BackCarbon trading can help India become net zero by 2040: Nadir Godrej
Godrej believes the government’s recent move to put in place carbon emission reduction goals for the petrochemical industry will open up the market for carbon trading
PremiumBusiness tycoon Nadir Godrej, the chairman and managing director of Godrej Industries, believes that with the right incentives – and disincentives – in place, carbon trading can help India become net zero by 2040. That would be 30 years ahead of the country’s committed target of 2070, and 10 years faster than the target that most developed countries have agreed to.
Godrej believes the government’s recent move to put in place carbon emission reduction goals for the petrochemical industry (as well as iron and steel, cement, and pulp and paper, according to a Reuters report) will open up the market for carbon trading.
“Those who achieve more than the goals can sell their credits and those who achieve less than the goals will have to buy the credits. Either way, both fast movers and slow movers will be incentivised to cut their emissions," he told Mint in an interview.
“Today the cost of adaptation is bigger than the cost of prevention. Unfortunately, if one person tries to prevent, he will be at a disadvantage compared to everyone else. If there is a level playing field, we would all agree that we would go for prevention and not adaptation," he said, adding that carbon trading can create this level playing field and that could help India reach its net zero target earlier than 2070. “Why 2070, why even 2050, we may be able to do it by 2040. We need good incentives in place, and disincentives," he said.
Godrej further said that his business might help oil palm farmers it works with to sell carbon credits once a good market comes up. “They are growing the trees, so the credits will belong to them," he said, adding that he is also looking to work with startups to produce food-producing trees, which sequester huge amounts of carbon. “The trees stay in the field for 20-30 years and the carbon is sequestered for all that time. We would get into such activities also, and if there is the potential to sell some of those carbon credits, we would. That would make the business more viable and we would further expand the business."
Godrej Group has set an internal target of achieving carbon neutrality for all group companies by 2035, which Nadir Godrej is optimistic would be achieved earlier.
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