With its focus on expanding rooftop solar, energy security, and climate-resilient agriculture, Budget 2024 has set India on the path to a sustainable economy, said experts, highlighting that it demonstrates the country’s commitment to climate action and clean energy.
“Energy transition is critical in the fight against climate change,” said finance minister Nirmala Sitharaman while presenting the Budget in Parliament on Tuesday.
The minister said the government’s renewable energy scheme, PM Surya Ghar Muft Bijli Yojana, has already received more than 1.28 crore registrations and 14 lakh applications. The scheme launched early this year aims to install rooftop solar plants over 1 crore households across the country. This also allows them to obtain free electricity for up to 300 units every month.
“The Budget reflects India’s commitment to sustainable development with significant allocations like ₹1.52 lakh crore for climate-resilient agriculture and initiatives for rooftop solar. The focus on critical minerals, a policy for pumped storage projects, and the decision to develop a policy document on energy transition pathways is laudable too. However, what remains to be seen is how the role of nuclear power in India’s energy mix takes shape,” said Aarti Khosla, Director, Climate Trends.
CLIMATE FINANCE & ENERGY TRANSITION
Experts also welcomed the government’s announcement for developing a taxonomy for climate finance, which had been a long-pending demand from investors and industry. This will enhance the availability of capital for climate adaptation, as well as mitigation. However, the statement lacks timelines not only for developing taxonomy but also for carbon pricing mechanisms and strategies for mobilizing climate finance for adaptation and mitigation efforts in vulnerable communities, pointed out experts.
Sitharaman announced that the government will bring out a policy document on the appropriate energy transition pathways, and formulate a roadmap for moving the “hard to abate” industries from “energy efficiency targets” to “emission targets”. A Pumped Storage Policy is also on the anvil to promote pumped storage projects for electricity storage and smooth integration of the growing share of renewable energy in the power mix.
CLIMATE-RESILIENT AGRICULTURE, GREEN ECONOMY
The Budget also announced a comprehensive review of the agriculture research setup to bring focus on raising productivity and developing climate-resilient varieties. Sitharaman said funding will be provided in challenge mode and domain experts both from the government and outside will oversee the conduct of the research. As many as 109 new high-yielding and climate-resilient varieties of 32 field and horticulture crops will be released for cultivation by farmers, she added.
Dr Arunabha Ghosh, CEO, Council on Energy, Environment and Water (CEEW), said the Budget addresses India’s clean energy ambitions and also outlines actions on water treatment, air quality, and recovery from riverine floods. The emphasis on flood mitigation in vulnerable states like Sikkim, Assam, Bihar, Uttarakhand, and Himachal Pradesh is a welcome step, he said. “Each of these provisions—from clean energy markets, to green industry, to quality of life—can benefit from a focus on loss prevention from climate events, promoting new business models for households and small industry, a circular economy of resources, and innovative financing beyond budgetary support,” added Ghosh.
CRITICAL MINERAL MISSION
Experts also welcomed the announcement of a Critical Mineral Mission and proposed to fully exempt customs duties on 25 critical minerals and reduce Basic Customs Duty (BCD) on two of them to provide a fillip to the processing and refining of such minerals and help secure their availability for these strategic and important sectors.
“Critical minerals are building blocks for energy transition and for other strategic sectors such as electronics, defence, and telecommunications. Through this Budget announcement, India has also started to take action on its commitments for G20 last year to build reliable, diversified, sustainable, and responsible supply chains of critical minerals,” said Rishabh Jain, Senior Programme Lead, CEEW.
THUMBS-UP FROM WIND SECTOR
The Budget received a thumbs-up from the wind sector as well, whose representatives said the announcements align well with the priorities of the industry for the current fiscal year – including the creation of jobs and the growth of the manufacturing sector, in particular, MSMEs.
“The recent Budget demonstrates India’s global leadership in combating climate change by prioritizing the development of clean technologies and fostering a conducive environment for renewable energy investments. This will not only enhance India’s energy security but also expedite the energy transition with its forward-thinking approach,” said Girish Tanti, Chairman, Global Wind Energy Council, India.