The Hindu Business Line : Energy wise

Global warming and climate change have become buzzwords around the world, thanks to heightened awareness created by last month’s Bali conference and the award of the Peace Nobel to two campaigners against man-made ecological degradation. Opinion on the outcome of the Bali meet is, however, divided. While developing countries have assumed responsibility for greenhouse gas (GHG) reduction, developed countries are ‘committed’ to it. The meet ended with no ti me-bound, quantifiable and verifiable reduction commitments, which will be the subject of debate and negotiation in 2009. It is in this context that India’s self-congratulatory mood is hardly justified. Indeed, the country will become vulnerable as the international community continues to put pressure on rapidly developing economies to take steps to reduce GHG emissions.

For India, an approach of enlightened self-interest is called for vis-À-vis the global issue of climate change. At least in the foreseeable future, the country’s economic growth projections cannot be achieved without burning fossil fuel and willy-nilly contributing to GHG emissions. And as poverty reduction efforts are premised on rapid economic growth resulting in employment and income-generation, such growth cannot be compromised. That said, we need to recognise the chronic shortage of energy, a critical input to industrial growth. Therefore, it would make sound economic and commercial sense to pursue policies that promote energy generation, support energy conservation and improve energy efficiency. That calls for multi-tasking on a national scale. Reforms in the power sector should include greater emphasis on hydro and renewable energy through an incentivised investment programme. Without neglecting the potential offered by humungous coal reserves, promotion of clean coal technologies should not only be encouraged, but also mandated. Energy-efficient electrical equipment may need fiscal and other support. Even while promoting mass rapid transport systems, use of cleaner and less-carbon intensive fuel would make sense. And a policy that encourages rapid growth of energy-neutral housing and commercial properties is called for.

In all this, the leading industry associations and chambers of commerce can play an important role by motivating their members to undertake energy audit to help improve the efficiency of use. Appropriate disclosure in the annual reports of companies would send out a strong signal to shareholders and others about the kind of corporate social responsibility and corporate governance principles adopted by the company. Chasing carbon credits may benefit a few corporates; but a conscious policy decision and supportive measures for nationwide energy conservation and efficient utilisation will go a long way in ensuring wider participation in fighting climate change.

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