Union Budget 2022: Towards a Greener Economy

Driving inspiration from the Prime Minister’s words on NetZero 2070, the 2022 Union Budget continued the trend of India’s public expenditure being increasingly greener, with a slew of measures focusing on green energy, renewables, and electric vehicles.

The 2022 Union Budget, for its ambitious clean energy financing needs, unveils Sovereign Green Bonds, which will majorly go towards installing five hundred Gigawatts of non-fossil fuel power by 2030.

The PLI Scheme for high-efficiency solar cell manufacturing seeks to bolster India’s domestic solar cell industry, and India’s extensive coal reserves can be used in a green way by the use of coal gasification and coal to chemical plants- both of which find a mention in the 2022 Union Budget.

In a similar vein, a battery swapping policy has been announced with interoperability being emphasized, and no fossil fuel areas for India’s urban centres are on the cards. Similar incentives exist for setting up charging stations in India, and building on pre-existing measures for EV manufacturers and charging providers. In a similar vein, biomass pellets will be co-fired in thermal power plants, which goes towards reducing pollution caused due to stubble burning.

Another key announcement includes making provisions for private forestry and agri-forestry, which points towards a liberalizing commercial forestry regulatory scheme. Overall, the 2022 Union Budget balances practical considerations with access to clean technology and a strong push towards sustainability.

Source: https://www.investindia.gov.in