Source: The post is based on an article “Climate change as business: Crisis, opportunity and everything in between” published in The Business Standard on 17th September 2022.
Syllabus: GS 3 – Climate Change
News: There is a need to take steps towards climate change and adopt net zero emission targets as soon as possible.
This net zero target will not only have a positive impact on the climate but it will also change the economic activities of the nation.
How will the net zero goal change the economy?
It will help in transformational economic change through massive investment.
This change will be seen in almost every major industry and it will also give boost to businesses like solar panels and batteries amongst others.
For example, new hydrogen pipeline grids may supplement existing ones for gas and oil, and charging stations could be found everywhere.
Therefore, net zero target has led to the opportunity for new businesses.
How climate change has led to different business opportunities?
Reliance has asked the Gujarat government for 1,800 sq km of land in Kutch for its green energy project.
Public sector companies like Indian Oil and NTPC, Larsen & Toubro and ReNew Power, among others, are also in the race to catch the new opportunities.
Ola has already taken opportunity in e-scooters.
Investment by big companies now focuses on electric cars and scooters, electric traction for the railways, and scaling up of solar and wind energy farms.
Even though climate change brings new opportunities for businesses but there are many businesses that will suffer.
Businesses like travel and hospitality, office-wear market, cinema halls and commercial real estate are some of the businesses that will suffer because of the change in human activities.
How climate change will impact human activities?
Digitization, virtual communication and data revolution will help in decarbonizing human activities.
This will lead to a change in the traditional methods of communicating or living.
For example, daily travel will be changed with virtual meetings and offline education with online education, etc. These will have impacts on long-term lifestyle changes.