Navin Prakash Srivastava, the General Manager of Environment & Sustainability at SAIL-Bokaro Steel Plant (BSL) and IP Chairman of the Institution of Engineers India, Bokaro centre, underscores the imperative to rethink the cost dynamics associated with fossil fuel consumption.
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Navin Prakash Srivastava served as the keynote speaker at the Conference organised by the Institute of Cost Accountants of India, Dhanbad Sindri Branch, held at Koyla Nagar Community Centre on February 24, 2024. Attended by members and officials, the conference focused on green energy cost management and financial planning.
Experts delivered lectures and presented papers on various aspects of green energy. The event aimed to facilitate discussions on effective cost management strategies amidst the transition to sustainable energy sources.
Navin Prakash Srivastava said “unlike previous industrial revolutions where carbon emissions were considered incidental, the transition to green energy internalises these costs. This shift entails substantial investments in government subsidies, infrastructure, and carbon pricing schemes, affecting macroeconomic indicators like GDP and inflation.”
He pointed, the 2015 Paris Agreement, aiming to limit global temperature rise to 1.5 degrees Celsius, sets ambitious emission reduction targets. However, current progress falls short, highlighting the urgency for rapid changes across all sectors.
Transitioning away from fossil fuels requires significant capital expenditure, with estimated costs ranging from $100 trillion to $300 trillion by 2050, necessitating 2-8% of global GDP annually.
Srivastava emphasises the high costs of inaction, including escalating climate-induced damages. Additionally, the transition’s impact on human welfare extends beyond GDP metrics, encompassing factors like health, pollution, and inequality.
Examining the economic implications, the transition presents both challenges and opportunities. While increased investment could spur growth and innovation, it may also lead to inflationary pressures initially. Nonetheless, carbon taxes could generate revenue for public investment or tax reductions.
“Navigating this transition requires careful consideration of climate-related risks and uncertainties. Global cooperation is essential to mitigate adverse effects on trade and economic welfare, ensuring a smooth transition towards a sustainable future,” said Srivastava.
