Budget 2022 shows commitment to energy transition, climate action

  • Articles
  • Feb 01,22
Proper implementation of action plans and policies (announced in the budget 2022-23) will open doors for the localisation of many green technologies and create a new green technology market in India, says Rudranil Roy Sharma.
Budget 2022 shows commitment to energy transition, climate action

The announcements made in the 'Energy Transition and Climate Action' section of the Budget were a manifestation of the commitments made by the Indian Government during the COP-26 summit earlier year. All these initiatives are welcome moves towards achieving carbon neutrality and will promote actions and investments across the sustainability value chain and create enough opportunities for job creation. 

Proper implementation of these action plans and policies will open doors for the localisation of many green technologies and create a new green technology market in India. There will also be a massive opportunity to create regional hubs to export high-value green products and EPC services. Setting out an ambitious target through 'Panchamrit', well supported through budget announcements and deployment of 'Green Bond' proceeds on public sector projects, are all welcome and right moves in this direction. This will catalyze India's transition to climate-action leadership.

Focus on solar
The additional allocation of ?19,500 crores for Production Linked Incentive will benefit the entire value chain of the solar PV manufacturing industry. This will attract domestic and foreign investment in raw material, cell, and module manufacturing areas. It will also empower the entire domestic manufacturing ecosystem, which will reduce the panels' prices, boost domestic manufacturers' sales, improve India's global competitiveness in solar manufacturing, and make us self-reliant.

Mandate for usage of biomass pellets
If properly implemented, the mandate of 5-7% usage of Biomass Pellets in thermal plants fuel mix will reduce GHG emissions and help solve the chronic pollution-related issue due to stubble burning at the beginning of every winter season. This will boost the domestic biomass downstream industry, resulting in higher income for the farmers, developing many small and micro biomass processing companies, and boosting our rural economy.

Sovereign green bonds and circular economy action plans
The issuing of Sovereign Green Bonds for mobilizing resources for green infrastructure is a step towards achieving carbon neutrality by 2030. India ranked 120th in the global sustainability index in 2021. Although awareness among the corporates is high, implementation is significantly low. This is due to multiple issues such as higher cost of technology, poor ROI, successful projects/references, etc. The public sector can lead such projects, which will become examples/models for the private sectors to follow and implement. This will also bring down the cost of the sustainability technologies and enable wider adoption.

Circular economy action plans will attract investment in sustainable technologies and have multiplier effects such as energy efficiency, minimization of wastages, and employment generation across the sustainability value chain. This is a big step towards achieving carbon neutrality by 2070.

Top 5 expected growth drivers for 2022-23
1. Investment in domestic solar raw material, cell and module manufacturing
2. Investment in sustainable technologies such as Green Hydrogen and Fuel Cells
3. Investment in Biomass downstream sector will boost the rural economy
4. Battery Swapping model can be implemented in the lower end of the market
5. An uptake in energy-efficient audits, contracts, and projects

About the author:
Rudranil Roy Sharma is the Director (Energy & Environment Practice) at Frost & Sullivan.

Related Stories

Gears, Motors & Drives
Danfoss India to focus on localization as it aims for Rs 5,000 cr turnover

Danfoss India to focus on localization as it aims for Rs 5,000 cr turnover

To support the digital transformation in the country, the company has added over 1,400 engineers and invested over $300 million in India to capitalise on the rising green opportunities.

Read more
Pumps & Valves
AspenTech unveils new software to help customers achieve new levels of efficiencies

AspenTech unveils new software to help customers achieve new levels of efficiencies

Aspen Technology Inc (AspenTech), a global leader in industrial software, has announced the availability of its latest aspenONE software release, V14.

Read more
Gears, Motors & Drives
Danfoss India aims to double its revenue to Rs 5,000 cr by 2025

Danfoss India aims to double its revenue to Rs 5,000 cr by 2025

Decarbonization & digitalization are also high on the company's agenda. As a part of its 2025 growth strategy, Danfoss India plans to expand its geographic footprint in India, improve localisation o..

Read more

Related Products

Hi There!

Now get regular updates from IPF Magazine on WhatsApp!

Click on link below, message us with a simple hi, and SAVE our number

You will have subscribed to our Industrial News on Whatsapp! Enjoy

+91 84228 74016

Reach out to us

Call us at +91 8108603000 or

Schedule a Call Back