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India On Track to Meet Clean Energy Targets – Experts

For the second consecutive year, the Union budget announced green measures to ensure India is on course to do its bit in reducing emissions by 2070. This has enthused climate experts.

 

Union finance minister Nirmala Sitharaman’s budget listed green growth as one of the seven priorities of the government and allocated Rs. 350 billion to achieve clean energy transition and net-zero emissions by 2070.

 

Being the last budget before national elections in 2024 and the upcoming G20 presidency, it has consolidated the government’s position on energy and climate, said Balasubramanian Viswanathan, policy advisor at International Institute for Sustainable Development (IISD), “This is a welcome move as India tries to rapidly increase the share of renewables in the grid. The finance minister also pledged Rs. 350 billion for net zero and energy transition but an equivalent support of Rs. 300 billion as capital support for oil-marketing companies and Rs. 50 billion for strategic petroleum reserves was found. While controlling energy prices and ensuring energy security is critical, India must ensure that financial support is directed towards low carbon technologies.”

 

According to Madhav Pai, interim CEO of World Resources Institute (WRI) India, the inclusion of green growth offers encouragement for the environmental sector. The budget also outlays Rs. 197 billion for the National Green Hydrogen Mission which, as per experts, must translate into a sharp growth in utility-scale power generation capacities.

 

“Renewable energy constitutes over 50 per cent of the green hydrogen cost and a further decline in clean power costs shall prove beneficial for the emerging green hydrogen economy,” said Martand Shardul, policy director at Global Wind Energy Council (GWEC).

 

On the country’s progress since last year’s budget, environmental experts believe that the government has taken efforts towards its commitments. “The country issued sovereign green bonds, more allocations were made under PLI scheme and also recently under green hydrogen mission. However, on account of Russia Ukraine War, the government’s subsidy burden increased and now it is pushing for increased exploration and production of fossil fuels as well,” said Vibhuti Garg, director, South Asia at Institute for Energy Economics and Financial Analysis (IEEFA).

 

Stating that the budget will lead to significant job creation through the green economy, Vaibhav Chaturvedi, fellow at Council on Energy, Environment and Water (CEEW) said, “Support to various sectors like green hydrogen, bio-manure, offgrid solar and storage among others will create economic opportunities for entrepreneurs. We can expect this to spur the economic development.”

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