With the government committing to become carbon neutral by 2070, it is imperative that the forthcoming Budget should focus on Environmental, Social and Governance (ESG) issues by providing tax and non-tax incentives needed to promote green economy, say experts. Indian businesses are undergoing significant changes amidst externalities such as climate change, finite resource availability, technology disruptions, emerging linked ecosystems and evolving stakeholder expectations.
According to PwC India, the budget should incorporate ESG parameters when structuring incentives, allocating resources and in the procurement processes, across sectors and institutions. It is also imperative to stimulate a more enabling ecosystem for ESG adoption, by promoting research and innovation. "Additional budgetary allocation, viability based funding and institutional capacity building for cleantech, including carbon capture, utilisation and storage (CCUs), hydrogen, transportation, grid flexibility, afforestation and nature based solutions are critical for creating an enabling ecosystem for ESG adoption," said PwC India.
Finance Minister Nirmala Sitharaman is scheduled to present the Union Budget for the next fiscal in Parliament on Tuesday. Rishi Raj, COO, Max Estates Ltd, said as a progressive real estate player, his company wants to make a positive contribution to the environment.