CXOToday has engaged in an exclusive interview with Mr.Pankaj Pandey,COO, EKI Energy Services
∙ How does EKI Energy help businesses achieve net zero goals?
EKI Energy Services offers a wide range of solutions for businesses to strengthen their climate action and help them meet their carbon neutrality or net-zero goals. It includes carbon offsetting, carbon footprint management, CDP rating, sustainability, ESG, amid a lot more, in achieving net-zero for a company.
Scientifically if we have to restrict our global warming to 1.5 degrees by the end of this century, the globe as a whole, needs to attain a net zero emission level by 2050. Net Zero emission level means whatever greenhouse gas emission happening in the atmosphere due to human activities should be net off by the absorption capacity of the environment, primarily in forests, soils, oceans etc. Our human-induced emissions should be limited to that capacity so that the overall carbon content in the atmosphere should not further increase beyond 2050. Only then, by end of this century, we have a higher probability to limit the temperature change within 1.5 degrees.
We, EKI Energy Services Limited, a BSE-listed service provider of carbon asset management, provide consultancy/advisory services to corporates and facilitate them with knowledge on how to define their carbon footprint, how to address their plan of carbon neutrality through their own in-house measures and how to offset their residual emission by investing in high-value carbon credits. We are one of the largest players in the global market who source quality carbon credits for the corporates to use for their offsetting purpose.
We help companies to identify areas where they need to improve their environmental performance and can also help investors and customers to make informed decisions about who to support. Sustainability and ESG (Environmental, Social, and Governance) initiatives involve taking a broader approach to corporate responsibility, beyond just carbon emissions.
Carbon offsetting, carbon footprint service, CDP rating, sustainability, ESG, and other similar initiatives play a critical role in helping companies achieve net zero emissions.
Carbon offsetting involves investing in carbon reduction projects to offset the carbon emissions that a company generates. This can include activities as simple as planting trees to investing in multi-layered renewable energy projects and more. By offsetting their emissions, companies can help to reduce their overall carbon footprint and move towards net zero emissions.
Carbon footprint services help companies to understand and measure their carbon emissions across their operations, including in their supply chains. This information can be used to identify areas where emissions can be reduced and to set targets for emissions reductions.
These are just a few examples. By implementing initiatives like these, we help the companies and subsequently the planet, in steering towards a net-zero future to a wide range of industries. By taking a comprehensive approach to environmental and social responsibility, companies can reduce their overall impact on the environment and move towards a more sustainable future, in which we provide a helping hand.
∙ You have recently been elevated as a COO, what are going to be your new roles and responsibilities?
Along with some of the previous modes that I have been taking care of which includes heading community-based projects at EKI and business development team along with heading climate change study department, as an extension, I am also working towards expanding organizational reach and market share through strategic business planning and innovative business development concepts, business strategy formulation, planning, effective and efficient execution.
∙ How important is it for business to focus on climate action in today’s time?
The impact of climate change that we were warned about a couple of decades back are no longer a thing of future, it is happening now! Having witnessed more frequent wildfires, more intense storms, and extreme weather phenomena in Europe, the Americas, Asia, and island nations, we can easily say that we are living through our worst nightmare about which we were warned long ago.
Some took action, some are more rigorous now, but now it is less about an option and more about survival-based necessity. It is not just about the planet or humanity either anymore, the economic costs of climate change are much bigger (for example, damage to infrastructure, supply chains, etc following extreme weather events) than the costs that will go into climate action.
By taking action to reduce their emissions and transition towards more environment-friendly business models, companies can help to mitigate the impacts of climate change and protect their long-term viability.
There is also growing pressure from consumers, investors, and regulators for businesses to take action on climate change. Consumers are increasingly choosing to support companies that prioritize an eco-friendly growth, while investors are recognizing the financial risks associated with climate change (as mentioned above) and are demanding more transparency and action from the companies in which they invest. Regulators are also implementing policies and regulations aimed at reducing emissions and promoting environmentally-sustainable business practices.
Focusing on climate action is not only important for mitigating the risks of climate change, but it can also provide significant opportunities for businesses to innovate and differentiate themselves in a rapidly changing marketplace.
∙ Can you give an overview on the current carbon credits market and the future?
The carbon market is still growing exponentially as global climate action gathers steam and more companies and organisations commit to a net-zero future. According to Refinitiv, the value of traded global markets for carbon dioxide (CO2) permits reached a record 909 billion USD, as reported by Reuters. In comparison to the previous year, the markets’ value increased by 14%.
