The Indian Chamber of Commerce has suggested greater government efforts in establishing a long-term National Carbon budgeting for each industrial sector and introduction of a National Climate Change Insurance Fund.
Releasing the findings of its survey, 'Business risks and Opportunities of Climate Change' in kolkata, the Chamber observed that the government must gear up towards establishing a well- defined long-term National Carbon Budgeting for the industrial sector with medium-term benchmarks set out for commitment period.
The survey suggested introduction of a National Climate Change Insurance Fund with a cap on paid losses, introduction of a strict vehicle emission standard and a low carbon-fuel standard to reduce fuel emission intensity.
"Government may seek international cooperation to develop decentralised renewable energy systems to meet the needs of the population lacking access to modern clean energy services," the ICC report said.
It suggested that the government develop adaptation programmes to facilitate 'climate-proofing' of existing investments and planning of infrastructural investments against incremental risks.
Listing sectors which might suffer due to climate changes, the report said hydro-electric power generation would receive a setback, while it would have an adverse impact on food storage business and there was a threat of vector-borne diseases impairing the workforce.
The ICC conducted the first of its kind survey of 49 industries in the eastern region to assess the level of industrial awareness on climate change and understanding of the risks and opportunities.
It said that 97 per cent of the respondents believed that climate change would affect their business, 83 per cent had initiated action to mitigate and adapt to climate change, 76 per cent were aware of emission benchmark for products, and 69 per cent had a dedicated environment cell.
The Chamber suggested that the insurance sector play a major role in offering financial incentives for businesses which have considered "climate-proofing" while setting up plants.
"Organisations must conduct greenhouse gas accounting and measure emissions associated with both use and disposal of the products," the ICC report said.
Businesses must equip their technology to reduce water use and to recycle used water in the system. "Rainwater harvesting and destination should be practiced to ensure sustainable usage of water," the report said.