Explanation:

The largest source of climate financing in India is public funding, which is routed through budgetary allocation and several funds and schemes related to climate change established by the Government of India such as National Clean Energy Fund (NCEF) and National Adaptation Fund (NAF).

• The Government of India also provides funding through eight missions established under the National Action Plan for Climate Change.
• The government has established a Climate Change Finance Unit (CCFU) in the Ministry of Finance, which is the nodal agency for all climate change financing matters. 
• However, public funding in India is inadequate and misused. For example, NCEF funds have been used to meet budgetary shortfalls in the Ministry of New and Renewable Energy (MoNRE).
• Additionally, there is no assessment of climate relevance of publicly funded projects in India, making it difficult to evaluate financial allocation towards climate action.

Hence only statement 1st is correct.