India Budget, EU Competitiveness Compass, more Climate news from governments

In this newsletter

• India Budget FY2025-26 - Climate & Energy highlights
• News from Japan, EU, Taiwan, Canada, Australia, the UK
• EU competitiveness compass - Climate & energy highlights

This post is much better formatted on Substack. I recommend reading it there.

India Budget FY2025-26 - Climate & Energy Announcements

1. Nuclear Energy

• Commitment to developing at least 100 GW of nuclear energy by 2047

• Nuclear Energy Mission for Viksit Bharat - Outlay of ?20,000 crore, for Research and development of Small Modular Reactors (SMRs), Target of at least 5 indigenously developed SMRs operational by 2033
• Amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act

2. Renewable Energy & Clean Tech Manufacturing

• Expansion of clean technology manufacturing in sectors such as solar PV cells, EV batteries, wind turbines, and electrolyzers

• Clean Tech Manufacturing Support (as part of the National Manufacturing Mission) - To improve domestic value addition in key energy sectors; Focus Areas: Solar PV, EV batteries, motors, controllers, electrolyzers, wind turbines, and grid-scale storage

3. Water Infrastructure

• Jal Jeevan Mission has provided potable tap water connections to 15 crore rural households.

• Extension of Jal Jeevan Mission until 2028 - Achieve 100% rural tap water coverage and focus on infrastructure quality and sustainability, States/UTs will sign MoUs to ensure long-term viability
• Western Koshi Canal Project in Mithilanchal, Bihar - Support irrigation for 50,000+ hectares of farmland

4. Manufacturing & Energy Efficiency

• Ongoing initiatives to boost MSMEs and clean tech manufacturing

• Manufacturing Mission - Furthering "Make in India" - Strengthen ease of doing business, future workforce, MSME sector, technological availability, and product quality
• Shipbuilding Financial Assistance Policy Revamp - Promote green shipbuilding and facilitate credit for ship recycling (circular economy)

5. Farming & Agriculture Sustainability

• National Mission for Edible Oilseeds to reduce reliance on imports

• Mission for Aatmanirbharta in Pulses (6-year plan) Develop and distribute climate-resilient seeds, Improve post-harvest storage and management, Ensure remunerative prices for farmers
• Prime Minister Dhan-Dhaanya Krishi Yojana - Improve productivity, diversify crops, and ensure sustainable agriculture in 100 underperforming districts, Target Impact: 1.7 crore farmers
• National Mission on High Yielding Seeds - Strengthen agricultural research, Develop and propagate high-yield, pest-resistant, and climate-resilient seeds, Increase commercial availability of 100+ seed varieties
• Makhana Board in Bihar - Improve production, processing, and marketing of makhana (fox nuts)

Finance Minister’s Speech in Parliament on February 1, 2025

Japan establishes new framework for JCM credits under climate policy

(January 31)

Japan has enacted a revised framework for the international cooperation emission reduction system under the amended Global Warming Countermeasures Promotion Act. This includes regulations for issuing and managing Joint Crediting Mechanism (JCM) credits, aimed at promoting decarbonization technologies through bilateral initiatives. The new regulations were published on January 31, 2025, and will come into effect on April 1, 2025. Three new ordinances establish procedures for credit issuance, account management, and the designation of implementing agencies.

Ministry of Economy, Trade and Industry | Japan

Polish Presidency outlines climate priorities in European Parliament

(January 31)

Poland holds the Presidency of the Council until June 2025. On January 23, Paulina Hennig-Kloska, Minister of Climate and Environment, highlighted the need for climate adaptation measures and to combat climate disinformation. The Presidency aims to advance key legislative files, including the waste framework directive on textiles and food, the European soil monitoring law, and the "One Substance, One Assessment" chemicals package. Additionally, discussions on emissions trading system ETS II and renewable energy will take place.

European Parliament

H2med secures CEF Funding for Hydrogen Corridor

(January 31)

On January 30th, the European Climate, Infrastructure and Environment Executive Agency (CINEA) awarded over 35 million euro in grants to the H2med project studies. The funding will support engineering studies and environmental assessments for the BarMar and CelZa projects. The BarMar project will receive 28,336,978 euro, while the CelZa project will get 7,221,872 euro to finance pipeline and compressor station engineering. This funding signifies a critical step in advancing the Southwestern Hydrogen Corridor and the development of Europe’s hydrogen economy.

H2med

Taiwanese hydrogen alliance signs MOUs with four countries

(January 31)

Taiwan's Hydrogen & Fuel Cell Partnership (THFCP) signed memoranda of understanding (MOUs) with four countries during the 2025 Hyvolution exhibition in Paris. The agreements were signed with institutions from Ukraine, France, Poland, and Denmark to promote the hydrogen and fuel cell industry. This initiative aims to advance research and development across the integrated supply chain, facilitating international project applications and expertise exchanges. Lin Jo-chen, THFCP CEO, emphasized Taiwan's strong capabilities in hydrogen fuel cell manufacturing, noting that over 90% of crucial components are produced locally.

