In her Union Budget 2026 speech on February 1, 2026, Finance Minister Nirmala Sitharaman allocated ₹3,759.46 crore to the Ministry of Environment, Forests and Climate Change (MoEFCC).
While this represents an 8% hike over the previous year’s budget estimate, environmental experts have noted that the allocation remains modest compared to the escalating scale of extreme weather events like heatwaves and floods.
1. Budget Breakdown: Institutional Strength over Action?
The 2026 allocation focuses heavily on strengthening regulatory bodies and research infrastructure rather than launching massive new field missions.
| Segment | Allocation (₹ Crore) | YoY Trend | Primary Focus |
| Control of Pollution | ₹1,091.00 | ↓ (vs RE ₹1,300) | NCAP and Monitoring Stations |
| Green India Mission | ₹212.50 | ↑ (vs RE ₹100) | Afforestation & Carbon Sinks |
| Establishment Expenditure | ₹946.00 | ↑ 7% | NGT, BSI, and Forest Survey |
| Wildlife (Tiger/Elephant) | ₹580.00 | Neutral | Conservation & Habitat Protection |
- Capital Expenditure Hike: The capital outlay for the ministry rose by 28% to ₹223 crore, earmarked for upgrading environmental monitoring networks and research facilities.
- Pollution Control Realignment: While the ₹1,091 crore for pollution control is higher than the original 2025 estimate (₹854 cr), it is lower than the revised estimate of ₹1,300 crore, suggesting a tightening of funds after a period of heavy utilization.
2. The “Hidden” Climate Budget: Industrial Decarbonization
Though the MoEFCC budget is focused on regulation, the Finance Minister announced a massive ₹20,000 crore allocation over the next five years for Carbon Capture, Utilisation, and Storage (CCUS) technologies.
- Heavy Industry Focus: This fund sits outside the environment ministry and is aimed at “hard-to-abate” sectors like steel, cement, and chemicals.
- Global Compliance: The CCUS push is designed to help Indian exporters bypass global carbon taxes, such as the EU’s Carbon Border Adjustment Mechanism (CBAM).
3. New Missions & Adaptation Strategies
- Bharat-VISTAAR: A new multilingual AI tool for climate-resilient farming, aimed at providing hyperlocal weather forecasts to 30,000 pilot farmers to mitigate crop risk.
- National Coastal Mission: Allocated ₹10 crore for FY27 to support mangrove protection and climate-resilient planning for communities exposed to rising sea levels.
- Critical Mineral Corridors: A new strategic initiative to promote the mining and processing of minerals like lithium and cobalt, essential for India’s EV and renewable energy transition.
4. The “Green Budgeting” Debate
Following the speech, institutions like TERI and various environmental groups have called for a dedicated “Green Budgeting” exercise, similar to Gender Budgeting.
- The Disconnect: Analysts argue that while billions are being funneled into mitigation (like solar and CCUS), the resources for adaptation—protecting people from immediate climate shocks—are spread thin across various small schemes.
- Outcome Focus: The 2026-27 framework remains heavily focused on monitoring (e.g., measuring air quality) rather than active mitigation (e.g., reducing pollution sources).
Conclusion: A Pragmatic Institutional Push
The ₹3,759 crore allocation ensures that India’s environmental “watchdogs” remain funded and operational in a year of increasing litigation at the National Green Tribunal. However, the real climate story of Budget 2026 lies in the industrial and energy-sector shifts, where the government is de-risking high-tech decarbonization to maintain global competitiveness.
