The Evolution of the Clean Energy Cess on Coal Production in India

The document details India's use of a coal cess to raise funds for clean energy, noting that while it generated nearly USD 12 billion, much of the revenue was diverted from its original purpose. It also compares this to coal tax reforms in China.

• Between fiscal years 2010/11 and 2017/18, India collected approximately USD 12 billion (INR 86,440 crore) through the Clean Energy Cess on coal production.
• The coal cess rate increased three times between 2010 and 2016, rising from INR 50 per tonne to INR 400 per tonne; the 2016 rate represents a carbon price of roughly USD 4 per tonne of carbon dioxide.
• Despite being designed to fund the National Clean Energy and Environment Fund (NCEEF), the cess revenues were often diverted to other needs; for instance, only 24 per cent of receipts in FY 2015/16 went to the NCEEF.
• In July 2017, the Clean Energy Cess was replaced by the GST Compensation Cess at the same rate of INR 400 per tonne to address state budget deficits following the introduction of the Goods and Service Tax (GST).
• India's energy subsidies shifted between FY 2014 and FY 2016, with oil and gas subsidies decreasing from INR 157,678 crore to INR 44,654 crore, while subsidies for electricity transmission and distribution increased from INR 40,331 crore to INR 64,896 crore.

APA

International Institute for Sustainable Development (n.d.). The Evolution of the Clean Energy Cess on Coal Production in India. https://www.iisd.org/system/files/publications/stories-g20-india-en.pdf

Chicago

International Institute for Sustainable Development. The Evolution of the Clean Energy Cess on Coal Production in India. n.d. https://www.iisd.org/system/files/publications/stories-g20-india-en.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=The Evolution of the Clean Energy Cess on Coal Production in India |url=https://www.iisd.org/system/files/publications/stories-g20-india-en.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopmentndevolution, author = {{International Institute for Sustainable Development}}, title = {{The Evolution of the Clean Energy Cess on Coal Production in India}}, institution = {International Institute for Sustainable Development}, url = {https://www.iisd.org/system/files/publications/stories-g20-india-en.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }