Budget 2024: Nirmala Sitharaman Announces New Schemes to Bring India to Net Zero Target

Finance Minister Nirmala Sitharaman unveiled a comprehensive plan aimed at achieving the country's ambitious Net Zero target by 2070 in Budget 2024 to take India towards a greener future.

The announcement came as part of the Union Budget 2024, where "green growth" was highlighted.

The Finance Minister has allocated significant resources to promote the green energy sector with a focus on harnessing India's vast offshore wind power potential. A notable initiative includes viability gap funding for the development of 1 gigawatt (GW) of offshore wind power, which is expected to play a key role in diversifying India's renewable energy portfolio and reducing dependence on fossil fuels.

Another key component of the strategy is the ambitious target of setting up coal gasification and liquefaction projects capable of processing 100 MT by 2030. The move is set to reduce India's import dependence on natural gas, methanol and ammonia as well as promote clean energy.

To further reduce carbon emissions, the government is planning to mandate blending of biogas with compressed natural gas for transport and piped natural gas for domestic use. The policy is expected to not only improve air quality but also boost the biogas industry while contributing to circular economy.

Financial assistance will be provided to support the procurement of biomass aggregation, which is required for the production of bioenergy. The move is likely to encourage farmers to participate in the bioenergy supply chain, creating a sustainable and profitable model for agricultural waste management.

With the government's intention to expand and strengthen manufacturing capabilities and charging infrastructure, the Electric Vehicle Ecosystem is set to get a significant push. This is projected to accelerate the adoption of EVs across the country, which will lead to a reduction in greenhouse gas emissions from the transport sector.

In an effort to promote the use of Electric Buses, the government is keen to encourage greater adoption of these, which will contribute to reducing urban pollution and promoting sustainable public transport.

A new scheme focusing on Biomanufacturing and Biofoundry will be launched with an aim to promote green growth and innovation in the biotechnology sector. The initiative is expected to transform the current consumable manufacturing paradigm into a paradigm based on regenerative principles, which will be in line with global trends towards sustainability.

These comprehensive measures are aimed at India's proactive approach to combat Climate Change and dedication to achieving a net-zero carbon footprint by 2070.