Note4Students
From UPSC perspective, the following things are important :
Prelims level: Panchamrita
Mains level: India's INDC
PM Modi has proposed a five-fold strategy called the ‘Panchamrita’ for India to play its part in helping the world get closer to 1.5 degrees Celsius on the first day of the global climate meeting in Glasgow.
What is Panchamrita?
- ‘Panchamrita’ is a traditional method of mixing five natural foods — milk, ghee, curd, honey and jaggery. These are used in Hindu and Jain worship rituals. It is also used as a technique in Ayurveda.
- The PM euphemistically termed his scheme as ‘Panchamrita’ meaning the ‘five ambrosia’.
- Under Panchamrita’, India will:
- Get its non-fossil energy capacity to 500 gigawatts by 2030
- Meet 50 per cent of its energy requirements till 2030 with renewable energy
- Reduce its projected carbon emission by one billion tonnes by 2030
- Reduce the carbon intensity of its economy by 45 per cent by 2030
- Achieve net zero by 2070
Key takeaways of PM’s speech
(a) Commitment for climate action
- India consists of 17 per cent of the world’s population but contribute only five per cent of emissions.
- Yet, it has left no stone unturned in doing our bit to fight climate change.
- At Paris, India was making promises not to the world but to itself and 1.3 billion Indians, PM said.
(b) Climate finance
- The 2015 Paris CoP where the Paris Agreement was signed was not a summit but a sentiment.
- The promises made till now on climate finance were useless.
- When we all are increasing our ambitions on climate action, the world’s ambition could not stay the same on climate finance as was agreed at the time of Paris.
(c) India’s track record
- India was fourth as far as installed renewable energy capacity was concerned.
- The Indian Railways has pledged to make itself net-zero by 2030. This will result in an annual 60 million tonnes reduction in emissions.
- India initiated the International Solar Alliance for solar energy.
- It has also set up the coalition for disaster resilient infrastructure for climate adaptation.
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From UPSC perspective, the following things are important :
Prelims level: BASIC Countries, Copenhagen Accord
Mains level: Not Much
The Union Environment Minister has delivered the statement on behalf of the BASIC group of countries at the UN Climate Change Conference underway at Glasgow.
Who are the BASIC Countries?
- The BASIC countries (also Basic countries or BASIC) are a bloc of four large newly industrialized countries – Brazil, South Africa, India and China.
- It was formed by an agreement on 28 November 2009.
- The four committed to act jointly at the Copenhagen climate summit, including a possible united walk-out if their common minimum position was not met by the developed nations.
- This emerging geopolitical alliance, initiated and led by China, then brokered the final Copenhagen Accord with the United States.
What is the Copenhagen Accord?
- The Copenhagen Accord is a document signed at COP 15 to the UNFCCC on 18 December 2009.
- The Accord states that global warming should be limited to below 2.0 °C (3.6 °F).
- It does not specify what the baseline is for these temperature targets (e.g., relative to pre-industrial or 1990 temperatures).
- In January 2010, the Accord was described merely as a political agreement and not legally binding, as is argued by the US and Europe.
- It is not legally binding and does not commit countries to agree to a binding successor to the Kyoto Protocol, whose round ended in 2012.
- According to the UNFCCC, these targets are relative to pre-industrial temperatures.
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From UPSC perspective, the following things are important :
Prelims level: Blue carbon, Sunderbans
Mains level: Carbon sequestration
India’s Sundarbans National Park is among five sites that have the highest blue carbon stocks globally, according to a new assessment.
Highlights of the study
- ‘World Heritage forests’ are now releasing more carbon than they are absorbing, primarily due to human activity and climate change, according to the assessment.
- UNESCO lists 50 sites across the globe for their unique marine values. These represent just one per cent of the global ocean area.
- But they comprise at least 15 per cent of global blue carbon assests.
Try this question from CSP 2021:
Q. What is blue carbon?
(a) Carbon captured by oceans and coastal ecosystems
(b) Carbon sequestered in forest biomass and agricultural soils
(c) Carbon contained in petroleum and natural gas
(d) Carbon present in atmosphere
Post your answers here.
Carbon capacity of Sundarbans
- The Sundarbans National Park has stores of 60 million tonnes of carbon (Mt C).
- The other four sites besides the Sundarbans National Park in India are:
- Bangladeshi portion of the Sundarbans (110 Mt C)
- Great Barrier Reef in Australia (502 Mt C)
- Everglades National Park in the US (400 Mt C) and
- Banc d’Arguin National Park in Mauritania (110 Mt C)
About Sundarbans
- Sundarbans is the largest delta and mangrove forest in the world.
- The Indian Sunderbans, which covers 4,200 sq km, comprises of the Sunderban Tiger Reserve of 2,585 sq km is home to about 96 Royal Bengal Tigers (2020) is also a world heritage site and a Ramsar Site.
- The Indian Sunderbans is bound on the west by river Muriganga and on the east by rivers Harinbhahga and Raimangal.
- Other major rivers flowing through this eco-system are Saptamukhi, Thakuran, Matla and Goasaba.
Worrying scenario
- The researchers found that 10 of 257 forests emitted more carbon than they captured between 2001 and 2020.
- The reasons for included clearance of land for agriculture, the increasing scale and severity of wildfires due to drought as well as extreme weather phenomena.
- The 10 sites are:
- Tropical Rainforest Heritage of Sumatra (Indonesia)
- Río Plátano Biosphere Reserve (Honduras)
- Yosemite National Park (US)
- Waterton Glacier International Peace Park (Canada, US)
- Barberton Makhonjwa Mountains (South Africa)
- Kinabalu Park (Malaysia)
- Uvs Nuur Basin (Russian Federation, Mongolia)
- Grand Canyon National Park (US)
- Greater Blue Mountains Area (Australia)
- Morne Trois Pitons National Park (Dominica)
(Try mapping these sites)
Back2Basics: Types of Carbon
- Brown Carbon: It is brown smoke released by the combustion of organic matter.
