Chennai: The framework for ‘Nature-based solutions for enhancing urban resilience in tier-2 cities of Tamil Nadu’ released by the State Planning Commission (SPC) suggests implementation of green bonds, tax benefits and integrated water resources management to ensure water security to fight climate hazards by addressing systemic barriers. Pointing out that the expansion of cities increases climate risks and there is growing recognition that urban infrastructure must be developed beyond purely engineered systems, the report acknowledges that traditional grey infrastructure is inadequate to address the complex and interconnected challenges posed by rapid urbanisation and climate change. But in contrast, the report also says that nature-based solutions (NBS) provide adaptive, cost-effective and multifunctional alternatives by integrating natural ecosystems into urban systems. “Despite these benefits, mainstreaming NBS faces barriers such as limited technical capacity, financial challenges, policy gaps and bias towards traditional technical approaches. The proposed framework addresses these barriers in a structured path for integration,” the report said.
The framework is based on five guiding principles such as strengthening urban resilience, mainstreaming NBS in urban planning, community engagement and inclusiveness, economic viability and leaving no one behind. Further, the framework classifies 30 tier-2 cities into 4 types such as emerging, expanding, thriving and transformational. Type-1 (emerging) cities include Nagapattinam, Neyveli, Tiruvannamalai, Hosur and others. Type-2 (expanding) cities include Erode, Kanchipuram, Vellore, Tambaram, Alandur and others. Type-3 (thriving) cities include Dindigul, Thanjavur, Pallavaram, Avadi, Tiruppur, Ambattur, etc. Salem, Trichy and Madurai are transformational (Type-4) cities. It also identifies limited awareness and technical capacity, cultural and behavioural factors, technical biases, financial constraints, policy and regulatory gaps, lack of evidence of efficacy, and complexity and interdisciplinarity as challenges for NBS. But, the SPC believes that health benefits, food security, urban living and livelihoods, social inclusion and equity, education and awareness, and cultural and aesthetic values are co-benefits of NBS.
To effectively mobilise finance to implement NBS, the framework recommends the government to facilitate the issuance of green bonds and climate bonds by local bodies to fund projects such as afforestation, wetland restoration, sustainable drainage systems and urban biodiversity corridors. NBS projects funded through bonds are recommended to undergo rigorous environmental and social scrutiny, and include measurable performance indicators to track climate mitigation, adaptation and co-benefits. The framework suggests that “targeted tax incentives are proposed to be established to encourage private and institutional investment in NBS as part of broader green urban development strategies.” “This could include tax deductions, rebates or exemptions for investments in eligible NBS activities. Incentive areas could extend to individual property owners, developers and corporate entities that integrate NBS into their operations or infrastructure.” In addition to leveraging Corporate Social Responsibility (CSR), access to multilateral financing should be systematically facilitated to enable the design and implementation of large-scale NBS projects, especially in rapidly urbanising and climate-sensitive regions. “Incorporating NBS within economic planning ensures co-benefits for both people and nature. Thus, NBS can serve as a catalytic tool for inclusive and sustainable economic transformation in fast-growing urban areas,” the document states.
