In the wake of India's resolute commitment to achieving net-zero carbon emissions by 2070 and fostering sustainable development, the forthcoming Budget 2024 carries immense significance for the green growth and technology sector. This pivotal moment comes at the intersection of environmental responsibility and technological innovation, shaping the nation's trajectory towards a greener and more sustainable future.
Following are some of the key expectations for this sector:
Funding for Green Initiatives:
Foremost among the expectations is a substantial allocation of funds for green initiatives. Initiatives like the Green Hydrogen Mission are anticipated to receive a financial boost. This mission is pivotal, not only for reducing carbon intensity but also for lessening dependence on fossil fuel imports.
The budget is expected to articulate a financial roadmap for such initiatives, aligning economic growth with environmental stewardship. The announcement of a ₹19,744-crore outlay for the Green Hydrogen Mission in 2023, aiming to produce 5 MMT of clean hydrogen fuel by 2030, positions the country as a potential major exporter.
However, concerns linger about whether this allocation is sufficient, especially considering the projected global demand of about 530 MT of green hydrogen by 2050, reiterating if budget 2024 could be the answer to these prayers.
Investment in Renewable Energy: Renewable energy is the linchpin for sustainable growth. Expectations are high for the budget to spotlight and support the development of renewable energy projects. The government's focus on increasing renewable energy capacity to 500 GW by 2030 is a critical stride.
Budget 2024 is awaited to unveil further details and allocate resources to expedite this transition towards cleaner and greener energy. Projections indicate India could witness a substantial addition of 25 GW in renewable energy capacity in 2024, requiring an investment of INR 137,500 crore (approximately USD 16.5 billion), highlighting the immense potential in this space.
Support for Green Tech Innovation: In tandem with green growth, the budget is anticipated to foster innovation in green technologies. This could involve substantial funding for the development and adoption of technologies such as battery energy storage systems with an estimated market size of $3.91 billion globally in 2024, and expected to reach $15.28 billion by 2029, highlighting its massive size and scope, and inter-state transmission systems for renewable energy grid integration.
Such initiatives not only spur technological advancements but also position India as a global player in the green tech landscape. While clean-techs, Electric vehicles (EV) linked techs, renewable energy linked technologies have been supported by government rapidly, we also need to focus on a larger population through green-techs which can create larger behavioural and adaptability impact. Budget needs to create funding and platform for such initiatives too.
Green Credit Programme Strengthening: The Green Credit Programme, designed to incentivise voluntary environmental actions, is likely to receive additional support. This could involve setting clearer thresholds and benchmarks for various activities, ensuring a more consistent and transparent assessment of environmental impact.
Strengthening this program will play a crucial role in encouraging sustainable practices across sectors. According to a report by IEEFA, India's green finance market is anticipated to hit $500 billion by 2025, driven by prevailing trends and market dynamics, which is why this growing segment needs to be addressed and recognized in the upcoming budget.
Circular Economy Initiatives: A circular economy is instrumental in minimising waste and maximising resource efficiency. The expectation from the budget is a robust allocation of resources for circular economy initiatives. According to projections, embracing a circular economy in India could yield a $624 billion annual benefit by 2050, accompanied by a 44% reduction in greenhouse gas emissions. Resource efficiency includes setting up waste-to-wealth plants, as discussed in our chat history, to manage organic waste and generate biogas
In essence, Budget 2024 holds the promise of catalysing India's transition towards sustainable and green growth. By addressing these expectations and incorporating the latest research figures, the government can lay the groundwork for a future where economic progress and environmental well-being coexist harmoniously. This is the last budget by the ruling party for this term ends and eyes of the nation are eagerly awaiting the green measures that will shape India's journey towards a more sustainable and resilient tomorrow.
—The author, Nidhi Mehra, is Co-founder, Myplan8, one of India’s Green-Tech Initiator brands that integrates employee engagement, ESG initiatives, and gamification to drive climate action. The views expressed are personal.
(Edited by : C H Unnikrishnan)
First Published: Jan 31, 2024 11:55 AM IST
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