- Black Carbon: It is also a greenhouse gas and causes more pollution than Brown Carbon. The particles leftover from incomplete combustion of fossil fuels (soot and dust). It has a greater effect on radiation transmission.
- Green Carbon: Carbon incorporated into plant biomass and the soils below. Green carbon is carbon removed by photosynthesis and stored in the plants and soil of natural ecosystems.
- Blue Carbon: Blue Carbon refers to coastal, aquatic and marine carbon sinks held by the indicative vegetation, marine organism and sediments.
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From UPSC perspective, the following things are important :
Prelims level: G7
Mains level: Digital Trade Principles
The Group of Seven wealthy nations agreed on a joint set of principles to govern cross-border data use and digital trade.
What are the Digital Trade Principles?
- Open digital markets: Digital and telecommunications markets should be competitive, transparent, fair, and accessible to international trade and investment.
- Cross-border data flows: To harness the opportunities of the digital economy and support the trade of goods and services, data should be able to flow freely across borders with trust.
- Safeguards for workers, consumers, and businesses: Labour protections must be in place for workers who are directly engaged in or support digital trade, providing decent conditions of work.
- Digital trading systems: To cut red tape and enable more businesses to trade, governments and industries should drive forward the digitization of trade-related documents.
- Fair and inclusive global governance: Common rules for digital trade should be agreed and upheld at the World Trade Organization.
About Group of Seven
- The G-7 or ‘Group of Seven’ includes Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.
- It is an intergovernmental organization that was formed in 1975 by the top economies of the time as an informal forum to discuss pressing world issues.
- Initially, it was formed as an effort by the US and its allies to discuss economic issues.
- The G-7 forum now discusses several challenges such as oil prices and many pressing issues such as financial crises, terrorism, arms control, and drug trafficking.
- It does not have a formal constitution or a fixed headquarters. The decisions taken by leaders during annual summits are non-binding.
- Canada joined the group in 1976, and the European Union began attending in 1977.
Evolution of the G-7
- When it started in 1975—with six members, Canada joining a year later—it represented about 70% of the world economy.
- And it was a cosy club for tackling issues such as the response to oil shocks.
- Now it accounts for about 40% of global gdp.
- Since the global financial crisis of 2007-09 it has sometimes been overshadowed by the broader g20.
- The G-7 became the G-8 in 1997 when Russia was invited to join.
- In 2014, Russia was debarred after it took over Crimea.
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From UPSC perspective, the following things are important :
Prelims level: Global Agricultural Productivity Report, 2021
Mains level: Agricultural Productivity
Global agricultural productivity (GAP) is not growing as fast as the demand for food, amid the impact of climate change, according to a new report.
GAP Report
- The GAP Report is released by Virginia Tech’s College of Agriculture and Life Sciences.
- It urges the acceleration of productivity growth from smallholders to large-scale farmers to meet consumers’ needs and address current and future threats to human and environmental well-being.
Key indicator: Total factor productivity (TFP)
- In agriculture, productivity is measured as Total Factor Productivity or TFP.
- An increase in TFP growth indicates that more crops, livestock, and aquaculture products were produced with the same amount (or less) land, labor, fertilizer, machinery, feed, and livestock.
- TFP grows when producers increase output using improved technologies and practices, such as advanced seed varieties, precision mechanization, efficient nutrient and water management techniques, and improved animal care practices.
- Using agricultural inputs efficiently to generate more output reduces agriculture’s environmental impact and lowers costs for producers and consumers.
Highlights of the report
- Total factor productivity (TFP) is growing at an annual rate of 1.36 per cent (2020-2019).
- This is below the annual target of 1.73 per cent growth to sustainably meet the needs of consumers for food and bioenergy in 2050.
- Climate change has already reduced productivity growth globally by 21 per cent since 1961, the report said.
- In the drier regions of Africa and Latin America, climate change has slowed productivity growth by as much as 34 per cent.
- The report noted that middle-income countries including India, China, Brazil and erstwhile Soviet republics continued to have strong TFP growth rates.
Agricultural productivity in India
- India has seen strong TFP and output growth this century.
- The most recent data shows an average annual TFP growth rate of 2.81 per cent and output growth of 3.17 per cent (2010–2019).
Key recommendations
- The report urged accelerating investments in agricultural R&D to increase and preserve productivity gains, especially for small farmers.
- It identified six strategies and policies that would create sustainable agricultural growth at all scales of production:
- Invest in agricultural research and development
- Embrace science-and-information-based technologies
- Improve infrastructure for transportation, information and finance
- Cultivate partnerships for sustainable agriculture, economic growth and improved nutrition
- Expand and improve local, regional and global trade
- Reduce post-harvest loss and food waste
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From UPSC perspective, the following things are important :
Prelims level: FATF
Mains level: Globar terror financing
The Financial Action Task Force (FATF) kept Pakistan on the grey list yet again since 2018. The FATF also announced the ‘greylisting’ of Jordan, Mali and Turkey.
What is the FATF?
- FATF is an intergovernmental organization founded in 1989 on the initiative of the G7 to develop policies to combat money laundering.
- The FATF Secretariat is housed at the OECD headquarters in Paris.
- It holds three Plenary meetings in the course of each of its 12-month rotating presidencies.
- As of 2019, FATF consisted of 37 member jurisdictions.
India and FATF
- India became an Observer at FATF in 2006. Since then, it had been working towards full-fledged membership.
- On June 25, 2010, India was taken in as the 34th country member of FATF.
- The EAG (Eurasian Group) is a regional body comprising nine countries: India, Russia, China, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan and Belarus.
What is the role of FATF?
- Watchdog on terror financing: The rise of the global economy and international trade has given rise to financial crimes such as money laundering.
