There’s Still a Long Way to Go for a Climate Proof Budget, says Manish Dabkara

Though the Government is striving in the right direction with a climate-friendly growth plan, there is still a long way to go for a climate-proof Budget, said Manish Dabkara, CMD & CEO of BSE-listed EKI Energy Services Ltd.

While decoding the Union Budget 2022, Dabkara said it is truly historical given its strong focus on climate for the first time ever and large allocations for various sectors that enable climate-friendly sustainable development.

He further said that we wholeheartedly welcome the Union Budget 2022 and it is truly a delight for us that Energy Transition & Climate Action have been recognized as two important pillars in the budget this year establishing India's commitment to sustainable development by mitigating global warming.

He further believes that the budget’s strategic blueprint for climate action will truly enable a low carbon development in India supporting the Panchamrita commitment laid down by PM at COP26.

He suggested that Climate actions will need strategically designed guidelines & policies along with a well-defined roadmap that can help us achieve the net-zero target. There should also be greater clarity and focus on the taxation of carbon finance and offsets along with incentivisation of the sector which can drive focused modus operandi for the achievement of net-zero target by 2070.

In his Budget analysis, Dabkara shared a few pointers:

1. Budgetary allocation in Anganwadi development with clean energy facilities is an important step towards enabling clean equitable development in rural India.  This is an impressive step by the Govt. towards its commitment to net-zero by 2070 as clean energy will reduce pollution levels even as villages become self-sustainable with its use of clean energy.

2. The allocation of Rs 1400 crore for the development of solar and Hydro projects in Ken Betwa river linking projects will further enable sustainable development. This along with the target to increase solar power capacity to 280gigawatt by 2030 from the existing capacity of 141gigawatt is a truly welcome step. Govt. and private will need to work together for a Public-Private Partnership (PPP) to achieve this target and Govt should provide more incentives by way of relaxation in taxation, availability of land and policy guidelines on carbon offset to encourage companies to increase the production of solar power and achieve this target.

3. Rs19,000 crore Performance Linked Incentive (PLI) for the solar panel will need increased focus. There is an urgent need for supportive infrastructure as well as an economic ecosystem that will enable the manufacturer, buyer and service provider to come together to achieve the solar power production target.

4. Promotion of clean technology in public transport will enable sustainable growth as clean energy is used increasingly. This should however also encourage efficient waste management and increased dependence on renewable power by the country. The project should also be financially feasible for which we should adopt carbon financing for green initiatives.

5. Gati Sakti will encourage a strong pathway towards environmental-friendly transportation development.

6. Energy efficiency as the basis for railway development, especially in the running of freights and passenger trains will also enable efficient and carbon-friendly development. Special mobility zone with zero fossils in urban development shows the commitment of the government towards GHG abatement.

7. Chemical-free natural farming within a 5km wide corridor of river Ganga is a step towards sustainable and climate-resilient farming practices. Allocation of programmes supporting agri-waste management into energy will directly address stubble burnings that will help reduce many million tonnes of carbon emissions.

8. Green bonds will help focus on carbon intensity reduction projects. Sustainable and climate finance institutions will be set up to mobilize finance for clean development.

9. Govt will also pay Rs 2.37 lakh crore towards procurement of wheat and paddy under MSP operations. This however needs a proper market linkage and established demand for the products that can motivate farmers to focus more on improving the practices in cultivation and make farmlands more sustainable.