The Economic Survey 2024-25 provides a comprehensive analysis of India’s climate and environmental challenges, emphasizing the critical need for strategic investments and policy interventions to achieve sustainable development.
Path to Net Zero Emissions by 2070
India has set an ambitious target to reach net zero emissions by 2070. The survey underscores the importance of substantial investments in renewable energy infrastructure and comprehensive climate strategies to meet this goal. Key areas of focus include:
- Grid Infrastructure Enhancements: Upgrading the national grid to efficiently distribute renewable energy.
- Critical Mineral Sourcing: Securing essential minerals vital for renewable technologies.
- Storage Technology Development: Addressing challenges in energy storage to ensure a reliable power supply.
While India has made significant strides in building renewable energy capacity, challenges persist in scaling these resources effectively. The survey highlights the need to overcome obstacles related to storage technologies and access to essential minerals.
Prioritizing Climate Adaptation
Given India’s vulnerability to climate change and its reliance on coal, the survey advocates for prioritizing climate adaptation strategies over emission mitigation. This approach aims to better manage the immediate impacts of climate change, such as:
- Extreme Weather Events: Increasing frequency and severity of heatwaves, droughts, and floods.
- Water Scarcity: Diminishing freshwater resources affecting agriculture and daily life.
- Agricultural Productivity: Threats to crop yields due to changing climate patterns.
By focusing on adaptation, India aims to build resilience against these challenges, ensuring the well-being of its population and the stability of its economy.
Financial Constraints and Climate Targets
The survey acknowledges that limited financial support could compel India to reassess its climate targets. As a signatory to the Paris Agreement, India is required to submit its climate action plan for 2035 this year. The survey emphasizes the necessity of adequate funding to implement effective climate strategies and meet international commitments.
Economic Implications of Climate Change
Climate change poses a significant threat to India’s economic growth. The survey highlights concerns that climate volatility and demographic challenges could impede progress. Notably:
- Impact on Corporations: Companies like Zomato and Larsen & Toubro have reported operational disruptions due to heat stress and extreme weather.
- Agricultural Vulnerability: A substantial portion of India’s GDP is linked to climate-sensitive sectors, making the economy susceptible to climate-induced disasters.
The survey calls for comprehensive climate econometrics and pragmatic adaptation measures to sustain growth and address climate risks effectively.
Government Initiatives and Budget Allocations
The Union Budget 2025-26 reflects a commitment to accelerating India’s green transition. However, the survey notes that climate adaptation measures remain underfunded, leaving vulnerable communities at risk. The government has introduced initiatives to promote renewable energy and sustainable practices, but further efforts are needed to:
- Enhance Climate Resilience: Implementing projects that protect communities from climate impacts.
- Support Vulnerable Populations: Providing resources and infrastructure to those most affected by climate change.
The survey advocates for a balanced approach that includes both mitigation and adaptation strategies to ensure comprehensive climate action.
Conclusion
The Economic Survey 2024-25 underscores the urgency of addressing climate and environmental challenges through targeted investments, robust policies, and international cooperation. By prioritizing both mitigation and adaptation strategies, India aims to achieve sustainable development while safeguarding its economy and population against the adverse effects of climate change.
References:
- Livemint – Economic Survey 2025: India’s Climate Change Policy and Net Zero Goals
- Outlook Business – Economic Survey 2025: India Must Prioritize Climate Adaptation Over Emission Mitigation
- The Indian Express – Economic Survey 2025: India’s Climate Targets and Financial Constraints
- Financial Times – Economic Survey 2025: Climate Change and India’s Economic Growth
- Financial Times – Economic Survey 2025: Climate Change and India’s Economic Growth
- Down To Earth – Union Budget 2025-26: A Step Towards Green Transition but Climate Adaptation Overlooked
