Home / Budget / News /  Govt allocate 35,000 crore for energy transition, achieve net-zero by 2070

The issue of climate change is slowly coming into mainstream policies of the government. Union Finance Minister Nirmala Sitharaman on Wednesday announced the allocation of 35,000 crore in the Union Budget 2023 as a priority capital investment toward energy transition. The allocation is in line with the government's objective to achieve the goal of net zero emissions by 2070.

“Green Growth" is a separate category in this year's budget that talks about India's vision for energy transition and sustainable growth. “Green industrial transition in India will mainly be supported by the Green Hydrogen Mission with a financial outlay of 19,700 crore," Sitharaman said.

The Union Cabinet cleared the National Green Hydrogen Mission on 4 January with the objective to become a major exporter in the field and make India a global hub for the production, utilization, and export of Green Hydrogen and its derivatives.

Nirmala Sitharaman affirmed that green hydrogen is a ‘sunrise’ sector in India and under the mission government will develop a green hydrogen capacity of at least 5 MMT (million metric tonnes) per annum.

She added that a battery energy storage facility with a capacity of 4,000 MWH will be supported with the help of viability gap funding.

A Green Credit program will also be launched to encourage environmentally sustainable behavior. The program will push companies, individuals, and local bodies to conduct environmentally sustainable programs and also make the funding available for such schemes.

The government announced funding of 20,300 crore, for the projects related to evacuation of the around 13 GW of renewable energy from the Union Territory of Ladakh. Union Finance Minister also informed about a scheme called PM Pranam which will incentivize states and union territories for promoting alternative fertilizers.

“A ‘Gobardhan’ scheme will encourage 500 waste-to-wealth centers including 200 bio-compressed gas plants," Sitharaman said.

Economic Survey 2022-23 which was released on Tuesday affirmed that India is well on its way to achieving its targets for energy transition and climate change. “India is spearheading one of the world’s most ambitious clean energy transitions and remains steadfast in its commitment to combating climate change. Despite the adverse impacts of Covid-19 on the economy, India has enhanced its climate ambition manifold," the survey in its chapter titled “Climate Change and Environment" Preparing to Face the Future" said.


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