Technical Director, ITDP, Chennai

20 Tmt Haripriya Gundimeda,Professor, IIT Bombay, Mumbai

21 Dr. Uma Ramachandran.GIZ, Chennai.

22 Ms. Sujatha Srinivasan,Researcher, Centre for Development Finance (CDF), Institute for Financial Management & Research (IFMR), Chennai.

23 Thiru. V. Subramani,Advisor, CDFIFMR, Chennai.

24 Thiru. Vivek Venkataramani,Researcher, CDF,IFMR, Chennai.

25 Thiru. Chayan Bandyo Padhyay,Research Associate, CDF,IFMR, Chennai.


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26 Ms. Sunanda RathiResearch Associate, CDF,IFMR, Chennai.

27 Thiru. Rajesh Rangarajan,CDF, IFMR, Chennai.

28 Thiru. G.K. Jayaprakash,Head Electrical,Tidle Park, Chennai.

29 Thiru. R. Selvarajan,Head of Division (RD&DP),State Planning Commission, Chennai

30 Dr. K.R. JahanmohanHead of Division (APP), State Planning Commission, Chennai

31 Thiru. T.S. Muthukumar,Head of Division (PC),State Planning Commission, Chennai

32 Tmt. K. Jayagandhi,Head of Division (HSW),State Planning Commission, Chennai

33 Thiru. B. Hariharadoss,Head of Division (IPT),State Planning Commission, Chennai

34 Thiru. R.K.Haroon,Senior Planning Officer (APP),State Planning Commission, Chennai


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Documents

Fiscal Instruments to Promote Low Carbon Growth in Tamil …financial instruments/tools, the Tamil Nadu State Planning Commission and the Institute for Financial Management & Research,