Note4Students
From UPSC perspective, the following things are important :
Mains level: Impact of EU’s CBAM policy;
Why in the News?
India has called protectionist policies like the EU’s Carbon Border Adjustment Mechanism (CBAM), Corporate Sustainability Due Diligence Directive, and Deforestation Regulation as “unfair” and “unjust”.
What is CBAM (Carbon Border Adjustment Mechanism)?
- CBAM (Carbon Border Adjustment Mechanism) is a proposed policy by the European Union (EU) aimed at addressing carbon leakage, ensuring that imported goods face a similar carbon cost as those produced within the EU.
- The mechanism requires companies that export goods to the EU from non-EU countries to purchase carbon certificates, reflecting the carbon emissions involved in the production of these goods.
- This is intended to create a level playing field for EU industries that have to meet strict carbon emissions regulations.
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How will the CBAM impact India’s key industries and overall trade?
- Disruption to Trade: CBAM could significantly affect India’s exports to the EU, especially sectors like iron, steel, aluminum, cement, and fertilizers, which account for a large portion of India’s trade with the EU.
- Increased Export Costs: The new requirements under CBAM, such as carbon emission certificates, will likely increase production costs for industries, making them less competitive in the global market.
- Risk to Iron and Steel Industry: As iron and steel make up 76.83% of India’s exports affected by CBAM, this sector could face the greatest challenge in terms of compliance and potential cost increases.
- Economic Strain on Developing Economies: The additional burden of having to meet emissions standards without corresponding support or time for transition may lead to economic difficulties for India’s industries.
What strategies can India employ to effectively challenge the CBAM?
- Coordination with Other Developing Countries: India should align its arguments with other developing economies to present a unified stance, ensuring a coordinated response to the EU-CBAM that reflects shared concerns.
- Arguing for Adequate Time for Adaptation: India can argue that developing nations should be given sufficient time to adapt to the CBAM, similar to the EU’s phased climate targets, to avoid disproportionate burden.
- Revenue Sharing: India can advocate for the EU to share the revenues generated from CBAM with non-EU countries to support capacity building, technology transfer, and emission reduction initiatives in developing nations.
- Equity-Based Accounting (EBA) Proposal: India can push for a more equitable framework for emission reductions, suggesting the adoption of an EBA that takes into account historical contributions to climate change, trade benefits, and the developmental needs of nations.
- Highlighting the CBAM’s Discriminatory Nature: India should emphasize that CBAM imposes an unjust transfer of climate responsibilities to developing countries without considering their economic realities or historical emissions.
What role does International cooperation play in addressing the challenges?
- Global Coordination on Climate Action: India should work with other developing countries to demand a more inclusive global framework for addressing climate change, ensuring that the impacts of mechanisms like CBAM are shared equitably.
- Technology and Knowledge Sharing: International cooperation can facilitate the transfer of green technologies, which would help developing nations meet emissions targets without stifling their economic growth.
- Addressing Historical Responsibilities: Cooperation with other nations can strengthen calls for addressing historical emissions and providing the necessary financial resources to developing countries to adapt to climate policies like CBAM.
- Leveraging Multilateral Platforms: India can use international platforms such as the UNFCCC and COP discussions to engage with other nations and challenge policies that disproportionately affect developing economies.
Conclusion: India should actively engage with other developing countries and form a coalition to present a unified front against the discriminatory nature of CBAM. This could involve joint lobbying at international forums such as the UNFCCC and COP summits.
Mains PYQ:
Q Describe the major outcomes of the 26th session of the Conference of the Parties (COP) to the United Nations Framework Convention on Climate Change (UNFCCC). What are the commitments made by India in this conference? (UPSC IAS/2021)
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Note4Students
From UPSC perspective, the following things are important :
Mains level: Trade and ties; USA-China Trade war;
Why in the News?
After the election of the USA, Prez Donald Trump plans to impose tariffs of up to 60% on Chinese imports and 10% on EU imports to address the U.S.-China trade deficit and reduce unfair subsidies.
What are the economic impacts of imposing tariffs on Chinese imports?
The imposition of tariffs, particularly those proposed by the U.S. on Chinese imports, can have domestic and international economic consequences.
- Increased Domestic Prices: Tariffs raise the cost of imported goods, leading to higher prices for U.S. consumers. This can contribute to domestic inflation, especially if tariffs are applied broadly across consumer goods.
- Impact on Trade Deficit: While tariffs may help reduce the trade deficit by discouraging imports, they can also lead to a rise in domestic production costs, which might not fully offset the increased prices for consumers.
