Essay elaborating on the potential impact of Budget 2024 with a focus on green energy initiatives:

Essay elaborating on the potential impact of Budget 2024 with a focus on green energy initiatives:

Introduction

The Union Budget 2024-25 comes at a pivotal moment when India aims to recover from the economic slowdown induced by the COVID-19 pandemic and continue its growth trajectory. Among the budget's foremost priorities is providing impetus for renewable energy and sustainability to place India on a greener growth path. 

Several key proposals and increased outlays in Budget 2024 promise to accelerate India's transition towards clean energy. With the right follow-through on implementation, these measures can drive investments, create jobs and build climate resilience while reducing emissions. This essay analyses the major green energy budget provisions, their objectives, potential impact and future projections.

Renewable Energy Targets and Production Linked Incentives

Budget Highlights:

- Renewable energy capacity target increased from 450 GW by 2030 to 530 GW by 2025 and 650 GW by 2029-30

- Allocation of Rs. 19,500 crore for Production Linked Incentive (PLI) scheme for manufacturing high-efficiency solar modules 

The budget significantly raises renewable capacity addition targets, aiming to reach 530 GW of renewable energy by 2025 from the current 136 GW. This will put India well on track to achieve 50% of electricity from non-fossil energy sources by 2030 as per COP26 commitments. 

The PLI scheme with an outlay of Rs. 19,500 crore aims to establish an integrated solar photovoltaic manufacturing ecosystem in India across ingots, wafers, cells and modules. This can stimulate investments of around Rs. 94,000 crore and generate about 2 lakh direct jobs according to government estimates. Along with import duty of 40% on solar modules, the PLI scheme intends to discourage imports and make India self-reliant for meeting its massive solar deployment goals.

Green Hydrogen and Energy Storage

Budget Highlights: 

- Allocation of Rs. 35,000 crore towards initiatives for green hydrogen and energy storage

- Waiver of ISTS charges for projects contracting green hydrogen and ammonia for 3 years

The budget provides fresh impetus for green hydrogen production, which will be crucial for decarbonizing heavy industry, long-haul transport and grid balancing. The Rs. 35,000 crore outlay would facilitate R&D, pilot projects, electrolyser manufacturing and incentives for hydrogen production until 2024-25. 

Waiving inter-state transmission charges for green hydrogen projects will enhance viability of production near renewable energy resources and consumption centres. Along with the National Green Hydrogen Mission launched in 2021, these moves can spur domestic manufacturing, infrastructure development and demand across refineries, fertilizers and other sectors.

The budget also focuses on energy storage, vital for managing the variability in renewable energy generation. Support for battery technologies and grid-scale storage solutions will likely be part of initiatives under the Rs. 35,000 crore outlay.

Electric Mobility Infrastructure

Budget Highlights:

- Scheme for battery swapping policy to enable affordable EV charging infrastructure 

- Exemption from basic customs duty on capital goods imports for lithium-ion cell manufacturing 

The budget aims to enhance electric vehicle adoption by resolving issues of upfront cost and lack of charging infrastructure. The battery swapping policy will create standardization and interoperability for swappable batteries to be deployed across battery stations. This reduces EV ownership cost by detaching battery from vehicle purchase.

Customs duty exemption for Li-ion cell manufacturing equipment can enable investments in augmenting domestic production currently dependent on imports. Expanding local cell manufacturing will drive economies of scale to bring down costs.

With Fame II scheme, PLI schemes for ACC batteries and auto sector already in place, these provisions will likely stimulate an acceleration in EV sales. The budget advances India's drive to achieve 30% EV share in private cars, 70% in commercial vehicles and 80% in two and three-wheelers by 2030.

Energy Efficiency initiatives 

Budget Highlights

- Expand coverage of Improved Cook Stove program from 125 aspirational districts to additional 172 districts

- Revamped reforms-based power distribution scheme with outlay of Rs. 3,059 crore  

- National Programme on High Efficiency Solar PV Modules to incentivize manufacturers for extra efficiency

The budget seeks to boost energy efficiency across residential and industrial sectors. Expanding the LPG connections and improved biomass cook-stoves initiative to more districts can reduce indoor air pollution and forest degradation impacts.

The revamped power sector distribution scheme aims to lower aggregate technical and commercial losses through technological upgradation, smart meters rollout and upskilling. This can enhance financial sustainability of DISCOMs and improve reliability and efficiency in electricity supply.

Promoting high efficiency PV modules can further optimize land and transmission infrastructure usage as India targets higher solar shares. Efficiency requirements disincentivize outdated technologies.

Waste Management and Circular Economy 

Budget Highlights

- Outlay of Rs. 3,400 crore for waste management based on principles of circular economy

The budget provides fresh momentum for waste management efforts through principles of reduce, reuse, recycle following a circular economy approach. This includes 100% waste recycling under the Swachh Bharat Mission 2.0.

The allocated funds could potentially help scale waste management systems across India, enable technological upgrades in recycling processes, upgrade and integrate informal waste collector networks, promote producer responsibility for packaging waste, and support awareness campaigns.

Effective waste management systems will be crucial as urbanization rises. This funding can help significantly increase India's recycling rates across municipal, industrial and agricultural waste.

