Mainstreaming Climate Change Commitments through Finance Commission’s Recommendations
Publication dateAug, 2021
DetailsNIPFP Working Paper No. 341
India was the first to integrate climate change criterion in the inter-governmental fiscal transfers. This analysis suggests that climate change criterion in the intergovernmental fiscal transfer mechanism in India is a significant step to incentivise the conservation of forests. However, the macropolicy channel of this link is through the public expenditure priorities related to climate change commitments by the state governments, to make a “just transition” towards a sustainable climate-resilent economy.