Indian companies and authorities are coming under pressure to step up efforts to fight climate change amid rapidly rising concerns about the implications of carbon emissions for the economy, following the revelation that India is one of the three worst offending countries when it comes to environmental performance.
“The issue is very critical to Indian economy,” says Dr Satish Modh, the director of the VES Institute of Management in Mumbai. “Farming cannot be just viewed as an agricultural activity, it provides inputs to many industries.”
In the country's latest economic survey, advisors made climate change a central part of the key document produced for the Indian government by its chief economic advisor Arvind Subramanian, warning incomes in the farming sector could plummet by up to a quarter because of the effects of climate change. It highlighted that farming revenues have already stagnated over the past four years because of poor monsoon rainfall and the sector has been “in crisis”.
The government has estimated extreme weather events in India cost the country $10 billion a year. Agriculture is critical to the country's economy. It accounts for 16 per cent of India's GDP and 49 per cent of the population are dependent on agriculture for their livelihoods, according to the economic survey.
“Poor agricultural performance can lead to inflation, farmer distress and unrest, and larger political and social disaffection - all of which can hold back the economy,” according to the document. It warns that climate change could reduce annual agricultural incomes by an average of 15 per cent to 18 per cent, and by up to 25 per cent in unirrigated areas.
The findings follow India dropping 46 notches from 2016 to rank 177 out of 180 countries in the environmental performance index released by the World Economic Forum in Davos last month. Indian Prime Minister Narendra Modi, speaking in Davos, stressed that climate change was one of “the biggest threats” globally.
The effects of carbon emissions have become increasingly visible in New Delhi, with air pollution levels reaching alarming levels, at a peak towards the end of last year, forcing residents to stay indoors or only venture out wearing masks. The capital's air quality in November exceed 450 on the air quality index, on which anything over 100 is considered unhealthy, according to the Central Pollution Control Board.
Under the Paris global climate agreement, India has committed to generate at least 40 per cent of the country’s electricity from non-fossil sources in an effort to tackle climate change. Thirteen of the world’s 20 most polluted cities are in India, according to the World Health Organization.
The Indian government is now focused on growing the renewables sector, setting targets to generate 175 gigawatts from renewable energy sources by 2022, with solar power accounting for the majority of the mix, a target of 100GW, followed by wind power as the next largest source.
An expanding economy, urbanisation, and a focus on growing manufacturing activities are all contributing to India's expanding energy needs. The growth of the country makes India the third-largest carbon emitter after the United States and China.
“There's a lot of policies that are being made to overcome the challenges climate change, but in terms of implementing those policies, I don't think enough is being done on a ground level,” says Mahesh Rathod, the managing director of Tailwind Trade and Investment, based in Mumbai. “Unless stakeholders start working on those, things are looking very difficult. It's very important that we address this issue of climate change because a large chunk of India's population is dependent on agriculture and climate change will have a direct impact. It's very important that India's addresses this challenge in front of the nation very seriously, with very clear and long-term milestones.”
A boost to growth levels is vital to create more jobs, and anything that is a threat to economic prosperity is a major concern. India's economic expansion is expected to have slowed to a four-year low of 6.5 per cent in the current financial year to the end of March, according to the Central Statistics Office.
Still what is promising is some of India's biggest companies are leading the way when it comes to making efforts to tackle climate change.
Indian IT giant, Infosys is aiming to get all of its energy from renewable sources and be carbon neutral by 2018. It is the first Indian company to join the global RE100 campaign because of its commitment to use 100 per cent renewable energy for all of its electricity.
“Becoming carbon neutral is a very important goal for the company,” says Bose Varghese, the head of green initiatives at Infosys. “We are convinced that global warming and climate change are the biggest threats of the century.”
The company says its energy efficiency drive has translated to millions of dollars of savings.
Mahindra, a major Indian conglomerate which manufactures vehicle, is also taking a raft of initiatives to reduce its production of greenhouse gases, including increasing its use of renewable energy.
Mahindra says that it is the first Indian company to launch its own carbon pricing programme, a measure that has been adopted by a number of multinationals globally, including Google and Unilever.
“The more India invests on climate change today, the more developed it will be tomorrow,” says Zuzer Lucknowala, the director of Party Cruisers, one of the biggest wedding and events companies based in Mumbai. “Understanding climatic change is complex” for businesses, as companies try to focus on generating profits and grapple with other more direct economic factors.
“The Indian government will have a critical role to play in these challenges and providing a greener environment.”
Mr Rathod says that small and medium sized companies in particular are in industries that generate a lot of pollution and “need support and education” from the government to make changes.
“A lot of companies in India can't afford it and they need support when it comes to getting out of these old processes,” he says. “You need to have a solution for them.”
