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India Today
2 days ago
- Business
- India Today
Are corporates quietly leading India's climate transition? A researcher's perspective
Almost every day, we scroll past at least one news headline about climate change. Yet, how many of us truly grasp the magnitude of the risk it poses, not just to our environment, but to our economies, financial systems, and the corporate world? This is not just an environmental issue; it is a full-blown financial reckoning. And opinions about the depth and breadth of climate-related risks differ markedly across stakeholders, from heads of state and bureaucrats to fund managers and business RISK IS NOW A BUSINESS RISKTake, for instance, an eye-opening survey conducted in 2021 by Professors Johannes Stroebel and Jeffrey Wurgler of the NYU Stern School of 861 finance professionals, regulators, academics, and economists, they found that 73% of private sector professionals believed climate risks are undermined (underpriced) in financial markets, compared to 51% among academicians. The disparity in perception itself reveals a key challenge -- the market has yet to fully internalise climate risk. But how, one might ask, are climate and finance interlinked in the first place? What does 'climate risk' actually mean in financial terms?Is it merely the spectre of floods, droughts, and natural disasters? Or is there more to the story? The answer lies in the policy shifts playing out on the national is a committed signatory to the United Nations' Sustainable Development Goals (SDGs) and has made ambitious Nationally Determined Contributions (NDCs), including a pledge to source 50% of its electricity from non-fossil fuel sources by certainly. But for corporates, these noble climate pledges translate into hard compliance mandates, tighter disclosures, and operational restructuring, in essence, a new breed of operational the Business Responsibility and Sustainability Reporting (BRSR) framework mandated by SEBI for the top 1000 listed companies in must now disclose granular details about their energy consumption, carbon emissions, and sustainability practices. Climate compliance is no longer a corporate social responsibility initiative; it is gradually becoming a strategic pressure doesn't emanate solely from regulators. A more environmentally conscious breed of investors, consumers, and civil society actors are demanding surge in sustainable and responsible investing (SRI) is proof that environmental stewardship now carries market consequences. The upshot of all this?Companies are increasingly exposed to 'transition risk', i.e., the financial and operational fallout from a rapid move toward greener norms, policies, and runs parallel to 'physical risk', the traditional category encompassing the direct impact of climate-related disasters like cyclones, droughts, and extreme these twin risks are reshaping the contours of corporate decision-making in India. To empirically assess this behavioral shift, we conducted a comprehensive study of 1174 listed non-financial firms in India spanning 2005 to aim was simple yet urgent: Are Indian companies adapting to climate risk? If so, how? Our findings, recently published in Energy Economics, offer compelling energy consumption, which accounts for nearly 41% of total national energy usage (MoSPI 2021), is already being recalibrated in response to climate observed that firms facing higher climate vulnerability are significantly reducing their energy consumption. This isn't coincidental but a clear response to regulatory, reputational, and financial this response is asymmetric. Energyintensive firms are leading the charge, likely because they have more to lose from non-affiliated firms (those not part of large business groups) and those with robust corporate governance mechanisms show stronger climate quality plays a crucial role in steering firms toward long-term sustainability strategies, while business group affiliation may cushion the perceived impact of climate threats, thereby dulling the urgency to shift became more pronounced after the 2016 Paris Agreement, marking a tipping point in how Indian firms interpret and respond to climate policy course, reducing energy consumption is not without trade-offs. Firms face a strategic dilemma: inaction invites regulatory penalties and investor backlash, while aggressive energy cuts can impair productivity, output, and EFFICIENCY EMEREGES AS A STRATEGIC BUSINESS RESPONSEOur research reveals that firms are not merely cutting back; they are pursuing a strategic middle path, i.e., improving energy investing in technology upgrades and process optimisation, they are learning to generate more output with the same or lower energy not only mitigates emissions but also improves cost efficiency and long-term resilience. Notably, markets appear to be taking that demonstrate better energy efficiency attract higher valuations, suggesting that capital markets are beginning to reward green behaviour, an encouraging signal for the future of ESG investing in finds itself at a crossroads. As per the ND-GAIN index, it ranks 115th out of 187 countries in climate vulnerability. At the same time, it is poised to become the thirdlargest global over 76% of its energy needs in 2021 were met by coal and crude oil. This dichotomy, between environmental fragility and developmental urgency makes the role of Indian businesses absolutely state alone cannot carry the climate burden. The baton must also be passed to industry, not just to react, but to lead. Our research shows that this leadership is already emerging quietly and unevenly, but undeniably. While global climate diplomacy continues to be marred by political deadlock and insufficient commitments, as evidenced by India's rejection of the $300 million annual climate grant at COP29, terming it 'too little, too late', the real action may be unfolding catalyse this movement, government and regulatory support must keep disclosures, streamlined access to green finance, and predictable policy frameworks are critical to support companies that are willing to walk the talk.(THIS ARTICLE HAS BEEN CO-AUTHORED BY SHASHANK PRAKASH SRIVASTAV, DOCTORAL SCHOLAR, AND PROFESSOR M. KANNADHASAN, BOTH FROM THE INDIAN INSTITUTE OF MANAGEMENT RAIPUR)- Ends
