A Conversation With : Ajay Mathur, new Director-General of TERI shared his ideas for a sustainable business environment
Updated on: 17 Jun 2016
Investment in renewable energy will help freeze energy cost Ajay Mathur, former boss of Government of India's Bureau of Energy Efficiency, who literally redefined energy efficient systems in the country, is the new Director-General of The Energy and Resources Institute (TERI).
A veteran technocrat, Mathur feels that corporate India should take immediate steps to future'-proof its energy requirements. Otherwise, high fossil fuel in the future will erode its earnings. In an interview with BusinessLine, he shared his ideas for a sustainable business environment. Excerpts:
How can corporate houses help meet emissions reduction targets, as Indian aims to join the Paris Climate Agreement?
By 2030, the national goals are to reduce Green House Gas Emissions by 30 to 35 per cent (per unit of GDP) compared to 2005 levels. By that year, about 40 per cent of electricity produced in the country need to be from non-fossil fuel sources and the amount of carbon dioxide absorbed by trees and forest cover would be about three billion tonnes.
In setting these goals, a number of consultations have been held with all stakeholders, including industry houses. Now, the time has come to set into motion, activities, which will help in achieving the goals.
Business houses in India have hugely contributed to renewable and energy efficiency sector. Their role in afforestation is also very good but the number of corporates contributing to these sectors should increase substantially.
Cleaner and greener business practices should be based on self-protection as the prices of fossil fuels in the future could be uncertain. The chances are that the prices could be much more than the present levels. In other words, the fuel prices could impact the bottom line of companies. Therefore, today, it makes great sense to invest in energy efficiency systems as the amount of energy required is much less. Investment in renewable energy will help freeze energy cost.
This is an important ingredient for the companies to prepare for tomorrow. Large corporates have already started assessing future prices of fossil fuels and accordingly measures are being taken.
Is adequate financing available for environment-friendly businesses?