IN08 Greening of commodity value chains

At a Glance

Strategic Outcomes SO1 Reduced GHG emission, SO5 Supply of ecosystem services ensured, SO6 Enhanced adaptation to climate change
Start Date Q1  Jan 1 2019
End Date q1 Dec 31 2020
Funding Source Core
Actual Budget (USD) 104,886
Budget Percentage 97%
Actual Expenditure (USD) 101,964
Status Active
GGGI Share (USD) 104886
Poverty and Gender Policy Markers poverty
Name of Client (Lead/Prime implementer if GGGI is part of a consortium)
Participating Organization (Funding/donor)
Name of consortium members, if any EU-SPIPA through GIZ, Tea Board India
Thematic Area
  • Cross Cutting
GGGI Project Code : IN08
Project Manager and Staff +

Project context

India produces around 24% of the world’s tea production. Tea industry is India’s second largest employer with over 3.5 million people employed. 

The relationship between tea yield and climatic factors implies that long-term climate change will impact the key physiological and developmental processes that determine the yield of tea. As yield is directly associated with revenue, any change in yield attributable to climate change will impact the revenue and dependent livelihoods of small holders and women laborers employed by them. 

The project objective is to help shape the enabling policy and investment framework needed to develop financially viable and bankable climate resilient and sustainable tea cultivation business models, which could be integrated into the lending portfolio of financial institutions. This project is aligned with:

  • IO1. Strengthened national, sub-national and local green growth planning, financing, and institutional frameworks
  • IO2. Increased green growth investment flows which enable partner governments to implement green growth policies, and
  • IO3. Improved multi-directional knowledge sharing and learning to empower local and external agents necessary to drive green growth processes in partner governments 

Project Description

The project, supported by GIZ and European Union (EU), seeks to green the tea value chain by developing a low-carbon production mechanism for STGs and developing climate resilience in them through adaptation measures.

To this end, GGGI has conducted a Carbon Footprint Analysis of STGs in Assam and West Bengal to ascertain the practices causing high carbon emissions in the sector, and devising strategies for low-carbon production.

Parallelly, a vulnerability analysis of small tea growers will assess their adaptation needs and devise appropriate strategies. Climate finance from National Adaptation Fund for Climate Change (NAFCC) under the Government of India will be accessed by Tea Board India, supported by GGGI, to implement climate adaptation measures in the small tea growers value chain.

GGGI also participated in UNCCD COP 14 held in India and showcased the relevance of sustainable measures in tea production in achieving India’s Land Degradation Neutrality (LDN) targets.

Type of services provided, and results achieved

Impact: Economically viable, climate resilient commodity production system for tea growers in the 5 States in India. 

Outcome: N/A 

Project Outputs completed in 2019: 

i. Green Growth Policies: 

Policy Assignment:  

  • GGGI’s Carbon Footprint Analysis Report based on the Small Tea Growers was accepted by Tea Board and based on the finding in the report requested GGGI to help in accessing NAFCC funds.

ii. Green Investments: 

  • Advisory outputs for inform investment proposals Concept Note to access National Adaptation Fund For Climate Change (NAFCC) for 5 states (Assam, West Bengal, Tamil Nadu, Kerala and Himachal Pradesh) is approved by Ministry of Environment, Forest & Climate Change (MoEFCC). 
  • Detailed Project Report submitted to MoEFCC and is awaiting approval. If successful, this project would be the first sector specific project (Tea Sector) to access adaptation funds from NAFCC to the tune of about USD 25 Million for 5 states. 

iii. Capacity Building and Knowledge Products: N/A