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Business Standard
22-07-2025
- Politics
- Business Standard
World has only 3 years left to avert worst impact of climate change: Study
Bad climate news is everywhere. Africa is being hit particularly hard by climate change and extreme weather, impacting lives and livelihoods. We are living in a world that is warming at the fastest rate since records began. Yet, governments have been slow to act. The annual global climate change conference of the parties (COP30) is just months away. All of the 197 countries that belong to the United Nations were supposed to have submitted updated national climate plans to the UN by February this year. These plans outline how each country will cut its greenhouse gas emissions in line with the legally binding international Paris Agreement. This agreement commits all signatories to limiting human-caused global warming to no more than 1.5 degrees Celsius above pre-industrial levels. Governments must also bring their newly updated national climate action plans to COP30 and show how they plan to adapt to the impacts that climate change will bring. But so far, only 25 countries, covering around 20 per cent of global emissions, have submitted their plans, known as Nationally Determined Contributions. In Africa, they are Somalia, Zambia and Zimbabwe. This leaves 172 still to come. The nationally determined contributions are very important in setting out countries' short- to medium-term commitments on climate change. They also provide a direction of travel that can inform broader policy decisions and investments. Aligning climate plans with development goals could lift 175 million people out of poverty. But arguably only one of the submitted plans – the UK's – is compatible with the Paris Agreement. We are climate scientists, and one of us (Piers Forster) leads the global science team that publishes the annual Indicators of Global Climate Change report. This report gives an overview of the state of the climate system. It is based on calculations of the net emissions of greenhouse gases globally, how these are concentrating in the atmosphere, how temperatures are rising on the ground, and how much of this warming has been caused by humans. The report also looks at how extreme temperatures and rainfall are intensifying, how much the sea levels are rising, and how much carbon dioxide can still be emitted before the planet's temperature exceeds 1.5 degrees Celsius more than it was in pre-industrial times. This is important because staying within 1.5 degrees Celsius is needed to avoid the worst impacts of climate change. Our report shows that human-caused global warming reached 1.36 degrees Celsius in 2024. This boosted average global temperatures (a combination of human-induced warming and natural variability in the climate system) to 1.52 degrees Celsius. In other words, the world has already reached the level where it has warmed so much that it cannot avoid significant impacts from climate change. There is no doubt we are in dangerous waters. Our dangerously hot planet Although last year's global temperatures were very high, they were also alarmingly unexceptional. The data speaks for itself. Continued record high levels of greenhouse gas emissions have led to rising atmospheric concentrations of carbon dioxide, methane and nitrous oxide. The result is rising temperatures that are rapidly eating into the remaining carbon budget (the amount of greenhouse gases that can be emitted within an agreed time). This will be exhausted in less than three years at current levels of emissions. We need to face this head on: the window to stay within 1.5 degrees Celsius is essentially shut. Even if we can bring temperatures back down in future, it will be a long and difficult road. At the same time, climate extremes are intensifying, bringing long-term risks and costs to the global economy but also, importantly, people. The African continent is now facing its deadliest climate crisis in over a decade. It would be impossible to imagine economies operating without fast access to trusted data. When share prices plummet or growth stalls, politicians and business leaders act decisively. None would tolerate outdated intelligence on sales or the stock market. But when it comes to climate, the speed of climate change often outpaces the data available. This means fast decisions can't be made. If we treated climate data as we do financial reports, panic would ensue after each dire update. But while governments routinely pivot when faced with an economic downturn, they have been far slower to respond to what key climate indicators – the Earth's vital signs – are telling us. What needs to happen next As more countries develop their climate plans, it's time for leaders across the globe to face the hard truths of climate science. Governments need to have fast access to trusted climate data so that they can develop up-to-date national climate plans. The national climate plans need to take a global perspective too. This is really important for fairness and equity. For example, developed countries must acknowledge that they've emitted more greenhouse gases and take the lead in presenting ambitious mitigation efforts and in providing finance for other countries to decarbonise and adapt. In Africa, the UN is hosting UNFCCC Climate Week in Addis Ababa in September. As well as making plans for COP30, there will be sessions on accessing climate finance and ensuring that the transition to zero human-caused carbon emissions by 2050 (net zero) is just and equitable. The summit also aims to support countries that are still working on their national climate plans. If nationally determined contributions are implemented, the pace of climate change will slow down. This is vital not just for the countries – and economies – currently on the frontline against climate change, but for a functioning global society. Just five of the G20 countries have submitted their 2035 plans: Canada, Brazil, Japan, the United States and the United Kingdom. But the G20 is responsible for around 80 per cent of global emissions. This means that South Africa's current G20 presidency can help to ensure