Climate
A Green Turn with Gaps: India’s Budget Backs Clean Tech but Skips Climate Adaptation
India’s Budget 2026–27 doesn’t shout climate ambition—but it hardwires it into clean manufacturing, carbon capture and energy supply chains, quietly reshaping the country’s green economy from the inside out.
India’s Union Budget 2026–27 may not carry a standalone climate chapter, but its green intent runs deep through the fine print. From carbon capture and battery storage to critical minerals and clean manufacturing, the budget signals a strategic shift: climate action is no longer framed as an environmental add-on, but as industrial policy and economic risk management rolled into one.
Presented by Finance Minister Nirmala Sitharaman on February 1, 2026, the budget places clean energy and climate-aligned manufacturing at the heart of India’s growth narrative. With a GDP growth target of around 7 percent and a sharp focus on fiscal discipline, sustainability is being embedded into supply chains, cities, transport and finance—quietly but deliberately.
Carbon Capture Takes Centre Stage
The most striking climate-linked announcement is the Rs 20,000 crore allocation over five years for Carbon Capture, Utilisation and Storage (CCUS), aimed at hard-to-abate sectors such as power, steel, cement, refineries and chemicals. For the first time, industrial decarbonisation is being backed at scale through public finance, signalling recognition that renewables alone cannot carry India’s net-zero journey.
As Arunabha Ghosh of CEEW notes, the budget’s “prioritisation of carbon capture, utilisation and storage across power, steel, cement, refineries, and chemicals” places these sectors squarely at the centre of India’s long-term climate pathway. This marks a decisive move from aspiration to infrastructure.

Building the Clean Energy Ecosystem
The energy transition is supported by coordinated allocations across key ministries: Rs 32,915 crore for New and Renewable Energy, Rs 29,997 crore for Power, and Rs 24,124 crore for Atomic Energy. Customs duty exemptions have been extended to lithium-ion cells used in battery energy storage systems, inputs for solar glass manufacturing, and nuclear power project imports till 2035.
Aarti Khosla of Climate Trends captures this shift succinctly: “Coupled with the exemption given to battery manufacturing, VGF for BESS and grant to CCUS, the focus of the government is rightly tilting towards building an energy transition ecosystem.” She adds that continued reforms in power distribution could bring “360-degree improvement in India’s green energy supply chain.”
At the household level, the PM Surya Ghar Muft Bijli Yojana receives a major boost, reinforcing decentralised clean energy as a pillar of inclusive growth. Rooftop solar is increasingly being positioned not just as a climate solution, but as a competitiveness tool for small businesses and urban households.
Supply Chains, Not Just Solar Panels
Rather than headline-grabbing renewable capacity targets, Budget 2026–27 leans into industrial resilience. Duty exemptions for critical minerals processing equipment, solar glass inputs, and battery storage components underline a focus on domestic value addition.
Energy analyst Duttatreya Das of Ember observes that while there are “no big-ticket announcements for renewables,” the continued duty exemptions and manufacturing reforms are expected to “quietly strengthen clean energy supply chains.” This reflects a broader policy philosophy: competitiveness before capacity, foundations before scale.
Rare Earth Corridors and incentives for mineral-rich coastal states further indicate a push to secure upstream inputs essential for EVs, batteries, wind turbines and electronics—areas where geopolitical vulnerabilities are growing.
Clean Mobility and Greener Cities
Sustainability also shapes transport and urban planning. The budget proposes 20 new national waterways over five years, aims to double the share of inland and coastal shipping by 2047, and identifies seven high-speed rail corridors as environmentally sustainable growth connectors. Municipal finance incentives—such as Rs 100 crore support for cities issuing large bonds—open space for green urban infrastructure, including pollution control and climate-resilient services.
Labanya Prakash Jena,Director, Climate and Sustainability Initiative, highlights that such incentives can catalyse “green municipal bonds, particularly for pollution control and urban environmental projects,” linking fiscal reform directly with urban sustainability.
The Gaps That Remain
Despite these advances, the budget remains notably silent on climate adaptation. Heat stress, floods, water scarcity and climate-resilient agriculture receive no scaled-up fiscal roadmap. Vibhuti of IEEFA points out that while support for decentralised renewables and bioenergy has increased, spending on transmission and energy storage has stagnated or declined—areas that are “not optional but indispensable” for a high-renewables grid.
