The year 2024 was the warmest on record globally since 1850, with India among the most vulnerable nations to climate change. Extreme heatwaves, rising sea levels, erratic monsoons, and worsening air pollution have become the new normal, exacerbating public health crises and economic vulnerabilities. The energy sector alone accounts for 75 per cent of India’s total greenhouse gas (GHG) emissions, followed by agriculture (14 per cent), industrial processes (8 per cent), and waste (3 per cent), as reported in India’s Fourth Biennial Update Report (BUR-4).
Meanwhile, Delhi recorded 155 days of ‘poor’ to ‘severe’ air quality in 2024, with not a single ‘good’ air quality day — an alarming first in six years. India has pledged to achieve net-zero emissions by 2070 and slash emission intensity by 45 per cent by 2030. However, the question remains: Does Budget 2025 provide a roadmap to tackle this mounting crisis effectively? While the Budget prioritises mitigation through clean energy investments, adaptation strategies remain largely overlooked, leaving vulnerable populations exposed to climate risks.
Mitigation: A step forward
Budget 2025 continues to drive India’s clean energy transition, aiming for a low-carbon, energy-secure future. With a target of achieving 500 GW of non-fossil fuel capacity by 2030, the Budget reinforces domestic manufacturing of solar modules, batteries, and electrolysers while enhancing grid infrastructure and securing critical mineral supply chains. India is nearing the 100 GW mark for installed solar capacity, with its total non-fossil fuel-based installed capacity reaching 225.8 GW as of December 2024. This includes 97.9 GW solar, 48.2 GW wind, 46.9 GW hydro, and 8.2 GW nuclear, highlighting steady progress in clean energy.
The Budget balances renewable energy expansion with energy security, allocating funds strategically across sectors. The Ministry of Environment, Forest, and Climate Change (MoEFCC) plays a crucial role, with increased funding to strengthen environmental policies and resilience measures. A holistic approach integrating clean energy, environmental protection, and resource management is essential for long-term sustainability.
Public transport and green mobility also remain crucial in tackling urban pollution and congestion. Budgetary funding for the Dedicated Freight Corridor Corporation of India (DFCCIL) saw a significant decline, signalling the near completion of the much-anticipated Western Dedicated Freight Corridor, which will seamlessly connect Maharashtra with northern India by the end of 2025. Investments in urban logistics hubs, digital tracking systems, and last-mile delivery electrification are set to enhance freight efficiency and reduce emissions.
Adaptation: The missing piece
The Budget reinforces India’s commitment to climate resilience, focusing on both mitigation and adaptation. The Pradhan Mantri Dhan-Dhaanya Krishi Yojana targets 100 vulnerable districts to safeguard agriculture against climate uncertainties, enhancing productivity and resilience. While rural adaptation gains attention, urban climate resilience remains critical. With 600 million Indians expected to live in cities by 2030, the need for climate-proof infrastructure, sustainable water management, and robust public health systems is urgent. Megacities like Mumbai and Delhi face unique challenges, from rising sea levels to extreme heatwaves, necessitating targeted adaptation strategies for long-term urban sustainability.
Air pollution remains a pressing concern, but India has made progress through initiatives like the National Clean Air Programme (NCAP), aiming to reduce pollution levels by 40 per cent across 131 non-attainment cities by 2026. These efforts could significantly improve life expectancy and public health. Subsidies for crop residue management have already curbed stubble burning in key agricultural States. Expanding clean air initiatives and investing in sustainable urban policies are pivotal to addressing pollution-related health risks.
India’s climate leadership was reaffirmed at COP29, with Environment Secretary Leena Nandan emphasising the urgency of pre-2030 action, as 86 per cent of the remaining global carbon budget will be exhausted by then. This highlights the need for proactive measures across sectors to accelerate India’s green transition. By strengthening adaptation strategies alongside ambitious mitigation goals, India can set a global example of sustainable growth, balancing development with environmental stewardship.
A truly resilient climate strategy goes beyond mitigation — it integrates adaptation to protect those most vulnerable to climate risks. The Budget takes significant strides in advancing clean energy and emission reductions, reinforcing India’s commitment to a sustainable future. As climate change reshapes cities and communities, strengthening urban resilience through climate-proof infrastructure, water security, and public health initiatives will be key. With South Asia projected to see significant climate-induced displacement by 2050, proactive adaptation measures can enhance preparedness and ensure inclusive growth. By aligning mitigation and adaptation efforts, India has the opportunity to lead by example, fostering a future where economic progress and environmental sustainability go hand-in-hand. The choices made today will define India’s climate trajectory — one of resilience, innovation, and shared prosperity.
The writer is associated with National Council of Applied Economic Research, New Delhi. Views are personal
