General
Sri Lanka presidential debate: NPP fires back at SJB, asks for alternative dates
ECONOMYNEXT – Rising temperatures and extreme weather events due to climate change are impacting business, and companies need to address the irrelevance of existing business models, the Ceylon Chamber of Commerce said.
“Climate change is affecting all of us in a big way. More particularly, the business community and businesses,” Duminda Hulangamuwa, Chairman, Ceylon Chamber of Commerce said.
“There is a huge cost. It is imperative that we address the situation,” Hulangamuwa said announcing the Sri Lanka Climate Summit 2024 ‘Code Red – Climate Risks and Opportunities for Sri Lankan Businesses’.
Over three days, from May 7-9, the Summit to be held at Shangri La Colombo, will bring together businesses, government officials/policy makers and academia to discuss the risks of climate change, and the growth opportunities for Sri Lankan businesses.
Sri Lanka is among the top 10 countries in the world affected by climate change, Dr Ananda Mallawatantri, Advisor, Presidential Secretariat said. “Our competitiveness in the global marketplace is going down as a result of climate change. Insurance costs go up because the damages are high.
“We see the floods, droughts, landslides. Sea water coming into groundwater. One of the most damaging is the temperature rise.
“Because when the temperature increases the crop yield goes up. But at a certain point, the yield curve starts going down. In some of our crops, we are at that point. Increase in temperature will affect pollination.
“In the dairy sector, animals won’t eat after a certain temperature, humidity level. So you have to cool them. You have to add more energy to cool them. Provide more water. At the end of the day business costs get added. Procurement chains are upset.
“There are many, many ways climate change is impacting businesses. All these adds to the price, the raw material availability and then overall investment risk. When you are at a high risk like Sri Lanka, attracting investments need to be factored in. We see investors asking for climate insurance.”
Businesses need to take into account the changes taking place for them to be sustainable, Mallawatantri said.
Asia, in particular, faces an increased risk from a changing climate. “It extends from food security through to the survival of, the death of many businesses,” Dilhan Fernando, Chairman, Dilmah Ceylon Tea Company Plc said.
The cost of mitigation would be a fraction of the cost of confronting climate change, Fernando pointed out. “The cost of doing something would be a fraction of the cost of doing nothing.
“Look at our neighbors embracing the reality of a climate crisis; Singapore has set a 2030 green deadline – a pathway that will deliver jobs, economic growth. It is something that will help them to offset the growing marginalization and the irrelevance of existing business models.”
With ‘Code Red’, “we don’t want to create panic, we aim to offer solutions that are practical, pragmatic, tested, not in the US – but in India, in the region. With practical examples of what Sri Lanka can do,” he said, adding that rising temperatures were impacting the tastes of tea.
“As Sri Lanka adopts mitigation measures, we will find that whether tourism, whether tea or any other industry, we will find a competitive edge growing and aligning with some of the great economies that are doing that,” Mallawatantri said.
“There are a list of opportunities in between. Connecting different markets and the value chains, labeling standards. All these can be part of the climate solution.
Sri Lankan businesses can shift to climate smart dairy, or agriculture productivity, use of renewable energy, buildings with green standards, he said.
“When you do that, there are a lot of avenues opening up for businesses around the world. For example, EU has a bargaining channel for green growth [the European Green Deal], which can be a challenge for countries exporting to EU [like Sri Lanka].
“You have to measure the amount of renewable energy used in the products. Mention the river basin where your plant is located, so if the river basin is polluted, your benefits or taxes can be pro-rated.
“The brands who are importing from us are increasingly asking these conditions.”
Adaptation was also important to prepare companies, employees and clients to changes in climate. “Then if somebody gets affected they can bounce back. It may be apparel, fisheries, agriculture, transport. All these things will have different options in adaptation and mitigation.”
More board members sensitive to climate change were also needed in businesses. “We would like to see more and more board directors coming into the climate science and mainstream it in business,” Mallawatantri said.
“We need industry clusters to come together and businesses to work together. Businesses need to understand that it is no longer business as normal. We need new skills that will help business.
“Climate change is everyone’s business. None of the parties can solve it alone.” (Colombo/Apr25/2024)
