As India prepares to unveil its Union Budget 2025, stakeholders are eagerly anticipating measures to support the country’s green transition. With ambitious climate commitments to reduce emissions intensity by 45% by 2030 and achieve net-zero emissions by 2070, India is at the forefront of global sustainability efforts.
Energy efficiency is recognized as a crucial strategy to reduce greenhouse gas emissions and address climate change. The budget is expected to prioritize energy efficiency across various sectors, including industries, micro, small, and medium enterprises (MSMEs), agriculture, municipalities, and buildings. Fiscal incentives such as tax rebates and concessional funding for emerging technologies like carbon capture, utilization, and storage (CCUS) will be critical in driving down emissions in hard-to-abate industries.
The budget also presents an opportunity to scale up climate finance, including the establishment of a clear green taxonomy to guide investments and promote private-sector participation. International cooperation through multilateral development banks and bilateral agreements could also play a crucial role in providing necessary funding and technology.
Decarbonization is critical to achieving India’s energy security, and the budget provides an opportunity to accelerate this transition by increasing support for emerging sectors like offshore wind, green hydrogen, and solar power. Fiscal support measures such as tax holidays, accelerated depreciation benefits, and PLI schemes can make India’s green hydrogen projects competitive globally.
In conclusion, the Union Budget 2025 is a critical opportunity to reaffirm India’s commitment to climate action and sustainable development. By prioritizing energy efficiency, supporting green finance mechanisms, and accelerating decarbonization through sectoral shifts, the government can position India as a global leader in sustainability and green growth.