ET NOW GBS 2024: Global industry heads echo the idea of fighting climate change through innovation

At the ET NOW Global Business Summit 2024, experts emphasized that rapid action is needed across all sectors to mitigate climate impacts and build resilience. As the effects of climate change intensify around the world, countries are facing mounting pressure to curb emissions and transition to sustainable economic models driven by technology at the spearhead.

“By climate action, we do not only mean emissions reduction, we also mean adaptation and resilience,” said Neha Kumar, Head- South Asia, Climate Bonds Initiative, framing the discussion. “When we also talk about climate, we should not overlook wider sustainability aspects.”

Achieving these climate goals requires extensive financing, especially in developing countries. “We need to increase financing in developing countries, where both technology and financing are scarce, by nearly $3 trillion,” Kumar noted. “So the need and the gap is huge.” 

India’s development trajectory poses a unique challenge in this context. As Neha explained, “India’s development transformation is perhaps the first which is happening without major recourse to fossil fuels. Every other developing country has developed and prospered on the back of enormous fossil fuel use, which now must be cut down.”

When asked which sectors are leading on emissions reductions, Joe Phelen, Executive Director Asia Pacific & Member of the Extended Leadership Group, World Business Council for Sustainable Development (WBCSD) pointed to progress from the cement and renewable energy industries in India. “But the reality is that business is not on track – the world is not on track,” he said. “We have to decarbonize 11 times faster.” 

Joe argued that to accelerate climate action, businesses must “embrace accountability” for their impacts and drive transformation across their value chains. Srini Nagarajan, Managing Director and Head of Asia, British International Investment, emphasized the need to balance commercial viability and development impact. 

“Sustainability affects every walk of society,” Srini said. “Striking a balance between inclusive and sustainability goals is not simple.” She outlined how her organization prioritizes investments in areas like just energy transitions and climate resilience in emerging markets.

The experts highlighted opportunities for greater collaboration to drive sustainability, such as leveraging public data, aggregating demand for emerging technologies like electric vehicles, and channelling investment into vulnerable countries.

“Getting much more granularity on climate performance data, especially into supply chains, is key for business,” said Joe. He pointed to the Partnership for Carbon Transparency, which helps companies measure carbon footprints across their operations.

Joe also noted the need to direct more philanthropic funding toward climate solutions and business model innovation. “There’s lots of finance available, but not enough investable business cases,” he explained. Nagarajan echoed this, saying development banks must catalyze private investment by taking on more risk.

“Development finance institutions should look for additionality where commercial capital is not willing to go, and ultimately attract commercial capital,” said Srini, citing transmission infrastructure as an area for greater public investment.

Neha Kumar, moderator of the chat concluded that combined efforts across public, private and philanthropic groups are imperative to drive progress. “To create disruption, scale solutions and diversify risk, partnerships are crucial,” she said.

Technology and data offer immense potential but must be guided by sustainability. Finance is abundant, but needs to be channelled strategically towards the most vulnerable communities. Government policies can set the course, but business leadership and social support are essential to realize decarbonization and development goals.  

The path ahead will not be easy, but bringing diverse perspectives together can spark innovation. “India and Finland can strengthen partnership through policy dialogues, investments in sustainable projects and joint initiatives,” noted Kimmo Lahdevirta, Ambassador, Embassy of Finland in his keynote address, citing areas like clean energy, ecosystem conservation and sustainable forestry.

The 2040 target will “shape our path after 2030,” when the EU aims to reduce emissions by 55% under the European Green Deal. The ultimate goal is climate neutrality by 2050, as legally mandated by the EU Climate Law.

The Commission’s report elicited both criticism and praise across Europe. Agricultural representatives argued that the proposal does not adequately address farming emissions, which account for 14% of total EU emissions. Meanwhile, some industry groups warned that overly stringent targets could hurt European businesses.

In addition to the carbon tax, cross-sector collaboration has been instrumental. Businesses and industry groups in 14 economic areas have jointly developed customized roadmaps outlining the concrete steps and policies needed to decarbonize their operations and supply chains by 2035.

With India expected to account for over 25% of global emissions growth by 2050, collaboration between emerging and advanced economies will be essential. Lahdevirta suggested that “joint research projects, technology transfers and capacity building can help India reduce its carbon footprint and hence enhance its climate resilience.” By assisting India’s sustainable development and exchanging best practices, Finland hopes to foster stronger bilateral ties while catalyzing progress worldwide. 

As climate impacts intensify, the clock is ticking to transform economic models and usher in a green, inclusive future. But challenging times also present opportunities for humanity to come together in service of the greater good. Perhaps Kumar said it best: “Collaboration is the keyword we are taking away.” Prioritizing shared sustainable development, while respecting planetary boundaries, can lead the way to a thriving world for all.