Budget 2015, presented by Finance Minister Arun Jaitley, has a first. In it, India has accepted that it has a de-facto carbon tax—on petroleum products and dirty coal. Arguably, the only big green initiative of this budget is the increase of cess on coal—from Rs 100 per tonne to Rs 200 per tonne. But the question is: is this carbon tax, imposed on the carbon content of fuel, doing what it should—reduce greenhouse gas emissions that are responsible for climate change? In other words, is there a design behind the carbon tax to ensure we move beyond polluting fossil fuels?