Union Budget 2024-25 set blueprint for India’s New Green Deal

Union Budget 2024-25 set blueprint for India’s New Green Deal

Subject: Schemes

Sec: Environment

Context:

• India’s 2024-25 interim budget marks a significant shift towards green growth and sustainability, aligning with global efforts to combat climate change.

New Green Deal for India:

• The government, building on previous commitments such as the Net Zero by 2070 declaration made in Glasgow in 2021, has outlined a New Green Deal for India.
• This includes substantial investments in green energy, particularly offshore wind energy, with a viability gap funding for an initial capacity of 1 gigawatt to address growth challenges in the wind energy sector.
• The budget focuses on creating a market for clean fuels, including the mandatory blending of compressed biogas (CBG) in natural gas, and announces funding to overcome biomass aggregation challenges in the bio-energy industry.
• Additionally, it introduces a scheme for bio-manufacturing to provide eco-friendly alternatives to traditional materials and aims to advance coal gasification to reduce dependence on crude oil, thereby insulating India from petroleum price shocks.
• Investments in the National Green Hydrogen Mission, bioethanol production, and the expansion of clean transport options, such as electric vehicles (EVs) and rapid rail transit systems, underscore the government’s commitment to diversifying India’s fuel basket and reducing emissions.
• The budget also addresses the need for secure supply chains for critical minerals and technologies essential for a green economy, alongside initiatives for rooftop solarisation to support EV charging and reduce greenhouse gas emissions.
• The emphasis on a Blue economy, with measures for coastal resilience and sustainable aquaculture, highlights the comprehensive approach to integrating environmental sustainability with economic development.
• This green growth model, aimed at generating employment and positioning India as a leader in the global fight against climate change, represents a balanced approach to environmental and economic priorities.