Innovations for Advancing Climate Action and Green Economy
The objective of the initiative is to catalyse green growth in the state of Assam through innovations such as green budgeting, Green Public Procurement (GPP), and sensitization on green finance mechanisms. While environment departments generally have the mandate to deal with issues related to climate change, sustainable development, and similar areas, their locus standi on implementation is comparatively weak due to the low budget allocations they receive. As a result of this gap, all departments need to actively and consciously integrate environmental concerns into their planning and practices by allocating higher budgets to sustainable initiatives.
To strengthen the pre-existing green budgeting process in Assam, TERI aims to provide technical support through research and engagement, helping to better integrate environmental sustainability considerations across Assam’s departments and initiatives. The current volume of annual public procurement in India is estimated at about USD 600 billion, and this figure is likely to grow exponentially as India aspires to become a high-income economy by 2047. Sustainable Public Procurement (SPP) enables the public sector to meet its needs for goods and services while contributing to economic growth, social inclusion, and environmental sustainability.
Target 12.7 under Goal 12 (Responsible Consumption and Production) of the SDGs promotes sustainable public procurement practices in accordance with national priorities. To support Assam in promoting sustainable consumption and production, TERI aims to provide technical assistance through research, stakeholder engagement, and the development of a robust knowledge base to facilitate the adoption of GPP innovations. The Assam State Action Plan on Climate Change (SAPCC) estimates that about 7 per cent of the state’s GSDP is needed annually to implement climate solutions. Central to the SAPCC is multi-stakeholder engagement, recognizing that climate resilience demands collaboration among decision-making bodies, financial institutions, development agencies, the private sector, and communities.
To support diverse actors in adopting innovative green financial and regulatory mechanisms that integrate sustainability into decision-making processes, TERI will facilitate multi-stakeholder dialogue and knowledge-based engagement on green finance.
The Assam Society for Comprehensive Financial Management System (AS-CFMS) and The Energy and Resources Institute (TERI) signed a Memorandum of Understanding (MoU) in February 2025 to collaborate on policy innovations and solutions in finance, sustainable development, and climate change, with a special focus on green finance.
The MoU aims to strengthen the policy ecosystem to accelerate Assam’s transition towards a greener economy. It will support AS-CFMS in integrating sustainability into public finance systems through initiatives like green budgeting, eco-friendly public procurement, and climate-focused financial strategies. The collaboration will also enhance frameworks for green budget reporting and green procurement in Assam, while building the capacity of administrative departments and engaging stakeholders to promote awareness and drive meaningful action.
The implementation of green initiatives will be further bolstered by increased resource allocation through green budgeting in the long term. Additionally, enhanced capacity to identify and integrate green components within existing schemes and procurement processes will enable informed decision-making and effective implementation, contributing significantly to the state's environmental goals. The team also conducted green budgeting consultations with 31 government departments. These consultations focused on identifying ways to strengthen each department’s green budget and encouraged the integration of more green interventions within their existing mandates.