In a major step towards developing technology that helps reduce future emissions, Mahindra & Mahindra on Friday, announced an internal Carbon Price of $10 per ton of carbon emitted and said that it will invest in the same for developing low carbon technologies.
While it became the first Indian firm to do so, the company’s carbon price is in line with its commitment to reduce its Green House Gas emissions by 25 per cent over the next three years.
Carbon Price is similar to a charge, which once paid, provides a company with the right to emit one tonne of CO2 into the atmosphere. It is an internationally recognised business tool that enables companies to create resources which are invested in low carbon technologies, which help reduce future emissions and lower operating costs.
Pawan Goenka, ED, M&M said that he expects this will encourage others to follow suit. “We have reduced our carbon emissions over the years and this new Carbon Price will help accelerate innovation and drive our investments in energy efficient and renewable technologies. We hope this encourages other firms to take action at a time when India’s emissions are set to rise in a BAU scenario, in step with the country’s growth,” he said.
Tom Kerr, director, Carbon Pricing Leadership Coalition, The World Bank Group, said that this comes as an example of how smart companies are taking advantage of low-carbon investment opportunities while managing carbon risk.
While the company has now adopted Carbon Pricing, Mahindra started reporting its emissions from FY08 and over the last eight years the company has reduced its carbon emissions by 47 per cent and its energy use by 32 per cent. It has invested in developing India’s first and only electric car, the E2O. Other initiatives include a recent investment in 4.2 MW of wind power and the use of Magnetic induction, LED lighting technology and waste heat recovery systems at its plants.