STRATEGIES FOR LOW CARBON DEVELOPMENT OF NATIONS

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Dr Shalini Sharma
CEO, Krystahl
URL: www.krystahl.in 

India and many developing nations are struggling with climate change and its impacts. Nowadays in Sept/ Oct 2022, we are experiencing the rains and that’s not only an unusual experience but it’s an unusual shift change in atmospheric pattern, leading to huge losses for farmers, thus for humanity. 

Climate change shifting farmers toward marginalization is only one example, but the fact is that climate change is shifting humanity toward extinction. Who is the culprit behind climate change? Farmers? we the people & cities? IT companies? Mining companies? Manufacturing companies? Power sector? 

As we all know and according to various published sources (Eg. Statista 2022, https://www.statista.com/statistics/955980/india-distribution-of-ghg-emissions-by-sector/) power sector is the highest emitter followed by manufacturing and transportation sectors. Agriculture is also seen as the highest emitter but in generally ‘carbon sequestration’ and ‘Oxygen emission’ and ‘food generation’ (those are basic requirements for the survival of human beings) and its social benefits are not taken into consideration while calculating the emissions from this sector, thus it seems a faulty representation. The next is the power sector and manufacturing, construction, and transportation sectors; those supple to take action to reduce their emissions, to reduce climate impact.
  • How many industries within this sector have their carbon inventory and what strategies they are following to reduce their emissions? - Is a big question, which we know, no one dares to ask large industries! 
  • How do these industries track their emissions to showcase their progress? - Is the second big question, if these industries are taking action to prevent/reduce emissions and related climate impact.
Sanshodhan (www.SustainabilityExchange.World ) suggests five-point agenda that can be used by governments/regulatory authorities and businesses & industries to account for, implement, track, and perform to reduce greenhouse gas (GHG) emissions and related climate impacts. The details are provided below:

1. FISCAL INSTRUMENT FOR GREEN GROWTH: FOR CORPORATES, BY CORPORATES

A group-level “centralized pool of funds" under the supervision of the Chairman of the group should be developed.  All profit-earning units within the group should contribute up to 5% of their profit (per annum), into their ‘centralized fund pool’. This will be far less than their marketing & advertisements budgets for sure. This ‘centralized fund pool’ shall aim to assist the group's “polluting/ needy/ less green units within that group". With this strategy, the business group will be able to achieve sustainable development while investing in ‘greening their own non/less green unit’. This will lead to the "greening of all manufacturing facilities within a group”. Over the period such companies will be able to contribute to UN global goals.

2. MANDATORY SUBMISSION OF BUSINESS RESPONSIBILITY REPORT (BRSR) BY ALL THE COMPANIES WITH  PROFIT MORE THAN 50 Cr/Annum

Mandatory submission of the BRSR will enhance the flow of funds, public-private partnership (PPP) and investment for societal development. CSR funding can support missions such as "Improving Public Schools" and "Improving Governmental Hospitals" and related facilities for healthy social development. Submission of data in a standard/country-specific report format (like BRSR) will facilitate impact analysis. The outcome of the analysis can be used to develop effective policies and appropriate decisions. 


3. GREEN PROCUREMENT POLICY: GOVERNMENT’S LEADERSHIP TO DRIVE THE CHANGE IN BUSINESSES

The use of eco-friendly materials for all government offices can be initiated. Since the government is a major consumer. Regular suppliers will need to start environmentally friendly production and operations because they could not afford to lose business. Further, the ‘green procurement policy’ shall be made compulsory. 

Greening MSMEs (mainstream supply chains) is therefore critically important. The implementation of the "green procurement policy" will green OEMs, thus MSMEs, the supply chain of major manufacturers, improve 5R and lead to "production with minimal and natural resources".


4. MULTINATIONAL COMPANIES IN INDIA TO IMPLEMENT ‘OUT OF BOUNDARY’ MEASURES TO CLIMATE-PROOF OWN OPERATIONS & LOCAL SOCIETIES
Multinational companies with manufacturing operations in India should follow the “Environmental & Sustainability Rules" (read the upcoming blog on - Environmental Regulations in India). They should not differ from the rules in their own country. For eg. In developed countries, manufacturing facilities take ‘off-limits' measures such as ‘water collection', ‘water conservation', ‘equal employment opportunities, etc. but the same company does not do so in their operational units in developing countries. That entails the exploitation of the host country's natural resources. 

In addition to cheap labor, free natural resources are a bonus for international/multinational enterprises that create their unit in developing countries like India. Natural resources are scarce and available for use within host countries. Multinational (manufacturing) companies entering India shall mandatorily share the responsibility of conserving natural resources and preventing natural resource depletion.

As per the ‘the polluter pays’ principle, the Indian Government shall place a price on natural resources like water used in industrial operations, land, air, and bio-diversity. The price of these resources will help to stimulate the Indian economy.

As the norms for SPM, SOx, BOD, COD, etc defined; norms for Water harvesting - equivalent to the consumption by the industry; Landscaping & reforestation mandate, and Oxygen generation mandate, should be established, mandated, tracked & monitored for all companies setting up their unit in India.

5. GREENHOUSE GAS ACCOUNTING: MANDATORY FOR ALL BUSINESSES ABOVE INR50Cr
"If you can't measure it, you can't control it". Until companies start measuring their emissions, will not be in a position to implement solutions to solve the challenge. This means that greenhouse gas accounting must be mandatory for all businesses at least those owing profit INR >50Cr per annum. This will allow businesses to analyze and make decisions to reduce GHG emissions. This data can be fed into a central monitoring system (during the implementation of MRV) to assess the impact at the national level & this will be instrumental in setting up a useful and greenwash-proof ‘carbon market' in India.

NOTE: This blog was published by ICE&SDGs (www.ce-sdg.org) in Aug.2018. Above is an updated version. 
Copyright@Krystahl

 

       


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