Why COP26 inadvertently shores up coffers of Indian state exchequers

Taxes on alcohol, petrol and diesel make up over half of the state's commercial tax revenues

India’s success in delaying the demise of fossil fuels at the Glasgow climate forum by taking a hard position may have unwittingly extended financial lifelines to scores of Indian states. Climate change is less of a concern in state capitals — despite events such as flash floods, torrential downpours and smoggy skies plaguing Chennai, Mumbai or Delhi with increasing regularity.

What is scarier for state administrations is the prospect of seeing fuel taxes vaporise if nations aggressively chart a path towards clean energy and electric vehicles (EVs). For India — both at the federal and state level — it’s not