COP 26- NET GAINS OR NET LOSSES?

THE CONTEXT: The 26th Conference of parties of the UN Framework Convention on Climate Change (UNFCCC), or CoP 26 was held in Glasgow, Scotland. At the summit, Prime Minister announced that India will aim to attain a net-zero emission target. What exactly is net-zero and why is it important? What has been India’s stance on it so far, and what does the new announcement by Prime Minister mean? In this article, we discuss everything from scratch from what is COP and its background and its targets.

 THE COP 26 OUTCOMES

The Glasgow meeting was the 26th session of the Conference of Parties to the UN Framework Convention on Climate Change or COP26. These meetings are held every year to construct a global response to climate change. Each of these meetings produces a set of decisions that are given different names. In the current case, this has been called the Glasgow Climate Pact. The main task for COP26 was to finalize the rules and procedures for the implementation of the Paris Agreement. Most of these rules had been finalized by 2018, but a few provisions, like the one relating to the creation of new carbon markets, had remained unresolved. However, due to clear evidence of worsening of the climate crisis in the six years since the Paris Agreement was finalized, host country United Kingdom was keen to ensure that Glasgow, instead of becoming merely a “procedural” COP, was a turning point in enhancing climate actions. The effort was to push for an agreement that could put the world on a 1.5-degree Celsius pathway, instead of the 2 degree Celsius trajectory which is the main objective of the Paris Agreement.

To sum it up, COP 26 results in

  • GLOBAL METHANE PLEDGE: Announced by US and EU to reduce the emissions of methane.
  • The UK COP26 Presidency released the ‘Climate Delivery Plan’, outlining an agenda and a timetable for developed countries to deliver $100 billion worth of monetary help to low-income countries to manage the climate crisis.
  • Initiative on Disaster Resilient infrastructure for small island countries.
  • Many countries updated their NDC’s like India.

WHAT WAS ACHIEVED?

Mitigation: The Glasgow agreement has emphasised that stronger action in the current decade was most critical to achieving the 1.5-degree target.

Accordingly, it has:

  • Asked countries to strengthen their 2030 climate action plans, or NDCs (nationally-determined contributions), by next year.
  • Established a work program to urgently scale-up mitigation ambition and implementation.
  • Decided to convene an annual meeting of ministers to raise the ambition of 2030 climate actions.
  • Requested the UN Secretary-General to convene a meeting of world leaders in 2023 to scale up the ambition of climate action.
  • Asked countries to make efforts to reduce the usage of coal as a source of fuel, and abolish “inefficient” subsidies on fossil fuels.
  • Has called for a phase-down of coal, and phase-out of fossil fuels. This is the first time that coal has been explicitly mentioned in any COP decision. It also led to big fracas at the end, with a group of countries led by India and China forcing an amendment to the word “phase-out” in relation to coal changed to “phase-down”.
  • But even this was not liking to the developing countries who then got it changed to “phase down unabated coal power and phase out inefficient fossil fuel subsidies while providing targeted support to the poorest and the most vulnerable in line with national circumstance”. Despite the dilution, the inclusion of language on the reduction of coal power is being seen as a significant move forward.

Adaptation: Most of the countries, especially the smaller and poorer ones, and the small island states, consider adaptation to be the most important component of climate action. These countries, due to their lower capacities, are already facing the worst impacts of climate change, and require immediate money, technology, and capacity building for their adaptation activities. As such, the Glasgow Climate Pact has:

  • Asked the developed countries to at least double the money being provided for adaptation by 2025 from the 2019 levels. In 2019, about $15 billion was made available for adaptation that was less than 20 percent of the total climate finance flows. Developing countries have been demanding that at least half of all climate finance should be directed towards adaptation efforts.
  • Created a two-year work program to define a global goal on adaptation. The Paris Agreement has a global goal on mitigation — reducing greenhouse gas emissions deep enough to keep the temperature rise within 2 degrees Celsius of pre-industrial times. A similar global goal on adaptation has been missing, primarily because of the difficulty in defining such a target. Unlike mitigation efforts that bring global benefits, the benefits from adaptation are local or regional.
  • There are no uniform global criteria against which adaptation targets can be set and measured. However, this has been a long-pending demand of developing countries and the Paris Agreement also asks for defining such a goal.

Finance: Every climate action has financial implications. It is now estimated that trillions of dollars are required every year to fund all the actions necessary to achieve the climate targets. But money has been in short supply.

  • Developed countries are under an obligation, due to their historical responsibility in emitting greenhouse gases, to provide finance and technology to the developing nations to help them deal with climate change. In 2009, developed countries had promised to mobilize at least $100 billion every year from 2020.
  • This promise was reaffirmed during the Paris Agreement, which also asked the developed countries to scale up this amount from 2025. The 2020 deadline has long passed but the $100 billion promise has not been fulfilled. The developed nations have now said that they will arrange this amount by 2023.

WHAT DOES THE GLASGOW AGREEMENT SAY?

A deal aimed at staving off dangerous climate change has been struck at the COP26 summit in Glasgow. The pact has:

  1. Expressed “deep regrets” over the failure of the developed countries to deliver on their $100 billion promise. It has asked them to arrange this money urgently and every year till 2025.
  2. Initiated discussions on setting the new target for climate finance, beyond $100 billion for the post-2025 period.
  3. Ask the developed countries to provide transparent information about the money they plan to provide.

INDIA’S NET ZERO PLEDGE

  • India is the world’s fourth-biggest emitter of carbon dioxide after China, the US and the EU.
  • But its huge population means its emissions per capita are much lower than other major world economies.
  • India emitted 1.9 tonnes of CO2 per head of population in 2019, compared with 15.5 tonnes for the US and 12.5 tonnes for Russia that year.

Prime Minister adds the country constitutes 17 percent of the global population and its contribution to the emission has remained only five percent. Talking about climate finance, PM said, all climate finance promises have been empty ones so far and developed countries must ensure one trillion dollar climate finance at the earliest. The idea of One Sun, One World, One Grid was mooted by Prime Minister at the Glasgow Summit and followed by a launch thereof. The initiative calls for the setting up of a global grid that would be able to transmit solar power that is clean energy anywhere and anytime. It will reduce the storage needs, make solar projects viable and reduce carbon footprints and the energy cost.

WHAT DOES IT MEAN TO BE NET-ZERO?

  • Net-zero is when a country’s carbon emissions are offset by taking out equivalent carbon from the atmosphere so that emissions in balance are zero.
  • Think about it like a bath – turn on the taps and you add more water, pull out the plug and water flows out. The amount of water in the bath depends on both the input from the taps and the output via the plughole. To keep the amount of water in the bath at the same level, you need to make sure that the input and output are balanced.
  • This state is also referred to as carbon neutral; although zero emissions and zero carbon are slightly different, as they usually mean that no emissions were produced in the first place.

WHY DO SOME ANALYSTS SEE NET-ZERO AS CONTROVERSIAL?

  • China has announced plans for carbon neutrality by 2060, while the US and EU aim to hit net zero by 2050.
  • Although a global coalition has coalesced around the concept, an increasingly vocal group views it as a distraction, helpful only to score political points.
  • Carbon neutrality looks to nascent technology to suck out CO2 from the atmosphere.
  • Youth movements and some scientists call this procrastination since it enables the fossil fuel industry to continue expanding. Many fossil fuel companies support net-zero goals.

ANALYSIS OF INDIA’S DECISION OF ‘NET ZERO BY 2070’

Pros: 

  • Impact of Global Warming & climate change on India i.e India is more vulnerable to extreme weather events like changing rainfall pattern which results into cyclones, flash floods and disasters, impact on agricultural sector etc. Hence it is the interest of India to reduce the emission to contribute towards that direction.
  • India always promotes soft power historically, despite of developing country India stated that we will contribute.
  • Leader of underdeveloped and small island nations like Mauritius, hence the moral obligation to do so.
  • The target of 2070 comes after the target given by other countries such as the US and other European countries by 2050, China by 2060. To some extent, the 2070 target is achievable and pragmatic.

Cons: 

  • India is still a developing nation, where it requires huge energy.
  • High Population
  • Increased poverty
  • CBDR principles
  • Do not have clean technology
  • Difficult to reduce the coal dependency immediately, as of now more than 50 percent of energy production is from coal.
  • The major problem lies in the finance/resources to invest in renewable energy technology
  • Overall emissions- very less when compared to developed nations.

 India’s Intended Nationally Determined Contribution (INDC) to UNFCCC:

  1. To reduce the emissions intensity of GDP by 33%-35% by 2030 below 2005 levels.
  2. To achieve about 40 percent cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030, with the help of the transfer of technology and low-cost international finance, including from Green Climate Fund.

To create an additional carbon sink of 2.5 to 3 billion tonnes of CO2 equivalent through other forest and tree cover by 2030.

HOW ARE OTHER BIG COUNTRIES PURSUING NET-ZERO?

As the largest emitter of GHGs, China told the U.N. in 2020 that it would move to net-zero by 2060. Its pledge to peak CO2 emissions before 2030 and achieve carbon neutrality three decades later is among the most high-profile commitments.

  • As the second biggest emitter with large historical emissions returned to the Paris Agreement under President Joe Biden with an ambitious 2050 net-zero plan.
  • The European Union (E.U.) member-states have committed themselves to reduce emissions by at least 55% by 2030 over 1990 levels.
  • In July, the E.U. published a climate law that binds the bloc to its 2030 emissions target and carbon neutrality by 2050.

WHAT ARE INDIA’S CORE DEMANDS?

India has said it is “open to all options” provided it gets assurances that commitments in previous COPs such as developing countries getting compensated to the tune of $100 billion annually, the carbon-credit markets be reinvigorated and the countries historically responsible for the climate crisis be compensated by way of “Loss and Damages,” and clean development technologies be made available in ways that its industries can painlessly adapt to.

Loss and Damage: The frequency of climate disasters has been rising rapidly, and many of these cause largescale devastation. The worst affected are the poor and small countries and the island states. There is no institutional mechanism to compensate these nations for the losses or provide them help in the form of relief and rehabilitation. The loss and damage provision in the Paris Agreement seeks to address that.

What is Climate Justice?

Climate justice is a term used for framing global warming as an ethical and political issue, rather than one that is purely environmental or physical in nature.

  1. Climate Litigations
  2. Protests
  3. Dedicated Judicial/Quasi-Judicial
  4. Political Cooperation. (CBDR)

INDIA’S MEASURES

  • India is working to reduce its emissions, aligned with the goal of less than two °C global temperature rise, seen in its headline pledge to cut the emissions intensity of GDP by 33%-35% by 2030 over the 2005 level. But it has not favored a binding commitment towards carbon neutrality.
  • It is also not aligned with the more ambitious goal of a 1.5°C temperature rise. Among the contentious issues it faces is heavy reliance on coal. According to the International Energy Agency’s India Energy Outlook 2021, coal accounts for close to 70% of electricity generation.
  • Cutting greenhouse gases that heat the atmosphere and contribute to climate change involves shifting power production away from coal, greater adoption of renewables, and transforming mobility through electric vehicles. Some praise India for its renewables target: scaling up power from renewables such as solar and wind to 450 GW by 2030.
  • Some politicians support a net-zero target as it can put India on a green development trajectory, attracting investment in innovative technologies.
  • The National Electric Mobility Mission Plan (NEMM) intends to allow hybrid and electric vehicles to become the first choice for the purchasers so that these vehicles can replace the conventional vehicles and thus reduce liquid fuel consumption in the country from the automobile sector.
  • Pradhan Mantri JI-VAN Yojana, 2019: The objective of the scheme is to create an ecosystem for setting up commercial projects and to boost Research and Development in the 2G Ethanol sector. The 2018 Biofuel Policy has the objective of reaching 20% ethanol-blending and 5% biodiesel-blending by the year 2030.
  • GOBAR (Galvanizing Organic Bio-Agro Resources) DHAN scheme, 2018: It focuses on managing and converting cattle dung and solid waste in farms to useful compost, biogas, and bio-CNG, thus keeping villages clean and increasing the income of rural households. It was launched under Swachh Bharat Mission (Gramin).

