The Union Budget 2025-26, placed by Finance Minister Nirmala Sitharaman in Parliament on February 1, has opened up the window for a speedier green transition in India but failed to address the critical issue of climate adaptation, experts have told Down To Earth (DTE).
Incidentally, many expected climate adaptation to receive substantial support in the budget as the Economic Survey, published a day before, laid a lot of emphasis on the issue. Indeed, it actually blamed the developed countries for not providing adequate funds in the sector, a criticism that it is, ironically, currently facing post the budget.
The budget, according to various experts, has given mixed signals. This is because it proposes to increase allocation to solar energy, as well as in fossil fuel sectors, both coal and petroleum & natural gas. Incidentally, the environment, forest and climate change ministry received about Rs 3,412 crore, a less than 2.5 per cent allocation rise over the last budget figure of Rs 3,330 crore. Even that could not be fully utilised. On the contrary, the coal ministry got a 160 per cent financial outlay jump while the petroleum and natural gas sector received a 21 per cent financial growth.
Solar energy got the highest allocation of Rs 26,549 crore, with a clear focus on rooftop solar with the PM Surya Ghar Yojana. Experts pointed out that the announcement for a Nuclear Mission with the aim for 100 GW of non-fossil based energy by 2047 is a clear push towards harvesting clean energy beyond solar and others presently in focus. But they also raised the security concerns associated with the option.
Several industry experts however pointed out that overall, the budget signals a strong commitment to India’s clean mobility and energy transition, with a focus on expanding the EV ecosystem, strengthening domestic battery manufacturing, and supporting startups and alternative investment funds (AIFs). Many also pointed out that the emphasis on lithium-ion and alternative battery chemistries, along with measures to enhance green financing, would be instrumental in accelerating EV adoption and energy storage solutions.
Adaptation fund ignored
While hailing the effort to push up the pedal on greener energy, experts criticised the lack of financial support in the climate adaptation sector that is critical to the lives and livelihoods of millions living in the vulnerable areas of the country.
An exception may be the announced project of supporting agricultural practices in some climate-impacted districts, the Pradhan Mantri Dhan-Dhaanya Krishi Yojana, that targets 100 districts with low productivity by boosting agricultural output, promoting crop diversification, and enhancing post-harvest storage.
Sachchida Nand Tripathi, a professor and sustainability expert at IIT Kanpur, pointed out that while overall, the budget indicates investing in a climate-friendly economy; “focused initiatives to target air pollution, river rejuvenation for water security and adaptation measures beyond agriculture would have further strengthened India’s vision for a cleaner greener future.”
Others were more categorical.
“While the budget acknowledges the need to boost agricultural production and resilience, it falls short where it matters most—adaptation funding. Without real investment in climate adaptation, farmers will be left defenseless against increasingly erratic and extreme weather. The livelihoods of millions are at serious risk, and without urgent action, our food systems and rural communities will bear the brunt of the climate crisis,” observed Harjeet Singh, climate activist and founding director of Satat Sampada Climate Foundation.
Abinash Mohanty, global sector-head of climate change and sustainability of IPE-Global, pointed out a crucial gap in the budget speech; “…the lack of a robust climate adaptation strategy” and observed that “social protection policies, particularly those aimed at vulnerable communities, must have been fortified to withstand climate shocks through an ear-marked budgetary allocation.”
“Climate adaptation is not an option—it is an imperative. The world is facing unprecedented geopolitical pushback on the climate agenda, and India should have ensured that its fiscal policies reflect this reality through an enhanced budgetary allocation,” he further added.
Even the government’s effort to put light on the agricultural sector got questioned. “The government has kept agriculture as one of the top priorities, but this has been the case for the last eight years; however, the government has not talked about farmers’ income or agriculture income, which should be the prime concern,” stated Devinder Sharma, an agriculture trade policy expert.
Ecological economist Nilanjan Ghosh was equally clueless about the budgetary allocation not coming in climate adaptation sector; “After the economic review highlighting the need to focus on climate adaptation yesterday, we expected greater fund support in the area”.
“We have to keep in mind, at present only one-fifth of the adaptation finance is available at global scale, and, if you consider the highly climate vulnerable areas like Sundarbans, which depend almost solely on adaptation, the gap is much bigger. A ballpark assessment is that the financial need is about three times greater than the Sundarbans’ GDP,” the ecologist-economist further pointed out.
“A strong adaptation strategy is a priority for the country, given its significant vulnerability to climate change, stemming from its geographic and agro-climatic diversity,” reads the Economic Survey report that was published a day earlier.
Not transformative; nuclear safety under scanner
Climate activist Singh opined that beyond brief mentions of boosting EV battery manufacturing, and climate resilience in agriculture, the budget falls short of delivering the bold and comprehensive climate action India urgently needs. “It lacks a renewed commitment to tackling deadly air pollution, restoring ecosystems, and safeguarding communities on the frontlines of the climate crisis. With worsening environmental degradation and escalating climate threats, we need decisive, transformative action—not fragmented gestures,” Singh said.
The expert, while hailing the government commitment to clean energy through the focus on nuclear energy, reminded the safety component linked to it, and wanted the government to explore safer cleaner energy options.
“Nuclear power comes with significant safety, waste management, and security risks. Instead of prioritising risky and expensive nuclear expansion, India should focus on rapidly scaling up safe, proven renewable energy sources like wind and solar,” he added.
Labanya Jena, a sustainable finance specialist, echoed similar concern: “India’s push for nuclear energy is bold, but with high capex and tail risks, the key challenge remains—who will fund it, and who will bear the risks?”
Aarti Khosla, director of climate think-tank Climate Trends, observed that while the Union budget presents an ambitious framework to boost its transition economy including renewed focus on nuclear power, the issues of safety associated with nuclear energy still looms large.
