Put environment-focused industrialization on the G20 agenda

Its presidency has been held by developing countries since 2022, when Indonesia took over the presidency of the group, followed by India in 2023. It will be with Brazil and South Africa for the next two years. It is an opportunity to raise important issues from the perspective of the Global South.

India’s presidency is guided by the motto of ‘Vasudhaiva Kutumbukam’, meaning ‘One Earth, One Family, One Future’, with an emphasis on ‘Lifestyle for Eco-Life’, which is inculcated by ethics and value systems. calls for a transformational change in lifestyle. There is a need to adopt eco-friendly practices called “Reduce, Reuse, Recycle” at all levels from individuals to institutions.

Unfortunately, the adoption of SDGs in 2015 has not resulted in any major change in consumption patterns. The material footprint has increased by 50% from 8.8MT per capita in 2000 to 12.2MT in 2017. This trend continues in developed countries even after the adoption of the SDGs. Material footprint consumption has increased from 25.6MT to 26.3MT per capita in high-income countries and from 1.4MT to 2MT in low-income countries, representing 15 times more consumption by high-income countries. On the production side, globally household material consumption per unit of GDP has remained the same between 2010 and 2017 at 1.16 kilograms per dollar, indicating no efficiency gains.

Therefore, merely adopting lifestyle changes will not be sufficient to change production and consumption behaviour. Changes in production systems, both agricultural and industrial, are essential. SDG 2 addresses the concern of sustainable agriculture. Unfortunately, SDG 9, which deals with industrialization, has no target to measure sustainable industrialization. Therefore, the environmental damage caused by the process of industrialization cannot be assessed.

High value addition from manufacturing is essential for increasing income in developing countries. Countries including China, which has a manufacturing share of 27.4% of GDP, South Korea at 25.64%, and Malaysia at 22%, have also shown high growth in GDP and personal disposable income. But most African countries get a small share of their GDP from manufacturing, even though they have the necessary raw materials, skilled manpower and space to set up manufacturing units. So they have a chance to increase manufacturing.

Industrialization puts stress on bio-networks and natural systems. It affects water, air, soil, biodiversity and health. Along with prosperity, industrialization brings many problems.

Many studies around the world have confirmed its adverse consequences on ecology. Unplanned industrialization has serious ecological consequences such as over-exploitation of groundwater, contamination of water with hazardous chemicals, and high levels of greenhouse gas (GHG) emissions.

There has been a lot of discussion on the need for environmentally sensitive industrialization. However, this alone will not bring about the necessary change. Policies should be environment-centric, with stringent norms and effective implementation. It calls for the development of an integrated framework for eco-conscious industrialisation, which will help conserve natural resources and provide a sustainable boost to the economy. Some of the elements for such a framework may include strategic planning, adoption of 6R principles—reduce industrialization, reuse, recycle, recover, redesign and rethink, making an appropriate technology choice, among others. Strategic planning can include all aspects related to technological, ecological, socio-cultural and economic factors affecting industrialization.

The choice of technology plays an important role and should be such that generates minimum waste and emits minimum noxious gases. Another important issue is the type of energy used. Renewable sources of energy should be sought so that the consumption of coal based energy is reduced. Recycling of waste is another important priority which can be tackled by setting up a recycling industry simultaneously. The system of treatment of wastes has to ensure extraction of maximum useful material and its reuse. Treatment of GHG is also important.

The current top-down approach to industrialization needs to be changed to ensure involvement of local governments from the planning stage to implementation. Often, international trade determines industrialization. Local government, including local leadership who better understand the fragility of ecosystems, can lead to better eco-focused industrial planning and implementation if engaged in the strategic planning process.

The balance between protecting the ecology while ensuring rapid economic development can be achieved without causing much damage to the environment through proper planning and involvement of local leadership. This is essential for sustained high economic growth.

The G20 should set up a working group to develop an integrated framework for eco-focused industrialisation.

Ashish Kumar is Senior Fellow at NITI Aayog and Visiting Professor at the Institute for Studies in Industrial Development. These are the personal views of the author.

Updated: June 05, 2023, 11:53 PM IST