Budget 2024: India’s Path to Sustainable Energy and Climate Resilience

India’s Budget 2024 has charted a promising path towards a sustainable future by prioritizing rooftop solar expansion, energy security, and climate-resilient agriculture. Finance Minister Nirmala Sitharaman, during her presentation, highlighted the critical role of energy transition in addressing climate change. She noted that the PM Surya Ghar Muft Bijli Yojana, aimed at installing rooftop solar panels in over 1 crore households, has received over 1.28 crore registrations and 14 lakh applications. This scheme offers up to 300 units of free electricity per month, demonstrating the government’s commitment to clean energy.

The Budget allocates ₹1.52 lakh crore for climate-resilient agriculture, with plans to review agricultural research and develop high-yielding, climate-resilient crop varieties. Sitharaman also announced the creation of a policy document for energy transition pathways and a roadmap to shift industries from energy efficiency to emission targets. Additionally, a new Pumped Storage Policy will support electricity storage and integration of renewable energy.

Experts praised the Budget for its focus on critical minerals, with a new Critical Mineral Mission proposing customs duty exemptions on 25 minerals and reduced duties on two others. This move is expected to boost the processing and availability of these essential minerals for sectors like electronics, defense, and telecommunications.

Dr. Arunabha Ghosh of the Council on Energy, Environment and Water (CEEW) highlighted the Budget’s comprehensive approach to clean energy, water treatment, air quality, and flood mitigation. He emphasized the need for loss prevention strategies, innovative business models, and a circular economy.

The Budget’s emphasis on developing a taxonomy for climate finance is also welcomed, as it promises to enhance capital availability for climate adaptation and mitigation. However, experts have noted the absence of specific timelines for implementing these measures and for developing carbon pricing mechanisms.

Overall, the Budget reflects India’s commitment to global climate leadership, focusing on clean technologies and renewable energy investments, which will enhance energy security and accelerate the energy transition.