Air Pollution Abatement

Budget Highlights

- Outlay of Rs. 6,592 crore allocated for air pollution control measures including NCAP implementation

- Machinery imports for air pollution control initiatives exempted from basic customs duty

The budget provides a boost to efforts for improving air quality under the National Clean Air Programme. The Rs. 6,592 crore outlay will facilitate state action plans implementation including expanding monitoring networks, dust control, switching industrial fuels, control mechanisms for power plants and vehicular emissions etc.

Exempting customs duty on related machinery imports can further help municipal bodies, industries and power plants rapidly adopt new technologies for emission reduction.

These provisions come at a crucial time when around 150 cities in India have PM 2.5 levels above safe limits. The funds will aid targeted action to bring all cities into compliance by 2024.

Green Finance 

Budget Highlights

- Proposal to establish Green Credit Programme under EBRD to fund green infra projects with lending of Euro 1 billion

- Sovereign Green Bonds framework to be notified for low cost financing of public sector green infra projects

The budget aims to ease availability of green finance for funding India's ambitious renewable energy and sustainability programs. The Green Credit Programme with Euro 1 billion EBRD funding provides dedicated external financing for subnational green infrastructure. 

The introduction of a sovereign Green Bonds framework also enables tapping into global sustainable debt capital markets. This can provide large low-cost funds for public green infrastructure like renewable energy parks, electric mobility and metro rail projects.

These provisions will help channelize greater capital flows into India's climate goals contributing to the estimated $10 trillion funding requirement for the energy transition.

Climate Tech Startups 

Budget Highlights

- Climate Tech Startup fund proposed with an outlay of Rs. 1,000 crore for enterprises in climate mitigation, adaptation and resilience

A Rs. 1,000 crore Climate Startup Fund is proposed to provide incubation, research and development support to new enterprises focused on climate solutions. This can encourage indigenous innovations across e-mobility, battery tech, emissions control, carbon capture, low-carbon materials, weather forecasting, microgrids, AJ technology etc.

With the third largest startup ecosystem globally, India can leverage its tech talent pool for developing affordable scalable climate technologies suited to Indian contexts. The fund can help build a pipeline of investible climate tech ventures.

Mission Amrit Dharohar and GOBARdhan scheme

Budget Highlights

- Funding for energy efficiency works under the revamped Mission Amrit Dharohar for cultural heritage sites 

- Expanding coverage of GOBARdhan scheme to all villages under Swachh Bharat Mission Grameen-II

The budget also provides focused sustainability funding for India's cultural heritage through the Ministry of Culture. Energy efficiency upgrades like optimized lighting, improved thermal performance and solar rooftops will be implemented across museums, forts and archaeological sites under Mission Amrit Dharohar. This can reduce emissions from these high-footfall landmarks.

Expanding the GOBARdhan scheme can aid the management of rural organic waste including cattle dung by supporting biogas plants installations. This provides clean cooking fuel in villages while avoiding methane emissions and groundwater contamination from waste.

Overall, the budget's green outlay signals strong government commitment to accelerate India's energy transition and build climate resilience.

Projected Outcomes 

The budget's green energy and sustainability proposals if implemented effectively could drive substantial positive impacts:

- Mobilizing over $125 billion in renewable energy investments and 3 million green jobs by 2025

- Installing over 125 GW of solar power by 2024-25, contributing to the 530 GW by 2025 target

- Setting up 5-10 GW scale electrolyser manufacturing capacity and 10+ GW green hydrogen production by 2025

Here is the continuation of the essay on green energy budget highlights and projected outcomes:

- Building reliable solid-state battery manufacturing exceeding 50 GWh capacity by 2025

- Accelerating EV sales to surpass 10 million annual units by 2025, enabling 30% EV share in new sales

- Avoiding over 150 million tonnes of annual CO2 emissions by 2025 through clean energy shift

- Providing clean cooking access to over 30 million additional households by 2024

- Reducing air pollution in over 100 cities to meet WHO standards for PM2.5 by 2024

- Doubled recycling rates across municipal solid waste, e-waste, plastic waste and industrial waste by 2025

- 1,00,000 green startups incubated through Climate Startup fund by 2030 

- Unlocking over $15 billion foreign green capital inflow through Green Credit Programme and Green Bonds 

- Mission Amrit Dharohar upgrades reducing carbon footprint of 3,000 heritage sites by over 30%  

- Doubling farmer earnings from waste-based biogas plants under GOBARdhan scheme 

- Moving India closer towards the net zero goal through accelerated renewables expansion and green hydrogen adoption

- Enhancing climate resilience across key economic sectors and vulnerable communities.

Thus, the budget lays a strong foundation for low carbon transition, unlocking sustainability investments, generating green jobs, reducing import dependence and building Atmanirbhar Bharat. Focus must now be on expeditious follow-through especially in renewable energy, EV infrastructure, storage solutions, green hydrogen and waste management. 

Continued policy stability, addressing risks like rising EV battery imports and integrating informal waste workers will be key. Leveraging public finance to mobilize larger private capital flows will give further impetus. 

The targeted incentives across supply chains of priority green technologies offers valuable lessons for the future. But additional interventions like carbon pricing may be needed going ahead.

Overall, Budget 2024 sets the stage for India to simultaneously pursue economic growth and climate commitments in the Amrit Kaal. Realizing the full potential will require meticulous implementation, regular monitoring and course corrections by the Centre in partnership with states, industry and civil society.

With the world's fastest growing green energy transition underway in India, realizing these budget goals can inspire other emerging economies also to embark on cost-effective,employment-generating low carbon pathways. The proposed measures make green growth and sustainable prosperity for all more attainable in India.