Despite unsuccessful talks, Climate Change

Despite unsuccessful talks, Climate Change
Continues to be humanity’s gravest challenge

Madhav Mehra
President, World Environment Foundation

Is GDP growth the ultimate measure of human kind? In a new doctrine propounded by Lord Richard Layard of the London School of Economics, he argues, happiness is the sole goal of human activity. Secondly, happiness is measurable. Thirdly, we know what makes people happy or unhappy. Finally, state policy should aim at achieving the greatest happiness of the greatest number.

Our overriding challenge is to bring billions living in developing countries to the same levels as enjoyed by industrialized countries. But if doing that means another 6 billion also owning cars, cookers, refrigerators, washing machines, plasma televisions and flush their toilets with the same quantities of water as only a few million can afford today, we are going to pass on the greatest misery to the coming generations. Is our current obsession with materialistic growth not a recipe for eventual disaster? Are we not behaving like a woman who uses snuff to stop sneezing? Should we instead not concentrate all our efforts on dematerialising growth?

For years we have heard so much about Climate Change and its catastrophic consequences but none is doing anything about. It is more like weather. Every one complaints about it but none anything. In fact the cacophony of climate, carbon, Copenhagen & Cancun has suppressed common sense so much that we’ve missed out the simplistic solutions that have potential for not only ridding us of the problem but unfold unimagined opportunities for regeneration of the economy, boosting the market and creating jobs while protecting the planet. Technologies exist today that can not only cut emissions of heat-trapping gases and make a real difference in the health of our planet but also simultaneously eradicate poverty, bridge regional imbalances and transform economies.

Coming generations will scarcely believe that their forefathers penalized hard work by levying a tax on income derived from hard work and let everyone pollute the environment with impunity - indeed reward those who were engaged in the wanton destruction of natural wealth. Why we cannot think of a new tax regime based on usage of environment?

There is little disagreement that despite failed talks at Copenhagen, crippling economic crisis, bungling by IPCC and ‘climategate’, climate change continues to be humanity’s gravest challenge. But we are unable to take action because our approaches are submerged in silos.

We see the problems as stand alone, as a patient suffering from prosopagnosia. Once you start looking at the problem in its holistic context, results can be transformational. For instance, 600 million tonnes of India’s annual agricultural waste for which we have no other use can generate 60,000 megawatts of cellulosic ethanol -based electric power which will not only meet 50% of our current requirement but also generate 6 million jobs in rural areas, thus bridging the rural – urban imbalances.

Einstein said long ago that the significant problems that we face today cannot be solved at the same level of thinking that created them. Climate change problem can be solved the moment we alter the model of our growth from feeding consumerism to increasing happiness. All our climate change and environmental problems stem from one reason – the acquisitive character of the current growth model. This not only triggers climate change but also results in Affluenza, an emotional disorder caused by envious greed described by Oliver James in his book of the same name.

We need to recognise that like all risks, climate change is also an unparalleled business opportunity. Climate change is what brought life on this planet and led to the formation of galaxies as we see today. This opportunity has come after a million years. With the global spurt in innovation and development of information and communication technologies (ICT), Climate Change could not have timed its arrival better.

Instead of discussing which nation should take on commitments that may lead to closing down its production, we should start discussing how to finance digitalization to dematerialise production processes in a way that eliminates transportation of physical goods altogether. The fight against climate change is not a zero-sum game. It has potential of infinite opportunities.

Mobile and ICT also have significant potential in enabling other sectors to reduce their CO2 emissions. ICT’s unique ability to monitor and maximise energy efficiency both within and outside its own sector could cut worldwide (CO2) emissions by (7.8 Giga-tonnes) of carbon dioxide equivalent by 2020. That would equal 15% of business-as-usual emissions - or more than the current annual emissions of either the US or China.

‘Smart’ systems can support smart green growth. Mobile networks provide the appropriate connectivity, transmission capabilities and security to help consumers and businesses more efficiently manage their operations and energy consumption and, thus, reduce both power thefts and carbon footprint. Not surprisingly, M2M is a key focus area for future growth in the mobile telecom and power businesses.

Governments should also encourage cross-sector collaboration between the mobile and other ICT sectors. Mobile devices can help promote increased awareness of climate change, enabling users to calculate their personal emission levels, including their home energy usage, and information campaigns that give suggestions for reducing personal carbon footprints.

