​Intent and outcome: On India’s climate budget for 2026-27

Union Budgets began reflecting greater clime concerns from 2021, successful the heavy of the COVID-19 pandemic, with a humble ₹4,500 crore to localise star photovoltaic accumulation and to trim India’s dependence connected Chinese imports. But determination has been a cautious, disjointed attack to the standard and allocations. While 5 wide sectors (cement, steel, aluminium and fertilizers; decentralised star power; greening irrigation pump sets; greenish hydrogen; and atomic energy) received attraction successful Budget 2026-27, the astir salient announcement was the projected five-year outlay of ₹20,000 crore for Carbon Capture, Utilisation and Storage (CCUS). This is simply a humble proviso for a suite of costly and analyzable technologies. The allocation signals that India is entering a aviator and objection phase, alternatively than embarking connected contiguous concern deployment. While operational examples beryllium successful Norway, Canada and the U.S., scaling CCUS has proven costly and uneven. The exertion is chiefly applicable to sectors wherever emissions are embedded successful the accumulation process. The EU’s Carbon Border Adjustment Mechanism (CBAM) volition enforce c costs connected imports of high-emission products, truthful for India, decarbonising concern accumulation is nary longer lone a clime imperative. It is present a question of export competitiveness, peculiarly for alloy and aluminium, which signifier the bulk of India’s CBAM-exposed exports to the EU.

The Budget besides substantially scales up the PM Surya Ghar Muft Bijli Yojana rooftop star strategy — ₹22,000 crore successful 2026-27 from ₹17,000 crore (RE) for the existent year. It is simply a invited propulsion towards decentralised vigor systems that trim onshore pressure, transmission losses and household vigor costs. However, implementation challenges remain, including discom practice and upfront finance. Similarly, allocations for PM-KUSUM (solar irrigation pumps), person been sustained astatine ₹5,000 crore. Revised estimates suggest stronger-than-anticipated absorption. For atomic energy, the authorities has extended zero basal customs work connected imports of atomic works instrumentality until 2035. While this reduces input costs, atomic powerfulness remains superior intensive, with agelong operation timelines and financing risks. Recent ineligible changes licence backstage participation, but whether backstage superior volition participate a assemblage entwined with nationalist security, information and liability concerns remains uncertain. Green hydrogen, contempt budgetary support, continues to spot humble existent spending, highlighting the persistent spread betwixt argumentation ambition and execution. Overall, India’s clime fund for 2026-27 repeats a pattern: large connected intent, cautious connected allocations, and uncertain successful its quality to mobilise the backstage superior required to accelerate decarbonisation crossed captious sectors.