Posted by: Bittu Sahgal on
Apr 15, 2010
Most people seem to have missed this major announcement made by the Finance Minister of India about a carbon tax on coal. The fact is that a climate tax should be applied on all fossil fuels including oil, gas and coal. This money should be used to fund non-carbon energy. Simultaneously, significant tax incentives, including excise and income tax, should be made available to enterprises generating power from sources such as wind, solar, geothermal etc.:
Here is the PIB text:
"To ameliorate the negative environmental consequence sand increased pollution levels associated with industrialisation and urbanisation, a number of proactive steps have been proposed in the Budget 2010-11. These include:
National Clean Energy Fund (NCEF)- for funding research and innovative projects in clean energy technology.The Finance Minister said that in many areas of the country pollution level has reached alarming proportions.While it must be ensured that the principal of a "polluter pays" remains the basic guiding criteria for pollution management, there should also be a positive thrust for development of clean energy.And to build the purpose of the NCEF, the Minister has proposed to levy a clean energy cess on coal produced in India at a nominal rate of Rs.50 per tonne, which will also be applicable to imported coal.
When your car is run down, you may need to pay a mechanic to decarbonise your engine. Surely our country deserves a similar courtesy?