CEOs of Indian Conglomerate Seeks Public Sector Help For Green Transition

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Top executives of commerce giants, TATA Sons, Macquarie Group, and HSBC at Bloomberg New Economy Forum, advised governments to become more active in the green transition by offering incentives for innovative technology development and taking steps towards cost reduction.

The Bloomberg forum took place in Singapore, days after the COP26 summit concluded in Glasgow, where India agreed on phasing down coal by 2030, in a deal to reduce the usage of fossil fuels for energy generation, as it remains to be the major culprit in raising global warming.

Shemara Wikramanayake, CEO of Macquarie, the world’s largest infrastructure investor and financial conglomerate, has encouraged governments to give additional incentives for green energy projects.

Adding more to her words, she stated that the governments may stimulate private sector participation by assisting in the funding and development of new technology, such as hydrogen and carbon capture, and then departing.

Natarajan Chandrasekaran, Tata Sons Chairman, brings out that, although the private sector can provide the investment and the capital available for the green transition, the aim cannot be achieved without the public sector participation in the funding of renewable resources.

Alluding to risks over which the private sector has little influence, such as shifting political environments, Noel Quinn, CEO, HSBC said, “The hardest move is that political first move because then you create the market conditions,”.

While Wikramanayake emphasized that decreasing the costs of creating and operating renewable energy will not take as long as developing solar and wind energy in the early stages of transitioning to renewables, the argument was supported by Quinn.

Quinn goes on saying that, “The weight of the world is now behind this, wind and solar – you could argue – led the way and the weight of the world was not behind wind and solar, but there is so much momentum amongst the private sector and the public sector,”.

Taking their words to action, Tata Sons and Macquarie are working together on the Climate Finance Leadership Initiative in India, which is partnered by Bloomberg.

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