Discrepancies in Climate Finance Revealed in 2025 Budget

December 29, 2025 - 13:17

Since 2017, the union government has consistently presented its annual budget on February 1. The 2025 budget, unveiled by Finance Minister Nirmala Sitharaman, followed a familiar pattern that raised eyebrows among environmental experts and advocates. While there were notable increases in allocations for renewable energy, irrigation, disaster response, and resilience, these categories were conspicuously absent from being labeled as climate finance.

This omission has sparked concerns about transparency and accountability in the government's approach to climate-related funding. Although these budgetary provisions are crucial for addressing climate change impacts, the lack of explicit classification as climate finance may obscure the true extent of financial commitment to environmental sustainability.

Critics argue that without clear labeling, it becomes challenging to assess whether the government is meeting its climate obligations, particularly in light of international commitments. As the world grapples with the urgent need for climate action, the 2025 budget raises important questions about the effectiveness and integrity of climate finance reporting.