World Environment Day | Why climate action is a national priority
An emerging concern is that climate tech is the new frontier for strategic advantage for companies and countries. India cannot afford to be left behind in emerging technologies and we should not be replacing fossil fuel dependency with climate tech dependency, Environmental Defense Fund's Hisham Mundol.
By Hisham Mundol June 5, 2024, 12:21:33 AM IST (Published)
With the dust settled after the recent elections and the new government taking charge soon, it is wise to focus on climate change — the single biggest challenge facing humanity. There is broad consensus in India about its severity as well as the urgency for action. Tackling climate change is however also incredibly complex and it is important to call out what should be the biggest priorities for India.
Energy
India’s target to have 50% of all electricity generation capacity from renewable sources by 2030 is impressive, as is the progress on this which is now 190 gigawatts of renewables. However, there are headwinds that need to be tackled. Capacity increases have slowed down and need to move at a fast pace to meet these targets.
Also, while about 45% of India’s installed capacity is through renewables, the figure for how much of this is used is closer to 25%. Fixing the bottlenecks behind this like grid infrastructure, purchase policies of DISCOMs (power distribution companies) and building storage solutions — tough as they are, are essential. In addition, India needs to accelerate non-solar options like wind and safer nuclear. The benefits are manifold — reduced emissions and increased energy security. A framing that is helpful to add is the competitive advantage for Indian industry from lower energy costs.
Water
It is not an exaggeration to state that India is staring down a water emergency. The starting point is difficult — with 18% of the world’s population but only 4% of the water resources in India. More than 60 crore people face water stress, and of the 540 districts facing water stress, 100 districts fall in the extreme to severe status. India is majorly largely dependent on groundwater for agriculture and drinking water.
The statistics on groundwater are deeply concerning — with government estimates suggesting ½ of groundwater is being used unsustainably. Overuse and poor conservation of groundwater have led to half of groundwater being used unsustainably and ground water levels falling sharply. As if that weren’t enough, 70% of India’s groundwater is polluted by industrial emission and excessive nitrogen fertiliser use.
Securing India’s groundwater should be looked at as a national strategic priority, requiring scientific water management practices to be undertaken on a war footing, and for the conditions that have distorted agriculture (where crop and water resources are not aligned) to be remedied.
Forest Cover
While reducing carbon dioxide emissions are obviously needed, Earth’s biggest carbon sinks are oceans and vegetation, particularly forests. Conserving and expanding forest cover especially securing indigenous population and biodiversity of our forests is the most effective way of capturing as much of the carbon that has and is being emitted. This requires concerted programming and financial resources, but the economic, environmental and social returns on these investments make them the amongst the most promising deployment of time and money possible.
Agriculture
Half of India’s population is dependent on agriculture. They are relatively poorer than national averages and are the most vulnerable to climate change. While at no stage should India’s farmers be blamed for the climate crisis, this approach should not preclude work on building their resilience to climate change and help them contribute to climate action.
Remarkably, there are solutions that will drive the triple win of increased incomes, secured yields and reduced emissions. Most notably is the need to optimise nitrogen fertiliser so that farmers do not spend excessively on them, and government subsidies are more productively used. Similarly, increasing productivity from Indian livestock can be advanced through improved health, nutrition and breeding practices. Solutions that make climate sense need to be taken to scale, and the right incentive structures put in place to promote these practices.
Industrial Efficiency
Indian industry can create significant long-term shareholder value through sustainability, but it needs to be authentic, ambitious and concerted. This needs financing, technology and talent. The next wave of manufacturing expansion in India should evolve into a wave of sustainable manufacturing expansion. Future rounds of Production Linked Incentives (PLIs) or similar schemes and greater and more concessional financing should incentivize greener manufacturing and help to alleviate the green premium (which is the higher costs of greener goods or processes).
India spends nearly 50% more on freight and logistics than industrial countries. Shifts in the transport mix so that more is moved on rail and by water rather than road is the biggest way of both reducing costs and restricting emissions.
Climate Technology
The Indian economy is projected to double every decade for the next 2-3 decades. A proportionate increase in emissions will severely test India’s poor, India’s food systems and India’s health infrastructure. One way that this growth — which is desperately needed to reduce poverty and increase prosperity — is through climate technology. At 0.7% of GDP compared to 1.6% for industrial countries, India currently spends far too little on all R&D.
Only 40% of R&D spend in India is from the private sector, compared to 70% for industrial countries. We need to catalyse the Indian climate tech ecosystem since India is one of the few countries (along with China) which makes middle-of-pyramid innovation, which have the potential to scale. The fact that 1.5 million electric vehicles were sold last year in India with most of them being scooters and three-wheelers is testament to this.
An emerging concern is that climate tech is the new frontier for strategic advantage for companies and countries. India cannot afford to be left behind in emerging technologies and we should not be replacing fossil fuel dependency with climate tech dependency. Deeper partnerships are needed between government, industry and the innovation communities in India to work on the toughest scientific problems. There is a case for PLI-style Research Linked Incentives to drive greater private sector participation in R&D.
In conclusion, climate change is the crisis of the century but equally represents the business and strategic opportunity of the century. A new government is an opportunity for renewal and determination. The new government will be well served to make important steps towards this and setting India on an exciting trajectory for both nation and planet. These are exciting times.
—The author, Hisham Mundol, is Chief Advisor, Environmental Defense Fund, India. The views expressed are personal.