THE WAY FORWARD

What India must do to follow through on COP26 commitments

There must be transparent, credible action that would allow India to demonstrate genuine climate leadership for the rest of the developing world, and secure a better, greener future for its citizens. To meet the challenge at hand, we see three guiding principles that could help bring this week’s bold pledges to life.

  • First, India must combine emissions reductions with climate adaptation, embedding environmental justice for people and nature. Justice will involve strengthening a suite of social protection programs, especially for those facing growing rural distress, and investing in disaster preparedness as extreme weather becomes more common. Inspired by civic movements of the 20th century, India can build climate vocabularies and actions for citizens so they can be agents of change and protect those who speak up for environmental justice.
  • Second, corporate India has a vital role to play in complementing government policy. Much like how the independence movement galvanized home-grown industry around a shared vision, India Inc’s 21st-century objective must be to foster innovative, inclusive green development. Swadeshi practices weren’t limited to the big players alone — today, MSMEs must accelerate their decarbonization trajectories, too.
  • Third, to deliver decarbonization and development, India will need data and democratic deliberation. Building state capacity can help the country move from reactive decision-making to proactive planning and execution. But India will also require the analytical horsepower to craft and implement evidence-based policies.

 A Low-Carbon Development Commission supported by the overarching framework of climate law, as proposed by the Centre for Policy Research, could play this role. Beyond stakeholder engagement, this would also foster coordinated climate governance across India’s institutional arrangement, which is currently scattered across a range of often siloed ministries, agencies, and bodies.

THE CONCLUSION: The COP26 represents a bold step, but the devil is in the details. Following through on these commitments with transparent, credible action would allow India to demonstrate genuine climate leadership for the rest of the developing world, and secure a better, greener future for its citizens. On balance, COP26 took many steps forward. But for the miracle of 1.5-degree C to come true, policies, research, and funding must drive rapid adoption of available climate technologies and make new technologies like clean hydrogen, flexible solar films, high-density storage batteries, and carbon capture and usage a reality. Every commitment, policy, and action in this direction is a ray of hope.

ADD TO YOUR KNOWLEDGE

THE WORLD SHOULD SHUT NEARLY 3,000 COAL PLANTS TO KEEP ON CLIMATE TRACK

According to research by climate think tank TransitionZero, the world will need to shut down nearly 3,000 coal-fired power plants before 2030 if it is to have a chance of keeping temperature rises within 1.5 Celsius.

  • TransitionZero said there are currently more than 2,000 GW of coal-fired power in operation across the world, and that needs to be slashed by nearly half, requiring the closure of nearly one unit per day from now until the end of the decade.
  • The need to close nearly 1,000 gigawatts of coal-fired capacity would put the onus on China – the world’s biggest source of climate-warming greenhouse gas and owner of around half of the world’s coal-fuelled plants – to accelerate its shift towards cleaner electricity.
  • China has reduced the share of coal in its total energy mix from 72.4% in 2005 to 56.8% last year, but absolute consumption volume has continued to rise.

THE BACKGROUND

About the UNFCCC:

UNFCCC is an acronym for the United Nations Framework Convention on Climate Change, signed in 1992 in New York. It came into force on 21st March 1994 for the reduction of Greenhouse gases from the atmosphere to reduce Global warming.   It has been ratified by 197 countries and is called to have a near-universal membership and is the parent treaty of the 2015 Paris Climate Change Agreement. The countries that have ratified the convention are called the UNFCCC conference of parties (COP).

  • The main aim of the Paris Agreement is to keep a global average temperature rise this century well below 2 Celsius and to drive efforts to limit the temperature increase even further to 1.5 degrees Celsius above pre-industrial levels.

The UNFCCC was established to work towards “stabilization of greenhouse gas concentrations in the atmosphere.”

It laid out a list of responsibilities for the member states which included:

  • Formulating measures to mitigate climate change
  • Cooperating in preparing for adaptation to the impact of climate change
  • Promoting education, training, and public awareness related to climate change

What is the COP?

The Conference of Parties or COP is the supreme decision-making body of the Convention. All States that are Parties to the Convention are represented at the COP, at which they review the implementation of the Convention and any other legal instruments that the COP adopts and take decisions necessary to promote the effective implementation of the Convention, including institutional and administrative arrangements.

HISTORY OF IMPORTANT COP’S AND ITS OUTCOMES

COP 1, Berlin, 1995: At the first conference, the signatories agree to meet annually to maintain control over global warming and see the need to reduce emissions of polluting gases.

COP 3, Kyoto. 1997: The Kyoto Protocol is adopted with the commitment to reduce emissions of greenhouse gases in industrialized countries. Lays the foundation of the carbon market.

Quick Facts:

  • India ratified Kyoto Protocol in 2002.
  • The Kyoto Protocol came into force in February 2005.
  • There are currently 192 Parties.
  • The USA never ratified Kyoto Protocol.
  • Canada withdrew in 2012.
  • Goal: Fight global warming by reducing greenhouse gas concentrations in the atmosphere to “a level that would prevent dangerous anthropogenic interference with the climate system.”
  • Kyoto protocol aimed to cut emissions of greenhouse gases across the developed world by about 5 per cent by 2012 compared with 1990 levels.
  • The Protocol is based on the principle of common but differentiated responsibilities.

Kyoto Protocol is the only global treaty with binding limits on GHG emissions.

The Kyoto Protocol emission target gases include

  • Carbon dioxide (CO2),
  • Methane (CH4),
  • Nitrous oxide (N2O),
  • Sulphur hexafluoride (SF6),
  • Groups of hydrofluorocarbons (HCFs) and
  • Groups of Perfluorocarbons (PFCs).

Two commitments Periods:

  1. 2008-2012
  2. 2013-2020.

The Kyoto Flexible Market Protocol mechanisms include:

  1. Clean Development Mechanism (CDM)
  2. Emission Trading
  3. Joint Implementation (JI)

COP 13, Bali, 2007: The Bali Roadmap sets a timetable for negotiations for a new international agreement to replace the Kyoto Protocol and include all countries, not only the developed ones.

COP 15, Copenhagen, 2009: The objective of keeping global warming below 2 ºC is validated and developed countries commit to financing developing countries in the long term.

COP16, Cancun, 2010: The Cancun Agreements, which formalizes the commitments set out in Copenhagen, is written and the Green Climate Fund is created mainly for climate actions in developing countries.

COP17, Durban, 2011: This time, all countries agree to start reducing emissions, including the US, and emerging countries (Brazil, China, India, and South Africa). It was decided to negotiate a global agreement that would come into force in 2020.

COP18, Doha, 2012: It is decided to extend the Kyoto Protocol until 2020. Countries like the US, China, Russia, and Canada did not support the extension.

COP20, Lima, 2014: For the first time, all countries agree to develop and share their commitment to reducing emissions of greenhouse gases. Apart from no agreements were reached.

COP21, Paris, 2015: Results in Paris Agreement came into force in 2016. The conference objective is to achieve a legally binding and universal agreement on climate to be signed in 2015 and implemented by 2020.

Signatories: 195 as of 2019; 180+ countries have ratified; India signed and ratified in 2016.

Outcomes:

  • The expected key result was an agreement to set a goal of limiting global warming to “well below 2 °C” Celsius compared to pre-industrial levels.
  • The agreement calls for zero net anthropogenic greenhouse gas emissions to be reached during the second half of the 21st century.
  • In the adopted version of the Paris Agreement, the parties will also “pursue efforts to limit the temperature increase to 1.5 °C.”
  • The 1.5 °C goals will require zero-emissions sometime between 2030 and 2050, according to some scientists.
  • The developed countries reaffirmed the commitment to mobilize $100 billion a year in climate finance by 2020 and agreed to continue mobilizing finance at the level of $100 billion a year until 2025.
  • In 2017, the United States announced that the U.S. would cease all participation in the 2015 Paris Agreement on climate change mitigation.
  • In accordance with Article 28 of the Paris Agreement, the earliest possible effective withdrawal date by the United States cannot be before November 2020. Thus, The U.S. will remain a signatory till November 2020.

Kyoto Protocol VS Paris Agreement

Kyoto Protocol:

  1. Categorization of Countries
  2. Binding emission norms on developed countries.
  3. Principle of CBDR implemented.

Paris Agreement:

  1. No categorization
  2. No binding emission rather Voluntary norms (NDC’s).
  3. Diluted the CBDR.

NOTE: In Paris Agreement, India and France launched the “International Solar Alliance”.

COP22, Marrakesh, 2016: Against all expectations, the Paris Agreement came into force a few days before the Summit, after being ratified by most nations. The result of the negotiations at this meeting was encapsulated in three documents: the Marrakesh Action Proclamation, a strong political message supporting the Paris Agreement at a time when the change in the White House was generating uncertainty; the Marrakesh Partnership to strengthen climate collaboration for the period up to 2020, and the first meeting of the CMA, the decision-making body for the Paris Agreement.

COP23, Bonn, 2017: At this Climate Summit, progress was made on the Rulebook to detail how the Paris Agreement will work in practice (Paris Rulebook), with the aim of concluding it in 2018. Facilitative Dialogues, known as the Talanoa Dialogue, were also created, a process allowing countries to share experiences and good practices to achieve the Agreement objectives. The Talanoa Dialogue Platform was launched to promote the participation and dialogue of local and indigenous communities. A Gender Action Plan was adopted to ensure the role of women in decision-making related to climate change.

COP24, Katowice, 2018: Little over two months before the Summit began, the IPCC published its report analyzing the impacts of a 1.5°C global temperature increase, which focused debate on a need for greater urgency in reducing polluting emissions. Nevertheless, although this was mentioned, it was not considered to be a guide for action in the texts agreed. Meanwhile, the Talanoa Dialogue ended, the next step being to review the 2020 climate plans to align them with the set objective of limiting global warming. Finally, one of the most important articles of the negotiation was left unresolved: Article 6 permitting the development of carbon markets.

COP25, Madrid, Spain 2019: It is worrisome that COP25, which was meant to prepare the way for implementation of the Paris Agreement post-2020, did not make much progress. Nevertheless, states should take the period prior to COP26 as an opportunity to renew their commitments and appropriately plan for climate action. COP26 is expected to initiate the implementation of the Paris Agreement.

AAU (Assigned amount unit): A Kyoto Protocol unit equal to 1 metric ton of CO2 equivalent. Each Annex I Party issues AAUs up to the level of its assigned amount, established pursuant to the Kyoto Protocol. Assigned amount units may be exchanged through emissions trading.

Abatement: Abatement is the word that is used to denote the result of decreased Greenhouse Gases emissions. This can also be taken as an activity to lessen the effects of the Greenhouse Effect.

Adaptation Fund: The Adaptation Fund was established to finance concrete adaptation projects and programs in developing countries that are particularly vulnerable and are Parties to the Kyoto Protocol. The Fund is to be financed with a share of proceeds from clean development mechanism (CDM) project activities and receive funds from other sources. It is operated by the Adaptation Fund Board.

Albedo: A measure of the reflectivity of a surface ranging from 0 to 1; albedo is calculated by taking the ratio of reflected radiation to incoming radiation, such that a surface that reflects 100% of the light hitting it has an albedo of 1 and a surface that absorbs 100% of the light hitting it has an albedo of 0

Black carbon (BC): Operationally defined aerosol species based on measurement of light absorption and chemical reactivity and/or thermal stability. It is sometimes referred to as soot. BC is mostly formed by the incomplete combustion of fossil fuels, biofuels, and biomass but it also occurs naturally. It stays in the atmosphere only for days or weeks. It is the most strongly light-absorbing component of particulate matter (PM) and has a warming effect by absorbing heat into the atmosphere and reducing the albedo when deposited on snow or ice.

