India is set to significantly increase its financial commitment to green initiatives in the coming fiscal year. A senior official revealed an impressive 44% rise in the budget for eco-friendly projects and schemes, utilising the proceeds from sovereign bonds. This strategic financial boost is part of India's broader effort to diminish its carbon footprint and achieve its ambitious goal of net-zero emissions by 2070.
Wild elephants walking through Periyar National Park in India.
The finance ministry's expenditure plan for FY25 outlines a substantial allocation of ₹32,062 crore towards green projects, a marked increase from ₹22,324 crore in the current fiscal year. This decision stems from proposals across various ministries, highlighting a collaborative approach to tackling environmental challenges.
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The issuance of green bonds will play a pivotal role in this financial strategy. Although the exact amount will be determined later, projections suggest the issuance could range between ₹25,000 to ₹30,000 crore in FY25, up from ₹20,000 crore this year. This move ensures that the expenditure on green initiatives not only aligns with the raised funds but also remains transparent, addressing any concerns over the potential misuse of these resources.
Interestingly, nearly half of the green investment is earmarked for the railways, reflecting a significant push towards enhancing energy efficiency and sustainability in public transportation. Other key areas include renewable energy, housing, urban affairs, and projects aimed at nature conservation.
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This financial commitment is a testament to India's dedication to environmental stewardship and its proactive steps towards achieving a greener, more sustainable future.
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