Academic journal article Review of Management

Prospects of Clean Technologies for Sustainable Business

Academic journal article Review of Management

Prospects of Clean Technologies for Sustainable Business

Article excerpt

"Sustainability is here to stay or we may not be" -Niall Fitzgerald

Introduction

Since 1991, the Indian economy is being progressively liberalized and its integration to the global economy is deepening. Liberalization and globalization have provided unprecedented opportunity for the growth and expansion of the industry in general and the manufacturing in particular. Indian Industry has to not only face stiff competition from free imports but also continue its efforts to grow its export capability through competitiveness. There is a continuous need to benchmark the Indian manufacturing sector against the best in the world and enhance competitiveness of the manufacturing sector. Ultimately, it is firms that compete in the market and not countries. Therefore, it is necessary for them to become competitive by building abilities to acquire, assimilate, develop new technologies; reduce production costs; cut down delivery time; practice Total Quality Management; enhance productivity and customer service. In the increasing global focus on sustainable business practices it is necessary for the Indian industry to adopt carbon efficient or clean technologies. Clean technologies have emerged as a necessary imperative with the climate changes and the impending dangers to planet earth. Climate change is increasingly becoming a central topic of debate and strategic decision making by Governments and businesses all over the world. The warming of the climate system is unequivocal, as is now evident from observations of increases in global average air and ocean temperature, widespread melting of snow and ice, and rising global mean sea level. It impacts all countries, but is particularly severe for developing countries like India, given their vulnerabilities, inadequate means and limited capacities to adapt to its effects.

The global concerns are represented through the pre-eminent business voice going into COP15, the Communiqué: 'A strong, effective and equitable international climate framework will stimulate the domestic policy interventions, bilateral and regional deals that are needed as a matter of urgency to deliver on intermediate and long-term reduction targets and accelerate construction of the low-carbon economy. This will unlock the potential of business to do what it does best: to invest profitably, to innovate, and make affordable low-carbon products and services to billions of consumers around the world. The more ambitious the framework, the more business will deliver'. The manufacturing sector is the major contributor of greenhouse gas emissions. The International Energy Agency estimates that 70% of greenhouse-gas emission reductions could be achieved through the diffusion of existing low-carbon and energy-efficient technologies, along with technologies already in an advanced state. These technologies are transferred through projects, and through products that are bought and sold, beyond national boundaries and at a fairly rapid pace. Companies transfer technology constantly, either within its own branches in different countries, or by selling it to other companies operating elsewhere.

Cognizant of this need, the government of India has taken several policy measures towards combating climate change. The present plan of Government of India constitutes one of the strongest responses to global climate change by any developing country. India has already achieved emission intensity reduction by 17.6% between 1990 and 2005. Going forward, given the recent successes of Indian industry in energy efficiency, renewable energy and green buildings and enhanced commitment to address climate change issues, the 20-25% emission intensity reduction goals, set out by the Indian Government, should be achievable. As India reduces emission intensity of its economy by 20-25% by 2020, numerous investment opportunities are likely to emerge in the key sectors. These include (a) Industrial energy efficiency: An investment opportunity of Rs 82575 million exist in industrial energy efficiency leading to annual saving potential of Rs 37510 million (b) Renewable energy: 20,000 MW target of solar energy capacity by 2022 and pipeline of other renewable energy projects such as biomass, wind and small hydro present huge investment opportunity in the sector in coming years (c) Green Buildings: One billion sq. …

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