- Shifts in Consumption: Tariffs may shift consumer preferences away from imported goods towards domestically produced items. This could boost local industries and potentially increase domestic supply, helping to moderate inflation if production meets demand.
- Global Trade Relations: The introduction of tariffs can provoke retaliatory measures from affected countries, leading to trade wars that can disrupt global supply chains and negatively impact international trade dynamics.
How might China respond to increased tariffs?
- Retaliatory Tariffs: Historically, China has imposed tariffs on U.S. goods in response to American tariffs. This could include targeting products from politically sensitive regions or sectors in the U.S. to maximize political impact.
- Currency Manipulation: China may allow its currency, the yuan, to depreciate, making its exports cheaper and counteracting the effects of U.S. tariffs.
- Increased Domestic Support: The Chinese government could implement fiscal stimulus measures to bolster domestic industries affected by U.S. tariffs, including subsidies for exporters and incentives for local production.
- Diversification of Trade Partners: China might further diversify its trade by strengthening ties with other countries and participating in regional trade agreements that exclude the U.S., reducing its reliance on American markets.
Do tariffs achieve their intended goals?
- Trade Balance Improvement: While tariffs are designed to improve the trade balance by reducing imports, their success is contingent upon consumer behaviour and whether domestic producers can meet demand without significant price increases.
- Political Ramifications: Retaliatory actions from China can undermine the intended benefits of tariffs, leading to a cycle of escalation that may harm both economies. The political fallout from these actions can also influence U.S. domestic politics, particularly if key industries are adversely affected.
- Long-Term Economic Impact: The long-term economic impact may be limited if countries like China successfully adapt through measures such as currency adjustments or finding alternative markets for their goods.
How can India benefit from it?
- Market Diversification: India can capture U.S. market share by exporting goods as American buyers seek alternatives to Chinese imports.
- Supply Chain Shift: India can attract companies relocating production from China, leveraging its manufacturing policies and workforce.
- Boost in FDI: Heightened U.S.-China tensions may increase Foreign Direct Investment in India as firms diversify investment destinations.
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Way forward:
- Strengthen Manufacturing and Exports: Enhance domestic production capabilities through schemes like PLI and focus on exporting goods demanded by the U.S., such as electronics, textiles, and pharmaceuticals.
- Attract Global Investments: Improve ease of doing business, offer tax incentives, and promote India as a reliable alternative to China for global supply chains and FDI inflows.
Mains PYQ:
Q The USA is facing an existential threat in the form of China, that is much more challenging than the erstwhile Soviet Union.” Explain. (UPSC IAS/2021)
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Note4Students
From UPSC perspective, the following things are important :
Mains level: Impact of Russia-Ukraine war;
Why in the News?
Exactly 1,000 days ago, world history took a dramatic turn when Russia initiated a full-scale military invasion with the goal of eradicating Ukrainian statehood, culture, and nationhood.
How has Ukraine demonstrated resilience against Russian aggression?
Ukraine has demonstrated remarkable resilience against Russian aggression since the full-scale invasion began on February 24, 2022. Key factors contributing to this resilience include:
- National Unity: The unification of the Ukrainian people under President Volodymyr Zelenskyy has been crucial. This collective spirit has galvanized both military and civilian efforts to resist Russian advances, leading to significant victories such as the defense of Kyiv and the liberation of the Kharkiv and Kherson regions.
- Military Strength: Throughout the conflict, the Ukrainian armed forces have transformed into one of the strongest military forces globally. Their ability to repel invaders and conduct successful counteroffensives has been widely recognized and admired internationally.
- International Support: Ukraine has received substantial military, financial, and humanitarian aid from allies worldwide. This support has been instrumental in sustaining its defense efforts and rebuilding initiatives.
- Cultural and Moral Resolve: The war has fostered a strong sense of identity among Ukrainians, who view their struggle as not only for survival but also for European values and democracy. This moral clarity strengthens their resolve against oppression.
What are the human and economic costs of the conflict for the whole world?
- Human Costs: Thousands of civilians, including 600 children, have died. Over eight million people have left Ukraine, and 3.6 million are still displaced. Russia has taken more than 20,000 children, many of whom are still missing or in captivity.
- Economic Costs: Ukraine has lost over $400 billion, and it will need $500 billion to rebuild and $35 billion to clear landmines. The war has affected global supply chains and caused inflation worldwide.
How can Ukraine in seeking peace and rebuilding?
- Diplomatic Efforts: Ukraine continues to engage in diplomatic initiatives aimed at securing international support for its sovereignty and territorial integrity.