The absence of strong EV demand-pull measures and limited risk-sharing instruments for private capital also signal unfinished business in India’s clean transition.
A Budget of Signals, Not Slogans
Budget 2026–27 is not a climate manifesto. Instead, it is a signal budget—one that rewires incentives, de-risks clean manufacturing, and treats decarbonisation as an economic strategy rather than a moral appeal. Its strength lies in industrial tools and fiscal realism; its weakness, in adaptation and social resilience.
Whether this quiet green turn translates into measurable emissions reductions and climate resilience will depend on execution, state capacity, and private investment. But one thing is clear: India’s clean-tech transition has now entered the core of its economic planning.
Climate
Weather, Not Just Emissions, Driving PM2.5 Pollution in Indian Cities: Study
A new Climate Trends report finds weather conditions can alter PM2.5 levels in Indian cities by up to 40%, calling for season-specific reforms in India’s National Clean Air Programme (NCAP).
A new analysis of India’s urban air quality has revealed that weather conditions can significantly influence pollution levels, sometimes masking the real health burden faced by residents. The report, released by Climate Trends, argues that India’s clean air policies must account for seasonal and meteorological factors to effectively tackle particulate pollution across major cities.
The study analysed Central Pollution Control Board (CPCB) monitoring data from 2024–2025 across six major cities — Delhi, Patna, Kolkata, Mumbai, Chennai, and Bengaluru — and found that meteorological conditions alone can shift pollution levels by up to 40 percent even without changes in emissions.
Researchers say the findings highlight a major gap in India’s National Clean Air Programme (NCAP) and recommend that the upcoming Phase-III reforms include season-specific targets, weather-adjusted evaluation metrics, and dynamic action plans triggered by atmospheric conditions.
Delhi’s extreme winter pollution
The report highlights Delhi as continuing to experience the most severe pollution crisis in the country. The capital recorded the highest annual average PM2.5 levels among the cities analysed and experienced prolonged periods of “Severe” and “Emergency” air quality days.
A particularly alarming finding is that Delhi recorded zero clean air days during winter, despite apparent annual improvements in pollution metrics.
According to the researchers, this discrepancy arises because annual averages can hide seasonal pollution spikes that occur during unfavourable weather conditions such as low wind speeds and high humidity.
“This study shows that a 20–30% reduction in annual PM2.5 does not translate into winter air-quality compliance in stagnation-prone cities like Delhi and Patna, where over 70% of days fall under low-wind, high-humidity meteorological regimes. NCAP Phase-III must therefore adopt season-specific targets, meteorology-triggered interventions, and airshed-level management frameworks to achieve meaningful public-health gains,” Aarti Khosla, Founder and Director of Climate Trends, said in a statement.
Weather plays a decisive role
The report emphasises that air pollution is not simply an “emissions-only” problem. Instead, it is strongly shaped by how emissions interact with atmospheric conditions.
Periods of atmospheric stagnation — characterised by low wind speeds and high humidity — prevent pollutants from dispersing, allowing them to accumulate near the ground and intensify exposure levels for urban populations.
Sagnik Dey, Head of the Centre for Atmospheric Sciences at IIT Delhi, explained the scientific basis for this pattern.
“The persistence of PM2.5 exceedances is strongly associated with sub-1 m/s wind regimes and elevated relative humidity across northern cities, where stagnation episodes sustain disproportionately high exposure levels. Ventilation efficiency emerges as the dominant determinant of inter-city variability. However, current NCAP evaluation frameworks primarily assess observed concentration changes without explicitly accounting for meteorological modulation, potentially leading to distorted interpretations of policy effectiveness. Integrating meteorological regime analytics is therefore essential to ensure a scientifically robust and equitable Phase-III evaluation.”
The study also estimates that simply shifting from stagnant atmospheric conditions to well-ventilated ones could reduce PM2.5 levels by 35–40 percent, demonstrating the powerful role of weather in shaping urban air quality.
Emerging patterns across Indian cities
Beyond Delhi, the report identifies several emerging trends across India’s major urban centres.
Southern cities such as Bengaluru and Chennai, historically considered less polluted, are beginning to show signs of winter-time air quality deterioration, signalling a new vulnerability. Meanwhile, Mumbai and Chennai recorded increases in annual pollution levels in 2025, suggesting that pollution challenges are expanding beyond seasonal spikes into year-round concerns.
Patna continues to face an intensifying crisis, emerging as the second-most polluted city after Delhi, driven in part by persistent atmospheric stagnation across the eastern Indo-Gangetic Plain.
In contrast, Bengaluru stands out for maintaining relatively stable and lower pollution levels, reflecting what researchers describe as “structural air-quality resilience.”
Kolkata’s complex pollution dynamics
Kolkata presents a unique case where meteorology interacts strongly with local pollution sources.
Dr. Abhinandan Ghosh of IISER Kolkata said meteorological conditions play a key role in winter pollution episodes in the city. “As a community of atmospheric scientists, we have long cautioned against a simplistic rat race to replicate Western PM₂.₅ benchmarks, for the Indian subcontinent is endowed with its own meteorological idiosyncrasies, complex topography, and friable alluvial soils that elevate baseline particulate concentrations. The report vindicates this standpoint: in Kolkata, it is not emissions alone but the capricious tyranny of winter boundary-layer dynamics – attenuated mixing heights and enfeebled dispersion – that engenders the most deleterious pollution episodes.”
Professor Abhijit Chatterjee of the Bose Institute pointed to biomass and waste burning as major contributors to winter pollution in the city.
“Amongst several sources, at the current scenario, biomass and waste burning are the major concern in Kolkata especially in winter. The high load of PM2.5 exceeding national standards in winter, primarily due to these two sources which accumulate near the surface because of low dispersion and ventilation coefficients.”
Need for season-specific policies
The study concludes that India’s clean air strategy must move beyond a uniform annual target system and instead adopt seasonally calibrated and meteorology-aware policies.
Experts argue that incorporating weather dynamics into pollution management would help policymakers better assess the effectiveness of interventions and design more realistic mitigation strategies.
Without such reforms, the report warns, improvements in annual averages may continue to mask severe seasonal pollution episodes that pose serious health risks to millions of urban residents.
Climate
More Shade for the Rich: Study Exposes Global Urban Heat Inequality
New MIT research shows how wealthier neighbourhoods enjoy more tree shade, exposing global heat inequality and offering solutions for fairer urban cooling.
As extreme heat becomes a growing global concern, one of the most effective cooling tools remains remarkably simple: trees. Research has long shown that greater tree coverage in cities helps reduce surface temperatures, improve public health outcomes, and make walking more comfortable in high heat.
Yet a new international study led by researchers at MIT reveals that access to this natural relief is far from equal. Tree cover — and the shade it provides — varies drastically within cities, closely tracking neighborhood wealth.
“Shade is the easiest way to counter warm weather,” said Fabio Duarte, an MIT urban studies scholar and co-author of the study, in a media statement. “Strictly by looking at which areas are shaded, we can tell where rich people and poor people live.”
The research team analyzed sidewalk shade in nine cities across four continents: Amsterdam, Barcelona, Belem, Boston, Hong Kong, Milan, Rio de Janeiro, Stockholm, and Sydney. Despite major differences in climate, wealth, and urban form, every city showed the same trend: affluent areas consistently enjoy more tree-shaded sidewalks.
Duarte noted that this imbalance was striking even in cities globally recognized for greenery. “When we compare the most well-shaded city in our study, Stockholm, with the worst-shaded, Belem in northern Brazil, we still see marked inequality,” he said in a media statement. “Even though the most-shaded parts of Belem are less shaded than the least-shaded parts of Stockholm, shade inequality in Stockholm is greater. Rich people in Stockholm have much better shade provision as pedestrians than we see in poor areas of Stockholm.”
The findings were published in the journal Nature Communications, in a paper titled Global patterns of pedestrian shade inequality. The research team includes scholars from Hong Kong Polytechnic University, the Amsterdam Institute for Advanced Metropolitan Solutions, and members of the MIT Senseable City Lab.
