One of the significant highlights of the budget is its emphasis on transforming agriculture to enhance productivity and climate resilience
By SATYAM VYAS
Founder – CEO of Climate Asia
The Budget 2024-2025, presented in July 2024, outlines a comprehensive plan to address India’s climate challenges while fostering sustainable development. We delve into the climate-centric aspects of the budget, highlighting key initiatives and allocations aimed at mitigating climate change and promoting environmental resilience.
One of the significant highlights of the budget is its emphasis on transforming agriculture to enhance productivity and climate resilience. The government plans to release 109 new high-yielding and climate-resilient varieties of 32 field and horticulture crops for cultivation by farmers. This move aims to bolster the agricultural sector against the adverse impacts of climate change.
Furthermore, the budget promotes natural farming, aiming to initiate 1 crore farmers across the country into sustainable agricultural practices within the next two years. This initiative will be supported by the establishment of 10,000 bio-input resource centres, focusing on the use of natural inputs and reducing dependence on chemical fertilizers and pesticides.
The budget outlines several initiatives to ensure energy security while facilitating the transition to cleaner energy sources. Key measures include:
- Bharat Small Reactors: The government plans to set up Bharat Small Modular Reactors and invest in new technologies for nuclear energy. This initiative aims to diversify India’s energy portfolio and reduce reliance on fossil fuels.
- Energy Audit and Storage: To facilitate the integration of renewable energy, the budget proposes investment-grade energy audits in 60 clusters, expanding to 100 clusters in the next phase. Additionally, a pumped storage policy will support the development of a full-scale 800 MW commercial plant through a joint venture between NTPC and BHEL.
- Incentives for Clean Energy Transition: Financial support will be provided for shifting micro and small industries to cleaner forms of energy. This includes promoting energy audits to enhance energy efficiency across various industrial sectors.
Infrastructure and Urban Development
The budget emphasizes sustainable urban development and infrastructure projects designed to improve environmental outcomes. Key initiatives include:
- Transit-Oriented Development: Plans for 14 large cities with populations above 30 lakhs focus on promoting public transportation and reducing urban congestion. This approach aims to create more sustainable urban environments.
- Water Management Projects: The budget encourages states to promote water supply, sewage treatment, and solid waste management projects in 100 large cities through bankable projects. This initiative seeks to address urban water security and sanitation challenges.
- PM Awas Yojana Urban 2.0: A significant investment of ₹10 lakh crore is allocated to address the housing needs of 1 crore urban poor and middle-class families. This initiative also includes policies for efficient and transparent rental housing markets, enhancing the availability of affordable housing options.
Research and Development: Innovation for Sustainability
The budget recognizes the importance of innovation and research in driving sustainable development. Key measures include:
- Anusandhan National Research Fund: This fund will support basic research and prototype development, with a focus on sustainable technologies and climate adaptation solutions.
- Private Sector-Driven Innovation: A financing pool of ₹1 lakh crore will be established to promote private sector-driven research and innovation at a commercial scale. This initiative aims to leverage private sector expertise in developing sustainable technologies.
Financial Mechanisms for Climate Action
To enhance the availability of capital for climate adaptation and mitigation, the budget introduces several financial mechanisms:
- Taxonomy for Climate Finance: This initiative aims to streamline investments related to climate adaptation and mitigation, ensuring that financial resources are effectively utilized to address climate challenges.
- FDI and Overseas Investments: Simplified regulations will facilitate Foreign Direct Investments (FDIs) and promote the use of the Indian Rupee for overseas investments, thereby supporting global climate finance initiatives.
Conclusion
The Budget 2024-2025 presents a forward-looking approach to addressing climate change while promoting sustainable development. By focusing on climate-resilient agriculture, clean energy transitions, sustainable urban development, and innovative research, the budget sets a comprehensive roadmap for India’s pursuit of a ‘Viksit Bharat’ (Developed India). These initiatives underscore the government’s commitment to environmental sustainability and resilience, paving the way for a greener and more sustainable future.
