India has aspirations to become a prominent player in the global battery industry. The national government’s launch of the Production Linked Incentive Scheme for Advanced Chemistry Cell Battery Storage (PLI-ACC scheme) in 2021 reflects the country’s desire to indigenize battery manufacturing. This aspiration is driven by several priorities such as bolstering energy security, promoting local value addition, and accelerating transport electrification and stationary storage deployment. However, to truly capture value across the battery supply chain, India will need to pursue backward integration with the high-value cell components segment as well as equipment manufacturing. Hence, there is a strategic imperative to identify the barriers to localizing the supply chain and recalibrate India’s industrial and trade policies to build a competitive battery ecosystem.

India has the potential to add value across the global battery supply chain. Its chemical sector expertise; technological prowess; favourable trade and geopolitical relations; and growing network of free trade agreements with mineral-rich countries offer several opportunities. As the fourth-largest manufacturer of automobiles, the transition from internal combustion engines to electric vehicles (EVs) provides a significant economic opportunity if India is able to indigenize battery manufacturing.

Based on the analysis undertaken in this report, we recommend that the government focuses on maximizing India’s comparative advantages in the battery supply chains, through the following steps:

• India should prioritize the localization of specific battery components such as synthetic anodes, electrolytes, and cell casings and pouches, through supportive regulations and trade and industrial policies. The presence of domestic suppliers, high cost competitiveness, and low intellectual property and tech reliance create an opportunity for India to scale up its production.
• The government should also incentivize the development of domestic cathodes since these are the highest-value components in a cell. Although India’s technology-agnostic approach can help build domestic capabilities for different battery types, it should prioritize the development of lithium ferro phosphate (LFP) cathodes, as they are lower cost and more suitable for India’s climatic conditions. The adoption of LFP cathodes can offset the need for increased imports of critical minerals such as cobalt and nickel.
• The government should support research and development efforts and incentivize commercialization of the next generation of battery technologies, such as sodium-ion and solid-state, to seize potential opportunities created by the next evolution of the battery industry.
• India must adopt clearer environmental, social, and government guidelines and targets, as well as establish robust reporting frameworks to enhance the export competitiveness of domestic battery companies.
• Increased public investment in setting up cell fabrication and testing centres with trained workers is essential to validate the quality of raw materials, components, and equipment.
• The government should incentivize a circular economy ecosystem by enabling the recycling of end-of-life batteries and improving the collection efficiency of used batteries.
• The government also needs to prioritize the localization of critical equipment used in cell manufacturing through technology partnerships and trade agreements with key allies.

Most of Kenya's forest coverage is in the mountains. The forests atop Mount Kenya, the Aberdare range, the Mau Complex, the Cherangani Hills, and Mount Elgon are known as “water towers,” forming the upper catchment of most rivers in Kenya. Although they cover less than 2% of the country’s total land area, they provide invaluable ecosystem services and almost 75% of Kenya’s water. However, these water tower ecosystems have been severely degraded through informal settlements, overgrazing, deforestation, and the conversion of forest land to agriculture.

Communities are detrimentally affected by these unsustainable activities, which damage the environment and fuel resource conflicts. There is also insufficient diversification of crops and livestock, as well as a lack of infrastructure for water access and irrigation. Consequently, malnutrition is prevalent, driven by inadequate diets, poor food management, infectious diseases, and social factors like dietary taboos.

The Kenyan State Department for Crop Development, under the Ministry of Agriculture and Livestock Development and supported by the International Fund for Agricultural Development (IFAD), has developed the Integrated Natural Resources Management Programme (INReMP) to assist local communities. Spanning 100,000 ha, the program fosters community engagement and promotes climate-smart agricultural practices, clean energy solutions, and spring and water storage protection, among other initiatives, with the hope of impacting 100,000 households and nearly 600,000 people.

In collaboration with IFAD and local partners, we assess how the NBI components of the program contribute to protecting local communities against natural hazards and boost crop productivity.