- President Zelenskyy emphasizes that neutrality is not an option countries must choose sides in this conflict.
- Reconstruction Plans: As rebuilding begins, Ukraine aims to restore its infrastructure while implementing reforms that demonstrate resilience and commitment to democratic values. This effort is supported by international partners who provide financial assistance1.
- Cultural Restoration: Protecting cultural heritage is a priority, with initiatives underway to restore damaged institutions and memorialize those lost during the conflict. This cultural revival is integral to national identity and unity moving forward.
What opportunity does India have from this conflict? (Way forward)
- Strengthening Diplomatic Influence: India can play a key role in diplomatic efforts by supporting Ukraine’s sovereignty and promoting peace talks, which enhances its global standing as a peacebuilder.
- Economic and Trade Opportunities: As Ukraine seeks reconstruction, India can explore investment and trade opportunities in rebuilding efforts, especially in sectors like infrastructure, agriculture, and technology.
- Cultural and Educational Collaboration: India can collaborate with Ukraine in preserving cultural heritage and restoring educational institutions, fostering cultural exchanges and strengthening bilateral ties.
Mains PYQ:
Q What is the significance of Indo-US defence deals over Indo-Russian defence deals? Discuss with reference to stability in the Indo-Pacific region. (UPSC IAS/2020)
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Note4Students
From UPSC perspective, the following things are important :
Mains level: Electric Vehicle policy;
Why in the News?
The Telangana government has decided to completely waive road tax and registration fees for people buying electric vehicles.
What are the key features of Telangana’s EV policy?
- 100% Road Tax and Registration Fee Exemption: Electric two-wheelers, four-wheelers, and commercial vehicles (such as taxis, autorickshaws, electric light goods carriers, and buses) will be exempt from road tax and registration fees for the entire lifetime of the vehicle.
- Exemption for Telangana State Road Transport Corporation (TSRTC): The exemption will apply to electric vehicles operated by TSRTC and buses owned by industries used for employee transport (not commercial purposes).
- Validity Period: The exemption will be valid for two years, up to December 31, 2026, regardless of the number of vehicles registered.
- Promotion of EV Awareness: The government is focused on spreading awareness about electric vehicle usage to reduce pollution levels and make Hyderabad pollution-free.
- Support for Charging Infrastructure: Manufacturers of electric vehicles are encouraged to take the initiative in establishing charging stations to ensure convenience for users.
How will the government support the EV push?
- The government will provide exemptions from road taxes and registration fees for various categories of electric vehicles to make them more affordable for consumers.
- A meeting of the concerned departments (Transport, Home, HMDA, etc.) will be convened to ensure effective coordination and implementation of the EV policy.
- Government representatives studied the policies of other states to come up with a policy tailored to Telangana’s needs, reflecting the best practices for EV adoption.
India’s New Electric Vehicle Policy 2024:
- Duty Reduction: A customs duty of 15% is now applicable on imported EVs priced at $35,000 or above, significantly lower than the previous rates of 70-100%. This reduced rate will last for five years.
- Import Limits and Investment Requirements: The policy allows for a maximum of 8,000 imported EVs per year, contingent on manufacturers investing at least ₹4,150 crore (approximately $500 million) in local production. There is no upper limit on investment, encouraging substantial financial commitments in the sector.
- Local Manufacturing Mandate: Companies must establish operational facilities within three years and achieve a minimum domestic value addition (DVA) of 25% by that time, increasing to 50% by the fifth year. This aims to enhance local manufacturing capabilities.
- Increased Import Allowance for Larger Investments: If a manufacturer invests over $800 million, they can import up to 40,000 EVs, still capped at 8,000 per year, with the option to carry over unused limits.
- Bank Guarantees: A bank guarantee is required, which will be returned only upon meeting the DVA target and investment criteria.
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Why special EV Policy is needed?
- Environmental Goals: The EV policy is part of an effort to reduce pollution levels in Telangana, especially in Hyderabad, to prevent the city from facing pollution issues similar to those in New Delhi.
- Lack of Implementation in the Past: Although the previous government introduced an EV policy for 2020-30, it was not implemented effectively. The new policy addresses this gap and actively promotes EV adoption.
- Growing Need for Awareness and Infrastructure: The policy also aims to spread awareness about EVs and address infrastructure challenges, such as the availability of charging stations, which are crucial to making electric vehicles a viable alternative.
- Encouraging Wider Adoption: The policy aims to increase the percentage of electric vehicles in the state (currently 5 out of every 100 vehicles are EVs) by offering financial incentives and creating an ecosystem that supports EV users.
