India has announced its decision to reduce the equity support for oil refiners’ energy transition projects in the financial year 2024 (FY24). The move comes as part of the Indian government’s efforts to streamline expenses and promote self-sufficiency in energy. As a result, the funding for green initiatives by oil refiners will be halved, according to official sources.

The decision to slash the equity support for energy transition projects will impact the refineries’ plans to invest in renewable energy projects. Many oil refiners had been eyeing to diversify into clean energy, including solar and wind power, in line with the global shift towards a greener economy.

The reduced funding will force oil refiners to review their investment plans and might delay their transition to clean energy sources. The move, however, is in line with the Indian government’s broader strategy of reducing dependence on fossil fuels and promoting the usage of alternative energy sources in the long run.

India, the world’s third-largest oil consumer, has witnessed a rapid growth in renewable energy installations in recent years. The country has set an ambitious target of having 40% of its energy generated from clean sources by 2030. The decision to cut green funding for oil refiners is aimed at encouraging them to find alternative ways to raise funds for their renewable energy projects.

Despite the reduction in funding, the Indian government is still committed to supporting the overall energy transition efforts. It plans to focus on incentivizing alternative energy generation and creating an enabling environment for investors.

While the move may be seen as a setback for oil refiners, it presents an opportunity for them to explore innovative financing models and partnerships to fund their energy transition projects. By collaborating with other organizations and adopting newer technologies, oil refiners can continue their journey towards a cleaner and more sustainable energy future.

The decision to slash green funding for oil refiners’ energy transition initiatives highlights the Indian government’s emphasis on self-sufficiency and reducing reliance on fossil fuels. As the world shifts towards a low-carbon economy, India is keen on positioning itself as a leader in clean energy and achieving its renewable energy goals.