Union Budget 2023-24 Strengthens India's Pledge To Reach Its Net-Zero Goals
The budget reinforces India’s commitment to achieving its net-zero targets. As part of the efforts to reduce the carbon intensity of the Indian economy, meet clean energy targets, and provide large-scale green job opportunities, the budget announced several measures for “Green Growth” including initiatives related to green fuel, green mobility, green buildings, and green equipment. An outlay of Rs. 35,000 crore has been assigned for energy transition. A framework for the efficient use of energy across various sectors of the economy has also been laid down. The Budget 2023 has announced a significant push for the green energy sector.
The announcements are in line with India’s commitment to decarbonisation and its net zero ambition. The budget has announced the National Green Hydrogen Mission, with an outlay of Rs. 19,700 crore to facilitate the transition of the economy from fossil fuels to green power, with a target of 5 MMT of green hydrogen production by 2030. Green hydrogen can increasingly find application in refining, steel, and fertilizer production.
The funding for battery energy storage systems with a capacity of 4000 MWh will help support this transition with applications as standalone energy storage and storage integrated with renewable energy projects. Investments have been announced for renewable energy re-evacuation facilities. An important initiative is the announcement of the green credit program that will drive behavioural change across stakeholders including companies and individuals. The vehicle scrapping policy will provide further impetus to the efforts towards creating a green economy.
The standout feature of the budget is the fact that initiatives have been announced to impact and foster a green economy across sectors such as the PM program for Restoration, Awareness, Nourishment, and Amelioration of Mother Earth (PM-PRANAM) to promote alternative fertilizers and balanced use of chemical fertilizers, 500 new waste to wealth plans under the Govardhan scheme to promote a circular economy, mangrove Initiative for Shoreline Habitats and Tangible Incomes (MISHTI), Amrit Darohar scheme to encourage optimal use of wetlands, enhance eco-tourism and income generation, coastal shipping to be promoted as an energy efficient and lower cost mode of transport through the PPP model and the push towards adopting natural farming.
The budget has adopted a well-rounded view to drive decarbonisation across areas and involves relevant stakeholders to create sustainable change.
