Kotak Mahindra Bank Chairman Uday Kotak on Saturday pitched for businesses to finance climate transition with the government supporting them in terms of gap-funding. Stating that the risk of existential viability of the Earth has to be kept above the business viability, Kotak said businesses need to go beyond capital which expects returns and opt for capital that is ready to take losses.
Countries worldwide require approximately $4.5 trillion in the next 7-10 years to support their development goals, said Uday Kotak, Chair of B20 India Task Force on Financing for Global Economic Recovery. The task force recommends the establishment of a global acceleration fund where businesses would contribute 0.2% of their profits toward social development objectives. Kotak also suggests that Indian companies should allocate 0.2% of their overall CSR contributions to the global acceleration fund.
Uday Kotak says out of the 2% net profit for CSR in India, 0.2 per cent could be a contribution to that global fund which every country should find a way to contribute to from businesses
This is a key recommendation of the B20 India Task Force on Financing for Global Economic Recovery that Kotak chairs. The recommendations of the B20 taskforces would be submitted to the G20.
“The money required in the next 7-10 years is about USD 4.5 trillion (to meet the priorities of development goals),” Kotak said at the B20 Summit India 2023