India banks on subsidy cuts, higher taxes on fuels

  1. India would need to spend at least $2.5 trillion during 2015-30 on mitigation activities to meet its INDC targets.
  2. India is banking on fiscal measures including fuel subsidy cuts and increased taxes on fossil fuels including diesel and petrol.
  3. India is experimenting with fiscal instruments and regulatory interventions to mobilise finances for climate change.
  4. The coal cess forms the corpus for the National Clean Environment Fund which is used for financing clean energy, technologies, and projects related to it.

The subsidies cuts and increased taxes on fossil fuels have turned a carbon subsidy regime into one of carbon taxation.

Climate Change Negotiations – UNFCCC, COP, Other Conventions and Protocols
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