Blue carbon: It is the carbon captured by living organisms in coastal (e.g., mangroves, salt marshes, seagrasses) and marine ecosystems, and stored in biomass and sediments

Biocarbon: It is the carbon that trees, plants and healthy soils naturally absorb and store. Plants absorb carbon from the atmosphere through photosynthesis. This helps to reduce CO₂ pollution that is changing our climate

Bio-Carbon Fund: The Bio-Carbon Fund provides carbon finance for projects that sequester or conserve greenhouse gases in forests, agro- and other ecosystems. Through its focus on bio-carbon, or ‘sinks’, it delivers carbon finance to many developing countries that otherwise have few opportunities to participate in the Clean Development Mechanism (CDM), or to countries with economies in transition through Joint Implementation (JI). The Bio-Carbon Fund tests and demonstrates how Land use, Land-use Change, and Forestry (LULUCF) activities can generate high-quality Ecological Resilience (ERs) with environmental and livelihood benefits that can be measured, monitored, and certified and stand the test of time.

Carbon market: A popular (but misleading) term for a trading system through which countries may buy or sell units of greenhouse-gas emissions in an effort to meet their national limits on emissions, either under the Kyoto Protocol or under other agreements, such as that among member states of the European Union. The term comes from the fact that carbon dioxide is the predominant greenhouse gas, and other gases are measured in units called “carbon-dioxide equivalents.”

Carbon Finance: Carbon finance is a new branch of environmental finance. Carbon finance explores the financial implications of living in a carbon-constrained world, a world in which emissions of carbon dioxide and other greenhouse gases (GHGs) carry a price. The general term is applied to investments in GHG emission reduction projects and the creation (origination) of financial instruments that are tradable on the carbon market.

Carbon budget: This term refers to three concepts in the literature:

  1. An assessment of carbon cycle sources and sinks on a global level, through the synthesis of evidence for fossil fuel and cement emissions, land-use change emissions, ocean and land CO2 sinks, and the resulting atmospheric CO2 growth rate. This is referred to as the global carbon budget;
  2. The estimated cumulative amount of global carbon dioxide emissions that that is estimated to limit global surface temperature to a given level above a reference period, taking into account global surface temperature contributions of other GHGs and climate forcers;
  3. The distribution of the carbon budget is defined under the regional, national, or sub-national level based on considerations of equity, costs, or efficiency.

Carbon dioxide removal (CDR): Anthropogenic activities remove CO2 from the atmosphere and durably store it in geological, terrestrial, or ocean reservoirs, or in products. It includes existing and potential anthropogenic enhancement of biological or geochemical sinks and direct air capture and storage but excludes natural CO2 uptake not directly caused by human activities.

Carbon Rights: A carbon right is a new and unique form of land interest that confers upon the holder a right to the intangible benefit of carbon sequestration on a piece of forested land.

Carbon Offset: (Also known as Carbon Credits) A mechanism for individuals and businesses to neutralize rather than actually reduce their greenhouse gas emissions by purchasing the right to claim someone else’s reductions as their own is known as a carbon offset.

Carbon Stock: The quantity of carbon held within a pool is known as carbon stock. It is measured in metric tons of CO2.

Carbon Pools: A reservoir of carbon that has the potential to accumulate (or lose) carbon over time is known as a carbon pool. In Agriculture Forestry and Other Land Use (AFOLU), this encompasses aboveground biomass, belowground biomass, litter, deadwood, and soil organic carbon.

Emission intensity: It is defined as the total amount of greenhouse gas emissions emitted for every unit of GDP. Importantly, it counts emissions beyond those related to energy (such as emissions from agriculture) and greenhouse gases beyond carbon dioxide (such as methane).

Carbon price:  The price for avoided or released carbon dioxide (CO2) or CO2-equivalent emissions. This may refer to the rate of a carbon tax, or the price of emission permits. In many models that are used to assess the economic costs of mitigation, carbon prices are used as a proxy to represent the level of effort in mitigation policies.

Carbon Trade: Carbon trading is an exchange of credits between nations designed to reduce emissions of carbon dioxide. Carbon trading is also referred to as carbon emissions trading. Carbon emissions trading accounts for most emissions trading.

Carbon leakage: A term used to refer to the problem whereby industry relocates to countries where emission regimes are weaker, or non-existent.

Carbon Sink: A carbon pool that is increasing in size is known as a carbon sink. A carbon pool can be a sink for atmospheric carbon if during a given time interval more carbon is flowing into it than out of it.

Carbon sequestration: It is the long-term storage of carbon in plants, soils, geologic formations, and the ocean. Carbon sequestration occurs both naturally and as a result of anthropogenic activities and typically refers to the storage of carbon

Carbon tax: It is a tax levied on firms that produce carbon dioxide (CO2) through their operations. It is used as an incentive to reduce the economy-wide usage of high-carbon fuels and to protect the environment from the harmful effects of excessive carbon dioxide emissions.

Carbon Footprint: A carbon footprint is the total amount of greenhouse gases (including carbon dioxide and methane) that are generated by our actions. … To have the best chance of avoiding a 2℃ rise in global temperatures, the average global carbon footprint per year needs to drop under 2 tons by 2050.

Carbon cycle:  The term used to describe the flow of carbon (in various forms, e.g., as carbon dioxide (CO2), carbon in biomass, and carbon dissolved in the ocean as carbonate and bicarbonate) through the atmosphere, hydrosphere, terrestrial and marine biosphere, and lithosphere. The reference unit for the global carbon cycle is GtCO2 or GtC (Gigatonne of carbon = 1 GtC = 1015 grams of carbon. Which corresponds to 3.667 GtCO2).

Cleantech: It is any technology that aims to reduce or limit environmental impacts. These technologies are developed by a broad array of companies, including new ‘start up’ businesses, that operate across different aspects of the economy. Examples of cleantech include electric vehicles and wave-power turbines, to materials that make buildings more energy-efficient.

Climate neutrality: Concept of a state in which human activities result in no net effect on the climate system. Achieving such a state would require a balancing of residual emissions with emission (carbon dioxide) removal as well as accounting for regional or local biogeophysical effects of human activities that, for example, affect surface albedo or local climate.

Climate target: A climate target refers to a temperature limit, concentration level, or emissions reduction goal used towards the aim of avoiding dangerous anthropogenic interference with the climate system. For example, national climate targets may aim to reduce greenhouse gas emissions by a certain amount over a given time horizon, for example, those under the Kyoto Protocol.

Climate sensitivity:  Climate sensitivity refers to the change in the annual global mean surface temperature in response to a change in the atmospheric CO2 concentration or another radiative forcing.

Climate variability: Climate variability refers to variations in the mean state and other statistics (such as standard deviations, the occurrence of extremes, etc.) of the climate on all spatial and temporal scales beyond that of individual weather events. Variability may be due to natural internal processes within the climate system (internal variability), or to variations in natural or anthropogenic external forcing (external variability).

Environmental democracy: It is based on the idea that land and natural resource decisions adequately and equitably address citizens’ interests. Rather than setting a standard for what determines a good outcome, environmental democracy sets a standard for how decisions should be made.

Enhanced weathering:  Enhancing the removal of carbon dioxide (CO2) from the atmosphere through the dissolution of silicate and carbonate rocks by grinding these minerals to small particles and actively applying them to soils, coasts, or oceans.

Carrying Capacity: The carrying capacity of a biological species in an environment is the population size of the species that the environment can sustain indefinitely, given the food, habitat, water, and other necessities available in the environment.

Certified emission reductions (CER): A Kyoto Protocol unit equal to 1 metric tonne of CO2 equivalent. CERs are issued for emission reductions from CDM project activities. Two special types of CERs called temporary certified emission reduction (tCERs) and long-term certified emission reductions (lCERs) are issued for emission removals from afforestation and reforestation CDM projects.

Climate Governance: It is the diplomacy, mechanisms, and response measures “aimed at steering social systems towards preventing, mitigating or adapting to the risks posed by climate change.”

Decarbonization: The process by which countries, individuals, or other entities aim to achieve zero fossil carbon existence. Typically refers to a reduction of the carbon emissions associated with electricity, industry, and transport.

Emissions trading: A market-based instrument aiming at meeting a mitigation objective in an efficient way. A cap on GHG emissions is divided into tradeable emission permits that are allocated by a combination of auctioning and handing out free allowances to entities within the jurisdiction of the trading scheme. Entities need to surrender emission permits equal to the number of their emissions (e.g., tonnes of CO2). An entity may sell excess permits to entities that can avoid the same amount of emissions in a cheaper way. Trading schemes may occur at the intra-company, domestic, or international level (e.g., the flexibility mechanisms under the Kyoto Protocol and the EU-ETS) and may apply to carbon dioxide (CO2), other greenhouse gases (GHGs), or other substances.

Emission Trading Scheme (ETS): A scheme set up to allow the trading of emissions permits between businesses and/or countries as part of a cap-and-trade approach to limiting greenhouse gas emissions. The best-developed example is the EU’s trading scheme, launched in 2005.

Forest Carbon Partnership Facility: The Forest Carbon Partnership Facility (FCPF) which became operational in June 2008, is a global partnership focused on reducing emissions from deforestation and forest degradation, forest carbon stock conservation, sustainable management of forests, and enhancement of forest carbon stocks (REDD+)

Fugitive fuel emissions: Greenhouse-gas emissions as by-products or waste or loss in the process of fuel production, storage, or transport, such as methane given off during oil and gas drilling and refining, or leakage of natural gas from pipelines.

Green bonds: Green bonds raise capital for projects that have environmental benefits. They require the borrower to report on how the funds raised have been used. They’re not to be confused with sustainability bonds, which fund a combination of green and social projects, such as affordable housing.

“Green Carbon“: Green carbon is carbon removed by photosynthesis and stored in the plants and soil of natural ecosystems and is a vital part of the global carbon cycle. Many plants and most crops, have short lives and release much of their carbon at the end of each season, but forest biomass accumulates carbon over decades and centuries. Furthermore, forests can accumulate large amounts of CO2 in relatively short periods, typically several decades. Afforestation and reforestation are measures that can be taken to enhance biological carbon sequestration.

Geological sequestration: The injection of carbon dioxide into underground geological formations. When CO2 is injected into declining oil fields it can help to recover more of the oil.

Global Environment Facility (GEF): The GEF is an independent financial organization that provides grants to developing countries for projects that benefit the global environment and promote sustainable livelihoods in local communities. The Parties to the Convention assigned operation of the financial mechanism to the GEF on an ongoing basis, subject to review every four years. The financial mechanism is accountable to the COP.

Global average temperature: The mean surface temperature of the Earth was measured from three main sources: satellites, monthly readings from a network of over 3,000 surface temperature observation stations and sea surface temperature measurements taken mainly from the fleet of merchant ships, naval ships, and data buoys.

 Global energy budget: The balance between the Earth’s incoming and outgoing energy. The current global climate system must adjust to rising greenhouse gas levels and, in the very long term, the Earth must get rid of energy at the same rate at which it receives energy from the sun.

 Global dimming: An observed widespread reduction in sunlight at the surface of the Earth, which varies significantly between regions. The most likely cause of global dimming is an interaction between sunlight and microscopic aerosol particles from human activities. In some regions, such as Europe, global dimming no longer occurs, thanks to clean air regulations.

Internal Climate Variability: Variability may result from natural internal processes within the climate system is known as internal climate variability.

Joint Liaison Group (JLG): Group of representatives of UNFCCC, CBD, and UNCCD Secretariats set up to explore common activities to confront problems related to climate change, biodiversity, and desertification.

