While the MoUs signed with Italy, Canada, Denmark and Norway are intended to stimulate development and bilateral cooperation in the field of CDM. The agreement signed with China focuses on promotion of mutual understanding and coordination of each others position on climate change.

The MoUs will help build confidence between India and partner countries and promote development and implementation of CDM projects as well as coordination, mutual understanding and joint strategies on climate change related issues.

In a recent communication to the European Union Council on International Climate Finance, the European Commission has proposed assigning of about Euros 100 billion annually by 2020 to be shared between domestic finance, carbon market based financing and international public support. This estimate presupposes mitigation actions by developing countries especially that are economically more advanced. The Commission has also proposed a fast start fund of about Euros 5-7 billion per year for meeting the urgent climate financing needs in developing countries, in particular least developed countries (LDCs) and Small Island Developing States (SIDS). No agreement on the scale of finance and institutional arrangements needed to raise and provide finance for addressing climate change in developing countries has yet been reached in UNFCCC because of continuing difference in the approach of developed and developing countries on the matter.

Developing countries including India have no obligation under the UNFCCC to provide contribution to a fund for meeting climate change needs.As a part of the Initial National Communication of India to the United Nations Framework Convention on Climate Change (UNFCCC), studies in regard to the vulnerability assessment and adaptation to climate change have been made. These studies projected climate scenarios and likely impacts in various areas such as water resources, agriculture, forests, natural eco-systems, coastal zones, health energy and infrastructure.

The Government’s stand on climate change is in accordance with the principles of equity and the common but differentiated responsibilities and respective capabilities as enshrined in the UNFCCC. The current approach to climate change is fully anchored in the UNFCCC, Kyoto Protocol and the Bali Action Plan. The National Action Plan on Climate Change (NAPCC) was released on 30th June 2008 to outline India’s strategy to meet the challenge of Climate Change. The National Action Plan outlines steps that will enable the country to adapt to climate change and enhance the ecological sustainability of India’s development path. The National Action plan outlines eight Missions in specific areas of Solar Energy, Enhanced Energy Efficiency, Sustainable Habitat, Water, Sustaining the Himalayan Eco-system, Green India, Sustainable Agriculture and Strategic knowledge for Climate Change. Eight National Missions form the core of the National Action Plan, representing multi-pronged, long term and integrated strategies for achieving key goals in the context of climate change.