Budget 2025: India to strengthen climate resilience, energy transition

The Union Budget for 202526 unveiled key initiatives aimed at strengthening Indiarsquos climate resilience and supporting the nationrsquos energy transition Finance Minister Nirmala Sitharaman introduced the National Manufacturing Mission High Yielding Seeds Mission and Nuclear Energy Mission focusing on renewable energy climatefriendly technologies and enhancing agricultural resilienceWhile these measures were welcomed by several industry experts some climate advocates argued that Budget 2025 did not deliver the bold and comprehensive climate action that India urgently requires reported news agency PTISolar panels EV batteries and clean tech manufacturing boostedA cornerstone of the Budgetrsquos green agenda is the National Manufacturing Mission designed to support the growth of domestic industries under the Make in India initiative Sitharaman emphasized that this mission would focus on manufacturing clean technologies such as solar PV photovoltaic cells electric vehicle EV batteries wind turbines and electrolyzersldquoGiven our commitment to climatefriendly development the mission will also support clean tech manufacturingrdquo stated SitharamanTo further stimulate local production the government has removed basic customs duties on key materials including cobalt powder lithiumion battery scrap and critical minerals This move aims to lower input costs secure raw material supply chains and create jobs in renewable energy and electric mobility sectors which are critical to Indiarsquos energy transition PTI reportedSupport for farmers and climateresilient agricultureIn a significant push for climate resilience in agriculture the government will launch the National Mission on High Yielding Seeds The initiative aims to improve seed research and develop varieties that can withstand droughts pests and extreme weather patterns which are increasingly affecting Indiarsquos farming communityNuclear energy to play a key roleThe Union Budget also placed a strong emphasis on nuclear energy with an ambitious goal of generating 100 GW Gigawatt of nuclear power by 2047 as part of Indias clean energy transition A new Nuclear Energy Mission will focus on the research and development of Small Modular Reactors SMRs with an outlay of Rs 20000 crore Sitharaman also announced that at least five indigenously developed SMRs will be operational by 2033 PTI reportedAdditionally the government plans to amend the Atomic Energy Act and the Civil Liability for Nuclear Damage Act to allow private sector participation in nuclear energy developmentMixed reactions from expertsWhile many lauded the initiatives some experts expressed concern that Budget 2025 fell short of addressing the climate crisis with the urgency and scale neededSunil Dahiya Founder and Lead Analyst at EnviroCatalysts said ldquoThe marginally increased allocation under Finance Commission grants under Ministry of Housing and Urban Affairs to urban areas a part of which in the past was directed towards National Clean Air Programme NCAP for million plus cities infers that the support for clean air actions to urban areas is continued though clarity on this is still awaitedrdquoHe added ldquoLack of a bold statement to tackling air pollution and reducing reliance on fossil fuels to decarbonise the energy sector is a major gap but a push for rooftop solar reduced import duties on solar and battery components investment in grid infrastructure and initiatives such as PMeBus Atal Mission for rejuvenation and Urban Transformation AMRUT and Swachh Bharat are welcome steps contributing to overall progress towards reducing air pollution and supporting energy transition A clear roadmap for Indiarsquos energy transition is essential to effectively address both air pollution and climate challenges and we look forward to targeted resource allocation and actions towards itHarjeet Singh climate activist and Founding Director of Satat Sampada Climate Foundation noted that the Budgetrsquos focus on boosting EV battery manufacturing and climate resilience in agriculture was insufficient ldquoThe Budget lacks a renewed commitment to scaling up renewable energy tackling deadly air pollution restoring ecosystems and safeguarding communities on the frontlines of the climate crisisrdquo Singh saidSaurabh Kumar VicePresident of Global Energy Alliance for People and Planet GEAPP however praised Budget 2025 for supporting renewable energy and positioning India as a key player in the global clean technology supply chain He noted that the National Manufacturing Mission would boost domestic production of solar PV cells and gridscale batteries enabling India to become a critical link in the global energy transitionHisham Mundol Chief Advisor at the Environmental Defense Fund highlighted the importance of diversifying the energy mix pointing to the 100 GW nuclear target as a positive development This is a strong target to pursue he saidWith inputs from Dipti Singh and PTI