The world climate clock was ticking away as the international community debated the tradeoff between saving the environment and fuelling economic growth. At the Stockholm conference held in 1972, countries had pledged to work towards preserving the fragile environment of the planet. Yet, nearly four decades later, the global community continues to bicker over ways and means to tackle climate change.
For India, the time is right to evaluate its stance on the issue. India not only has to reduce its usage of coal and oil but also strive to become self-sufficient in clean and low-cost energy. It?s a big challenge, but, as they say, in every challenge there is an opportunity. Indian business enterprises have shown in recent decades that it can do pioneering research & development. As green technologies beckon future development and cash flows, India Inc has to jump on to the bandwagon. Already, some of our companies, like Suzlon, are at the forefront of the global renewable energy business.
The government must encourage private initiatives by promoting investment in businesses that use renewable energy. It should also make greater efforts to develop indigenous clean technologies. With proper planning and priority credit lending to businesses that want to switch to renewable energy modes, India can become a global leader in clean technology.
To reduce the use of fossil fuels?the root cause of global warming?business enterprises have to conserve energy. One way to cut energy useage is for power producers to develop a ?smart grid? system that optimises operation and distributes power with minimum T&D losses. Such a grid is being used in developed countries along with hybrid power stations that combine solar panels and wind turbines with a conventional generator.
In a recent leader, The Economist had a point to make that India should take note of: ?A good policy framework would include some regulation in areas where the market doesn?t work well, such as the energy-efficiency of buildings and appliances. It would include a modicum of subsidy, on research into technologies that are still a long way from being marketable, such as carbon capture and storage. But it would rely largely on by far the most efficient tool in the policymaker?s kit?a carbon price. A carbon price sends business a price signal to invest in clean stuff, not dirty stuff. It doesn?t involve micromanaging business, which regulations do. It doesn?t impose a burden on taxpayers, or require governments to pick winners, which subsidies do. It is, according to an American study, twice as efficient as any other policy.?
Seen in the light of the opportunities that lie ahead, the Copenhagen summit has laid the path for the growth of India?s clean tech economy.
?The author is PGPM 2009-10 student of Great Lakes Institute of Management.
Email: shubhangi.muralidhar@greatlakes.edu.in