The Union Budget for 2023–24 was presented by Nirmala Sitharaman, Minister of Finance, on February 1st, 2023.
India has committed to a variety of challenging goals as part of its 2022 Nationally Determined Contribution (NDC) goals, including reducing GDP emissions intensity by 45% from 2005 levels by 2030, expanding its renewable energy capacity to 500 GW by 2030, and reaching net zero status by 2070
The transition to a more sustainable energy and transportation system, the reversal of deforestation and land degradation, the reduction of agriculture’s carbon footprint, the reduction of food waste, and similar measures are some of the important initiatives for attaining these goals.
So, it is good to see “Green Growth” included as one of the seven goals for future growth in the Budget 2023–24. This helped shape the Indian narrative in favour of decarbonization and encouraged green energy as a significant component of disruptive transformations. A resilient future is envisioned by the desire to reach net zero emissions by the year 2070 and India’s apparent drive for Lifestyle for the Environment (LiFE) as the G20 chair
The budget’s increase in the capital investment outlay to INR 10 lakh crore has given tremendous encouragement for the development of assets, especially infrastructure. Such significant targeted investment by the government will boost the economy’s capacity for growth, create jobs, and draw investments from the private sector. The Primitive Vulnerable Tribal Communities Development Mission would get a budget of INR 15,000 crore in order to enhance the socio-economic circumstances of vulnerable tribal groups, including access to secure housing, clean drinking water, and education.
The elimination of taxes on lithiumion batteries will lower the cost of EVs and increase acceptance, and the Green Credit Program will encourage ecologically responsible behaviour on the part of businesses, people, and local authorities. These actions are anticipated to hasten the nation’s shift to a low-carbon economy, reduce reliance on fossil fuels, and ultimately result in the achievement of net zero emissions by 2070.
India must take the lead if the world is to address climate change and make sure we leave a greener and healthier planet for our children. The budget has set aside a sizable amount of INR 35,000 crore for net zero and energy transformation goals. In order to address the intermittent nature of renewable energy and promote hybrid renewable projects, it has also made explicit commitments for both battery storage and pumped storage projects.
While a specific framework for Pumped Storage Projects is promised, the budget has suggested viability gap funding for Battery Energy Storage Systems with a capacity of 4,000 MWH. Cost-effective technologies will guarantee a constant supply of renewable energy and bring grid stability. Additionally, this will encourage additional parties to launch renewable energy projects, assisting India in meeting its goal of 500 GW of renewable energy by 2030.
An encouraging step is the budgetary support of INR 20,700 crore for an interstate transmission link to facilitate the removal and grid integration of 13 GW of renewable energy from Ladakh.
Nirmala Sitharaman, the Union Finance Minister, emphasised sustainable development and a circular economy in India’s Union Budget 2023–24. Despite the nation’s pledge to cut its carbon emissions and reach net-zero emissions by 2070, the Ministry of Environment, Forests, and Climate Change (MoEFCC) only experienced a slight rise in funding
A new programme called GOBARDHAN with a budget of INR 10,000 crore was introduced by the minister. By constructing 500 “waste-to-wealth” facilities across the nation, including 200 compressed biogas (CBG) plants and 300 community-based plants, the programme intends to advance a circular economy. The objective is to turn waste into useful resources in order to promote sustainability and reduce the nation’s carbon impact.
In an effort to encourage the preservation of wetlands around the nation, the government has unveiled a brand-new programme called Amrit Dharohar. This programme, which will be put into action over the following three years, will inform the public on the special conservation importance of wetlands and promote the best possible use of them.
Mangroves are being planted by the government on salt pan sites and along the shoreline. The Mangrove Initiative for Shoreline Habitats & Tangible Incomes (MISHTI), as it is known, intends to protect and restore the mangrove environment while offering local populations means of subsistence.
In order to promote coastal shipping as a more energy-efficient means of transportation for both people and goods, the government has set out to do so. This will be accomplished via viability gap funding and the PublicPrivate Partnership (PPP) approach. Coastal shipping is promoted because it is thought to be a more cost- and environmentally-friendly means of transportation, and because it supports the government’s effort to encourage sustainable development.
The government allocated INR 19,700 crore to the National Green Hydrogen Mission, a project aiming at encouraging the use of hydrogen as a clean and renewable energy source in the nation. This will lessen reliance on imported fossil fuels and aid in the transition of the economy to one with a low carbon footprint. This mission could revolutionise India’s energy industry, lowering the nation’s reliance on fossil fuels and paving the way for a greener, more sustainable future.
The government would help 1 crore (100 million) farmers make the switch to natural (or chemical-balanced) farming during the course of the following three years, according to Budget 2023. In order to encourage states and Union Territories to promote alternative fertilisers and a balanced use of chemical fertilisers, it was declared in the budget that the PM Program for Restoration, Awareness, Nutrition, and Amelioration of mother earth (PM PRANAM) will be implemented.
Bio-Input Resource Centers were announced, urging farmers to practice natural farming. 10,000 Bio-Input Resource Centers will be established, resulting in the development of a countrywide distribution network for the production of pesticides and microfertilizers.
The reduction of chemical exposure for both farmers and customers is another advantage of natural farming. Artificial fertilisers and pesticides can be detrimental to the environment, wildlife, and public health. Natural farming forgoes their use, lowering exposure risks and fostering a more nutritious food system.
Natural farming can also lower the danger of crop failures since organic farmers use a variety of crops, which lowers the chance of crop failures brought on by pests and diseases.
Natural farming has advantages for both farmers and consumers as well as for the environment. Natural farming methods support biodiversity, minimise greenhouse gas emissions, and conserve soil and water resources. Natural farming lessens the risk of water contamination, which is a major concern in India, by using less synthetic chemicals.
This budget represents a significant first step in the Narendra Modi administration’s pursuit of Net Zero 2070. This has taken a while to happen. And it arrived suddenly. The plan is forward-looking, definite, and goaloriented. The budget places a big emphasis on sustainability and green growth. But, India must make sure that financial aid is focused on low-carbon technologies, identify the economic sectors most affected by environmental deterioration, and take action to address these issues.
While the aforementioned initiatives are undoubtedly positive moves, the current Budget does not include certain particular measures to promote private investment in climate funding. An initial corpus for extending carbon markets and for establishing a market liquidity-cum-stabilization fund for carbon markets, as well as incentives for potential investors in the carbon market, are a few representative examples. Investors in the nation’s recently launched sovereign green bonds may also qualify for tax and related regulatory concessions.
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