Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

In the last ten years, we have witnessed some of the most devastating impacts of climate change. Global warming continues to break temperature records every month, plastic pollution has become a humongous problem, and species are going extinct at an unprecedented rate. Clearly, sustainability and environmental friendliness have become critical to our existence! People have consciously started changing their buying habits. The United Nations also emphasizes the need for “responsible production and consumption” habits and has made it one of its sustainable development goals (SDG 12) for 2030. Many people are gradually gravitating toward cruelty-free products, opting for all-natural options that cause minimal harm to the environment. Undoubtedly, the pandemic has played a vital role in making this change happen. However, such discussions often lose momentum along the way when it comes to execution at industrial levels. Most traditional industries have established money cycles and tight margins, making it a huge challenge to implement sustainable practices. Making a transition towards sustainability successfully and profitably would require fundamental changes to the entire systems that have been bettered over the years. It might seem like a cost-intensive disruption for most, but this perspective is short-sighted. In the longer run, the benefits of an eco-friendly and sustainable business world will be reaped by everyone alike. All the challenges that may arise are workable given the willingness and support of the stakeholders involved. The world is suffering the wrath of mother nature brought about by climate change. In times like these, the consumer plays a massive role in driving industries to adopt the right practices and do the right thing. It is always the first few years that are most difficult. This applies to any kind of change in an established pattern. Once the habits, practices, and systems are in place, there’s only upward momentum from thereon. While, on one hand, consumers are aware and slowly learning to make the right choices, on the other, businesses and industries need to play catch up and pull up their socks if they wish to survive and grow. Here are three reasons why businesses should go sustainable in 2022: <ol><li>Trade and commerce are the single most significant direct contributor to climate change and global warming. While this planet will continue to exist with or without humans as it has done for millions of years, it is the survival of humans and our fellow life forms that will be impacted as trade and commerce continue to alter our natural environment. The rise in consumption and the resultant increase in production leads to depletion of resources and raw materials without much emphasis on restoration. A drawback to global businesses, supply chains, and open markets is the stress on the resources and their depletion. Without a plan to restore them, we are not far from the day when there won’t be any left</li><li>Production of raw materials like livestock to meet excessive demand leads to harmful practices like deforestation and animal cruelty. The meat industry is very resource-intensive, the land required to raise cattle for leather and meat commensurate with its demand is no longer enough, and forests are being burnt or chopped down to clear land for livestock farming. The massive amounts of water and food that goes into the breeding and raising of cattle for the meat, dairy and leather industries are enough to wipe off the hunger problem from the face of the Earth</li><li>Gaseous emissions from factories have a direct long-term impact on the local population's health. Air Quality Indices have shown an unbelievable deterioration across the world and yet companies use waste incinerators that release toxic fumes into the environment which in turn cause serious health issues among the people dwelling in the vicinity. Some cities saw people donning face masks decades before the pandemic broke out due to air pollution. If this continues, humans will no longer be able to walk freely in the open without supplementary supply of quality air.</li></ol>From the industrial revolution to the rise of social media, societies have undergone fundamental changes in how people live and understand their place in the world. People often resist transformation because their fear of losing what they have is more powerful than knowing they might gain something better. Wanting to retain things as they are – known as status quo bias – explains most individual decisions, from sticking with incumbent politicians to not enrolling in retirement or health plans even when the alternatives may be rationally better. If we as a species still do not fully understand how to live on a perfectly abundant, all-providing planet, how do we expect to colonize and thrive on a different, unconducive, and possibly hostile planet? Vivek Baherwani is the Founder &amp; CEO of TRIVID Disclaimer: The opinions expressed are of the author/interviewee and do not necessarily reflect the views of Business Insider India. The article has been partly edited for length and clarity. This column is part of June 2022’s month-long awareness campaign on the theme “Only One Earth: Sustaining People, Planet and Prosperity” by <a href="https://www.businessinsider.in/sustainability">Business Insider India’s Sustainability Insider</a>.

OPINION: Sustainability—The absolute essential for business and commerce today! Are we ready for the transition?

