Climate-proofing India’s socio-economic trajectory
- While the measures and schemes announced are crucial for a green industrial and energy transition, there is little mention of the actual physical risks of climate change.
With existing socio-economic challenges, India needs a people-first development paradigm to move towards a climate-secure future, and become a leading voice on climate action for the Global South. With programmes around green fuel, climate-friendly farming, green buildings, low-carbon mobility, and policies for efficient energy use across various economic sectors, the 2023-24 Budget lays a strong foundation for green growth – a step in the right direction for enabling climate action in India.
Finance minister Nirmala Sitharaman’s speech builds climate ambition for India, and, in her words, “This Budget provides ₹35,000 crore for priority capital investments towards energy transition and net-zero objectives, and energy security”.
With an outlay of ₹19,700 crores, the Green Hydrogen Mission is expected to reduce dependence on fossil fuel imports, and help India emerge as a market leader, with an annual production target of 5 MMT by 2030. These measures are instrumental in meeting India’s net-zero objectives under its updated Nationally Determined Contributions (NDCs) by 2070. We must collectively ensure this transition is people-first – where socio-economic benefits trickle down to address energy access and energy poverty in rural areas, and create green jobs in low-income communities.
Building on the rise of climate-smart agricultural practices, an agriculture accelerator fund has been set up to promote agricultural tech start-ups in rural areas, and increase productivity and profitability. Over the next three years, 1 crore farmers will be facilitated to adopt natural farming, with 10,000 bio-input resource centres proposed and related GST exemptions. Climate-resilient and nutritious crops, like millets, will be promoted through the establishment of a global hub for millets, and support for the Indian Institute of Millet Research, Hyderabad – for future integration into public food systems.
The significance of nature-based solutions also reflects in MISHTI (Mangrove Initiative for Shore Line Habitat and Tangible Incomes), a scheme to strengthen mangrove plantation and ecosystems along India’s shorelines and improve tangible incomes for local communities. The Amrit Dharohar scheme, to be implemented over the next three years to conserve and restore wetlands, is welcome, and urgently needed as two of every five wetlands in India have lost their natural existence in the last 30 years.
While the measures and schemes announced are crucial for a green industrial and energy transition, there is little mention of the actual physical risks of climate change. 75% of India’s districts are vulnerable to increasingly unpredictable and extreme weather events, and India might be one of the first places in the world to break the human survivability limit, with extreme heatwaves. India’s annual adaptation costs are an estimated $45.3 billion (over ₹3.7 trillion), and loss and damage from floods and storms alone cost India $7.6 billion (over ₹62,000 crores) in 2021. Over 100 crore people have been affected by natural disasters since 2001; losses amount to over ₹13 trillion, nearly 6% of India’s GDP (adjusted with 2021 prices).
Such overwhelming data leaves no other conclusion; deep climate budgeting must aim to climate-proof development schemes – including financial protection schemes, water budgeting, rural/urban planning, and agriculture. Yet, budgetary allocations for inclusive development are not clear on how and whether they account for those risks. For example, it is unclear how risks, such as land subsidence in Joshimath, will be integrated into the proposed sustainable city models, to climate-proof human settlements.
India’s position as the seventh most vulnerable country to climate change, and the third largest emitter in the world puts us in a unique position; we have to develop while decarbonising. But in a world where CO2 emissions occupy a disproportionate share of climate conversations, physical climate risks are forcing us to take a hard look at what we’re solving for. Along with improving our economic trajectory and strengthening climate change mitigation, we are also tasked with a deeper challenge of adaptation and resilience – of ensuring every community has access to water, shelter, livelihoods, and food, in the face of climate risks. Although this inalienable, collective right to develop will need larger inflows of capital, domestic and international, and integration of climate risk data into our welfare models, a climate-conscious budget like this is an essential foundation for our future.
Shloka Nath is acting CEO, India Climate Collaborative.
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First Published:2 Feb 2023, 12:48 PM IST
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