We assessed the benefits of various NBI interventions, including

• 13,500 ha of agroforestry,
• 20,000 ha of reforestation,
• 13,900 ha of rangeland rehabilitation, and
• 14,900 ha of wetland restoration.

Our assessment found that for every USD 1 invested in NBI, between USD 1.91 and 1.71 could be returned in benefits for the environment, society, and the economy. This includes avoided crop losses through drought mitigation, increased crop production, new revenue streams from agroforestry and livestock, job creation, and carbon sequestration.

The most significant benefits come from the implementation of agroforestry, through the revenues from fruit and timber produced at USD 168.1–167 million over 25 years, closely followed by avoided effects of drought, which could prevent costs of between USD 67.3–105.4 million.

Eswatini, a landlocked nation between Mozambique and South Africa, is home to approximately 1.2 million people, with 76% residing in rural areas. Climate change poses significant challenges to agriculture, including water scarcity, soil degradation, and reduced crop productivity, resulting in increasing food insecurity and poverty.

To address this, the Government of Eswatini and the International Fund for Agricultural Development (IFAD) are collaborating on the Smallholder Agriculture Productivity Enhancement and Marketing Project (SAPEMP). SAPEMP focuses on regenerating 40,000 ha of land, benefiting 24,500 households and nearly 150,000 individuals. This initiative is crucial for helping small-scale farmers adapt to climate change and protect the environment.

We worked with IFAD and local partners on an NBI scenario implementing 1,000 ha of agroforestry, to increase natural hazard protection and enhance crop productivity in three locations: Maguga Dam (Hhohho region), Hendrick Van Eck Dam (Lubombo region), and the Sand River Dam (Lubombo region). This is a key part of SAPEMP’s broader strategy to enhance farm productivity and climate resilience through nature-based solutions.

This report specifically assesses the value of agroforestry within SAPEMP, aiming to guide future project design and financing. The economic insights gained are intended to support funding acquisition, enhance partnerships, and contribute to informed policy-making.

Our assessment found that for every USD 1 invested in NBI, between USD 1.52 and 1.46 could be returned in benefits for the environment, society, and the economy. This includes avoided crop losses through drought mitigation, increased crop production, and new revenue streams from agroforestry, job creation, and carbon sequestration.

Bogota, Colombia’s capital and largest city, is home to a rapidly growing population of over 8 million inhabitants. The city’s public transportation network has struggled to keep pace with this rapid urban population growth in recent decades, leading to Bogota being ranked as one of the most congested cities in the world. On top of that, the city experiences long commuting times, high accident rates, and elevated levels of noise and air pollution.

Over the past 50 years, the primary form of public transportation in Bogota has been the TransMilenio BRT system. However, the city of Bogota has recently introduced Metro Line 1 of the Metro de Bogota, an MRT system and the first modern metro system in Colombia. The MRT aims to meet sustainable, low-carbon mobility targets while reducing traffic congestion and increasing access to employment opportunities across Bogota.

The Sustainable Asset Valuation (SAVi) assessment of the Sustainable Transport Strategy in Bogota focuses on three main public transport systems in the city: the TransMilenio BRT system, NMT infrastructure (which is currently operational and expanding in the city), and the Metro de Bogota MRT system. This assessment shows that the public transport systems (BRT, NMT, and MRT) in Bogota can provide efficient, safe, and accessible modes of transportation that have positive economic and environmental impacts as well as social benefits to the city’s population.

The results show that

• the combination of the three public transport investments amount to a cumulative net benefit (discounted) of USD 12,237 million;
• when accounting for the full range of benefits for the city of Bogota, the three public transport systems result in an integrated benefit-cost ratio of 4.5 per USD 1 invested; and
• the three public transport systems result in economic growth for Bogota by stimulating retail and property value increases as well as leading to significant health benefits for Bogota’s residents, by encouraging physical activity and reducing air pollution.

