The Assam State Cabinet, chaired by Chief Minister Himanta Biswa Sarma, on 7 September 2026 approved the Assam Green Cess Policy, 2026. The policy creates a framework to levy a green cess on selected activities that use natural resources or create environmental pressures.

What is the Green Cess Policy?

A green cess is a charge imposed on environmentally intensive activities to make resource users contribute towards environmental management and sustainable development.

The Cabinet has approved the framework for sectors including:

• Stone-crushing units and brick kilns, which can create dust, air pollution and pressure on mineral resources.
• Imported timber, recognising the environmental concerns associated with timber consumption and forest resources.
• Pollution-index-based industrial units, so that industries with greater environmental impact can be regulated.
• Commercial extraction and utilisation of groundwater, addressing the problem of excessive groundwater exploitation.
• Transfer of ownership of pre-owned motor vehicles, linking vehicle use with environmental considerations.

Objectives & expected use of revenue

The policy aims to combine environmental regulation with environmental financing. Revenue generated from the cess is proposed to support activities such as repair and strengthening of embankments and solar power projects.

This reflects the Polluter Pays Principle, under which those whose activities create environmental costs should contribute towards addressing those costs.

Institutional and Policy Context

• The policy forms part of Assam’s broader environmental governance framework involving departments dealing with Environment, Forest and Climate Change, Mines and Minerals, Industries and Commerce, Transport and Water Resources.
• It should also be understood alongside existing frameworks such as the Environment (Protection) Act, 1986 environmental pollution-control regulations, groundwater-management measures and Assam’s Electric Vehicle Policy, 2021.

Why is it important for Assam?

• The policy can create an economic incentive for cleaner production by increasing the cost of environmentally intensive activities.
• It can provide an additional source of funding for climate resilience, embankment protection and renewable energy.
• It can help Assam address the twin challenge of economic development and sustainable natural-resource management.
• Its success will depend on transparent rate-setting, scientific assessment of environmental impacts and effective monitoring to prevent evasion.

Exam Hook – Prelims

Consider the following statements about Assam Green Cess Policy, 2026:

1. It covers commercial extraction and utilisation of groundwater.
2. It proposes a green cess on stone-crushing units and brick kilns.
3. The revenue is intended to support environmental and infrastructure-related activities.

Which of the statements given above is/are correct?

Answer: 1, 2 and 3

One-line Wrap

Assam Green Cess Policy, 2026 seeks to convert environmental pressure into environmental responsibility by making resource-intensive activities contribute towards sustainable development and climate-resilient infrastructure.