Page 89 - Shashwat - Restoring Green Economy

87

for pricing the carbon as mentioned should focus on minimizing the
below: subsidies given on fossil fuels and
ƒ National Energy Policy 2020; work towards maximizing the
ƒ Perform, Achieve and Trade (PAT) issuance of an implicit price on
Scheme; carbon through green bonds. In
the long-term approach, as seen in
ƒ Renewable Energy Certificates other countries, India must consider
(RECs);
using both green bonds and carbon
ƒ Internal Carbon Pricing; pricing for financing low carbon
ƒ Coal Cess 2010. developments, as the global costs
For developing countries such as of renewables are already on the
India, some of the challenges on decline, thereby encouraging the
pricing carbon include scattered companies to shift to renewable
benefits creating political sources of energy generation. With
unwillingness, households’ the strategic strengthening of the
disinterest in paying a carbon tax, digital infrastructure through
and other hurdles in the growth of missions such as Digital India, and
developing countries. In a country by creating a dialogue to understand
like India, carbon pricing schemes the importance of carbon pricing
must be formulated after considering among citizens, our country exhibits
the political and behavioural immense potential of leading the Heine, D., W. Semmler, M. M. João,
implications on the government and world to a low carbon future. P. Braga, M. Flaherty, A. Gevorkyan,
the general public. Carbon pricing E. Hayde, and S. Radpour. 2019. Financing
policies should be flexible, must References Low Carbon Transitions through Carbon
have equalized marginal cost of Pricing and Green Bonds. Details available
abatement, and be more beneficial Andrew, R. 2021. Why India’s CO2 at http://www.worldbank.org/prwp
than conventional regulations to Emissions Grew Strongly in 2017. In Krogstrup, S., and W. Oman. 2019.
the individuals, in addition to being Carbon Brief Macroeconomic and Financial Policies for
centred on revenue generation. Barron, A. R., M. A. C. Hafstead, and Climate Change Mitigation: A Review of the
A. C. M. Brookings. n.d. The Climate and Literature. Details available at https://
Energy Economics Project Policy Insights www.imf.org/en/Publications/WP/
The Way Forward From Comparing Carbon Pricing Modeling Issues/2019/09/04/Macroeconomic-
Scenarios and-Financial-Policies-for-Climate-
This article made an attempt to Change-Mitigation-A-Review-of-the-
understand the complexity of Bowen, A. 2011. The Case for Carbon Literature-48612
financing low carbon developments Pricing. Details available at www.lse.
ac.uk/granthamwww.cccep.ac.uk|1 Masson-Delmotte, V., P. Zhai, A. Pirani,
through a brief discussion on two S. L. Connors, C. Péan, and S. Berger. 2021.
policy instruments, including Chandra, T. 2021. Pricing Carbon: Trade- Climate Change 2021 Working Group I
carbon pricing and green bonds. In Offs and Opportunities for India. In Contribution to the Sixth Assessment
India, the debt level is increasing Observer Research Foundation Report of the Intergovernmental Panel
with each passing day and as per CPCL (Carbon Pricing Leadership on Climate Change Summary for
the estimation by IMF, it will cross Coalition). 2015. The FASTER Principles Policymakers.
80% of the GDP by 2021. Hence, for Successful Carbon Pricing: An Approach Parry, I. 2019. Carbon-Pricing Strategies
India should think of both short- Based on Initial Experience Could Hold the Key to Meeting the World’s
term and long-term approaches. In Dube, S., and A. Barnwal. 2011. Situation Climate Stabilization Goals.
the short-term approach, carbon Analysis and Baseline Report Patzdorf, L. 2016. Mumbai: India Green
pricing does not seem a viable Funke, F., and L. Mattauch. 2018. Why Bonds Council Holds First Meeting: New
option as the high carbon taxes Is Carbon Pricing in Some Countries Group Convened by FICCI and Climate
are opposed by both political and More Successful Than in Others? In Bonds to Drive Market Development.
public groups. The government Ourworldindata.org Climate Bonds Initiative