Is the mantra for India and China: growth at any cost??
November 19th, 2007 - by 2point6billion.com
I & C have been surviving on coal for decades now, with rising GDP figures and degrading environments. They together already account for 45 percent of world coal use, drive over four-fifths of the increase to 2030. But who thought about the term: country/corporate social responsibility/accountability? Don’t think either.
No we are not here to always go ga ga about I & C. We speak what’s for real.
If you have been following our Comparator, you would know the statistics. The two have actually been making it quite difficult to fight global warming by increasing their dependence on coal.
Extracts from Standard & Poor’s report:
The extent to which these rapidly developing nations will be able to shift away from coal-fired generation toward low-carbon energy investments is crucial to reducing greenhouse gas emissions worldwide.
Rob Morrison, head of the financial services company CLSA Asia-Pacific Markets, had this to say
A critical challenge to sustainable growth for India and China is both countries’ dependence on oil imports and coal, and a corresponding lack of initiatives to push for nonpolluting, renewable energy. One of the big issues is–growth at what price? Both countries are very dependent on imports for their energy requirements. So rising global prices are a key issue for them. Among the big economies of the region, we are the most bullish (esp. on banking, construction and real estate stocks) on India, adding that while China is attractive in the long-term, valuations are “excessive” at present. In India, prices have run up, but earnings have also expanded–averaging 25% to 27%, average earnings to continue to grow faster than 20% for the next fiscal year.
What do you think?
1. Is it high time that they be doing something to cure the situation and do you have some suggestions/alternatives
2. Are they somewhere correct in saying that the developed nations should be handling the situation first then they would…
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November 19th, 2007 at 5:38 pm
Sheetal,
Hopefully this is the start of an interesting discussion. IT is one that I am having more and more at All Roads and Crossroads lately, and there are some reports coming out that are addressing this.
Some things that I keep coming back to are:
1) China cannot continue to grow this fast for much longer. Their coal supply chain in China is so bad that they are now having to import coal from other nations
2) The rise in primary materials (metals, plastics, cement) etc are beginning to impact not just the domestic China economy, but are now filtering into the wider global economy
3) the environmental impact of the boom is becoming more and more evident to everyone in China
Where this argument is getting tricky, and where I fear the mudslinging may slow improvements down is that while the U.S. and E.U. call China out for being a polluter, it is in fact these countries/ regions that are driving a large part of China’s recent environmental problems through their outsourcing activities.
With that said, there are things going on in China that should be highlighted:
1) Worldwatch just released a report that essentially says China will meet its 2020 committment to reduce energy consumption while the US is going the other way.
2) China invests, manufacturers, and consumer more solar, wind, and other alternative energies that any other country
3) China is investing a lot in renewable fuel cells and clean cars
4) There are currently more than 30 cities in China with multiple line metros in planning, development, or operation.
In the end, I hope that there is a focus on developing and implementing solutions. China’s top leaders have shown a real commitment to it (unlike the biofuel focused US) and with China’s ability to manufacturer these technologies at a lower cost, it is sure to continue being the early adopter.
r
www.allroadsleadtochina.com
www.china-crossroads.com
November 22nd, 2007 at 9:22 am
You have some interesting comments. Also believe every country which has been through industrialisation does add to pollution woes - Europe had it’s share and the US has had it’s and continues to add to it. Can also agree that China is making concerted efforts while we need more to be done from the developed countries - on a global level. However, it is disheartening to see that india & china donot learn from the past industrialisations of Europe/US & focus on implementing technology/reforms which donot bring them the level of environment concerns as it did to the west.
I do believe the west has got away with it as the damage was limited to a large extent considering population bases of 100 - 150million in Europe and 200million in US (NOT present figures). China & India has a population of nearly 2.5 billion and the environment concerns here are massive for the industrialisation will have a sizeable impact & the quest for resources shall be a survival of the fittest!