RISKS OF CLIMATE CHANGE ARE THE STRONGEST NEGATIVE EXTERNALITIES THAT AFFECT INDIA AND OTHER COUNTRIES: UNION BUDGET 2022-23

ADDITONAL ALLOCATION OF ₹ 19,500 CRORE PROPOSED FOR PRODUCTION LINKED INCENTIVES FOR MANUFACTURING OF HIGH EFFICIENCY MODULES

CIRCULAR ECONOMY TRANSITION TO INCREASE PRODUCTIVITY AND OPPORTUNITIES IN NEW BUSINESSES AND JOBS

PROPOSAL TO CO-FIRE FIVE TO SEVEN PER CENT BIOMASS PELLETS IN THERMAL POWER PLANTS; CO2 SAVINGS OF 38 MMT EXPECTED

FOUR PILOT PROJECTS FOR COAL GASIFICATION AND CONVERSION OF COAL INTO CHEMICALS TO ALSO COME UP

The government aims to attain the vision of promoting energy transition and climate action during the Amrit kaal.While presenting the Union Budget 2022-23 in Parliament today, Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, laid emphasis on this vision and put the same as one of the important priorities of the country for moving forward.

Energy Transition and Climate Action

“The risks of climate change are the strongest negative externalities that affect India and other countries”, the Union Minister said while addressing the Parliament. She re-iterated the low carbon development strategy, announced by the Prime Minister, as an important reflection of our government’s strong commitment towards sustainabledevelopment.

This strategy opens up huge employment opportunities and the budget proposes several near-term and long-term actions in this regard.

Solar Power

The Finance Minister has proposed an additional allocation of ₹ 19,500 crore for Production Linked Incentive for manufacture of high efficiency modules. This will also ensure the domestic manufacturing required for achieving the ambitious goal of 280 GW of installed solar capacity by 2030.

Circular Economy

“The Circular Economy transition is expected to help in productivity enhancement as well as creating large opportunities for new businesses and jobs”, the Union Minister said while highlighting the importance of Circular Economy. She mentioned that the focus now will be on addressing important cross cutting issues of infrastructure, reverse logistics, technology up-gradation and integration with informal sector.

“This will be supported by active public policies covering regulations, extended producers’ responsibilities framework and innovation facilitation”, the Minister added.

Transition to Carbon Neutral Economy

Co-firing of five to seven per cent biomass pellets in thermal power plants has been proposed by Union Minister that will result in CO2 savings of 38 MMT annually. ”This will also provide extra income to farmers and job opportunities to locals and help avoid stubble burning in agriculture fields”, the Finance Minister added.

Energy efficiency and saving measures through setting up of Energy Service Company (ESCO) businessmodel in large commercial buildings will also facilitate capacitybuilding and awareness for energyaudits, performancecontracts, and common measurement & verification protocol.

Four pilot projects for coalgasification and conversion of coal into chemicals required for the industry have also been proposed to evolve technical and financial viability.

 

Energy transition policy advances domestic solar manufacturing, circular economy measures and power sector decarbonisation under budget proposals to boost jobs. The budget advances a domestic manufacturing incentive for high efficiency solar modules to support expanded solar capacity and jobs, implements a circular economy agenda through infrastructure, reverse logistics, technology up gradation, integration with the informal sector and extended producer responsibility, and proposes biomass co firing in thermal plants, an ESCO model for commercial buildings, and pilot coal gasification projects to test technical and financial viability as part of a coordinated low carbon transition.