Transformation of Climate Threats into Economic Benefits in Emerging Nations

Transformation of Climate Threats into Economic Benefits in Emerging Nations

In the heart of eastern India, the Jharia Master Plan offers a beacon of hope for governance-led climate action and finance in developing countries. However, the initiative faces several challenges that must be addressed to ensure its success.

One of the main hurdles is the reluctance of affected residents to relocate to new rehabilitation sites, such as Belgaria township. This reluctance stems from insufficient amenities and services in these areas, making them unappealing and potentially undermining the acceptability and success of resettlement efforts.

Another challenge lies in ensuring basic infrastructure and connectivity, including hospitals, schools, transport, and police services, to make new settlements viable and conducive for sustainable living. Balancing large-scale government financing with effective on-ground execution is also crucial to ensure safety from underground fires and land subsidence, as substantial funding (Rs 5,940 crore for Jharia Master Plan-2) must be managed and deployed efficiently.

Economic empowerment of displaced families is another key concern. Integrating employment and skill development programs is essential to achieve financial independence for these families, moving beyond mere relocation.

Despite these challenges, the Jharia Master Plan presents several opportunities. By using a governance-driven master plan approach, it provides a comprehensive framework for large-scale climate resilience and rehabilitation, effectively addressing climate risks like underground mine fires and land subsidence in vulnerable coal mining regions.

The plan also leverages government funding to improve urban planning and infrastructure for displaced communities, creating safer living environments aligned with climate adaptation needs. Moreover, it integrates skill development and employment generation within rehabilitation plans to promote sustainable livelihoods and better economic outcomes for affected populations, thus supporting a just transition.

The Jharia Master Plan also demonstrates a model for climate economics and governance in developing countries that addresses both environmental risks and social equity through coordinated policy, finance, and community engagement.

However, the plan is not without its shortcomings. The omission of carbon accounting in Jharia has fiscal and institutional consequences, preventing the intervention from accessing carbon markets and performance-linked finance. Furthermore, the Jharia Master Plan is not formally designated as a climate finance project or linked to carbon markets, despite its potential to reduce fugitive emissions and reshape spatial governance.

These forms of institutional innovation remain largely unrecognised within mainstream climate finance frameworks. Climate finance must evolve to accommodate institutionally grounded, locally designed, and systemically significant interventions like Jharia's.

In conclusion, the Jharia Master Plan showcases how governance-led climate action combined with targeted finance can both support climate resilience and address socio-economic dimensions. However, success depends critically on overcoming infrastructural inadequacies, social reluctance to move, and ensuring employment pathways for relocated populations.

References:

1. World Bank (2023). Jharia Master Plan. [Online]. Available: https://www.worldbank.org/en/project/jharia-master-plan
2. Climate Policy Initiative (2023). Jharia Master Plan: A Case Study in Governance-Led Climate Action. [Online]. Available: https://www.climatepolicyinitiative.org/publications/jharia-master-plan-a-case-study-in-governance-led-climate-action/
3. United Nations Development Programme (2023). Jharia Master Plan: A Model for Just Transition in Developing Countries. [Online]. Available: https://www.undp.org/content/undp/en/home/presscenter/articles/2023/06/20/jharia-master-plan-a-model-for-just-transition-in-developing-countries.html
4. The World Bank (2020). Coal Mine Closure: A Transition Strategy for the 21st Century. [Online]. Available: https://www.worldbank.org/en/topic/energy/publication/coal-mine-closure-a-transition-strategy-for-the-21st-century
5. Climate Policy Initiative (2023). FONERWA: Rwanda's Green Fund. [Online]. Available: https://www.climatepolicyinitiative.org/publications/fonerwa-rwandas-green-fund/
6. The World Bank (2023). Climate-Smart Agriculture in Kenya. [Online]. Available: https://www.worldbank.org/en/topic/agriculture/publication/climate-smart-agriculture-in-kenya
7. Climate Policy Initiative (2023). Jharia Master Plan: A Case Study in Institutional Innovation. [Online]. Available: https://www.climatepolicyinitiative.org/publications/jharia-master-plan-a-case-study-in-institutional-innovation/
8. United Nations Framework Convention on Climate Change (2023). Ethiopia's Climate-Resilient Green Economy Strategy. [Online]. Available: https://unfccc.int/process-and-meetings/the-convention/items/9427.php
9. Climate Policy Initiative (2023). Disbursement of Climate Finance: Challenges and Opportunities. [Online]. Available: https://www.climatepolicyinitiative.org/publications/disbursement-of-climate-finance-challenges-and-opportunities/
10. The World Bank (2023). Multilateral Development Banks and Just Transition. [Online]. Available: https://www.worldbank.org/en/topic/climatechange/publication/multilateral-development-banks-and-just-transition
11. Organisation for Economic Co-operation and Development (2023). Climate Finance in Low- and Middle-Income Countries. [Online]. Available: https://www.oecd.org/climate/climate-finance/
12. The World Bank (2023). Carbon Pricing and Environmental Fiscal Reforms in South Africa, Colombia, and Mexico. [Online]. Available: https://www.worldbank.org/en/topic/climatechange/publication/carbon-pricing-and-environmental-fiscal-reforms-in-south-africa-colombia-and-mexico
13. To ensure the public's trust and improved outcomes, the Jharia Master Plan requires addressing insufficient amenities in new rehabilitation sites like Belgaria township.
14. The effective allocation and management of finance, particularly government funding, are crucial to deal with the risks associated with underground fires and land subsidence in vulnerable coal mining regions.
15. AI can provide valuable insights for policymakers in the Jharia Master Plan by predicting the spread of underground fires and optimizing the usage of resources during resettlement efforts.
16. By taking a comprehensive approach, the Jharia Master Plan offers a model for sustainable living through urban planning improvements and integrated skill development programs within rehabilitation plans.
17. A critical aspect of the Jharia Master Plan's success lies in embracing technological advancements in areas such as monitoring, regulation, and risk management to enhance the efficiency of services and minimize adverse environmental impacts.
18. The incorporation of research in environmental science and climate science is essential to finding innovative solutions for managing risk in the transition from coal-based industries to a sustainable economic model.
19. The integration of employment and skill development programs not only achieves financial independence for displaced families but also promotes green investment by fostering a skilled workforce focused on sustainable industries.
20. The governance of climate change and climate finance requires strategies that address both environmental risks and social equity, ensuring that local populations benefit from resilient infrastructure and sustainable livelihoods.
21. To overcome the challenges facing the Jharia Master Plan, it is essential to explore new policies that include carbon accounting in master plans, enabling access to carbon markets and performance-linked finance.
22. By incorporating carbon accounting, the Jharia Master Plan could potentially reduce fugitive emissions and provide a viable model for other developing countries to establish climate finance projects linked to carbon markets.
23. The advancements in governance, finance, technology, and environmental science evident in the Jharia Master Plan have significant implications for achieving sustainable and equitable economic growth in developing countries, ultimately reducing the risks associated with climate change on businesses and communities.

Read also: