THE GLOBAL CLIMATE CRISIS AND : PERSPECTIVES, SOLUTIONS AND THE WAY AHEAD

A Follow Up Report To The Climate Leaders’ Dialogue

Hosted By ReNew Power Private Limited

On 22nd January, 2020 Hotel Cresta Sun | Davos, Switzerland On The Sidelines of World Economic Forum Annual Meeting 2020 Participants at ReNew Power’s Climate Leaders’ Dialogue with Vaishali and Sumant Sinha at the Hotel Cresta Sun, Davos

A glimpse of delegates discussing the agenda Participants

Michael Spence Sanjiv Sahai Gurdeep Singh Jerome Pecresse Economist, 2001 Nobel Secretary to the Chairman, NTPC CEO, GE Renewables Prize Winner Govt. of India, Ministry of Power

Robert Johnson Kristen Panerali Vikram Gandhi Dipender Saluja President, Institute Head – Electricity Senior Lecturer, Managing for New Economic Industry, World Harvard Business Director, Capricorn Thinking Economic Forum School Investment Group

Shiv Khemka John Defterios Justin Worland Meagan Fallone Vice Chairman, Emerging Markets Energy & Environment CEO, SUN Group Editor, CNN journalist, TIME Barefoot College

Barbara Ann Bernard Chris Canavan Amit Nayyar Kevin Michael Esvelt Founder & CEO, Partner, Lion’s Head President, Paytm MIT Media Labs Wincrest Capital Global Partners Hosted By

Vaishali Nigam Sinha Sumant Sinha Founding Chair, Chairman & Managing ReNew Foundation Director, ReNew Power FOREWORD

Climate change, or what has now snowballed into an emergency, is perhaps the biggest modern day challenge that humanity faces today. As we continue to pump tonnes of carbon into the environment, with every passing day, the crisis is only getting aggravated. Nearly 5 years since the Paris Agreement, the is in fragile health, with several countries still not meeting their emission reduction targets or simply not showing as much intent as required in the form of policies and programmes. The shocking withdrawal of USA has jeopardized any tangible future progress and the credibility of the Paris Agreement is under threat. It is disturbing as we are well aware of the grim consequences, and it’s not just about the environment any more. We are risking lives and livelihoods. If we are unable to prevent the increase in global temperature, entire cities might soon get wiped out from the world map. We have very little time to get our acts right and secure the planet for the future generations.

In the current scenario, India has emerged as a crucial entity, given its sheer size and the volume of carbon emissions. The continued success of the climate action programme hinges on India’s progress towards a less carbon economy. Thankfully, India has

4 fared much better than some of the developed nations with the Government showing a strong commitment to sustainable growth. India has seen a massive expansion in its renewables capacity on the back of a favourable policy environment and several nationwide programmes have been launched to ensure that economic growth is not at the expense of the environment. However, even if we do manage to meet our aggressive targets, due to the huge projected rise in demand, coal will continue to be an important input, implying a rise in carbon levels, given the lack of other options. This is a very big challenge for India’s policymakers and needs urgent attention.

At ReNew Power, we are glad to be playing a part in India’s transition to clean energy as the nation’s largest renewables energy company. However, going beyond business, we have always tried to be at the forefront of the climate action agenda, utilizing platforms such as WEF to mobilize different stakeholders, share knowledge and opinion, discuss strategies and chart a practical course of action. Earlier this year, during the Annual Meet at Davos, we organized our second thought leadership roundtable to discuss the current climate crisis and explore solutions for the same. We were fortunate to host a diverse mix of participants including top policymakers, business leaders, academia and representatives from media and civil society. We had an engaging hour long session that threw up various perspectives, an honest assessment of where we are, what various stakeholders should do and some lesser known aspects linked to the climate situation. The discussions mainly revolved around four distinct themes and we have compiled a follow up report that delves deeper into those themes and also includes a broad set of recommendations in each area.

I sincerely hope that this report will provide valuable food for thought for governments, businesses and individuals as we collectively work towards building net zero emission economies. The report should also be able to provide a framework for immediate action that is needed to revitalize the climate movement, and also a long term vision. I will be happy to receive any suggestions or comments that may be forthcoming once you have gone through the report. The climate time bomb is ticking we need to pull up our socks now and take corrective actions before it is too late. Each of us has roles to play in this massive drama and we must work in a coordinated manner to ensure a happy ending.

Best Sumant Sinha Chairman & Managing Director, ReNew Power

5 6 TABLE OF CONTENTS

1. Executive Summary 8

2. Chapter 1 - The Global Climate Crisis – 15 Time To Walk The Talk

3. Chapter 2 - Climate Change Mitigation: 23 The Push And Pull For The Private Sector

4. Chapter 3 - Balancing Growth With 31 Climate Commitments – A Look Into India’s Story

5. Chapter 4 - Climate Action 37 And The Youth – Time To Pass The Baton?

6. References 42

7 Executive Summary

The climate crisis is real and upon us and is developing into a bigger threat every passing day. It is now clear that if we do not get our act together and rein in climate change, the consequences could be disastrous for both our environment and us humans. As global temperature levels continue to rise, we are seeing extreme weather patterns playing havoc with human and ecological systems with women and children bearing the brunt. There is no denying that awareness levels have risen with climate action making it to the agenda of several global conferences, but sadly we are yet to see nations walk their talk. Countries are far from meeting their commitments to cut back carbon emissions and the targets set at the COP 21 at Paris are in serious jeopardy. While the withdrawal of the US dealt a severe blow to the climate movement, all eyes are now set on India, with the world expecting India to step up as a climate leader and set an example for other developing countries in terms of progressing towards a less carbon economy. It is against this sombre backdrop that ReNew Power organized a Climate Leaders’ Dialogue on the side-lines of the World Economic Forum’s 2020 Annual Meeting at Davos. The meeting saw participation from a wide mix of delegates including business leaders, investors, economists, policymakers, academia, environmental journalists and representatives from civil society. The objective was to discuss the current situation and chart out an actionable agenda to breathe life into climate action. Over an absorbing hour or so, the participants critically analysed various aspects of the climate crisis and agreed that the lack of urgency shown by countries to reduce greenhouse gas emissions was highly disturbing. They shared valuable insights and experiences and discussed the way forward to avert a global climate crisis. There were broadly four strands of discussion – each of which have been blown up to a separate chapter in this follow up report. Chapter 1 begins with a statistical representation of the grim current situation, globally and in India, with carbon emissions continuing unabated. It underlines how the current rate of increase in temperature is likely to impact lives and livelihoods on a massive scale if not checked in time. It highlights the disappointing pace at which the climate action agenda has moved after the ambitious goals set in Paris at COP 21. Developed nations have failed to meet their commitments and developing nations have used this as a shield to justify their inaction – the result being a deadlock leaving us far short of where we should have been in our pursuit of net zero carbon economies. To meet goals set for 2030, global reduction targets need to increase three to six fold. This can only be possible if there is a strong coalition of governments, businesses and civil society working in a coordinated fashion. After the damp squib that was the COP 25 in Madrid, the forthcoming COP 26 at Glasgow is perhaps the last chance for the global community to bury its differences and frame an actionable strategy to work towards decarbonizing economies, before it is too late. Governments must show real intent to curb carbon emissions through a concrete plan, legal sanction and adequate financing. They must be backed by the private sector adopting sustainable practices in their operations. It is important to look beyond the power sector and focus on reducing carbon intensity of sectors like steel, cement and transportation. It is also important to fund the decarbonisation efforts in developing countries and multilateral lending

8 institutions must make this their priority. Investors and asset managers form a very important potential pressure group–they must actively integrate climate risk in their decision-making. The world is now looking at India to play an increasingly larger role in shepherding the climate action movement. The Indian Government has rightly focused on sustainable growth and adopted several policies and programmes to progressively reduce carbon levels. The COP 26 at Glasgow should see India playing a central and assertive role as the uncrowned leader of the emerging nations bloc. It is the right platform for India to share its success stories, particularly how the Government has nurtured and backed what is now a vibrant renewables sector, so that it can be a role model for other developing nations. India must lead the voices demanding “” and urge the developed countries to both clean up their own acts as well as transfer technology and funds to the developing nations to enable the latter to decarbonize as well. It is also an opportunity for India to highlight the need for a well regulated global market in carbon credits. To sustain the momentum of climate action, it is crucial that we have more like minded nations coming together to form broad coalitions, set clear measurable targets for carbon reduction, share sustainability best practices and offer technological support where possible. An EU – China coalition can be particularly effective by boosting growth of electric vehicles market and encouraging a spurt in green investments. Global financial sector reforms will also be needed to sustain this battle–we need to see a progressive reduction in lending to fossil fuels based businesses and divert funds towards more clean investments. The gravity of the situation calls for comprehensive, multi stakeholder action, we simply cannot afford to lose any more time. Chapter 2 looks at another key climate warrior – the private sector and the need to integrate sustainability as a part of organizational ethos. The Triple Bottom Line philosophy, which is well documented, presents a compelling business case for the private sector to adopt sustainable practices in their operations, given the positive impact on costs, profits and long term value creation. If there is scope for any further push, then it needs to come from the investor community. In a positive trend, many leading investors are now actively looking to have carbon neutral portfolios and are refusing to back companies with no ESG strategy or those whose operations threaten the environment. This has, even if it’s only the beginning, has forced companies to acknowledge and address climate risks which impact their business. Organizations are now focusing on a governance model that drives a culture of sustainability with empathy for communities and the environment at large. In addition to proactively reducing carbon and water footprint, companies are also regularizing the disclosure of this information. Investors must back innovations and start-ups that can impact climate change mitigation efforts. Investor pull needs to be complemented by a matching policy push, especially in developing nations, that mandates flow of funds to companies who have a better ESG and sustainability track record. There is a growing call for making mandatory the recommendations of the Task Force on Climate Related Disclosures (TCFD), so that investors and financers can take better informed decisions while evaluating a company in terms of climate risks. The

9 current level of disclosures is way below what is required for a mass channelizing of funds towards sustainable and resilient businesses. There are still plenty of ambiguities and grey areas in the way climate risks are being identified and managed, and most organizations are still only telling a part of the story. There is a belief that if TCFD recommendations are made mandatory and extended to all sectors, this will induce wider and better reporting, in turn leading to optimal investment decisions and companies better managing their climate risks. Side by side, it is imperative that investors increase capital allocation towards green projects – clean tech, renewables, e-mobility and more and also develop new and innovative credit instruments for this purpose. Investment value chain needs to be sensitized such that climate risks are accurately priced and built into investment decision making, to avoid misallocation. Investors will have to nudge businesses into disclosing more details around their ESG performance, levels of carbon emission and track closely the progress on these parameters. Investors must exert their authority as part owners to drive companies to adopt sustainable practices – through regular persuasive engagements. It is the investor community who can lead companies to prioritize disclosure of emission figures, framing of climate risk mitigation strategies, steps to boost energy efficiency and greening of supply chains. It is noteworthy that India Inc. has started reorienting their business practices and adopting more climate friendly ways of running their operations. There is a lot of emphasis on effective and wise management of energy, water and waste by businesses, as companies strive to make sustainability a way of life. We are seeing more corporates cutting down on water consumption by opting for water harvesting and water saving technologies, using clean energy, recycling waste, using substitutes for inputs with high carbon content, besides curbing use of plastic. Having said that, there still exist some formidable barriers like lack of policy coherence, inadequate awareness of the business rationale for SDGs, and absence of clearly defined global mechanisms for corporate support to SDGs. In India, we also need better execution partners on the ground who can help corporates to bring about a meaningful transformation. Skill development and capability building in the social sector is the need of the hour. Finance is also a constraint and we need to strengthen existing channels and come up with new avenues of finance so that companies can invest in SDGs. There is also not as much awareness about convergence of SDGs and business priorities and this must be addressed through more knowledge sharing, mentoring and highlighting of success stories and best practices. We need to fix clear responsibilities on both the Government and private sector to advance SDGs as a must do. There must be well defined KRA driven metrics to measure performance in this area. Domestic investors and lenders must also focus on business alignment with SDGs while taking a lending decision, they must regularly engage with private firms and discuss steps taken to address sustainability and climate related issues. India Inc. must also realign their CSR engagements to promote SDGs and this may be helped by specific tweaks in legislation. Amidst the shocking apathy shown by nations towards solving the climate crisis, India has stood apart as a bright spot. Credit goes to the Indian Govt. for adopting a climate resilient growth model, with sustainability at the heart of national policymaking. Not

10 surprisingly, this has boosted India’s stocks as an emerging climate leader, enabling it to play a critical role in framing of the Paris Agreement. Prime Minister Narendra Modi further enhanced this image when he established the International Solar Alliance as a network of countries lying between the two tropics that’d cooperate for wider adoption of solar energy and its applications. The international community now recognizes India as a very important player in the battle against climate change, given that it is the third largest emitter of GHGs globally. The Indian Government, particularly under PM Modi’s leadership, has responded well with several programmes reflecting its resolve to transition to a zero carbon economy. Chapter 3 offers an in-depth look into the India story – how it approached the environment issue from a policy perspective and the success it has achieved in a relatively short time span, which can well be a model for other developing nations to emulate. India, like most other emerging nations faces the challenge of balancing its rising energy needs with a global commitment to reduce carbon emissions. Thankfully, policymakers had the foresight and wisdom to link sustainability with growth. As early as 2008, India came up with a National Climate Action Plan which led to the formation of 8 national missions related to the environment. India was among the handful of nations to declare clear, measurable targets for phased decarbonisation and has shown real desire to achieve these, despite the lack of promised technology and funds transfer by the developed nations. The most significant development has been the shift from fossil fuels to renewables which has helped bring down carbon levels. Over time, thanks to advances in technology, the price of power produced from renewables has fallen below that of thermal power, thus making renewables the more commercially viable alternative. While thermal power will still be needed for meeting the soaring demand, it is unlikely that India will approve setting up of any new coal fired power plant now, the future of energy lies firmly with renewables. Fast tracking renewable energy also serves to increase last mile access to energy in India, thus transforming lives for the better, besides employing a large section of the working age population. Since 2014, India has witnessed an aggressive expansion of its renewables capacity thanks to focused attention from the Central Government, which has created a highly conducive policy environment for the sector to thrive. Several incentives, tax breaks, competitive bidding, introduction of RECs/RPOs and a stiff target declared by the Indian Govt. have helped rapid ramping up of capacity. The Govt. declared a target of 175 GW from renewables by 2022 which we are half way to achieving, with a current installed capacity of over 87 GW, another 30 GW being developed and a further 40 GW capacity set to be tendered. Encouraged by the progress and the drop in price of renewables, the Govt. has now further raised the target to 450 GW by 2030. The pace of India’s transition to clean energy has yet no match in the developing world, when we consider the sheer size of the economy. Besides the sharp drop in price, new technologies like floating solar, offshore wind and wind – solar hybrids will propel this sector ahead. Another area where the Indian Govt. has done good work is boosting energy efficiency. This is critical as India is set to see a near doubling of its demand for energy by 2030 and renewables can at best meet half of this incremental demand, with thermal power catering to the rest. More efficient use of energy will ensure the incremental demand for power is lesser and lesser as the economy grows, thereby ensuring less

11 carbon emissions. The practice of using standards and labels for electronic appliances has helped make them more efficient in terms of energy savings. Consumers now can choose those appliances that guzzle less power, over and above less energy efficient versions. The Govt. has also introduced Energy Conservation Building Code to decide minimum energy standards for new commercial buildings. Designers and architects of these buildings are now more conscious of the need to optimize energy savings. A unique initiative that has drawn attention is the Perform Achieve Trade (PAT) scheme – a market based mechanism to enhance energy efficiency in energy intensive industries through certification of energy savings which can be traded. Units which overachieve their specified energy savings targets are issued certificates for excess savings which they can sell to other units who have failed to meet their targets so that the latter can meet compliance requirements. Each ESCert is equivalent to 1 metric tonne of oil and this year India will be saving 12.5 million tonnes of oil equivalent through the PAT scheme. The UJALA scheme is another success story worth mentioning - world’s largest zero subsidy LED bulb programme for domestic consumers. Under this over 360 million LED bulbs were distributed nationwide to replace inefficient lighting resulting in significant saving of power, much lower electricity bills and drastic cut in carbon emissions. The Government is also working to fast track adoption of low carbon transport like electric vehicles for both cleaner air and reduced dependence on imported crude. It has declared subsidies and tax concessions for both manufacturers and buyers of EVs and is also taking steps to ensure adequate charging infrastructure. Several states have drafted their own EV policies and this sector is bound to see more action very soon. India has also set up a National Energy Storage Mission to encourage domestic manufacture of batteries and cells. As demand for EVs grows, this will push down price of batteries and drive growth in the Indian storage market. The Government has rightly recognized that high cost of batteries is the main barrier and is encouraging research and innovation to develop low cost affordable solutions. India is also at the forefront of stitching together effective coalitions to push the climate agenda forward, as exemplified by the formation of International Solar Alliance and the call for setting up the International Coalition for Disaster Resilient Infrastructure, with Prime Minister Narendra Modi, being the chief architect for both. It is also exploring global partnerships to develop low carbon pathways in hard to abate industries like steel and cement. Provision of clean cooking gas cylinders to over 150 million households, a phased elimination of single use plastic across the country and an integrated water conservation programme all reflect the Indian Government’s sincere efforts to mitigate impacts of climate change. However, there still exists room for improvement. Climate action needs to be mainstreamed into the process of budgetary allocation and policy making should be a more collaborative effort with inputs from climate scientists, industry, academia and civil society. To maintain the growth momentum in the clean energy sector, the Government must focus on improving transmission infrastructure, easing land acquisition norms, strengthening the grid and turning around the health of the discoms – both financial and operational. It is very important that discoms are able to meet RPOs and pay off dues to power generators on time so as not to squeeze liquidity across the sector value chain. At the same time, they must undertake necessary reforms

12 to cut AT&C losses. While the Central Govt. is extremely supportive of the renewables sector, the various state governments must also play ball. Policy flip flops at the state level and dishonouring the sanctity of contracts will send very negative signals to investors. The Government must also actively promote new technologies such as storage, floating solar, hybrid plants which are the future of this sector besides incentivizing rooftop solar. No new coal fired power plants should be sanctioned and the existing ones should be strictly monitored for compliance with emission standards. The concluding chapter 4 explores a relatively new dimension – how climate change specifically impacts the youth, including the mental health aspect. It also makes a case for the youth to step up and play a more active role in the climate action movement, given that they are the biggest stakeholders and most vulnerable to the impact of climate change. The world over, there is a growing consciousness and resentment amongst the youth, about the grave injustice the present generation is perpetrating by exposing the youth to a hazardous future. Today, the world has close to 2 billion youngsters, 90% of them are in developing nations and this count is set to rise by 2030. This youth brigade is more literate, aware, socially engaged and networked than ever before and they have a common enemy – the growing climate crisis. Research has shown that worrying about the ill-effects of climate change can induce stress and trauma in kids as their brains are still in formative stage and cannot handle as much pressure as those of adults. Youngsters are likely to be mentally disturbed and anxious and engulfed by a feeling of being let down by the previous generation. Yet another study cites poverty, malnutrition and diseases as likely fallouts of climate change which could lead to depression in the youth, especially in developing nations. There are several reports that talk about increasing climate induced anxiety amongst millennials. The problem is more acute in developed countries because children are less equipped to respond. Across the world, more and more youngsters are looking to channelize this anxiety and anguish into concrete action, they want to be in the thick of the action to save the environment and steer the agenda forward. They are clear they should not suffer for the mistakes of their elders, and inspired by youth icons like seventeen-year-old , they are taking to the streets, attending conferences and flooding social media to make sure their voices are heard. They are ready to inject much needed speed into this movement as the adults continue to drag their feet. Their energy and intensity is just the right tonic which the movement needs – a fact that is being increasingly recognized by all stakeholders. Several young crusaders, from USA to Africa, from India to Europe have picked up the gauntlet in the battle against climate change. These “little heroes” (some of them not even teenagers) are drawing attention like never before and collaborating with each other to lead movements in their respective geographies. Why are youth our best bet to lead the climate action agenda? The answer lies in their sheer number, the collective passion and flair for innovative solutions that they bring to the table and their high level of inter connectedness thanks to social media and other tools. There are clear reasons why the world is looking up to them as perfect agents of change. Firstly, they have a higher sense of morality, they are true to the actual cause and not loyal to any lobby or interest group and hence can be brutally

13 honest. Secondly, their uncluttered minds are free of any baggage, they bring fresh perspectives and are more likely to come up with out of the box solutions rather than being guided by the traditional line of thinking. The fact that they are fighting for their own future injects a greater sense of purpose and urgency in their dealings. Finally, today’s youth have extremely high levels of awareness of socio-environmental matters. They are natural innovators and adept at popularizing new habits, low carbon lifestyles and environment friendly choices. They are therefore a critical ally to have in the policymaking process and their presence is an absolute must at all climate dialogues. National Governments must therefore support, empower and finance youth led organizations and facilitate their mainstreaming in to the climate movement. We must ensure the youth have more platforms to meet, exchange ideas, share best practices and discuss potential solutions. Social media has enormous potential to develop the critical mass for youth driven climate movements, by connecting likeminded youngsters at the click of a button. The media also must celebrate these youth icons and take their stories to more such young people across the world. It will be helpful if climate consciousness is included in the school curriculum, like in Italy, to instil sensitivity about our environment in all young minds. We must also encourage new and popular modes of communications like comics, short films, concerts etc. to spread the message among youth. Given the huge potential of youth leading the climate movement, it is only fair that Governments give them their rightful space and a patient hearing. For starters, the youth must be a permanent feature at all climate summits where they should have the opportunity to attend key discussions, review the agenda, interact with leaders and even participate in dedicated sessions to express their concerns and plans. Governments should also invite youth activists for pre-budget discussions and look at allocating funds for youth led green projects, to give youth necessary hands on experience. It will be beneficial if youth can be mentored and groomed so they can pick up requisite skills and turn into effective leaders in the near future. Governments must collaborate with UN agencies to design and run capability building programmes for budding climate leaders and also encourage them with scholarships. It is also essential to create an enabling environment for young “greenpreneurs”, who will be the torch bearers of sustainability in private enterprises. We have a highly capable and ambitious youth brigade, raring to take over the reins of the global climate action agenda and inject a sense of much needed urgency. We must give them a chance and trust their ingenuity to tackle the climate crisis.

14 Chapter 1 THE GLOBAL CLIMATE CRISIS – TIME TO WALK THE TALK

We are releasing 56 gigatons of carbon into the atmosphere every year and the carbon budget that we have left to prevent the 2-degree increase in temperature, is only about 500 gigatons. So, that literally leaves us a time period of only 10 years to cross the 2-degree centigrade increase. When you think about the fact that there is such little time left, obviously it implies that business as usual in terms of climate change actions will really not potentially Sumant Sinha do the trick any longer. And it is time not just for CMD, urgent action, but emergency action. ReNew Power

Climate Change – water supplies and other impacts on humans and ecological systems. The perils Present Outlook of climate change and the havoc it can Sheets of ice across the Arctic are melting, wreak are more obvious now than ever several species are losing out on their before. The recent bushfires in Australia future and majority of the world is getting underlined the severity of the threat posed affected by irregular climate patterns. Yes! by climate change. The British charity The alarm is real and climate change is not Christian Aid reports that climate change a myth anymore. According to the United amplified 15 extreme weather disasters in Nations, ‘Climate Change is the defining 2019 that caused at least a billion dollars issue of our time and we are at a defining in damage in each case, notably the moment’. A report by Intergovernmental California wildfires, Typhoon Hagibis in Panel on Climate Change shows that if Japan and Cyclone Idai in Africa that also temperatures rise by 2 degree celsius, took 1300 lives. The worst affected will be more than 70 percent of Earth’s coastlines the vulnerable sections of the population in will see sea-level rise greater than 0.66 feet terms of loss of livelihood, food insecurity, (0.2 meters), resulting in increased coastal health disorders and displacement flooding, beach erosion, salinization of of habitats.

15 What It Means for India Besides farmers, industrial workers too According to the Global Climate Risk run the risk of seeing their productivity Index released by Germany-based think dip. According to the International tank, Germanwatch, India is the 14th Labour Organization, heat stress induced most climate change-affected country in productivity loss by 2030 could be the the world. Considering India has a vast equivalent of India losing 34 million full- coastline, the effects of sea level rise could time jobs, the highest among the world’s be disastrous for the country, with Mumbai most populous nations. and Kolkata in the line of fire. India has of late seen unprecedented spells of extreme India is also home to 7 of the top 10 most heat and cold waves and devastating polluted cities globally, with New Delhi floods. In 2018-19, as many as 2,400 notorious for its poor air quality. Major Indians lost their lives to climactic extremes landfills in urban metropolises are exhausted according to the environment ministry. and overburdened with waste disposal. The India Meteorological Department India is also among the 17 countries that (IMD) says these events are increasing in face “extreme high water stress” with huge both frequency and intensity. The World pressure on underground reservoirs and its Bank estimates that, at the current pace water tables, with major cities set to run of climate change, average temperature in out of groundwater soon. India could rise to 29.1° C by the end of the century from current level of 25.1° C. Such While most countries have started to feel a rise in mercury could potentially lead to a the impact of global warming, not many 10% reduction in per capita GDP by 2050, are doing enough to curb carbon emission in India’s central districts which are mostly levels, not many are doing enough to agrarian and with poor infrastructure. mitigate their carbon emissions.

Rank Country Emissions in 2017 (MtCO2) % of Global Emissions #1 China 9,839 27.2% #2 United States 5,269 14.6% #3 India 2,467 6.8% #4 Russia 1,693 4.7% #5 Japan 1,205 3.3% #6 Germany 799 2.2% #7 Iran 672 1.9% #8 Saudi Arabia 635 1.8% #9 South Korea 616 1.7% #10 Canada 573 1.6% #11 Mexico 490 1.4% #12 Indonesia 487 1.3% #13 Brazil 476 1.3% #14 South Africa 456 1.3% #15 Turkey 448 1.2% Top 15 26,125 72.2% Rest of the World 10,028 27.7%

Source: World Economic Forum (June 2019)

16 The chart above shows the country wise to tackle climate change, with around 190 carbon dioxide emissions while India’s countries pledging to restrict the average share in global greenhouse gas emissions increase in global temperature to below 2 is lower than that of both US and China. degrees Celsius above pre-industrial levels. The overall percentage of the MtCO2 This was to be achieved by all countries (2,467 Million Tonnes in 2017) is still the incrementally curbing anthropogenic 3rd highest in the world. Sadly, while greenhouse gas emissions by 2030. Another India accounts for almost 9% of carbon takeaway was that developed nations emissions today, which is actually quite would be providing finance and technology similar to Europe as a whole, the latter is transfer to the developing nations in order actually decreasing emissions, with India to accelerate the latter’s transition to going in the reverse direction.” cleaner fuel options. Unfortunately, as we head towards COP 26 at Glasgow (now In fact, India’s carbon emissions rate postponed to 2021 on account of COVID- is growing faster than any other major 19 pandemic), the major emitters (and economy in the world. If one goes simply by developed nations) have failed to lead by statistics recently published by IEA, India’s example and the developing nations have emissions rose 4.8% in 2018 compared to refused to bear a disproportionate burden, the year 2017. For this, the country has raising their voice against this new “climate faced backlash in the past and Indian capitalism”. This conflict has threated to diplomats have found it hard to debate the derail the Paris Agreement. overall emissions data. Geopolitical tensions and distractions However, India has been one of the breaking down cooperative behaviour foremost countries in developing a jeopardize effective climate action. The national programme to mitigate carbon dismal COP25 at Madrid is the biggest emissions. The Narendra Modi led NDA example – ending in a deadlock with Central Government has pushed hard countries trading blames, thwarting for a sustainable development model. In progress by pointing fingers at others’ keeping with its status as an emerging unfulfilled promises and dodging any climate leader, India is one of the founding concrete steps. The apathy shown by members of the International Solar Alliance Australia, Russia, Brazil & Saudi Arabia and a signatory to the Paris agreement. have badly dented climate action efforts It is also home to one of the largest but of course the most crushing blow was expansions in clean energy capacity when USA under President Donald Trump globally. The Central Govt. has focused announced its withdrawal. As we begin The on creating a conducive environment chart above shows the country wise carbon for transitioning to cleaner energy with dioxide emissions. While India’s share in several incentives geared to meet an global greenhouse gas emissions is lower aggressive target of achieving 175 GW of than that of both US and China, the overall renewables capacity by 2022 and 450 GW percentage of the MtCO2 (2,467 Million by 2030. Tonnes in 2017) is still the 3rd highest in the world. According to UNEP 2018 Emissions From Paris to Glasgow – need Gap Report, global GHG emissions should not exceed 40 Gt (billion tons) of CO2- to back intent with action on equivalent in 2030 if the world is to the ground limit the average rise in temperatures to The Paris Climate Conference (COP 21) was below 2C – and 24 Gt to limit it to 1.5C. the earliest structured initiative undertaken This means the current reduction targets

17 Global fossil fuel emissions are at 36 metric gigaton. The level you have to achieve to sort of stabilize things is 14. So we are at two and a half times And the IPCCC, issued a report that if we want to get over with the trouble quickly, we have to hit the global emissions targets by 2030. And that involves 7.5% reductions in global carbon emissions, per year. The global economy conservatively, is going to grow Michael Spence at 3%, because emerging economies have to grow. Professor of Eco- As you just said, that means the carbon intensity, nomics at Leonard N. Stern School of of the global economy, to be at that target, would Business, New York have to go down 10.5% every year, just because of University, Nobel this growth that everybody is going to experience. Laureate (2001) I think what animates the young people is that there is not anything remotely resembling a sense of urgency. There are just huge issues, about how to, in an international global basis, help, developing countries make these transitions faster.

need to increase by a factor between 3-6. circumstances have never been more With the US conspicuous by its absence, conducive for decarbonisation. Electric EU and China have a huge role to play as vehicles, renewables and energy storage frontrunners. Governments must mobilise are ready to unleash cost effective public and private funds for developing versions, R&D efforts on carbon capture, nations, discourage fossil fuel extraction low carbon aviation are about to fructify, and regulate financial institutions and mainstreaming of climate risks is a reality corporates around climate risk. Then again, and we have a generation that is aware we cannot leave the onus on national and sensitive to sustainability than ever governments alone – a strong coalition of before. It is imperative that Glasgow sees states, cities, businesses and civil society will all major economies presenting ambitious need to generate the momentum towards and credible net zero transition strategies net zero carbon economies. and a model for the developing world to emulate. It is still feasible to restrict COP26 comes at a time when the temperature rise to 1.5 degrees but the economic, technological, and political window of opportunity is shutting fast.

18 Geoengineering, there are a bunch of different versions to it. One is the solar radiation management, spraying sulphates on the stratosphere to block more sunlight. There are lots of other ways of doing it, building a fleet of pepperships to spray ocean water in the air. There are also the ones to sequester carbon, with projects that essentially involve low energy intensity mining and graining up of olivine Kevin Michael which absorbs CO2 from the atmosphere. Then Esvelt there is potential biotech efforts, you could use to MIT Media Labs engineer plants to deposit cork in their roots, so that carbon can be sequestered underground during growth. And there is many many more. But the point is, there is a lot of resistance to even contemplating or even mentioning these are possible because they create a moral hazard.

Critical Success Factors for COP 2. Urge national governments to revise upward their contributions latest by 26 at Glasgow end 2020. NDCs need to be multiplied Given the multilateral framework and lack by a factor of anywhere between three of a centralized governance structure, it to six for us to be consistent with Paris is critical to formulate an early plan that objectives. New contributions must will facilitate convergence of goals and set be backed by concrete action, legal expectations. The plan should: sanction and a supporting finance plan. 1. Drive a long term strategy for carbon neutral economies by 2050. Countries 3. Involve non-state actors such as private which are targeting to achieve this post businesses and local governments to 2050 must lay down a clear trajectory. amplify the movement. All sectors, Major emitters must set a peaking date cities, companies, investors must declare for GHG emissions and ensure a steady their carbon neutrality strategies. Each journey towards carbon neutrality stakeholder must take concrete and post this. This is a long term objective speedy measures and exert pressure on basis which short term policies and other players. commitments must be framed

19 4. Look beyond the power sector in safeguarding their development needs and planning GHG emission curbs – focus on cushioning against climate impacts. reducing carbon intensity in sectors like steel, cement, transport & agriculture. India’s role at COP 5. Minimal approval to new coal based 26 in Glasgow power projects and phasing out of Partly due to its sheer size and partly old plants. commensurating with its increasing geopolitical importance, India has of late 6. Mobilize public and private funds emerged as a key player in international for helping emerging economies cut climate action dynamics. There are many back carbon emissions. This includes who feel India is well placed to be the recapitalizing the Green Climate uncrowned leader of the emerging nations Fund and assistance from multilateral bloc as it demands “climate justice” – asking development banks in terms of the developing world to lead by example. funding, better instruments and There are others who feel, in the wake of stronger governance. the USA’s withdrawal, it is India that holds the key to the Paris Agreement achieving 7. Investors, asset managers and financial its targets. There is no denying that India institutions must integrate climate/ has shown a lot of intent and purpose in carbon risk into their decision making. balancing its growth aspirations with the Recommendations of the Task need to mitigate climate change. The Force on Climate related Financial Indian Govt. has integrated sustainability Disclosures should be made mandatory. into national policy making and There should be laws to nudge announced several programmes targeted investors to actively decarbonize at curbing GHG emissions and preserving their portfolios. the environment.

As the host nation, the world is looking The COP26 is an excellent platform for to UK to lead by example with some sharing “India’s story” as far as climate bold climate policy measures. This will change mitigation is concerned and help exert effective pressure on the rest pitchfork India as a role model for the of Europe for coordinated action, and developing world. This is where India must also stir other major emitters including showcase its efforts to weave sustainability China, India, South Africa to work towards into the heart of its policymaking with cutting GHG emissions. It would be helpful programmes like The National Clean Air if these countries set precise objectives Programme, National Air Quality Index, around raising share of renewables in the the leadership of the International Solar energy mix, reducing carbon intensity in Alliance (ISA), mission to clean the major agriculture and electrification of transport. rivers besides eyeing an aggressive 450 The US Presidential elections will also cast GW of electricity from renewable sources its shadow on the COP26 with a Democrat by 2030. The sustained support and various victory proving to be a shot in the arm for incentives rolled out for the clean energy the climate movement. Conversly if there sector is well worthy of emulation by other is no change in leadership, that could emerging countries. India should rightfully deal a heavy blow to the credibility of the question the developed world for their multilateral movement. At the other end of inability to fulfil pre-2020 commitments the spectrum, the emerging countries bloc and urge them to walk the talk and lead will need to find a fine balance between by example or risk seeing a matching

20 disinclination from the emerging countries There is an urgent need for the global to play ball. It must clearly indicate that it is community to implement a sustained, long not comfortable sharing a disproportionate term strategy to ensure a climate safe burden of the clean-up act vis-à-vis the tomorrow. Here are some critical steps that major polluters, one cannot simply wish will help conserve the momentum beyond away “historical responsibilities”. Post COP 26: COVID-19, developing nations might use the pandemic as a shield to delay action 1. Stitching together a broad coalition: on cutting back emissions and also hold In order to intensify action, there must back funding support for the emerging be deeper and broader cooperation economies – as a responsible climate leader between like-minded countries in India would be expected to stifle any such Europe, Africa and Latin America. High plans which would set the climate action level summits should be organized with movement back by a few years. focus on framing a mutually agreeable action plan, setting unambiguous and Another area where India should voice measurable targets to be complied with, its sentiments is the issue of transfer of sharing sustainability best practices and funds and technology to the developing helping each other with technology nations. This is an important area where and other support where needed. Such the advanced nations have fallen woefully coalitions can accelerate the journey short of meeting their commitments – not towards climate resilience and clean even 2% of the USD 1 trillion committed growth. in the last 10 years have actually been transferred. It is about time this statistic is 2. EU-China Summit: All eyes are set right, or the very credibility of the Paris focused on the EU-China Summit in Agreement will be under serious threat. September 2020 that is expected to The other important issue is the market cover economic relations, climate and mechanism for carbon. India must exert biodiversity. The world is looking up to pressure on the international community these two powerful blocs to step up their to expedite the framing of rules for domestic climate ambitions and also international trading of the carbon credits galvanize international action. They will they hold. India has close to 4 billion play a critical role in catalysing growth unsold Certified Emission Reductions of global markets for electric vehicles; (CERs), accumulated over the years that ensuring green investments in the Belt it is looking to sell. A well-oiled carbon and Road Initiative; and setting rules market can help developing countries on global sustainable finance markets. reduce their emissions by unlocking crucial The whole world is looking up to EU funds. India would also do well to explore and China driving the global economy the possibility of bilateral agreements for towards cleaner, greener and resilient cooperation and knowledge transfer in investments and co-creating a blueprint the area of technology innovation for low for low carbon economies across the carbon growth. world.

3. Global financial reforms: We must see Climate Action beyond Glasgow an overall urgency to minimize coal While we sincerely hope for a fruitful investment and oil and gas financing. COP26, Glasgow is but a pit stop (albeit a Global cooperation between countries, crucial one) in our race to save the planet. regions and cities can accelerate the

21 phase out of internal combustion radical broadening of the climate agenda engine cars lowering future oil demand. to shape geopolitics and global markets, Financial institutions should commit climate action is in danger of being to a phased reduction in fossil lending relegated to the sidelines. Now is the time and to a sizeable increment in clean for the various stakeholders to step up investment & countries must implement and play their roles with hundred percent stimulus packages aligned with the Paris sincerity of purpose, so we have a climate Agreement. resilient future. We must collectively rise to the occasion with the entire planet at No doubt this is a daunting set of To-Do’s stake, we simply cannot afford to remain a which will challenge governments and non- mute spectator any longer. governmental actors alike. But, without a

When are we going to invest in India to get its renewable production base capacity out of coal’s shadow as fast as possible? That should be like the number one priority of the world. And if you can do the gas transition as fast as possible, in a place like China, push some out of coal, it will be splendid but we just don’t talk about it at the political level right now. But I think the World Bank, IMF, ADB, AIB should be the number one mandate around the John Defterios Emerging Markets world. And I think in this sort of venue here, it should Editor, CNN be a top priority here.

I think what you said about the echo chamber, I think that’s where we are. The companies that I am talking to here to participate or partners of WEF, it is that piece about how do we influence the rest. How do we influence the policy makers and in those markets that are not here and are not part of this conversation? I think where I see gaps is in the policy piece and it is in how you replicate what is working in Kristen Panerali certain places, and ensure that what’s happening in Head - Electricity, some places and what goes wrong in certain places, WEF is equally shared so that we can do things right and roll it out much faster.

22 Chapter 2 CLIMATE CHANGE MITIGATION: THE PUSH AND PULL FOR THE PRIVATE SECTOR

So the real question in my mind is how do you get investors to engage with companies to proactively accelerate the transition, both in terms of energy producers accelerating the transition from fossil to renewables, and then equally importantly, in terms of companies changing their processes, to really transition away from fossils. That’s where the pull from investors becomes critical. Vikram Gandhi Senior Lecturer, Harvard Business School

It can be said with maximum certainty that deep integration of sustainability, with its to win the battle against climate change triple pronged approach of ensuring profits and to incrementally increase the degree while caring for the people and conserving of sustainability for our planet, there is a planetary resources, in the most layman joint effort required from the public and terms, will undoubtedly create long- private sector, with a host of stakeholders term value for the company. Long before playing their part in the mitigation. The the Carbon Disclosure Project started private sector, accounting for more publishing emission-related data for over than 60% of the GDP for most countries 2400 major corporations, representing (as per IMF), cannot be left out of the over $41 trillion of assets, investors had narrative, and must play an active part in already started focusing on more ‘earth- integrating sustainability deeply into their friendly’ companies for investment, and ethos, operations and existence, as we today, investors with over $5 trillion in progress down the slippery slope of assets have committed to make sure that environmental degradation. their entire portfolio is carbon neutral. Even Blackrock, one of the leading investors in Firstly, there is a legitimate business the world with a diversified portfolio with case for the private sector to adopt a assets valuing a large quantum, has publicly sustainability-focused strategy, integrating declared in 2019 that it will not invest in climate risk into its risk assessment tools, companies which do not have an ESG and a governance model which incentivises strategy or are contributing significantly sustainable practices. The biggest reason to GHG emissions. is that there is empirical proof that such a 23 As per the International Finance of resources, including food, energy, and Commission, which is part of the World water, can fuel civil unrest in emerging Bank Group, “Volatility and uncertainty markets. Volatility of resource prices impact both consumers and private sector. causes uncertainty for the private sector, In many countries, the rising price of food creating risks associated with productivity has already pushed millions of people investments and potentially distorting into poverty, disproportionately affecting supply chain efficiency.” the vulnerable. Moreover, the high price

As far as ESG is concerned, there already are quite a few good metrics out there. And there are a lot of organizations that use the metrics. The question is are the companies disclosing that information and more importantly are the shareholders engaging with those companies to make that happen. So if some pension plan gives a mandate, that I want to be ESG centric and they have these scores, that’s fine, Dipender Saluja but the change will happen once shareholders or MD, Capricorn large shareholders who own 40-70% of companies, Investment Group actually get to the board and say yes, you are doing good, but the fact is that in 10 years, we are actually going to pass this 2$ degree thing, half a coastline will go down and Mumbai will disappear and Shanghai will be half gone. That’s where it’s much more important, that proactive engagement, which is still not happening.

For example, as per Harvard Business faced billions of dollars of loss due to their Review, Bunge, an agribusiness firm,irresponsible practices, or BP which lost reported a $56 million quarterly loss in $32 million a day in brand value as a result its sugar and bioenergy segments due of the Gulf of Mexico oil-spill. to drought in 2010. Flooding in 2011 in Thailand, harmed 160 companies in the As per the Harvard Business Review, textile industry and halted nearly a quarter “Embedded sustainability efforts clearly of the country’s garment production, result in a positive impact on business increasing global prices by 28%. performance.” The private sector is also becoming cognizant of this, as in a study Other than this, historically as well, those by Carbon Disclosure Project, “8,000 which have not integrated sustainability supplier companies (that sell to 75 and climate risk, have seen a significant multinationals) reported on their level of impact on their balance sheet and brand climate risk. Of the respondents, 72% said value, whether it be ExxonMobil which that climate change presents risks that 24 could significantly impact their operations, performers on ESG (environmental, social revenue, or expenditures.” and governance factors) and are correlating better financial performance with better Therefore, it is integral that businesses ESG performance.” Even for companies adopt sustainable practices such as internally, low-carbon investments have using renewable energies, focusing on led to high rate of returns, with one study communities and employees, practicing estimating that “companies experience an ethical financial practices and having a average internal rate of return of 27% to strong governance model which drives 80% on their low carbon investments.” sustainability. Businesses which are polluting by nature, or are ‘hard-to-abate’ The pull from investors has to be industries like cement, petroleum, mining complemented by a push from policy to etc. should adhere to carbon offsetting really drive sustainability in the private practices. There must the standard sector, which has an active role to play sustainable practices of reducing carbon in contributing to Agenda 2030, which is and water footprint, while employing at a high priority for many governments effective waste management practices. including India. India already has a landmark Companies should regularly disclose their Corporate Social Responsibility Act, which sustainability performance, on economic, mandates for high-profiting companies social and environmental parameters, drive to spend 2% on social responsibility, down a culture of sustainability. however, if the government can make it an institutional mandate for investors to An ESG strategy on a corporate level commit a significant percentage of their therefore becomes integral, which funds towards ESG and sustainability amalgamates all the above practices focused companies, it would really and paves the way for long-term value accelerate the transition to a sustainable creation. ESG refers to Environment, future, and might give us a fighting chance Social and Governance, which together in facing one of the biggest crises which can drive the sustainability agenda and it is ever known to humanity. With the includes integrating climate risk during risk right amount of pull from investors and a assessment and climate change mitigation push from policy, the private sector can within operations while functioning on a really gear up to play a significant part in daily basis. paving the way for a sustainable future, unencumbered by climate catastrophes The real pull has to come from institutional and environmental degradation. investors which must drive this change within the private sector to integrate sustainability and ESG within their TCFD Recommendations: Time strategy deeply, and a mandate must be to make them mandatory? set prioritizing this change, similar to the The Task Force on Climate-Related Financial one made by Blackrock in 2019. There Disclosures (TCFD) is an organization that must also be an investor call to prioritize was established in December 2015 to innovations in sustainability and support develop a set of voluntary climate-related start-ups in the private sector aimed financial risk disclosures for companies so towards climate change mitigation. As that those companies can inform investors per Harvard Business Review, “companies and other members of the public about are realizing significant cost savingsthe risks they face related to climate through environmental sustainability- change. The TCFD, chaired by Michael related operational efficiencies. Moreover, Bloomberg, issued recommendations investors are now able to track the high around 4 broad themes to help companies 25 in their disclosures of pertinent information are only telling part of their story despite a related to climate-related financial risks universally accepted global framework for in 2017. These recommendations are the disclosure of climate-related financial voluntary and are in place as guidelines to disclosures being established. To achieve assist businesses in identifying and sharing quality disclosures at the scale needed both risks and opportunities they face as a to meet the climate emergency, we will result of climate change. In turn, investors, need to see a move away from voluntary lenders, insurers and other participants disclosure to mandatory implementation in the market will have a more complete of climate-related financial disclosures. picture when assessing the value of those companies and the risks they face. As There is a growing sentiment that if the TCFD companies complete consistent, reliable recommendations are made mandatory disclosures related to climate-based risks and applicable to all sectors, we will see and opportunities, markets will be better a strong uptake in disclosures and better equipped to evaluate, price and manage investment decisions. The World Economic those risks. Further, companies themselves Forum’s Global Risk Report 2019 highlights will be better able to evaluate their own that there is a clear role for governments risks as well as those related to business around the world to help accelerate climate partners. Investors will also have superior action by businesses, particularly through information with which to make decisions legislation or regulation mandating climate- regarding the allocation of capital. related disclosures. In its 2019 Status Report, TCFD notes that while around 15% companies disclose There are 2 clear benefits of making the information on climate risk, it is “at a level TCFD recommendations binding: 1) Wider and scale far from what the markets need reporting of companies’ climate risks and to channel investment to sustainable opportunities will enable financial markets and resilient solutions, opportunities and to function better and 2) this information business models.” Some companies are will help all stakeholders to collectively excelling and taking big steps in providing manage climate risks and balance the needs the right amount of detail and quantitative of winners and losers as we transition to information, but as a whole we have a huge a low carbon economy. Governments can number of laggards – many of them don’t utilize this information to ensure an orderly really know what TCFD is or what climate- transition avoiding rapid downward climate related financial disclosure is. Organizations related price adjustments and build new are at different levels of implementation – infrastructure that is more climate resilient. there are those who simply acknowledge For all this, climate reporting has to become the recommendations, there are others who the norm more than an exception. We need are trying to figure out what they mean and greater, faster mainstreaming of climate where should they start and lastly there related risks and opportunities reporting are those companies who are working to make a tangible difference. We are at on embedding the recommendations in a tipping point, and mandatory disclosure their risk assessments and reporting. The is an important driver for accelerating TCFD’s 2019 Second Status Report shows corporate action on climate change. that we are only seeing on average 3.6 out of the 11 recommended disclosures made As far as ESG is concerned, there already globally. As a result, we are not obtaining a are quite a few good metrics out there. complete picture of how organisations are And there are a lot of organizations that identifying and managing climate-related use the metrics. The question is are the risks. This is problematic as organisations companies disclosing that information and

26 more importantly are the shareholders will require the investment value chain engaging with those companies to make to be sensitized. Further, investors that happen. So if some pension plan gives must exert influence on companies to a mandate, that I want to be ESG centric disclose data on wide range of ESG and they have these scores, that’s fine, but issues, including climate performance. the change will happen once shareholders They must also press for mandatory or large shareholders who own 40-70% of reporting for carbon emissions and companies, actually get to the board and related information. Once they have say yes, you are doing good, but the fact the necessary data, they must ensure is that in 10 years, we are actually going to specialized and focused research for pass this 2$ degree thing, half a coastline better insights. will go down and Mumbai will disappear and Shanghai will be half gone. That’s where • Drive corporates to adopt sustainable it’s much more important, that proactive business practices: Investors are not engagement, which is still not happening. just financers; they are part owners of companies and it is up to them to exert this power and influence Role of Investors in Mitigating while engaging with companies on Risks from Climate Change controlling emission levels. They can ask It is by now well established that investors companies to disclose emission figures, have a key role to essay in the battle against strategize for climate risks and prioritize climate change. Transition to low carbon improvements in energy efficiency and economies present a huge investment low carbon procurement, which are opportunity but also systemic risks. often way down a corporate’s action list. Here’s what investors must do to boost Specific questions on plausible climate climate action: change induced risks and their impact on financials must be raised in routine • Increase capital allocation to climate meetings with the company leaders. change mitigation and adaptation They can also write to the CEO inquiring projects: We need investors to pump about climate change strategies of in more funds for low carbon projects the company. like clean tech and renewable energy infrastructure. If the banking sector is lacking an appetite for lending, due India Inc. and Sustainability to the state of the economy, investors India is the fourth-largest emitter of need to come up with new and varied greenhouse gasses. It accounts for about credit finance instruments, much like 4.5 per cent of global greenhouse gas climate bonds. Similarly, investors emissions. In this backdrop, it becomes must back early adopters in new crucial for local companies to take areas like sustainable forestry, energy initiatives to go green. Indian businesses efficient infrastructure. have started integrating sustainability into their strategic decision making and we see • Build climate change into investment lots of illustrations of companies reorienting processes and price climate risk: This their business practices and adopting more involves accurately pricing both risks climate friendly way of operating. The and returns and responding quickly to key action themes for companies include policy tweaks, technological advances renewable energy, water and waste. and scientific uncertainties, so that misallocation of capital is avoided. This

27 It’s also important to see what extent do KRAs of CEO have ESG related metrics, and that’s also going to be a driver for investors. Vaishali Nigam Sinha Founding Chair, ReNew Foundation

• ENERGY – Renewable energy capacity plastic packaging by 2025; Hero Motors and its utilization have geared up. While have banned single use plastic from all solar is the most preferred, biofuel is production facilities and offices, NTPC picking up speed. has mandated use of jute bags.

• WATER – Access to water and • Indian Hotels Company (Taj Hotels) management of water resources decided in 2018 to phase out plastic continues to be a focus area for internal straws at its hotels and TajSATS aviation operations and societal initiatives. catering unit, it resulted in the elimination of 2 million straws in a year. It now uses • WASTE – Initiatives to manage e-waste, biodegradable straws, bamboo straws. municipal waste and plastic reuse & recycling show an increasing trend. • India’s largest car manufacturer Maruti Suzuki lowered its groundwater From offices cutting down on plastic cups consumption by more than 60 per and printing paper to factories controlling cent. Maruti has been able to save 200 the effluents released into water bodies, litres per vehicle by increasing use of the air, and landfills, companies are making recycled water and by resorting to rain sustainability a part of their everyday water harvesting. It has managed to business vocabulary and process. As part reduce the use steel per vehicle in a big of their efforts to save the environment, way and has also started controlling its companies in sectors ranging from use of substances of concern (SoC) like automobiles and metals to cement and lead and mercury in its mass production FMCG are making big changes such vehicles and making its cars 95% as cutting down water consumption, recoverable and 85% recyclable. using clean renewable fuels such as solar and wind, recycling waste material, • CEAT, a leading tyre maker, moved to and incorporating sustainable practices using more silica instead of carbon into the manufacturing process. Some black to reduce carbon footprint of its specific examples of steps taken by tyres. It is also working on developing corporates include: products from non-petroleum raw materials. Dalmia Cement has reduced • Infosys has banned use of plastic bags the use of limestone in cement and is and has pledged to eliminate single using waste material from industries like use plastic by 2020. HUL – will move steel instead. to 100% recyclable or compostable 28 • According to environmental disclosure annually, as well as 5 lakh litres of water campaign platform CDP, major Indian every day. They have been making their businesses such as Infosys, Dalmia showers and faucets with water-saving Bharat, TataMotors, Hatsun Agro technology. Products, and Mahindra Holidays have committed to using 100% renewable • Companies are also collaborating with electricity in their global operations by each other to reuse and recycle as joining global green electricity campaign they reduce emissions and still make RE100. money. Cement firms, for instance, are taking waste materials like fly ash and • Bath fittings maker Jaquar recycles 4,221 slag from steel makers to make their tonnes of brass and 8 tonnes of chrome products green.

My frustration is when people say are you an ESG, I mean to authentically answer that question, I would love to put my foot down and be able to share a number. 4.805, Yes I am ESG. Otherwise its values based. I think I am but you might think I am not. So that’s the struggle as a manager. Fortunately today, institutional capital is mandating companies/ investors to consider ESG performance. For active managers like me, that is very hopeful. Barbara Ann Bernard Founder, Wincrest Capital

Challenges the Private 4. Lack of Funds: There is a considerable Sector Faces financing gap – need for more Govt. – private sector collaboration on 1. Lack of policy coherence: this. Existing channels need to be Socioeconomic and environmental strengthened while focusing on new factors are not adequately factored in & innovative financial flows. Many framing of national policies, projects. corporates are not able to leverage 2. Business Case for SDGs not clearly these blended finance collaborations understood: Most businesses are due to policy constraints, making it yet to fully internalize the long term difficult for them to invest in SDG related business sustainability benefits from programmes. supporting SDGs. 5. Absence of clearly defined global 3. Limited Capability in the Social Sector: mechanisms for corporate support We need better execution partners to SDGs: Need to integrate these / NGOs who can help private sector mechanisms along coherent implement impactful projects on the development paths that respond to ground. One must focus on capability specific local and sectoral needs. building and skill development. 29 6. Lack of perception regarding it is a must – do. Accordingly, one must convergence of SDGs and business fix clear responsibilities for both the priorities: Awareness and perception Government and private sector. There in this regard must improve, especially should be a KRA driven matrix with a clearer illustration of the incentives clear, measurable goals and progress and ROI. More knowledge sharing, must be monitored periodically. highlighting of best practices and success stories will also help alter • Sensitize Domestic Lenders/Investors: perceptions. Domestic investors and financial institutions must look into business’ Recommendations alignment towards sustainability • Wider Amplification of Success goals while lending capital or backing Stories: There should be greater focus ventures. They must engage with on corporates that have successfully companies and ensure private players integrated sustainability in their day are addressing sustainability concerns, to day operations. There should be what mechanisms they have built, a mechanism to highlight the best impact achieved among others. practices, and the Govt. must institute more rewards and recognitions for • Revisit CSR Policy: India Inc. must take organizations that are leading the way. a relook at its CSR engagements, in The front runners in advancing SDGs order to align them towards the SDGs. should act as ambassadors - mentor They must choose projects that have a other corporates and train them in direct impact on advancement of SDGs, identifying impact areas, setting targets, this may also necessitate a change in monitoring progress and reporting. relevant legislation to nudge corporates in this direction. • Fixing Accountability: Working towards fulfilling SDGs is not a choice anymore,

GE has been a leading investor in renewable energy technology all over the world. We have leveraged technology to improve the size and efficiency of turbines and that has helped the industry be more cost competitive. In most parts of the world where we are now using fossil fuels, over next 5 years we will cross over to renewables. We are also focusing on storage and trying to create a cumulative effect Jerome Pecresse to make renewables cheaper. CEO, GE Renewables

30 Chapter 3 BALANCING GROWTH WITH CLIMATE COMMITMENTS – A LOOK INTO INDIA’S STORY

Climate change is at the centre of our thinking. And here’s some statistics from 2014 when we had 35 GW of renewable energy, by 2022, we will have 175 GW. So that’s a big jump. And it is happening because the central government has brought in policies, which encourage and actually mandates the adoption of renewable energy. We have also introduced Renewable Purchase Obligations (RPOs) for the DISCOMs so that the states also join Sanjiv Sahai in the commitment to encourage clean energy. Our Power Secretary, commitment of 40% capacity of renewable energy Govt. of India will be achieved much before 2030. Our Prime Minister has been talking about One World, One Grid, One Sun, as solar being the way to go.

Even as some of the major polluters, so Modi Government came to power. Prime called developed countries, struggle to Minister Modi has been a true ambassador fulfil their Paris Agreement commitments, for climate action, being instrumental in India, a developing nation with a dense the framing of the Paris Agreement, before population has refreshingly displayed an going on to establish the International ambitious, forward looking and pro-active Solar Alliance with France – a platform for strategy geared towards climate resilient leveraging the rich solar energy potential in growth. Not surprisingly, it has emerged tropical countries and mobilizing finance. as a climate leader with very strong In many ways the ISA was the first signal credentials, who many consider critical to that India was ready to lead the new wave the success of the global climate action of climate action. agenda, particularly after the shocking withdrawal of the USA. Successive national The National Action Plan on Climate Governments have wisely opted for a low Change, adopted in June 2008 was India’ carbon growth strategy, and this has been first step towards sustainable development. reflected in policy making, with the climate It was based on the awareness that climate agenda receiving a particularly strong action must proceed simultaneously on impetus since 2014 when the first Narendra several inter-related domains, such as 31 energy, industry, agriculture, water, forests, with a vibrant civic society that promotes urban spaces and the fragile mountain awareness about the climate crisis and environment, paving the way for the launch urges individuals to do their bit, to avert a of 8 national missions. As a developing major disaster. country, a key challenge for India was to meet the growing demand for energy driven India has embarked on a transition towards by rapid economic growth and sheer size clean energy with an aggressive ramping of its population. Energy self-sufficiency up of solar and wind capacity. It is well and universal energy access were top on course to meet its Paris Agreement national priorities – it was critical that India contribution targets. It has a very high looked beyond import dependence for her cess on coal – the proceeds of which go energy requirements. At the same time, into a National Clean Energy Fund. It has as the third largest emitter of greenhouse also stopped granting permission for any gases globally, pressure was mounting on new thermal power plants, unless they India to cut back on emission of harmful are of the ultra-supercritical category and pollutants. The Government was quick meet stringent efficiency standards. The to realize that growth and sustainability cost of electricity from renewables has had to be addressed concurrently and plunged below that from coal, enhancing wisely chose to promote renewables over both affordability and accessibility of carbon spewing fossil fuels. Even as India electricity thereby transforming lives pressed ahead with its National Missions, of the marginalized population. This its expectations of technological and transition has also resulted in creation financial assistance from the developed of more jobs – critical for a country like nations to bolster the climate action India. The conditions now are perfect for agenda, remained largely unfulfilled. In India to embark on a long term low carbon the run up to the Paris Agreement in 2015, trajectory, backed by concrete policies. India also declared its Intended Nationally The world is looking to India to continue Determined Contributions – setting a its good work as it’s climate compatible clear target for phased decarbonizing paradigm of growth makes it a role model the economy. Besides well-conceived that other emerging nations would do policy interventions, India is also blessed good to emulate.

INDIA IS ONE OF THE FEW COUNTRIES COMING CLOSE TO MEETING PARIS AGREEMENT COMMITMENTS Countries’ climate change policy rated against the levels required to meet the Paris Agreement target Country EU-28 (Joined) At least 40% domestic reduction in (Status and commitment China (Joined) of Paris Agreement) greenhouse gas (GHG) emissions by 2030, compared with 1990 60-65% reduction of CO2 emissions per unit of GDP by 2030, compared with 2005 level

India (Joined) 33-35% reduction in the US (Intent to withdraw) emissions intensity of its 26-28% reduction in GDP by 2030, compared GHG emission by 2025 with 2005 level compared with 2005

Paris Agreement compatible Insufficient Critically Insufficient

2oC compatible Highly Insufficient No data available Source: Climate Action Tracker 32 HIGHLIGHTS OF INDIA’S GW from renewables by 2022 and in fact CLIMATE ACTION PROGRAMME recently raised the target to 450 GW by 2030. The target of renewables accounting 1. Renewable Energy: for 40% of all electricity generated by 2030 Long before COP 21, India was one of is also likely to be fulfilled well in time. New the first countries to set up a Ministry technologies like floating solar, offshore of Non-Conventional Energy Sources in wind, wind–solar hybrid and storage will 1992, which was later christened as the play a crucial role in attaining this target, Ministry of New and Renewable Energy and hence the Government is encouraging in 2006, underlining India’s resolve to research and innovation in these emerging propagate clean energy sources since areas. It has also identified land acquisition, the early days. However, it was in 2014, strengthening of the grid and absence of when the NDA led by Narendra Modi took adequate evacuation infrastructure as over the reins of the country, that India potential pain points and is taking steps to embarked upon one of the most ambitious address these concerns. renewables scale up programmes globally. The government envisioned renewable 2. Energy Efficiency Measures energy as a cleaner, sustainable alternative India currently has a per capita electricity to polluting fossil fuels and took several consumption of around 1200 units. This steps to strengthen this sector to satisfy is about 1/3rd of global average, roughly the country’s energy demand while also 1/4th that of China and 1/13th that of USA. decarbonizing the economy. Several policy As India sees rapid economic growth and reforms, incentives and focused attention transforms into an industrial hub, demand from the Government created a conducive for energy will spiral upwards. Growing environment for private players to enter urbanization, rising incomes and a steadily this domain, triggering a steady transition increasing population will also spur towards clean energy. The Government’s consumer demand for electricity. India will continued focus and vision has paid rich need to double its electricity output by dividends, with India emerging as a leading 2030 to meet this massive rise in demand, renewables hub, with investments topping while also honouring its commitment to those in coal. reduce its carbon footprint by 35% from 2005 levels. Even if 50% of the additional India’s preparedness to transition into a electricity comes from renewables, the clean energy system is unmatched for balance will come from coal, so fossil fuels a country of its size and level of energy cannot be completely abandoned for quite thirst and developmental needs. A major some time now. Therein lies the importance game changer has been the impact of of energy efficiency, and it is noteworthy technological advances – which have that the correlation between GDP and dramatically pulled down the per unit cost, power demand has declined to below 0.8 making renewables the cheapest form of currently from 0.95 in 2010. Some of the power. India currently has around 82 GW measures taken by the Govt. in this regard of installed RE capacity up from 35 GW in that has paid rich dividends are: 2014, with another 30 GW in pipeline. Solar capacity today is at nearly 30 GW, up from • The Bureau of Energy Efficiency (BEE) 2.6 GW in 2014. Wind capacity has also shot initiated the Standards & Labelling up to over 36 GW from 21 GW in the same programme for equipment and time. Measures like competitive bidding, appliances to provide the consumer introduction of RECs and RPOs have further with an informed choice about the fostered growth of this sector. India is well energy saving. The programme aims on track to meet its target of generating 175 to reduce the energy consumption of 33 appliances without diminishing the • UJALA is the world’s largest zero- services it provides to consumers. subsidy LED bulb programme for Appliances are star rated as per their domestic consumers, designed to energy consumption and every year, achieve sustainable development by the bar is raised higher. This has helped reduction of carbon footprint. It saw increase efficiency of appliances like nationwide distribution of 360 million ACs which used to be energy guzzlers LED bulbs that helped bring down high at one time – now the highest selling cost of domestic electrification and high ACs are inverter ACs – which consume emissions from inefficient lighting and least energy. has now been extended to tubes and fans. It triggered a massive investment • The Energy Conservation Building in LED manufacturing and now India Code (ECBC) was launched by Ministry is the 2nd largest LED market in the of Power for new commercial buildings world. Demand aggregation and bulk setting minimum energy standards for procurement has led to a sharp drop new commercial buildings. The updated in costs making LEDs commonplace version in 2017 sets parameters for across the country. The programme has builders, designers and architects to cumulatively helped India save 32 billion integrate renewable energy sources kWh electricity annually, equivalent to in building design. The code aims consuming 19 million tonnes of coal. to optimise energy savings with the This has led to an annual reduction comfort levels for occupants and of 25 million tonnes of CO2, which is prefers life-cycle cost-effectiveness to equivalent to growing approximately achieve energy neutrality in commercial 600 million trees over a period of ten buildings. years. What’s more, consumers are saving over 124 billion on their electricity • Perform Achieve Trade (PAT) Scheme is bills annually. an unique market-based mechanism to enhance the Energy Efficiency in Energy 3. Sustainable Mobility Intensive industries through certification The government has taken several steps of energy saving which can be traded. for transitioning to low carbon transport Units which are able to overachieve for cleaner air and enhanced energy specific energy consumption (SEC) security via reduced dependence on targets can receive energy savings imported crude. The Faster Adoption and certificates (ESCerts) for their excess Manufacturing of Electric Vehicles in India savings. The ESCerts could be traded (FAME – II) scheme launched in 2019, on the Power Exchanges and bought provides incentives to purchase electric by other units who failed to achieve vehicles, while also including provisions to the target who can use them to meet ensure adequate charging infrastructure. their compliance requirements. Each These incentives include subsidies to ESCert is equivalent to 1 metric tonne reduce the upfront cost of electric of oil. This year, India will be saving 12.5 vehicles, along with other incentives such million tonnes of oil equivalent through as tax concessions. The Ministry of Power the PAT scheme. PAT scheme has no recently released a notification which aims parallel globally and can be a model to ensure that there is at least one charging other countries can look to adopt. station available in a grid of 3 km2, and ensure that the electricity tariffs paid by

34 EV owners and charging station operators the Indian Govt. to mitigate impacts of is affordable. Several states like Andhra climate change. Pradesh, , have already officially launched EV policies and set production targets, while several others The Way Forward for India Climate action needs to be mainstreamed are in the process of drafting their policies. into the process of budgetary allocation, with a ‘Statement on Climate Change’ released 4. National Energy Storage Mission with the Union Budget, which states all the India set up the National Mission on climate-relevant budgetary allocations of Transformative Mobility & Battery Storage multifarious departments, from irrigation in 2019 to incentivize domestic manufacture and flood control to agriculture and energy. of export competitive integrated batteries This will help to assess our programmes and cells. The demand for electric vehicles and identify critical gaps but also enable us will pull down cost of batteries, thus spiralling to make a better case for climate finance a huge growth in the Indian storage market. from multilateral development agencies. The Government is committed to providing Climate Change Responsive Budgeting is a conducive policy environment to attract the need of the hour. The next phase of more cell manufacturers who can diversify climate action in India needs to be guided into this business so India can successfully by a more comprehensive policy, one that challenge other Li-ion manufacturing will be collaborative and incorporate inputs nations. from climate scientists, academia, business leaders, civil society besides policymakers. 5. Climate Coalitions India has always advocated international While India has seen a phenomenal growth in cooperation to intensify climate action. the renewables capacity, the Govt. can take Prime Minister Narendra Modi was further steps to maintain this momentum. instrumental in setting up the International It should look to improve transmission Solar Alliance (ISA) jointly with France – infrastructure, ease land acquisition norms, it now has 80+ members collaborating and revisit aggressive tariff caps on reverse to boost solar energy potential. The PM auctions that can severely dent investor recently also invited countries to join margins. It is of paramount importance that the International Coalition for Disaster the various State Governments are equally Resilient Infrastructure, pledging nearly Rs. supportive of clean energy as the Centre, 5 billion to this group for coordinating on they must respect the sanctity of existing development of climate resilient and disaster contracts and avoid policy flip flops that proof infrastructure. India also announced send negative signals to investors. The it will be partnering with Sweden and other Government must also work to turn around nations to develop low carbon pathways to Discoms so they can honour RPOs and ensure net zero emissions in hard to abate pay dues to RE companies on time. The sectors like steel and cement. Provision of Government must introduce some sort of clean cooking gas solutions to over 150 a payment security mechanism to counter million households to eliminate exposure the off taker risk. A forex hedging facility to indoor air pollution, a commitment to will also soothe investor worries around phase out single use plastic by 2022 and currency volatility. The Govt. should also the launch of Jal Shakti Abhiyan – an encourage continued investments in new integrated water conservation programme technologies such as batteries & storage, are other noteworthy initiatives of wind-solar hybrids and rooftop solar.

35 Another big factor to remember is that this is “clean coal” which is more energy coal as a source of power is here to stay. efficient. Hence, the Govt. has to ensure Even if renewables capacity expands as coal plants in operation are using super per expectations till 2030, it can only critical and ultra-super critical technology, cater to half of the demand in India, the that require less coal/ MWh resulting in rest half will be serviced by thermal power lower emissions and lower fuel costs. There plants. This implies coal capacity is set to should be a strict monitoring of emissions rise in the near future, thus aggravating from existing, old thermal power plants and emissions. India does not have adequate they should be promptly shut down if found domestic gas reserves and setting up of violating emission norms and standards. nuclear power plants is a complex and States should also deny permissions to time consuming process, so we will have any new coal projects, unless there are to make do with coal. So, we must ensure compelling reasons.

We all will be agreeing on this table that it is far better to have power even if it is from coal than not having access to electricity. And some of the participants may not be knowing, but we have added in the last one and a half year, around 26 million households connected to the grid. And they require power. But at the same time, the good thing what has happened is that we are working quite a bit on energy efficiency and that has helped in a long way. Gurdeep Singh CMD, NTPC Even after adding this 26 million households, our electricity consumption is barely increasing at about 1-2% or maybe it is a temporary slowdown but even then we don’t expect that it will go to more than 4 or 5% for some time and be then stable.

36 Chapter 4 CLIMATE ACTION AND THE YOUTH – TIME TO PASS THE BATON?

I spend a lot of my time with young people, which I love doing, and I see that there is a real anger in young people about the state of the world today. I also see a huge commitment in trying to change that among these new generations. They are connecting for the first time, in a technologically different way, where they have broken down country barriers, religious barriers and all kinds of other barriers, because of the social tools they have. So I am hopeful from that Shiv Khemka point of view. I hope young people are able to shake Vice Chairman, each of us free from the resistances that barricade SUN Group us from real action.

It was 23rd September 2019 and the UN is money and fairy tales of eternal economic Headquarters at New York was playing host growth. How dare you! But the young to over 100 Heads of States, hundreds of people are starting to understand your business leaders and several captains from betrayal. And if you choose to fail us, I say: civil society, all of whom had gathered We will never forgive you.” These are the for the Climate Action Summit. Yet, it extracts from Greta’s hard-hitting speech was a feisty 16-year-old Swedish girl who that numbed the audience and reminded grabbed the headlines, as she delivered all of us of the great injustice we are doing a speech laced with raw emotion and by exposing our future generations to the anger. Greta Thunberg, who had travelled havoc that climate change can potentially to across the Atlantic in a solar powered wreak on humanity. It was also an illustration yacht for 2 weeks to be at the summit did that today’s youth realize the threat that not hold back from shaming the adults and climate change poses to their wellbeing world leaders, calling out their inability and they want to make enough noise to and inaction in dealing with the biggest stir us into concrete action and also be in challenge facing humanity. the thick of the climate action movements themselves. “This is all wrong. I shouldn’t be up here. I should be back in school on the other side We have borrowed the earth from future of the ocean. We are in the beginning of a generations… and it is our duty to return mass extinction, and all you can talk about it to them in good condition. Today, there 37 are 1.8 billion people between the ages of feeling of being let down by the previous 15-24—they are the largest generation of generation’s lethargy may as well trigger youth in history. Close to 90 per cent of anger and anxiety in the young minds. them live in developing countries, where There is empirical evidence of an intrinsic they make up a large proportion of the link between the mental health of youth and population. Their numbers are expected climate change, with reports elucidating on to grow—between 2015 and 2030 alone, youth depression stimulated by the anxiety about 1.9 billion young people are projected and uncertainty caused as a result of the to turn 15-years-old. Apart from being climate crisis. the most well-educated generation in all As per one report, “Climate change causes history, with the highest numbers when extreme heat events, intensification of it comes to literacy, entrepreneurship, storms, flooding, and coastal erosion, all social engagement, etc., young people, of which might disrupt the societal and regardless of their nationality, face one economic structures that underpin mental common problem: Climate Change. There health. Within this framework, individuals is no doubt that as the impact of climate in the developing world would be most change becomes clearer, it is the youth and vulnerable to these direct environmental children, who are set to suffer most, it is they effects. Ongoing climate change could who have their futures at stake. Realizing directly result in the degradation of the this, the youth have plunged headlong into physical environment, negatively impact the thick of the climate movement, exerting food yields and freshwater supplies, pressure on governments and leaders to leading to the displacement of populations, walk their talk and take firm steps towards and eventual loss of livelihoods. Therefore, a less carbon future. climate change, and its ensuing negative impact on the physical environment could exacerbate poverty, malnutrition, Climate Change & Growing and disease. Each of these factors could, Youth Anxiety in turn, serve as independent risks for While the impacts of climate change on the development of youth depression in physical well-being are widely known, young people living in developing nations.” what is a more recent finding is that it can A study on Nicaraguan adolescents after adversely affect mental health as well, with Hurricane Mitch in 1998 revealed severe children and teenagers bearing the highest levels of both post-traumatic stress and risk. Lise Van Susteren, a psychologist in depressive reactions. As per a Washington, D.C. and an expert on the Post report, 57% American teenagers mental-health effects of climate change felt scared by climate change and the notes that “still developing brains” make number is of a much larger quantum young people particularly vulnerable globally. A similar scenario was observed to environmental stressors and a mere in India, through various reports talking worrying about potential future danger about climate anxiety among millennials. inflicted by climactic extremes can induce Collectively, these findings indicate a depression, stress and trauma as they are significant and nuanced impact of climate less equipped to deal with these vis-à-vis on youth’s mental health across the world. adults. Youngsters are likely to be mentally Children living in developing countries disturbed by the disruptions in normal face the greatest risks of all, not because life that climate disasters can cause. It is climate change effects will be any worse possible for kids to start thinking about there than in other countries, but because the bleak climate future they may have poverty limits their ability to respond. to deal with and going into a shell. A

38 A wise person once said to me that the only difference between Kabul and New York City is 3 days without light and power. And it’s pretty much like that. So I think we are going to be very surprised, I think Greta is just a tip of the iceberg. I think we are going to see vandalism, outright aggressive violent moves by people and communities to take down power installations if they feel they are no longer serving their needs or if they feel that their health is in some Meagan Fallone way negatively being affected. So we can’t just talk CEO, Barefoot Col- about the money and the technology, this is a human lege International problem that has at its heart, a human solution in a sense. So somehow we have to bridge these two things to redefine dignity.

