Blueprint for sustainable budgetary measures towards a greener India

As India stands on the brink of Union Budget 2024-25, it is imperative to discuss sustainable practices’ integration into the nation’s economic fabric. In an exclusive interview with CXOToday, Anup Garg, Founder, and Director of World of Circular Economy (WOCE), sheds light on the pivotal role that budgetary measures play in India’s journey toward sustainability. Garg unveils insights into the strategic alignment of financial incentives, fostering innovation, and the indispensable role of carbon accounting and offsetting in achieving national decarbonization goals.

Q1: How can the Union Budget 2024 strategically incentivize industries to adopt sustainable practices?

The Union Budget 2024 offers a great opportunity to strategically align financial incentives with industries transitioning to sustainable practices. By offering targeted funds and tax breaks, the government can encourage the adoption of eco-friendly processes in sectors such as manufacturing, energy, and transportation. These industries contribute significantly to carbon emissions, making targeted support instrumental in achieving national sustainability goals. Additionally, it is crucial to consider the impact of global carbon taxes, such as the Carbon Border Adjustment Mechanism (CBAM), on carbon-intensive industries like aluminium, cement, iron & steel, etc. Industries facing potential losses due to such measures will require specific government support to transition to more sustainable practices. The budget can allocate funds to help these sectors invest in research and development of greener technologies, implement energy-efficient processes, and retrain their workforce for a sustainable future. Identifying and prioritizing an industry’s most-in-need requirement should be based on its impact on environmental impact, economic significance, and vulnerability to global sustainability regulations.

Q2: How does the budget contribute to fostering innovation in sustainable industries?

To foster innovation, the budget should extend grants for businesses committed to research and development in sustainable solutions. This encompasses advancements in renewable energy, carbon accounting, and circular economy practices. These grants act as catalysts, creating a culture of innovation within industries committed to sustainable practices. Just to give an example to be more clear, in transportation- people traveling via train, buses or planes could be given an option to get a tax break for the money they spent on buying offsets. In fashion, there can be reduced sales tax for consumers buying more sustainable clothing. In agriculture, there can be subsidized rates for more eco-friendly (e.g. with less water requirement) agri commodities. E.g., sugarcane requires a lot of water whereas lettuce, spinach, and cucumbers require less water.

Q3: How important are carbon accounting and offsetting towards India’s decarbonization journey? What role do financial incentives play in encouraging businesses to actively participate in carbon offset programs?

Carbon accounting and offsetting are critical components of India’s decarbonization journey. Carbon accounting is important because if we cannot measure, we cannot manage our emissions. Once measured, only an organization figures its hot spots for emissions and tries to optimize it and finally offset it by carbon credits. The budget can recognize this by introducing financial mechanisms and incentives for businesses engaging in carbon offset programs. Financial benefits, such as tax incentives, can encourage businesses to actively participate in projects aimed at reducing or offsetting their carbon footprint, aligning with national decarbonization goals.

Q4: How can the budget empower businesses with the knowledge and skills needed for sustainable operations?

The budget can empower businesses through the allocation of funds for capacity-building programs. Initiatives like training programs, workshops, and awareness campaigns can equip businesses with the knowledge and skills necessary for sustainable operations. Hands-on training programs conducted by experts in the sustainability domain can provide businesses with invaluable insights into the specific challenges and opportunities within their own operations. These experts can analyze the environmental impact of the entire value chain, identifying areas where emissions are high and recommending changes to achieve sustainability goals. This investment in sustainable education will contribute to a more widespread adoption of sustainable practices across industries.

Q5: In what ways can the budget encourage states to adopt localized solutions aligned with national decarbonization goals?

The budget can encourage states to adopt localized solutions by providing financial incentives and technical support. Acknowledging Odisha’s ground-breaking carbon budget initiative, state-level budgets can be earmarked for sustainable projects that align with national decarbonization goals. This approach fosters a collaborative effort, ensuring that sustainability becomes a shared responsibility across regions. This decentralized approach ensures a holistic and diversified effort toward a greener India.

Q6: WOCE provides sustainability solutions. How could it help industries align with the country’s decarbonization goals, and where WOCE feels that players like you need support from the Government (budget)?

WOCE Solutions Pvt. Ltd., a global leader in end-to-end sustainability solutions, strives to drive businesses toward sustainable practices. Our collaboration with EKI Energy Services Ltd., uniquely positions us to offer advisory, technology, and carbon market solutions. From strategic guidance and innovative products like Carbon Ledger to global carbon offset initiatives, WOCE empowers diverse sectors, facilitating real-time carbon tracking and efficient carbon credit trading. Our industry-agnostic approach caters to sectors including Oil and Gas, Logistics, Food and Restaurants, Utilities, Manufacturing, Services, Education, and Entertainment. As an enabler, we facilitate sustainable transformation through technology solutions and consulting services.

While our comprehensive approach caters to various industries, government support is crucial to amplify our impact. Budgetary allocations targeting research and development, incentivizing green technology adoption, and fostering industry collaboration platforms would accelerate the decarbonisation journey and net zero mission. Continued partnership with the government will propel India’s journey toward decarbonization, aligning with national sustainability goals.