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India's Climate Budget 2026-27 Aims to Meet 2070 Net Zero Target Through Green Initiatives

Target:UPSC GS-IIIMPSCTeachingPrelims MediumMains HighStatic GK Link
05 Feb 2026
~2 min
Source: The Hindu
Key Data:2026-272070
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What This Article Covers

1.Budget 2026-27 announced a five-year ₹20,000 crore outlay for Carbon Capture, Utilisation and Storage (CCUS) technology.

2.It substantially scaled up the PM Surya Ghar Muft Bijli Yojana rooftop solar scheme to ₹22,000 crore for 2026-27.

3.The climate allocations highlight a persistent gap between policy ambition and on-ground execution, particularly for green hydrogen and nuclear energy.

The Big Picture
Prelims · MediumMains · High

The Union Budget 2026-27 continues India's strategic, yet cautious, climate funding with a major push for Carbon Capture, Utilisation and Storage (CCUS) and rooftop solar. This reflects a dual imperative: meeting domestic climate goals while safeguarding export competitiveness, especially for steel and aluminium facing the EU's Carbon Border Adjustment Mechanism (CBAM).

Exam Lens

Quick Exam Facts From News

CCUS Outlay₹20,000 crore (5-year)
Rooftop Solar (2026-27)₹22,000 crore
PM-KUSUM Allocation₹5,000 crore (sustained)
Nuclear Duty ExemptionUntil 2035

1-Minute Revision

  • ›CCUS Outlay: ₹20,000 crore (5-year)
  • ›Rooftop Solar (2026-27): ₹22,000 crore
  • ›Target this Data: ₹20,000 crore (5-year CCUS outlay) and ₹22,000 crore (Rooftop Solar 2026-27).
  • ›Target this Nodal Body: Ministry of Finance (Union Budget) and Ministry of New & Renewable Energy (solar schemes).
  • ›Target this Legal Point: Zero basic customs duty on imports of nuclear plant equipment extended until 2035.

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

The Union Budget 2026-27 allocation for the PM Surya Ghar Muft Bijli Yojana primarily falls under the purview of which ministry?

Q2Statement-basedHard

Consider the following statements regarding climate-related announcements in Union Budget 2026-27:

1. A five-year outlay of ₹20,000 crore was announced for Carbon Capture, Utilisation and Storage (CCUS).

2. The allocation for the PM-KUSUM scheme was reduced compared to the previous year's revised estimates.

3. Zero basic customs duty on imports of nuclear plant equipment has been extended indefinitely.

Q3Data-centricMedium

What is the total proposed outlay for the Carbon Capture, Utilisation and Storage (CCUS) scheme as announced in the Union Budget 2026-27?

Q4Application/ImpactMedium

What is a primary reason, as highlighted in the editorial, for India's increased focus on decarbonising its steel and aluminium industries in the recent budget?

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