Business
Union Budget 2024: India's Green Energy Transition Needs to Be Accelerated
By - 18 Jan 2024 02:51 AM
As the Union Finance Minister prepares to present the Union Budget 2024, expectations are high that it will accelerate India’s transition to a low-carbon, climate resilient economy. India aims to meet its ambitious renewable energy targets and carbon emissions reduction goals in line with its Nationally Determined Contributions under the Paris Agreement. Experts believe the budgetary allocations and policy measures could catalyse green investments, create green jobs, and put India firmly on the path to a greener future.
Aiming to reach 500 GW of renewable energy capacity by 2030, India has made a commitment under the Paris Agreement. There has been a great deal of advancement, with renewable energy capacity expected to surpass 170 GW by 2023. However, more needs to be done to accelerate the pace of growth.
The Ministry of New and Renewable Energy estimates that achieving the 2030 target will require investments of around USD 500 billion. Much of that has to be done through private sector participation, and the budget can help by providing viability gap funding and low-cost financing through a dedicated green fund. Tax holidays (though an anathema to the present policy discourse), exemptions on capital equipment imports and reductions in GST rates would help lowerIn order to handle intermittent supply, smart grids will need to upgrade their transmission infrastructure, which will cost money. To become commercially viable, emerging industries like offshore wind and green hydrogen would require additional policy support.
