Environmental Governance for Carbon Neutrality: Issues of Externality Sharing Mechanism in Himachal Pradesh

The valuation of ecosystem services, environmental externalities and the development of cost and benefit sharing mechanism are of utmost importance to every nation or province. Hence, the issue of environmental governance becomes very important at various levels. In its absence, the problem of free rider will lead to complete chaos.International platforms like IPCC,UNEP,UNFCC,WB, WWF etc. are taking up this issue very seriously and suggesting a number of strategies. Carbon credits and its trading is one such mechanism that has become very popular in recent years. The Government of Himachal Pradesh has now become proactive for reducing carbon emissions in recent years and envisaging a goal to become the first carbon neutral state in India. It has adopted several promotional as well as the restrictive measures for environmental preservation and minimal carbon emissions. In this regard, the Union Government too has to play a major role in order to compensate the states promoting initiatives with positive externality and tax those with negative externality for keeping development within environmental limits.