that the world prioritises efforts to help developing countries finance their transition to a low-carbon economy. Another worrying factor is that just 10 of the updated nationally determined contributions have reaffirmed or strengthened commitments to move away from fossil fuels. This means that national climate plans from the European Union, China and India will be key in testing their climate leadership and keeping the Paris Agreement's 1.5 degrees Celsius temperature goals alive. Many other countries will be scrutinising what these countries commit to before they submit their own national climate plans. The data in our report helps the world to understand not just what's happened in recent years, but also what to expect further down the track. Our hope is that these and other countries submit ambitious and credible plans well before COP30. If they do, this will finally close the gap between acknowledging the climate crisis and making decisive efforts to address it. Every tonne of greenhouse gas emissions matters.
News18
17-07-2025
- Business
- News18
Modi's Green Promise Delivered: How India Became A Global Climate Leader
The promise has been delivered ahead of schedule, cementing Modi's legacy as a leader who not only makes ambitious commitments on world stage but ensures they are realised at home When it was first announced, it seemed an insurmountable task. But India has achieved 50 per cent clean power capacity five years ahead of target, setting a global benchmark for sustainable growth. Prime Minister Narendra Modi made a promise on behalf of India at the Paris Climate Change Summit and that promise has now been fulfilled, that too with an oomph factor. Five years ahead of target is outstanding, especially at a time when nations are struggling to understand whether they would even be able to meet the 2030 deadline. As of June 2025, the nation's installed electricity capacity from non-fossil fuel sources has officially crossed the 50 per cent threshold, reaching 50.08 per cent. According to official data, out of a total installed capacity of 484.82 GW, a remarkable 242.78 GW is now derived from non-fossil sources, including renewable energy, large hydropower, and nuclear power. It achieves a critical Nationally Determined Contribution (NDC) pledged under the Paris Agreement, five years ahead of the 2030 target date. As Union minister Pralhad Joshi stated: 'In a world seeking climate solutions, India is showing the way." Despite having one of the lowest per capita emissions profiles among major economies, India remains one of the few G20 countries on track to not only meet but exceed its Nationally Determined Contributions (NDCs) under the Paris Agreement. The progress unfolds against a backdrop of global energy uncertainty, exacerbated by the recent resurgence of fossil fuel proponents on the world stage, most notably in the United States under Donald Trump. In this context, India's steadfast progress is not just commendable, but it is a critical anchor for global climate ambitions. For a country of 1.4 billion people with rapidly growing energy needs, re-engineering half of its power grid away from fossil fuels is a monumental undertaking. While other nations debate the feasibility of their targets, India is delivering on its promises, transforming its energy landscape and setting a powerful example for the rest of the world to follow. A Policy-Driven Transformation This achievement is all the more remarkable considering that just 18 months prior, the share stood at 43.82 per cent. Such a rapid ascent was powered by a suite of visionary policies designed to catalyse every segment of the renewable ecosystem. Under the leadership of PM Modi, India has cultivated a robust ecosystem for clean energy through a series of interlocking, visionary policies. These initiatives create the foundational architecture for sustainable growth. Flagship programmes have been central to this transformation. The Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) has empowered millions of farmers by facilitating solar-powered irrigation, simultaneously ensuring energy security for agriculture and reducing its carbon footprint. The PM Surya Ghar Muft Bijli Yojana, launched in 2024 to bring rooftop solar to one crore households, is democratising energy generation, turning citizens from passive consumers into active 'prosumers'. These have been complemented by the establishment of vast solar parks, which have driven down tariffs to record lows, and the National Wind-Solar Hybrid Policy, which optimises land and grid infrastructure. It is a deliberate, policy-driven push that has catalysed private investment and public participation, building momentum year on year. Green Growth Achieving the 50 per cent mark five years early is not a finish line but a new starting block. The road ahead towards India's ambitious Panchamrit goals—including 500 GW of non-fossil fuel capacity by 2030 and net-zero emissions by 2070—demands an even greater intensification of effort and strategic foresight. Furthermore, the financial undertaking is colossal, with estimates suggesting an investment of $570 billion is needed in the electricity sector by 2032. Mobilising this capital and ensuring the development of robust supply chains for critical components, from solar panels to batteries, will be paramount. The promise made in Paris has been delivered ahead of schedule, cementing PM Modi's legacy as a leader who not only makes ambitious commitments on the world stage but also ensures they are realised at home. India has already lit the lamp of green transformation. The task now is to ensure it shines ever brighter, illuminating a path for the nation and the world towards a truly sustainable and self-reliant future. Sohil Sinha Sohil Sinha is a Sub Editor at News18. He writes on foreign affairs, geopolitics along with domestic policy and infrastructure projects. Location : New Delhi, India, India First Published: July 17, 2025, 12:13 IST News opinion Modi's Green Promise Delivered: How India Became A Global Climate Leader Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
India Today
17-07-2025
- Business
- India Today
Can India sustain its 50% non-fossil fuel milestone amid rising energy demands?
