Ananta Insights
Carbon Countdown Newsletter
January Edition
Welcome to a new edition of the Ananta Carbon Countdown newsletter.
This month, we unpack India’s Union Budget 2025 and its implications for clean energy, sustainability, and critical minerals. We also examine global shifts, including the impact of the US’s policy reversal under Trump, and key developments in India’s hydrogen and nuclear energy sectors.
Let us dive in!
Climate Chaos: Trump’s Aggressive Retreat
Trump’s return to the White House has triggered an aggressive rollback of more than 70 climate and energy policies. His administration is gutting US’s nodal environment agency EPA’s authority by attempting to revoke the Endangerment Finding on greenhouse gases, removing climate science advisers, and halting implementation of the Inflation Reduction Act’s (IRA) clean energy incentives. Billions in climate-focused federal spending are now in limbo, as infrastructure, transportation and disaster mitigation policies are purged of climate considerations. Federal goals to decarbonise US electricity, boost electric vehicle sales, and cut emissions at agencies were also scrapped. EPA removed all mention of climate change from its website.
Trump is also targeting federal support programs, including subsidies for EVs and charging infrastructure. His executive order aims to challenge state rules on EVs, particularly California’s waiver that allows stricter rules and a 2035 deadline for zero-emissions vehicles. Over a dozen states followed California’s lead. Trump may try to revoke this waiver, leading to potential legal challenges with uncertain outcomes.
One of the biggest geopolitical tremors comes from Trump’s decision to exit the Paris Agreement —again —by January 2026, isolating the US in global climate diplomacy. States such as California and New York are doubling down on independent climate policies, but without federal backing, their impact remains uncertain. Bloomberg Foundation announced its decision to pledge up to $15 billion to support UN’s climate body UNFCCC in the absence of US support.
Financially, the uncertainty is already shifting global investment patterns. Reports suggest the UAE and other sovereign investors may redirect their renewable energy funding away from the US, wary of regulatory instability. Climate-conscious businesses and philanthropic donors are also rethinking their approaches, with some prioritising resilience over rapid decarbonisation, anticipating four years of federal inaction.
With Washington retreating, the burden now shifts to other major economies, particularly China, the EU, and India, to steer climate action forward. The question now is whether this retreat will stall global momentum—or galvanize other nations to fill the leadership void.
Union Budget 2025: Energy Reboot
The Indian government’s focus has been on integrating climate action and sustainability into economic planning. While Budget 2025 increased by 9% Ministry of Environment, Forest, and Climate Change’s budget, the Petroleum and Natural Gas ministry was allocated ₹19,326 crore, an 11.8% increase over last year. Mission Mausam received a hike with an allocation of ₹1,329 crore for FY 25-26. The Coal Ministry received a staggering 255% hike over last year at ₹501 crores. In an interesting development, the allocation for the wind energy sector was reduced by 37.5% due to the possible reduction in generation-based incentives.
The government launched three key missions this Budget. The National Manufacturing Mission has been introduced to stimulate the production of solar PV cells, EV batteries, motors and controllers, electrolysers, wind turbines, high-voltage transmission equipment, and grid-scale batteries to enhance domestic value addition in critical sectors. Finance Minister Nirmala Sitharaman also announced the Nuclear Energy Mission and the National Critical Minerals Mission. Read more on this below.
The Economic Survey focused on energy security and affordability to guide India’s energy transition journey. It emphasised that coal cannot be neglected as a reliable source of energy and also advocated for increasing the use of nuclear power in India’s energy mix. Simultaneously, the Survey highlighted the urgent need for climate-resilient crop varieties in India to withstand rising temperatures, irregular rainfall, and other environmental stresses. The Survey also pushed for prioritising greater adaptation strategies and pooling resources required for action.
Mining Momentum: India Steps Up its Critical Minerals Game
India has launched the National Critical Minerals Mission (NCMM), with an outlay of ₹34,300 crore over seven years. With a budget of ₹16,300 crore and expected investments of roughly ₹18,000 crore by PSUs, this mission aims to strengthen domestic value chains for critical minerals and comes as part of India’s broader strategy to bolster self-reliance and secure key resources.
The Mission will encompass all stages of the value chain, from exploration to mining, processing, and recovery from end-of-life products, both within the country and in its offshore areas. It aims to fast-track regulatory approval for mining and offer financial incentives for exploration.