- Recommendation against financial crimes: The FATF makes recommendations for combating financial crime, reviews members’ policies and procedures, and seeks to increase acceptance of anti-money laundering regulations across the globe.
What is the Black List and the Grey List?
- Black List: The blacklist, now called the “Call for action” was the common shorthand description for the FATF list of “Non-Cooperative Countries or Territories” (NCCTs).
- Grey List: Countries that are considered safe haven for supporting terror funding and money laundering are put in the FATF grey list. This inclusion serves as a warning to the country that it may enter the blacklist.
Consequences of being in the FATF grey list:
- Economic sanctions from IMF, World Bank, ADB
- Problem in getting loans from IMF, World Bank, ADB and other countries
- Trade sanctions: Reduction in international trade
- International boycott
Pakistan and FATF
- Pakistan, which continues to remain on the “grey list” of FATF, had earlier been given the deadline till June to ensure compliance with the 27-point action plan against terror funding networks.
- It has been under the FATF’s scanner since June 2018, when it was put on the Grey List for terror financing and money laundering risks.
- FATF and its partners such as the Asia Pacific Group (APG) are reviewing Pakistan’s processes, systems, and weaknesses on the basis of a standard matrix for anti-money laundering (AML) and combating the financing of terrorism (CFT) regime.
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From UPSC perspective, the following things are important :
Prelims level: World Economic Outlook (WEO), IMF
Mains level: Impact of COVID on employment and economic growth
The International Monetary Fund (IMF) has unveiled its 2nd World Economic Outlook (WEO) Report.
About WEO Report
- The WEO is a report by the IMF that analyzes key parts of the IMF’s surveillance of economic developments and policies in its member countries.
- It also projects developments in the global financial markets and economic systems.
- The report comes out twice every year — April and October.
- It is based on a wide set of assumptions about a host of parameters — such as the international price of crude oil — and set the benchmark for all economies to compare one another with.
Key takeaways from the October 2021 WEO
- The central message was that the global economic recovery momentum had weakened due to the pandemic-induced supply disruptions.
- It is the increasing inequality among nations that IMF was most concerned about.
- The dangerous divergence in economic prospects across countries remains a major concern.
Reasons for the slowdown
There are two key reasons:
- Large disparities in vaccine access
- Differences in policy support
What about Employment?
Ans. There is a lag.
- Employment around the world remains below its pre-pandemic levels.
- This reflects a mix of negative output gaps, worker fears of on-the-job infection in contact-intensive occupations, childcare constraints, labour demand changes due to automation etc.
- The main concern is the gap between recovery in output and employment which is likely to be larger in emerging markets and developing economies than in advanced economies.
- Further, young and low-skilled workers are likely to be worse off than prime-age and high-skilled workers, respectively.
Implications for India
Ans. Reduce India’s growth momentum
- IMF has suggested that India’s economic recovery is gaining ground.
- Some sectors such as the IT-services sectors have been practically unaffected by Covid, while the e-commerce industry is doing brilliantly.
- However, the recovery in unemployment is lagging the recovery in output (or GDP).
- This matters immensely for India as it reflects jobless growth.
- India was already facing a deep employment crisis before the Covid crisis, and it became much worse after it.
- Lack of adequate employment levels would again drag down overall demand and affect the growth momentum.
Threats to growth momentum
- Usual unemployment: Even before the pandemic, India already had a massive unemployment crisis.
- Sector-wise recovery: India is witnessing a K-shaped recovery. That means different sectors are recovering at significantly different rates.
- Unorganized sector: A weak recovery for the informal/unorganized sectors implies a drag on the economy’s ability to create new jobs or revive old ones.
- Contact-based services: Such services which can create many more jobs, are not seeing a similar bounce-back.
How informal is India’s economy?
- A NSO report titled ‘Measuring Informal Economy in India’ gives a detailed account of informal Indian economy.
- It shows the share of different sectors of the economy in the overall Gross Value Added and the share of the unorganised sector therein.
- The share of informal/unorganised sector GVA is more than 50% at the all-India level, and is even higher in certain sectors.
- It creates a lot of low-skilled jobs such as construction and trade, repair, accommodation, and food services.
This is why India is more vulnerable.
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From UPSC perspective, the following things are important :
Prelims level: North Atlantic Treaty Organization (NATO)
Mains level: Russia Vs. Nato
Russia has decided that it would halt the activities of its diplomatic mission to NATO after it expelled eight Russian diplomats in a row over spying.
Why such move?
- NATO had set up a prohibitive regime for Russian diplomats in Brussels by banning them from its headquarters building.
- Relations between Moscow and the West have been strained for years, but the immediate impetus for the Russian move was a spy scandal.
- Military tensions have also escalated in recent years, including last spring when Russian troops massed along Ukraine’s border (probably for invasion).
Significance of the move
- The decision will end a post-Cold War experiment, never very successful, in building trust between Russia and the Western alliance.
- It was established decades ago to contain the Soviet Union, which officials in Moscow accused of later encroaching on former Soviet territory.
About North Atlantic Treaty Organization (NATO)
- NATO is a military alliance established by the North Atlantic Treaty (also called the Washington Treaty) of April 4, 1949.
- It sought to create a counterweight to Soviet armies stationed in Central and Eastern Europe after World War II.
- Its original members were Belgium, Canada, Denmark, France, Iceland, Italy, Luxembourg, the Netherlands, Norway, Portugal, the United Kingdom, and the United States.
- NATO has spread a web of partners, namely Egypt, Israel, Sweden, Austria, Switzerland and Finland.
Why was it founded?
Ans. Communist sweep in Europe post-WWII and rise of Soviet dominance
- After World War II in 1945, Western Europe was economically exhausted and militarily weak, and newly powerful communist parties had arisen in France and Italy.
- By contrast, the Soviet Union had emerged from the war with its armies dominating all the states of central and Eastern Europe.
