India’s Budget 2024 signifies a major stride in climate commitment. Key initiatives announced by Finance Minister Nirmala Sitharaman aim to accelerate the energy transition and ensure a sustainable future.
a. The development of a climate finance taxonomy is a significant step, signaling investors and enhancing capital availability for climate adaptation and mitigation. The Climate Policy Initiative (CPI) has contributed to the draft of the sustainable finance roadmap led by the Climate Finance Unit (CFU) under the Ministry of Finance.
b. The budget emphasizes the expansion of renewable energy and achieving energy security by setting emission-based targets for ‘hard-to-abate’ sectors. This aligns with CPI’s work on industrial decarbonization, transition strategies, and carbon rating tools.
c. Promoting climate-resilient agricultural practices and improving flood management infrastructure are crucial measures announced to protect farmers and counter extreme weather risks. These initiatives are closely linked to CPI’s efforts to map sustainable finance flows in India’s agriculture sector and finance adaptation efforts.
CPI remains committed to supporting India’s journey towards sustainability and resilience. Read more here