Report highlighted that India is shifting its focus from an unsustainable dependence on fossil fuel subsidies to fostering clean energy. 

Initiatives Facilitating Shift from Fossil Fuels to Clean Energy

• Fossil Fuel Subsidy Reform:  “Remove, target, and shift" approach has been adopted. 
  • This approach helped in reducing subsidies in the oil and gas sector by 85%, from a peak of $25 billion in 2013 to $3.5 billion by 2023.
  • India gradually phased out the subsidy on petrol and diesel (from 2010 to 2014). 
  • Approach helped in creating fiscal space for government support to renewable energy initiatives, critical electricity infrastructure, etc. 
• Role of Taxation: From 2010 to 2017, the Government implemented a cess on coal production and imports.
  • About 30% of the collections from this cess were allocated to a national clean energy and environment fund.
  • Tax revenues were further boosted by rising excise duties on petrol and diesel (2014 to 2017). 
  • This helped the Ministry of New and Renewable Energy in funding initiatives such as the Green Energy Corridor scheme.

• Major Government Schemes and Programmes: E.g. National Green Hydrogen Mission, PM-KUSUM scheme, etc.