Worried over the rapid climate change, the State Government is mulling to introduce some fiscal instruments and incentives for promotion of low carbon industrial development in the State.
Five committees in different sectors have been constituted in order to develop appropriate fiscal instruments for the purpose.
Finance Secretary UN Behera issued a notification to this effect on Saturday. These committees would submit reports within six months, the notification stated.
“There is a need to identify the fiscal instruments that could be implemented in the State to promote low carbon development,” Behera stated.
The five committees have been named as low Carbon Refund Scheme for power sector, low Carbon Refund Scheme for industry sector, incentive for waste heat recovery, incentives for buildings and incentive for waste sector.
While power sector committee will be headed by Energy Secretary, industry sector will be chaired by Industries Secretary. Similarly, Steel and Mines Secretary will head incentive for waste heat recovery committee and Urban Development Secretary will lead Incentives for buildings and incentive for waste sector committee.
According to the information, the Confederation of Indian Industry (CII) will provide assistance to each committee on the technical matters and the support required for drafting the minutes and recommendations.
The committees will report on implementation of State Government’s existing policies that would affect implementation of the identified instruments, areas, recommendation of action plan for departments with timelines and specifications (level of cess, rebates etc).
Besides, the committees will give suggestions on capacity building needs, fund requirements and utilisation of available funds, sources said.
Since there is always a divergence between individual cost benefit and social cost benefit, the Government is mulling to align these costs through introduction of fiscal instruments like taxation and subsidy, sources added.
Notably, the per capita green house emission in India is far low (about 1.18 tonnes) against other developed countries. India has adopted the principles of reducing the emission and so also Odisha.