It is better for companies dependent on coal, oil and gas, to have an alternative plan since the cost of doing business will increase in the next two decades, said Tara Parthasarathy, Joint Managing Director, Ultramarine and Pigments Ltd.

The cost of credit and capital available to invest on the fossil fuels will increase not only because of decreased availability, but also because of stringent regulations that would be imposed on them by the government, she said at a Climate Change convention organised by the Madras Chamber of Commerce & Industry (MCCI).

In addition, the climate change might result in “nationalisation of businesses” that run on fossil fuels and also influx of immigration from countries such as Sri Lanka and Maldives, said Parthasarathy.

Investing in technology “In order to mitigate the impact of climate change, it is necessary to diversify to less resource intensive products and services and invest in efficiency of labour, energy and capital.”

Additionally investing in technology that reduces the carbon intensive processes, businesses should put money into climate resilient infrastructure and housing, she added.

K Palanivelu, Director of Centre for Climate Change and Adaptation Research and Professor — Environmental Studies, at Anna University, said the maximum increase in temperature is estimated to be between 2.4 and 3.5 degree Celsius by the end of the century.

Tamil Nadu will face 4 per cent deficit in rainfall and the impact will culminate in reduction in food production.

Vidya Soundarrajan, Senior Regional Advisor, Climate Change & Energy, British Deputy High Commission, said though it is impossible to reverse the climate change, steps have been taken to stop the rise at 2 degree Celsius.

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