{"id":324957,"date":"2025-01-28T19:14:33","date_gmt":"2025-01-28T13:44:33","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=324957"},"modified":"2025-01-28T19:14:33","modified_gmt":"2025-01-28T13:44:33","slug":"indias-budget-priorities-for-achieving-climate-goals","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/indias-budget-priorities-for-achieving-climate-goals\/","title":{"rendered":"India&#8217;s Budget Priorities for Achieving Climate Goals"},"content":{"rendered":"<p><strong>Source<\/strong>: The post India&#8217;s Budget Priorities for Achieving Climate Goals has been created, based on the article \u201c<strong>The Union Budget as a turning point for climate action<\/strong>\u201d published in \u201c<strong>The Hindu<\/strong>\u201d on 28th January 2025<\/p>\n<p><strong>UPSC Syllabus Topic:<\/strong> GS Paper3- Economy-Budget and Environment<\/p>\n<p><strong>Context<\/strong>: The article discusses India&#8217;s need to prioritize climate action in the FY26 Budget. It highlights renewable energy goals, the impact of the EU\u2019s Carbon Border Adjustment Mechanism, promoting a circular economy, boosting green finance, and improving climate resilience through insurance.<\/p>\n<h2><strong>What are the challenges India faces in achieving climate goals?<\/strong><\/h2>\n<ol>\n<li><strong>Renewable Energy Target<\/strong>: India aims for a renewable energy capacity of 500 GW by 2030 but has currently installed only 203.18 GW.<\/li>\n<li><strong>Scheme Implementation<\/strong>: The PM Surya Ghar Muft Bijli Yojana has seen low completion rates, with only 6.34 lakh installations out of 1.45 crore registrations (4.37%).<\/li>\n<li><strong>Domestic Manufacturing<\/strong>: The local production of solar panels meets only 40% of the demand, with domestically manufactured panels costing 65% more than imported ones.<\/li>\n<li><strong>Extreme Weather<\/strong>: Increasingly frequent extreme weather events add urgency to these challenges.<\/li>\n<\/ol>\n<h2><strong>How can the Budget accelerate India&#8217;s green energy transition?<\/strong><\/h2>\n<ol>\n<li><strong> Enhance PM Surya Ghar Muft Bijli Yojana<\/strong>:<\/li>\n<\/ol>\n<ul>\n<li>Out of 1.45 crore registrations, only 6.34 lakh installations (4.37%) are complete.<\/li>\n<li>Allocate funds to the Renewable Energy Service Company (RESCO) model to reduce upfront costs for low-income households using credit guarantees and innovative financing.<\/li>\n<\/ul>\n<ol start=\"2\">\n<li><strong> Boost domestic solar manufacturing<\/strong>:<\/li>\n<\/ol>\n<ul>\n<li>Domestic production meets only 40% of solar demand, with domestic panels costing 65% more than imports.<\/li>\n<li>Expand production-linked incentives (PLI) across the solar module supply chain to address this gap and reduce costs.<\/li>\n<\/ul>\n<ol start=\"3\">\n<li><strong> Utilize Railways&#8217; land for renewables<\/strong>:<\/li>\n<\/ol>\n<ul>\n<li>Railways\u2019 land and track corridors have the potential to generate up to 5 GW of solar and wind energy.<\/li>\n<li>Introduce public-private partnerships to unlock this opportunity.<\/li>\n<\/ul>\n<h2><strong>How can India protect exports from the EU\u2019s Carbon Border Adjustment Mechanism (CBAM)?<\/strong><\/h2>\n<ol>\n<li>CBAM starts in 2026 and could impose 20%-50% carbon levies on $8.22 billion worth of Indian exports to the EU.<\/li>\n<li>MSMEs, contributing 30% to GDP and 45% to exports, are most vulnerable.<\/li>\n<li>A \u2018<strong>Climate Action Fund<\/strong>\u2019 is needed to support decarbonization in these sectors, similar to Japan\u2019s Green Transformation Fund.<\/li>\n<\/ol>\n<h2><strong>How can India transition to a circular economy?<\/strong><\/h2>\n<ol>\n<li>A circular economy could yield \u20b940 lakh crore ($624 billion) annually by 2050 while cutting emissions by 44%.<\/li>\n<li>Weighted tax deductions (150%) and accelerated depreciation benefits can promote recycling and refurbishment technologies.<\/li>\n<li>A sovereign green bond framework should fund circular economy infrastructure.<\/li>\n<\/ol>\n<h2><strong>How can green finance drive India\u2019s climate goals?<\/strong><\/h2>\n<ol>\n<li><strong>Green finance is essential to meet India&#8217;s climate goals<\/strong>: India requires \u20b9162.5 trillion ($2.5 trillion) by 2030 to achieve its Nationally Determined Contributions.<\/li>\n<li><strong>Investor confidence through standardized definitions<\/strong>: Standardizing green finance definitions can build investor trust, crucial for attracting the necessary investments.<\/li>\n<li><strong>Infrastructure for green finance<\/strong>: Allocating Budget funds for market readiness programs, verification systems, and financial institution capacity building is necessary to implement effective climate finance taxonomy.<\/li>\n<li><strong>Encouraging investments<\/strong>: Introducing differential tax treatments for taxonomy-aligned investments can further encourage green investments and help meet climate targets.<\/li>\n<\/ol>\n<p><strong>Question for practice:<\/strong><\/p>\n<p>Discuss the challenges India faces in achieving climate goals and how the Budget can address them.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source: The post India&#8217;s Budget Priorities for Achieving Climate Goals has been created, based on the article \u201cThe Union Budget as a turning point for climate action\u201d published in \u201cThe Hindu\u201d on 28th January 2025 UPSC Syllabus Topic: GS Paper3- Economy-Budget and Environment Context: The article discusses India&#8217;s need to prioritize climate action in the&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/indias-budget-priorities-for-achieving-climate-goals\/\">Continue reading <span class=\"screen-reader-text\">India&#8217;s Budget Priorities for Achieving Climate Goals<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230],"tags":[216,8184,10498],"class_list":["post-324957","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","tag-gs-paper-3","tag-indian-economy","tag-the-hindu","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/324957","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=324957"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/324957\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=324957"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=324957"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=324957"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}