Why in news?

• The Union Cabinet has approved the City Investments to Innovate, Integrate and Sustain (CITIIS) 2.0.
• This has been approved to promote circular economy in 18 Smart Cities to be selected through a competition.

What’s in today’s article?

• Circular economy
• City Investments to Innovate, Integrate and Sustain (CITIIS)

Circular economy

• About
  • The circular economy is an economic model that aims to decouple economic growth from resource consumption and environmental degradation.
  • It is an alternative to the traditional linear economy, which follows a "take-make-dispose" pattern.
    • In this pattern, resources are extracted, processed into products, used, and then discarded as waste.
  • In contrast, the circular economy aims to close the loop by keeping materials, products, and resources in continuous use, maximizing their value and minimizing waste and pollution.
• Main principles
  • Designing out waste and pollution: In a circular economy, products are designed to be long-lasting, easily repairable, and recyclable.
  • Keeping products and materials in use: The circular economy promotes the reuse, refurbishment, and recycling of products and materials.
    • It emphasizes extending product lifetimes, creating secondary markets for used goods, and promoting efficient recycling processes.
  • Regenerating natural systems: The circular economy aims to restore and regenerate natural resources and ecosystems.
    • It encourages the use of renewable energy sources, sustainable agricultural practices, and the preservation of biodiversity.
• Steps taken by India to promote circular economy
  • In Union budget 2022-23, FM said ‘the circular economy Transition will help productivity enhancement and job creation.
    • It announced that the Government would introduce a policy for battery swapping.
    • The action plans for ten sectors such as electronic waste, end-of-life vehicles, used-oil waste, and toxic and hazardous industrial waste are in pipeline.
  • In Union Budget 2023-24, govt emphasised on circular economic model.
    • 500 waste to wealth plants would be established under GOBARdhan scheme to promote circular economy.
    • PM PRANAM, a new scheme, is also being launched to incentivise States / UTS to promote usage of alternative fertilizers.
    • Banks and other financial institutions would also be encouraged to launch a Green Credit Programme, which would be notified under the Environment (Protection) Act.
    • The National Green Hydrogen Mission, with an outlay of Rs 19,700 crore is planned with a target to reach an annual production of 5 MMT by 2030.
  • Expanding the idea of Lifestyle for Environment (LIFE), India is moving forward firmly for the 'Panchamrit' (five nector elements for India's climate action) and net-zero carbon emission.

City Investments to Innovate, Integrate and Sustain (CITIIS)

• About
  • CITIIS, or the City Investments to Innovate, Integrate and Sustain, is a sub-component of the Government of India's Smart Cities Mission.
  • It aims to support sustainable urban development in India by promoting innovative solutions and integrating various urban systems.
• Institutions/agencies involved
  • It is a joint program of:
    • the Ministry of Housing and Urban Affairs; Agence Francaise de Development (AFD); the European Union (EU), and the National Institute of Urban Affairs (NIUA).
• Objective
• The primary objective of CITIIS is to provide financial and technical support to selected cities in India for the implementation of projects that address their specific urban challenges.
• These challenges may include improving urban mobility, enhancing water supply and sanitation systems, promoting sustainable energy solutions, etc.
• Key pillars
  • CITIIS focuses on three key pillars:
    • Innovation: The initiative encourages cities to propose innovative solutions to address their urban challenges.
    • Integration: CITIIS promotes the integration of various urban systems and sectors.
      • It aims to break silos and encourage collaboration between different stakeholders.
    • Sustainability: The initiative emphasizes the importance of sustainability in urban development.
• Selection of cities
  • CITIIS is a competitive program, and cities are selected through a rigorous process based on the strength of their proposals.
  • The selected cities receive financial support, technical expertise, and capacity building to implement their projects successfully.

Different phases of CITIIS

• First phase
  • CITIIS 1.0 was launched jointly in 2018 with a total outlay of ₹933 crore (EUR 106 million).
  • CITIIS 1.0 consisted of three components.
• Second phase
  • City Investments to Innovate, Integrate and Sustain 2.0 (CITIIS 2.0) has been approved recently by the Union Cabinet.
  • The program will run for a period of four years, i.e., from 2023 till 2027.
  • The program envisages to support competitively selected projects promoting circular economy with focus on:
    • integrated waste management at the city level,
    • climate-oriented reform actions at the State level, and
    • institutional strengthening and knowledge dissemination at the National level.
  • The funding for CITIIS 2.0 would include:
    • a loan of Rs.1760 crore (EUR 200 million) from AFD and KfW (EUR 100 million each) and
    • a technical assistance grant of Rs.106 cr. (EUR 12 million) from the EU.
  • CITIIS 2.0 has three major components:
    • Component 1 - financial and technical support for 18 cities to develop projects on climate resilience, with a focus on integrated waste management.
    • Component 2 -All States and UTs will be eligible for support on demand basis.
      • All eligible states/UTs will receive support for setting up climate centres, creating state and city level climate data observatories and capacity-building for municipal staff.
    • Component 3: Interventions at all three levels; Centre, State and City to further climate governance in urban India.