In 2023, climate change-related taxes in India stood at approximately 18.37% of tax revenue. From 2024 to 2028, these taxes are forecasted to rise from 18.57% to 19.38%, reflecting a steady year-on-year increase of about 1.08% to 1.09%. Over the five-year period, the compound annual growth rate (CAGR) is roughly 1.3%.
Future trends to watch for:
- Regulatory changes intensifying climate action could further increase tax rates.
- Public and political pressure may drive more aggressive policies.
- Technological advances in clean energy influencing tax structures.
