INTRODUCTION

Clean Technology, commonly called cleantech or green tech, encompasses environmentally friendly technologies that aim to minimize or optimize natural resource utilization, thereby reducing the negative impact on the environment and ecosystems. Clean technology focuses on developing solutions that do not pollute or harm the environment. Examples of cleantech include innovative sustainable energy sources such as wind and wave power and advancements in conventional energy production processes like intelligent electric grids. These solutions are integral to addressing human-induced climate change, emphasizing the need for economically viable technologies capable of evolving into profitable ventures, attracting investments, and fostering further development.

While cleantech is often said to be Greentech, it is essential to note that in contemporary times, it distinguishes itself from other terms such as green business, sustainability, or triple bottom line industries due to its roots in the venture capital investment community. It has evolved into a business sector encompassing high-growth industries like solar, wind, water purification, and biofuels. Unlike traditional environmental technology or ‘green tech’ popularised in the 1970s and 80s, cleantech represents new technologies and business models offering competitive returns for investors and customers while addressing global challenges. According to experts, it is crucial to understand that cleantech goes beyond being ‘green.’ It should be distinct from terms like environmental technology or green tech, which historically focused on regulatory-driven, ‘end-of-pipe’ solutions with limited opportunities for attractive returns.

Conversely, Cleantech addresses the root causes of ecological problems, incorporating new science and emphasizing natural approaches like biomimicry and biology. Unlike the traditionally small, regulatory-driven markets associated with greentech, cleantech is characterized by productivity-based purchasing, enjoying broader market economics, more significant financial upside, and enhanced sustainability.

ORIGIN OF CLEAN TECHNOLOGY

The concept of cleantech emerged from a cluster of emerging technologies and industries rooted in principles of biology, resource efficiency, and advanced production methods within fundamental industries. Notable examples include energy efficiency, non-toxic materials, water purification, selective catalytic reduction, solar energy, wind energy, and innovative approaches for energy conservation. The 1990s saw a growing interest in these technologies, driven by decreasing costs and an increased awareness of the environmental impact of 19th and early 20th-century industrial practices. Phenomena like the ozone hole, acid rain, desertification, climate change, and global warming prompted this heightened awareness. The term cleantech gained prominence in the late 1990s and early 2000s within the venture capital (VC) investment sector, notably popularised by Nick Parker and Keith Raab, founders of the Cleantech Group, in 2002.

In the mid-2000s, the clean tech sector experienced a significant investment boom, reaching $75 billion in 2006, with Heliovolt, a solar energy company, securing $230 million in funding. Investments continued to surge between 2006 and 2007, with expectations of the market tripling or quadrupling by 2012. However, the clean tech sector faced a sudden downturn in 2018, marked by a decline in venture capital investments until 2016, and this period highlighted the challenges and fluctuations inherent in the clean tech industry despite earlier optimism and substantial investment.

IMPLEMENTATION OF CLEANTECH WORLDWIDE

India is a notable success story in sustainable development, transforming into a global clean energy powerhouse. Despite being the third-largest greenhouse gas emitter, India has strategically shifted from fossil fuels to renewable energy sources, particularly solar and wind. This ongoing commitment has significantly boosted the country’s renewable energy capacity, reaching around 80 gigawatts in installed capacity by 2019, demonstrating a compound annual growth rate exceeding 20%. By steadily expanding its renewable capacity, India is making substantial progress toward the goals outlined in the Paris Agreement, resulting in a substantial reduction in carbon emissions. The transition to renewable energy ushered in technological advancements. It positively impacted employment, generating approximately 330,000 new jobs by 2022 and a projected 24 million new jobs by 2030, as the International Labour Organization reported in the renewable energy sector.

Germany has emerged as a global leader in renewable energy, particularly in the aftermath of Japan’s 2011 nuclear power plant meltdown, prompting the decision to phase out all 17 reactors by 2022. Aiming for 80% reliance on renewable energy by 2050, Germany, currently at 47% (2020), has intensified offshore wind energy investment efforts, anticipating that one-third of the country’s total wind energy will result from these endeavours. Clean technology has also significantly impacted Germany’s transportation sector, which is responsible for 17% of emissions. Renowned German car manufacturers like Mercedes-Benz, BMW, Volkswagen, and Audi contribute to the country’s energy transition by introducing new electric cars.

Africa and the Middle East have gained global attention for their potential in solar electricity. Countries in the Middle East, endowed with abundant oil and gas resources, have been harnessing their natural wealth to develop solar electricity. Additionally, energy ministers from 14 Arab nations have signed a Memorandum of Understanding for an Arab Common Market for electricity, signalling a collective commitment to developing the electricity supply system using renewable energy.

INTERIM BUDGET FOR CLEAN TECHNOLOGY IN INDIA

The 2024-25 Union Budget holds significant importance amid the escalating threat of climate change and the global shift towards cleaner energy systems. It is anticipated to advance the nation’s efforts to establish a more sustainable energy ecosystem by streamlining policies and facilitating investments.

The budget for the fiscal year 2024-25 includes several significant allocations and targets for the climate and energy sectors. Noteworthy points from the budget are as follows:

1. The grid-based solar power scheme is set to receive Rs 10,000 crore in 2024-25, a substantial increase from the Rs 4,757 crore allocated in the revised estimates for 2023-24.
2. Wind power has been allotted Rs 930 crore in the fiscal year 2024-25, a slight increase from the Rs 916 crore allocated in 2023-24.
3. A plan to bring 10 million houses under the rooftop solar scheme has been proposed, with each house to receive 300 units of free electricity per month.
4. Viability gap funding (VGF), which is intended to assist economically feasible projects but slightly below financial viability, will support the development of the initial capacity of 1 gigawatt in offshore wind energy projects.
5. There is a commitment to establish coal gasification and liquefaction facilities with a capacity of 100 tonnes by the year 2030.
6. The National Green Hydrogen Mission has been allocated Rs 600 crore in the financial year 2024-25, a significant rise from the Rs 100 crore allocated in 2023-24.
7. The budget estimate for the Union Ministry of Environment, Forests, and Climate Change (MoEFCC) increased to Rs 3,265.53 crore from Rs 3,079.4 crore in 2023-24.
8. The Union Ministry of New and Renewable Energy (MNRE) has witnessed a budget estimate increase to Rs 12,850 crore from Rs 10,222 crore in the previous year.

The 2023 budget marked a significant departure towards advancing clean energy and fostering a sustainable future for India, with a prominent focus on ‘Green Growth’ among the identified priorities. Notable measures were introduced to support this objective, including a Rs19,700 crore allocation to the Green Hydrogen Mission, Viability Gap Funding for 4,000 MW hours of battery storage capacity, and the introduction of the Green Credit Programme. In particular, Rs 35,000 crore was earmarked for priority investments in energy transition and achieving Net Zero goals, with Rs 30,000 crore specifically designated to provide capital support to oil marketing companies for projects related to energy transition, energy security, and achieving Net Zero emissions by 2070. However, any mention of a similar allocation for energy transition was absent in the subsequent year’s budget announcement.

Allocating resources for developing smart grids and energy storage is vital in Budget 2024 to seamlessly integrate renewable energy into the grid, aligning with India’s climate goals. This initiative not only contributes to job creation but also drives economic growth. Additionally, investments in research and development for emerging technologies are essential to fortify India’s new energy landscape and enhance systemic efficiencies.

In summary, Budget 2024 is positioned as a catalyst in steering India towards a cleaner and more sustainable future. The budgetary measures proposed will play a pivotal role in shaping the trajectory of India’s sustainable energy initiatives, influencing the country’s global position in the clean energy landscape. Ultimately, Budget 2024 signifies India’s unwavering commitment to embracing a responsible and environmentally conscious future.

CONCLUSION

In conclusion, we have examined how the Interim Budget 2024 is crucial for making India’s energy more environmentally friendly. Clean technology, which focuses on eco-friendly solutions, has become a big deal globally. India and other countries are making efforts to use renewable energy sources like solar and wind power. Germany, for example, is a leader in this, especially after deciding to phase out nuclear power. Now, talking specifically about India’s budget, a good amount of money is set aside for clean energy projects. They plan to invest a lot in solar and wind power, make houses use solar energy, and support offshore wind energy projects. There is also money for a Green Hydrogen Mission and more funds for environmental and renewable energy ministries.

The 2023 budget laid the groundwork for clean energy initiatives, emphasizing ‘Green Growth’ and allocating substantial funds to crucial projects. However, the subsequent year’s budget needed a similar focus on energy transition, leaving some expectations unmet. Looking ahead to Budget 2024, there is a call for strategic allocations for smart grids, energy storage, and research and development to fortify India’s position in the global clean energy landscape. Budget 2024, therefore, stands poised to act as a catalyst, steering India towards a cleaner, more sustainable future, reflecting the nation’s commitment to responsible and environmentally conscious practices.