JUSSCANNZ: An acronym representing non-EU industrialized countries that occasionally meet to discuss various issues related to climate change. The members are Japan, the United States, Switzerland, Canada, Australia, Norway, and New Zealand. Iceland, Mexico, and the Republic of Korea may also attend JUSSCANZ meetings.

Net negative emissions:  A situation of net negative emissions is achieved when, as a result of human activities, more greenhouse gases are removed from the atmosphere than are emitted into it. Where multiple greenhouse gases are involved, the quantification of negative emissions depends on the climate metric chosen to compare emissions of different gases (such as global warming potential, global temperature change potential, and others, as well as the chosen time horizon).

Ocean acidification (OA): Ocean acidification refers to a reduction in the pH of the ocean over an extended period, typically decades or longer, which is caused primarily by uptake of carbon dioxide (CO2) from the atmosphere, but can also be caused by other chemical additions or subtractions from the ocean. Anthropogenic ocean acidification refers to the component of pH reduction that is caused by human activity (IPCC, 2011, p. 37).

Ocean fertilization:  Deliberate increase of nutrient supply to the near-surface ocean in order to enhance biological production through which additional carbon dioxide (CO2) from the atmosphere is sequestered. This can be achieved by the addition of micro-nutrients or macro-nutrients. Ocean fertilization is regulated by the London Protocol.

Temperature overshoot The temporary exceedance of a specified level of global warmings, such as 1.5°C. Overshoot implies a peak followed by a decline in global warming, achieved through anthropogenic removal of CO2 exceeding remaining CO2 emissions globally.

“Spill-over effects” (also referred to as “rebound effects” or “take-back effects”): Reverberations in developing countries caused by actions taken by developed countries to cut greenhouse-gas emissions. For example, emissions reductions in developed countries could lower demand for oil and thus international oil prices, leading to more use of oil and greater emissions in developing nations, partially off-setting the original cuts. Current estimates are that full-scale implementation of the Kyoto Protocol may cause 5 to 20 percent of emissions reductions in industrialized countries to “leak” into developing countries.

 

 

 

 

 




Today’s Important Articles for Pub Ad (07-01-2022)

  1. Inter-Caste Marriage ; Need For Strict Implementation of LaxmiBai Judgment READ MORE
  2. Power Of Judicial Review: How Supreme Court Caused Changes In Government Decisions in 2021 READ MORE
  3. To bridge the digital divide, bridge the distance between student and teacher READ MORE
  4. Social justice forays into medical education READ MORE



Today’s Important Articles for Sociology (07-01-2022)

  1. Is it right to increase the age of marriage of women to 21? READ MORE
  2. Raising marital age of women: Smashing patriarchy or further regression? READ MORE



Today’s Important Articles for Geography (07-01-2022)

  1. Come Up With Conservation Plan For Sarus Crane Birds: Bombay HC Tells Govt READ MORE
  2. Wet end of 2021 leads to fewer migratory birds in Odisha’s Chilika this year READ MORE



Ethics Through Current Developments (07-01-2022)

  1. The Meaning Of Life READ MORE
  2. Vigilantism is about failure of the system: Life, goes the cliche, imitates art. But life is not a film that ends in a few hours. READ MORE



WSDP Bulletin (07-01-2022)

(Newspapers, PIB and other important sources)

Prelim and Main

  1. Cabinet approves Memorandum of Understanding between India and Turkmenistan on Cooperation in the field of Disaster Management READ MORE
  2. Cabinet approves Agreement between India and Spain on Cooperation and Mutual Assistance in Customs Matters READ MORE
  3. Cabinet approves MoU between India and Nepal for construction of bridge over Mahakali River at Dharchula (India) – Dharchula (Nepal) READ MORE
  4. Seasonal fluctuations in darters’ movements being monitored READ MORE
  5. Cabinet approves Rs 12,000 crore for second phase of Green Energy Corridor READ MORE
  6. Maharashtra, Tamil Nadu among 5 Indian states with dirtiest coal power stations: CSE analysis READ MORE
  7. Airtel Payments Bank gets permission to function as scheduled bank from RBI READ MORE

Main Exam

GS Paper- 1

  1. Is it right to increase the age of marriage of women to 21? READ MORE
  2. Raising marital age of women: Smashing patriarchy or further regression? READ MORE

GS Paper- 2

POLITY AND GOVERNANCE

  1. Inter-Caste Marriage ; Need For Strict Implementation of LaxmiBai Judgment READ MORE
  2. Power Of Judicial Review: How Supreme Court Caused Changes In Government Decisions in 2021 READ MORE

SOCIAL JUSTICE

  1. Worrying trends in nutrition indicators in NFHS-5 data READ MORE
  2. To bridge the digital divide, bridge the distance between student and teacher READ MORE
  3. Social justice forays into medical education READ MORE

INTERNATIONAL ISSUES

  1. The US-Russia tango, and the Indo-Pacific READ MORE
  2. Building up on Indo-French ties READ MORE

GS Paper- 3

ECONOMIC DEVELOPMENT

  1. The politics of a Minimum Support Price: Facilitating a bargain between wealth accumulators and welfare seekers seems to have become the key function of politics READ MORE  
  2. Bridging tech and agriculture READ MORE
  3. Roadblocks remain on way to economic growth READ MORE

ENVIRONMENT AND ECOLOGY

  1. Come Up With Conservation Plan For Sarus Crane Birds: Bombay HC Tells Govt READ MORE
  2. Wet end of 2021 leads to fewer migratory birds in Odisha’s Chilika this year READ MORE

GS Paper- 4

ETHICS EXAMPLES AND CASE STUDY

  1. The Meaning Of Life READ MORE
  2. Vigilantism is about failure of the system: Life, goes the cliche, imitates art. But life is not a film that ends in a few hours. READ MORE

Questions for the MAIN exam

  1. ‘Empowerment of women through education should be a priority irrespective of the law’. Discuss the statement.
  2. Discuss the role of technology to improve crop productivity and farmer welfare.

QUOTATIONS AND CAPTIONS

  • Always be a little kinder than necessary.
  • Empowerment of women through education should be a priority irrespective of the law.
  • Facilitating a bargain between wealth accumulators and welfare seekers seems to have become the key function of politics.
  • Welfare schemes have created significant development outcomes in the long and short term, as experience from many Indian States over the decades shows. They were seen as the deepening of democracy.
  • When welfare is weaponised to mute substantive political questions, its impact on democracy is less reassuring. The current generation of welfare schemes do not come as a right of citizens but as the generosity of the individual leader.
  • India’s nutrition programmes must undergo a periodic review addressing gaps such as institutional delivery and adolescent anaemia.
  • Stability in Russia-US ties will alleviate pressure on India at a time when the rise of China has changed the geopolitical calculus for the Indo-Pacific.
  • A careful reading of their experiences suggests an underlying challenge in online education post-Covid — the limited presence of teachers.
  • Healthcare is a matter of national importance, a key to Swasth Bharat, and the resident doctors are crucial for the entire healthcare system.
  • The proposed law to raise the marital age of Indian women is not very productive in the attainment of better health and education health status for them.

50-WORD TALK

  • The outcome of the third wave, yet in its initial stages, will unfold itself much later. But dealing with its impact on the economy immediately is becoming a major challenge for both the Central and state governments in 2022. It has already claimed its first casualty. The contact-intensive sectors that were poised for a resurgence are again facing a slump.

Things to Remember:

  • For prelims-related news try to understand the context of the news and relate with its concepts so that it will be easier for you to answer (or eliminate) from given options.
  • Whenever any international place will be in news, you should do map work (marking those areas in maps and also exploring other geographical locations nearby including mountains, rivers, etc. same applies to the national places.)
  • For economy-related news (banking, agriculture, etc.) you should focus on terms and how these are related to various economic aspects, for example, if inflation has been mentioned, try to relate with prevailing price rises, shortage of essential supplies, banking rates, etc.
  • For main exam-related topics, you should focus on the various dimensions of the given topic, the most important topics which occur frequently and are important from the mains point of view will be covered in ED.
  • Try to use the given content in your answer. Regular use of this content will bring more enrichment to your writing.



Day-121 | Daily MCQs | UPSC Prelims | HISTORY

[WpProQuiz 131]




Essay Question Paper: UPSC CSE Mains 2021

Section A

  • 1. The process of self-discovery has now been technologically outsourced.
  • 2. Your perception of me is a reflection of you; my reaction to you in an awareness of me.
  • 3. Philosophy of wantlessness is Utopian, while materialism is a chimera.
  • 4.The real is rational and the rational is real.

Section B

  • 5. Hand that rocks the cradle rules the world.
  • 6. What is research, but a blind date with knowledge!
  • 7. History repeats itself, first as a tragedy, second as a farce.
  • 8. There are better practices to “best practices”.


DOWNLOAD PDF




DAILY CURRENT AFFAIRS (JANUARY 06, 2022)

THE INDIAN ECONOMY

1. BIOENERGY CROPS CREATE A COOLING EFFECT ON CULTIVATED AREAS

THE CONTEXT: Researchers found that global air temperature decreases by 0.03~0.08 °C, with strong regional contrasts and inter-annual variability, after 50 years of large-scale bioenergy crop cultivation.

THE EXPLANATION:

  • The researchers — led by Institute for Global Change Studies, Beijing — looked at the biophysical climate effects of large-scale bioenergy crops to fully assess their role in climate mitigation.
  • According to a new study, converting annual crops to perennial bioenergy crops can induce a cooling effect on the areas where they are cultivated.
  • Cultivation area under bioenergy crops occupies 8 percent ± 0.5 percent of the global total land area, but they exert strong regional biophysical effects, leading to a global net change in air temperature of −0.08 ~ +0.05 degrees Celsius.
  • The study also demonstrated the importance of the crop type choice, the original land use type upon which bioenergy crops are expanded, the total cultivation area and its spatial distribution patterns.

Importance:

  • The biophysical cooling or warming effects of bioenergy crop cultivation can significantly strengthen or weaken the effectiveness of bioenergy crop cultivation with carbon capture and storage (BECCS) in limiting the temperature increments, depending on the cultivation map and the bioenergy crop type.
  • Large-scale bioenergy crop cultivation induces a biophysical cooling effect at the global scale, but the air temperature change has strong spatial variations and inter-annual variability.
  • Cultivating eucalypt shows generally cooling effects that are more robust than if switchgrass is used as the main bioenergy crop, implying that eucalypt is superior to switchgrass in cooling the lands biophysically.
  • Replacing forests with switchgrass not only results in biophysical warming effects but could also release more carbon through deforestation than converting other short vegetation to bioenergy crops.
  • Deforestation, therefore, should be avoided. The magnitude of changes in the biophysical effects also depends on the total area under cultivation.

What are Bioenergy Crops?

  • Bioenergy crops are defined as any. plant material used to produce bioenergy. These crops have the capacity to produce large volumes of biomass, have high energy potential, and can be grown in marginal soils.
  • It is a renewable source of energy that is produced from plants and animals. … Some forms of bioenergy have been around for a long time. Examples include burning wood to create heat, using biodiesel and ethanol to fuel vehicles, and using methane gas and wood to generate electricity.

Impacts on Environment:

2. SIX ONE DISTRICT ONE PRODUCT BRANDS LAUNCHED UNDER THE PMFME

THE CONTEXT: The Union Ministry of Food Processing Industries launched six, One District One Product (ODOP) brands under the Pradhan Mantri Formalizations of Micro food processing Enterprises (PMFME) Scheme.

THE EXPLANATION:

  • The Ministry of Food Processing Industries has signed an agreement with NAFED for developing 10 brands of selected ODOPs under the branding and marketing component of the PMFME scheme. Out of these, six brands namely Amrit Phal, Cori Gold, Kashmiri Mantra, Madhu Mantra, Somdana, and Whole Wheat Cookies of Dilli Bakes.
  • Through this initiative under the PMFME scheme, the Ministry of Food Processing Industries aims to encourage the micro food processing enterprises (MFPEs) across the country about the vision, efforts, and initiatives of the Government to formalise, upgrade and strengthen them and take them a step closer to Aatmanirbhar Bharat.

