The Union Budget 2021-22 is clearly a plan to bolster the nation's financial stability that has been down in the doldrums due to the pandemic. But, can the recovery plan, announced on the heels of India being ranked seventh on the Global Climate Risk Index 2021, lead to a resilient and regenerative economy? 

Studies point out that despite the Government of India's renewable energy target of 450 GW by 2030, electricity generation from coal-based thermal power plants (TPPs) will still be more than half of the total supply. TPPs release pollutants, such as sulphur dioxides (SOx), oxides of nitrogen (NOx) and particulate matter (PM), which have a serious impact on human health. Coal mining and fly ash from coal combustion pollute both surface and ground water. Additionally, TPPs are responsible for around 40% of India’s total GHG emissions.

Like most of us, Finance Minister, Smt. Nirmala Sitharaman, turned to technology in COVID times, to present the first paperless budget in India’s history. Indeed, it set the mood for what was to come.

The Union Budget 2021–22 is a clear plan to bring the economy back on track. But the current pandemic should have paved the way for a new approach to economic development — one that prioritised environment, ecosystems, and green infrastructure.

Air pollution is one of the biggest threats staring India squarely in the face. A slew of measures to effectively tackle this menace were expected from Budget 2021–22. The budget, however, turned out to be a mixed bag, with more misses than hits as far as India’s fight against air pollution is concerned.

One of the focal points of the Union Budget 2021–22 is the potential of renewable energy — especially solar energy — in reviving the economy. The measures suggested in the Budget could lead to higher indigenisation in the solar energy infrastructure. The Indian solar industry is heavily dependent on Chinese imports at the moment and the emphasis on indigenisation could provide the much-needed thrust to local manufacturers.

The phenomenal rise in personal vehicle use, especially in urban areas, during the pandemic is bound to have serious environmental implications. States and UTs should, therefore, consider implementing the Motor Vehicle Aggregator Guidelines 2020, especially the sections that deal with the aggregation of non-transport vehicles (personal vehicles) and ride pooling.

If India wants to retain the edge as one of the leading steel producers globally, the Government should provide incentives through policies for adoption of hydrogen.

Steel has been the backbone of the Indian economy since Independence. India produced 111 Million tonnes (Mt) of steel in 2018, becoming the second-largest steel producer in the world after China. According to the National Steel Policy, 2017, India’s annual steel production will reach 300 Mt by 2030.

Union Budget 2021 expectations for climate: Talking to Financial Express Online's Bulbul Dhawan, Dr Jai Asundi, Executive Director of think tank CSTEP, shared his views on various domains, their outlook and Budget 2021 expectations for these fields.