Finance Commission (FC) Incentive for creation of carbon sink India

Name of policy Finance Commission (FC) Incentive for creation of carbon sink
Jurisdiction Country
Supranational region
Country India
Region Asia


Subnational region or state
City or local
Policy objective Mitigation
Type of policy instrument
  • Economic Instruments
    • Fiscal or financial incentives
      • Direct investment
        • Funds to sub-national governments
    Sector name
    • Agriculture and forestry
      • Forestry
    Policy description "The devolution of funds to states from the federal pool would be based on a formula that attaches 7.5 % weight to the area under forest. According to the estimations based on 14th FC data, this initiative has effectively given afforestation a massive boost by conditioning about USD 6.9 billion of transfers to the states based on their forest cover, which is projected to increase up to USD 12 billion by 2019-20. Implicitly, India is going to transfer to states roughly about USD 174 per hectare of forest per year which compares very favorably with other afforested countries."
    Policy type
    • Changing activity
    • Energy efficiency
    • Renewables
    • Nuclear or CCS or fuel switch
    • Non-energy5
    Policy stringency
    Implementation state Implemented
    Date of decision
    Start date of implementation
    End date of implementation
    High impact
    Impact indicator


    Source or references http://www4.unfccc.int/Submissions/INDC/Published%20Documents/India/1/INDIA%20INDC%20TO%20UNFCCC.pdf, http://unfccc.int/resource/docs/natc/indbur1.pdf
    Supports policies
    Is supported by policies
    Comments (background and assessment) Linked to policy instrument
    Status Final

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