Value Addition:

PMFME Scheme

  • The PMFME Scheme is a centrally sponsored scheme that aims to enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry.
  • It aims to enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry and promote formalization of the sector,
  • It further aims to promote formalization of the sector and provide support to Farmer Producer Organizations, Self Help Groups, and Producers Cooperatives along their entire value chain.
  • The scheme envisions to directly assisting the 2,00,000 micro food processing units for providing financial, technical, and business support for the up-gradation of existing micro food processing enterprises.

A major component of the scheme

One District One Product

  • Under the One District One Product (ODOP) component of the PMFME Scheme, the Ministry of Food Processing Industries approved ODOP for 137 unique products.
  • The GIS ODOP digital map of India has been launched to provide details of ODOP products of all the States and UTs.
  • The digital map also has indicators for Tribal, SC, ST, and aspirational districts.
  • It will enable stakeholders to make concerted efforts for its value chain development.

About NAFED:

  • National Agricultural Cooperative Marketing Federation of India Ltd.(NAFED), established in 1958, is registered under the Multi State Co-operative Societies Act.
  • Nafed was setup with the object to promote Co-operative marketing of Agricultural Produce to benefit the farmers.
  • The objectives of the NAFED shall be to organize, promote and develop marketing, processing and storage of agricultural, horticultural and forest produce, distribution of agricultural machinery, implements and other inputs, undertake inter-state, import and export trade etc.

THE ENVIRONMENT ECOLOGY AND CLIMATE CHANGE

3. THE NEW RULES ON FLY ASH DISPOSAL

THE CONTEXT: The notification from the Union Ministry of Environment, Forest and Climate Change intends to “bring out a comprehensive framework for ash utilization including a system of environmental compensation based on the polluter-pays principle”.

THE EXPLANATION:

The New Rule highlights:

  • It is mandatory for Thermal Power Plants (TPPs) to ensure 100% utilization of fly ash within three to five years.
  • Existing provisions allow TPPs to fully utilize fly ash in a four-year cycle in a staggered manner.
  • It also introduced fines of Rs 1,000 on non-compliant plants under the ‘polluter pays principle’, taking into account utilization targets from April 1, 2022.
  • The ‘polluter pays principle is the commonly accepted practice that those who produce pollution should bear the costs of managing it to prevent damage to human health or the environment.
  • Under this, the collected fines will be deposited in the designated account of the Central Pollution Control Board (CPCB).
  • The fine collected by CPCB from the TPPs and other defaulters shall be used towards the safe disposal of the unutilized ash.
  • It also deals with unutilized accumulated ash (legacy ash) where TPPs will have to utilize it within 10 years from the date of publication of final notification in a staggered manner.
  • If the utilization of legacy ash is not completed at the end of 10 years, a fine of Rs 1000 per tons will be imposed on the remaining unutilized quantity which has not been fined earlier.

BACKGROUND:

  • India has over 200 coal power plants that generate an enormous amount of fly ash. According to the Central Electricity Authority, India’s coal plants generated 232.56 million tonnes of fly ash in 2020-2021. Although 93 percent of it was utilized, millions of tonnes accumulated over the years lie unused.
  • A study by the think tank Centre for Science and Environment in March 2021 found that over half of India’s power plants failed to fully utilize their fly ash and fell behind previous government targets.
  • The new notification will replace the 1999 notification that had originally set up rules for fly ash utilisation. It will also supersede the various amendments to the 1999 notification made in 2003, 2009 and 2016, which have all sought to manage the generation of fly ash.

What do experts say?

  • According to experts, the introduction of a penalty for non-compliance and acknowledgment of legacy ash is a step in the right direction, but there are other facets that the notification doesn’t adequately address.
  • “The notification calls the filling of low-lying areas an eco-friendly method of utilizing fly ash, but more often than not, this is a euphemism for irresponsibly dumping ash. Dumping ash in low-lying areas can lead to severe ecological consequences.
  • A report found that there were eight major fly ash breaches between 2019 and 2021, leading to destruction and contamination.
  • While the notification says that all yearly and legacy ash must be utilized, it also makes a provision for ash stored in dykes and ponds — structures built for large amounts of ash disposal — saying that as long as such storage is “stabilized” or reclaimed by growing plantations, coal power plants certified with the CPCB can be excluded from the 10-year deadline.
  • “It is critical to take policy measures to link fly ash utilization with steps being taken by the government to prevent diseases and deaths and provide health services. The environmental regulation that emerges from this approach of ‘fly ash as a health risk’ has the potential to identify remedies to address the legacy impact and prevent future legal breaches.

Value Addition:

What is Fly Ash?

  • Fly ash is a byproduct of burning pulverized coal in thermal power plants.
  • During combustion, mineral impurities in the coal (clay, feldspar, quartz, and shale) fuse in suspension and float out of the combustion chamber with the exhaust gases. As the fused material rises, it cools and solidifies into spherical glassy particles called fly ash.
  • The low-grade coal used in thermal power generation carries 30-45% ash content. The high-grade imported coal has a low ash content of 10-15%.
  • Since most of the coal used in thermal plants is low-grade, it generates a large quantity of ash which requires a large area as landfill or ponds for disposal.
  • All fly ashes exhibit cementitious properties to varying degrees depending on the chemical and physical properties of both the fly ash and cement.

Composition:

  • Depending upon the source and composition of the coal being burned, the components of fly ash vary considerably, but all fly ash includes substantial amounts of silicon dioxide (SiO2), aluminum oxide (Al2O3) and calcium oxide (CaO), the main mineral compounds in coal-bearing rock strata.
  • Minor constituents include arsenic, beryllium, boron, cadmium, chromium, hexavalent chromium, cobalt, lead, manganese, mercury, molybdenum, selenium, strontium, thallium, and vanadium, along with very small concentrations of dioxins and PAH compounds. It also has unburnt carbon.

Applications:

  • It is an excellent material for making construction materials such as bricks, mosaic tiles and hollow blocks.
  • Bricks made of fly ash can help conserve soil to a great extent.
  • There are several eco-friendly ways to utilize fly ash so that it does not pollute air and water.
  • It includes the use of fly ash in the manufacturing of cement, ready-mix concrete; constructing roads, dams and embankments, and filling of low-lying areas and mines.

Health and environmental hazards:

  • Toxic heavy metals present: All the heavy metals found in fly ash nickel, cadmium, arsenic, chromium, lead, etc—are toxic in nature. They are minute, poisonous particles that accumulate in the respiratory tract, and cause gradual poisoning.
  • Radiation: For an equal amount of electricity generated, fly ash contains a hundred times more radiation than nuclear waste secured via dry cask or water storage.
  • Water pollution: The breaching of ash dykes and consequent ash spills occur frequently in India, polluting a large number of water bodies.
  • Effects on the environment: The destruction of mangroves, drastic reduction in crop yields, and the pollution of groundwater in the Rann of Kutch from the ash sludge of adjoining Coal power plants has been well documented.

 

THE DISASTER MANAGEMENT

4. THAILAND’S NEW EARLY WARNING TECHNOLOGY

THE CONTEXT: A new early warning and hazard monitoring system, ThaiAWARE, will provide advanced decision support capabilities to Thailand’s disaster managers, protecting the country’s 70 million residents from natural disasters.

THE EXPLANATION:

  • Thailand is prone to natural disasters, such as floods, droughts and tropical storms.
  • The country suffered an economic loss to the tune of $46,055,161 due to natural disasters from 2009-2018.
  • The National Disaster Relief Centre has indicated that flood disasters in Thailand between 1989 and 2018 caused more than B160.8 billion ($5.1 billion) in damage to the economy. The 2011 floods accrued economic damage of more than B23 billion ($0.7 billion) alone.
  • Thailand’s Disaster Prevention and Mitigation Department (DDPM) reported that flooding affected 229,220 households across 6,827 villages in 193 districts of 31 provinces, as of September 2021.
  • According to the Thailand Department of Disaster Prevention and Mitigation, 32 of the country’s 76 provinces have been affected by flooding in October 2021. In late September and early October 2021 , tropical storm Dianmu inundated the region, leading to flash flooding.

THE PRELIMS PRACTICE QUESTION 

Q1. Bisphenol A (BPA), a cause of concern, is a structural/key component in the manufacture of which of the following kinds of plastics?

                 a) Low-density polyethylene

                 b) Polycarbonate

                 c) Polyethylene terephthalate

                 d) Polyvinyl chloride

ANSWER FOR 04TH JANUARY 2022 

ANSWER: A

Explanation:

Dholavira: a Harappan city, is one of the very few well preserved urban settlements in South Asia dating from the 3rd to mid-2nd millennium BCE. Being the 6th largest of more than 1,000 Harappan sites discovered so far, and occupied for over 1,500 years, Dholavira not only witnesses the entire trajectory of the rise and fall of this early civilization of humankind, but also demonstrates its multifaceted achievements in terms of urban planning, construction techniques, water management, social governance and development, art, manufacturing, trading, and belief system. With extremely rich artifacts, the well-preserved urban settlement of Dholavira depicts a vivid picture of a regional center with its distinct characteristics, that also contribute significantly to the existing knowledge of Harappan Civilization as a whole.

The property comprises two parts: a walled city and a cemetery to the west of the city. The walled city consists of a fortified Castle with attached fortified Bailey and Ceremonial Ground, and a fortified Middle Town and Lower Town. A series of reservoirs are found to the east and south of the Citadel. The great majority of the burials in the Cemetery are memorial in nature.




Today’s Important Articles for Pub Ad (06-01-2022)

  1. Supreme Court must ensure hate speech guilty are punished READ MORE
  2. Age & agility READ MORE
  3. Opinion: The electoral bonds act akin to a ‘token’ in the hawala model READ MORE



Today’s Important Articles for Sociology (06-01-2022)

  1. What the targeting of Muslim women really means READ MORE
  2. Food insecurity and child malnutrition: New empirical evidence from India READ MORE



Today’s Important Articles for Geography (06-01-2022)

  1. Protect the Aravalli range: Thar desert can creep towards the east READ MORE  
  2. Climate funds: Developed nations must step up READ MORE
  3. Moving beyond a zero-sum approach: In many situations, acting for oneself as well as the group gets the best results READ MORE



Ethics Through Current Developments (06-01-2022)

  1. Message from Mumbai: Online mobs spreading hate should not be allowed to continue their work with impunity READ MORE
  2. Great ecstasy comes from doing something useless READ MORE



WSDP Bulletin (06-01-2022)

(Newspapers, PIB and other important sources)

Prelim and Main

  1. Write-offs in Covid year helped banks reduce bad loans: RBI READ MORE
  2. Bhojeshwara temple: A hidden living gem READ MORE
  3. Six One District One Product brands launched under the PMFME scheme of the Ministry of Food Processing Industries READ MORE
  4. UJALA completes 7 years of energy-efficient and affordable LED distribution READ MORE
  5. 74 lakh birds flock to Chilika, the largest wintering ground in the Indian subcontinent READ MORE

Main Exam    

GS Paper- 1

  1. Protect the Aravalli range: Thar desert can creep towards the east READ MORE  
  2. What the targeting of Muslim women really means READ MORE

GS Paper- 1

POLITY AND GOVERNANCE

  1. Supreme Court must ensure hate speech guilty are punished READ MORE
  2. Age & agility READ MORE
  3. Opinion: The electoral bonds act akin to a ‘token’ in the hawala model READ MORE

SOCIAL JUSTICE

  1. Food insecurity and child malnutrition: New empirical evidence from India READ MORE

INTERNATIONAL ISSUES

  1. The Chinese challenge uncovers India’s fragilities: The border crisis has laid bare political, economic and diplomatic problems — the result of choices made after 2014 READ MORE
  2. China: An abiding challenge for India READ MORE

GS Paper- 1

ECONOMIC DEVELOPMENT

  1. The infrastructure push: Higher expenditure will be needed to sustain recovery READ MORE
  2. Missing: Bank Credit Engine in India’s Economic Growth READ MORE
  3. To achieve $ 5 trillion GDP goal, India needs to revamp its regulatory frameworks READ MORE

ENVIRONMENT AND ECOLOGY

  1. Climate funds: Developed nations must step up READ MORE
  2. Moving beyond a zero-sum approach: In many situations, acting for oneself as well as the group gets the best results READ MORE

DISASTER MANAGEMENT

  1. Why short-termism is a recipe for disaster READ MORE
  2. Thailand’s new early warning technology to protect 70 million from disasters READ MORE

GS Paper- 1

ETHICS EXAMPLES AND CASE STUDY

  1. Message from Mumbai: Online mobs spreading hate should not be allowed to continue their work with impunity READ MORE
  2. Great ecstasy comes from doing something useless READ MORE

Questions for the MAIN exam

  1. ‘The judiciary has an absolute obligation and duty to step in when the executive fails in the enforcement of the fundamental rights of citizens’. Substantiate the statement.
  2. ‘The principle of constitutionalism is now a legal principle that requires control over the exercise of governmental power to ensure that it does not destroy the democratic principles upon which it is based’. Analyse.
  3. ‘Without transforming society from a neutral or contentious to a collaborative stance, expecting public-private-partnerships to work is unrealistic’. Critically examine.

