India’s Union Budget 2025-26: Advancing Green Growth, Renewable Energy, and Environmental Sustainability

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India’s Union Budget 2025-26 plays a crucial role in addressing environmental concerns, promoting renewable energy, and ensuring sustainable development. The budget reflects the government’s commitment to tackling climate change, improving air and water quality, and conserving biodiversity while supporting economic growth. With increased allocations for renewable energy, forest conservation, wildlife protection, and environmental sustainability, the budget aims to enhance India’s ecological resilience and transition towards a greener future.

Budget Allocation for Environmental and Renewable Energy Sectors

Union Environment Ministry Allocation

The central government has allotted Rs 3,412.82 crore to the Union Environment Ministry, marking a 9% increase from the Rs 3,125.96 crore allocated in 2024-25. This increase demonstrates the government’s focus on ecosystem conservation, wildlife protection, and expanding forest cover.

Renewable Energy Sector

As part of its commitment to achieving 500 GW of non-fossil fuel-based energy capacity by 2030, India continues to prioritize investments in renewable energy. As of January 20, 2025, India’s total non-fossil fuel-based energy capacity reached 217.62 GW.

  • Solar Energy: The government allocated Rs 20,000 crore to accelerate solar energy adoption, particularly rooftop solar programs.

  • Wind Energy: The wind energy sector saw an allocation of Rs 12,500 crore, focusing on offshore wind projects and hybrid renewable energy parks.

  • Green Hydrogen Initiative: To promote the National Green Hydrogen Mission, Rs 5,500 crore has been earmarked to enhance India’s competitiveness in green hydrogen production.

  • Grid Infrastructure Development: Rs 15,000 crore has been allocated to strengthen transmission infrastructure, ensuring seamless integration of renewable energy sources into the national grid.

  • Additionally, the Budget 2025-26 has announced a ₹20,000-crore Nuclear Energy Mission for research and development in small reactors. This initiative aims to enhance India's nuclear energy capabilities, promote safer and more efficient nuclear technology, and support its long-term clean energy goals. By investing in small modular reactors (SMRs), the government seeks to diversify its energy mix, reduce dependency on fossil fuels, and strengthen energy security.

Notable Policy Developments in Renewable Energy

  • PM Surya Ghar: Muft Bijli Yojana, launched in 2024, facilitated 7 lakh rooftop solar installations within ten months and contributed significantly to the 4.59 GW of rooftop solar capacity added in 2024.

  • Off-grid solar expansion witnessed a 182% increase, adding 1.48 GW in 2024, improving energy access in rural areas.

  • Wind power additions reached 3.4 GW, with Gujarat, Karnataka, and Tamil Nadu leading in new capacity.

Biodiversity and Wildlife Conservation

The budget places a significant emphasis on biodiversity conservation and wildlife protection with increased funding across various initiatives:

  • National Mission for a Green India: Rs 220 crore, up from Rs 160 crore in 2024-25, to expand forest cover, protect existing forests, and prevent wildfires.

  • Natural Resource and Ecosystem Conservation: Rs 50 crore, an increase from Rs 30 crore.

  • Biodiversity Conservation: The allocation has nearly tripled, from Rs 3.5 crore to Rs 10 crore.

  • Aquatic Ecosystem Conservation: Rs 35 crore, up from Rs 23.5 crore in the previous budget.

  • Project Tiger & Project Elephant: Funding has been raised from Rs 245 crore to Rs 290 crore, reinforcing efforts to protect these keystone species and their habitats.

Climate Resilience and Sustainable Urban Development

  • Climate Resilient Infrastructure: The budget allocated Rs 25,000 crore for climate-resilient urban planning, focusing on flood mitigation, heat-resistant infrastructure, and sustainable drainage systems.

  • National Adaptation Fund for Climate Change (NAFCC): Rs 3,500 crore has been allocated to assist states in adapting to climate-related risks, particularly in agriculture, water management, and disaster preparedness.

  • Air Pollution Control: Rs 4,200 crore has been earmarked for air quality improvement in major cities, supporting the National Clean Air Programme (NCAP).

Water Conservation and Management

  • Namami Gange Programme: The budget continues strong support with Rs 6,500 crore for cleaning and rejuvenating the Ganga and other rivers.

  • Jal Jeevan Mission: Rs 75,000 crore has been allocated to provide tap water to all rural households.

  • Groundwater Management: Rs 10,000 crore has been allocated to strengthen groundwater recharge efforts.

Circular Economy and Waste Management

  • Waste-to-Energy Initiatives: Rs 3,000 crore has been allocated to boost waste-to-energy plants.

  • Plastic Waste Management: Rs 1,500 crore has been set aside to strengthen plastic recycling infrastructure and promote biodegradable alternatives.

  • Extended Producer Responsibility (EPR): The government continues to enforce stringent EPR guidelines, holding manufacturers accountable for waste management.

Conclusion

India’s 2025 budget reflects a comprehensive approach to addressing environmental challenges while fostering economic growth. The increased allocations for renewable energy, biodiversity conservation, climate resilience, and sustainable urban development demonstrate a firm commitment to a greener future. As India moves forward, continued investment in clean technologies, regulatory reforms, and public-private partnerships will be essential to achieving its environmental sustainability goals.

Welcome to EcoVisionary. I'm Dr. Anitha V, an environmentalist passionate about exploring and sharing insights on the intricate relationship between humans and the natural world. Having successfully completed my Ph.D. in Environmental Sciences, my goal is to raise awareness of pressing environmental issues and inspire actionable solutions for a healthier planet. Through engaging articles, in-depth research, and thought-provoking discussions, I aim to empower readers to embrace sustainable practices and become stewards of the environment. Join me on this journey to create a more sustainable future, where every small step can lead to significant change.

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