Advocacy Statement on the Green Bonus and the Future of the Himalaya: People for Himalaya
We, the undersigned organisations committed to ecological democracy, mountain livelihoods, and climate justice, welcome the recent appeal by the Constitutional Conduct Group urging the 16th Finance Commission to recognise the ecological contribution of the Himalayan states through a Green Bonus. The letter rightly highlights that Himachal Pradesh, Uttarakhand, Sikkim, Jammu & Kashmir, and other Himalayan states sustain India’s forests, rivers, and glaciers that nourish nearly half the country’s population. Yet, these very regions are being eroded by climate change, unchecked infrastructure, and fiscal compulsions that drive them to exploit their own ecological wealth.
The demand for a Green Bonus is both justified and necessary, but it must be accompanied by a clear and collectively defined framework for Himalayan development. The standards for what constitutes sustainable and equitable growth in the Himalaya must be discussed widely with the governments and people of these states. Himalayan regions should be designated as eco-sensitive or protected zones, where large construction projects, major industries, hydropower dams, and extensive road-widening are strictly regulated or prohibited. The objective must be to reduce extractive pressures, not legitimise them through compensation.
Beyond compensation, Green Bonus funding should promote community-based mixed forest development and green, small-scale industries that create local employment and add value to agricultural and forest products. Priority must be given to education and healthcare, following the Kerala model, where decentralised, participatory governance has enabled poverty reduction and improved quality of life. Horticulture and tourism can serve as additional livelihoods, but tourism must be responsible and environmentally sustainable, with local communities owning and managing these enterprises. Large, high-impact tourism projects must be discouraged in favour of decentralised and community-run destinations.
The Himalayan states face an impossible paradox: they are expected to conserve forests and regulate hydrology for the nation, while disasters, infrastructural collapse, and limited revenue options threaten their survival. The Green Bonus, therefore, is not charity but an instrument of fiscal justice within India’s federal system. Yet, it cannot become another exercise in offsetting and compensating that commodifies nature. Financial transfers alone will not fix systemic inequities; they must be tied to structural and institutional reform.
Transparency and accountability are essential, but so too is strong environmental regulation. Without effective enforcement of environmental and forest laws, fiscal incentives will not prevent degradation. Any Green Fund must include strict ecological performance criteria, independent monitoring, and public disclosure. Most importantly, Gram Sabhas and local governance institutions must have a decisive role in land-use planning, forest management, and environmental decision-making. This requires closing legal loopholes and strengthening the implementation of the Forest Rights Act, Environmental Impact Assessment, and related laws to revive the survival rights and needs of mountain communities rather than the “ease of doing business.”
If designed with justice, participation, and regulation at its core, the Green Bonus can advance fiscal, environmental, and social justice together. If not, it will merely place a price tag on the Himalaya’s collapse. We urge the Finance Commission and the Government of India to treat this as an opportunity for reform and rebalancing — to ensure that the mountains, their people, and their rights stand at the heart of India’s climate and development future.
Endorsed by:
People for Himalaya