The report offers a thorough assessment of all channels of public funding that address climate risks and disasters. Most existing mechanisms remain reactive, designed to meet immediate needs once a shock has already occurred. In contrast, the proposed devolution framework opens the possibility for long-term mitigation and adaptation by embedding climate considerations directly into fiscal transfers. The analysis also looks at global experiences from ecological fiscal transfers to climate budgeting in countries such as Brazil, South Africa, and others. In this context, India would lead by example, becoming one of the first major economies to formally integrate climate risk and vulnerability into its system of fiscal devolution. This aspect of the design is not only innovative but also commendable in setting a global benchmark.
