1. Shaping the Climate Agenda Challenges and opportunities 5 th Sustainable Environment Forum 2016 www.pwc.com Arvind Sharma Executive Director, Leader - Sustainability & Climate Change

2. PricewaterhouseCoopers Private Ltd Milestone events Slide 2 1992 1997 2007 20082009 Oct 2015 Dec 2015 Governments. across the world adopt the UNFCCC Kyoto Protocol sets targets for developed countries Bali Roadm ap mitigation, adaptation, technology and financing, action NAPCC is launched in India COP 15 Copenhagen Accord commits to limiting warming to 2°C INDCs commits to reducing carbon intensity by 30- 35% by 2030 COP 21 Paris Climate Summit

3. PricewaterhouseCoopers Private Ltd India’s INDC: key commitments and pledges Slide 3 175 GW of renewables by 2022, including 100 GW from solar PV and 60 GW from wind. Non-fossil fuel sources to make up 40% of installed capacity by 2030 Green Energy Corridor projects worth 380 billion INR (6 billion USD) have been launched to ensure distribution and evacuation of renewable energy. Nuclear energy target of 63 GW of installed capacity by the year 2032. The National Smart Grid Mission has been launched to bring efficiency in power supply network 144 old thermal stations have been assigned mandatory targets for improving energy efficiency The carbon tax increased fourfold to roughly 6 USD per tonne of CO2 98 of the 100 proposed Smart Cities have been chosen for grant support. Green India Mission to extend forest and tree cover to save 2.5–3 billion tonnes of CO2 equivalent by 2030

4. PricewaterhouseCoopers Private Ltd Some of the challenges that lie ahead… Access to climate finance Pressure to reduce consumption of cheap fossil fuels Rapid urbanisation Effective policies and implementation Promoting low-carbon technology Developing talent and building capacities Slide 4 Cost of meeting India’s climate change actions between now and 2030 ~ 2.5 trillion USD at 2014-15 prices (Source: INDC)

5. PricewaterhouseCoopers Private Ltd A universe of opportunity Slide 5 An opportunity the size of China’s : we estimate that the investment required for solar and wind is comparable to China’s at US$210bn. Around $40bn is required by 2017 to achieve the solar mission. Tax-free infrastructure bonds of $794mn for funding of renewable energy projects during the year 2015-16. Grants of $8bn, or $15m per smart city per year for the next five years 100smart cities. Private sector investment will be required to substantiate this funding. India has relaxed FDI rules as part of its Make in India campaign to encourage private sector funding for local manufacturing. Businesses need efficiency measures to reduce PAT exposure. Certificates bought to make up formissed targets in phase 1 are estimated to cost business $5.4bn. Funding of clean energy technologies may exceed $2bn which was provided in 2014 as a result of recycled revenues from the doubled carbon tax. $6 billion a year for forest conservation has been allocated.

6. PricewaterhouseCoopers Private Ltd Thinking ahead… Slide 6 Innovative business models Green product development Material & resource efficiency Managing ESG risks Policy advocacy With the ‘ green economy’ pegged for expansion, business leaders must consider the following broad aspects:

7. PricewaterhouseCoopers Private Ltd Where do we go from here….. Slide 7 ?