As Arctic shipping increases, pressure is mounting to protect the environment from fuels that are harmful when burned and spilled, including heavy fuel oil (HFO). Presently, the IMO is working to develop a ban on HFO in Arctic waters.
As the world strives to cut carbon emissions, electric power from renewables has emerged as a vital energy source. Yet transport and industry will still require combustible fuels for many purposes. Such needs could be met with hydrogen, which itself can be produced using renewable power.
A task force constituted by Niti Aayog in a report titled Action Plan for Clean Fuel said that taxation and pricing strategy is needed to provide impetus to cleaner fuels and discouraging the use of polluting ones. Lower taxes on the cleaner fuels are sought and for the purpose, GST can create a level playing field in the country, it said.