Invest In India

There are cyclones in the Middle East, floods in Rajasthan, water shortage in Cherrapunji, and Venice is sinking – there is clearly something wrong with the weather. The buzz on global warming has left an impact on businesses worldwide. But can climate change create business opportunities?

Have you ever wondered why you’ve had torrential rains for a while and sweltering heat the very next day? What could be the reason for such extremes of weather? Many speculate that such extreme weather conditions are the effects of global warming.

Global warming refers to the rise in Earth’s temperature due to heat trapping gases in the atmosphere.
But what does global warming and the greenhouse effect have to do with your business?

Why invest in going green?

Companies that help reduce emissions will have an edge over their polluting competitors. Industrial and scientific experts concur that climatic changes can pave the way for innovation and further have far reaching implications for the way businesses operate. Adoption of eco-friendly policies will further reduce manufacturing expenses and increase market share and lead to higher productivity.

Apart from commercial incentives, cleaner technology paves the way for global collaboration as well.
Firms that recognize this challenge early and put in efforts to stabilize carbon dioxide in the environment can create opportunities and bring in positive results. Industries that can contribute to this effort include oil, power generation, construction and the motor industry among others.

So who’s doing what?

Wind and solar energy is being increasingly utilized. On the transport front, biofuels and electric cars are hitting the road. In their efforts to cut down on carbon emissions, GE’s Ecomagination division offers efficient locomotives and low-emitting coal power plants. BP also has been making an effort with clean coal-fired power stations and wind farms that are carbon-neutral.

With heavy cyclones and destructive natural calamities like tsunamis, and hurricanes like Katrina, people are more concerned about global warming. Realizing its importance, some countries are trying to control carbon emissions by imposing a carbon tax.

The India angle

But can a country like India with many people living in poverty afford to invest in cleaner technologies?
Investing in cleaner products can lead to innovation and competitive advantage. A few organizations are already working towards it. Yes Bank is the only “greenfield” private sector bank in India. The bank received the ’environment leadership award’ from US AID for its outstanding contributions to improve the environment.

However, India also faces risks relating to regulations and consumer sentiments. Firms would have to cough up huge amounts of cash to go green. The costs of controlling greenhouse gas emissions are high. But with the Indian economy on an upswing, there is a scope for companies to act responsibly.

Many countries are following an international agreement to reduce carbon emissions, which means a larger market for cleaner technologies. In this scenario, do you think global warming could be a driving factor for business?