India, already at the top of Asia, can benefit from “ green patents ” to avoid climate threats and unemployment
India is vulnerable to almost all threats from climate change, even the giant water trail that India tries to avoid in every hot season.
He has been responsible enough to recognize the danger ahead and at least tries to devise environmentally friendly methods to repair the bad deeds he has done to his immediate environment.
However, in this way, there is a glaring way for the business opportunities emanating from such a “green economy transition”.
India, with its potential and willingness to grow, can upgrade its skills and harness the growing demand for clean technologies to build industries and reap much of the benefits that come with it.
This “green marathon“Open avenues for the promotion and export of clean technologies and access international markets based on its exposure.
And apparently, countries that continue to focus on fossil fuels will lose out in the international market.
Any early attempt can provide an advantage in terms of the capital and expertise needed to develop the industry, and any possible innovation in these areas can also lead to better adaptation in domestic markets.
In recent years of “green importance”, China has already established itself in the era of affordable photovoltaic cells, Europe is a constant innovator in wind energy while Japan and the United States dominate vehicles electric.
India’s high stature in green sectors:
To our surprise, India already has an established industry in low carbon environmental goods and services (LCEGS).
LCEGS provides solutions regarding air, noise and sea pollution, contamination of resources, environmental analysis and advice, waste management and recycling.
It widened to cover renewable energy technologies such as hydropower, wave and tidal energy, geothermal, wind and biomass, and emerging low-carbon activities such as reducing emissions from the transport and energy sectors. construction, nuclear power, energy management, carbon capture and storage (CCS) and even carbon finance.
According to a UK government report: “In the LCEGS market of 3,046 billion in 2007-08, low-carbon companies represent almost half of the market, or 1,449 billion. Renewable energies represent 31% or 940 billion, and traditional environmental activities represent the remaining 21% or 657 billion. “
India has a greater affinity at home for green goods and services and even hopes for a green boom in the years to come.
Even the Smart cities mission may be the public sector engine to increase investment in smart technologies in the LCEGS sector, which could potentially include modernization of public sector buildings, smart energy grids and broadband access, electric vehicle charging infrastructure, installation of district heating networks, on-site renewable energy production and involvement in general adaptation / mitigation initiatives.
As a country, it cradles a considerable population capable of using economies of scale, a greater capital of knowledge to innovate and prosper, an industrial outlook to welcome the transition using alternatives and a political will to help its public to cope with the effects of using these green alternatives.
However, some reforms are indeed necessary to give impetus to the large-scale development of the sector and industry concerned.
India’s unrealized role in the world’s green potential:
According to an economic study: “India is on track to meet its NDCs (targets). The survey further highlights the significant leap in the renewable energy sector in India, i.e. 83 GW targets are being met against the 175 GW renewable energy target in part of one of the largest renewable energy expansion programs in the world.. “
True to our NDC for the Paris Agreement, the country is planning one of the largest green energy projects that hopes to generate 20,000 megawatts (MW) of solar power and 3,000 MW of wind power.
He controls Third LCEGS turnover in Asia with 6% global market share of 3,046 billion and even becomes the second highest in terms of proportion of GDP.
However, green technology may not be cheaper, but it is undoubtedly labor intensive. The investment or incentive offered in these technologies can help increase employment opportunities for our abundant workforce.
In other words, the more green technology operations we undertake, the more they dare provide even more jobs necessary for long-term economic development, especially for the country which has a double digit unemployment rate.
The above mentioned report predicts 45% growth in the environmental economy over the next eight years, driven by emerging low-carbon technologies and consequently employment is expected to increase by 400,000 jobs during the same period.
For the territorial arena, we will need robust and reformed innovation systems as well as increased public access to green demands.
But for international markets, where there is fierce competition for any form of commerce, we need to resurrect our intellectual property systems or our methods of patenting.
Green patents guide us to greater opportunities:
Green patents are the patents held for technologies relating to waste management, wind energy, geothermal energy, solar energy, tidal energy and biomass etc. or simply, legal protection for anything that has an environmental benefit.
And the classification of these patents is based on the International Patent Classification Code.
The “rapid tracking” of these patent programs has already been launched in various countries, such as Australia, Japan, United States, Canada, United Kingdom, Korea, Israel, Brazil and China.
Stronger intellectual property rights in green technologies allow scalability, allow the creation, adaptation and distribution of green technologies, greater security of trade secrets and, consequently, better diffusion of these technologies in countries. other adopting countries.
It is even observed that if the protection of the IPs of green technologies is weakened, innovation capital can be diverted elsewhere, which is certainly not an option because non-renewable resources are limited and climate change is a reality.
India and the green sector:
Thanks to its patent numbers are dark, that is to say that only 12,000 in a country of 1.37 billion inhabitants and that its share of GDP in R&D spending is only 0.7% , India’s high-value green technology patents account for 13% of its entire portfolio, corresponds to the world average.
Although India is not a major inventor of green technologies, it is seeing an increase in the processing of its green patents.
In 2013, the country deposited around 1140 high-value green patents which climbed to 2,505 green patents in 2017, while Brazil only filed 300 and South Africa 150. China, already leader in the race, filed 16,000.
With these reforms and innovations in place, India’s larger goal of achieving 20 gigawatt solar power by 2022 as part of the National Solar Mission is no longer ambitious, but an ongoing reality. production.
With constant efforts, we could even become an invincible recipient of investments and foreign direct investments for the valuation of our green market by 2025.
Indian companies and green investment:
According to pwc: “A green strategy is essential to ensure coordination between policy makers, regulators, institutional investors and consumers. Knowledge, understanding and availability of green investment options versus alternatives will be essential. “.
Indian companies, however, face a challenge regarding the cost of hedging currency risk which is around 3-4%, for which a dedicated fund can be created by the Indian government.
It can dare to provide hedging services at lower cost or reduce the risk of the underlying investments through partial guarantees.
With the advent of climate threats, all eyes are on businesses to make sustainable choices.
DJSI 2019 included 12 Indian companies in its list as Havells India and Godrej, which aims to ensure that its packaging materials are 100% recyclable, reusable, recoverable or compostable by FY2025.
UltraTech ranked among the top 10 companies worldwide in the “ building materials ” industry sector, which has incorporated a low carbon strategy to meet SDG 13 (climate change).
According to Barclays Bank India: “From 2013 to 2014, when global ESG emissions were close to $ 30 billion, they have now grown to almost $ 500 billion by the end of 2020. “
“Companies are now much more aware, think about their business goals from a sustainability perspective and also stick to specific goals ”.
Indian companies tend to raise capital green bonds and Masala bonds.
In May 2021, a dozen Indian companies issued sustainable bonds (including 7 green bonds) and raised around $ 4.96 billion.
Examples include ReNew Power, Greenko, Hero Future Energies, Continuum Green Energy Pvt Ltd, Shriram Transport Finance, and UltraTech Cement Ltd.
The amount raised over the past four and a half months has been double what Indian companies raised last year.
These bonds have an advantage for borrowers because they are waived at a cheaper rate compared to normal bonds (appreciation instead of working for the environment).
“Historically, many renewable companies have tapped into the green bond market and made repeat issues over the past five years.», Fitch Ratings Projections.
Even Moody’s expects a record 650 billion dollars of global sustainable bond issues in 2021.
India can certainly choose to run in the race because it has the right ingredients to foster the world’s greener work house. It just needs to reinvigorate its existing institutions with the changing dynamics of the world just so that another golden opportunity is not lost forever.