Budget 2009-10 has two main points related to climate change. The first is a commitment to fund the National Action Plan on Climate Change (NAPCC), which would be soon rolled out in the form of eight different missions for mitigation & adaptation. The other step is related to wind energy projects wherein basic customs duty on permanent magnets, a critical component for wind projects, has been reduced from 7.5% to 5%. Both are positive steps. There is also a one-time special grant of Rs 100 crore to the Indian Council of Forestry Research and Education, Dehradun, to encourage further research.

However, we had higher expectations from this year?s budget because of two main reasons. Firstly, negotiations for a post-2012 Kyoto framework are due to be concluded in December this year in Copenhagen, and stronger commitments shown for climate change issues in the budget would have strengthened India?s negotiating position vis-?-vis developed countries. Secondly, in all fiscal stimulus packages across the world, a considerable part is dedicated towards building a green economy. It had led to expectations that India would also go for a greener economy by providing a big impetus to renewable energy or energy efficiency.

However, as the finance minister said, the budget cannot solve all problems and the budget is not the only means. Hence I am hopeful that the government will consider more seriously the impact of climate change on financial and infrastructural planning. As an industry person I would like following points to be included:

A comprehensive policy, which deals with climate change mitigation and adaptation in an integrated manner, is the need of the hour. These mitigation measures might not need separate grant-based funding. What is rather needed is innovative thinking to integrate sustainable development aspects in our economic policies such as an integrated energy policy, infrastructure development, Rajiv Gandhi Gramin Vidyutikaran Yojana etc.

Using innovative ideas such as readjusting subsidy for kerosene towards solar cookers and solar lighting will not only reduce subsidy burden on kerosene but it will also reduce dependence on imported oil. Cess should be levied on coal-based power projects to support renewable energy projects. Subsidy should be reduced on fertiliser and provided for organic fertiliser.

There should be creation of long-term financing mechanisms so that long gestation technologies could become viable, and clean technology parks and funds. Policy framework should be formulated for cleaner energy generation as well as better energy consumption.

An integrated energy policy that not only looks at development of power plants but also looks at long term sustainable development aspects of various technology options is required. Bottlenecks in selling green power using open access should be removed.

Creation of local markets for energy efficiency trading, carbon trading and renewable energy trading will lead to increased funding through market-based mechanisms.

Climate change shouldn?t be looked at as a risk but as an opportunity. We have got a unique chance to become a leader in green economy just like what we did in IT.

Initial support from government will definitely expedite this process.

?The writer is CEO, carbon advisory business, Emergent Ventures India