The budget can provide a booster shot to achieve climate goals

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NEW DELHI: At a time when India is focused on decarbonising its economy, the industry is proposing measures to encourage green mobility in the budget, as well as a transition to the targets set by Prime Minister Narendra Modi in the framework of the United Nations COP26 climate agenda.
“This year’s union budget is a historic opportunity for the government to advance the country’s clean energy agenda like never before. This is the need of the hour, especially if we want to install 450 GW of renewable capacity by 2030. This means we need to double our annual installation from around 16 GW currently to 30-40 GW,” Suman said. Sinha, Chairman and CEO. , ReNew Power, while advocating for aggressive promotion of battery storage and the green hydrogen initiative.

At COP26 in November last year, Modi pledged that India would reach 500 GW of non-fossil energy capacity by 2030 and said 50% of the country’s electricity needs would come from renewable energies. In addition, the Prime Minister also announced that the country would reduce emissions intensity of GDP by 45% by 2030 (compared to 2005 levels) and achieve “net zero” emissions by 2070.
“Reducing duties on storage batteries can reduce their capital cost by up to 30% and help the storage industry find its feet before manufacturing under the PLI program kicks off a few years later. The same for green hydrogen, a promotional framework in the early years via a mandate for users, financing of the viability deficit, a tax on gray hydrogen (similar to the tax on coal) and a reduction in taxes and duties on equipment, will contribute to reducing emissions in the hard sectors. -to reduce industries like fertilizer, steel, heavy transport and chemicals,” Sinha suggested.
Industry bodies such as CII are also looking for policies to promote circular economy principles, with incentives for manufacturers and consumers to produce and purchase products with recycled content. Similarly, benefits for business models that promote product life extension through redesign, refurbishment and remanufacturing have also been suggested.
In addition, a joint initiative with the private sector under the Afforestation Initiative for India to develop a carbon sink of 2.5 to 3 billion tonnes and restore 26 million hectares of land to 2030 was also proposed. Furthermore, detailed discussions took place on green mobility, where several milestones have already been announced in recent months.
Based on a Mckinsey report, industry bodies have identified several issues, with charging stations being a key area of ​​focus – from land identification to issues with utility companies, the preferential parking and those related to taxation.

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