Anand Mahindra: CARBON PRICING CAN UNLOCK CLEAN INNOVATION AND INVESTMENT
by Anand Mahindra, Chairman – Mahindra Group, @anandmahindra
If we continue on a business as usual path our planet will need five times its current carbon sequestration capacity for mankind to survive. This means we need to innovate beyond the current modus operandi.
The Mahindra Group is responding to this challenge. We are looking into low-carbon investments and developing electric vehicles, green buildings and solar energy systems – including almost 2.5MW of roof top solar at our own sites.
We are also reducing the impact of our manufacturing. We have cut down the energy intensity of vehicle production by more than 25%. We are moving towards becoming carbon neutral, with each business articulating a clear path towards this goal.
Increased carbon control has galvanized us towards innovation, and we plan to be part of a broader group of leading companies doing the same.
One of the most powerful tools that will speed the low-carbon transition for everyone is carbon pricing. Putting a price on carbon brings home the true cost of carbon on people’s health, the state of our economies and the future of our planet. We believe in this approach, which is why we have joined the Carbon Pricing Leaders to advocate for policy measures that help create an effective price on carbon.
The latest data from CDP show that more than 1000 companies globally currently have an internal price on carbon or are planning to implement one in the next two years. It is an unprecedented wave of support that policymakers and governments cannot ignore.
India is also starting to experiment with carbon pricing. We already have a high excise on crude and crude products, which is a de facto carbon tax.
The Paris agreement must acknowledge the effectiveness of carbon pricing in defining the best mechanisms for mitigation. A global deal with such indications will give countries the opportunity and the confidence to return home and define their own decarbonization paths.
We urge ministers meeting in Paris this week to accept no limits and deliver a smart, attainable climate agreement. We in the world of business are ready to innovate and invest, and we need a long term goals and better carbon pricing tools to unlock our full potential.