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Analyse the scope of green contracts as an institutional tool for Indian corporations to define India’s sustainable growth story.

Topic: Various efforts and initiatives for climate change by India and recent issues

6. Analyse the scope of green contracts as an institutional tool for Indian corporations to define India’s sustainable growth story. (250 words)

Reference:  The Hindu

Why the question:

The article presents an analysis on the scope of green contracts as an institutional tool for Indian corporations to define India’s sustainable growth story.

Key Demand of the question:

Discuss in detail the scope of green contracts as an institutional tool for Indian corporations to define India’s sustainable growth story.

Directive:

AnalyzeWhen asked to analyse, you have to examine methodically the structure or nature of the topic by separating it into component parts and present them as a whole in a summary.

Structure of the answer:

Introduction:

Start with what you understand by Green contracts.

Body:

A type of commercial contracts which mandate that contracting parties cut down greenhouse gas emissions at different stages of delivery of goods/services, including design, manufacturing, transportation, operations and waste disposal, as applicable to the industry.

Explain the need for green contracts: Demand for an institutional mechanism for sharing (Between consumers and corporations) responsibilities relating to the loss of resources and reduce greenhouse gas emissions.

Suggested stages of implementation: At the bidding stage: ‘Green tender’ prescribing ‘green qualifications’ can be considered when awarding the contract to a bidder.

Green qualifications can range from using a pre-defined percentage of ‘green energy’ in service delivery to adequate on-site waste management etc.

Contracting agreement: including detailed ‘green obligations’, which shall be legally binding and enforceable contractual clauses.

Discuss the challenges.

Conclusion:

While the massive levels of production, consumption and disposal of goods and services have their own set of benefits in a post-­industrial society, they have also slowed down the replenishment cycle of limited resources.  Corporations can contribute to cutting down emissions through the process of green contracting.