- By 1948 communists under Moscow’s sponsorship had consolidated their control of the governments of those countries and suppressed all non-communist political activity.
- What became known as the Iron Curtain, a term popularized by Winston Churchill, had descended over central and Eastern Europe.
Ideology of NATO
- NATO ensures that the security of its European member countries is inseparably linked to that of its North American member countries.
- It commits the Allies to democracy, individual liberty and the rule of law, as well as to the peaceful resolution of disputes.
- It also provides a unique forum for dialogue and cooperation across the Atlantic.
The Article 5
- The heart of NATO is expressed in Article 5, in which the signatory members agree that an armed attack against one or more of them in Europe or North America shall be considered an attack against them all.
Why in news now?
- The relationship between NATO and Russia is at its lowest point since the end of the Cold War.
- The NATO (rather US) sees their aggressive actions, not least against Ukraine, but also the significant military buildup and violations of important arms control agreements.
- NATO suspended practical cooperation with Russia in 2014 after it annexed Ukraine’s Crimean Peninsula.
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From UPSC perspective, the following things are important :
Prelims level: CoP, UNFCCC
Mains level: Paris Agreement
The UK will host the COP 26 UN Climate Change Conference from October 31 to November 12.
Conference of Parties (CoP): A Backgrounder
- The CoP comes under the United Nations Climate Change Framework Convention (UNFCCC) which was formed in 1994.
- The UNFCCC was established to work towards “stabilisation 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
- The UNFCCC has 198 parties including India, China and the USA. COP members have been meeting every year since 1995.
COP1 to COP25: Key takeaways
COP1: The first conference was held in 1995 in Berlin.
COP3: It was held in Kyoto, Japan, in 1997, the famous Kyoto Protocol (w.e.f. 2005) was adopted. It commits the member states to pursue limitation or reduction of greenhouse gas emissions.
COP8: India hosted the eighth COP in 2002 in New Delhi. It laid out several measures including, ‘strengthening of technology transfer… in all relevant sectors, including energy, transport and R&D, and the strengthening of institutions for sustainable development.
COP21: it is one of the most important that took place in 2015, in Paris, France. Here countries agreed to work together to ‘limit global warming to well below 2, preferably at 1.5 degrees Celsius, compared to pre-industrial levels.’
Significance of COP26
- The event will see leaders from more than 190 countries, thousands of negotiators, researchers and citizens coming together to strengthen a global response to the threat of climate change.
- It is a pivotal movement for the world to come together and accelerate the climate action plan after the COVID pandemic.
COP26 goals
According to the UNFCCC, COP26 will work towards four goals:
- Secure global net-zero by mid-century and keep 1.5 degrees within reach
- The UNFCCC recommends that countries ‘accelerate the phase-out of coal, curtail deforestation, speed up the switch to electric vehicles and encourage investment in renewables’ to meet this goal.
- Adapt to protect communities and natural habitats
- Countries will work together to ‘protect and restore ecosystems and build defences, warning systems and resilient infrastructure and agriculture to avoid loss of homes, livelihoods and even lives.’
- Mobilise finance
- To deliver on first two goals, developed countries must make good on their promise to mobilise at least $100bn in climate finance per year by 2020.
- Work together to deliver
- Another important task at the COP26 is to ‘finalise the Paris Rulebook’. Leaders will work together to frame a list of detailed rules that will help fulfil the Paris Agreement.
What India could do to reach its targets?
- Update NDCs: It is time for India to update its Nationally Determined Contributions or NDCs. (NDCs detail the various efforts taken by each country to reduce the national emissions)
- Effective planning: Sector by sector plans are needed to bring about development. We need to decarbonise the electricity, transport sector and start looking at carbon per passenger mile.
- Energy transition: Aggressively figure out how to transition our coal sector
- Robust legal framework: India also needs to ramp up the legal and institutional framework of climate change.
Try answering this PYQ:
With reference to the Agreement at the UNFCCC Meeting in Paris in 2015, which of the following statements is/are correct?
- The Agreement was signed by all the member countries of the UN and it will go into effect in 2017.
- The Agreement aims to limit the greenhouse gas emissions so that the rise in average global temperature by the end of this century does not exceed 2 degree Centigrade or even 5 degree Centigrade above pre-industrial levels.
- Developed countries acknowledged their historical responsibility in global warming and committed to donate dollar 1000 billion a year from 2020 to help developing countries to cope with climate change.
Select the correct answer using the code given below:
(a) 1 and 3 only
(b) 2 only
(c) 2 and 3 only
(d) 1, 2 and 3
Post your answers here.
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From UPSC perspective, the following things are important :
Prelims level: Global Hunger Index
Mains level: Food and nutrition security of India
The Global Hunger Index 2021 has ranked India at 101 positions out of a total 116 countries.
Note the parameters over which the GHI is based and their weightage composition.
Global Hunger Index (GHI)
- The Global Hunger Index is a peer-reviewed annual report, jointly published by Concern Worldwide and Welthungerhilfe.
- It determines hunger on a 100-point scale, where 0 is the best possible score (no hunger) and 100 is the worst.
- It is designed to comprehensively measure and track hunger at the global, regional, and country levels.
- The aim of the GHI is to trigger action to reduce hunger around the world.
For each country in the list, the GHI looks at four indicators:
- Undernourishment (which reflects inadequate food availability): calculated by the share of the population that is undernourished (that is, whose caloric intake is insufficient)
- Child Wasting (which reflects acute undernutrition): calculated by the share of children under the age of five who are wasted (that is, those who have low weight for their height)
- Child Stunting (which reflects chronic undernutrition): calculated by the share of children under the age of five who are stunted (that is, those who have low height for their age)
- Child Mortality (which reflects both inadequate nutrition and unhealthy environment): calculated by the mortality rate of children under the age of five
India’s (poor) performance
- India is among the 31 countries where hunger has been identified as serious.