Conclusion: Expanding and improving the availability of EV charging stations across the state is crucial to ensure the seamless adoption of electric vehicles, especially in urban areas and key highways.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: World Toilet Day, 2024
Why in the News?
- World Toilet Day, celebrated every year on November 19, is an official United Nations observance aimed at raising awareness of the global sanitation crisis and promoting action for safe toilets worldwide.
- 2024 Theme: “Sanitation for Peace” – highlights the role of sanitation in promoting peace, security, and resilience.
About World Toilet Day
- It is celebrated each year on November 19 to raise awareness about global sanitation issues.
- It became an UN-recognized day in 2013 to emphasize the importance of safe sanitation under SDG 6.
- It was first proposed by Jack Sim of the World Toilet Organization in 2001.
- Purpose: To address the health, dignity, and environmental challenges linked to inadequate sanitation.
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Significance and Global Collaborations
- Public Health: Prevents waterborne diseases; 1,000 child deaths daily linked to unsafe sanitation (WHO).
- UN Initiatives: UNICEF, WHO, and UN-Water work with countries to improve WASH (water, sanitation, hygiene) facilities.
- NGO Support: Organizations like World Toilet Organization and WaterAid implement sanitation projects and awareness.
- International Partnerships: Programs like Sanitation and Water for All (SWA) unify governments and NGOs for sanitation solutions.
India’s Policies and Successes
- Swachh Bharat Mission (SBM):
- SBM-Grameen: Over 11.73 crore household toilets built; 5.57 lakh villages ODF.
- SBM-Urban: 63.63 lakh household toilets constructed; 4,576 cities ODF.
- Jal Jeevan Mission: Aims to provide piped drinking water to rural households, supporting sanitation.
- Women’s Safety Campaigns: Programs like Hamara Shauchalay: Hamara Samman link sanitation to dignity, especially for women.
- Waste Management: SBM Phase II focuses on sustainable waste management and sanitation systems.
PYQ:
[2024] Consider the following statements regarding World Toilet Organization:
- It is one of the agencies of the United Nations.
- World Toilet Summit, World Toilet Day and World Toilet College are the initiatives of this organization, to inspire action to tackle the global sanitation crisis.
- The main focus of its function is to grant funds to the least developed countries and developing countries to achieve the end of open defecation.
Which of the statements given above is/are correct?
(a) 2 only
(b) 3 only
(c) 1 and 2
(d) 2 and 3 |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Guru Ghasidas-Tamor Pingla Tiger Reserve
Why in the News?
The Indian government has notified Guru Ghasidas-Tamor Pingla Tiger Reserve in Chhattisgarh as the country’s 56th Tiger Reserve, now recognized as the third-largest tiger reserve in India.
Largest Tiger Reserves in India:
- First: Nagarjunasagar-Srisailam Tiger Reserve, Andhra Pradesh
- Second: Manas Tiger Reserve, Assam
- Third: Guru Ghasidas-Tamor Pingla Tiger Reserve, Chhattisgarh
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About the Guru Ghasidas-Tamor Pingla Tiger Reserve (TR):
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Details |
| Location |
• Located across Manendragarh-Chirmiri-Bharatpur, Korea, Surajpur, and Balrampur districts of Chhattisgarh.
• Total area: 2,829.38 sq. km.
• Core area: 2,049.2 sq. km (Guru Ghasidas National Park + Tamor Pingla Wildlife Sanctuary).
• Buffer area: 780.15 sq. km. |
| Regional Significance |
• Contiguous with Sanjay Dubri Tiger Reserve in Madhya Pradesh forming a 4,500 sq. km landscape.
• Connected to Bandhavgarh Tiger Reserve (west) and Palamau Tiger Reserve (east). |
| Biodiversity |
• 753 species documented by Zoological Survey of India.
• 230 bird species.
• 55 mammal species, including several threatened species. |
| Landscape |
• Located within the Chota Nagpur Plateau and partly in the Baghelkhand Plateau.
• Features dense forests, streams, and rivers, providing a rich habitat for tigers and diverse fauna. |
PYQ:
[2020] Among the following Tiger Reserves, which one has the largest area under “Critical Tiger Habitat”?
(a) Corbett
(b) Ranthambore
(c) Nagarjunsagar-Srisailam
(d) Sunderbans |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Dead Sea, Salt Chimneys
Why in the News?
Researchers have identified unique salt chimneys on the Dead Sea floor.
Key facts about the Dead Sea:
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Details |
| Location |
• Located between Jordan and Israel, with the eastern shore in Jordan and the western shore in Israel.
