India's Climate Ambitions and Budgetary Allocations for Decarbonization and Renewable Energy
The article analyzes India's recent Union Budgets, highlighting a shift toward climate-conscious allocations since 2021. Key initiatives include a ₹20,000 crore outlay for Carbon Capture, Utilisation and Storage (CCUS) and the expansion of the PM Surya Ghar Muft Bijli Yojana for rooftop solar. However, the author notes a cautious approach to industrial-scale deployment. The EU's Carbon Border Adjustment Mechanism (CBAM) makes decarbonization a matter of export competitiveness for Indian steel and aluminum. Despite progress in solar and nuclear energy, gaps remain in mobilizing private capital and executing green hydrogen policies.
Key Points
- The budget allocates ₹20,000 crore for CCUS technology, signaling a move toward pilot-phase industrial decarbonization.
- The PM Surya Ghar Muft Bijli Yojana received a significant boost to ₹22,000 crore for 2026-27 to promote decentralized energy.
- The EU's Carbon Border Adjustment Mechanism (CBAM) imposes carbon costs on high-emission imports, pressuring Indian industries to decarbonize.
- Nuclear energy sees extended customs duty exemptions on equipment imports until 2035 to reduce input costs.
Exam Facts
- ₹20,000 crore outlay for Carbon Capture, Utilisation and Storage (CCUS).
- PM Surya Ghar Muft Bijli Yojana allocation increased to ₹22,000 crore in 2026-27.
- Customs duty on nuclear plant equipment imports extended until 2035.
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