- Only 15 countries fare worse than India.
- Some of these include Afghanistan (103), Nigeria (103), Congo (105), Mozambique (106), Sierra Leone (106), Timor-Leste (108), Haiti (109), Liberia (110), Madagascar (111) and Somalia (116).
- India was also behind most of the neighbouring countries.
- Pakistan was placed at 92 rank, Nepal at 76 and Bangladesh also at 76.
Reasons for such poor performance
- Poor maternal health: Mothers are too young, too short, too thin and too undernourished themselves, before they get pregnant, during pregnancy, and then after giving birth, during breast-feeding.
- Poor sanitation: Poor sanitation, leading to diarrhoea, is another major cause of child wasting and stunting.
- Food insecurity: Low dietary diversity in India is also a key factor in child malnutrition.
- Poverty: Almost 50 million households in India are dependent on these small and marginal holdings.
- Livelihood loss: The rural livelihoods loss after COVID and lack of income opportunities other than the farm sector have contributed heavily to the growing joblessness in rural areas.
Issues over credibility of GHI
- India has ranked among many African countries while it is among the top 10 food-producing countries in the world.
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From UPSC perspective, the following things are important :
Prelims level: Kunming Declaration, CBD
Mains level: Not Much
The Kunming Declaration was adopted by over 100 countries at the first part of the ongoing virtual 15th meeting of the Conference of the Parties to the United Nations Convention on Biological Diversity.
Kunming Declaration
- It calls upon the parties to “mainstream” biodiversity protection in decision-making and recognise the importance of conservation in protecting human health.
- The theme of the declaration is Ecological Civilization: Building a Shared Future for All Life on Earth.
- By adopting this, the nations have committed themselves to support the development, adoption and implementation of an effective post-2020 implementation plan for the Cartagena Protocol on biosafety.
- Signatory nations will ensure that the post-pandemic recovery policies, programs and plans contribute to the conservation and sustainable use of biodiversity.
About Convention on Biological Diversity (CBD)
- The CBD (wef 1993) known informally as the Biodiversity Convention, is a multilateral treaty.
- The convention has three main goals:
- the conservation of biodiversity
- the sustainable use of its components
- the fair and equitable sharing of benefits arising from genetic resources
- Its objective is to develop national strategies for the conservation and sustainable use of biological diversity, and it is often seen as the key document regarding sustainable development.
- It has two supplementary agreements, the Cartagena Protocol and Nagoya Protocol.
(1) Cartagena Protocol
- It is an international treaty governing the movements of living modified organisms (LMOs) resulting from modern biotechnology from one country to another.
(2) Nagoya Protocol
- It deals with Access to Genetic Resources and the Fair and Equitable Sharing of Benefits Arising from their Utilization (ABS).
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From UPSC perspective, the following things are important :
Prelims level: ISA, OSOWOG
Mains level: Solar Energy
The Union Minister for Power and New and Renewable Energy (MNRE) has addressed the Ministerial session of the Green Grids Initiative-One Sun One World One Grid (OSOWOG) Northwest Europe Cooperative Event.
One Sun, One World, One Grid
- The mega plan of OSOWOG calls for trans-national electricity grid supplying solar power across the globe.
- It will connect 140 countries through a common grid that will be used to transfer solar power.
- The idea was first floated by PM Modi in 2018 during the first assembly of the International Solar Alliance (ISA).
- The vision behind the OSOWOG mantra is “the Sun never sets” and is a constant at some geographical location, globally, at any given point of time.
With India at the fulcrum, the solar spectrum can easily be divided into two broad zones viz:
- Far East: It would include countries like Myanmar, Vietnam, Thailand, Lao, Cambodia and
- Far West: It would cover the Middle East and the Africa Region
Implementation phases of the plan
The plan is divided into three phases:
- Phase 1: It will connect the Indian grid with the Middle East, South Asia and South-East Asian grids to share solar and other renewable energy resources
- Phase 2: It will connect the first phase nations with the African pool of renewable sources
- Phase 3: It will be the concluding step of global interconnection
How novel is the idea?
(1) Scale of the program
- Not limited by national boundaries, it can tackle global challenges linked to energy.
- It will tackle access for underserved people and communities the world over.
- It will enable 3 billion people to access clean drinking water (via solar pumps), give 2 billion women access to clean cooking and bring light to the homes of 750 million people.
(2) Pivotal moment in India’s energy history
- Going back even further, almost a decade ago, the price of solar energy (then INR 15 a unit) had raised question marks about its commercial feasibility.
- Today OSOWOG envisions dispatching surplus electricity at near-zero cost as India produces the cheapest solar-powered electricity anywhere in the world.
(3) Sustainability
- OSOWOG directly tackles two key problems that are emerging as energy systems try to deliver both energy sustainability and access to underserved populations.
- Countries like Singapore or Bangladesh simply may not have enough empty land to generate solar energy.
- Many nations’ policies also prioritise food security (i.e., devoting land to farming) over solar energy. These countries can still benefit from the solar energy dispatched to them via OSOWOG.
(4) India extending leadership
- Having international associations is not a new trend for the energy sector which already has a strong geopolitical organisation such as OPEC.
- Several countries including China have initiated infrastructure projects in other countries, which is seen as a sign of asserting supremacy by several policy experts.
- While India is a partner nation with most trade associations, with ISA and OSOWOG, it is planning to take a leadership position.
Significance of OSOWOG
- Successful ambitious project: It is obviously a very grand and ambitious project with a looming success.
- Pathbreaking idea: It is also clear that a new energy sector paradigm is needed as we are facing a huge inflection point in electricity generation and consumption.
- Green benefits: Potential benefits include widespread scale up in energy access, abatement in carbon emissions, lower cost and improved livelihoods.
