The risk of existential viability of earth has to be put a step above the business viability, said Uday Kotak, MD and CEO of Kotak Mahindra Bank during a panel discussion at the B20 summit on Saturday. The theme of the session was “Financing the Climate Transition”.
Kotak said that business needs to go beyond capital which expects returns and opt for capital that is ready to take losses.
“This loss-bearing capital has to come from businesses around the planet which are making economic profits today,” he said during the session.
The Kotak Mahindra MD said, “If we prioritise existence over economic viability, initially money has to come from businesses in partnership with the governments. Govt has to provide loss bearing guarantees in addition to private capital.”
“The model the world needs to move to is gap funding provided by governments and supplemented by some of the businesses worldwide,” he added further.
Countries across the world need about USD 4.5 trillion over the next 7-10 years to finance their development goals, he had said on Thursday at the summit.
The Business 20 (B20) is the official G20 dialogue forum with the global business community. Established in 2010, B20 is among the most prominent engagement groups in G20, with companies and business organisations as participants.
Each year, the G20 Presidency appoints a B20 Chair (an eminent business leader from the G20 host country), who is supported by a B20 Sherpa and the B20 secretariat.