This month, India marked a historic milestone in energy transition, achieving 50.08 per cent of its installed electricity capacity—242.78 gigawatts (GW) out of 484.82 GW—from non-fossil fuel sources, five years ahead of its 2030 target under the Paris achievement, hailed by Union minister Pralhad Joshi as a 'historic green leap', underscores India's accelerating shift towards clean energy, driven by solar, wind, hydro and nuclear power. Yet, as India basks in this success, significant challenges remain, and its journey offers a lens into the global energy transition, with lessons for other 50 per cent non-fossil fuel capacity is a remarkable feat for a developing nation with a population of 1.4 billion and rapidly growing energy demands. India's energy consumption is projected to surge 2-2.5 times by 2047, driven by industrialisation, urbanisation and rising living standards. Achieving this milestone five years early demonstrates India's ability to balance economic growth with climate commitments, positioning it as a leader among emerging milestone aligns with India's Nationally Determined Contributions (NDCs) under the Paris Agreement, which include reducing emissions intensity by 45 per cent by 2030 (from 2005 levels) and achieving 50 per cent non-fossil fuel capacity. This progress, coupled with India's low per capita emissions, bolsters its global standing as a climate-conscious nation. India's success stems from a combination of policies, technological advancements and large-scale deployment of renewable energy. Since 2014, non-fossil fuel capacity has surged from 87 GW to 242.78 GW, with solar energy leading at 94.16 GW and wind at 47.95 GW by November 2024. In 2024 alone, India added 28 GW of solar and wind capacity, followed by 16.3 GW in the first five months of 2025, reflecting an accelerated encouragement from the government has come in the form of programmes such as PM-KUSUM, PM Surya Ghar: Muft Bijli Yojana, and the National Wind-Solar Hybrid Policy. The PM Surya Ghar scheme, launched in 2024, aims to install rooftop solar in 10 million households, decentralising energy access. It has driven solar adoption in rural areas and integrated renewable energy into the government has planned transmission schemes to integrate 66.5 GW of renewable energy in states such as Rajasthan and Gujarat, with 51,000 circuit km of transmission lines and 433,500 MVA of transformation capacity planned by 2030. Solar and wind tariffs are now among the lowest globally, making renewables cost-competitive with fossil fuels. Companies such as Reliance, Adani Green Energy and Tata Power Solar have invested heavily in the this progress, India faces hurdles in translating installed capacity into actual power generation. While installed capacity shows a balanced mix, actual electricity generation is heavily skewed toward fossil fuels making up 73.4 per cent of the total energy generated. This is due to their higher operational account for only 24 per cent of electricity generation as coal remains the backbone. Among the primary challenges is grid integration for the green energy already generated. The grid, designed for fossil fuels, struggles with the intermittent nature of renewables. Enhancing storage (for example battery systems) and smart grids is critical. Moreover, state utilities face financial constraints, and infrastructure investments are needed to ensure grid Poverty'—the absence of reliable electricity access due to affordability issues or inadequate distribution—is a reality for millions in India. Moreover, the achievement may well be short lived as India plans to add 80 GW of coal capacity by 2032 to meet rising demand, complicating decarbonisation. Another reality is biomass-based cooking in rural areas, which continues to expose millions to toxic emissions, requiring a shift to clean CO2 emissions are the third highest globally, but its per capita emissions remain low at approximately 2 tonnes per person (2023 data), compared to the United States (14.7 tonnes), China (10.2 tonnes) and the European Union (6.2 tonnes). This reflects India's developing economy status and lower historical emissions. While the US and China lead in total emissions, India's emissions intensity has decreased by 33 per cent since 2005, surpassing its NDC target. However, coal's dominance in power generation means India's total emissions continue to rise, driven by industrial growth and focus on non-fossil fuels began in earnest with the 2008 National Action Plan on Climate Change, which launched the Jawaharlal Nehru National Solar Mission in 2010, targeting 20 GW of solar by 2022 (later revised to 100 GW). The 2015 Paris Agreement strengthened India's commitment, with pledges to achieve 40 per cent non-fossil fuel capacity by 2030, a target overachieved by 2021. Rising