The budget should focus on environmental and social issues, experts have told
New Delhi:
Experts say that as the government is committed to becoming carbon neutral by 2070, it is imperative that the upcoming budget focus on environmental, social and governance (ESG) issues and the tax and non-tax policies needed to promote a green economy. Provide tax incentives.
Indian businesses are undergoing significant changes amidst external factors such as climate change, limited resource availability, technology disruption, emerging connected ecosystem and evolving expectations of stakeholders.
According to PwC India, ESG parameters should be included in the budget when structuring incentives, allocation of resources and procurement processes, across sectors and institutions. It is also imperative to encourage a more efficient ecosystem for ESG adoption by promoting research and innovation.
“Extra budgetary allocation, feasibility based funding and institutional capacity building for cleantech including carbon capture, utilization and storage (CCU), hydrogen, transport, grid resilience, afforestation and nature based solutions to create an enabling ecosystem for ESG adoption are important.” PwC India said.
Finance Minister Nirmala Sitharaman will present the Union Budget for the next financial year in Parliament on Tuesday.
Rishi Raj, COO, Max Estates Limited said that as a progressive real estate player, his company wants to make a positive contribution to the environment.
“Government intervention and policy changes such as tax exemptions to meet environmental standards and certifications, green taxes on harmful environmental activities, and subsidies on the use of green products and services such as solar panels, electric vehicles and carbon neutral materials have taken a long time to advance. The agenda of sustainability, which has consistently become the need of the hour,” he said.
Pramod Bhasin, Founder, Asha Impact said that as the demand for sustainable investments has further increased due to the COVID-19 pandemic, it would be good to see initiatives that unlock institutional capital for these investments, which currently lag far behind the global allocation. Huh.
“This could allow for CSR investments in ESG-focused AIFs or the development of social stock exchanges to promote capital flows towards ESG-focused enterprises,” he said.
On expectations from the budget, Vikramjit Roy, Managing Director, Macaffrey Environmental Solutions Pvt Ltd. Ltd. (MESPL) in India said it should lead India towards becoming a green economy, in line with the government’s commitment to net-zero.
“For this the government has to pave the way for creating an enabling environment for corporates to start budgeting for ESG. In the case of CSR, ESG investment should also be rewarded,” Roy said.
Jaya Vaidyanathan, CEO, BCT Digital said that it is important that the Union Budget 2022-23 gives due consideration to the implementation of ESG and requisite practices to enable sustainable development of the country.
Pointing out that the government’s commitment to become net-zero by 2070 is evident through a number of initiatives towards electric vehicle adoption, Vaidyanathan said that this focus is only in the budget and to encourage green adoption in the times to come. Like should be leading through the steps. Technology.
Ms. Vaidyanathan said, “The increasing thrust of Indian enterprises on ESG and the support of the Government in the same regard is encouraging, as it will certainly contribute to enhancing the overall brand value and maintaining premium equity valuation for many stakeholders.”
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