There have been some concerns that perhaps not enough is being done at all levels to address the issue.
In India's Union Budget, presented by finance minister Arun Jaitley on Thursday, climate change was something that was largely neglected, despite the emphasis of the Budget in helping India's rural and farming communities, ahead of general elections in 2019.
However, with awareness of the potential economic impact and the discussion around climate change rapidly gathering pace in India, calls for steps to address the issue are only set to increase, leading to mounting pressure for swift action by businesses and the government.
THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
Power: 420kW
Torque: 780Nm
Transmission: 8-speed automatic
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On sale: Available for preorder now
Profile of Whizkey
Date founded: 04 November 2017
Founders: Abdulaziz AlBlooshi and Harsh Hirani
Based: Dubai, UAE
Number of employees: 10
Sector: AI, software
Cashflow: Dh2.5 Million
Funding stage: Series A
UAE currency: the story behind the money in your pockets
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
THE LOWDOWN
Romeo Akbar Walter
Rating: 2/5 stars
Produced by: Dharma Productions, Azure Entertainment
Directed by: Robby Grewal
Cast: John Abraham, Mouni Roy, Jackie Shroff and Sikandar Kher
ACC 2019: The winners in full
Best Actress Maha Alemi, Sofia
Best Actor Mohamed Dhrif, Weldi
Best Screenplay Meryem Benm’Barek, Sofia
Best Documentary Of Fathers and Sons by Talal Derki
Best Film Yomeddine by Abu Bakr Shawky
Best Director Nadine Labaki, Capernaum
MATCH INFO
Rugby World Cup (all times UAE)
Final: England v South Africa, Saturday, 1pm
Most wanted allegations
- Benjamin Macann, 32: involvement in cocaine smuggling gang.
- Jack Mayle, 30: sold drugs from a phone line called the Flavour Quest.
- Callum Halpin, 27: over the 2018 murder of a rival drug dealer.
- Asim Naveed, 29: accused of being the leader of a gang that imported cocaine.
- Calvin Parris, 32: accused of buying cocaine from Naveed and selling it on.
- John James Jones, 31: allegedly stabbed two people causing serious injuries.
- Callum Michael Allan, 23: alleged drug dealing and assaulting an emergency worker.
- Dean Garforth, 29: part of a crime gang that sold drugs and guns.
- Joshua Dillon Hendry, 30: accused of trafficking heroin and crack cocain.
- Mark Francis Roberts, 28: grievous bodily harm after a bungled attempt to steal a £60,000 watch.
- James ‘Jamie’ Stevenson, 56: for arson and over the seizure of a tonne of cocaine.
- Nana Oppong, 41: shot a man eight times in a suspected gangland reprisal attack.
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
Test
Director: S Sashikanth
Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan
Star rating: 2/5
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
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Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
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Profile
Company: Justmop.com
Date started: December 2015
Founders: Kerem Kuyucu and Cagatay Ozcan
Sector: Technology and home services
Based: Jumeirah Lake Towers, Dubai
Size: 55 employees and 100,000 cleaning requests a month
Funding: The company’s investors include Collective Spark, Faith Capital Holding, Oak Capital, VentureFriends, and 500 Startups.
Elvis
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Monster Hunter: World
Capcom
PlayStation 4, Xbox One
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Remaining Fixtures
Wednesday: West Indies v Scotland
Thursday: UAE v Zimbabwe
Friday: Afghanistan v Ireland
Sunday: Final
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
VEZEETA PROFILE
Date started: 2012
Founder: Amir Barsoum
Based: Dubai, UAE
Sector: HealthTech / MedTech
Size: 300 employees
Funding: $22.6 million (as of September 2018)
Investors: Technology Development Fund, Silicon Badia, Beco Capital, Vostok New Ventures, Endeavour Catalyst, Crescent Enterprises’ CE-Ventures, Saudi Technology Ventures and IFC
Meydan racecard:
6.30pm: Handicap | US$135,000 (Dirt) | 1,400 metres
7.05pm: Handicap | $135,000 (Turf) | 1,200m
7.40pm: Dubai Millennium Stakes | Group 3 | $200,000 (T) | 2,000m
8.15pm: UAE Oaks | Group 3 | $250,000 (D) | 1,900m
8.50pm: Zabeel Mile | Group 2 | $250,000 (T) | 1,600m
9.20pm: Handicap | $135,000 (T) | 1,600m
FIXTURES
Saturday
5.30pm: Shabab Al Ahli v Al Wahda
5.30pm: Khorfakkan v Baniyas
8.15pm: Hatta v Ajman
8.15pm: Sharjah v Al Ain
Sunday
5.30pm: Kalba v Al Jazira
5.30pm: Fujairah v Al Dhafra
8.15pm: Al Nasr v Al Wasl
