By Dilsher Dhupia | 10 January 2024
Climate change is no longer a distant threat, but a sweaty reality. We're all sharing a hot seat, and the temperature is rising faster than our Zomato bills.
Enter COP28, the annual climate pow-wow where world leaders gather (on their private jets *rolls eyes*) to determine ambition and responsibilities and identify and assess climate measures.
Quick reminder: COP21 was the event that resulted in the Paris Agreement, and this was the first stock take since then. In not so surprising news, humans were served a C in our report card for taking care of our planet.
The agenda was “simple”: phasing out fossil fuels, securing financial support for developing nations, and accelerating the transition to clean energy. However, the road to progress was bumpy. Fossil fuel interests resisted calls for a complete phase-out, while concerns about equity and fairness hampered financial commitments.
Despite the challenges, COP28 did see some significant achievements:
1. Global stocktake: For the first time, countries agreed to a comprehensive assessment of progress towards the Paris Agreement goals. This will help identify areas where more effort is needed.
2. Increased financial support: The Green Climate Fund received a significant boost, and new pledges to the Loss and Damage Fund were made. This will provide crucial resources for vulnerable nations to adapt to climate impacts. The UAE's $270 billion green finance pledge further creates fertile ground for sustainable initiatives.
3. Fossil fuel call-out: More than 190 governments approved an agreement calling for the world to transition away from fossil fuels, sending an unprecedented signal to the global economy that governments are intent on cutting back on coal, oil and natural gas in the fight against global warming. This marks a historic first: acknowledging the need to move away from fossil fuels in an agreement.
Where did India fit into the equation?
India’s delegation led by PM Modi was present and ready to contribute at COP28. It promised that renewable energy will fulfill 50 per cent of India’s energy requirements by the end of this decade. The government also set a target of 500 GW of non-fossil fuel electricity generating capacity by that period — up from about 173 GW last year. India also said it will look to host COP33 (2028) clearly showing that it is looking to champion this cause and become the leader amongst developing nations.
The aftermath of COP28 presents a myriad of opportunities for those willing to take bold steps towards a sustainable future such as:
Renewable Energy Solutions: COP28 highlighted a global consensus on the urgent shift to renewables. Cleantech startups can seize this opportunity by innovating scalable solutions in solar, wind, and sustainable technologies. Given India’s target of 500 GW of renewable energy capacity by 2030, we expect a massive increase in funding and job creation in this segment.
Agriculture and Food Security: For the first time ever, COP28 emphasized the importance of food systems in the fight against climate change by showcasing a full day devoted to food and agriculture. Food systems, encompassing everything from what we eat to how we grow, transport, and prepare it, contribute a third of global greenhouse gas emissions.
This focus resonates deeply in countries like India, where a burgeoning population of 1.6 billion by 2050 casts a long shadow on future food security. Traditional agricultural practices are unsustainable, with issues like soil degradation, water scarcity, and reliance on chemical fertilizers threatening future food production.
Agritech startups in India have the potential to contribute significantly to these goals by developing innovative solutions such as:
a. Precision agriculture: Using sensors and data analytics to optimize water and fertilizer use, improve crop yields, and reduce environmental impact.
b. Climate-resilient crops: Developing varieties that can withstand drought, floods, and other extreme weather events.
c. Sustainable farming practices: Promoting techniques like organic farming, agroforestry, and soil conservation to improve soil health and reduce greenhouse gas emissions.
Green Financing: India's ambitious climate goals, including net-zero by 2070, require massive investments in clean technologies and sustainable infrastructure. As the country grapples with issues like air pollution, water scarcity, and climate change, the demand for sustainable infrastructure and clean energy projects is rising. Investors are increasingly recognizing the importance of considering ESG factors in their investment decisions. As a result, green bonds provide an avenue for investors to support sustainable initiatives while still seeking financial returns.
The green bond market provides an avenue for startups focused on renewable energy, sustainable agriculture, and environmental conservation to raise capital for their initiatives while carbon credits offer startups an opportunity to monetize their emission reduction efforts.
Climate-Resilient Technologies: COP28 underscored the imperative for climate-adaptive solutions, particularly in a country like India, vulnerable to the impacts of climate change. Startups specializing in water conservation, soil improvement, and disaster resilience can harness the potential of collaborative initiatives to accelerate their development and deployment. By fostering partnerships with governmental bodies, research institutions, and non-profit organizations, these startups can tap into valuable resources, expertise, and funding. This collaborative approach not only facilitates knowledge sharing but also ensures the creation of tailored solutions that address India's unique climate challenges, contributing significantly to the nation's overall resilience and sustainability efforts.
COP28 wasn't a climate action utopia, but it was a step in the right direction. The world is finally starting to sweat the climate crisis and given India's proactive participation in COP28 to position it as a key player in global climate action, the opportunities for entrepreneurs and innovators are hotter (pun intended) than ever.
Let 2024 usher in this new way of sustainable and responsible thinking by governments, businesses, and consumers!