Budget 2024 Has a Green Blueprint for Flood Resilience and Climate Action

The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman on 23 July, is a pivotal document in India's battle against climate change and its concurrent manifestations. Notably, this budget underscores robust initiatives to enhance flood protection, a critical area necessitated by India's geographical and climatic peculiarities.

The measures detailed in this budget reflect an intersection of environmental responsibility and economic prudence, fostering a resilient framework for combating the adverse effects of recurring floods.

Flood Protection Allocations

Flood protection is a prominent focus in Budget 2024, with substantial resources allocated towards implementing and upgrading flood defence mechanisms. This encompasses augmenting drainage systems, constructing flood barriers, and bolstering early warning infrastructures.

The financial dedication to these initiatives indicates the government’s recognition of flooding as not just an environmental issue but a socioeconomic one, affecting agriculture, infrastructure, and human lives.

The constant flooding, exacerbated by climate change, demands a well-coordinated approach. Enhanced funding will facilitate comprehensive flood risk assessments and promote the development and adoption of flood-resistant materials. By focusing on these areas, the government aims to reduce floods' immediate and long-term impacts, ensuring communities are better equipped to face such adversities.

Taxonomy for Climate Finance

A noteworthy highlight in Sitharaman’s speech was the introduction of a taxonomy for climate finance. This framework is geared towards simplifying the availability of capital for climate adaptation and mitigation projects.

By standardising the criteria for green finance, the government strives to attract investments in flood protection and other environmental initiatives. This taxonomy will be pivotal in channelling funds towards projects that align with India’s climate commitments and green transition goals.

The development of this taxonomy will aid in the proliferation of green bonds and climate finance instruments, making it easier for entities to raise funds for flood defences and other sustainable projects at preferential rates. This approach addresses the financial constraints often associated with large-scale environmental undertakings and incentivises private sector participation in climate resilience efforts.

Comprehensive Environmental Funding

Beyond flood protection, the Union Budget 2024 manifests a broad spectrum of environmental initiatives, reflecting a holistic approach to climate change mitigation and adaptation.

The allocation of a whopping Rs 3,330.37 crore to the Ministry of Environment, Forest, and Climate Change (MoEFCC) marks a continuation of increasing financial commitments seen in previous years. This funding is critical for implementing nationwide projects aimed at pollution control, sustainable agriculture, afforestation, and renewable energy development.

A closer examination of the budget documents shows designated funds for specific schemes, such as the National Mission for a Green India, which received Rs 220 crore compared to Rs 160 crore the previous year. This increment underscores the government's escalated efforts to promote afforestation and ecosystem restoration, which are intrinsic to mitigating flood risks and enhancing climate resilience.

Pollution Control and Green Energy Initiatives

An allocation of Rs 858.5 crores for pollution control measures illustrates the government’s endeavour to comprehensively address air and water pollution. Effective pollution control mechanisms are essential for public health and mitigating the environmental factors that exacerbate flood risks.

The budget also emphasises the transition to renewable energy, essential for reducing greenhouse gas emissions and curbing global warming—a key driver of climatic anomalies.

The drive towards establishing a substantial renewable energy capacity, including solar, wind, and nuclear energy, coupled with initiatives like the PM Surya Ghar Muft Bijli Yojana, reflects India's ambitious roadmap for green energy adoption. Enhanced fiscal support for solar panel manufacturing and removal of specific import duties further accentuate the commitment to expanding renewable energy infrastructure.

Innovative Technologies and Hard-to-Abate Sectors

Budget 2024 also pioneers developing and deploying innovative technologies tailored to climate resilience. The roadmap for transitioning hard-to-abate sectors—like shipping, aviation, and heavy industries—towards emission targets clearly indicates the government’s strategic alignment with sustainable development goals.

Policies promoting pumped hydro storage and miniature nuclear reactors signify a forward-looking approach to mitigating the intermittency issues associated with renewable energy sources, ensuring a stable and sustainable energy supply.

International Cooperation and Climate Finance

Climate change, a global challenge, necessitates international collaboration. India’s G20 Presidency in the past year has fostered a commitment to environmentally sustainable growth. This spirit resonates in the Union Budget 2024’s emphasis on climate finance taxonomy, which aligns with global standards and facilitates international cooperation in climate finance.

In essence, Finance Minister Nirmala Sitharaman’s Budget 2024 articulates a robust vision for green budgeting. By integrating substantial allocations for flood protection, promoting renewable energy, and advancing a climate finance framework, India is poised to navigate the complexities of climate change with fiscal measures that are both strategic and impactful.

The amalgamation of environmental resilience with economic strategies in the budget signifies a commendable stride towards a sustainable future, highlighting that India’s commitment to a green transition is sincere and substantive.

Addressing the Gaps

Despite the forward-thinking initiatives highlighted in India’s Budget 2024 for flood protection and climate resilience, notable gaps in green allocation warrant attention. While significant resources have been dedicated to enhancing flood defence mechanisms, the budget could benefit from a more comprehensive approach that includes preventive measures and holistic community-based adaptation strategies.

Firstly, while scaling up infrastructure like drainage systems and flood barriers is essential, the budget lacks a robust allocation for integrated watershed management. Effective watershed management can provide a sustainable solution to mitigate floods while enhancing water resource management. Investment in natural infrastructure, such as wetlands restoration and reforestation, should be prioritised as these solutions often yield multiple ecological benefits, including improved water quality and biodiversity enhancement.

Secondly, the budget’s emphasis on technological innovation in hard-to-abate sectors deserves greater financial commitment. While introducing innovative technologies is promising, concrete funding for research and development in emerging fields, such as climate-resilient crops and sustainable agriculture practices, remains insufficient. These emerging technologies are crucial for building resilience in rural communities that are often the most affected by floods.

Thirdly, community empowerment and equitable access to financial resources are critical components missing in the budget. While a taxonomy for climate finance is introduced, grassroots organisations and local governments often struggle to access these funds. Allocating specific resources for capacity-building initiatives can ensure that marginalised communities are included in climate adaptation efforts and can effectively respond to flood risks.

In sum, while Budget 2024 takes significant steps towards addressing climate challenges, it needs enhanced focus on preventive strategies, community resilience, and equitable financial access to truly fortify flood protection efforts in the face of a changing climate.

(Anjal Prakash is a Clinical Associate Professor (Research) at Bharti Institute of Public Policy, Indian School of Business (ISB). He teaches sustainability at ISB and contributes to IPCC reports. This is an opinion piece and the views expressed are the author’s own. The Quint neither endorses nor is responsible for them.)