Sustainable Business in India:

Potential and Challenges

R. Arun Prasath, Assistant Professor

Laboratory for Energy, Materials and Sustainability Centre for Green Energy Technology

Pondicherry University Puducherry – 605014

Email:raprasath.get@pondiuni.edu.in

Introduction (Motivation)

Scope for green business in India

Green Building in India

Green Energy in India

Firms in Green Business

Green Business Challenges

Conclusion

Outline

2/27

Motivation

3/27

Cataracts Cancer Burns

Cancer Aging

Smog

Motivation

4/27

Motivation

5/27

Rapid economic growth,

Looming environmental and social threats …….

Shrinking forests, species loss, fisheries collapse and freshwater stress….

The unlimited business opportunity to solve global problems… “BEING GREEN”

Motivation

Buzz………. • Environmental Management

• Corporate Social Responsibility

• Greening

• Industrial Ecology

• Stakeholder Management

• Life-Cycle Management

• Pollution Prevention (P2)

• Sustainable Development

• Design for Environment (DfE)

• Green Design

• Urban Reinvestment

• Redevelopment

• Waste Reduction

• Resource Productivity

• Sustainable Technology

• Radical Transactiveness

• Systems Thinking

• Corporate Governance

• Clean Technology

• Eco-Efficiency

• Eco-Effectiveness

• Biomimicry

• Triple Bottom Line (3P)

• Inclusive Capitalism

• Community Capitalism

• Corporate Citizenship

• Voluntary Regulation

• Civic Entrepreneurship

• Full Cost Accounting

• EMS

• Risk Management

• Leapfrog Technology

• Cradle to Cradle

• Restorative Technology

• Take-Back

• Transparency

Opportunity

7/27

Green Business • Green building

• Renewable energy (Solar/wind/SHP/bioenergy/fuel cell/clean coal/..)

• Energy conservation -Energy Efficiency & Audits

• Water-waste water management

• Sustainable design

• New product development

• Remanufacturing

• Recycling

•Transport ( ITS, LCTS, HT (diesel/biodiesel/bioethanol/fuel cell, CNG,)

• Environmental management

• Facility management

• Operations management

• Consulting (Toxic use reduction, Waste & Emission reduction,…)

• Microfinance

• Social venturing

• Rural development

• NGOs

• Development banks (IDBI, NABARD, NHB and SIDBI)

• Science and Technology (Life science, Nanotechnology, Green Chemistry, Biotech…)

• Clean Tech Start-Ups

• Eco-agriculture, Eco-tourism, Eco-fashion …….. 8/27

Rapid growth

-2002-2011 , GDP 8% and estimated same for 2012-2017

Hub for research and development for green solutions

- World’s third largest pool of scientists and engineers,

- Innovation in technology,

- Low-priced manufacturing and services,

(e.g) significant achievements in information technology,

professional services and communications

- Traditional knowledge and processes

- Green innovation and high amount of venture capital is flowing

(e.g) 3rd attractive country for renewable energy investment

Limited resources, social responsibility, competition,

cost reduction (recycle, reuse)

Scope in India

9/27

Consumers and employees are becoming increasingly conscious of

environmental issues

National policies to promote green business

- NAPCC, ECBC, energy conservation building code 30-40% reduction of

energy), Solar Mission, Clean Energy Funds, REC-renewable energy certificate &

energy efficiency certificate trading scheme, Corporate Social Responsibility Practices,

publicity through media TV such as ‘Save the Environment’, ‘light the billion’ NGOs

create awareness of being green

– Govt. support hybrid and electric vehicles, opt policies which reduce of

harmful goods- democratic, MUD promote green travel- bicycle scheme, shift towards

public transport, electric vehicles, buy back used electric products, biofuel blending…

International carbon markets (CDM) (carbon credits – wind power,

biomass, hydropower, use of waste heat, energy efficiency, biogas,

avoidance of GHGs, afforestation and reforestation, transportation, etc,),

CII, confederation of Indian industry encourages green business in all

sectors

The climate disclosure project WARNS of negative growth without GB!

Scope in India

10/27

Scope in India

Total (No. of Projects) 1578 ---through CDM

11/27

Green Building

Construction Industry growth rate in India 10% of India’s GDP.

-growing at a rate of 9.2% as against the world average of 5.5%

Indian Green Building Council (IGBC) has taken on the initiative of promoting

the Green Building concept

IGBC estimates 100 billion USD business by 2015

- ~120 green building products/technolgies (Fly ash cement to green roof)

Under IGBC there are 1,656 registered buildings for LEED rating

- already 253 certified building, 1.18 billion sq.ft Green building footprint.

