The latest IPCC report released last week has issued “a code red warning to humanity”. Its main message is that the Earth is rapidly deteriorating, there is no getting away from climate change and this is happening because of human “influence.” While it cautions about extreme weather events like heat waves, heavy rainfall, floods, droughts, and cyclones — many of which are already being witnessed across the world and in India — it also says we could limit global warming to 1.5 degrees by 2040. If we do that, the changes taking place in the world could be slowed down and even stopped from getting worse.

This warning should make India take a relook at its climate mitigation efforts and accelerate them many folds if it wants to achieve the NDC (Nationally Determined Contributions) targets it has made a commitment to. Ideally it should go beyond these objectives to ring-fence the country from future disasters. Though the IPCC report is purely science based and silent on the role businesses can play, it is a sector that can greatly help to reach this goal.

In order to achieve its Paris commitment, India needs to ensure that it has a few things in place by 2030. These include increasing its cumulative electricity generation installed capacity from non-fossil energy sources to 40 per cent; and lowering emissions intensity of its GDP by 33-35 per cent compared to 2005 levels. It must also create an additional carbon sink of 2.5- 3 billion tonnes through additional forest and tree cover.

Besides these international commitments, the government has also set ambitious domestic targets for renewable energy, air quality and others. How are all these to be achieved? It goes without saying that all government policy and actions have to be directed towards reaching these goals. State governments and municipalities too will have to be nudged and incentivised to think global and act local on both emission reduction and biodiversity enhancement. One section that can play a stellar role in the process are businesses, both big and small. By striving towards emission reduction and net zero goals, they could come closer to achieving their own goals and participate in those of the nation.

Systematic approach

However, if India has to involve industry in a systematic way, the best route would be to go in for sector-wise emission reduction. If this could be implemented diligently, more than half the battle would have been won. But for this both government and industry would have to work assiduously and with an altruistic passion — something that does not come naturally in politics or business. However, the profits from this approach would be far, wide, and for the long term.

First and foremost, environment clearances must be handed out more judiciously and only to those projects that are of extreme importance in the national context. No compromises or shortcuts should be allowed while factoring in the impact on the environment and the indigenous people who are today the guardians of our forests. Displacing them, cutting down forests for commercial considerations and compensating for it through synthetic reforestation efforts, which look good only on paper, would be drastically missing the woods for the trees.

Though the transitioning from coal fired power plants to renewable energy has to take place in the long term, it must be done in a manner that involves the estimated over 200 lakh workforce that will be displaced. The same labour could be deployed towards renewable energy and environment regeneration projects. If livelihoods are not protected while reducing coal mining activity, it would precipitate a socio-economic crisis.

Though coal, gas and oil companies have begun to explore and consider investing in renewable energy, hydrogen and other clean technologies, the pace of transition is slow as they are still working towards meeting demand-growth projections. A fresh approach, therefore, is needed on all fronts. Many large domestic industries have set science-based climate commitments. Several have also announced net zero targets and have started to achieve them in different ways. Some by shifting to renewable energy and focussing on reducing carbon dioxide emissions and recycling water from their own operations. Some are appropriating technology to cut greenhouse gases like methane, and others are trying to ensure their supply chain and consumers are kept in the loop to achieve a circular economy for their products.

Best practices

Though this transition will bring benefits such as reduction of air pollution, new jobs, and reduction of oil imports, all sectors are not serious about going green. Most companies pay lip service to environmental concerns and only a handful actually follow best practices. Dalmia Cements was an early starter and committed to a net zero target by 2040. ACC and Ambuja Cement have also been concentrating on waste heat recovery, reducing the amount of clinker in cement production, and enhancing renewable energy.

Increasing the co-processing of waste in cement units is an important measure, and it could further grow if the logistics is worked out. In fact, the recent MoU between The Energy and Resources Institute (TERI) and the Global Cement and Concrete Association (GCCA) to accelerate sustainable development of the cement and concrete sectors is a step in the right direction.

Similarly, sectors like real estate, power, automobiles, aviation, oil, gas, steel, and IT could be studied closely and given sufficient incentives to bring down their emissions sector-wise. This will help us in meeting national targets and also bringing the world closer to its net zero ambition.

Source: https://www.thehindubusinessline.com/opinion/getting-businesses-to-act-on-climate-change/article36046452.ece