June 26, 2009According to United Nations Environment Programme (UNEP) report, world-wide US$ 155 billion was invested in clean energy projects in 2008. Of this US$ 4.1 billion was invested in India, representing a 12% increase on the previous year. For this trend to continue and accelerate with the appropriate budgetary statements, the climate group’s advisors says
- The upcoming budget should set climate change under the key spending areas, as it is doing for other areas like rural development, education and the social sector.
- There is a need to rationalize energy taxes and direct subsidies to support weaker sections of the economy. This will help in stimulating a consumer shift to green products and services
- Some of the provisions for accelerated depreciation could be expanded to include clean technologies which are yet to be covered under the Income Tax Act.
- The Bureau of Energy Efficiency has come up with an energy labelling programme, which could support the up-take of energy efficient and renewable products through differential excise duty.
- The CDM revenues scheme, as well as energy efficiency trading incomes, should be given tax breaks
- Innovative financing schemes need to be introduced to promote energy efficiency and renewable energy penetration.
See also: an interesting emerging cleantech segment – Building Energy Analytics