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Prioritizing Climate Action and Sustainability UPSC NOTE

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  Urgency for Climate Action The upcoming Union Budget must address India’s climate commitments, with a focus on the green energy transitio...

 Urgency for Climate Action

  • The upcoming Union Budget must address India’s climate commitments, with a focus on the green energy transition and meeting the 2030 renewable energy target.

  • Previous budgets have shown commitment to climate action, but challenges remain in accelerating progress towards renewable energy goals.

Key Measures for Green Energy and Innovation

  • PM Surya Ghar Muft Bijli Yojana: Needs a review and enhanced fiscal support to close implementation gaps, prioritizing innovative financial instruments for lower-income households.

  • Solar Manufacturing: The Budget should expand Production-Linked Incentives (PLI) for solar module manufacturing to reduce domestic supply shortages and high costs.

  • Railways for Renewable Energy: Encourage public-private partnerships to utilize railway land for solar and wind energy projects, potentially generating 5 GW of energy.

Supporting Export Competitiveness and Circular Economy

  • Carbon Border Adjustment Mechanism (CBAM): A “Climate Action Fund” should be established to support MSMEs in meeting carbon compliance, preventing carbon levies on exports to the EU.

  • Circular Economy: The Budget should incentivize recycling and refurbishment technologies, with tax benefits and a green bond framework to finance circular economy infrastructure.

Building Climate Resilience and Green Finance

  • Tax deductions for insurers offering climate-linked policies and reduced GST rates on climate resilience insurance could increase coverage.

  • Standardizing green finance definitions and developing infrastructure for climate finance will attract investment needed for India’s climate goals.

  • Introducing differential tax treatment for climate-friendly investments and classifying government expenditure according to green criteria can drive sustainable growth.

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Learnerz IAS | Concept oriented UPSC Classes in Malayalam: Prioritizing Climate Action and Sustainability UPSC NOTE
Prioritizing Climate Action and Sustainability UPSC NOTE
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Learnerz IAS | Concept oriented UPSC Classes in Malayalam
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