Union Budget 2025 | Economic Survey calls for tax breaks on EVs, subsidies on renewable energy for low-carbon lifestyles

New Delhi: Tax breaks on electric vehicles and subsidies on renewable energy can motivate people to switch to low-carbon lifestyles, the pre-budget survey 2024-25 said on Friday.

There are several effective mechanisms to promote low-carbon lifestyles and advance sustainable development with the Emissions Gap Report 2020 from the United Nations Environment Programme (UNEP) outlining key strategies for fostering meaningful lifestyle changes, the survey stated.

"Financial incentives, such as tax breaks for electric vehicles and renewable energy use subsidies, can motivate individuals and organisations to adopt greener practices," it added.

The government has introduced various measures to promote environmental sustainability and influence economic behaviour, the survey stated.

Initiatives like the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan (PM KUSUM) and PM Surya Ghar: Muft Bijli Yojana encourage solar power adoption, it said.

Besides, high excise duties on fossil fuels and incentives for electric vehicles push for greener alternatives, the survey pointed out.

Additionally, educating the public about the environmental impacts of their choices is essential, it opined.

Campaigns that highlight the benefits of low-carbon alternatives and provide practical guidance can empower individuals to make sustainable decisions, it added.

"By leveraging peer pressure and engaging community involvement through social media and local initiatives, we can inspire sustainable behaviours and help establish a culture where low-carbon lifestyles are the norm," the survey said.

Finally, challenging existing habits and creating new norms around sustainability—such as promoting cycling or local food initiatives—can drive significant behavioural change over time, it added.