The year 2015 is a landmark in our pursuit of sustainability! The United Nations adopted Agenda 2030 for Sustainable Development in 2015, including 17 Sustainable Development Goals (SDGs) to end poverty, protect the environment, and ensure prosperity for all, laying a roadmap to ensure sustainable social, environmental, and economic progress worldwide. In the same year, India and 195 other member nations adopted the Paris Agreement—the most ambitious effort so far to strengthen the global response to the threat of climate change. The Agreement aims to limit the rise in the 21st century’s mean global temperature to within 1.5°C of pre-industrial levels and saw a slight shift from the Kyoto Protocol Principles of Common but Differentiated Responsibilities. Paris Agreement called for all countries to submit a plan, known as a Nationally Determined Contribution (NDC), that detailed their contributions to achieving the agreement’s objectives. All parties must revise NDCs every five years to aim for even faster progress towards net-zero emissions and should regularly report on their emissions and their implementation efforts. <cmsannotation type="cmsannotation" annotationid="India’s commitment to climate action" comment="subhead" text="India’s commitment to climate action">India’s commitment to climate action</cmsannotation> Recognising that technology and finance will be key enablers, India’s NDC detailed its two-pronged approach, comprising the promotion of clean energy technology and enhancing energy efficiency. In addition, our country identified other mitigation strategies like developing climate-resilient urban centres and setting up a green transportation network for safe, smart, and sustainable emissions reduction. In line with the spirit of the Agreement, Prime Minister Narendra Modi announced India’s upgraded Panchamrit strategy at the 26th Conference of Parties (COP-26) last year, comprising five immediate goals to achieve net-zero emissions by 2070. Chief amongst them is reaching a non-fossil fuel energy capacity of 500 GW by 2030, with at least 50% of all energy requirements being met by renewable energy sources. Furthermore, outlining the country’s strong climate ambition for the current decade, India has called upon the investor community to invest in research and development, manufacturing, and deployment of green technologies, also known as green infrastructure finance. On its part, the Government of India (GoI) has already launched a Climate Finance Leadership Initiative (CFLI) in partnership with the UK government to mobilise private capital in support of green energy projects in India. <cmsannotation type="cmsannotation" annotationid="Towards clean energy" comment="subhead" text="Towards clean energy">Towards clean energy</cmsannotation> Even before the formation of CFLI India, the country had already more than doubled the share of renewable energy in the total energy mix from 11.8% in March 2015 to 25.2% in July 2021. Additionally, about 63 GW of renewable energy capacity is under various construction phases and will add to the current non-fossil fuel-based installed capacity of 157.32GW. With India’s power requirements estimated to reach 817 GW by 2030 as per the Central Electricity Authority, the country will need to tackle cost headwinds for solar power projects caused by a nearly 35% increase in the average price of imported solar PV modules over the past year. The Indian chapter of the CFLI will thus aim to accelerate financing for renewable energy infrastructure, with a particular focus on solar and wind power-based projects. This initiative will go a long way in supporting the achievement of India’s target of 450 GW of renewable energy by 2030 and can potentially take installed power capacity from non-fossil fuels to 66% of the total energy capacity in the country. According to climate and energy research firm CEEW Centre for Energy Finance (CEEW-CEF), India will need close to US$10 trillion or roughly ₹750 lakh crore to meet its goals of net-zero carbon emissions by 2070. This will involve taking India’s total installed solar power capacity to over 5,600 GW by 2070, dropping the usage of coal for power generation by 99% before 2060 and developing <a href="https://www.ceew.in/publications/reducing-green-hydrogen-production-cost-in-india">Green hydrogen</a> infrastructure to contribute 19% of the total industrial sector’s energy needs by 2070. India has also signalled that the future of mobility is Electric! This is also evident from the continuous decline in Battery pack pricing, decreasing from around Rs 75,000/kWh in 2010 to Rs 11,000/kWh in 2021, bringing the EV sector to the forefront as the country’s next sunshine sector. Technology cost, customer preference, and infrastructure rollout remain the critical impediments to the faster adoption of Electric vehicles. India’s retail vehicle finance industry is estimated at Rs 4.50 lakh crore as per Niti Ayog, and only recently specialised EV loans have been taken up by the Banks/FIs. <cmsannotation type="cmsannotation" annotationid="Financing a sustainable future" comment="subhead" text="Financing a sustainable future">Financing a sustainable future</cmsannotation> A NITI Aayog report estimates that the energy sector would need US$4.5 trillion by 2030 to address the current infrastructure gaps and increase the renewable energy sector’s share to 50% of the total energy produced. With the country relying on domestic finance so far, the onus is now clearly on local and foreign entities to step-up green infrastructure financing initiatives. It will be a critical enabler for the world’s fastest-growing major economy to achieve its ambitious targets set for 2030. Foreign funds are now available to meet this demand, but they come with perils. The overall financing cost of such foreign funds can also be a non-starter for many domestic players as it would appear that this cheap financing is available at 2 to 4%, but hedge fund cost makes it too steep. The Government can step in by establishing a Hedge Fund, which can bring in the necessary respite. This Government hedge fund can be created to fund risks on account of currency fluctuation up to a certain range, thereby bringing down the overall cost for developers seeking the Foreign funds. Debt funds can also be tapped to offer cheaper financing when projects are implemented in India. In the past, the Government had also provided additional Income tax incentives under Section 80CCF under Infrastructure Bonds. Evidently, the growth of infrastructure projects, especially renewables, accelerated during that period. Currently, the Agriculture Infrastructure and Development Cess and the Road and Infrastructure Cess are levied on the sale of petrol and diesel. Similarly, a cess can be earmarked for financing Green Infrastructure projects. We have also witnessed a surge in the Energy exchange prices late, with the thermal merchant power plants being the biggest beneficiaries in the Day-Ahead Markets. Although the Central Regulator has stepped in and put a forbearance price for such sale of power, however, a mechanism should be in place to introduce sharing of such windfall gains by contributing a certain percentage of the profits towards Green Infrastructure development. Shri Sitesh Sinha is the Head, Credit, and Senior Vice President at PTC India Financial Services Limited. Disclaimer: The opinions expressed are of the author/interviewee and do not necessarily reflect the views of Business Insider India. The article has been partly edited for length and clarity. This column is part of June 2022’s month-long awareness campaign on the theme “Only One Earth: Sustaining People, Planet and Prosperity” by <a href="https://www.businessinsider.in/sustainability">Business Insider India’s Sustainability Insider</a>.

OPINION: India’s fight against climate change hangs in balance! Here’s how the country could finance a sustainable future

Vivek Baherwani

Latest Stories from Vivek Baherwani

OPINION: Sustainability—The absolute essential for business and commerce today! Are we ready for the transition?

Vivek Baherwani

OPINION: India’s fight against climate change hangs in balance! Here’s how the country could finance a sustainable future

Sitesh Sinha

Popular Keywords

Buying Guides