India's 2025 Budget Boosts Green Initiatives Amid Funding Concerns

The 2025 Union Budget of India includes significant allocations for clean energy and environmental initiatives, with Finance Minister Nirmala Sitharaman announcing a hike in the income tax exemption limit to Rs 12 lakh aimed at boosting domestic consumption. The budget allocates Rs 25,000 crore for solar energy, reflecting the government's commitment to renewable sources, though it also imposes reductions in funding for wind and other renewable projects. Additionally, the Union Environment Ministry received an allocation of Rs 3,412.82 crore, marking a 9% increase from the previous year, focused on ecosystem conservation and wildlife protection. However, the Economic Survey raises concerns about a potential funding shortfall impacting climate targets, particularly in light of developed countries' failure to meet their commitments under the Paris Agreement. Meanwhile, a report highlights that global investments in green energy reached a record $2.1 trillion in 2024, but stresses that $5.6 trillion annually is needed to stay on track for net zero by 2050. The survey emphasizes that the lack of adequate funding could undermine progress towards sustainable development objectives.