Budget 2023-24: Taking Steps Towards Net Zero By 2070

The Union Budget 2023-24 is a historic first step in the Narendra Modi administration's pursuit of net zero by 2070. The long-awaited move has come out of the blue, but the plan laid out to achieve the net zero target is forward-looking, definite, and goal-oriented. The Budget places a big emphasis on sustainability and green growth by reducing emissions and transitioning India towards a low-carbon economy. 

The Indian Government’s Union Budget 2023 has proposed a series of measures to boost the carbon industry. It aligns with the government’s aim of achieving a low-carbon economy while creating employment and enhancing business opportunities. 

The main takeaways from the Budget include: 

A number of incentives for businesses in the carbon industry include the provision of tax credits for any investments made in carbon capture, utilisation and storage (CCUS) projects. Setting up of a Carbon Neutral Fund is expected to incentivise investments in carbon reduction activities. 

The setting up of a National Carbon Exchange to facilitate the trading of carbon credits will help companies to comply with their carbon emission targets as per the Paris Agreement. 

Bringing in a carbon tax to reduce the carbon footprint of companies and to discourage the use of fossil fuels is expected to lead to an increase in investments in the renewable energy sector. 

The Budget proposes setting up a National Research Centre for Carbon to provide research and development support to the carbon industry. It will help in developing new technologies and products to reduce carbon emissions.

The government has also outlined plans to create an 'enabling environment' that will support the implementation of the carbon budget. Priority capital investments totaling Rs 35,000 core have been set aside by the government for the energy transition and achieving India's target of net zero carbon emissions by 2070. 

In order to minimize carbon intensity and the usage of fossil fuels, Nirmala Sitharaman also pledged an additional Rs 19,700 crore for the government's Green Hydrogen Mission. She also declared a goal of producing five million tonnes of renewable hydrogen by 2030.       

Overall, the Union Budget 2023 has provided a major boost to the carbon industry. It is expected to lead to increased employment opportunities and business opportunities in the sector. It will enable the country to help achieve the government’s vision of a low-carbon economy while creating a more sustainable future. 

(Shailendra Singh Rao, Founder, Creduce)