QUOTATIONS AND CAPTIONS

  • In the midst of chaos, there is also opportunity.
  • Quick, appropriate regulatory frameworks that respond to technological changes and innovations are in themselves a significant source of value creation in an economy.
  • The targeting of Muslim women is not just a one-off thing; it is well ideated and deliberated. This is not just an attack on Muslim women alone; it’s an attack on religious identity, a normalisation of the ‘othering’ and dehumanisation of Muslims.
  • The electoral bonds scheme seems to be a systematic design to route the black money of the ruling political party at the Centre through its crony corporates.
  • Prompt reporting of cases, well-trained investigators and prosecutors, fast and fair trial are essential to control cyber crimes against women.
  • The rule of law is a basic structure and basic feature of the Constitution. It clearly obliges the executive to enforce the law, without fear or favour.
  • The judiciary has an absolute obligation and duty to step in when the executive fails in the enforcement of the fundamental rights of citizens.
  • The principle of constitutionalism is now a legal principle that requires control over the exercise of governmental power to ensure that it does not destroy the democratic principles upon which it is based.
  • A distinction between development and climate finance is vital. More funds are needed for climate adaptation projects.
  • As the LAC challenge heightens, India must evolve a resolute and effective holding strategy to prevent further salami-slicing by PLA.
  • Without transforming society from a neutral or contentious to a collaborative stance, expecting public-private partnerships to work is unrealistic.
  • While latest data signals nascent signs of recovery, it will be misleading to accept it at face value without accounting for the headwinds that lie in wait in the Indian macroeconomic scene.

50-WORD TALK

  • PM Modi cancelling the Ferozepur rally due to a ‘security lapse’ is disturbing. His safety is of prime concern. Its politicization is deplorable. What’s equally disconcerting is how politicians are holding meetings and rallies in poll-bound states as the third wave of the pandemic hits India. They are setting a terrible example.
  • India’s first Omicron case was in November, but we are still quoting data from South Africa and the UK to plan strategy. Without India-specific data about mortality, hospitalisation and demography of cases – Mumbai is an exception — we are shooting in the dark. Data transparency is a casualty of the pandemic.

Things to Remember:

  • For prelims-related news try to understand the context of the news and relate with its concepts so that it will be easier for you to answer (or eliminate) from given options.
  • Whenever any international place will be in news, you should do map work (marking those areas in maps and also exploring other geographical locations nearby including mountains, rivers, etc. same applies to the national places.)
  • For economy-related news (banking, agriculture, etc.) you should focus on terms and how these are related to various economic aspects, for example, if inflation has been mentioned, try to relate with prevailing price rises, shortage of essential supplies, banking rates, etc.
  • For main exam-related topics, you should focus on the various dimensions of the given topic, the most important topics which occur frequently and are important from the main point of view will be covered in ED.
  • Try to use the given content in your answer. Regular use of this content will bring more enrichment to your writing.



Day-120 | Daily MCQs | UPSC Prelims | POLITY

[WpProQuiz 130]




RBI REVISED PCA FRAMEWORK FOR BANKS

THE CONTEXT: In November 2021, RBI issued a revised Prompt Corrective Action (PCA) Framework for Scheduled Commercial Banks (SCBs) excluding Small Finance Banks, Payment Banks, and Regional Rural Banks to enable intervention at the appropriate time and require the SCB to initiate and implement remedial measures in a timely manner. The provisions of the revised PCA framework will be effective from January 1, 2022. The detailed analysis of the development is as follows.

THE DEVELOPMENT

  • The revised framework excludes return on assets as a parameter that may trigger action under the framework.
  • Payments banks and small finance banks (SFBs) have also been removed from the list of lenders where prompt corrective action can be initiated. Capital, asset quality, and leverage will be the key areas for monitoring in the revised framework.
  • Indicators to be tracked for capital, asset quality, and leverage would be CRAR/ common equity tier I ratio, net NPA ratio, and Tier I leverage ratio, respectively.
  • In governance-related actions, the RBI can supersede the board under Section 36ACA of the BR Act, 1949.
  • The framework will apply to all banks operating in India, including foreign banks operating through branches or subsidiaries based on breach of risk thresholds of identified indicators.

WHAT HAS CHANGED?

Key Monitoring areas:

  • 2017 (Revised) Framework: Capital, asset quality, and profitability, while leverage would be monitored additionally.
  • New Framework: Capital, Asset Quality and Leverage.

Indicators to be tracked: 

  • 2017 (Revised) Framework: Capital, asset quality, and profitability would be CRAR/ Common Equity Tier I ratio, Net NPA ratio, and Return on Assets, respectively.
  • New Framework: Capital, Asset Quality, and Leverage would be CRAR/ Common Equity Tier I Ratio, Net NPA Ratio, and Tier I Leverage Ratio, respectively.

Profitability – ROA:

  • 2017 (Revised) Framework: Negative ROA for 2/3/4 consecutive years
  • New Framework: Has been removed from the New Framework.

Capital – Risk Threshold 3: 

  • New Framework: RBI has specifically included this level of 400 bps below CRAR as a monitorable.

Leverage:

  • 2017 (Revised) Framework: Tier 1 Leverage ratio: Threshold 1: <=4.0% but > = 3.5% (leverage is over 25 times Tier 1 capital). Threshold 2: < 3.5% (leverage is over 28.6 times Tier 1 capital)
  • New Framework: Monitoring of leverage has been made explicit and levels have been made explicit across thresholds Threshold 1: Up to 50 bps below the regulatory minimum Threshold 2: More than 50 bps but not exceeding 100 bps below the regulatory minimum Threshold 3: More than 100 bps below the regulatory minimum.

Expense monitoring: 

  • 2017 (Revised) Framework: The following points were mandatory: Threshold 2: Higher provisions as part of the coverage regime. Threshold 3: Restriction on management compensation and directors’ fees, as applicable.
  • New Framework: These actions have been included in discretionary activities and have been made applicable across all thresholds. They have been combined and made more stringent by restriction/ reduction on variable operating costs, outsourcing activities, and restriction/reduction of outsourcing activities. Further restrictions on capital expenditure, other than for technological up-gradation within board-approved limits, have been made mandatory in risk threshold 3.

Discretionary Corrective Actions – Special Supervisory Actions:

  • 2017 (Revised) Framework: RBI could amalgamate/ reconstruct a bank under extant regulations.
  • New Framework: The RBI has specifically included resolution of the bank by Amalgamation or Reconstruction (Ref. Section 45 of Banking Regulation Act 1949) under the revised framework.

Exit from PCA and Withdrawal of Restrictions under PCA: 

  • 2017 (Revised) Framework: Exit of a bank from the PCA framework was based on RBI’s assessment on multiple parameters based on the financials of the bank.
  • New Framework: The new framework has laid down an explicit framework for a bank to exit the PCA framework as follows: Once a bank is placed under PCA, taking the bank out of PCA Framework and/or withdrawal of restrictions imposed under the PCA Framework will be considered: a) if no breaches in risk thresholds in any of the parameters are observed as per four continuous quarterly financial statements, one of which should be Audited Annual Financial Statement (subject to assessment by RBI); and b) based on Supervisory comfort of the RBI, including an assessment on sustainability of profitability of the bank.

WHAT IS PCA FRAMEWORK?

  • Prompt Corrective Action or PCA is a framework under which banks with weak financial metrics are put under watch by the RBI. The PCA framework deems banks as risky if they slip below certain norms on three parameters — capital ratios, asset quality, and profitability.
  • Based on where a bank stands on these ratios, it has three risk threshold levels (1 being the lowest and 3 the highest). Banks with capital to risk-weighted assets ratio (CRAR) of less than 10.25 percent but more than 7.75 percent fall under threshold 1.
  • Those with CRAR of more than 6.25 percent but less than 7.75 percent fall in the second threshold. In case a bank’s common equity Tier 1 (the bare minimum capital under CRAR) falls below 3.625 percent, it gets categorized under the third threshold level.
  • Banks that have a net NPA of 6 percent or more but less than 9 percent fall under threshold 1, and those with 12 percent or more fall under the third threshold level.
  • On profitability, banks with negative return on assets for two, three, and four years fall under threshold 1, threshold 2, and threshold 3, respectively.

WHAT IS THE PURPOSE OF THE PCA FRAMEWORK?

  • The objective of the PCA framework is to enable supervisory intervention at the appropriate time and require the supervised entity to initiate and implement remedial measures in a timely manner to restore its financial health.
  • Act as a tool for effective market discipline.
  • It does not preclude the Reserve Bank of India from taking any other action as it deems fit at any time, in addition to the corrective actions prescribed in the framework”.
  • In the last almost two decades — the PCA was first notified in December 2002 — several banks have been placed under the framework, with their operations restricted. In 2021, UCO Bank, IDBI Bank, and Indian Overseas Bank exited the framework on improved performance. Only the Central Bank of India remains under it now.

HOW DO BANKS BENEFIT FROM PCA?

  • One of the objectives of PCA is to amend a bank’s mistakes before they lead to a crisis.
  • RBI controls the loan disbursal of banks belonging to the PCA watchlist. That said, note that the regulator does not entirely prohibit PCA banks from disbursing loans.
  • RBI’s PCA framework has been designed to improve a bank’s financial performance by tracking vital metrics. In other words, it involves the RBI taking remedial measures.
  • PCA banks cannot enter a new line of business, which improves their core financials.
  • In some rare cases, RBI might choose to close non-compliant banks or initiate amalgamation for them.

WHEN DOES RBI INVOKE PROMPT CORRECTIVE ACTION?

RBI considers four factors to determine whether it needs to put a bank under the PCA framework. These include profitability, asset quality, capital ratios, and debt level. The central bank grades each of these factors based on actions depending upon the grade/threshold level, categorized from one to three, where 1 is the lowest of the lot and 3 is the highest based on how banks stand with respective frameworks.

Following is a look at these factors and their grades:

CAPITAL ADEQUACY RATIO (CRAR): The CRAR is the capital needed for a bank measured in assets (mostly loans) disbursed by the banks. The higher the assets, the higher should be the capital retained by the bank. This measures how much debt and equity capital banks possess to cover their asset book risk. If CRAR is less than 10.25%, but above 7.75%, the bank falls in the first grade. Banks having a CRAR of over 6.25%, but below 7.75%, fall under grade 2. However, if a bank’s capital adequacy ratio is less than 3.625%, it is categorized under grade 3.

