CB Bureau‘Climate change requires an ambitious
global response and a green economy that will protect the planet from its
worst effects. It is necessary that we contribute to the development of green
economies as they are the solution to sustainable global growth. Investments in
sectors such as renewable energy, green buildings, clean transportation, water
management, waste management, and land management can help in strengthening the
green economies,’ said Dr R Seetharaman, CEO of Doha Bank, while opening the
conclave on Green India organized by Madras Management Association.
Addressing the gathering of energy
policymakers, energy project developers, environmental advisors, and bankers,
Seetharaman underlined how China, the United States, India, and Europe were the
highest CO2 emitters, and that they needed to seriously invest in green and
renewable energy initiatives. He said, ‘Global investment in renewable energy
was $270.2 billion in 2014, nearly 17 per cent higher than the previous year,
while developing countries invested $131.3 billion, 36 per cent more than the
previous year. However, India contributed a mere $7.4 billion, which is not
much as a lot more is expected from one of the largest CO2 emitters of the
world.’
It is to be noted that India plans to
ramp up its solar power-generating capacity to 100,000 MW by 2022. The rise in
low-carbon energy is spurred by ample domestic resources, falling costs, and
strong policy support, as expressed in India’s historic climate pledge in the
run-up to the Paris climate summit and also in its efforts to tackle local
pollution and improve urban air quality. At the COP 21 meeting in Paris, India
launched an international solar alliance that intended making joint efforts
through innovative policies, capacity-building measures, and financial
instruments to mobilise more than $1,000 billion investments that would be
needed by 2030 for the massive deployment of affordable solar energy. India is
also part of the Global Solar Council (GSC), which aims to unify the solar
power sector at an international level, share best practices, and accelerate
global market developments.
Highlighting climate change financing
models and green banking initiatives, Seetharaman talked about ‘carbon finance’,
‘global environmental facility’, ‘clean technology fund’, and ‘feed-in tariff’.
Carbon finance provides a means of leveraging new private and public investment
into projects that reduce greenhouse gas emissions, thereby mitigating climate
change while contributing to sustainable development. Seetharaman stressed upon
the idea that banks as socially responsible organisations had a role to play to
protect the environment and contribute to sustainable development. Every bank
should earmark a minimum 10 per cent of its Tier 1 capital – subject to a cap
of 10 per cent of risk-weighted capital – towards green banking or clean development
mechanism (CDM), or any sustainable development project, taking into
consideration the carbon emissions prevailing in the economy in which the bank
operates.