The Ministry of Environment, Forest, and Climate Change (MoEFCC) is responsible for planning, promoting, and coordinating environmental policies and programs.[1]  It oversees the conservation of natural resources, afforestation, pollution control, and biodiversity management.  It also plays a key role in implementing India’s commitments under international environmental agreements such as the Paris Agreement and the Convention on Biological Diversity.1 

MoEFCC manages flagship programs like the National Afforestation Programme, Green India Mission, and National Clean Air Programme to address environmental degradation and climate challenges.  It regulates pollution through frameworks like the Environmental Protection Act, 1986, and supervises compliance with air, water, and soil quality standards. 

This note analyses the budget of the Ministry, examines the programmes it is implementing and the issues and challenges prevalent in the sector.

Overview of Finances

In 2025-26, the Ministry of Environment, Forests and Climate Change has been allocated Rs 3,413 crore, a 9% increase over the revised estimates of 2024-25.[2]   This includes revenue expenditure of Rs 3,277 crore (96% of total) and capital expenditure of Rs 136 crore (4% of total).  Compared to the revised estimates of 2024-25, in 2025-26, revenue expenditure has increased by 8% and capital expenditure by 46%. 

Figure 1: Budgetary allocation to the Ministry (in Rs crore)

Note: Revised estimate for 2024-25.  Utilisation as ratio of actual to budgeted, RE for 2024-25.
Sources: Demand for Grants (2012-13 to 2025-26), Ministry of Environment, Forests and Climate Change; PRS.

Major budgetary allocation of the Ministry in 2025-26 include: (i) Establishment expenditure of the Central government (28%) which includes expenditure towards National Green Tribunal, Botanical Survey of India, and Forest Survey of India, (ii) pollution control (25%), which includes assistance to pollution control boards and funding for the National Clean Air Programme (NCAP), (iii) environment, forestry and wildlife (21%) that includes Green India Mission, and Project Tiger and Elephant.2  The Ministry also supports autonomous institutions engaged in research and development, including the Indian Institute of Forestry Management and Indian Council of Forestry Research and Education.

Table 1: Key Allocations to the Ministry (in Rs crore)

	2023-24 Actuals	2024-25 RE	2025-26 BE	% change (24-25 RE to 25-26 BE)
Establishment Expenditure of the Centre	780	881	946	7%
Pollution Control	845	858	854	0%
Environment, Forestry and Wildlife	530	590	720	22%
Autonomous Bodies	562	437	455	4%
Statutory and Regulatory Bodies	158	187	232	24%
Environmental Knowledge and Capacity Building	74	100	103	3%
National Coastal Mission	32	8	2	-75%
Others	132	65	102	57%
Total	3,114	3,126	3,413	9%

Note: RE is Revised Estimate, BE is Budget Estimate.   Others includes Environment Education, Awareness, Research and Skill Development, centrally sponsored schemes, Economic Services and Grant-in-aids.
Sources: Demand for Grants, 2025-26, Ministry of Environment, Forests and Climate Change; PRS.

Utilisation of funds

Barring three years (2016-17 to 2018-19), between 2012 and 2022, the Ministry did not fully utilise the allocated funds.  In its reply to the Standing Committee on Science and Technology, Environment, Forests and Climate Change (2023), the Ministry had cited a technicality in the manner of disbursement of funds for delay in utilisation in 2022-23.[3]   The Committee recommended that the Ministry clear pending dues and ensure that project completion is not affected by fund unavailability.[4]

Issues to Consider

Climate Change and Energy Transition

As per India’s fourth Biannual report to UNFCCC, 2024, in 2020, India’s total GHG emissions were 2,959 million tonne of carbon dioxide equivalent (CO₂e).[5]   This excludes the Land Use, Land Use Change and Forestry (LULUCF) sector which acts as a carbon sink.  Including the LULUCF sector, India’s GHG emissions decrease to 2,437 million tonne of CO₂e.5  Between 1994 and 2020, total CO₂ emissions, excluding LULUCF, rose by 144%.5  The energy sector was the largest contributor to this rise, with an increase of 201% over the same period.5  In comparison, the agriculture sector saw only an 18% increase in emissions.5 

The waste sector, influenced by population growth and increased industrial activity, saw a 226% rise in emissions between 1994 and 2020.5  However, the sector’s contribution to overall emissions remains around 3%.  The industrial processes and product use sector also contributed to emissions growth, increasing by 132% from 1994 to 2020.5 

In 2023, India became the third largest source of global emissions, with 2.8 gigatons emissions.[6] However, India has contributed only about 4% of the global cumulative greenhouse gas emissions between 1850 and 2019.[7] Similarly, as per International Energy Agency (IEA), in 2023, India’s CO₂ emissions per capita were 2 tonne while European Union, China, and United States had CO₂ emissions of 5.4 tonne, 8.9 tonne and 13.3 tonne respectively.6 

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