Implementing climate change adaptation: lessons from India’s national adaptation fund on climate change (NAFCC)

With poverty alleviation and sustainable development as key imperatives for a developing economy like India, what drives the resource-constrained state governments to prioritize actions that address climate change impacts? We examine this question and argue that without access to additional earmarked financial resources, climate action would get overshadowed by developmental priorities and effective mainstreaming might not be possible. A systematic literature review was carried out to draw insights from the current state of implementation of adaptation projects, programmes and schemes at the subnational levels, along with barriers to mainstreaming climate change adaptation. The findings from a literature review were supplemented with lessons emerging from the implementation of India’s National Adaptation Fund on Climate Change (NAFCC). The results of this study underscore the scheme’s relevance. Key policy insightsExperience with NAFCC implementation reveals that states require sustained ‘handholding’ in terms of financial, technical and capacity support until climate change issues are fully understood and embedded in the policy landscape.Domestic sources of finance are critically important in the absence of predictable and adequate adaptation finance from international sources.The dedicated window for climate finance fosters a spirit of competitive federalism among states and encourages enhanced climate action.Enhanced budgetary allocation to NAFCC to strengthen the state-level adaptation response and create capacity to mainstream climate change concerns in state planning frames, is urgently needed. Experience with NAFCC implementation reveals that states require sustained ‘handholding’ in terms of financial, technical and capacity support until climate change issues are fully understood and embedded in the policy landscape. Domestic sources of finance are critically important in the absence of predictable and adequate adaptation finance from international sources. The dedicated window for climate finance fosters a spirit of competitive federalism among states and encourages enhanced climate action. Enhanced budgetary allocation to NAFCC to strengthen the state-level adaptation response and create capacity to mainstream climate change concerns in state planning frames, is urgently needed.