India just did something big for the climate: it announced that it will allocate $6 billion a year in tax revenue in a way that will encourage forest conservation. That’s more results-based finance for forest conservation than any other country in the world, including the current biggest spender Norway.We are also directed to this interaction with Dr Arvind Subramanian, Chief Economic Adviser, Ministry of Finance, Government of India" for more details:
Here’s how it will work: every year India’s central government collects about $200 billion in taxes. From that sum it then passes along about $60 billion to the 29 state governments. Following recommendations by India’s 14th Finance Commission, Parliament this past week accepted a watershed reform that not only increases the size of transfers to states from $60 billion to $80 billion, but also changes how this tax revenue is distributed between states.
The reform changes the “horizontal devolution” formula so that the pie will now – for the first time – be shared between states not just on the basis of population, area, and income, but also forest cover.