ASSET QUALITY: This parameter refers to the non-performing assets of a bank. If the net NPA of a bank is more than 6%, but less than 9%, it falls under the first threshold. If Net NPA crosses the 9% mark, it triggers the second grade. That said, if this metric is 12% or more, the bank will fall in the third grade of PCA.

PROFITABILITY: The regulator considers the bank’s return on assets (ROA) as the key measure for profitability. Note that if a bank’s ROA is negative for two, three, and four years in a row, it will be categorized as grade 1, grade 2, and grade 3, respectively.

DEBT LEVEL/LEVERAGE: The last factor that RBI considers to measure the financial risk of any bank is its overall debt level/leverage. The regulator triggers grade 1 if the overall leverage is more than 25 times its Tier 1 capital. However, when total leverage is over 28.5 times its core capital (including disclosed reserves), RBI acts according to grade 2 of PCA.

WHAT HAPPENS WHEN RBI PUTS A BANK UNDER PCA?

When RBI puts a bank on its PCA watchlist, it imposes two types of limitations on it – mandatory and discretionary. These include restrictions related to the expansion of a branch, dividend, and director’s remuneration, and so on.

Nevertheless, the Central Bank may choose to take these actions at their discretion, where the RBI can:

  • Ask the bank’s board to reassess its business model and evaluate the profitability of the business line and operations.
  • Advise banks to reassess their business plans and strategy to take remedial measures, including dismissing certain officials from employment.
  • Ask a Bank’s board to implement a resolution plan after seeking approval from the supervisor.
  • Advise banks to gauge their viability over the medium to long term besides evaluating balance sheet estimates.
  • PCA banks might not be able to hire more employees or fill up vacant positions.
  • Lastly, RBI may allow PCA banks to incur capital expenditure only to upgrade technology. However, the allocation of funds for the same has to be within pre-approved limits.

ANALYSIS OF NEW FRAMEWORK

The revised rules propose changes on three fronts:

  1. The triggers to invoke PCA against a bank,
  2. The mandatory actions RBI may take after it
  3. Conditions for a bank to exit it.
  • Rules currently allow RBI to invoke PCA if a bank’s capital-to-risk weighted assets ratio and Tier 1 capital ratio, Return on Assets (ROA), net Non-Performing Assets, and leverage fall well short of statutory thresholds.
  • Under the new regime, a negative ROA will no longer trigger a bank to invite corrective action. This appears sensible because the accounting profit for a bank is the residual sum left over after provisioning for bad and doubtful loans.
  • A bank that proactively provisions for possible NPAs and maintains high provision coverage may report losses but is better protecting the interests of its stakeholders than a bank that skimps provisioning to show a profit.
  • Some of the corrective actions to be taken by RBI once a bank falls under PCA, have been left to its discretion instead of being mandated.
  • PCA rules require RBI to enforce higher provisioning norms and cap management compensation. The new rules allow it to take a discretionary call, perhaps to avoid denting depositor confidence.
  • The existing curbs placed by the RBI on PCA banks lending to lower-rated or unsecured borrowers have been diluted and replaced with more generic powers, which is a good step.

 THE CONCLUSION

While the new framework rightly affords RBI greater flexibility in resolving stressed banks on a case-to-case basis, the roadmap it offers for a bank’s exit from PCA appears to run counter to this. While such exit was earlier left to RBI’s discretion, the new regime requires a bank to stay above-mandated capital, NPA, and leverage thresholds for four consecutive quarters to apply for the exit. This may be a rather high bar. A troubled bank can mend its capital adequacy or leverage quickly with an infusion from its promoter. But resolving legacy NPAs often requires it to pursue business growth or margin-improving strategies that may not be possible while PCA ties its hands.




Today’s Important Articles for Pub Ad (05-01-2022)

  1. The hint of a ‘one nation one NGO’ regime READ MORE
  2. FCRA Denial to Missionaries of Charity Holds Lessons on Federalism READ MORE
  3. Poshan Abhiyaan: It’s time for national self-reflection READ MORE
  4. Institutionalising the bane of manual scavenging must end READ MORE



Today’s Important Articles for Sociology (05-01-2022)

  1. Poshan Abhiyaan: It’s time for national self-reflection READ MORE
  2. Institutionalising the bane of manual scavenging must end READ MORE
  3. Urbanisation of rituals: Durga Puja won UNESCO recognition because it moved from rural to urban Bengal READ MORE



Ethics Through Current Developments (05-01-2022)

  1. Saint Kuriakose Elias Chavara: a true karma yogi READ MORE
  2. Right time to Start Preparing for Life’s Exams READ MORE
  3. Cultivate Positive Thoughts in the Mind READ MORE



Today’s Important Articles for Geography (05-01-2022)

  1. A partnership to carry India into net-zero future READ MORE  
  2. Like Japan and Singapore, why doesn’t India burn plastic waste to produce energy? READ MORE
  3. Significant increase in rainfall in north, central Africa: Study READ MORE
  4. A Green Route READ MORE




WSDP Bulletin (05-01-2022)

(Newspapers, PIB and other important sources)

Prelim and Main

  1. Home Ministry push to Intelligence Bureau’s counter-terrorism grid READ MORE
  2. Extending the GST compensation READ MORE
  3. ICMR approves India-made kit to detect Omicron READ MORE
  4. India’s old dams: Gandhi Sagar in MP needs immediate repair, says CAG report India to acquire lithium, cobalt mines in South America, Australia READ MORE
  5. Moody’s assigns Baa2 rating to RIL’s $5 billion bonds issue READ MORE

Main Exam   

GS Paper- 1

  1. Urbanisation of rituals: Durga Puja won UNESCO recognition because it moved from rural to urban Bengal READ MORE

GS Paper- 1

POLITY AND GOVERNANCE

  1. The hint of a ‘one nation one NGO’ regime READ MORE
  2. FCRA Denial to Missionaries of Charity Holds Lessons on Federalism READ MORE

SOCIAL JUSTICE

  1. Poshan Abhiyaan: It’s time for national self-reflection READ MORE
  2. Institutionalising the bane of manual scavenging must end READ MORE

INTERNATIONAL ISSUES

  1. The bottom line in Blinken’s foray into Southeast Asia READ MORE
  2. The TRIPS waiver is needed more than ever READ MORE
  3. Delhi-Dhaka ties have a long way to go READ MORE

GS Paper- 1

ECONOMIC DEVELOPMENT

  1. The eligible denied benefits READ MORE
  2. Agriculture needs a separate budget READ MORE
  3. The uneven nature of India’s export growth READ MORE
  4. The limits of MSP: Farm sector needs intervention at multiple levels READ MORE

 ENVIRONMENT AND ECOLOGY

  1. A partnership to carry India into net-zero future READ MORE  
  2. Like Japan and Singapore, why doesn’t India burn plastic waste to produce energy? READ MORE
  3. Significant increase in rainfall in north, central Africa: Study READ MORE
  4. A Green Route READ MORE

GS Paper- 1

ETHICS EXAMPLES AND CASE STUDY

  1. Saint Kuriakose Elias Chavara: a true karma yogi READ MORE
  2. Right time to Start Preparing for Life’s Exams READ MORE
  3. Cultivate Positive Thoughts in the Mind READ MORE

Questions for the MAIN exam

  1. ‘To achieve net-zero target by 2070, India needs and active cooperation from the private sector’. Discuss how the private sector can help India to achieve net-zero?
  2. ‘India’s deficit in nutrition care can be bridged with systemic reforms for better maternal and child care’. Examine.
  3. ‘Agriculture is too diverse a subject for it to be compressed into a sub-section of the regular budgets of the Centre and States’. In light of the statement, whether do you think there should be separate budget for agriculture?

QUOTATIONS AND CAPTIONS

  • The increasing level of surveillance type of data sought has resulted in many organisations losing people on their governance structure and resulting in problems in funding.
  • The depth and the variety of the work of a civil society organisation cannot be captured in the annual returns filed on the FCRA portal, where there is no scope for explaining something beyond the binary.
  • With active cooperation from the private sector, India will be able to help build a more sustainable world.
  • India’s journey on the low-carbon pathway towards net-zero requires the active participation of all stakeholders. Sustainable lifestyles and climate justice are at the core of this journey.
  • With cooperation from the private sector, India will be able to responsibly use its fair share of the global carbon space and contribute to reaching the global net-zero goal to build a more environmentally sustainable planet.
  • India’s deficit in nutrition care can be bridged with systemic reforms for better maternal and child care.
  • Agriculture is too diverse a subject for it to be compressed into a sub-section of the regular budgets of the Centre and States.
  • The government will need a multi-pronged approach to address concerns in the farm sector. Guaranteed prices would only increase complications.
  • To succeed with necessary and rapid technology transfer and development, increased global cooperation is needed. No single country can complete the entire value chain for hydrogen and thus there is a need for cooperation among countries to secure markets and make green energy available at the earliest opportunity.

50-WORD TALK

  • A parliamentary panel with 30 men and one woman examining marriage age bill is inexcusable. Women parliamentarians are right in questioning why men should decide women’s rights. Their demand for better participation in scrutinising it is justified. RS chairman must look into skewed gender representation in standing committee on women.
  • China’s new bridge across the Pangong lake will give the PLA improved logistics in a region where India has enjoyed tactical advantages. This isn’t a game-changer, but it shows China is anticipating a long military face-off. The crisis on the LAC doesn’t seem likely to melt away any time soon.
  • The announcement of weekend curfew in Delhi is a knee-jerk, unimaginative reaction to the Covid surge. Much like night-time restrictions. The antidote to Covid is well established and simple – vaccines and masks. Governments should stop window dressing and creating alarm but should tell citizens how they are improving hospital infrastructure.

Things to Remember:

  • For prelims-related news try to understand the context of the news and relate with its concepts so that it will be easier for you to answer (or eliminate) from given options.
  • Whenever any international place will be in news, you should do map work (marking those areas in maps and also exploring other geographical locations nearby including mountains, rivers, etc. same applies to the national places.)
  • For economy-related news (banking, agriculture, etc.) you should focus on terms and how these are related to various economic aspects, for example, if inflation has been mentioned, try to relate with prevailing price rises, shortage of essential supplies, banking rates, etc.
  • For main exam-related topics, you should focus on the various dimensions of the given topic, the most important topics which occur frequently and are important from the mains point of view will be covered in ED.
  • Try to use the given content in your answer. Regular use of this content will bring more enrichment to your writing.



DAILY CURRENT AFFAIRS (JANUARY 05, 2022)

THE GEOGRAPHY

1. INDIA TO ACQUIRE LITHIUM, COBALT MINES IN SOUTH AMERICA, AUSTRALIA

THE CONTEXT: The Mines Ministry has created a joint venture (JV) company — Khanij Bidesh India (KABIL) — with participating interest from National Aluminium Company (NALCO), Hindustan Copper (HCL) and Mineral Exploration Corporation (MECL).

THE EXPLANATION:

  • India is working on acquiring mines of strategic minerals such as lithium and cobalt in producing countries like Australia, Argentina, Bolivia and Chile. The government’s move is aimed at ensuring a committed supply of raw materials especially for renewable energy (RE) and e-mobility sectors.
  • To ensure India’s mineral security as well as to attain self-reliance in the area of critical and strategic minerals, KABIL is mandated to identify and acquire overseas mineral assets of critical and strategic nature such as Lithium, Cobalt etc.
  • This initiative, aimed at giving further fillip to Atmanirbhar Bharat, will cater to the requirements of crucial sectors such as e-mobility, renewable energy, medicine, aerospace, aviation among others.
  • In the country, the Atomic Minerals Directorate (AMD) conducted preliminary surveys on the surface and limited subsurface exploration, which revealed the presence of Lithium resources of 1,600 tonnes (inferred category) in the pegmatites of Marlagalla–Allapatna area in Mandya district of Karnataka.
  • Presently, there is no production of cobalt in the country from primary cobalt resources. The demand for cobalt is usually met through imports. The refining capacity of cobalt in India is estimated at about 2,060 tonnes per year.

