The Union Budget 2024 presented by Finance Minister Nirmala Sitharaman laid down plans to Fight against climate change and boost resilience against natural catastrophes. This budget made crucial decisions towards flood protection, the development of a new climate finance taxonomy, and ways of boosting renewable energy sources, showing India’s seriousness towards a sustainable future.
Highlights of Eco-sustainable Moves under Union Budget 2024
1. Flood Protection and Infrastructure Resilience
The Union Budget 2024 gives flood prevention a lot of attention. As India suffers frequently with catastrophic floods regularly, the budget includes significant sums of funds for improving drainage systems, building barriers, and enhancing early warning detection systems.
These initiatives seek to minimize the socioeconomic effects of flooding, which have a significant negative impact on infrastructure and agriculture.
2. Taxonomy of Climate Finance
This Development of Climate Finance Taxonomy can be considered as the key feature of this budget. The goal of this framework is to standardize the requirements for green investments in order to draw significant funding for initiatives related to climate adaptation and mitigation.
Due to the availability of precise definitions, the taxonomy contributes to increased investors’ trust and helps develop sustainable finance for the sustainable development of an environmentally friendly economy in India.
3. Initiatives for Renewable Energy and the Environment
A fund of Rs 3,330.3 crore was allocated to The Ministry of Environment, Forests, and Climate Change (MoEFCC), under this Union Budget 2024. This funding focused on afforestation and ecosystem restoration, such as the National Mission for a Green India.
Further funds of Rs 858.5 crore have been made for pollution management initiatives, which are crucial for enhancing public health and lowering the risk of flooding.
Minerals such as copper, lithium, cobalt, and rare earth elements are vital for sectors such as renewable energy, telecommunications, nuclear energy, and space. Custom duties on 25 critical minerals are to be reduced. This proposed initiative will entail developing technologies, enhancing the performance of the workforce, strengthening an EPR framework, and a financing mechanism for the sector.
4. Assistance for Challenging Industries and Cutting-Edge Technology
The Union Budget 2024-25 tackles the difficulties encountered by industries that are difficult to modify, such as heavy industries, shipping, and aviation. It encourages cutting-edge technologies such as pumped hydro storage and small nuclear reactors that are vital for lowering emissions and guaranteeing a steady supply of energy.
5. Global Collaboration and Monetary Measures
India’s Union Budget 2024 lays a strong emphasis on the significance of global climate finance collaboration. With the adoption of the Climate Finance Taxonomy, foreign investment in green initiatives is encouraged as it complies with global standards.
India has demonstrated its commitment to finance public sector initiatives aimed at lowering emissions by issuing green bonds, with a total value of Rs 36,000 crore in 2023.
Conclusion
A strong foundation for India’s sustainable development is laid by the Union Budget 2024. The budget has put India on the front-line in climate initiatives by creating the climate finance taxonomy, supporting renewable energy, and recognizing flood resilience as its top priority.
In order to ensure a resilient future and meet India’s climate targets, these measures are critically important.
Frequently Asked Questions
What is the Green Finance Taxonomy?
The purpose of this framework is to standardize the requirements for green investments in order to draw funding for projects that address climate change.
ÂWhy does the budget give flood protection top priority?
India is prone to catastrophic flooding. Hence, the budget allocates funds to improve flood protection and reduce socioeconomic events.
What is included in climate finance?
Climate finance can be defined as a local or international pool of public, private and other sources of financing that aim at funding strategies or measures to overcome the effects of climate change.
What are the pillars of climate finance?
The four elements include private sector engagement, international financial and partnership, a mix of financing, and innovation financing.
What measures are included for pollution control?
An amount of Rs 858. 5 crores for pollution control, with an emphasis on areas such as air and water pollution, is allocated in the budget.
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