Carbon pricing for sustainable transition in India

Carbon pricing has become a major tool for addressing climate change and climate action (SDG13). Some 36 countries have implemented the carbon tax and 34 have incorporated Emissions Trading Systems (ETSs). Evidence shows an increase in inequality and employment, but it differs between countries and among sectors. As India is significantly large, the decision on carbon pricing will have its benefits, co-benefits, disadvantages and losses. India is in the process of leveraging technology with an eye on long-term sustainability. However, the transition trade-off may come with a development cost. Hence, the excessive fossil-fuel subsidies and increasing debt burdens should be eliminated, and green transformation of the industries should be prioritized. We address the urgency of carbon pricing introduction in India, and the pathways to implement carbon pricing for a sustainable future. The carbon taxes in India should be implemented according to the carbon-intensive nature of the industry and, it should also be paired with ETS and feebates for a just and equitable distribution of burden.