India’s leading banks are also seizing opportunities in an emerging low-carbon economy. Last December, IndusInd Bank inaugurated Mumbai’s first solar-powered ATM as part of its “Green Office Project” campaign titled “Hum aur Hariyali”. With the solar-powered ATM, the bank expects to save around 1,980 Kw of energy annually besides reducing carbon emissions by 1,942 kg. It also expects to save power bills of around Rs 20,000 per year in urban areas, where it replaces diesel generators with solar panels.

Solar energy is another area with huge untapped potential. Despite the formation of the National Action Plan on Climate Change, there is little clarity on the development and distribution of solar power or incentivisation of the stakeholders of solar power – the harvesters of sun - on whom India’s future lies. What is required is a highly proactive approach by the government declaring harvesting of the sun its foremost priority and advocating R&D, production and use of solar energy as a prime sport.

Biggest revolution in renewable energy will take place in automotives. There are currently 668 million cars in the world. By 2050 the figure is expected to exceed 3 billion cars i.e. over four times the existing number. There is just not enough fossil fuel to power these cars. This is why smart companies are going for renewable technologies. Mahindra & Mahindra has bought a majority stake in electric car company Reva, making a big foray in the alternative fuel technology that is increasingly becoming the darling of auto makers worldwide.

Climate Change may have the greatest impact on tourism. Even ‘ecotourism’ is just as environmentally damaging as traditional travel due to the greenhouse gases vacationers are burning to reach remote and pristine areas, industry experts warned. That dilemma has been the focus of the Global Ecotourism Conference in Oslo, a three-day gathering of ecotourism officials struggling to chart the future of an industry whose success threatens to become its own undoing.

Sustainable tourism is where tourists can enjoy their holiday and at the same time respect the culture of local people and also respect the environment. It also means that local people get a fair say about tourism and also receive as part of the profit which the game reserve makes. The environment is being substantially degraded by tourists and the purpose of Sustainable Tourism is to make sure that the ill effects do not continue.

We are approaching an environmental meltdown primarily because businesses are not factoring the environmental costs of procurement, production, packaging, transportation, usage and disposal. Gross Domestic Product gives a grossly distorted picture of growth. Our wealth is growing at the expense of our natural treasures. None of what we are creating can be transferred to our children. The best way is to adopt the model PROACTIVATE which advocates pricing of natural capital in balance sheets, radically increasing efficiency of energy and natural resources, opting for minimalist life styles, adopting zero waste systems, carbon sequestration, turning to renewable technologies, innovating business models that dematerialise world, vigorously pursuing market mechanisms to punish the polluters and reward these who conserve environment, activate women and children to drive the change, training people to eco-innovate and lead implementation by example.

India needs to couple its stance on climate change with the market-based approaches that Western economies so vigorously advocate. Global emissions trading whereby each person on the planet would have an equal quota/entitlement to account for GHGs offers a win-win opportunity. While this means India would adopt a cap or ceiling on its total emissions, it would be non-binding since its current emissions are well below what it would get on the basis of a per capita allocation (especially one that also took into account historic contributions). While an average American accounts for 20 tonnes each year, an average Indian account for only 1.1 tonnes. The average for the world is about 7 tonnes. Cutting the emissions by half and setting the 'safe' limit at about 3-4 tonnes of carbon dioxide per person will give India a comfortable margin.

We have to move away from the current incrementalist, bargain-based approach in favour of a transparent market driven approach. India has to engage with all stakeholders intensively and demonstrate it is willing to negotiate on the basis of equal per capita emissions. It would unlock the vast resource transfers required to address climate change and without these being treated as handouts or 'aid'. This accords with Prime Minister Manmohan Singh's June 2007 statement at the G8+5 summit in Heiligendamm, Germany, that India's per capita GHG emissions would never exceed those of developed countries even while pursuing present policies of development and economic growth.

The policymakers in Copenhagen were unable to agree even on moderate goals. Changing their paradigm to treat climate change as an opportunity and putting business at the head of the negotiating tables at Cancun would unfold new vistas and strengthen their resolve to set ambitious global climate frameworks. We have but no alternative. This planet is our only home.

*Dr Madhav Mehra is the President of UK based - World Environment Foundation
President of World Council for Corporate Governance
www.wcfcg.net

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Author : Dr Madhav Mehra
Dr Madhav Mehra is the President of World Council for Corporate Governance

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