The 2024 Budget of India places significant emphasis on climate change, highlighting it as a priority alongside energy security. This strategic focus reflects a commitment to addressing climate issues through enhanced financial frameworks.
The Budget allocates greater funds to renewable energy, with the Ministry of New & Renewable Energy receiving a 60% increase in its budget, from ₹12,850 crore to ₹19,100 crore. This increase signifies a strong push towards sustainable energy initiatives.
This initiative promotes residential solar energy adoption, evidenced by 1.28 crore registrations. It aims to make solar energy accessible to homeowners, fostering a wider acceptance of renewable resources.
The Budget further supports local solar manufacturing by imposing duties on solar glass. Simultaneously, it removes duties on equipment crucial for manufacturing solar cells and panels, enhancing domestic production capabilities.
This mission aims to ensure energy security by exempting Customs duty on 25 essential minerals used in renewable energy technologies. Such measures are crucial for maintaining a robust renewable energy infrastructure.
A significant development in the Budget is the establishment of a climate finance taxonomy, designed to channel investments into climate-friendly projects. This taxonomy serves multiple purposes:
The measures presented in the Budget are anticipated to enhance investor confidence and create opportunities for both domestic and international finance. This aligns with the G20's recommendations to increase domestic capital flows for climate adaptation and mitigation projects.
India's 2024 Budget outlines a comprehensive approach to climate finance, integrating a clear taxonomy that supports sustainable investments. This initiative illustrates India's commitment to a low-carbon economy while fostering investor confidence in green projects.
Q1. What priority does climate change have in the 2024 Budget?
Answer: Energy security is one of nine priorities in the 2024 Budget, reflecting a strong commitment to addressing climate change.
Q2. How much has the allocation for renewable energy increased?
Answer: The allocation for the Ministry of New & Renewable Energy has increased by 60%, rising from ₹12,850 crore to ₹19,100 crore.
Q3. What is the Pradhan Mantri Surya Ghar Muft Bijli Yojana?
Answer: This initiative promotes residential solar energy adoption and has garnered 1.28 crore registrations to date.
Q4. What is the Critical Mineral Mission?
Answer: It aims to ensure energy security by exempting Customs duty on 25 essential minerals used in renewable energy technologies.
Q5. How does the Budget support India’s climate commitments?
Answer: By facilitating investments in sustainable projects, the Budget aids in transitioning towards a low-carbon economy and achieving climate goals.
Question 1: What is the focus of the 2024 Budget regarding climate change?
A) Reducing emissions
B) Energy security
C) Increasing fossil fuel use
D) None of the above
Correct Answer: B
Question 2: How much did the renewable energy budget increase in 2024?
A) 30%
B) 40%
C) 50%
D) 60%
Correct Answer: D
Question 3: What initiative promotes residential solar adoption?
A) Solar Power Scheme
B) Pradhan Mantri Surya Ghar Muft Bijli Yojana
C) National Solar Mission
D) Renewable Energy Program
Correct Answer: B
Question 4: What does the Critical Mineral Mission aim to achieve?
A) Increase imports of minerals
B) Ensure energy security
C) Reduce prices of minerals
D) Promote fossil fuels
Correct Answer: B
Question 5: What is a key element of the climate finance taxonomy?
A) Transparency in investments
B) Encouraging fossil fuel use
C) Reducing taxes
D) Increasing government spending
Correct Answer: A
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