Other measures to strengthen the sector include full exemption of Basic Custom Duty on cobalt powder, lithium-ion battery waste, lead, zinc, and 12 other critical minerals. This was coupled with duty exemption expansion to 63 additional capital goods for EV and mobile battery production. The ministry was allocated ₹410 crore.
These efforts are designed to ensure India has the necessary minerals to meet its clean energy goals and reduce its dependency on imports, thus fortifying both energy and economic security. It also comes in the backdrop of the government’s decision to cancel the auction of 11 critical mineral blocks in the fourth round due to lack of response.
Powering Up: National Nuclear Energy Mission
Budget 2025 has allocated ₹20,000 crore for the National Nuclear Energy Mission, aimed at generating 100 GW of nuclear energy by 2047. The mission facilitates the operationalization of five small modular reactors (SMRs) by 2033, with the goal of contributing to India’s clean energy targets. The government will also set up Bharat Small Reactors in this bid.
The government has announced amendments to the Atomic Energy Act (1963) and the Civil Liability for Nuclear Damage Act (2010). “The announcement removed the biggest policy hurdle in the development of the nuclear energy sector in India. The CLNDA has been the biggest impediment to private sector participation due to a provision (Clauses 17 and 46) that pins secondary liabilities on nuclear suppliers in addition to the operator in case of nuclear damage. It is expected that an amendment would remove these impediments. An amendment to the Atomic Energy Act may see the NPCIL losing its position as the sole operator of nuclear reactors in the country, making space for private sector entering this critical sector.”
Several countries, including the US, Russia, and France, are reportedly looking to collaborate with India on SMRs. The new nuclear push is part of India’s strategy to diversify its energy mix and ensure energy security while reducing carbon emissions.
Hydrogen Breakthrough: From Pipelines to Trains
In a noteworthy development and for the first time in India, Tata Steel has developed API X65 steel pipes for safe and efficient hydrogen transport, supporting India’s green energy transition. These pipes were processed at Tata Steel’s Khopoli plant using steel produced at its Kalinganagar facility. Notably, the pipes can transport 100% pure hydrogen gas at high pressure (100 bar).
Budget 2025 saw a 100% increase in allocation for the National Green Hydrogen Mission, totaling ₹600 crore. India is also witnessing investment in projects to boost hydrogen production and distribution at a sub-national level. Global energy giants, including Malaysia’s Amplus Ganges Solar, Singapore’s Sembcorp Industries’ Green Infra Renewable Energy and India’s Acme Green Hydrogen and Chemicals, and ReNew Energy’s subsidiary ReNew E-Fuels, are backing a ₹42,000 crore investment in Tamil Nadu, aimed at making the state a key player in green hydrogen production.
Focus is on establishing green hydrogen hubs and enhancing hydrogen infrastructure to accelerate India’s energy transition. PM Modi recently laid the foundation for a ₹1.85 lakh crore green hydrogen hub in Andhra Pradesh under NGHM. India’s green hydrogen developers are also eyeing offtakers in markets like Japan and South Korea, aiming to become global leaders in green hydrogen exports, a step that will drive both economic growth and energy security.
India is also preparing to launch its first hydrogen-powered train, scheduled for a March 2025 test inauguration. It will mark a significant milestone in sustainable transport, crucial in decarbonising the rail sector.
Wait, what?
Rats on the Rise: How Climate Change Fuels Urban Infestations
Urban rat populations are booming, and climate change is giving them a helping hand. Cities such as Washington DC, San Francisco, and Amsterdam have seen surges of up to 390% in rat numbers, as warmer winters let them breed more and scavenge year-round. This is also a serious public health risk, with rats carrying diseases and causing millions in damage. Some cities, like Tokyo and New Orleans, have attempted to introduce smarter urban planning and public awareness. The takeaway? Simply trapping rats will not cut it — climate-driven infestations demand a rethink of how cities are designed and managed.
Check these out
UAE launches world’s first renewable energy facility for round-the-clock power | Economic Times
AI Could Reshape Everything We Know About Climate Change | TIME
The Climate Fix: Africa’s Solar Revolution – The New York Times
Estimating future heat-related and cold-related mortality under climate change, demographic and adaptation scenarios in 854 European cities | Nature Medicine
Thank you for taking the time to read our newsletter this month. Stay tuned for our next edition, where we will continue to explore climate and energy issues.