A Global Look at Uneven Shade
To quantify shade, the team used satellite imagery and detailed urban economic data to measure sidewalk coverage on both the summer solstice and the hottest day each year from 1991 to 2020. They assigned each neighbourhood a score between 0 and 1, with higher numbers indicating better shade.
Cities differed sharply in total tree cover — for instance, Stockholm’s neighbourhoods often score above 0.6, while large portions of Rio de Janeiro fall below 0.1. But the inequality within each city was consistent: the wealthiest neighbourhoods always had the greatest shade.
Even in cities known for strong environmental planning, disparities remained. “In rich cities like Amsterdam, even though it’s relatively well-shaded, the disparity is still very high,” said Lukas Beuster, a study co-author. “For us the most surprising point was not that in poor cities and more unequal societies the disparity would be notable — that was expected. What was unexpected was how the disparity still happens and is sometimes more pronounced in rich countries.”
Not all trends were uniform. Some cities, such as Barcelona and Milan, featured lower-income neighborhoods with strong shade coverage. Still, across the global sample, economic status remained a powerful indicator of access to cool, walkable streets.
Why Shade Matters — and What Cities Can Do
Sidewalks became the focal point of the study because they are crucial public spaces used daily by commuters, especially those without access to air conditioning or private vehicles. As cities worldwide face rising temperatures, researchers argue that shade must be treated as essential infrastructure.
“When it comes to those who are not protected by air conditioning, they are also using the city, walking, taking buses, and anybody who takes a bus is walking or biking to or from bus stops,” Duarte explained in a communication from MIT. “They are using sidewalks as the main infrastructure.”
Given the scale of disparity, the researchers suggest one clear strategy: target tree planting along public transit routes, where pedestrian activity is highest and where lower-income residents are most likely to walk.
“In each city, from Sydney to Rio to Amsterdam, there are people who, regardless of the weather, need to walk,” Duarte said . “Therefore, link a tree-planting scheme to a public transportation network. … If you follow transit, you will have the right shading.”
Beuster added that cities should think of urban trees as functional assets, not just aesthetic ones, emphasizing their central role in cooling and public health.
Duarte further stressed the importance of prioritizing shade where people actually move through the city. “It’s not just about planting trees,” he said in a media statement. “It’s about providing shade by planting trees. If you remove a tree that’s providing shade in a pedestrian area and you plant two other trees in a park, you are still removing part of the public function of the tree.”
“With increasing temperatures, providing shade is an essential public amenity,” he added in a media statement. “Along with providing transportation, I think providing shade in pedestrian spaces should almost be a public right.”
Climate
When Hillary Clinton Makes a Case for Climate Action from the Global South
At Mumbai Climate Week, Hillary Clinton urges Global South-led climate action, resilience finance innovation and stronger AI governance.
The Jio World Convention Centre in Mumbai, India’s financial capital, was buzzing with climate ambition this week. Start-ups showcased climate-centred products, philanthropic foundations exchanged notes with impact investors, young founders pitched adaptation tools for heat-stressed cities at the Mumbai Climate Week.
Amid the climate-tech demonstrations and policy exchanges, Hillary Clinton’s address stood out for its strategic clarity — positioning the Global South not merely as a beneficiary of climate action, but as its architect.
Her message was less about symbolism and more about systems — about resilience funds, insurance products, clean cooking, AI governance, and the moral responsibility of both North and South in confronting a warming world.
India as a Climate Laboratory
Clinton placed India squarely at the centre of her remarks — not as a victim of climate change, but as an innovator.
“One of our projects which I wanted to mention to you is creating a climate resilience fund to create a place where philanthropic dollars and corporate dollars and the individual dollars could be aggregated to come up with ideas to assist people who are out there working,” she said at the Mumbai Climate Week.
Through the Clinton Global Initiative (CGI), that idea has already taken shape in India.
Working with Humanity Insured — a not-for-profit backed by major insurance firms — and in partnership with SEWA(Self-Employed Women’s Association), CGI launched a parametric insurance product designed for informal women workers vulnerable to extreme heat. The concept is simple but transformative: when temperatures cross 39°C, women who cannot work a full day can claim compensation for lost income.
