As the world continues to promote the development of green energy and reduce carbon emission intensity, the Indian government has made a series of important instructions for the green energy sector in the 2023-2024 budget. The government has listed several initiatives related to green energy, such as green cars, green agriculture, green buildings and green machinery, to name a few.
In addition, as the rotating presidency of the G20, the Indian government's emphasis on green energy will have a greater impact. This budget shows India's unremitting efforts to develop clean and green energy.
1/India National Green Hydrogen Program
The Indian government has made it clear that the country attaches great importance to the transition to a low-carbon economy and to minimizing the country's dependence on imported fossil fuels. In addition, the Indian government has allocated Rs 197,000 crore for the national green hydrogen energy plan to help India "occupy technology and market leadership in this sunrise industry". According to the budget, the Indian government has also set a lofty target of domestic production of 500 million metric tons of green hydrogen per annum by 2030.
Girish R. Tanti, vice chairman of Suzlon Energy, said the budget is of great significance for India's renewable energy industry. India has allocated Rs 350,000 crore for a green energy transition, a positive move that demonstrates India's commitment to a sustainable future.
He also pointed out that the Indian government is committed to promoting the development of renewable energy, which is very admirable, and this initiative is crucial to reducing carbon emissions and mitigating the impact of climate change. The National Green Hydrogen Plan will help us achieve our goal of net zero emissions.
India's Ministry of Oil and Gas will have priority access to capital investment of Rs 35,000 crore to support net zero goals, energy security and energy transition.
"This budget creates sound incentives to support low-carbon development," wrote Anjali Bansal, founder of Avaana Capital, an early-stage venture capital firm dedicated to climate technology. "Promoting sustainable growth in India." , Incentives are needed to drive investment in technology and innovation for the benefit of people and the planet. We support greater investment in energy transition, especially green hydrogen and waste-to-energy, which will contribute to India's energy independence. PRANAM The Center for Planning and Bio-Input will encourage the adoption of sustainable and regenerative farming practices. The Green Credit Scheme will provide much-needed funding to support the transition to a sustainable economy. A favorable tariff on lithium-ion batteries will further boost the electric vehicle industry and Helping to drive the decarbonization of the transport and logistics sector. A range of measures in Budget 2023 will further strengthen India’s position as a global climate leader and promote inclusive sustainable development.”
2/India's leapfrog energy transition
India's energy demand is expected to grow exponentially in the coming decades due to the sheer size of the Indian market and its enormous potential for economic growth and development. Therefore, for India, the transition to renewable low-carbon green energy is crucial to meet energy needs.
India plans to achieve 50% renewable energy generation by 2023 and achieve net carbon neutrality by 2070. India's public announcement of this budget shows that a turning point in history has arrived in pursuit of green development and combating climate change.
3/ The outlook for India’s renewable energy sector is bright
As of 2020, India ranks fourth in the world in terms of installed renewable energy capacity and fifth in the world in terms of solar power generation. India has emerged as one of the world's leading renewable energy markets.
The production capacity of renewable energy in India has increased in recent years with a CAGR of 15.92% from FY2016 to FY2022.
In short, through a massive technological transformation coupled with the recently announced 2023 budget plan, India has shown the world that it is serious about working towards the global goal of net zero emissions.