energy imports, geopolitical risks and the need to mitigate climate change drove this shift. The 2021 COP26 'Panchamrit' framework, announced by Prime Minister Narendra Modi, set ambitious goals: 500 GW non-fossil capacity, 50 per cent renewable energy and net-zero by renewable energy adoption varies. China leads with over 1,000 GW of renewable capacity (2023), driven by massive solar and wind investments, but its coal reliance keeps per capita emissions high. The US, with 350 GW of renewables, ranks second but lags in per capita emissions reduction due to heavy fossil fuel use. Germany, a renewable energy pioneer, sources 60 per cent of its electricity from renewables (2024), benefiting from advanced grid nations such as Brazil (60 per cent hydro-dominated renewables) and South Africa (slow renewable growth due to coal dependency) show mixed progress. India's early achievement of 50 per cent non-fossil capacity places it ahead of many peers, though its generation share lags behind leaders like to India Today Magazine- EndsMust Watch
Sky News AU
14-07-2025
- Business
- Sky News AU
Businesses heads warn overly ambitious emission reduction targets could cause economic harm as unions push for re-imposition of carbon tax
Australia's most influential business group have railed against the implementation of a 2035 emission reduction target larger than 65 per cent, stating that the move would impede economic growth and stymie manufacturing. In a letter to the Productivity Commission's five pillars inquiry, which will compile the agenda of the Albanese government's reform roundtable, the Australian Chamber of Commerce and Industry reiterated the 2035 climate targets needed to be grounded in reality. Prime Minister Anthony Albanese is reportedly weighing a 65 – 75 per cent 2035 emission reduction target, in line with Climate Change Authority advice. The government is not expected to announce Australia's 2035 climate target until at least September ahead of the COP 30 conference in Brazil in November. However, chief executive of the Australian Chamber of Commerce and Industry Andrew McKellar said the government should refrain from pursuing a 2035 emission reduction target above 65 per cent, and stated that even the 2030 target of 43 per cent was "increasingly challenging." "We will only support something that's realistic, that's affordable for the Australian economy," Mr McKellar told Sky News on Tuesday. ACCI's submission to the Productivity Commission further outlined that a 2035 federal target over 65 per cent would risk the viability of small businesses and industry". "We have got to be realistic about the contribution that we can make. There's no point driving our economy into the ground," Mr McKellar added. Mr McKellar, who's body represents over 350,000 businesses nationwide, told The Australian anything in the 65 to 75 per cent range would be 'exceedingly challenging for the Australian economy". Despite the ACCI supporting the Albanese government's 43 per cent 2030 climate target, it has consistently pushed for market-oriented solutions and lobbied for the government to create the right environment to bolster private investment. The submission added that 'were the government to set a more ambitious 2035 NDC (Nationally Determined Contribution) ACCI would be greatly concerned about the impact on the productivity, competitiveness and viability of Australian businesses, as well as the cost to the taxpayer'. Meanwhile, the Australian Council of Trade Union used their submission to the Productivity Commission ahead of the economic forum to call on the government to impose a Julia Gillard-style, economy wide carbon tax. The ACTU said a far-reaching carbon tax was one of the best measures the government could take to ensure Australia was meeting its international climate obligations and stated Ms Gillard's carbon pricing mechanism spurred economic growth while limiting emissions. The peak union body also tore into the Albanese government's safeguard mechanism, which sets limits on the emissions of high polluting facilities and said the policy was ineffective and lacked teeth. 'The Productivity Commission's investigation of means to reduce the cost of meeting carbon targets should proceed from these premises, with the goal of internalising the externalities of carbon pollution in line with the principles of carbon pricing,' the ACTU's submission read. The ACTU submission further urged the Productivity Commission to examine whether there were existing federal government fossil fuel subsidies that could be abolished. The Climate Change Authority, chaired by former NSW Liberal MP Matt Kean, has reportedly not finalised its advice to the Albanese government on the 2035 emission reduction target and is still assessing feedback from a range of groups and bodies.
