As per the terms of reference of the Fifteenth Finance Commission –
“The Commission may consider proposing measurable performance-based incentives for States, at the appropriate level of government, in following areas (i) Achievements in implementation of flagship schemes of Government of India, disaster resilient infrastructure, sustainable development goals, and quality of expenditure; (ii) Progress made in sanitation, solid waste managementand bringing in behavioural change to end open defecation.”
In this regard, the Commission headed by its Chairman, Shri N. K. Singh and including its Members, held a detailed discussion with the senior officials of the Ministry of Environment, Forest and Climate Change. Discussions were held on the proposed formula for Forest Sector Based Tax Devolution along with a proposed catchment area treatment and forest restoration grant.
The meeting also discussed in detail the proposed recommendations for environment (pollution sector) and the proposed pollution abatement performance grant along with proposed formula for the purpose.
The recommendations for climate change under the NDC Goal 5 were also discussed in the meeting. The Commission considered the proposed formula for climate change ( NDC Goal 5 Grant) and the possibilities of climate change grant conditionality.