Youth at the helm of the through protest marches, youth summits, climate movement social media campaigns and even litigation. The youth is hungry to play their part; they Across the world, youngsters are voicing want their seats at the discussion table their anguish about unmet commitments because it is their future which is uncertain. and resenting the lack of urgency amongst They want to work closely with the current the adults. They are everywhere – on the leadership to usher in a “green” revolution. streets, at conferences and on social What’s reassuring is that the young climate media pages, more coordinated and champions are getting heard and noticed better informed than ever before. Poster – from the media to policymakers and girls like Greta Thunberg have turned into business leaders, no one can simply ignore role models, inspiring many others to join them any longer. Their energy and intensity and lead similar movements in different is just the tonic the world needs to win the corners of the world be it a race against climate change. in Seattle or a in Kampala. They have changed the discourse – they are Whether through education, technology, highlighting how climate change can affect science or law—young people far and human existence and not just nature. They wide are tapping into their skills to speak are clear that they should not bear the brunt up for climate action. Today we have a of a problem that they did not cause and Anuna DeWever in Belgium, Xiye Bastide this sentiment has resonated with even the in USA, Eyal Weintraub in Argentina, UN Secretary General Antonio Guterres. Leah Namugerwa in Uganda and Luisa The youth have shown they are ready to Neubaeur in Germany who have picked up fight for their own future and make a noise the gauntlet in the battle against climate loud enough to disrupt the worrying status change. Closer home we have our own little quo on climate action. Even as the adults heroes – 8-year-old Licypriya from Manipur drag their feet, the current generation has already spoken in over 20 climate is showing them how it should be done change conventions, 12-year-old Riddhima 39 Pandey from Uttarakhand has moved the to pay a heavy price for the previous National Green Tribunal asking it to order generation’s laxity. the Govt. to prepare a carbon budget and draft a national climate recovery plan or • The youth today possess much higher a 13-year-old Aditya Mukharji who went levels of environmental and social around requesting neighbourhood cafes awareness than generations before to stop using plastic straws. them. They are adept at spreading new habits and technologies and hence well placed to contribute to the fight against Why the youth are our best bet climate change. They are adaptable and to lead this battle can quickly make low-carbon lifestyles The youth are everywhere, connected to and 36 environment friendly career each other like never before and brimming choices a part of their daily lives. Youth with energy and innovative solutions to should therefore be given a chance to safeguard our planet. This makes them take an active part in shaping local, perfect agents of change to improve the national and global level climate policies. lives of people and the health of the planet. With political commitment and adequate • In addition to being natural innovators, resources, young people have the potential young people are consumers (putting to make the world a better place for all. pressure on businesses to act Here are some factors why we feel we responsibly) and they are also voters, should entrust the younger generation with with the power to make politicians the responsibility of steering the climate pay attention. action agenda: • A higher sense of morality – they are Strengthening the Youth-driven not a part of any lobby, young and Climate Movement uncomplicated—they only have the best Where backed by committed national interests of the planet in mind. They do governments and adequate resources, not represent someone else’s agenda young people have the potential to secure and as such can be brutally honest and a better planet for tomorrow. Youth-led sincere at the same time. organizations need to be encouraged and empowered to shape local, regional and • They bring a refreshingly different national climate policies. The youth must approach to the table – their minds are have permanent seat at all major climate not cluttered and they do not have any dialogues – no discussion about their prefitted filters with which they view the futures is possible without their presence problem. They are more likely to come up at the table. They must play a significant with out of the box solutions and think role in the implementation, monitoring and beyond the traditional structure and review of the sustainability agenda as well systems set up by the older generation. as in holding governments accountable.

• They are far more likely to inject We must provide youth with multiple much needed momentum into the platforms – global and within their movement because they are fighting countries right down to cities, where they for their own future. They realize the can gather, share knowledge and discuss need for accelerated action more than solutions. The UNICEF’s Voices of Youth is anyone else, as they are not prepared one such example. We need to have more

40 such events curated by the youth and for innovative solutions to climate change. In the youth. Social media has a big role to Ghana, an award-winning project to make play in cementing strong ties between bicycle frames from bamboo instead of steel young climate activists across geographical is reducing CO2 emissions and restoring borders, by allowing a seamless transfer of local forests. Volunteer groups also have insights and innovative ideas and helping the potential to raise awareness and bring the movement spread across the globe. We about a change through focused campaigns saw the power of social media when Greta on climate related issues. Recently the Thunberg inspired children in different World Economic Forum’s community of corners of the globe to boycott school to Global Shapers – young leaders and social express their concern about the future of entrepreneurs (aged 20-30) from around the planet through a simple yet effective the world participated in a contest called campaign #Fridays for Future. Similarly, Climate Shape wherein they presented to in India as well, the Zero-Waste campaign the decision makers, examples of climate and the Plastic ban appeals saw a large friendly initiatives in their neighbourhoods scale amplification via online campaigns. which can be replicated or scaled up for a It is critical that we use technology and better future. social media to create a globally well- coordinated youth movement. We have The Government must actively engage with also seen how vital the role of media can the youth, involve them in advocacy and be in celebrating the young climate heroes give them a patient hearing. Such acts of and thus carrying their messages to a empowerment will further enthuse young million others in every corner of the world. activists; it is important to absorb these There are many inspirational stories to be teenagers into the mainstream climate told where youth are acting as change- action by inviting them to major climate makers and leading movements for a less events and funding their participation, carbon future. Their stories are critical to setting aside dedicated sessions for the us as they raise political ambitions and youth at such events, letting them interact can push governments across the world with national leaders and seeking their to bring a universal policy framework on suggestions while framing the agenda. climate change. A good example is the highly successful UN Youth Climate Summit that was held The Government must think of including in New York where youth activists from climate change in the school education 140 countries showcased their solutions curriculum, on the lines of what Italy did and conveyed their concerns to the most recently. It would be a wonderful way to influential leaders and diplomats. It will sensitize children about the climate crisis, help if national governments mandatorily its ill effects and the need to protect the include a few select youth activists as part planet. The best part about youngsters of their official delegations to multilateral 37 is that they bring over new modes of climate summits, so they have a real voice. communication, which may help deliver Similarly, the Govt. could look at inviting the message better. So where meetings youth icons and young climate activists and conferences have failed, comics, for a pre-budget discussion and solicit animations, audio visuals, and even music their views on carving out funds for youth concerts may emerge as a potent tool and climate advocacy. The Govt. should to raise awareness, mobilize funds and seriously consider setting aside funds for catalyse policymaking. The creativity of green projects and then ask young climate young people is invaluable in the search for leaders to spearhead these projects, so

41 that the youngsters get a taste of the real it. Thankfully, we have a highly capable action and pick up valuable experience. and well informed young generation Given these activists are still very young, who are not going to settle for a climate some as young as 11, mentorship and catastrophe which is not their doing – they grooming is very critical so they absorb are preparing to fight to safeguard their and sharpen their skills and blossom into future. Being most vulnerable to climate mature leaders who in turn can nurture change impacts, it is only fair that their more future leaders. We need to have voices ring the loudest – clearly it makes many more capacity building programmes sense for them to be at the helm of the for the youth, on the lines of what is being climate action movement and lead from run by the UNEP. The Government and the front. also the private sector must arrange for trainings and knowledge sharing sessions As far as the climate crisis goes, today’s for the budding climate leaders and also adults will have to take the blame for letting encourage them with scholarships. It is this slip. The least we can do is to heed the also important, especially in India, that we voices coming from our youth and allow create an enabling ecosystem to support them to steer the ship in the days ahead and young “greenpreneurs” as they have the trust their ingenuity to find the “common potential to bring about a radical change sense” solutions that have eluded us so far. and make business operations more sustainable. The young are our brightest hopes for a better tomorrow. How dare we fail them? The climate emergency is upon us, and we adults are a big part of the reasons behind

References: • COP 26: A Roadmap for success, an article by Laurence Tubiana. https://hoffmanncentre.chathamhouse.org/article/cop26-a-roadmap-for-success/ • Road to COP26 in Glasgow starts now, an article by Nick Breeze. https://theecologist.org/2020/jan/20/road-cop26-glasgow-starts-now • The COP26 climate conference can still be a success. Here’s how, an article by Ed Miliband. https://www.theguardian.com/commentisfree/2020/feb/06/cop26-climate-conference-climate- emergency-glasgow • COP26 in Glasgow: Opportunities and responsibilities, blog post by James Murray. https://www.businessgreen.com/blog-post/3081458/cop26-in-glasgow-opportunities-and- responsibilities https://www.e3g.org/library/prospects-for-2020-climate-action-on-a-geopolitical-knife-edge • Why 2020 is the crunch year for climate risk reporting, an article by Will Nichols. https://www.greenbiz.com/article/why-2020-crunch-year-climate-risk-reporting https://www.e3g.org/library/tcfd-mandatory-approach-has-best-chance-of-success • Investor Leadership On Climate Change, a report from UNGC, PRI and UNEP Finance. https://www.unpri.org/download?ac=5884 • India’s Climate Change Policy: Towards a Better Future, an article by Shyam Saran. https://mea.gov.in/articles-in-indian-media.htm?dtl/32018/Indias_Climate_Change_Policy_ Towards_a_Better_Future • How India is leading the energy efficiency revolution, an article by Saurabh Kumar. https://energy.economictimes.indiatimes.com/energy-speak/how-india-is-leading-the- energy-efficiency-revolution/2423 • The impact of climate change on youth depression and mental health, article by Haris Majeed and Jonathan Lee. https://www.thelancet.com/journals/lanplh/article/PIIS2542-5196(17)30045-1/fulltext • Climate change is a youth issue, by Aslihan Arslan and Karen Brooks. https://www.ifad.org/en/web/latest/blog/asset/41328025 • Why young climate activists have captured the world’s attention by Emma Marris. https://www.nature.com/articles/d41586-019-02696-0 • Youth need to occupy the future on climate change by Padmini Gopal. https://www.downtoearth.org.in/blog/climate-change/youth-need-to-occupy-the- future-on-climate-change-61417 • Climate change poses mental health risks to children and teens, by Kathiann Kowalski. https://www.sciencenewsforstudents.org/article/climate-change-poses-mental-health- risks-children-and-teens 42 43 Leading Innovation @ ReNew.Hub ReNew Power Limited

Commercial Block-1, Zone-6, Golf Course Road,

DLF City Phase-V, Gurugram-122009,

Phone numbers: Tel: +91 124 489 6670 Email: [email protected] Website: www.renewpower.in44