Indian Budget Steps Towards A Greener & Climate Resilient Future
PM Surya Ghar Muft Bijli Yojana initiative aims to install rooftop solar plants for 1 crore households
The first budget of the newly elected Indian government, the world’s fifth-largest economy, has prioritised its national budget to address climate and sustainability issue, with COP-29 once again round the corner. The 2024 United Nations Climate Change Conference or Conference of the Parties of the UNFCCC, more commonly known as COP29, will be held from 11-22 Nov.2024, in Baku, Azerbaijan.
India announced plans that can help support its attempts to strengthen adaptation and manage loss and damage from extreme climate events. The Indian Budget outlines actions on water treatment, air quality, and recovery from floods. Establishment of a carbon market, taxonomy and transition pathways mark significant progress in planning towards Net Zero in 2070.
Dr Anjal Prakash, Associate Professor, Research, and Research Director at the Bharti Institute of Public Policy at ISB said that, “I welcome this budget because it has made significant allocations for some components of climate change. This will support in achieving the country’s climate commitments. These are important steps towards a greener and climate resilient future.”
PM Surya Ghar Muft Bijli Yojana initiative aims to install rooftop solar plants for 1 crore households, providing free electricity up to 300 units per month. This is expected to reduce reliance on non-renewable energy sources and promote renewable energy adoption.
The government plans to promote pumped storage projects to facilitate electricity storage and manage the variable nature of renewable energy, ensuring a more stable integration into the power grid.
The budget introduces the Critical Mineral Mission to enhance domestic production, recycling, and overseas acquisition of critical minerals necessary for various strategic sectors. Twenty-five critical minerals like lithium, copper, cobalt and rare earth elements to be fully exempt from customs duties. Building domestic capabilities to process and recycle will secure the supply chain for the domestic manufacturing ecosystem. India is emerging as an attractive destination for countries who want to diversify their imports. In accordance with its commitments of G20 last year.
The budget outlines plans to partner with the private sector in developing Bharat Small Reactors and Bharat Small Modular Reactors for development of Nuclear energy. A joint venture between NTPC and BHEL will set up an 800 MW commercial plant.
Using Advanced Ultra Super Critical, AUSC, technology, aiming for higher efficiency in thermal power generation.
Budgetary allocation for the National Green Hydrogen Mission increased to Rs 600 crore from the revised estimates of Rs 100 crore in 2023-24.
Financial support will be provided for energy audits and cleaner energy transitions in 60 clusters of traditional micro and small industries. This initiative aims to help these industries adopt more sustainable practices.
A roadmap for transitioning industries from energy efficiency targets to emission targets will be formulated. Transitioning these industries to the Indian Carbon Market mode will be implemented.
For a Climate-Resilient Agriculture the government will release 109 high-yielding, climate-resilient crop varieties.
The implementation of Digital Public Infrastructure, DPI, in agriculture will include a digital crop survey for Kharif in 400 districts and integration of 6 crore farmers and their lands into registries.
The government will develop a taxonomy for climate finance for the country’s climate commitments and green transition.
The budget includes provisions for flood management and reconstruction in states affected by floods, such as Bihar, Assam, Himachal Pradesh, Uttarakhand, and Sikkim. This is a very welcome step.
Faster Adoption and Manufacturing of, Hybrid and, Electric Vehicle in India, FAME, scheme.
Production Linked Incentive, PLI, Scheme for National Programme on Advanced Chemistry Cell, ACC, Battery Storage.
Aarti Khosla, Director, Climate Trends said The Budget 2024-25 reflects India’s commitment to sustainable development. However, what remains to be seen is how the role of nuclear power in India’s energy mix takes shape. All the elements of budget together form a significant push for a greener economy.
The writer of this article is Dr. Seema Javed, an environmentalist & a communications professional in the field of climate and energy
