Union Budget 2023-24 Promotes Green Growth with Increased Allocations and Progressive Policies

Green growth was a major focus in the Union Budget 2023-24 presented by the Finance Minister of India, Nirmala Sitharaman. The budget aimed to catalyze the movement toward sustainable living and energy transition with its emphasis on green energy, green farming, green mobility, green buildings, and green equipment. The allocation of Rs. 10 lakh crores for green growth, representing a 33% increase, will help reduce the carbon intensity of the economy and support the country's goal to achieve net-zero emissions by 2070.

The budget also included the establishment of regulations for the Green Credit Program, governed by the Environmental Protection Act, which will encourage environmentally responsible actions by individuals, companies, and local bodies. The National Green Hydrogen Mission, funding for battery storage, support for alternative fertilizers, replacement of polluting vehicles, and integration of renewable energy from Ladakh into the grid were also commendable steps towards green growth.

Industry leaders applauded the green growth provisions outlined in the budget. They believe the budget will place the country on a steadfast path towards meeting its net-zero goals and promoting a pro-planet, pro-people way of life.

Sambitosh Mohapatra, 
Partner and Leader- ESG Platform & Energy Utilities and Resources, PwC India 

Green growth is a transformative opportunity for the country to lead the world on the sustainable way of living and energy transition. The Union Budget will catalyse the movement with a thrust on green fuel, green energy, green farming, green mobility, green buildings, green equipment and policies for efficient use of energy across various economic sectors. It will help in reducing carbon intensity of the economy as per our NDCs for 2030.

It is a progressive budget that integrates key ESG elements into the economy - enrolling women self groups into larger producer enterprises, prioritizing healthy, climate-resilient agricultural products, spearheading the hydrogen economy, supporting oil and gas sector decarbonisation, focus on biodiversity protection and regeneration, and tax exemptions to support green mobility and battery storage. It will provide large- scale job opportunities, focus on innovation and research, enhance skills, and will aid inclusive growth for all.
 

Jaideep N. Malaviya,
Board Director – International Solar Energy Society and Founder-Secretary General, Solar Thermal Federation of India

"The announcement in the Union budget 2023-24 on Green credit program to be notified under the Environment Protection Act for responsive actions by individuals and companies to encourage environment-friendly behavior is a significant announcement and particularly should benefit individuals to buy at concessional rates Solar PV rooftop, Solar water heaters, energy efficient appliances and Electric-mobility. It can commit individuals to collectively contribute to reducing country’s carbon footprint."

Kush Singh, 
CEO, Essar Power

“The Union Budget 2022-2023 reflects the country’s rapid economic growth whilst projecting a bright future. Honorable FM has based the budget on 7 priorities wherein Green growth has been given a major spotlight which is the current need of the hour for the energy sector. Green hydrogen will emerge as an important instrument to decarbonize the energy value chain, including the corporate sector. The decision to reduce custom duty on lithium ion batteries will promote energy storage to provide round-the-clock renewable power at reduced cost. The amalgamated steps taken will not only help reduce carbon intensity of the economy but will simultaneously help create job opportunities. The ultimate goal is to reduce dependence on fossil fuel inputs and make the country assume technology and market leadership in this sunrise sector. This is a growth oriented budget and the efforts made towards green growth including policies and fund allocations will help us achieve the target of green hydrogen production of 5 mn tonne by 2030.”

Srinivasan Viswanathan, 
Chief Executive Officer of Vibrant Energy

“The budget was progressive and beneficial to the energy sector. The statement on Green Growth is highly comprehensive, with a vision for the green hydrogen mission costing Rs 19,700 crores, which would undoubtedly accelerate the energy transformation. The promotion of Ladakh green energy corridor is a welcome step. We appreciate the Rs. 35,000 crore capital investment for reaching the net zero goal, however, we look forward to receiving the policy structured in a detailed manner. With this budget announcement, we are encouraged to keep up the rapid expansion in energy production, manufacturing required equipment, and construction of energy storage capacity. We will need to continue having a closer industry-government collaboration to reach the net-zero aim by 2070. 

Manish Dabkara, 
Chairman and MD EKI Energy Services Ltd and President CMAI (Carbon Markets Association of India).