- Energy alternative: With battery and storage technology becoming cheaper, electricity consumption at source end is a more feasible idea for solar power.
Limitations of OSOWOG
- Low financial benefits: This may sound a geopolitically a clever strategy. However, it is to be seen if this makes sense, technology-wise and in terms of financial benefits.
- Cost-sharing challenge: The mechanism of cost-sharing will be challenging, given the varied priorities of participating countries depending on their socio-economic orders.
- Pace of progress: The OSOWOG will turn out to be an expensive, complex and very slow progress project.
- Geopolitical issue: Any disruption caused due to any bilateral/multilateral issues can potentially affect critical services in multiple continents and countries.
- Grid parameters: There is a difference in voltage, frequency and specifications of the grid in most regions. Maintaining grid stability with just renewable generation would be technically difficult.
Way forward
- While India has taken baby steps with ISA, a major investment drive is still missing. This is planned to be achieved through OSOWOG.
- India will need a strong coalition of international partners to realise this vision.
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Back2Basics: International Solar Alliance
- Officially announced during UN Climate Change Conference in Paris in 2015, the ISA is a partnership of solar-resource rich countries.
- Currently, there are 121 countries that have agreed to be members for ISA.
- Most of these are countries with large participation from Africa, South-east Asia and Europe.
- Pakistan and China are not a part of ISA.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: RE Country Attractiveness Index (RECAI)
Mains level: Renewable Energy in India
India has retained the third rank in the Renewable Energy Country Attractiveness Index released by consultancy firm EY.
RE Country Attractiveness Index (RECAI)
- The RECAI ranks the world’s top 40 markets on the attractiveness of their renewable energy investment and deployment opportunities.
- The rankings reflect assessments of market attractiveness and global market trends.
India’s performance
- India remained at the third position since three consecutive years.
- India’s thriving renewable energy market conditions, inclusive policy decisions, investment and technology improvements focusing on self-reliant supply chains have pushed the transition.
- RECAI highlights that corporate power purchase agreements (PPAs) are emerging as a key driver of clean energy growth.
- A new PPA Index – introduced in this edition of RECAI – focuses on the attractiveness of renewable power procurement and ranks the growth potential of a nation’s corporate PPA market.
- India is ranked sixth among the top 30 PPA markets.
Global scenario
- The US, mainland China and India continue to retain the top three rankings and Indonesia is a new entrant to the RECAI.
- The top-performing markets have held their ground in this latest issue – with no movement into or out of the top eight.
- France (fourth position, up by one) and the UK (fifth position, down by one), while Germany (sixth position, up by one) has edged back ahead of Australia (seventh position, down by one).
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From UPSC perspective, the following things are important :
Prelims level: IEA
Mains level: Read the attached story
International Energy Agency (IEA) has invited India, the world’s third-largest energy consumer, to become its full-time member.
International Energy Agency (IEA)
- The IEA is an autonomous intergovernmental organization established in the framework of the Organisation for Economic Co-operation and Development (OECD) in 1974 in the wake of the 1973 oil crisis.
- Based in Paris, IEA was initially dedicated to responding to physical disruptions in the supply of oil, as well as serving as an information source on statistics about the international oil market.
- In the decades since, its role has expanded to cover the entire global energy system, encompassing traditional energy sources such as oil, gas, and coal as well as cleaner and faster growing ones such as solar PV, wind power and biofuels.
- It is best known for the publication of its annual World Energy Outlook.
Role and responsibility
- The Agency’s mandate has broadened to focus on providing analysis, data, policy recommendations and solutions to help countries ensure secure, affordable and sustainable energy for all.
- In particular, it has focused on supporting global efforts to accelerate the clean energy transition and mitigate climate change.
- The IEA has a broad role in promoting rational energy policies and multinational energy technology co-operation with a view to reaching net zero emissions.
India and IEA
- India, in March 2017, became an associate member of the Paris-based body which advises industrialised nations on energy policies.
- Today the IEA acts as a policy adviser to its member states, as well as major emerging economies such as Brazil, China, India, Indonesia and South Africa to support energy security and advance the clean energy transition worldwide.
Significance of the invitation
- This proposal if accepted will require New Delhi to raise strategic oil reserves to 90 days requirement.
- India is becoming increasingly influential in global energy trends.
Try this MCQ:
Q.The Global Energy Transition Index recently seen in news is released by:
a) International Energy Agency (IEA)
b) World Economic Forum (WEF)
c) International Renewable Energy Agency (IRENA)
d) International Solar Alliance
Post your answers here.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Trends in global trade post covid
Mains level: Slowdown in China and opportunities for India
The World Trade Organization (WTO) has upgraded its world merchandise trade growth outlook to nearly 11 percent for this year, higher than 8% estimated in March.
About WTO
- The World Trade Organization (WTO) is an intergovernmental organization that regulates and facilitates international trade between nations.
- Governments use the organization to establish, revise, and enforce the rules that govern international trade.
- It officially commenced operations on 1 January 1995, pursuant to the 1994 Marrakesh Agreement, thus replacing the General Agreement on Tariffs and Trade (GATT) that had been established in 1948.
- The WTO is the world’s largest international economic organization, with 164 member states representing over 96% of global trade and global GDP.
- The WTO facilitates trade in goods, services and intellectual property among participating countries.
- It prohibits discrimination between trading partners, but provides exceptions for environmental protection, national security, and other important goals.
Report on Global trade
- According to a WTO, global goods trade is expected to grow by 10.8 per cent compared to the forecast of 8 per cent in March, but with varied recovery, depending on the region.
- The report said export volume growth in 2021 will be 8.7 per cent in North America, 7.2 per cent in South America, 9.7 per cent in Europe, 7 per cent in Africa, 5 per cent in West Asia and the highest for Asia at 14.4 per cent.
- On the other hand, imports are expected to grow at a faster pace as compared to exports. Inbound shipments into North America are set to grow by 12.6 per cent.