Bogota, Colombia’s capital and largest city, is home to a rapidly growing population of over 8 million inhabitants. The city’s public transportation network has struggled to keep pace with this rapid urban population growth in recent decades, leading to Bogota being ranked as one of the most congested cities in the world. Despite numerous attempts by various administrations to implement a metro system over the past 50 years, the primary form of public transportation in Bogota remains the TransMilenio bus rapid transit system.

To tackle these challenges, the city of Bogota recently introduced Metro Line 1 of the Metro de Bogota, an MRT system and the first modern metro system in Colombia. The MRT system will be fully electric and automated and will consist of an elevated line that will connect Bogota’s city centre with the southern and northern districts. The MRT system aims to meet sustainable, low-carbon mobility targets while reducing traffic congestion and increasing access to employment opportunities across Bogota.

This Sustainable Asset Valuation (SAVi) assessment analyzes the methodology on multiple economic, social, and environmental benefits that the MRT system may have for Bogota’s residents. The assessment shows that the project will contribute to the economic, social, and environmental development of the city through increased productivity, generation of (and improved access to) employment opportunities, reduced traffic congestion, and access to quality transit for public transportation users. Two MRT scenarios were modelled, which assume an 8% and a 16% modal shift from private transport to the MRT.

Key findings include:

• The MRT system is a highly profitable project, generating cumulative (2022–2058), discounted (3.5%) net benefits of USD 2,051 million in the MRT 8% scenario and USD 6,177 million in the MRT 16% scenario.
• When accounting for the full range of benefits for the city, the MRT system results in an integrated benefit-cost ratio of 1.5 per USD 1 invested in the MRT 8% scenario and 1.9 per USD 1 invested in the MRT 16% scenario.
• The greatest positive added benefits of the MRT system are increased retail revenues around MRT stations and significant health benefits from increased physical activity and decreased air pollution.

In the journey toward limiting GHG emissions, decarbonizing the mining sector is critical to aligning global industries with international climate commitments and achieving the objectives set out in the Paris Agreement. As the demand for minerals and metals essential for energy transition technologies surges, it becomes increasingly important to manage the environmental impacts of their extraction and processing.

This report, featuring case studies from Chile, Indonesia, and South Africa, delves into the role of the mining sector in national efforts to reduce GHG emissions and highlights the challenges and opportunities inherent in this transition. It serves as a background document to the main scoping study, Decarbonization of the Mining Sector: Scoping study on the role of mining in nationally determined contributions.

Chile, Indonesia, and South Africa have been selected for their significant contributions to the global mining industry and their unique approaches to integrating decarbonization strategies within their national frameworks. These case studies provide a comprehensive understanding of how different countries are navigating the complexities of maintaining a robust mining sector, supplying the world with critical minerals for the dual energy and digital revolutions, and reducing emissions from coal mining and use while committing to substantial GHG emissions reductions.

For each case study, the role of the country in global mining production, as well as the weight of the mining sector in each domestic economy, is assessed. Then, GHG emissions at the country level and from mining-related activities are studied before focusing on international commitments and targets. Finally, national policies and approaches by countries to support the decarbonization of their mining sector are presented. These case studies show how countries can supply raw materials for the energy transition globally while ensuring that their mining sectors contribute to their national sustainable development.

Government spending and other forms of actual support to renewable energy is a blind spot at the international level. To help address the knowledge gap, we developed an inventory of public financial support for renewable energy generation and integration by G20 governments, which dominate renewable deployment. G20 governments provided at least USD 168 billion in public financial support for renewable power in 2023, less than one third of G20 fossil fuel subsidies that year. Advanced G20 economies and China accounted for 95% of renewable power support. Where disaggregated data was available, support was directed mostly to solar and wind, but almost half of the support targeted multiple technologies or did not specify.

