Climate Change Need for mainstreaming sustainability

2015

Climate Change Need for mainstreaming sustainability

Need for forging framework with an integrated Carbon and Water foot print approach for
sustainable development and aims to create the preferred future? Its important the
worlds ecological assets need to become central to decision makers across the world and
accounting for direct and indirect implications of actions in all sectors.
The need is to agree and adapt an
approach that tackles climate change
and strives for sustainability and that
where timelines are strictly adhered to
in a very transparent manner.
It would be critical for living and
achieving the Millennium Development
Goal (MDG).

1. An approach that is Inclusive and Integrated

Tackling climate change and ensuring Sustainable Development has to be made an
inclusive, multi-stakeholder process and the active participation of the corporate sector,
banks, and financial institutions is essential.
The central problem for sustainable
development is how to balance the resource
use and environmental impacts of economic
production with the benefits of that production
to society. Therefore there is a need to develop
an integrated Footprint approach for the
assessment of the environmental impacts of
production and consumption. Looking at
carbon in isolation rather than overall

Manoj Rawat | India | mkrawat@gmail.com

Climate Change Need for mainstreaming sustainability

2015

resources like water, food, timber, marine, and many other resources may be more justified
today.
The integrated concept would help understanding the diverse pressures human activities
place on the planet. It represents a quantifiable and rational basis on which we limit the use
of freshwater consumption, greenhouse gas emissions, as well as on how to address the
sustainability of natural capital use across the globe. The two indicators selected are
characterized by the capacity to represent the environmental consequences of human
activities and have to be regarded as complementary in the sustainability of resources and
planet as whole.
2. Recognize that Carbon and Water Footprints are intertwined and cannot be
addressed in isolation
It has been widely recognized that Carbon
and Water Footprints complement
traditional analyses of human demand by
coupling
producer
and
consumer
perspectives. These indicators present a
quantifiable and rational basis on which
to begin discussions and develop answers
regarding the efficiency of production
processes, the limits of resource
consumption,
the
international
distribution of the worlds natural
resources, and how to address the
sustainability of the resources across the globe.
The Water and Carbon Footprint may cover a wide-enough range of environmental policies
and, particularly for what concern sustainable production and consumption issues. In
country like India where 70% of irrigation water is dependent on ground water with free
energy and limited regulation around ground water this makes lot more sense. India has
about 16 per cent of the worlds population as compared to only 4 per cent of its water
resources.
The focus has to be to evolve an environment where water is available for all in a
sustainable manner safe drinking water for basic needs, adequate water for agriculture,
water for industry and for the ecosystem. The Government specifically needs to ensure
sure that agricultural policies are coherent with goals of water protection. The national
targets on water footprint reduction should be translated to specific reduction targets for
products, producers and sectors.

Manoj Rawat | India | mkrawat@gmail.com

Climate Change Need for mainstreaming sustainability

2015

3. Low carbon and clean energy asset finance Strategic to financial institutions
The biggest impact banks and financial
institutions have on the environment and
climate, and on the world, are through the
lending decisions they make. The banks may
play an active role in low-carbon energy
transition in developing countries to increase
the scale, and thereby the impact, of the
transition.
The low carbon and clean energy asset
finance offer multi-billion dollar business
opportunity to Indian financial institutions
and banks for lending to a preferred future
and mainstreaming sustainable development. Clean energy systems, i.e., renewable energy
and energy efficiency systems, will play a key role in decarbonizing the energy sector,
reducing greenhouse gas emissions and address the climate change issue. However we
need to address various factors which include increased investment costs, appropriate
technology transfer, technology management and augmenting the capacity of developing
countries to integrate innovative technologies.
The banks and financial institutions need to consider that addressing environmental issues
is a matter of strategy and can be evaluated based the actions being taken, and the benefits
realized. This could lead to a deeper understanding of the opportunities inherent in
financing a greener business, adopting new approaches to risk management, and costsaving benefits of cutting environmental footprints both inside and outside a banks walls.
4. Play the lead by implementing a sustainable solution for managing Carbon
and Water footprints.
Indias plan to become of the
largest solar power markets in
the world has received a
massive boost as the latest
estimates of its solar power
potential.
The
National
Institute of Solar Energy in
India has determined the
countrys
solar
power
potential at about 750 GW. The
solar power potential has been
estimated using the wasteland
availability data in every state
and jurisdiction of India. The estimate is based on the assumption that only 3% of the total
wasteland available in a state is used for development of solar power projects. Besides

Manoj Rawat | India | mkrawat@gmail.com

Climate Change Need for mainstreaming sustainability

2015

other renewable energy sources have a potential for 120 GW. The potential would on a
conservative basis translate into more than USD 1 trillion capital investments for banks. A
country like India has 30 million agriculture pump-sets which can be replaced over a
period of 15 years by Solar Powered Pump sets which itself would need USD 100 billion
capital investment. Giving a major push to micro-irrigation program especially drip
irrigation for reducing water foot print
Given the water scarcity, over exploitation of water resources and growing need for food
increasing production, micro-irrigation needs to be given a major push as it may help solve
three of the most important issues- water scarcity, rising pumping (energy) costs and
depressed farm profits. Advantages of drip irrigation are it saves of irrigation water
(approx 30-40%) , ensures Crop yield enhancement increases fertilizer use efficiency and
saving of fertilizers, saves electric power in pumping (29-40%) and reduces CO2e emission.
Drip Method of Irrigation increases the water use efficiency in irrigation which
subsequently reduces energy and CO2e. There is direct relationship that has been observed
between groundwater irrigation development and electricity use in Indian agriculture.
Macro level data clearly suggests that the electricity consumption in agriculture has been
increasing along with the increase in groundwater irrigated area. There is a business case
for sustainable energy. Innovative financing approaches and new business models can
tackle barriers from the grass-roots level and can ensure better offtake.
To sum up
While meeting the sustainability objectives will require taking an integrated view the
present environmental framework, enacting strong legislation and introduction of new
enabling policies, there is need for adopting a holistic approach to water, energy policy and
planning.
For a sustainable, inclusive and preferred future!
Manoj Rawat
Head, Agribusiness Group
RBL Bank, Mumbai
India
mkrawat@gmail.com

The views expressed are purely personal

Blog : http://www.manojrawat.com
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Manoj Rawat | India | mkrawat@gmail.com