Indian government program to promote Circular Economy and Climate Action

The Indian government has approved City Investments to Innovate, Integrate, and Sustain 2.0 (CITIIS 2.0) program.

CITIIS 2.0 program was developed in collaboration with the Ministry of Housing and Urban Affairs (MoHUA), the French Development Agency (AFD), Kreditanstalt für Wiederaufbau (KfW), the European Union (EU), and the National Institute of Urban Affairs (NIUA), will be implemented from 2023 to 2027.

The program aims to support selected projects promoting a circular economy, explicitly focusing on integrated waste management at the city level, climate-oriented reform actions at the state level, and institutional strengthening and knowledge dissemination at the national level.

The funding for CITIIS 2.0 includes a loan of Rs.1760 crore (EUR 200 million) from AFD and KfW (EUR 100 million each), along with a technical assistance grant of Rs.106 crore (EUR 12 million) from the EU.

CITIIS 2.0 builds upon the achievements of its predecessor, CITIIS 1.0, launched in 2018. Under CITIIS 1.0, a total of ₹933 crores (EUR 106 million) was allocated, with three key components: city-level projects, capacity development in Odisha, and integrated urban management at the national level facilitated by NIUA.

Similar to CITIIS 1.0, CITIIS 2.0 consists of three major components:

Component 1: Provision of financial and technical support to develop climate-resilient projects, focusing on circular economy and integrated waste management, in up to 18 smart cities through a competitive selection process.

Component 2: Support to all states and union territories (UTs) upon request, including setting up or strengthening state climate centers/cells, establishing state and city-level Climate Data Observatories, facilitating climate-data-driven planning, developing climate action plans, and building capacities of municipal functionaries. The Program Management Unit (PMU) at NIUA will coordinate technical assistance and strategic support to state governments.

Component 3: Interventions at the central, state, and city levels to strengthen climate governance in urban India through institutional strengthening, knowledge dissemination, partnerships, capacity building, research and development, and supporting scale-up across all states and cities.

Wrapping Up

Ever since the Indian government has  committed its goal to become a net-zero carbon emissions economy, a series of steps have been undertaken, including the slew of policy initiatives in the Budget 2023.

CITIIS 2.0 will complement the ongoing national programs of the Government of India, including the National Mission on Sustainable Habitat, AMRUT 2.0, Swachh Bharat Mission 2.0, and Smart Cities Mission. It will also contribute to India’s Intended Nationally Determined Contributions (INDCs) and commitments made at the Conference of the Parties (COP26).