“As I speak right now, we’ve got this product up and going. India is the example. It’s the model,” Hillary Clinton said. “We now have 500,000 insurance holders here in India. And India will be the model for the rest of the global south because of this CGI commitment.”
The insurance scheme reflects a larger shift in climate discourse — from abstract mitigation targets to hyper-local resilience. For informal workers, climate change is not a policy debate; it is lost wages when heat makes construction sites unworkable.

Clinton framed the model not merely as philanthropy but as smart economics. “This is not only a good thing to do. It is smart. It is a new market.”
The Global South as Agenda Setter
Repeatedly, she argued that climate solutions must emerge from the regions most affected.
“We have to focus attention on solutions in the places that are clearly now most affected by climate change… the front lines of the fight against global climate change is right here in the Global South.”
While acknowledging the historical responsibility of industrialised nations, she did not shy away from noting that emerging economies must also accelerate their transition to clean energy. Pollution, she stressed, is not an abstract carbon statistic — it is a health crisis.
“When I talk about fossil fuels, I’m not just talking about climate change. I’m talking about the pollution that goes in the air in Delhi or Beijing. I’m talking about clear evidence that pollution is impacting our health… particularly the health of our children.”
Climate, she insisted, is inseparable from public health.
Philanthropy Beyond Charity
One of the sharper threads in her address was directed at philanthropy. Charity alone, she argued, cannot solve structural crises.
“If you want to feed a hungry person, give them a fish. If you want to end hunger, teach them to fish,” she said, invoking the familiar metaphor to argue for systemic reform.
The climate resilience fund is intended as catalytic capital — seed funding that aggregates philanthropic, corporate and public resources to unlock scalable models. Adaptation, in her framework, must sit alongside mitigation.
Hillary Clinton also pointed to the massive intergenerational transfer of wealth underway globally, urging that it be channelled into long-term climate solutions rather than short-term relief.
AI, Energy and the Next Disruption
Though the week’s focus was climate, Clinton ventured into another domain shaping the future: artificial intelligence.
AI, she acknowledged, could optimise renewable grids and enable hyper-local climate projections. But she warned against uncritical adoption.
“This technology is also consuming vast amounts of power, water, infrastructure… We would be naive not to recognize the potential threats that AI and its development is causing.”
She raised pointed questions about data centres’ energy and water demands, labour market disruptions, and the political influence of tech giants.
“The people running these companies are the richest people in the world… They want to shape the future… Governments need to be ready to demand answers.”
Drawing lessons from social media’s regulatory lag, she cautioned against waiting a decade to understand AI’s harms. “Let’s figure out how we can deal with that ahead of time and try to shape it rather than shape the life.”
“We inherited it. And with that inheritance… should come a sense of responsibility”
In a country rapidly expanding both its renewable capacity and digital infrastructure, the intersection of AI and climate carries particular urgency.
A Personal Case for the Planet
Beyond policy and programmes, Hillary Clinton’s speech carried a deeply personal note. She spoke of hiking the day after the 2016 US election — an act of reconnecting with nature in a moment of political upheaval.
“I find it so reinvigorating… now we know that spending time in nature… actually does help reset your brain,” she said.
Her environmentalism, she explained, stems from reverence. “We inherited it. And with that inheritance… should come a sense of responsibility.”

Climate change, she warned, will not only intensify heatwaves and wildfires but amplify migration, conflict and political instability. Ignoring it is neither economically nor strategically rational.
“If we don’t take care of our world today, it will cost us more money. It will cost us more death and destruction. It will cost us more political conflict.”
A Message to Young Innovators
Among the audience were young founders and activists — many from India’s growing climate-tech ecosystem. Clinton’s closing words were directed at them.
“Do not give in to the naysayers and the cynics. Do not doubt that you are engaged in historic, important work.”
Hillary Clinton acknowledged that global climate finance often bypasses grassroots innovators, particularly women in the Global South. That imbalance, she implied, must change.
“Keep knocking on doors, making your arguments, showing up… ideas are going to come from everywhere and they’re going to be good ideas.”
Mumbai Climate Week, positioned as a first-of-its-kind platform in India, was organised by Project Mumbai with support from organisations including IDFC First Bank and Monitor Deloitte.
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