Question

Choose ONE of the three arguments given below and develop a coherent essay that critically evaluates it. Support your analysis with relevant claims, reasons and/or examples. The essay should not exceed 250 words.

Argument II. Rapid decarbonisation to fulfill India's Net Zero commitment will have business consequences.

Answer 1

Rapid decarbonisation to fulfill India’s Net Zero commitment will undoubtedly have significant business consequences, but these effects are neither uniformly negative nor avoidable. A critical evaluation of this argument requires examining both the short-term disruptions and the long-term economic opportunities associated with the transition.

In the short run, businesses, especially in energy-intensive sectors such as steel, cement, power generation, and transportation, will face higher compliance costs. Investments in cleaner technologies, renewable energy infrastructure, and carbon reporting systems can strain balance sheets, particularly for small and medium enterprises. Firms dependent on fossil fuels may also experience asset stranding and job displacement, creating transitional economic stress.

However, focusing only on these immediate costs overlooks the strategic benefits of rapid decarbonisation. The transition can stimulate innovation, open new markets, and enhance global competitiveness. Renewable energy, electric mobility, green hydrogen, and sustainable manufacturing are sectors with strong growth potential. Indian businesses that adapt early may gain first-mover advantages, attract green finance, and align with evolving global supply-chain standards, especially as carbon border taxes become more common.

Moreover, delaying decarbonisation carries its own business risks. Climate-related disruptions, regulatory uncertainty, and international trade barriers can impose far greater costs than planned transitions. Clear policy signals and phased implementation can help firms manage risks while encouraging innovation.

Thus, while rapid decarbonisation will reshape business models and impose transitional costs, it should be viewed less as a threat and more as an economic restructuring. With supportive policies and strategic adaptation, India’s Net Zero pathway can strengthen, rather than weaken, long-term business resilience.

Answer 2

Argument II: Rapid Decarbonization and Business Consequences 

Rapid decarbonization to meet India's Net Zero commitment will undoubtedly impact businesses. Transitioning from fossil fuels to renewable energy sources requires substantial investment, restructuring, and adaptation. Industries dependent on carbon-intensive processes must innovate or face obsolescence.

This shift could lead to short-term economic disruptions, including job losses and increased costs. However, it also presents opportunities for growth in green technologies and sustainable practices, potentially positioning businesses as leaders in the new economy.

Balancing these challenges and opportunities is crucial for a smooth transition to a sustainable future, emphasizing the need for strategic planning and support.