Use contextual tools and models to catalyse our climate transition

livemint.com:

Climate change is front and centre of the development debate going on around the world. We are finally seeing our economic system account for the cost and impact of air pollution on the environment by putting a value on every metric tonne of greenhouse gas (GHG) emissions. And our transition to a low-carbon economy is being spurred by consumers and governments as well as regulators.

Last year, venture capital saw $37 billion globally in climate-dedicated dry powder. Impressive, but that still only scratches the surface of the emerging carbon economy, especially for India-like markets. India is the world’s third largest emitter, but our emissions per capita are only one-fifth the global average.

With an emerging middle class, an expanding manufacturing base and an agricultural heartland responding to the challenges of food security, our emissions trajectory is poised to change dramatically over the next decade. Our market structures are notably different. While policy and industry have their place, the India net-zero story needs contextually-developed new technologies and business models that can mitigate GHG emissions and enable the economy to adapt.

We need to create fundamental tools to effectively catalyse the climate transition underway. Here, we see three key investment opportunities. One, cost-efficient climate technologies that can offer alternatives for carbon-heavy industries.

Two, digital technology solutions that can optimize supply chains for a lighter carbon footprint. And three, tools that can support the development of the carbon accounting market. Disruptive climate technology will displace or transform industry incumbents.