In her Budget 2021-22 speech, the union finance minister Nirmala Sitharaman announced launching of a new Jal Jeevan Mission across all 4,378 urban local bodies with 2.86 crore household tap connections and liquid waste management in 500 AMRUT cities. 

She also announced Urban Swachh Bharat Mission 2.0 with outlay of Rs 1,41,678 crore over five years from 2021 with a focus on complete faecal sludge management, waste water treatment, source segregation, and bioremediation of dump sites.

In order to boost the renewable energy sector, to tackle climate change and improve the environment, Sitharaman informed the Parliament about Rs 1,000 crore allocation to solar energy corporation and Rs 1,500 to renewable energy development agency.

Air pollution is a growing concern across the country. To tackle burgeoning problem of air pollution, she announced 

Rs 2,217 crore for 42 urban centres with million plus population. This money will be used to prepare air pollution control plans and strategies.

She also announced a voluntary vehicle scrapping policy to phase out old and unfit vehicles which will undergo fitness test in automated fitness centres after 20 years (personal vehicles) and 15 years (commercial vehicles).

This move has been welcomed by the Union minister for road transport and highways, Nitin Gadkari.

In Budget 2021-22, the finance minister announced another new scheme at a cost of Rs 18,000 crore for augmentation of public bus transport services which will facilitate deployment of innovative PPP models enabling private players to finance, acquire, operate and maintain over 20,000 buses. 

Metro rail system also found a mention in her budget speech. MetroLite and Metro New Technologies to be deployed to provide metro rail systems in tier 2 cities and peripheral areas of tier 1 cities, at much lesser cost, with same experience, convenience and safety, said Sitharaman.