"The Union Budget 2023 presented by Finance Minister NirmalaSitharaman in Parliament made several key declarations related to Green Growth and Energy Transition. One noteworthy announcement is the establishment of regulations for the Green Credit Program, which will be governed by the Environmental Protection Act. This move will incentivize the distribution of additional resources and environmentally sustainable & responsive actions by companies, individuals and local bodies; provide fiscal incentives; and support the Government of India's LiFE program, promoting a pro-planet, pro-people way of life.

The budget presents a promising outlook for steering the country towards a low-carbon development path, with an impressive allocation of an additional 10 lakh crores, representing a 33% increase. The government's efforts in supporting all aspects of green growth, including the National Green Hydrogen Mission, funding for battery storage and pumped storage, alternative fertilizers, replacement of polluting vehicles, and integration of renewable energy from Ladakh into the grid, are commendable and will aid in boosting the country's green growth.

The budget proposes innovative policies and programs with sufficient budgetary allocations, aimed at advancing India's sustainability goals. With capital inflow and support from the government in the form of regulations and initiatives such as the GOBARdhan Schemes for waste management and recycling, support for Natural Framings, Mangrove Initiatives, Micro Fertilizers Manufacturing and Distribution Network, and exemptions on customs duties for green mobility, the future looks promising and sustainable.

We are thrilled with the green growth provisions outlined in the budget, as they place the country on a steadfast path towards meeting its net-zero goals."

Sumant Sinha, 
Chairman and CEO, ReNew Power

"We welcome the budget proposals presented by the Hon’ble Finance Minister. The focus of the budget on expanded support for infrastructure investment, growth of small industry and agriculture sectors, while committing to fiscal consolidation, strikes the right balance. In the context of overall geopolitical and economic outlook, the outlay of Rs. 35,000 crore for energy transition and energy security is a significant step forward. We believe the Finance Minister has presented a Green Budget that demonstrates Government of India’s unwavering commitment to achieving Net Zero by 2070.  

For the clean energy sector, there are several welcome announcements. Support for Battery Energy Storage Systems (requested by ReNew Power during pre-budget consultations), the transmission infrastructure to evacuate power from Ladakh, the allocation for biogas to energy projects and the initiatives for scrapping of old vehicles of the central and state governments are all significant steps in the right direction. We look forward to seeing further details on the recently announced Rs. 19500 crores allocation for the National Green Hydrogen Mission.  

The budget will give a thrust to accelerating clean energy in India and ReNew Power is committed to support Government of India in this endeavour.

Ishan Chaturvedi, 
Co-Founder, and Director of Vareyn Solar

"The Union budget has identified the need for green growth and will be beneficial in the growth of the renewable energy sector. Ladakh is the best place to have solar installed in entire India as locations with low temperatures support higher solar generation and the sunlight irradiance intensity is near to that of Rajasthan. So, we welcome the green plan for Ladakh.

Acquisition Financing for foreign banks' Indian Units will increase the influx of money to India. With the increase in Green Assets and Investments, A&M(Acquisitions & Mergers) can get a push with the increased financial competition. Besides this, the VGF (Viability Gap Funding) on 400MWh Battery Storage is a great push to Solar with Storage on Mega-Scale.

The change in policy is expected soon for old vehicles to curb pollution. There will be a push to EV business. Besides this, green growth will also provide a push to Green Hydrogen that is Hydrogen Production units that are Solar powered creating a net zero country, in line with the COP Targets."

Jimit Devani, 
Partner, Deloitte India

A rocket ship of INR 35,000 crore capital outlay provided by FM as India heads for its net zero “Panchamrit” goal by 2070 and 5 MMT annual production (green hydrogen) by 2030. A promising step in the right direction. FM provides various fiscal benefits to pump energy transition, battery energy storage via viability gap funding, renewable energy evacuation, green credit program, biogas plant (Gobardhan scheme), biomass and natural farming.
 

In conclusion, the Union Budget 2023-24 is a progressive and growth-oriented budget that focuses on green growth and energy transition. It includes innovative policies, sufficient budgetary allocations, and support from the government that will advance India's sustainability goals and promote a sustainable future.