A major and quick reduction in GHG emissions is necessary as nations throughout the world pledge to make the 2020s a decade of serious climate action. New energy and technology can assist decrease emissions, but carbon credits are the only way to achieve meaningful reductions. Since it is the most practical route to integrating business sectors into global climate action, which is essential to achieve the enormous target of net-zero carbon emissions and limit global warming to 1.5 degrees Celsius, the demand for and trade of carbon credits will undoubtedly increase in the upcoming years.
Regarding India, rapidly developing nations like ours have historically been the sources of carbon offsets, which are primarily consumed in the northern hemisphere. India’s percentage of offset projects was 21% under the CDM framework, but it increased to more than 30% on the voluntary market.
The consumption of carbon credits has expanded dramatically in recent years as more and more corporations around the world, including India, have signed up for various voluntary standards (such as SBTA). However, the footprint is still pretty small, and there is still a lot of untapped potential.
∙ What jobs will this space create?
The market for carbon credits was estimated to be worth USD 760.28 billion in 2021 and is anticipated to increase at a CAGR of 21.14% from 2023 to 2028. As more businesses commit to going net-zero, the demand for carbon credits is anticipated to soar in the near future.
It is natural that along with the market the jobs will also grow. There will be a need of industry experts. Other new areas where career opportunities might emerge might be in the area of research and project management. There will be more openings for analysts, carbon footprinting experts, climate-tech experts, project verifiers and a lot more.
Sustainability is a great space to be in for any discerning individual as it accounts for a multi-dimensional evolution as employees positively impact climate action as part of their professional jobs.
As companies increasingly imbibe climate goals and ambitions as part of their business focus, the job market for sustainability will witness increasing growth. The increasing CSR focus of companies will also hasten this pace given the need for personnel specializing in sustainable development and natural resources management for these jobs.
Sustainability is certainly set to become a mainstream function and one of the most popular career choices amongst other conventional careers in India.
∙ what is your current market share in India and how did you achieve it?
EKI’s is the largest offsets originator in India, arguable with more than 3/4th market share. EKI’s market leadership has been built over the decades of pursuance, perseverance, quality and believes in the offsets mechanism as one of the most important tools to enable participations of Businessess and Industries in global efforts to limit the anthropogenic climate change. Even during the most uncertain period of carbon market during 2012 – 2016, EKI had made its efforst to provide quality solutions to its customers and never abandoned the market.
∙ What role will tech and AI play in climate action?
Technology, including artificial intelligence (AI), can play a crucial role in climate action by enabling more reliable, efficient and effective solutions and more importantly better implementation to address the challenges posed by climate change.
Particularly I can refer to the upcoming green hydrogen economy or CCU & CCUS, which is still in laboratories but it has the possibility of getting a good interest in the business community.
We should concentrate more on technologies that will facilitate easy recyclability so that the virgin material requirement can be reduced to an optimum level, that’s crucial even for the storage technology which is the backbone of renewable energy integration to the grid.
When we think of energy (electricty) storage, we think of batteries, but similar emphasis should be given to other storage technologies including Hydro (Pumped Storage), which is still have the largest share in globally installed storage capacity . India has a substantial operational hydropower capacity, with a little intervention hydropower can be augmented in a pump storage capacity, which may support grid level energy balance.
We should think about utilizing more and more indigenous technologies because the present discourse in battery technology dominated by lithium-ion, which is based on two basic materials Lithium and Cobalt. None of it has any operative source within India, nor the the country have required manufacturing base to meet its everincreasing demand. So, more and more technological development like Aluminium Air or Vanadium Flow technology will help somehow address the energy security of our country.
AI can help optimize energy consumption in buildings, factories, and transportation systems. For example, using AI to optimize building management systems can lead to significant energy savings. AI can help optimise the operation and maintenance of renewable energy sources such as wind and solar power, making them more efficient and reliable.
It can be used to develop more accurate climate models, which can help us better understand the impacts of climate change and inform policy decisions.
It can be used in carbon capture technologies, supply chain management, climate finance, sustainable agriculture by optimising crop yields while reducing water usage and other inputs, leading to more sustainable agriculture practices.
Technology can enable the development of carbon capture and storage systems or promote sustainable transportation options, such as electric vehicles and public transportation systems, reducing emissions associated with transportation.
It can enable a circular economy, where waste is minimized and resources are reused, reducing emissions associated with resource extraction and waste disposal.
Also technology is poised to play an important role in automization of monitoring verification and reporting (MVR) activities in Carbon offsets generations, enhancing the reliability and transperency of the offsets, thus improving the investors’ confidence.
Overall, technology and AI can play a critical role in enabling more efficient, effective, and sustainable solutions to address the challenges posed by climate change. But it is important to note that technology alone is not enough – it must be paired with policy, regulation, and social and behavioral changes to achieve meaningful progress towards a more sustainable future.
