Source: DTE, DTE

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Context

The Union Budget for 2025-26, presented by Finance Minister Nirmala Sitharaman, places a strong emphasis on accelerating India’s green transition through clean energy initiatives. However, despite the significant funding for clean energy and mobility, climate adaptation has been largely neglected. With India being the 7th most vulnerable country to climate impacts as per the Economic Survey 2024-25, the absence of substantial adaptation funding is a major shortcoming. 

Key Focus Areas of the Budget

1. Clean Energy and Green Transition

2. Climate Adaptation: A Critical Gap

• Despite the Economic Survey 2024-25 highlighting the urgency of climate adaptation, the budget failed to allocate adequate funds for this area.
• The Ministry of Environment, Forest, and Climate Change received Rs 3,412 crore, a 2.5% increase from the previous year’s Rs 3,330 crore. However, past records show that these funds were not fully utilized.

• Key Criticisms:

• • • Lack of focus on issues like air pollution, river rejuvenation, and other climate adaptation measures.
    • Agriculture remains at the forefront of adaptation efforts, but the absence of climate resilience funding for rural communities is concerning.

• Agricultural Adaptation:

• • • Pradhan Mantri Dhan-Dhaanya Krishi Yojana announced 100 low-productivity districts to improve agricultural productivity, promote crop diversification, and enhance post-harvest storage.
    • Concerns over the climate adaptation finance gap: Areas like the Sundarbans may need 3 times their GDP to support adaptation.

3. Nuclear Energy: 

• The expansion of nuclear energy is seen as a bold move in the transition to clean energy, but it comes with high capital expenditure and risks related to nuclear safety and waste management.
• Questions about how nuclear expansion will be funded and the financial risks involved.

4. Adaptation in India: Where Are the Funds?

• The term ‘climate’ appeared only three times in the budget speech.
• ‘Adaptation’ was not mentioned at all, and ‘resilience’ was referenced only a few times.

• Changes in Budget Allocation for Adaptation

• • • Important climate programs like the National Adaptation Fund, Climate Change Action Plan, and the National Mission on Himalayan Studies have been shifted to the ministry’s secretariat, with no specific budget outlay for these projects.
    • No allocation for the National Adaptation Fund since 2022-23, with actual expenditure in 2022-23 being:
      • National Adaptation Fund: Rs 21.95 crore.
      • National Mission on Himalayan Studies: Rs 26.60 crore.
      • Climate Change Action Plan: Rs 31.98 crore.

5. Reduced Budget for Coastal and Ocean Adaptation

• National Coastal Mission : Budget reduced from Rs 8 crore to Rs 2 crore for sustainable coastal management.

• Ocean Services : The Ocean Services, Modelling, Application, Resources, and Technology scheme received no budget allocation for 2024-25 and 2025-26. 

• This scheme is crucial for understanding changes in the Indian Ocean, which affect tropical cyclones and monsoons.

6. Positive Steps for Adaptation:

• National Mission for a Green India:

• Increased allocation: Rs 220 crore (up from Rs 160 crore in 2024-25).
• Focus on afforestation and fire management.

• Mission Mausam:

• Government of India introduced 'Mission Mausam' on September 13 2024, with a budget outlay of Rs 2,000 crore over 2024-26 to make India ‘Weather-ready and Climate-smart’.
• Mission components:

• 50 Doppler Weather Radars

• 60 Radio Sonde/Radio Wind stations

• 100 Disdrometers

• 10 Wind Profilers

• 1 Urban testbed

• 10 Marine Automatic Weather Stations

7. Economic Survey 2024-25 Highlights the Need for Climate Adaptation

• Urgent Need for Adaptation Measures

• The Economic Survey 2024-25 emphasized the importance of climate adaptation to counter the extreme impacts of global warming and climate change.
• Adaptation finance remains a key issue, with inadequate international climate finance for India's needs.

• National Adaptation Plan (NAP)

• The MoEFCC is developing the National Adaptation Plan (NAP), which outlines India’s climate resilience priorities across regions and sectors.

• Sector-Specific Adaptation Strategies

• Agriculture: Focus on climate-resilient seeds, soil health, enhanced groundwater resources, and modified cropping practices.
• Urban Areas: Efforts to tackle extreme heat, urban flooding, and water scarcity through programs like the National Mission on Sustainable Habitat.
• Coastal Areas: Emphasis on mangrove restoration, sea walls, and shoreline protection.

• International Climate Finance Challenges

• Domestic adaptation spending rose from 3.7% in 2016 to 5.6% in 2022, but international climate finance remains insufficient.
• The New Collective Quantified Goal (NCQG) aims to mobilize USD 300 billion annually by 2035, but USD 5.1–6.8 trillion is needed by 2030.

• Developed Nations’ Responsibility

• • • The Economic Survey calls out developed nations for not fulfilling their responsibility in emission reductions and adaptation finance.

Conclusion

While the Budget 2025-26 includes positive steps such as the increase in funding for the National Mission for a Green India and the launch of Mission Mausam, it fails to adequately address climate adaptation. There is a critical need for increased investment and a comprehensive adaptation strategy to protect vulnerable regions and sectors from the growing impacts of climate change.

Source: DTE, DTE