Union Budget 2024-25: India boosts green energy initiatives

Union Budget 2024-25: India boosts green energy initiatives

The Union budget 2024-2025 is set to prioritize environmental, social and governance (ESG) and sustainability initiatives aimed at boosting long-term economic growth and environmental resilience, experts said.

Last month, the World Economic Forum (WEF) praised India’s progress in the global energy transition and noted the country’s leading role in creating replicable results.


Saunak Saha, Partner of Climate Change and Sustainability Services at EY Indiastressed the need for improved incentives for green technologies, stricter carbon emission rules and more financing for sustainable infrastructure projects. “Our energy and transport sectors need to decarbonise, which will help other sectors with their decarbonisation agendas. These measures will not only help India meet its climate commitments but also position the nation as a leader in sustainable development,” Saha mention.

India added a record 18.48 GW of renewable energy capacity in 2023-24, up 21% from 15.27 GW the previous year, according to government data.


Shailendra Singh Rao, Founder of Creducestressed the need for substantial financing for clean energy projects, including solar, wind, e-mobility and green hydrogen. “This should include investments in grid infrastructure, tax breaks and subsidies. This will be a significant relief, especially for the transition sector. To achieve our immediate 2030 target, we need to focus on the same,” Rao said.

Experts also expect budgetary support to be provided to improve the reliability of renewable energy sources, particularly battery storage solutions.

The ‘Smart Cities’ mission requires aggressive implementation of green infrastructureincluding urban forests, green roofs and sustainable public transportation. “It is imperative that we implement tax breaks and subsidies for developers who adhere to strict environmental regulations. Developers may not be motivated to pursue these initiatives independently unless these incentives are made public,” Rao added.