 

Importance of Cobalt and Lithium:

  • Cobalt is key for boosting energy density and battery life because it keeps the layered structure stable as lithium ions get reversibly stuffed into and extracted from the cathode during battery operation.
  • Lithium has the lowest density of all metals. It reacts vigorously with water.

THE INDIAN ECONOMY

2. NBBL UNVEILS UPMS TO SIMPLIFY BILL PAYMENTS

THE CONTEXT: NPCI Bharat BillPay (NBBL), the wholly-owned subsidiary of National Payments Corporation of India (NPCI), has introduced the ‘Unified Presentment Management System’ (UPMS) to simplify bill payments in the country.

THE EXPLANATION:

  • According to NPCI, the UPMS provides a great opportunity for the service providers and fintechs of the digital payments ecosystem to run through this innovative feature in the sandbox environment of BBPS. Several Operating Units (OUs) and Technical Service Providers (TSPs) are actively coming forward in the rapid deployment of UPMS.

UNIFIED PRESENTMENT MANAGEMENT SYSTEM (UPMS)

  • UPMS will help the customers to set up standing instructions, for any mode and from any channel on their recurring bill payments.
  • Bills will be fetched automatically from the billers and will be presented to customers for their action, in terms of bill payment and auto-debit management.
  • With the launch of UPMS, the motive is to enable all the Bharat BillPay Operating Units (BBPOU) to extend the facility for their customers or corporate clients with minimal effort by means of centralized infrastructure as well as application support provided by Bharat BillPay Central Unit (BBPCU).
  • UPMS will also help in democratizing recurring bill payments and making them convenient for customers.
  • It provides a great opportunity for fintech and service providers of the digital payments ecosystem for running through this innovative feature in the sandbox environment of BBPS.
  • UPMS will enable a common repository of bills. It will ensure that the entire bill payment ecosystem gets updated in real-time.

DEPLOYMENT OF UPMS

  • Technical Service Providers (TSPs) and Several Operating Units (OUs) are actively helping in the rapid deployment of UPMS. Ecosystem partners like IDFC FIRST Bank and Axis Bank are amongst Private Banks and PhonePe are actively engaged in taking UPMS services for their Billers and Consumers.

SIGNIFICANCE OF UPMS

  • UPMS service assumes criticality with undergoing category expansion, as a majority of the transactions in new categories under BBPS such as mutual fund, subscriptions, insurance, school fee payments, presently happen through presentment and standing instructions.

ABOUT NPCI

  • The National Payments Corporation of India (NPCI) is an initiative taken by the Reserve Bank of India (RBI) and the Indian Bank’s Association (IBA) to operate the retail payments and settlement systems in India. This organization was founded in the year 2008 under the Payment and Settlement Systems Act, 2007. NPCI has been incorporated as a ‘not for profit company under section 8 of the Companies Act 2013.

PRODUCTS OF NPCI

  • RuPay
  • National Common Mobility Card
  • Bharat Interface for Money (BHIM)
  • Unified Payments Interface (UPI)
  • Bharat Bill Payment System

 

THE ENVIRONMENT ECOLOGY AND CLIMATE CHANGE

3. THE LARGEST WINTERING GROUND OF THE INDIAN SUBCONTINENT

THE CONTEXT: Chilika Lake, the largest brackish water lake and wintering ground of the birds in the Indian subcontinent saw a million birds, including uncommon Mongolian gull, visiting the waterbody.

THE EXPLANATION:

  • Chilika lake hosts birds migrating from thousands of miles away from the Caspian Sea, Lake Baikal, Aral Sea, remote parts of Russia, Kirghiz steppes of Mongolia, Central and Southeast Asia, Ladakh and the Himalayas. The winged guests find the vast mud-field and abundant fish stock here suitable to congregate.
  • As per the waterbird status survey-2022 conducted in the Chilika, a total of 10,74,173 birds of the 107 waterbird species and 37,953 individuals of 76 wetland-dependent species were counted at the entire lagoon. In the year 2021, the count in Chilika was over 12 lakh. Bird census members reported rare sightings of the uncommon Mongolian gull.
  • The census was undertaken jointly by the Odisha State Wildlife Organisation, the Chilika Development Authority (CDA) and the Bombay Natural History Society. The Chilika Lagoon was divided strategically into 21 segments for the census.
  • A total of 3,58,889 birds (97 species) were counted in the Nalabana Bird Sanctuary inside Chilika – a decrease of 65,899 from the year 2021. The decrease is attributed to high water levels and the presence of water in cultivated fields in adjoining areas.
  • “Among the three pintail species of ducks, the northern pintail (1,72,285), gadwall (1,53,985), Eurasian wigeon (1,50,843) accounted for over one lakh in this year’s count,” says the report. However, the population of gadwall and Eurasian wigeon was less than that of the year 2021.
  • There was a marginal decrease in the number of species such as the northern shoveler, tufted duck and red-crested pochard. An increase in the population of northern pintail, common coot and common pochard was noticed.
  • “The increase in numbers for the greater flamingo at Nalabana mudflat indicates that the restoration at Nalabana is effective. This year’s greater flamingo count was the highest in the last one decade. It is largely due to appropriate management of mudflats”. Overall, the local resident species such as purple swamp-hen, purple heron, Indian moorhen, and jacanas were found in higher numbers.

VALUE ADDITION:

SIGNIFICANCE OF CHILIKA LAKE:

  • After the New Caledonian barrier reef, it is Asia’s largest and world’s second-largest brackish water lagoon.
  • A lagoon is a shallow body of water that is isolated from a larger body of water by a narrow landform like reefs, barrier islands, barrier peninsulas, or isthmuses.
  • It has been designated as a Ramsar Site and a possible UNESCO World Heritage Site.
  • Chilika Lake was declared as the first Ramsar Convention wetland of international importance in India in 1981.
  • Satapada Island, Irrawaddy dolphins are frequently seen.
  • In 1987, Nalabana Island (Forest of Reeds), a 16-square-kilometer island in the lagoon, was designated as a bird sanctuary.
  • It covers an area of nearly 1,100 km2 and is located at the mouth of the Daya River, which flows into the Bay of Bengal.

ABOUT BNHS:

  • The Bombay Natural History Society (BNHS), founded on 15 September 1883, is one of the largest non-governmental organisations in India engaged in conservation and biodiversity research
  • BNHS is the partner of Birdlife International in India, it has been designated “Scientific and Industrial Research Organization” by the Department of Science and Technology.

4. INCREASE IN RAINFALL IN NORTH AND CENTRAL AFRICA: STUDY

THE CONTEXT: Rainfall trend analysis of Africa published in the journal Remote Sensing showed a significant increase in annual rainfall at the national level from 1983 to 2020 in almost all regions of the continent, except those in the south and the east.

THE EXPLANATION:

  • Country-level annual rainfall variability indicated that after 2000, the annual rainfall in most of the countries in the Central African region exceeded 1,700 mm. However, Algeria, Tunisia, Mali, Niger and Western Sahara in the Northern and Eastern African regions showed an apparent increase in annual average rainfall from 1983 to 2020.
  • The highest annual rainfall trends were recorded in Rwanda (11.97 millimeters per year), the Gulf of Guinea (river basin 8.71 mm/year), the tropical rainforest climate zone (8.21 mm/year) and the Central African region (6.84 mm/year).
  • The lowest annual rainfall trends were recorded in Mozambique (−0.437 mm/year), the subtropical northern desert (0.80 mm/year), the west coast river basin of South Africa (−0.360 mm/year) and the Northern Africa region (1.07 mm/year).
  • In the tropical northern desert climates, tropical northern peninsulas and tropical grasslands, there was a significant increase in rainfall over the entire timeframe of the month, season and year.
  • Climate variability directly impacts agriculture and poses a significant threat to food security and livelihoods, especially in poor or developing countries.
  • A slight variation in climatic conditions can subject a large number of the rural poor to increased poverty and misery as their ability to earn their livelihoods is compromised.
  • Adverse impacts of climate variability and change are making it difficult for the poor rural populations to continue engaging in meaningful agriculture and obtain secure livelihoods. This is because agricultural productivity is highly dependent on rainfall.

BACKGROUND:

  • Africa receives rainfall over two major monsoons — the west African monsoon and East African monsoon. The Intergovernmental Panel on Climate Change Atlas introduced four other rainfall seasons, March-April-May, June-July-August, September-October-November, and December-January-February to study and compare the climate variability across geographies.
  • Rainfall in Africa is sensitive to large-scale climatic variables such as El Niño-Southern Oscillation, La Niña-Southern Oscillation, Indian Ocean Depot and Intertropical Convergence Zone. 

THE INTERNAL SECURITY AFFAIRS

5. INTELLIGENCE BUREAU’S COUNTER-TERRORISM GRID: MAC

THE CONTEXT: The Centre wants the States to share more intelligence inputs through the Multi-Agency Centre (MAC), a common counter-terrorism grid under the Intelligence Bureau (IB) that was made operational in 2001 post-Kargil war.

THE EXPLANATION:

  • Union Home Ministry asked the Director’s General of Police to share adequate information and actionable inputs through the MAC.
  • As many as 28 organizations, including the Research and Analysis Wing (R&AW), armed forces and State police are part of the platform and various security agencies share real-time intelligence inputs on the MAC. Plans are afoot for more than a decade to link the system up to the district level.
  • According to the Home Ministry, though the system existed to share information among various agencies, it was not being implemented effectively. “States are often reluctant to share information on the platform.
  • There are around 400 secured sites connected with the MAC headquarters. The reluctance on the part of the States was also stated in a parliamentary standing committee report in 2020.
  • The committee had observed that the contribution made over the years by State agencies is lower in the overall inputs that had been received at the MAC. The IB had informed the committee that all organizations that are in any way involved in the counter-terrorism effort is a member of this center. All the States have a subsidiary multi-agency center (SMAC) located in all State capitals. The IB informed the panel that the Ministry of Home Affairs (MHA), along with the IB, was contemplating extending the connectivity of SMAC to the districts.

WHAT IS THE NEED?

According to the Home Ministry, “It is highlighting the continued threats of terrorism and global terror groups, terror financing, narco-terrorism, organized crime-terror nexus, illicit use of cyberspace, movement of foreign terrorist fighters, it also stressed upon the need for better coordination and synergy among the central and state security agencies in countering the ever-changing counter-terrorism and security challenges.

ABOUT THE CENTRE

  • MAC was formed in December 2001 following the Kargil intrusion and the subsequent overhaul of the Indian national security apparatus suggested by the Kargil Review Committee report and GoM report.
  • Accordingly, the Intelligence Bureau (IB) was authorized to create a multi-agency center (MAC) in New Delhi.
  • Now functioning 24/7 as the nodal body for sharing intelligence inputs, MAC coordinates with representatives from numerous agencies, different ministries, both central and state.
  • As noted in a 2016 parliamentary report the major contributors of intelligence inputs to the MAC were the Defence Intelligence Agency (DIA) and the Research and Analysis Wing (R&AW).

THE PRELIMS PRACTICE QUESTION 

Q1. Which one of the following ancient towns is well-known for its elaborate system of water harvesting and management by building a series of dams and channelizing water into connected reservoirs?

  1. Dholavira
  2. Kalibangan
  3. Rakhigarhi
  4. Ropar

ANSWER FOR 04TH JANUARY 2022

ANSWER: C




Day-119 | Daily MCQs | UPSC Prelims | CURRENT DEVELOPMENTS

[WpProQuiz 129]