• The southern half of the western shore belongs to Israel, and the northern half is in the West Bank.• Divided by Al-Lisan peninsula into two basins: the northern basin is deep (400 m), and the southern basin is shallow (< 3 m). |
| Geographical Features |
• 430.5 meters below sea level, the Earth’s lowest land-based feature.
• Length: 50 km, Width: 15 km at its widest point.
• Surrounded by the Judaea hills (west) and Transjordanian plateaus (east). |
| Salinity and Density |
• Salinity: 34.2%, almost ten times saltier than ordinary seawater, making it the fourth saltiest water body in the world.
• Density: 1.240 kg/L, which allows people to float easily. |
| Inlets and Outlets |
• Main inlet: Jordan River.
• No outlet, water loss occurs primarily through evaporation.
• High salinity and harsh climate result in no life except for algae and microorganisms. |
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About the Salt Chimneys
- Salt chimneys are tall, chimney-like structures made of crystallized salt, recently discovered on the Dead Sea floor.
- They are found by researchers from the Helmholtz Centre for Environmental Research (UFZ) during an underwater survey.
- These chimneys range from 1 to over 7m in height.
- Formation Process:
- Groundwater from surrounding aquifers flows through old salt deposits around the Dead Sea basin, dissolving halite (salt) and carrying it as brine.
- Despite being saline, the brine is less dense than the Dead Sea water due to its high salinity, causing it to rise as a plume from the lake bed.
- When this brine contacts the colder Dead Sea water, it rapidly crystallizes, forming chimney structures that can grow several centimeters in height each day.
Potential Role in Sinkhole Forecasting
- Thousands of sinkholes have appeared near the Dead Sea in recent decades; understanding chimney formation may aid in preventing future collapses in vulnerable areas.
- Researchers have linked the formation of salt chimneys to underground cavities, which are often the precursors to sinkholes.
- The location of these chimneys may help predict areas at high risk for sinkhole formation, offering a way to monitor and mitigate potential hazards.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Italy-India Joint Strategic Action Plan
Why in the News?
India and Italy signed an ambitious 5-year ‘joint strategic action plan 2025-2029’ that would include cooperation in space sector, critical technology, research, co-production of military equipment and widening the ambit of economic cooperation.
Key Focus Areas of the Joint Strategic Action Plan:
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Details |
| Political Dialogue |
• Regular high-level meetings and reciprocal visits.
• Annual bilateral consultations between foreign ministries to discuss mutual interests. |
| Economic Cooperation |
• Boosting trade, market access, and investments in sectors like transportation, agriculture, pharmaceuticals, and green technologies.
• Promoting industrial partnerships and mutual investments. |
| Connectivity |
• Collaborating on sustainable transport initiatives.
• Enhancing maritime and land infrastructure, participating in the India-Middle East-Europe Economic Corridor (IMEEC). |
| Science, Technology, IT, Innovation |
• Cooperation in emerging technologies like Artificial Intelligence (AI), telecommunications, and digital services.
• Innovation, research collaborations, and exchange programs for scientific growth. |
| Space Sector |
• Collaboration between the Italian Space Agency (ASI) and the Indian Space Research Organisation (ISRO) in Earth observation and lunar science.
• Facilitating mutual commercial space collaborations. |
| Energy Transition |
• Technology summits in renewable energy.
• Cooperation in green hydrogen, biofuels, and energy efficiency.
• Collaboration in global energy alliances like the International Solar Alliance (ISA) and Global Biofuels Alliance. |
| Defence Cooperation |
• Joint defence consultations and staff talks.
• Co-development of defence platforms and equipment.
• Negotiating a Defence Industrial Roadmap. |
| Security Cooperation |
• Capacity-building in cybersecurity and counter-terrorism.
• Regular exchanges and sector-specific talks in multilateral forums. |
Significance of the Plan:
- Time-Bound Initiatives: It outlines specific, time-bound initiatives to ensure measurable progress and accountability.
- Mutual Growth: By focusing on co-development and co-production, the plan aims to leverage the strengths of both nations for mutual economic and technological advancement.
- Strategic Alignment: The collaboration in areas like defence, energy transition, and space signifies a strategic alignment of interests, enhancing regional and global stability.
- Cultural and People-to-People Ties: Emphasizing cultural exchanges and academic collaborations strengthens the social fabric and mutual understanding between the two countries.
PYQ:
[2016] With reference to the ‘Trans-Pacific Partnership’, consider the following statements:
1. It is an agreement among all the Pacific Rim countries except China and Russia.
2. It is a strategic alliance for the purpose of maritime security only.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2 |
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