Overseas Community Affairs Council, Taiwan

Canada and Nova Scotia Announce Offshore Wind Legislation

(January 31)

The Government of Canada and Nova Scotia have passed legislation that allows for the development of offshore renewable energy for the first time in Canada. This new law, Bill C-49 alongside Nova Scotia's Bill 471, aims to unlock economic opportunities within the offshore wind sector and is expected to create thousands of jobs and attract billions in investment by 2040.

Government of Canada

Queensland wind farms face regulatory changes impacting development

(January 31)

Australia's Queensland Government has introduced the Planning (Wind Farms) Amendment Regulation 2025, effective from 3 February 2025, which

makes all development applications for wind farms under the Planning Act 2016 subject to impact assessment, therefore requiring statutory public consultation and allowing third party appeal rights.

This change significantly alters the risk profile for wind farm projects in the region. Additionally, upcoming changes aim to encompass other renewable energy projects, including large-scale solar developments, within similar assessment frameworks. The Clean Energy Council expressed concerns over the abrupt communication of these policy shifts, which may deter investment in Queensland's renewable energy sector.

Hamilton Locke

New Deposit Return Scheme to Launch in UK in 2027

(January 31)

The UK is implementing a new deposit return scheme (DRS) for drinks containers in 2027 across England, Scotland, and Northern Ireland. This initiative aims to tackle plastic waste, as 6.5 billion single-use drinks bottles and cans go to waste annually in the UK. The scheme, which includes a redeemable deposit for returning containers, has shown success in other countries with return rates as high as 98% in Germany. The goal is to clean up communities and promote recycling, contributing to the circular economy.

UK Government | Environment

Overview of Climate & Energy Recommendations from the EU competitiveness compass report

1. Energy

Implemented Actions:

• Transitioning away from fossil fuel dependence (currently ? of energy imported)
• Integration of a Single Energy Market to stabilize prices
• Expansion of renewable energy investments, electrification, and energy efficiency measures

Recommendations:

• Affordable Energy Action Plan: Reduce energy costs through market integration; Expand long-term power purchase agreements; Improve energy infrastructure investment (grids, storage, transmission)
• Electrification Action Plan: Invest in electricity, hydrogen, and carbon dioxide transport networks
• Roadmap to end Russian energy imports: Reduce reliance on geopolitically unstable suppliers

2. Industrial Decarbonization & Clean Tech

Implemented Actions:

• Net Zero Industry Act: Supports green industrial development
• Emissions Trading System (ETS): Carbon pricing mechanism in place
• Clean Industrial Deal Initiative: Aligns decarbonization policies with economic competitiveness

Recommendations:

• State Aid Framework for Decarbonization: Incentives for clean tech investments
• Steel & Metals Action Plan: Supports low-carbon production
• Chemicals Industry Package: Ensures competitiveness while minimizing environmental impact
• Circular Economy Act: Increase recycling and secondary material use, Encourage EU industry to substitute virgin materials
• Carbon Border Adjustment Mechanism (CBAM) Review: Expand carbon pricing to more sectors, Address trade leakage risks
• Contracts for Difference for Low-Carbon Products: Financial incentives for green manufacturing

3. Corporate Sustainability & Green Industry

Implemented Actions:

• Sustainable Finance Framework: Mobilizes capital for green transition
• EU Bioeconomy Strategy: Develops bio-based materials and agri-biotech

Recommendations:

• European Biotech Act: Boost biotech innovation for climate and energy applications
• Advanced Materials Act: Develop materials that enhance sustainability
• Public Procurement for Green Technologies: Encourage EU-wide adoption of sustainable materials

4. Transportation & Mobility

Implemented Actions:

• CO? Emission Standards for Vehicles: Regulating emissions from transport
• Investment in High-Speed Rail Networks: Promotes lower-carbon mobility

Recommendations:

• Sustainable Transport Investment Plan: Expand EV charging and green fuel infrastructure
• European Port Strategy: Promote sustainable maritime industries
• Revised CO? Standards for Vehicles: Include e-fuels as an alternative for carbon neutrality
• Industrial Action Plan for Automotive Sector: Ensure a just transition for vehicle manufacturers

5. Water & Climate Resilience

Implemented Actions:

• European Climate Adaptation Plan (Upcoming 2026): Prepares for extreme weather events

Recommendations:

• European Water Resilience Strategy: Improve water management and reduce scarcity risks
• Oceans Pact: Leverage blue economy for sustainable ocean use
• Climate Adaptation in Urban Planning: Nature-based solutions for flood and wildfire mitigation

6. Global Trade & Economic Security

Implemented Actions:

• Critical Raw Materials Act: Secures supply chains for clean energy tech
• EU-Mercosur Trade Agreement: Encourages trade in green goods

Recommendations:

• Joint Purchasing Platform for Critical Raw Materials: Secure access to essential materials for clean tech
• Clean Trade and Investment Partnerships: Facilitate global green energy trade
• Trans-Mediterranean Energy and Clean Tech Cooperation: Promote renewable energy collaboration with Mediterranean nations

A competitiveness compass for the EU, European Commission, January 29 2025 (PDF)

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