International Journal of Environmental Sciences

Volume 5 Issue 1 2014- July 2014    Pages: 98-116  <<Previous    Next>>

Financing low carbon urban development through clean development mechanism

Author Information:

Bhaskar Padigala, Sunil Kraleti

Faculty of Sustainable Environment and Climate Change, Center For Environmental Planning & Technology University, Ahmedabad-380009, India

ABSTRACT

With expected increase in urban population from 300 million to 700 million in next 40 years, India is poised to experience one of the most remarkable transformations of the human settlements in the history. But with increasing urban population, demand for energy, infrastructure and financial services in urban centers will also increase, making Indian cities and urban agglomerations global hotspots for GHG’s emissions.   

Undeniably, sustainable and low carbon urban development has become an urgent need for the rapidly urbanizing developing countries to tackle issues like climate change mitigation, resource scarcity and local environmental issues etc. But, low carbon infrastructure initiatives often come at a significant cost but, the level of investments required are larger than what local governments (ULB’s) can manage through conventional financial sources. 

At this stage innovative financial mechanism like carbon finance (CDM) can play a crucial role in helping urban local authorities to formulate and initiate low carbon infrastructure projects to reduce urban GHG emissions and also make cities and urban infrastructures resilient to climate change impacts.  

This paper reviews various available CDM methodologies applicable in urban scenario, presents successful case studies, analyses various barriers for development of carbon finance projects and makes specific recommendations on how cities can improve their access to climate finance through the use of urban CDM infrastructure programmes.

Keywords: Low carbon, Clean Development Mechanism, Urban Local Bodies, Urban Infrastructure

DOI:10.6088/ijes.2014050100009

© 2014 Copyright by the authors, licensee Integrated Publishing Association.This is an open access article distributed under the Creative Commons Attribution License (3.0) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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