- It will be 19.9 per cent in South America, 9.1 per cent in Europe, 13.1 per cent in CIS, 11.3 per cent in Africa, 9.3 per cent in West Asia and 10.7 per cent in Asia.
Key highlights for India
- Exports from India have been rising consistently over the last few quarters, after plummeting for a few months as the outbreak of Covid-19 disrupted global trade.
- India’s exports to its top trading partners such as the US, European Union, nations in West Asia, among others, are expected to rise.
- Exports data during the first six months of the current fiscal year is emblematic of the fact that external demand has been robust.
- Besides, supply-side disruptions can also be exacerbated by the rapid and unexpectedly strong recovery of demand in advanced and many emerging economies.
Competing with China
- Experts said with rising global demand, India should be able to compete in various segments vis-a-vis China.
- Currently, China is facing supply-side as well as demand-side issues owing to several internal challenges (energy, debt crisis).
- Therefore, India is in a good position to increase its exports, and can become a substitute for China across various product categories or sectors.
- India can take advantage of the increasing global demand, which can ultimately translate into demand for Indian exports.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Global Minimum Tax, BEPS
Mains level: Global Minimum Tax Debate
A global deal to ensure big companies pay a minimum tax rate of 15% and make it harder for them to avoid taxation has been agreed by 136 countries.
What is the news?
- The OECD said four countries – Kenya, Nigeria, Pakistan and Sri Lanka – had not yet joined the agreement.
- However, the countries behind the accord together accounted for over 90% of the global economy.
Why a global minimum tax?
- With budgets strained after the COVID-19 crisis, many governments want more than ever to discourage multinationals from shifting profits – and tax revenues – to low-tax countries.
- Increasingly, income from intangible sources such as drug patents, software and royalties on intellectual property has migrated to these jurisdictions.
- This has allowed companies to avoid paying higher taxes in their traditional home countries.
- The minimum tax and other provisions aim to put an end to decades of tax competition between governments to attract foreign investment.
How would a deal work?
- The global minimum tax rate would apply to overseas profits of multinational firms with 750 million euros ($868 million) in sales globally.
- Govts could still set whatever local corporate tax rate they want.
- However, buif companies pay lower rates in a particular country, their home governments could “top up” their taxes to the 15% minimum, eliminating the advantage of shifting profits.
- A second track of the overhaul would allow countries where revenues are earned to tax 25% of the largest multinationals’ so-called excess profit – defined as profit in excess of 10% of revenue.
What happens next?
- The next step is for finance ministers from the Group of 20 economic powers to formally endorse the deal, paving the way for adoption by G20 leaders at an end October summit.
- Nonetheless, questions remain about the US position which hangs in part on a domestic tax reform the Biden administration wants to push through the US Congress.
- The agreement calls for countries to bring it into law in 2022 so that it can take effect by 2023, an extremely tight timeframe given that previous international tax deals took years to implement.
- Countries that have in recent years created national digital services taxes will have to repeal them.
What will be the economic impact?
- The OECD, which has steered the negotiations, estimates the minimum tax will generate $150 billion in additional global tax revenues annually.
- Taxing rights on more than $125 billion of profit will be additionally shifted to the countries were they are earned from the low tax countries where they are currently booked.
- Economists expect that the deal will encourage multinationals to repatriate capital to their country of headquarters, giving a boost to those economies.
- However, various deductions and exceptions baked into the deal are at the same time designed to limit the impact on low tax countries like Ireland, where many US groups base their European operations.
Back2Basics: Base Erosion and Profit Shifting (BEPS)
- BEPS refers to corporate tax planning strategies used by multinationals to “shift” profits from higher-tax jurisdictions to lower-tax jurisdictions.
- It thus “erodes” the “tax base” of the higher-tax jurisdictions.
- Corporate tax havens offer BEPS tools to “shift” profits to the haven, and additional BEPS tools to avoid paying taxes within the haven.
- It is alleged that BEPS is associated mostly with American technology and life science multinationals.
Try this:
Q.3) What are the factors that led to the demand of global minimum corporate tax? What will be its implications for India? (10 Marks)
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Free Trade Agreement
Mains level: India-ASEAN Relations
The Commerce and Industry Minister has called for a renegotiation of the India-ASEAN free trade agreement (FTA).
Why such move?
- The MCI aims to prevent its misuse by ‘third parties’ and remove trade restrictions as well as non-tariff barriers that he said had hurt Indian exports disproportionately since the pact was operationalized in 2010.
- The focus needed to be on new rules to eliminate misuse ‘by third parties outside ASEAN’, the minister said, hinting at China.
- India had to deal with several restrictive barriers on exports in the ASEAN region, particularly in the agriculture and auto sectors.
About ASEAN
- Members:
- Officially the Association of Southeast Asian Nations, ASEAN is an economic union comprising 10 member states in Southeast Asia.
- It promotes intergovernmental cooperation and facilitates economic, political, security, military, educational, and sociocultural integration between its members and other countries in Asia.
India-ASEAN Free Trade Agreement
- The initial framework agreement for ASEAN–India Free Trade Area (AIFTA) was signed on 8 October 2003 in Bali, Indonesia.
- The FTA came into effect on 1 January 2010.
- The FTA had emerged from a mutual interest of both parties to expand their economic ties in the Asia-Pacific region.
Background of the AIFTA
- India’s Look East policy was reciprocated by similar interests of many ASEAN countries to expand their interactions westward.
- After India became a sectoral dialogue partner of ASEAN in 1992, India saw its trade with ASEAN increase relative to its trade with the rest of the world.
- Between 1993 and 2003, ASEAN-India bilateral trade grew at an annual rate of 11.2%, from US$2.9 billion in 1993 to US$12.1 billion in 2003.
- Total Indian FDI into ASEAN from 2000 to 2008 was US$1.3 billion.
