29 November 2023
money control
Op-eds
As the global community convenes for
COP28 in the United Arab Emirates, India must once again assert itself in
climate negotiations, emphasizing the collective objectives that demand our
shared focus during the summit .
The year 2023 witnessed India
showcase commendable global leadership through its G20 Presidency. Grounded in
the ethos of ‘Vasudhaiva Kutumbakam’, the concept of a global family, India
recognises the imperative of viewing the world as a unified entity, a philosophy
reflected in its proactive approach. The landmark New
Delhi declaration is a key outcome of this approach,
especially in the context of the global climate goals. As the global
community convenes for COP28 in the United Arab Emirates, India must once again
assert itself in climate negotiations, emphasising the collective objectives
that demand our shared focus during the summit.
Reflecting back on COP27, there were five key highlights that all countries unanimously decided to follow —
* Dedicating a Loss and
Damage Fund
* Limiting global temperature
increase to under 1.5 degrees Celsius
* Holding organisations
accountable for their actions
* Extending financial
support for developing countries
* Effective implementation
While these larger discussions
will be revisited again to map the progress from last year, it is important to
not overlook discussions around increasing the emphasis on a green supply
chain. The focus this year needs to be on highlighting the need to minimise
environmental impact, ensuring ethical sourcing and promoting social
responsibility throughout the lifecycle of renewable energy (RE) technologies.
Key aspects include transparent sourcing, eco-friendly materials,
energy-efficient manufacturing and a circular economy approach. Discussions at
COP28 will likely emphasise the role of sustainable operations at each point of
supply chains in achieving global climate goals while calling for collaborative
efforts to integrate environmental sustainability across the RE sector.
Foolproof Processes Required
Circling back to a green supply
chain, the creation of foolproof processes is imperative to ensure that the
entire supply chain, including suppliers and other vendors, complies with
standards that are environmentally sustainable. This applies to equipment,
materials and services with low environmental impact, which can aid the RE
sector in minimising its carbon footprint and contributing to the overall goal
of combating climate change. Efforts in this space need to be at the global
level; countries need to band together and support a reliable and responsible
supply chain for energy transition, as was discussed in the G20 Summit 2023,
led by India. It is heartening to note that some of the world's largest
economies are already leading the way on this path and bringing about necessary
changes, considering that the future of climate change strongly relies on
sustainable supply chains.
Deep-tier financing is essential
for achieving a comprehensive and reliable supply chain in the renewable energy
sector, ensuring accessibility and affordability of working capital. The path
to a fair and balanced transition involves acknowledging the significance of
critical minerals such as copper, lithium, nickel, cobalt, and rare earth
elements. These minerals play a vital role in applications ranging from wind
turbines to electric vehicles, a focus area for COP28. Global mining of these
minerals requires collaborative efforts among countries to address availability
gaps and propel collective progress. The renewable energy sector, especially in
Emerging and Developing Countries (EMDC), grapples with challenges due to the
limited availability of these critical minerals. As demand for clean energy
solutions rises, efforts to diversify sources, invest in recycling technologies
and explore alternative materials become imperative for sustainable and
resilient energy transition in the EMDC region. Notably, the concentration of
these minerals worldwide poses vulnerability due to environmental factors and
geopolitical unrest.
As countries work to cut emissions, it is crucial to keep energy systems strong and secure. Current security measures focus on oil, but with minerals becoming increasingly important in clean energy, policymakers need to broaden their view. Even in a system powered by renewables, worries about supply security and prices remain important. To achieve the Paris Agreement goals of keeping global temperature rise well below 1.5 degrees Celsius, there will be a requirement of four times more minerals for clean energy tech by 2040. If we aim for global net-zero by 2050, the transition would demand six times more minerals in 2040.
Corporate Responsibility
Moreover, corporations across the
globe have the ultimate duty on their hands to contribute to economic
development while also bringing about social inclusion from various
communities. Companies can take on the crucial role in the economic development
and social inclusion of communities and regions where they operate in the
context of COP28. By prioritising local employment and skill development,
sourcing goods and services locally, investing in community training programmes,
collaborating on infrastructure projects and engaging communities in
decision-making, companies can contribute to sustainable development, creating
a positive impact on the social and economic fabric of the regions they serve.
As India prepares to participate
in COP28, we must recognise the pressing realities of climate change, including
the reduced carbon budget, the global transition to clean energy and the need
for corporate accountability. India's objectives at COP28 are clear — press for
more ambitious mitigation commitments from developed countries, resolve the
chaos in carbon markets and champion corporate decarbonisation transparency.
Furthermore, India should continue to advocate for expedited support to
debt-stressed nations, building upon its leadership displayed at the G20.
Vaishali Nigam Sinha is Co-founder and Chairperson of Sustainability at ReNew.
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