Tale of greed in the world of climate finances

India is committed to fighting climate change and achieve its obligations under the Paris Agreement. India is taking measures to follow a low carbon path while its development policies focus on eradicating poverty and providing basic necessities to all. Its low-carbon development agenda is also based on an assumption that the global community will make sources of energy, technology and finance available to help India successful transition to a cleaner economy. International community is already investing in the renewable energy sector in India. However, funds or loans for development projects in India always attract corruption. The finances are raised with vigour, but face quick death.

In 2010, the government raised funds by imposing coal cess at the rate of Rs50 per tonne, which was then channelised to National Green Energy Fund. In 2014, coal cess was raised to Rs 400 per tonne to help build the renewable energy industry in India. This fund was originally created to fund research and projects in clean-energy technologies. Gradually, this fund became National Clean Environment Fund and about Rs 1,500 crore from this fund was put in for River Ganga Cleaning Project. This arbitrary act of government not only promoted corruption, but also diverted a huge chunk of finances that could have been used for the energy sector. Corruption has broken the trust of people and the international community. In 2010, when devastating earthquakes had hit Haiti, the American Red Cross Aid had raised a tidy sum to provide relief and aid in Haiti. Red Cross claimed to have built homes for more than 1,30,000 people. However, a probe revealed that there are only six permanent houses in Haiti. Millions of dollars vanished, thanks to corruption.

It is time people start asking questions about how their money is being spent. It is the taxpayer’s money, which has to be used by the government or non-governmental organisations for the well-being of people. If some entities can complete quality work in the stipulated time in the same corrupt system and utilise the finances effectively, why can’t the other entities? Probably, they do not intend to use climate finances for their intended purpose. Hence, it dies a quick death. 

The author is an environmental law scholar