New Delhi: In a landmark address at the Global Climate Summit being held in the Indian capital, Prime Minister announced a ₹10,000 crore (approx. $1.2 billion) 'Green Transition Fund' to accelerate the country's shift to renewable energy and support communities dependent on fossil fuels.
"Climate action is not a choice but a survival imperative. India will not only meet its targets but exceed them." – PM at the summit.
Key announcements
- Green Transition Fund: ₹10,000 crore for skill development, alternative livelihoods for coal workers, and renewable infrastructure.
- Global Carbon Tax: India proposed a uniform carbon tax on high-emission goods to prevent carbon leakage.
- Solar X: Expansion of the International Solar Alliance with 20 new member countries.
- Climate Resilience: ₹1,500 crore for climate-resilient agriculture in 100 vulnerable districts.
Global response
The announcement was welcomed by UN Secretary-General who called it "a significant step from the Global South". The US and EU delegates expressed support for the carbon tax discussion, though technical details remain to be worked out.
Just transition in focus
The Green Transition Fund specifically addresses the social cost of moving away from coal. It will provide training and new jobs in solar, wind and green hydrogen sectors for workers in eastern India's coal belt. Environmentalists have hailed the move but caution about swift implementation.
Carbon tax proposal
India's concept of a "carbon tax at the border" on energy-intensive goods like steel, cement, and fertilizer aims to create a level playing field for countries that are reducing emissions. It mirrors the EU's Carbon Border Adjustment Mechanism (CBAM) but calls for revenues to be channeled to developing nations for climate action.
What next?
The summit will conclude with a 'New Delhi Declaration' expected to set timelines for the carbon tax working group. India also offered to host the permanent secretariat for the Global Just Transition Alliance.