By Adhvith Dhuddu.
(Op-ed as appeared in the Hindu Business Line on December 8th, 2009)
In the US, discussions about climate change are often partisan and impassioned. While the Democrats, who control Congress and the White House, largely accept the potentially insidious consequences of climate change, Republicans continue to deny the climate change phenomena. I mention this political bickering about climate change in the US because, as they struggle to reach a consensus on this volatile issue, we in India have largely accepted that climate change is something to confront, but have perceived it as a threat to our economy rather than an opportunity.
How reforms paid-off
When I think of climate change, I often remember a quote that Dr Manmohan Singh, as Finance Minister, referred to during the 1991 reforms, “An idea whose time has come.” That was just two decades ago, and we all remember how these reforms were pronounced by many “experts” as harmful and a threat to the Indian economy and local businesspersons. Their gloomy forecasts have only been debunked.
Likewise, climate change according to me is, “A phenomena whose time is coming whether you like it or not.” A rendezvous with destiny is eminent; to accost climate change in India as a threat to our economy rather than an opportunity will be damaging to our society, the Government and the economy in the long run. The reforms in the early 1990s have been a win-win-win for the people, businesses and the Government.
Climate change presents a similar opportunity. If India is bold and seizes the moment, a similar win-win-win can be created with a thriving new industry in India. Like how the IT revolution spurred exports, created employment and helped the exchequer, an ET (Energy Technology) revolution can do the same. No one exemplifies the threat and the opportunity better than renowned author and columnist, Thomas Friedman, in his book, Hot, Flat and Crowded.
In two decades, by 2030, the International Energy Agency forecasts that global oil demand will rise to 116 million barrels/day from 87 mbpd. But the startling fact is that two-fifths of this increase will come from India and China.
Clean energy
Clearly, energy consumption is set to rise considerably. But what matters is how the rise in demand is met: by embracing climate change and favouring an ET revolution and clean energy initiatives, or “protect” our economy under the veil of “let's become serious about climate change later, after we've had our share of polluting,” only to buy modern and advanced energy technologies from China and the West at a future date.
On this particular issue, the Chinese deserve credit as they've shown leadership and recognised climate change as a significant opportunity. Some of the leading solar, clean energy and green tech companies are now based out of China. Both the government and industries are investing millions in research and development of clean energy technologies and very soon the Chinese will be exporting affordable and quality energy technology solutions to many countries.
Enthusiastic youngsters
But in India one heartening observation is that Gen Y has identified this as an opportunity. Students and young entrepreneurs are churning out business plans and setting up small businesses in the clean energy sector.
A few months ago I was privileged to be on the jury of Manthan 2009, a paper presentation competition arranged by the Federation of Karnataka Chamber of Commerce and Industry (FKCCI).
Amazingly, the first and second place winners presented intriguing and innovative solutions in the green energy and alternative energy sector. Fuel from coconut fibre and the business of carbon credits won top accolades.
Ministry initiative
It's unfortunate to see the media and the Environment Ministry preoccupied with the wrong issue, i.e., whether we agree to legally binding emission cuts or not. What matters is if the Environment Minister, Mr Jairam Ramesh, can envision a clean and green India, whether he can inspire a generation to embark on an entrepreneurial journey in the clean energy and ET sector, whether his ministry can facilitate and stimulate this, and whether he can present an energy vision for India.
We don't need to bind ourselves with emission cuts, what we do need to bind ourselves with, is the fact that the climate change phenomena is a tremendous and unprecedented opportunity for an emerging, developing and vibrant economy like ours. If one recognises this and takes the required steps, we can automatically alleviate the emission problem.
Incentivise business
When it comes to actual policy-making, the Environment Ministry needs to realise that incentivising business' to adapt a clean and green approach will yield better results than mandating them to do so. To create a win-win-win for the Government, business and the people, it's imperative that the Environment Ministry assume a proactive and forward-looking stance as opposed to a protective and defensive stance.
Climate change will not wait for any country to fulfil its fair share of pollution, or any technology to be developed to combat emissions. One thing is certain: how climate change will unfold is highly unpredictable, but countries that are well prepared will be at a significant advantage during the crunch times. Opportunities like these don't present themselves often, and India is poised to seize this chance. We must not let it go by.
