India has set an aim of achieving net-zero emissions by 2070. The Prime Minister has also announced that India will raise its non-fossil energy capacity to 500 GW by 2030 while meeting 50% of its energy demand through renewables.
24 Jul 2024 | 10750 Views | By Radhika Dave
A focus on circular economy and sustainability was an overarching theme in the Budget 2024, with a continued focus on climate change mitigation techniques.
"We will adapt a taxonomy for climate finance for enhancing the availability of capital for climate adaption and mitigation. This will support the achievement ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
A focus on circular economy and sustainability was an overarching theme in the Budget 2024, with a continued focus on climate change mitigation techniques.
"We will adapt a taxonomy for climate finance for enhancing the availability of capital for climate adaption and mitigation. This will support the achievement of the country's climate commitments and green transition," the Finance Minister said in the Budget speech.
The Finance Minister said, in line with the announcement in the interim budget, PM Surya Ghar Muft Bijli Yojana has been launched to install rooftop solar plants to enable 1 crore households obtain free electricity up to 300 units every month. The scheme has generated remarkable response with more than 1.28 crore registrations and 14 lakh applications.
The budget proposed to exempt capital goods for manufacturing of solar panels.
Nuclear energy is expected to form a very significant part of the energy mix for Viksit Bharat.
A roadmap will also be set up for the 'hard to abate' industries to be formulated for transition from 'Perform, Achieve and Trade' mode to 'Indian Carbon Market' mode, the Budget noted, also making provisions for energy audit of traditional micro and small industries in 60 clusters, with financial support for shifting them to cleaner forms.
"The establishment of a 'Critical Mineral Mission' aims to oversee domestic production, recycling, and international acquisition of critical mineral assets. The mission will prioritise technology development, skilled labor, and an expanded producer responsibility framework, including Extended Producer Responsibility (EPR), which will benefit the e-waste and battery recycling sectors.
This well-planned budget reflects a strong commitment to supporting the critical minerals sector, which is crucial for advancing greener transformations," said Prassann Daphal, CEO, Recyclekaro.
Abhishek Agashe, Co-founder and CEO of recycling platform Elima said, "The 2024 budget is a significant leap towards a sustainable India. The focus on waste management and renewable energy, particularly through initiatives like “PM Surya Ghar Muft Bijli” for rooftop solar installations underscores our commitment to cleaner energy solutions. The government's plan to promote sewage treatment and solid waste management projects with 100 large cities through bankable projects is a crucial step towards improving urban infrastructure.
Additionally, the full exemption of custom duties on lithium and other critical minerals is a game-changer for the EV battery industry, accelerating our transition to electric vehicles, . These measures not only promote environmental sustainability but also drive innovation and growth in the renewable energy sector. Elima is eager to support and contribute to these transformative efforts and looking forward to spearhead as a leader to achieve the “Viksit Bharat 2047” mission and aid in powering the circular economy, which is a need of the hour."
Dr. Miniya Chatterji, Founding Director, Anant School for Climate Action, and CEO, Sustain Labs Paris, said, ""The government has laid its focus on energy security as one of the pillars in the Union Budget 2024. The new policy document on India's energy future is much awaited, and I expect it to include the plans to achieve rooftop solarisation, enhancing electric vehicle infrastructure, and promoting biodegradable polymers & bioplastics - as was announced in the interim budget in February."
The provision of financial support to micro and small industries for shifting to cleaner forms of energy is also a commendable move by the government. Another good move is the exemption of custom duty on capital goods for manufacturing of solar cells and panels. A taxonomy for climate finance, as planned by the government, will help improve the availability of funds for adapting to climate change and reduce greenhouse gas emissions.
Under urban development, the budget also talks about promoting water supply, sewage treatment and solid waste management projects and services for 100 large cities in India. This will set a benchmark for water and waste management practices which can then expand to tier-2 and tier-3 cities eventually," she noted.
"It is encouraging to note the various measures proposed by the government towards energy transition and for mitigating climate change," noted Vikram Gulati - Country Head and Executive Vice President, Corporate Affairs and Governance, Toyota Kirloskar Motor.