Acknowledging this trend and recognising the economic potential of closer linkages, both sides recognised the opportunities to pave the way for the establishment of an ASEAN–India Free Trade Area (FTA).
Structure of the AIFTA
- The signing of the ASEAN-India Trade in Goods Agreement paves the way for the creation of one of the world’s largest FTAs – a market of almost 1.8 billion people with a combined GDP of US$2.8 trillion.
- It sees tariff liberalisation of over 90 percent of products traded between the two dynamic regions, including the so-called “special products”.
- The products include palm oil (crude and refined), coffee, black tea and pepper.
Criticism
While there are many benefits to the ASEAN-India FTA, there is concern in India that the agreement will have several negative impacts on the economy.
- Opening-up its market: This FTA will allow them to increase the market access of their products.
- No specific gains: It is criticised, however, that India will not experience as great an increase in market access to ASEAN countries as ASEAN will in India.
- Export driven ASEAN: The economies of the ASEAN countries are largely export-driven. Considering India’s expansive domestic market, the ASEAN countries will look eagerly towards India as a home for its exports.
- Huge trade deficit: Since the early 2000s, India has had an increasing trade deficit with ASEAN. It is feared that a gradual liberalisation of tariffs and a rise in imported goods into India will threaten several sectors of the economy.
- Inaccessible Markets: As a dominant exporter of light manufacturing products, ASEAN has competitive tariff rates that make it difficult for India to gain access to the industry market in ASEAN countries.
- Cheaper imports: The state of Kerala is an important exporter in the national export of plantation products. It fears that cheap imports of oil palm, rubber, coffee, and fish would lower domestic production, adversely affecting farmers and ultimately its economy.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NATO
Mains level: Not Much
NATO has withdrew the accreditation of eight Russian officials to the military alliance in response to a rise in malign activities by Moscow.
NATO
- NATO is a military alliance established by the North Atlantic Treaty (also called the Washington Treaty) of April 4, 1949.
- It sought to create a counterweight to Soviet armies stationed in Central and Eastern Europe after World War II.
- Its original members were Belgium, Canada, Denmark, France, Iceland, Italy, Luxembourg, the Netherlands, Norway, Portugal, the United Kingdom, and the United States.
- NATO has spread a web of partners, namely Egypt, Israel, Sweden, Austria, Switzerland and Finland.
Why was it founded?
Ans. Communist sweep in Europe post-WWII and rise of Soviet dominance
- After World War II in 1945, Western Europe was economically exhausted and militarily weak, and newly powerful communist parties had arisen in France and Italy.
- By contrast, the Soviet Union had emerged from the war with its armies dominating all the states of central and Eastern Europe.
- By 1948 communists under Moscow’s sponsorship had consolidated their control of the governments of those countries and suppressed all non-communist political activity.
- What became known as the Iron Curtain, a term popularized by Winston Churchill, had descended over central and Eastern Europe.
Ideology of NATO
- The NATO ensures that the security of its European member countries is inseparably linked to that of its North American member countries.
- It commits the Allies to democracy, individual liberty and the rule of law, as well as to peaceful resolution of disputes.
- It also provides a unique forum for dialogue and cooperation across the Atlantic.
The Article 5
- The heart of NATO is expressed in Article 5, in which the signatory members agree that an armed attack against one or more of them in Europe or North America shall be considered an attack against them all.
Why in news now?
- The relationship between NATO and Russia is at its lowest point since the end of the Cold War.
- The NATO (rather US) sees their aggressive actions, not least against Ukraine, but also the significant military buildup and violations of important arms control agreements.
- NATO suspended practical cooperation with Russia in 2014 after it annexed Ukraine’s Crimean Peninsula.
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From UPSC perspective, the following things are important :
Prelims level: High Ambition Coalition (HAC)
Mains level: NA
India has officially joined the High Ambition Coalition for Nature and People, a group of more than 70 countries encouraging the adoption of the global goal to protect 30×30.
High Ambition Coalition (HAC)
Aim: To promote an international agreement to protect at least 30 % the of world’s land and ocean by 2030
- The HAC is an informal group of approximately 61 countries within the UN Framework Convention on Climate Change (UNFCCC).
- It is committed to advancing progressive proposals on climate ambition.
- The HAC was founded by the Republic of the Marshall Islands in 2014 with the aim of ensuring the Paris Agreement, adopted in 2015, was as ambitious as possible.
- The Republic of the Marshall Islands serves as the convener and secretariat of the HAC.
- The global 30×30 goal is currently a centerpiece of the treaty.
Members
- HAC members currently include a mix of countries in the global north and south; European, Latin American, Africa and Asia countries are among the members.
- India is the first of the BRICS bloc of major emerging economies (Brazil, Russia, India, China and South Africa) to join the HAC.
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From UPSC perspective, the following things are important :
Prelims level: Industrial Park Ratings System (IPRS)
Mains level: NA
The Department for Promotion of Industry and Internal Trade (DPIIT) has released the Industrial Park Ratings System Report.
Industrial Park Ratings System (IPRS)
- The IPRS pilot exercise was launched in 2018 with an objective of enhancing industrial infrastructure competitiveness and supporting policy development for enabling industrialization across the country.
- The IPRS report is an extension of the India Industrial Land Bank which features more than 4,400 industrial parks in a GIS-enabled database.
- It seeks to help investors identify their preferred location for investment.
- With this report, the investors can even remotely refer to this report to identify the suitable investable land area, as per the various parameters of infrastructure, connectivity, business support services and environment and safety standards.
Highlights of the report
- 41 Industrial Parks have been assessed as “Leaders” in the Industrial Park Ratings System Report released by DPIIT.
- 90 Industrial Parks have been rated as under the Challenger category while 185 have been rated as under “Aspirers”.
- These ratings are assigned on the basis of key existing parameters and infrastructure facilities etc.
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