Assuming current investment and support patterns remain consistent to 2030, we estimate that public support may need to double to around USD 336 billion per year to achieve the pledge made at the 28th UN Climate Change Conference (COP 28) to triple renewable energy capacity by 2030. This would still be lower than current G20 fossil fuel subsidies (USD 535 billion in 2023). Lower income countries are at risk of getting left behind in the clean energy transition and will need grants and concessional finance to catch up. The benefits of increasing support to renewable power extend beyond achieving climate goals: increased energy access and less air pollution, price volatility, and geopolitical risk relative to fossil fuels.

Supportive government policies have been instrumental in grid-scale solar photovoltaic (PV) and onshore wind passing a tipping point to become the cheapest options for new electricity generation in many countries. Yet, enabling policies continue to be needed to accelerate deployment to achieve global climate goals and to ensure lower income countries are not left behind in the energy transition.

While each country’s pathway will be unique, tipping point theory and experience with successful deployment of renewables suggests that public financial support measures most likely to facilitate tipping in emerging market and developing economies (EMDEs) are

• international concessional finance, grants, and risk mitigation instruments to compensate for high upfront investment needs and cost of capital in EMDEs;
• investments in grids to facilitate integration of variable renewable energy; and
• fossil fuel subsidy reform to level the playing field and generate revenue to fund a just energy transition.

The international donor and finance community can assist by increasing transfers to lower income countries, including by reallocating international finance from fossil to renewable energy and by committing to an ambitious new climate finance goal.

The Nature-Based Infrastructure Global Resource Centre is collaborating with the United Nations Environment Programme (UNEP) and local stakeholders in Ghana to analyze potential nature-based infrastructure (NBI) and hybrid scenarios totalling 12,000 hectares across four districts: Lambussie, Wa West, Lawra, and Jirapa. The performance of these options is analyzed under three climate scenarios (Shared Socioeconomic Pathways [SSP] SSP1, SSP3, and SSP5).

In this report, we assess the following scenarios:

• Reference scenario, representing the baseline of no action taken to address challenges related to extreme weather events. In this scenario, increased encroachment of riverbanks, higher occurrences of flash floods, significant loss of crops, and damage to infrastructure due to inadequate preparedness are expected.
• NBI scenario, consisting of reforestation, restoration of riparian buffer zones, agroforestry, and climate-smart agriculture to restore natural ecosystems, improve land management practices, and enhance the resilience of agricultural systems to a changing climate.
• Hybrid infrastructure scenario, consisting of the above nature-based solutions, plus implementation of irrigation systems and traditional “grey” water storage systems, to address water scarcity and improve agricultural water management.

Our assessment found that NBI and hybrid interventions are effective investments for mitigating the impacts of extreme weather events in Ghana. Under all climate scenarios, NBI and hybrid interventions have synergies in tackling both floods and droughts effectively, offering risk mitigation options to communities impacted by climate change. Interestingly, our assessment shows that for avoided costs from floods, an SSP5 scenario is not as damaging as SSP3, demonstrating the nuances of climate change and identifying the most effective NBI solution for the problem. For example, expanding this ambition to a 3,500-hectare area for reforestation in one modelled district resulted in a substantial 46.7% reduction in flood risk.

The topic of compensation and damages remains high on the investor-state dispute settlement (ISDS) reform agenda. The growing size of ISDS damages awards makes it an important policy issue, due to the significant impact on states' public finances as well as concerns related to consistency and correctness of ISDS practice.

Policy-makers have started exploring ways to curtail the increasingly large amounts of damages at various multilateral normative processes, such as through the United Nations Commission on International Trade Law Working Group III and in its bilateral and regional treaty-making practice.

This policy report builds on the existing approaches and proposals to reform ISDS practice on damages, proposing a menu of reform options to the existing ISDS practice, including different elements of compensation standards and other aspects of compensation. The final section concludes by outlining avenues and forums at which the reform efforts may be pursued.