Foundational blocks for climate governance

🔎 Navigating the Complexity of the Net Zero Transition A new report from CETEx (Centre for Economic Transition Expertise) at The London School of Economics and Political Science (LSE) provides a practical, structured approach to policymaking for the net zero transition. 🌍 Key Insights from the Report: 🔺 A Modular ‘Building Block’ Framework Rather than a one-size-fits-all approach, the report introduces a flexible, modular framework that helps policymakers design, implement, and evaluate policies effectively. It emphasizes foundations, adjusting policies, and evaluation & anticipation—ensuring policy sequencing, coherence, and adaptability. 🔺 Coordination is the Key to Success Transition-related policies cut across multiple government agencies, financial institutions, and sectors. The report highlights the need for better institutional coordination, structured stakeholder engagement, and alignment across fiscal, industrial, and monetary policies. 🔺 Data & Policy Effectiveness A core challenge in net zero policy implementation is measuring effectiveness. The report calls for a comprehensive data strategy—integrating financial, environmental, and economic data—to track progress and make evidence-based policy adjustments. 🔺 Anticipating Unintended Consequences Effective transition policies must be proactive in identifying potential economic and social trade-offs—ensuring financial stability, protecting vulnerable communities, and maintaining public trust. The report stresses adaptive governance and continuous monitoring & evaluation to refine policies over time. 🔺 From Policy Ambition to Action With increasing scrutiny over net zero commitments, policymakers must balance ambition with realism. The report underscores the importance of a structured, iterative policy approach that can be updated and fine-tuned as the transition unfolds. #NetZero #PolicyMaking #ClimateFinance #SustainableTransition #GreenEconomy #FinancialPolicy #CETEx #LSE

Governance for Resilience in the 3°C World: Expanding the Vision The escalating climate crisis and its ripple effects—cascading economic shocks, geopolitical tensions, migration waves, and declining societal trust—demand a bold reassessment of how governance structures are designed to ensure resilience. As the global temperature rise edges closer to 3°C, Frances Z. Brown’s insightful working paper, Governance for Resilience: How Can States Prepare for the Next Crisis?, offers a timely examination of the governance characteristics that enable states to withstand and adapt to interconnected shocks. This document underscores critical elements like institutional memory, decentralization, societal trust, and quality leadership as key enablers of resilience. While these factors form a solid foundation, the 3°C World Strategic Risk Policy® broadens the scope by integrating urgent climate-specific dimensions and prioritizing resilience over sustainability alone. We build upon Brown’s analysis with actionable elements tailored to a 3°C future, including: 1. Climate-Informed Governance Structures: The addition of predictive modeling for climate-driven disruptions to policymaking frameworks, ensuring institutions remain adaptive and forward-looking. 2. Resilience Metrics Beyond GDP: Introducing societal well-being and adaptive capacity as core indicators of a state’s resilience, fostering more inclusive and holistic policy evaluations. 3. Anticipatory Leadership: Encouraging leaders to adopt proactive strategies that anticipate risks rather than merely react to crises—a cornerstone of the 3°C World SRP® approach. 4. Community and Societal Equity: Expanding resilience to encompass not just state structures but the most vulnerable populations, ensuring resilience policies are inclusive and equitable. This synthesis moves beyond merely “managing risks” to redefine governance as an enabler of societal continuity and stability amid accelerating instability. The 3°C World Strategic Risk Policy® further refines the concept of resilience by emphasizing adaptability as a systemic mandate, applicable across governments, organizations, and communities. As we share this working paper, we invite policymakers, thought leaders, and stakeholders to join us in crafting governance models that not only meet today’s crises but anticipate the challenges of a world increasingly defined by unpredictability. The 3°C World Project is our call to action—let us shape a future that prioritizes resilience, adaptation, and survival in the face of uncharted realities.

Climate adaptation is no longer a theoretical policy ideal—it is a measurable process that demands structure, clarity, and accountability. This Guidebook serves as a detailed compass for countries developing national systems to monitor and evaluate their adaptation efforts. Grounded in real experiences from across the globe, it provides a flexible yet rigorous framework for practitioners, technical advisors, and policymakers designing M&E systems that align with their development context. It dissects the process into four essential building blocks—context, content, operationalisation, and products—while anchoring each decision to practical questions, examples, and tested tools. – It defines the purpose of national adaptation M&E systems and links them to learning, accountability, and adaptive management – It explores methodological approaches for selecting indicators, aggregating data, and integrating monitoring with policy cycles – It shares lessons from countries like Morocco, Nepal, Mexico, and the Philippines on institutional coordination and multi-level design – It connects M&E systems to broader frameworks such as the NAP process, OECD-DAC criteria, and sectoral development planning

Evolving Climate Regulations in India - In the last 12-18 months multiple new climate related regulations & guidelines have been notified in India by Ministry of Environment, Forest, and Climate Change & it’s sub- entities such as Bureau of Energy Efficiency and also by Ministry of Finance, Ministry of Steel, Ministry of Power, SEBI, RBI, etc. – almost all with multiple 1st order or 2nd order impact for Indian indsutry. Sharing how I view with them along with a short summary- these can be classified across 4 archetypes: a) Fundamental/ base regulation: These are building blocks for future climate actions. E.g. - Climate taxonomy framework is attempting to define which economic activity is green and eventually form base for future guidelines on lending for banks, NBFCs, etc. (similar to priority sector lending). Similarly, India carbon market guidelines forms base for carbon related trading (mandatory for select industries to begin with), likely will form base for all kinds of environment trading certificates (e.g. - plastic credits, end of life vehicle credits, etc.) b) Industry specific regulations: Renewable Consumption Obligation mandates select pvt. sector companies to have min. 30% renewable power by F25 with incremental targets each year (aluminium, cement, etc. are covered), potential for this to extend to other sectors/ large-listed companies. Similarly, Greenhouse Gas Emission Intensity (GEI) target notified for ~400 companies across industries & likely 1st time with a clear clause for penalty on non-compliance. Similarly, notification from Ministry of Steel talks about guidelines for low emission steel as 3*, 4* and 5* star category with likely public mandates for procurement to follow – these are on lines of CAFÉ for the auto sector. Green hydrogen definition is also standardized for India. c) Extended Producer Responsibility (EPR) - Consequential piece of regulation – 11 sectors identified by Niti Aayog, and rules have been notified for 6 such as plastics, tyres, end of life (ELV) vehicles, battery, used oil, construction & demolition (C&D) waste, etc. Each leading to cost esacalation but also new revenue & business oppurtunity. d) ESG & climate disclosures: BRSR guidelines by SEBI for ESG disclosure continue to evolve and with each passing year more listed companies must do detailed reporting with 3rd party assurance. Another disclosure requirement is by RBI for banks & NBFCs on climate risk of portfolio.   Industry bodies including FICCI and Confederation of Indian Industry along with many others are taking industry feedback and relaying back. Broadly, authorities are following a a pragmatic approach, bringing incremental changes and receptive to feedback. Overall, a win for environment, leading to new sub-industry creation & jobs and reducing climate impact for Indian industry. We are engaging extensively in our journet towards being #planentpositive at Mahindra Group!