India's Green Energy Agenda: Anticipating Incentives in Union Budget 2025
Key Ideas
  • Focus on Green Hydrogen and Energy Storage: Expectations for incentives in the National Green Hydrogen Mission and Battery Energy Storage Systems.
  • Policy Support to MSMEs: Anticipating measures to facilitate green financing and eco-friendly investments for micro-, small- and medium-enterprises.
  • Helping Businesses to Transition: Calls for actionable policies to empower businesses towards sustainability.
  • Climate Resilience for Rural India: Importance of increasing allocation for climate-resilient agriculture, water management, and renewable energy access in rural areas.
As India approaches its 2030 target of achieving 500 GW non-fossil energy capacity, the focus shifts to bridging gaps in the green energy sector and introducing new incentives. The upcoming Union Budget 2025 is expected to prioritize green energy and clean technologies, with particular emphasis on Green Hydrogen and Energy Storage. Industry experts stress the need for more incentives to expand renewable energy efforts, especially in the green hydrogen sector. The National Green Hydrogen Mission aims to produce 5 million metric tonnes of green hydrogen per year by 2030, requiring financial support for pilot projects. The Budget is anticipated to extend support for initiatives like the Strategic Interventions for Green Hydrogen Transition and Battery Energy Storage Systems. Additionally, policy backing for micro-, small-, and medium-enterprises (MSMEs) is crucial, with calls for easier access to green financing and tax benefits. The Budget is also expected to address the lack of climate finance taxonomy and increase awareness of clean energy. Climate-resilient agriculture, water management, and improved renewable energy access in rural India are highlighted as essential areas for increased allocation and support. Overall, there is a positive sentiment towards the potential incentives and policies that could drive India's green energy agenda forward in the upcoming Budget.
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