The Budget 2024-25 emphasizes policy continuity and a focus on climate change. The total budget is INR 48.21 lakh crore. It allocates funds to renewable energy, mitigation, adaptation, and climate-resilient agriculture. There is also a focus on critical minerals and clean energy transitions. The budget prioritizes securing critical minerals for strategic sectors through domestic production, recycling, and foreign acquisition.
- Taxonomy for Climate Finance: A Taxonomy for climate finance will be developed which will facilitate the development of the green bonds market and fund renewable energy, battery storage, and other emerging sustainable technologies sectors.
- PM Surya Ghar Muft Bijli Yojana: The government is making it easier to switch to clean energy with a program offering free solar installations (up to 300 units/month) for 1 crore households.
- Solar Energy – The government is providing a tax break for companies that manufacture solar panels and parts in India. This is being done by exempting customs duties on certain materials required for solar panel production. Previously, solar glass and tinned copper interconnects were also exempt from customs duties, but this exemption has been scrapped.
- Pumped storage projects will ensure a stable electricity supply despite the variability of renewable sources.
- Financing green projects: The government will introduce a system for classifying green projects (taxonomy) to make it easier for companies to get loans at lower rates. This will boost investment in renewable energy, battery storage, and other sustainable technologies.
- Stricter regulations for high-polluting industries: Industries that are difficult to reduce emissions from will have new regulations based on emission levels instead of just energy efficiency. They will also shift from a permit-based system to a carbon market system.
- Addressing renewable energy limitations: To counter the issue of wind and solar power being unavailable all the time, the government will promote pumped hydro storage which can store excess energy.
- Expanding nuclear power: The government plans to partner with private companies to build small nuclear reactors and invest in research on newer nuclear technologies. This will diversify energy sources and reduce greenhouse gas emissions.
India’s long-term goals:
- Increase renewable energy capacity by 50 GW annually for the next five years.
- Achieve 500 GW of electricity generation from non-fossil fuels (renewable + nuclear) by 2030.