Platinum rated

Infosys IT major Gold rated Terminal 3

IGIA, Delhi

Silver rated

Orient Craft Ltd., 12/27

Green Building

1,656

registered

253 certified

Building (2012)

Green Materials: name a few - Fly-ash cement, Fly-ash block, Recycled Aluminum,

Recycled steel, Recycled tiles, Low VOC paints, Bamboo based products, HFC

based high efficiency chillers, Building Controls, Green Roof, Recycled

wood, High albedo roof paints, PV, BIOGAS, WIND, certified cooling towers, etc., 13/27

Green Energy in India

Wind

Solar

Small Hydro

Biomass,

Bio – fuel

co - generation

Municipal Wastes

Hybrid systems Fuel

cell –

Green Power Generation in India

RES contribution as of now is about

~12% from total power 201 GW

Power deficit is around ~ 11 - 12%

400 million live without electricity in over

90,000 villages

Potential for green energy is huge

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Green Energy

India’s Solar Energy business Potential

Currently India produces only 46.16 MW via grid-connected and 72.5 MW

by off-grid (August 2011, MNRE)

The Indian Energy Portal estimates that if 10% of land used for solar energy

harvesting , the installed solar capacity would be at 8000 GW!

Jawaharlal Nehru National Solar Mission

Aimed to establish “Solar India”

~ 20GW power in 3 phases by 2022

~100GW by 2030 and to 200GW by

2050, and beyond!

Promote domestic content

2010 – 2011: modules made in India

2012 and beyond: both cells and

modules made in India

Achieve grid parity of solar power by

year 2022

Policy support and schemes by MNRE 15/27

Solar business potential

16/27

RE business /Jobs

Annual growth at 18% in the 11th plan (2007-2012) compared to 5% Non-RE.

Separate Ministry, Ministry of New and Renewable Energy (MNRE)

India aims for 50% renewable by 2050 from current 12%

RE/clean technology for energy business estimated to $135 billion by 2020

JNNSM targets – CII-MNRE estimated employment for solar PV/Thermal at

225,000 by the year 2022 at the rate of 10% growth

In wind sector 75,000 jobs by 2020 at the medium growth rate of 10%

In bioenergy sector it is estimated to have 561,000 by the year 2020

In SHP it is estimated to have 30,000 by 2020

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Lack of skilled and knowledgeable trainers

High capital costs,

Lack of primary data,

Lack of clarity on technologies- still evolving,

Inadequate infrastructure,

Lack of technological advancement,

Incentive challenges,

Difficulty in raising finance,

Technical feasibility to biogas from human excreta Vs social acceptability,

Lack of coherent long term policies/policy instruments,

Inadequate R&D sector, etc.

RE business challenges

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Top companies in green business

Nokia Corporation (Greenpeace ranking 3rd 2011)

--Clean up its products by eliminating hazardous substances.

--Take-back and recycle its products responsibly.

--Reduce the climate impacts of their operations and product

BSNL- Telecom sector goes green telecommunications

- 50% rural towers powered by renewable energy

- All products, equipments and services to be certified “ GP”

- Insist all tele-service providers to declare carbon footprints

-17% redction in carbon foot print by 2018-19

Indian Toy Industry- Toy Association of India

-Adopt non-toxic materials and to recycle toys

-Use nontoxic polymers such as HDPE, SAN, ABS

OORJA- part of BP

-Biomass stove fuel made of agriresidue pelletized

-Freedom from smoke and eco-friendly

Other companies- SBI –GREEN IT, Lead free paints from

Kansai NerolacSuzlon energy, Tata, Pepsi, Vodafone,

Hindustan unilever, TNPL, Wipro, HCL, Mahindra & Mahindra, 19/27

Green Business Challenges

New Concept -lack of awareness and skills

Lack of standard and public consensus -by eco-labeling

Cost Factor –R&D spend and promotional programme

Long term investment- Sustainability issue

Low penetration in rural India

Non cooperation--difficulties in convincing the stakeholders

Avoiding green Myopia (two objective environmental and customer satisfaction)

Inadequate and inappropriate policies- inadequate Govt support, credit

facilities, tax incentives, promotion of eco-labelling,

20/27

Ministry of Corporate Affairs, Govt of India-Voluntary guidelines for

green business

1: Businesses should conduct and govern themselves with Ethics, Transparency and

Accountability

2: Businesses should provide goods and services that are safe and contribute to

sustainability throughout their life cycle

3: Businesses should promote the wellbeing of all employees

4: Businesses should respect the interests of, and be responsive towards all stakeholders,

especially those who are disadvantaged, vulnerable and marginalized.

5: Businesses should respect and promote human rights

6: Business should respect, protect, and make efforts to restore the environment

7: Businesses, when engaged in influencing public and regulatory policy, should do so in a

responsible manner

8: Businesses should support inclusive growth and equitable development

9: Businesses should engage with and provide value to their customers and consumers in

a responsible manner

Principles for Green Business

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Pondicherry University GREEN BUSINESS!

Installed solar hot water systems in hostels

Installed ~160 solar street lights

Green mobility vehicles (battery operated ),

Energy efficient lighting systems (CFL/LEDs)

New upcoming buildings with GRIHA rating

Solar campus- Approved solar PVs of 100 KV power through rooftop grid-interactive inverters (~78,000 square meters, ~30% GE 2013-2017)

Institutional biogas plants using kitchen wastes (2200 Kg food waste to biogas) Water conservation/waste water management

My involvement in GE HPNs materials for Thin Film Solar cells, solar campus and biogas project, biodiesel from micro algae

PU green business/research

22/27

Pondicherry

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Pondicherry

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Pondicherry

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Pondicherry

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Pondicherry

Thank you very much… 27/27