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.

The "scary" air pollution situation in India makes it imperative to gather extensive, credible data on pollution and its sources at a fairly granular level—for every square kilometre of most mid- to large-sized cities, as well as for vast exurban and rural areas. But don't we already have enough information on the pollution levels in cities and also the main culprits? Shouldn't pollution control plans, therefore, be self-evident? The answer to both these questions is a resounding no.

EVs are being aggressively pursued by many countries across the world as one of the solutions to address climate change. Owing to their zero tailpipe emissions, they are expected to counter the harmful effects of emissions from fossil-fuel-based vehicles. However, it is important to note that EVs are sustainable in the long run only if they run on an eco-friendly form of energy. The below figure shows the CO2 emissions related to EVs powered by the electrical grid across different countries. 

Under phase II of the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) India policy, it has been envisioned to introduce 7,000 e-buses across the country by 2025. This initiative has increased e-bus deployment at a rapid rate. However, traditional bus operators are not yet familiar with the planning process and operational needs of e-buses. Unlike traditional buses that require liquid fuels, e-buses depend on the electrical grid for their energy needs.

CSTEP launched the Empower series of blog articles to simplify the power sector for non-technical readers. Through the series, we hope to explain how every step of the journey of electricity affects the consumer. In the first article, we introduced you to the many actors involved in the journey of electricity. The second article of the series explains the costs involved in electricity generation.