Events

Roundtable on Instituting a Carbon Pricing Policy for India: Way Forward 19 October, 2023

CBGA in collaboration with Centre for Research on the Economics of Climate, Food, Energy & Environment (CECFEE), Indian Stastical Institute, New Delhi organised a Roundtable on 'Instituting a Carbon Pricing Policy for India: Way Forward' on October 19, 2023.

The roundtable discussion highlighted the critical role of carbon pricing in India's climate policy. The panellists emphasised that carbon pricing could effectively create a pathway for a low-carbon economy. It also addressed the distributional impacts and facilitated the discussion on how a transition form fossil fuels to a green economy could be achieved. The importance of designating an inclusive carbon pricing scheme considering international and national factors was stressed. The significance of revenue recycling was emphasized. If the low carbon transition is to successfully take place, the marginal and low-income groups should be supported in all sectors as well.

The significance of phasing out of coal was discussed in detail. The panellists discussed the challenges and opportunities related to carbon pricing and emphasized the importance of diverse approaches, including a potential carbon tax on coal. The discussions collectively stressed the significance of carbon pricing in achieving India's climate goals and the need for tailored, sustainable strategies to address carbon emissions while considering economic and social implications.

Key takeaways from the discussion were –

1. The need to understand the clear trajectory for carbon pricing before instituting it.

2. A combination of both implicit and explicit carbon pricing mechanisms can be explored.

3. The importance of technology transfers in ensuring the certainty of carbon pricing.

4. Modelling can be useful for better policy design.

The expert panellists from the Dept. of Economic Affairs (Ministry of Finance), NITI Aayog, National Institute of Public Finance and Policy (NIPFP), Shakti Sustainable Energy Foundation, Centre for Social and Economic Progress, Bureau of Energy Efficiency, and Indian Institute of Science (IISc) shared valuable insights on carbon pricing in India.

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