​Intent and outcome, Pg8

Key Highlights:

• Union Budget 2021 onwards reflects increasing climate concerns, starting with ₹4,500 crore for local solar photovoltaic production.
• Budget 2026-27 focuses on cement, steel, aluminium, fertilizers, decentralized solar power, greening irrigation pump sets, green hydrogen, and nuclear energy.
• ₹20,000 crore proposed for Carbon Capture, Utilisation and Storage (CCUS) over five years, signaling a pilot phase.
• PM Surya Ghar Muft Bijli Yojana rooftop solar scheme receives ₹22,000 crore in 2026-27, up from ₹17,000 crore (RE).

Detailed Insights:

• Initial climate focus aimed to reduce reliance on Chinese imports for solar tech, but approach to scale and allocations has been disjointed.
• CCUS technology is relevant for sectors with embedded emissions, but scaling it up has proven expensive in other countries like Norway, Canada, and the U.S.
• The EU's Carbon Border Adjustment Mechanism (CBAM) makes industrial decarbonization a matter of export competitiveness, especially for steel and aluminium.
• PM Surya Ghar Muft Bijli Yojana aims to reduce land pressure, transmission losses, and household energy costs, but faces implementation challenges.
• Government extends zero basic customs duty on nuclear plant equipment imports until 2035, but private capital entry remains uncertain due to security and safety concerns.
• Despite budgetary support, green hydrogen sees modest actual spending, highlighting the gap between policy ambition and execution.

Key Concepts Involved:

• Carbon Capture, Utilisation and Storage (CCUS): Technologies that capture CO2 emissions from sources and either reuse or store them.
• PM Surya Ghar Muft Bijli Yojana: Government scheme to promote rooftop solar power generation and reduce electricity costs for households.
• EU's Carbon Border Adjustment Mechanism (CBAM): A carbon tariff on imports of carbon-intensive products into the EU.