Finance Minister Nirmala Sitharaman Announces Green Initiatives in Interim Budget 2024
Finance Minister Nirmala Sitharaman presented the interim budget for 2024, outlining a range of measures aimed at promoting the green economy and the blue economy. In addition to finance and infrastructure-related measures, Sitharaman announced initiatives to achieve India’s net-zero commitments by 2070 and promote a ‘Blue economy’.
Offshore Wind Energy and Viability Gap Funding
As part of the green initiatives, viability gap funding will be provided for harnessing offshore wind energy potential, with an initial capacity of one giga-watt. This move will contribute to reducing the country’s reliance on non-renewable energy sources.
Coal Gasification and Liquefaction Capacity to Reduce Import Dependence
To reduce imports of natural gas, methanol, and ammonia, the government plans to set up coal gasification and liquefaction capacity of 100 MT by 2030. This strategic move will not only enhance energy security but also promote clean energy alternatives.
Phased Blending of Compressed Biogas in Transport Fuels
The government aims to promote the use of compressed biogas in transport fuels, including compressed natural gas (CNG) and piped natural gas (PNG). Financial assistance will be provided to individuals seeking to procure biomass aggregation machinery, further supporting the growth of the green economy.
Expansion of E-Vehicle Ecosystem and Public Transport
As part of the green transport initiatives, the government plans to expand the e-vehicle ecosystem by providing support for manufacturing and charging infrastructure. Additionally, the adoption of e-buses for public transport networks will be encouraged through the introduction of payment security mechanisms.
Blue Economy 2.0 and Climate Resilient Activities
The interim budget also focuses on promoting climate resilient activities for the blue economy 2.0. This includes schemes for restoration and adaptation measures, as well as a multi-sectoral approach towards coastal aquaculture and mariculture. These measures aim to ensure sustainable use of economic resources while protecting ocean ecosystem health.
Overall, the interim budget presented by Finance Minister Nirmala Sitharaman emphasizes the government’s commitment to the green economy and the blue economy. With measures targeting renewable energy, clean transportation, and the sustainable use of resources, India is taking significant steps towards achieving its net-zero commitments by 2070.
Analyst comment
Positive news. The market is likely to see growth in the renewable energy sector, as the government’s initiatives will create opportunities for investment in offshore wind energy, coal gasification, and compressed biogas. The expansion of the e-vehicle ecosystem and support for public transport will also drive growth in the clean transportation sector. Overall, the market is expected to benefit from the focus on the green and blue economy.
