‘India taxes coal to fund clean energy’

THE SYDNEY MORNING HERALD – 02/07/2010

Indian Environment Minister, Jairam Ramesh, has highlighted that the newly introduced levy on coal producers in India could raise 25 billion rupees ($633 million) in its first year, and presented it as the ‘first step to introduce a carbon tax’. Mr Ramesh commends India as leading the way with a domestic carbon tax, whilst others – including the European Union, South Korea and Japan – are still debating it. Coal will be taxed at 50 rupees per tonne with the aim of using the revenue to fund clean-energy projects. Read the article…

Similarly, The Times of India highlights Mumbai’s plans to levy a green tax for proposals requiring environmental clearance. According to an official from the state department, ‘the decision has been prompted by the fact that the proponents of such projects need to be charged to subsidise the cost that has to be incurred on conserving the environment that is under serious threat due to increase in developmental activity’. For example, the Maharashtra Coastal Zone Management Authority (MCZMA) has decided to charge project proponents a one-time cost for the creation of the Coast Conservation Fund. Read the article…