Keynote speaker at the Economics Conclave organised by the NMIMS Sarla Anil Modi School of Economics, Mr. Royston Braganza, suggests that the economic impact of climate change is not just a concern of the future

MUMBAI, India, March 13, 2024 -- India has been experiencing a significant economic impact due to climate change. According to a report by the World Bank, India is expected to suffer a significant economic impact due to climate change by the year 2050. It predicts that India's GDP will decrease by 2.8% as a result of the negative consequences of climate change. This could have far-reaching consequences for the country and its citizens, highlighting the urgent need for action to mitigate the effects of climate change.

According to Mr. Royston Braganza, CEO of Grameen Capital, Mumbai, the economic impact of climate change is not just a concern of the future. It is seen today in floods, landslides, and other natural disasters. He was the keynote speaker at the Economics Conclave organised by the NMIMS Sarla Anil Modi School of Economics, on February 27, 2024. "They say $ 14.2 trillion worth of property will be affected due to climate change. So, it is about creating resilient livelihoods and opportunities for climate migrants. Reports say $ 9 trillion will be needed to finance some of these challenges," he said, while discussing how microfinance may present a pathway to sustainable solutions. "The sustainable development goal gap of more than $ 4 trillion is not going to come from donor funding or philanthropy. It has to be mainstreamed," he added.

NMIMS has always been at the forefront of discourses on subjects that have a widespread societal impact. Aiming to address the pressing issue of climate and its economic repercussions in the Indian context, the conclave saw panel discussions by industry experts. Moderated by Mr. Rahul Prithiani, Senior Director & Global Head - Sustainability, Energy and Commodities, CRISIL, the panel included Mr. Manish Kumar, Head - ESG & CSR, ICICI Bank Limited; Mr. Pranav Garimella, Programme Manager, Climate Programme, WRI India; and Mr. Kalpesh Gada, Advisor, Climate Policy Initiative.

Welcoming the panelists, Prof. Amita Vaidya, Director of NMIMS Sarla Anil Modi School of Economics, said, "India is very vulnerable and the economic impact on the overall macro and social environment can be immense. RBI's Department of Economic and Policy Research says in its report on currency and finance 22–23 that the change due to rising temperatures and the changing pattern of monsoon in India could cost the Indian economy 2.8% of its GDP and depress the living standard of half of the population by 2050, in the absence of policies to mitigate the impact of climate change."

Mr. Rahul Prithiani set the tone for the discussion by highlighting the many measures taken by the Indian government like promoting the domestic production of value chain components of solar and electric vehicles, apart from having a strong agenda to promote green hydrogen. "The challenge is whether we will have enough funding," he said, adding, "SEBI has made it mandatory for businesses to report on responsibility and sustainability, in addition to normal financial reporting. With more and more data coming from companies, there will be more compliance. That is the first step to addressing some of the concerns, and there has been a marked change in corporate behaviour toward adopting sustainable practices."

Talking about the economic impact of climate change, Mr. Pranav Garimella spoke about their research suggesting that a 2 to 3.2 degree Celsius rise in average temperature is likely to have an impact of a 9% to 28% reduction in revenues in the agriculture sector. The overall economy will probably see about 1.8% of the GDP loss to about 2.8 %. "We have to decarbonise our economy by achieving our renewable targets by switching to EVs and climate resilient agriculture," he said.

Meanwhile, Mr. Manish Kumar spoke about the corporate sector playing a big role by aligning itself with the country's 2070 net zero goal. He said, "There are interim targets for 2030 too, and we have pledged that 50% of the energy consumed by the country will be through renewable sources. Banks are preparing themselves to support financial requirements to reach our nation's goals, and corporates are pledging more equity into green and sustainable projects."

Mr. Kalpesh Gada, while saying that it is not the planet but the humans and the myriad species that call it home, which are in danger, said, "The urgency of climate action demands sacrifices today for benefits we may not see immediately. The key to addressing climate change lies in transitioning to greener technology and cleaner energy sources. Funding is crucial for this transition and will require innovation and the maximisation of existing capital, while seeking new avenues of investment. I urge the government to come out with a clear taxonomy of green initiatives and would like to see the establishment of dedicated green financial institutions that can further drive progress."

About NMIMS

Circa 1981, Shri Vile Parle Kelavani Mandal (SVKM) established the Narsee Monjee Institute of Management Studies (NMIMS) to meet the burgeoning demand for Management Education across the nation. In 2003, NMIMS was declared a Deemed-to-be University under section 3 of the UGC Act 1956 and Category-I in Graded Autonomy Regulation, 2018 by UGC/MHRD. With a legacy of 42 years, Narsee Nonjee Institute of Management Studies (NMIMS) has grown to be not only one of the Top 10 B-Schools in India but also emerged as a multi- disciplinary and multi-centric University with eight campuses at Mumbai, Navi Mumbai, Indore, Shirpur, Dhule, Bengaluru, Hyderabad and Chandigarh. The University has seventeen constituent schools that include Management, Family Business Management, Engineering and Technology Management, Pharmacy, Architecture, Commerce, Economics, Law, Science, Liberal Arts, Design, Performing Arts, Mathematical Science, Agricultural Science, Hospitality Management, Branding and Advertising and Distance Learning. In addition to the seventeen constituent Schools, the University also has 13 Centres of Excellence. Today, NMIMS stands as the academic hub of choice, attracting over 26,000 full- time students and employing more than 850 full-time faculty members. This vibrant academic community continues to thrive and contribute significantly to India's educational landscape.

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