Online link to this article: http://www.thehindubusinessline.com/todays-paper/tp-opinion/sunny-side-of-climate-change/article1071120.ece?ref=archive
(Op-ed as appeared in the Hindu Business Line on December 8th, 2009)
In the US, discussions about climate change are often partisan and impassioned. While the Democrats, who control Congress and the White House, largely accept the potentially insidious consequences of climate change, Republicans continue to deny the climate change phenomena. I mention this political bickering about climate change in the US because, as they struggle to reach a consensus on this volatile issue, we in India have largely accepted that climate change is something to confront, but have perceived it as a threat to our economy rather than an opportunity.
How reforms paid-off
When I think of climate change, I often remember a quote that Dr Manmohan Singh, as Finance Minister, referred to during the 1991 reforms, “An idea whose time has come.” That was just two decades ago, and we all remember how these reforms were pronounced by many “experts” as harmful and a threat to the Indian economy and local businesspersons. Their gloomy forecasts have only been debunked.
Likewise, climate change according to me is, “A phenomena whose time is coming whether you like it or not.” A rendezvous with destiny is eminent; to accost climate change in India as a threat to our economy rather than an opportunity will be damaging to our society, the Government and the economy in the long run. The reforms in the early 1990s have been a win-win-win for the people, businesses and the Government.
Climate change presents a similar opportunity. If India is bold and seizes the moment, a similar win-win-win can be created with a thriving new industry in India. Like how the IT revolution spurred exports, created employment and helped the exchequer, an ET (Energy Technology) revolution can do the same. No one exemplifies the threat and the opportunity better than renowned author and columnist, Thomas Friedman, in his book, Hot, Flat and Crowded.
In two decades, by 2030, the International Energy Agency forecasts that global oil demand will rise to 116 million barrels/day from 87 mbpd. But the startling fact is that two-fifths of this increase will come from India and China.
Clean energy
Clearly, energy consumption is set to rise considerably. But what matters is how the rise in demand is met: by embracing climate change and favouring an ET revolution and clean energy initiatives, or “protect” our economy under the veil of “let's become serious about climate change later, after we've had our share of polluting,” only to buy modern and advanced energy technologies from China and the West at a future date.
On this particular issue, the Chinese deserve credit as they've shown leadership and recognised climate change as a significant opportunity. Some of the leading solar, clean energy and green tech companies are now based out of China. Both the government and industries are investing millions in research and development of clean energy technologies and very soon the Chinese will be exporting affordable and quality energy technology solutions to many countries.
Enthusiastic youngsters
But in India one heartening observation is that Gen Y has identified this as an opportunity. Students and young entrepreneurs are churning out business plans and setting up small businesses in the clean energy sector.
A few months ago I was privileged to be on the jury of Manthan 2009, a paper presentation competition arranged by the Federation of Karnataka Chamber of Commerce and Industry (FKCCI).
Amazingly, the first and second place winners presented intriguing and innovative solutions in the green energy and alternative energy sector. Fuel from coconut fibre and the business of carbon credits won top accolades.
Ministry initiative
It's unfortunate to see the media and the Environment Ministry preoccupied with the wrong issue, i.e., whether we agree to legally binding emission cuts or not. What matters is if the Environment Minister, Mr Jairam Ramesh, can envision a clean and green India, whether he can inspire a generation to embark on an entrepreneurial journey in the clean energy and ET sector, whether his ministry can facilitate and stimulate this, and whether he can present an energy vision for India.
We don't need to bind ourselves with emission cuts, what we do need to bind ourselves with, is the fact that the climate change phenomena is a tremendous and unprecedented opportunity for an emerging, developing and vibrant economy like ours. If one recognises this and takes the required steps, we can automatically alleviate the emission problem.
Incentivise business
When it comes to actual policy-making, the Environment Ministry needs to realise that incentivising business' to adapt a clean and green approach will yield better results than mandating them to do so. To create a win-win-win for the Government, business and the people, it's imperative that the Environment Ministry assume a proactive and forward-looking stance as opposed to a protective and defensive stance.
Climate change will not wait for any country to fulfil its fair share of pollution, or any technology to be developed to combat emissions. One thing is certain: how climate change will unfold is highly unpredictable, but countries that are well prepared will be at a significant advantage during the crunch times. Opportunities like these don't present themselves often, and India is poised to seize this chance. We must not let it go by.
Online link to this article: http://www.thehindubusinessline.com/todays-paper/tp-opinion/sunny-side-of-climate-change/article1071120.ece?ref=archive
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