DNA Money Correspondent / DNA MONEY
India’s first national action plan on climate change, released on June 30, offers immense opportunities to India Inc, particularly energy-intensive sectors. The latest KPMG report titled, ‘Climate Change – The Impact and Opportunities for Indian Industry’, says Indian firms will have to undertake concerted preparations for imminent large-scale ‘greening’ of the economy, or else face financial losses.
The action plan is a consolidated account of the country’s position on adaptation and mitigation efforts. It focuses on efficiency targets, rather than imposing quantitative emission targets. It mentions eight missions that will dictate the future course of action -solar energy, energy efficiency, sustainable habitat, agriculture, water, sustaining the Himalayan ecosystem, green India and sustainable knowledge for climate change. Accordingly, the relevant ministries are developing detailed plans that will outline the specifics of regulatory and non-regulatory measures to be taken.
For businesses, the policy mandates the setting up of energy benchmarks for each industry sector and allows for trade in certificates. Nine energy intensive sectors – thermal power plants, fertilisers, cement, iron and steel, chlor-alkali, aluminium, paper and paper pulp, railways and textiles – have been identified, and bands have been created for them, based on energy intensity levels.
According to the plan, each industry is given a target to reduce its fuel consumption over a fixed period. Industrial units that reduce fuel consumption as per the target given will receive an energy efficiency certificate, which can either be traded or carried forward for the next round.
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