India Should Stop Being Measly On Its Green Spends

• India’s budgetary allocations for the Ministry of Environment, Forest and Climate Change (MoEFCC) have seen only marginal increases in recent years, failing to address escalating environmental challenges. The climate action plan funding from 2022-23 was dropped in later years, highlighting the urgent need for a decisive boost in green spending in the 2025-26 budget.
• The budget for MoEFCC was ₹33.3 billion in 2024-25, up by 3.07% from ₹32.3 billion in 2023-24, which was 35% higher than ₹23.9 billion in 2022-23.
• The allocations are insufficient to address India's environmental challenges and the climate crisis.
• The budget had an allocation of ₹319.8 million in 2022-23 towards Climate Change Action Plan but none in successive fiscals.
• The development and implementation of the climate finance taxonomy proposed in the 2024-25 Union budget requires serious consideration.
• India's role in global climate leadership has become more crucial post-USA exit from the Paris Agreement and WHO.

While the rise in the MoEFCC's budget for 2024-25—even if marginal—was welcome, the total allocation was woefully short of what is needed to tackle the multifaceted environmental issues confronting India. From air pollution in our cities to deforestation, biodiversity loss, and the looming spectre of a climate crisis, the challenges are immense and require a commensurate financial commitment.

India's position as one of the world's most vulnerable countries to climate change demands a more robust response. This is particularly important given India's emerging role as a global climate leader, especially after the United States' withdrawal from the Paris Agreement and the World Health Organization. As a major developing economy, India's commitment to environmental protection and climate action has become even more critical in maintaining global momentum on these issues.

The economic costs of environmental degradation and climate impacts are already significant and are projected to escalate dramatically in the coming years. By continuing to allocate meagre resources to environmental protection and climate mitigation, we are essentially mortgaging our future and that of generations to come.

The government's hesitation to substantially increase green spending is often justified by citing competing developmental priorities, but this approach fails to recognise the intrinsic link between environmental health and sustainable economic growth. Clean air, water, and soil are not luxuries but fundamental prerequisites for a thriving economy and a healthy populace.

Moreover, investing in green initiatives presents a unique opportunity for India to position itself as a leader in the global transition to a low-carbon economy. By allocating more funds to renewable energy, sustainable agriculture, and green technologies, we can create millions of jobs, boost innovation, and enhance our competitiveness in the international market.

The 2024-25 budget's slight increase for the MoEFCC was particularly disappointing when viewed against the backdrop of India's international commitments. At various global forums, including the Paris Agreement, India has pledged to reduce its carbon emissions and increase its forest cover. Achieving these ambitious targets requires substantial financial backing, which the current allocation fails to provide.

It's imperative that the government recalibrates its approach to environmental spending in the 2025-26 budget. This should involve not just increasing the overall allocation manifold but also ensuring more efficient and targeted use of funds. Key areas that demand substantive environmental spending are:

1. Climate change mitigation and adaptation: Significantly boost funding for renewable energy projects, energy-efficient technologies, and climate-resilient infrastructure.

2. Biodiversity conservation: Increase investments in protected areas, wildlife corridors, and conservation programmes to halt and reverse biodiversity loss.

3. Pollution control: Allocate more resources to tackle air, water, and soil pollution, including funds for clean technologies and enforcement of environmental regulations.

4. Sustainable urban development: Invest in green urban planning, waste management, and public transportation to create more livable and environmentally friendly cities.

5. Research and innovation: Enhance funding for environmental research, monitoring, and development of green technologies.

6. Environmental education and awareness: Increase allocation for programmes that promote environmental consciousness and sustainable practices among citizens.

The government should also explore innovative financing mechanisms to supplement budgetary allocations. This could include green bonds, carbon pricing mechanisms, and public-private partnerships for environmental projects.

The Finance Minister's proposal for a climate finance taxonomy in the 2024-25 Union budget was a positive step. This taxonomy, which aims to define and categorise green activities and investments, should be fully developed and implemented in the 2025-26 budget. It will provide much-needed clarity for investors and businesses, potentially unlocking significant private-sector funding for environmental initiatives.

Environmental considerations should be mainstreamed across all sectors of the economy. Every ministry and department should have dedicated funds to ensure the environmental sustainability of their activities.

Developing and implementing a robust environmental budget requires extensive stakeholder engagement. This includes public consultations, expert dialogues, industry collaborations, partnerships with civil society, and international cooperation. Such inclusive approaches lead to more effective policies, foster shared responsibility, and bridge the gap between policy and reality. It also builds public support by demonstrating direct benefits to communities and the economy.

Let's hope the government seizes it and makes a bold commitment to India's environmental future. The time for token increases is over; what we need now is a transformative investment in our planet and our future.