Why in News
- The Government of Uttarakhand plans to introduce a “Green Cess” on vehicles entering from outside the state.
- Aim: Combat rising vehicular pollution, fund green infrastructure, and improve air quality in ecologically sensitive hill regions.
- Estimated annual revenue: ₹100 crore, to be managed by the Uttarakhand Pollution Control Board (UKPCB).
Relevance
- GS-3 (Environment, Conservation & Pollution Control): Fiscal instruments for sustainability, vehicular pollution mitigation.
- GS-2 (Governance): Policy design, fiscal decentralization, environmental regulation.
- GS-1 (Geography): Himalayan ecology and environmental vulnerabilities.
- GS-3 (Economy): Green budgeting and fiscal federalism.
Background and Context
- Uttarakhand witnesses massive tourist inflow — over 5 crore visitors (2022–24) — leading to traffic congestion, dust pollution, and ecosystem stress.
- Vehicular emissions and road dust contribute to PM2.5 and PM10 pollution, especially in Dehradun, Nainital, Haridwar, Rishikesh.
- The state’s fragile Himalayan ecology is already under pressure due to urbanization, road-widening projects, and pilgrimage tourism (Char Dham, Kedarnath).
- Aligns with India’s larger goals of Net-Zero by 2070 and National Clean Air Programme (NCAP).
Key Features of the Green Cess
- Applicability: All vehicles registered outside Uttarakhand entering the state.
- Objective: Internalize environmental costs by applying the Polluter Pays Principle.
- Estimated Annual Collection: ~₹100 crore.
- Administering Body: Uttarakhand Pollution Control Board (UKPCB) under the State Environment Department.
- Revenue Utilization:
- Air quality monitoring & sensor network expansion.
- Dust suppression and road vacuuming projects.
- Green infrastructure: Urban forests, EV charging stations, green corridors.
- Public awareness & behavioural change campaigns.
- Promotion of electric vehicles and clean mobility.
Economic & Environmental Rationale
- Environmental Fiscal Reform (EFR): Uses taxation to disincentivize pollution and generate revenue for mitigation.
- Tourism-linked Environmental Stress: Heavy influx of vehicles (especially diesel SUVs) from Delhi-NCR and UP.
- Polluter Pays Principle: Embeds the cost of environmental externalities within market mechanisms.
- Co-benefits:
- Encourages public transport, shared cabs, EV adoption.
- Reduces congestion and particulate emissions.
- Creates dedicated green fund for continuous ecological improvement.
National Parallels (India)
| State/City | Measure | Key Outcome |
| Delhi NCR | Environment Compensation Charge (ECC) on commercial vehicles | Reduced entry of old diesel trucks, improved AQI marginally |
| Himachal Pradesh | Green Fee on vehicles entering tourist towns (Manali, Shimla) | Finances solid waste and parking management |
| Goa | Entry Tax on out-of-state vehicles | Used for coastal zone management |
| Ladakh | Eco-tax on tourists and vehicles | Revenue for glacier and biodiversity conservation |
| Sikkim | Sustainable Tourism Fee | Funds trekking route maintenance and reforestation |
Learning for Uttarakhand: Success depends on transparent fund utilization, earmarked green spending, and measurable pollution reduction.
Global Parallels
| Country/City | Mechanism | Key Learning |
| London (UK) | Congestion Charge and Ultra Low Emission Zone (ULEZ) | Reduced NO₂ levels by ~25%, boosted EV adoption |
| Singapore | Electronic Road Pricing (ERP) | Dynamic pricing curbs congestion, reinvested in mass transit |
| Norway | CO₂-based Vehicle Tax | Drastically increased EV share (over 80% new car sales) |
| Sweden | Carbon Tax (1991) | Shift from fossil fuels to renewables; model for EFR success |
| Bhutan | Sustainable Development Fee (SDF) on tourists | Controls inflow, funds environmental projects |
Inference: Globally, eco-taxes serve dual goals — behavioral change + revenue for sustainability projects.
Administrative & Policy Dimensions
- Legal Backing: Can be notified under the Environment (Protection) Act, 1986, or through a State Finance Bill.
- Implementation Agencies:
- Uttarakhand Transport Department (collection mechanism)
- UKPCB (project financing and monitoring)
- Monitoring: Integration with FASTag or ANPR systems for automated cess collection.
- Transparency Measures:
- Annual Green Cess Utilization Report.
- Public dashboard for tracking revenue allocation.
Potential Challenges
- Administrative: Setting up collection points at multiple entry routes (Haridwar, Rampur, Rudrapur).
- Equity Concerns: Frequent visitors and commercial transporters may face high burden.
- Economic: Tourism operators fear deterrence to visitors, affecting livelihoods.
- Accountability: Ensuring cess funds are not diverted to non-environmental uses.
- Coordination: Requires alignment with central programs like NCAP and National Mission on Sustainable Habitat.
Long-Term Implications
- Positive:
- Builds a sustainable fiscal base for environmental protection.
- Encourages inter-state learning on green taxation.
- Strengthens Uttarakhand’s case as an eco-conscious tourist destination.
- Risks:
- If poorly implemented, may become a revenue tool rather than environmental reform.
- Possible pushback from tourism sector without visible green outcomes.
Integration with Broader Policy Frameworks
- National:
- NCAP (2019) – Targets 40% reduction in PM levels by 2026.
- National Green Tribunal (NGT) directives on vehicular emissions.
- FAME-II Scheme promoting EV adoption.
- National Clean Energy Fund model for cross-sector green spending.
- International Commitments:
- Paris Agreement & Glasgow Pact – internalizing carbon pricing.
- SDG 11 (Sustainable Cities), SDG 13 (Climate Action), SDG 15 (Life on Land).
Way Forward
- Institutionalize a “Green Fund” with independent audit and citizen oversight.
- Differential Cess Design: Lower rate for EVs, higher for diesel and heavy vehicles.
- Tourist Management Policy: Seasonal caps, parking limits, shuttle-based last-mile connectivity.
- Green Infrastructure Priorities:
- Urban forests in Mussoorie & Nainital.
- Solar-powered public transport.
- Dust-free road zones in pilgrimage circuits.
- Public Communication: Campaign linking tourism with ecological responsibility — “Clean Himalaya, Green Himalaya”.
