Context:

• India and Malaysia are forming a framework for conducting trade in Local Currency and initiating a process to review the 12-year-old comprehensive economic cooperation agreement.

Seek to Enhance Trade Collaboration in High-Tech Sectors

• Both sides are also keen to expand trade engagement in Local Currency in emerging areas such as electronics, semiconductors, fintech, renewable energy, new technology and startups.

India Encourages Use of Local Currency in Global Transactions

• India has taken substantial steps to promote the usage of its national currency in international transactions. 
• Banks from 18 countries have been permitted by the Reserve Bank of India (RBI) to open Special Vostro Rupee Accounts (SVRAs) for settling payments in Indian rupees.

• • SVRAs could be set up by banks of partner countries by approaching Authorized Dealer (AD) banks in India that may get permission from the RBI after the due procedure.
  • 18 Countries Includes: Botswana, Fiji, Germany, Guyana, Israel, Kenya, Malaysia, Mauritius, Myanmar, New Zealand, Oman, Russia, Seychelles, Singapore, Sri Lanka, Tanzania, Uganda and the United Kingdom
• A Vostro Account is a bank account held by a domestic bank for a foreign bank, denominated in the domestic currency of the former.
  • The Rupee Vostro Account specifically holds the foreign entity’s deposits in Indian rupees at the Indian bank.
  • Nostro account refers to an account that a bank holds in a foreign currency at another bank.
• The settlement through Indian Rupees (INR) is an additional arrangement to the existing system that uses freely convertible currencies.

India-Malaysia Comprehensive Economic Cooperation Agreement:

• India- Malaysia have discussed the need to relook at the Comprehensive Economic Cooperation Agreement (CECA) that came into effect in 2011, to include new areas of trade like the digital economy and other emerging areas.
• CECA: It is a comprehensive agreement that covers trade in goods, trade in services, investments and movement of natural persons. 
• It value-adds to the benefits shared from ASEAN-India Trade in Goods Agreement (AITIG) and further facilitates the two-way economic relations.

News Source: Business Standard

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• Armenia is looking forward to early linkages between the International North South Transport Corridor (INSTC) and the Chabahar Port for seamless connectivity.

More on News:

• Armenia is in talks to join Iran’s Chabahar Port as it seeks access to India and other Asian nations.
• This comes in the backdrop of the trilateral grouping of India, Iran and Armenia. 
  • During a meeting in Armenia this April, the three sides discussed economic projects and regional communication channels.
• Armenia has proposed the Persian Gulf-Black Sea corridor via Iran parallel to INSTC or part of a new branch of INSTC to connect Indian traders with Russia and Europe.

About International North South Transport Corridor (INSTC):

• It is a multi-modal transportation established in 2000 in St. Petersburg, by Iran, Russia and India. 
• Purpose: It is a multi-modal transport project that spans over 7,200 kilometres and aims to ease the transportation of cargo among Afghanistan, Armenia, Azerbaijan, Russia, Central Asia, Europe, as well as India and Iran.

• Corridor: It connects the Indian Ocean and Persian Gulf to the Caspian Sea via Iran, then is connected to St. Petersburg and Northern Europe via Russia.   
  • It begins in Mumbai and goes to Bandar Abbas and Bandar-e-Anzali in Iran, then crosses the Caspian Sea to reach Astrakhan, Moscow, and St. Petersburg in Russia.
• The member countries of the INSTC include India, Iran, Russia, Azerbaijan, Armenia, Kazakhstan, Kyrgyztan, Tajikistan, Turkey, Ukraine, Belarus, Oman, Syria, with Bulgaria as the observer state.  

Significance of INSTC for India:

• As per Federation of Freight Forwarders’ Association of India (FFAI), INSTC will make cargo transportation 30% cheaper and 40% faster vis-a-vis the traditional transportation route of the Suez Canal. 
  • Transit time of around 45 to 60 days for cargo shipment from Europe to India via the Suez Canal will be reduced to merely 23 days through INSTC.
• Potential to unlock economic growth, foster cooperation among member nations, and open up new avenues for international commerce.
  • Since the beginning of the Russia-Ukraine war, India’s trade with Russia has increased manifold via the INSTC.
• Energy Security: It will also facilitate access to hydrocarbons and other mineral resources from Central Asia.
• INSTC could help India attract a significant portion of the export-oriented manufacturing activities that are looking to move out of China.

About Persian Gulf-Black Sea Corridor:

• Proposed corridor is expected to connect Mumbai with the port city of Bandar Abbas in Iran before going on to Armenia and onward to Russia or Europe.
• It will run parallel to the INSTC and will bypass Azerbaijan (shares close relations with Turkey and Pakistan) which does not enjoy good ties with India. 

News Source: Economic Times

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Context:

• The demonetisation exercise recently completed 7 years.

Seven Years After Demonetization: Digital Growth Amidst Surging Cash Circulation in India:

• Seven years after Demonetization, UPI (Unified Payments Interface) and other digital payment mechanisms have reduced the number of cash transactions, but cash in circulation in the Indian economy has nearly doubled, a survey has found. 

About Demonetization in India:

• Tackling black money: Demonetisation, announced in November 2016, was undertaken to weed out black money and nudge people to change their method of payment from cash to digital.
• Stripping higher order currency:  It included the scrapping of Rs 500 and Rs 1,000 notes, representing over 86 per cent of the currency in circulation by value.
• Impact on black money: The Reserve Bank of India (RBI) announced that 98 percent of Rs 500 and Rs 1,000 notes were returned to the banking system, attracting mixed reactions from citizens, experts as well as politicians.
  • Nearly seven years later, in 2023, the RBI announced its decision to withdraw the Rs 2,000 notes. 
  • As of October 31, 97 per cent of all Rs 2,000 notes in circulation have been returned. 

India’s Digitalization Journey: UPI’s Dominance, Global Recognition, and the Dual Story of Cash Transactions

• Rise in Cashless payments: As per a recent survey by LocalCircles, after the demonetisation, the circulation of cash in the Indian economy and the adoption of UPI has grown. 
  • In May 2023 for instance, UPI accounted for over 78 per cent of total retail digital payments in India.
  • Only every four Indians used cash for over 25 per cent of their monthly household purchases in the past 12 months.
  • As per the Hansa Research’s 2023 DigiPay CuES survey, 58 per cent of consumers have reduced cash transactions since the pandemic. 
• Global recognition: India’s expertise in digital transactions is gaining recognition in both Asian and European countries.
• Increase in Cash transactions: While UPI and other digital payment mechanisms have reduced the number of cash transactions, cash in circulation in the Indian economy has increased from 17 lakh crores in November 2016 to 33 lakh crores in October 2023.
• Sectors with prominence of cash transactions:  The survey revealed that 82 per cent cash was used for purchases in the last one year to pay for groceries, eating out and food delivery.
  • As per the survey,  76 per cent of those who bought a property in the last 7 years had to pay a component of the price in cash.

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• One year after the initiation of Project Cheetah, India’s attempt to reintroduce African cheetahs into the country’s wild, has reported significant accomplishments. 

Project Cheetah: Milestones Achieved in Conservation and Local Community Engagement

• The Project Cheetah has achieved short-term success on four counts: 
  • 50% survival of introduced cheetahs
  • Establishment of home ranges
  • Birth of cubs in Kuno
  • Revenue generation for local communities

Assessing Project Cheetah: Achievements and Challenges in Conservation Efforts

• Survival of Cheetah: According to India’s official Cheetah Action Plan, the eight cheetah imports from Namibia should have spent a cumulative 75 ‘cheetah months’ in the wild.
  • However, in reality, they spent just about 16 ‘cheetah months’ outside the bomas (Chart).
  • Yet, the project lost 40% of its functional adult population. 
•  Establishment of home ranges: Fewer than four cheetahs have stayed continuously in the wild for more than three months. 
  • It is improbable that any of these cats would have formed “home ranges” in Kuno.
• Reproduction: The goal, as per the Action Plan, was successful Cheetah reproduction in the wild. 
  • However, the Namibian female that gave birth to four cubs in Kuno, was captive raised herself.

• Livelihood: The project has generated a number of jobs and contracts for the local communities, and the price of land has appreciated significantly around Kuno. 
  • No human-cheetah conflict has been reported in the area.

News Source: Indian Express 

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Context: 

• The UK-based ranking agency, QS Quacquarelli Symonds declared its Asia ranking for the year 2024, QS World University Rankings: Asia 2024.

Indian Universities on the Rise: Achievements and Challenges in QS Asia Rankings 2024

• Ranking of Indian Institutes: Institutes ranked in the top three in India are IIT Bombay (40th), IIT Delhi (46th) and IIT Madras (53rd) which have consistently maintained their Asia rank from last year. 
  • IIT Kharagpur which was ranked 61 in 2023 has jumped to 59. And IIT Kanpur has jumped from rank 66 in last year to 63 in 2024.

• • The two non-IIT institutions from India in top 100 Asia ranks are Indian Institute of Science Bangalore and Delhi University. 
• Global rankings: India has surpassed China in the number of ranked universities.
  • India is now the most represented higher education system in QS World University Rankings: Asia With 148 featured universities. 
• Academic reputation: India falls below the regional average in academic reputation (11.8 vs 19) and employer reputation (9.6 vs 18).
• Papers per faculty metric: Seven Indian universities feature among the top 10 in the region for the papers per faculty indicator. 
  • It achieved the second-best regional results in the papers per faculty metric (36.0 vs 14.8) among the higher education systems with more than 10 universities ranked. 
• PhD indicator: India has achieved its best average score for the staff with PhD’ indicator (42.3 vs 22), signaling a strong research output and a highly qualified faculty body. 
  • This is only lower than Hong Kong SAR (57.6) and Taiwan.
• Reducing the time frame of reference: India is closing this growth gap. For example, from 2020 to 2022, China’s research output grew by 31 per cent while India’s grew by 29 per cent – a 7 per cent reduction in growth difference.
  • It suggests that India is catching up with its regional competitor.

News Source: Indian Express 

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• According to a World Intellectual Property Organization report World Intellectual Property Indicators 2023, patent application filings by Indians surged by 31.6% in 2022, the sharpest increase globally, reflecting the country’s growing innovation ecosystem.

Global Patent Trends 2022: India Surges in Innovation with Notable Rise in Patent Applications:

• Global Status: Innovators worldwide filed 3.46 million patent applications in 2022, which is 1.7% higher when compared with the previous year.

• Indian scenario: Indians filed 15,495 more patent applications in 2022 than in the previous year, while China received 33,605 more applications than in 2021. 
• Share of women: In absolute terms, India accounts for the sixth largest number of patent applications globally. 

• Women had a share of 23.9 percent of all the Patent Cooperation Treaty applications. 
• Major IP filing region: The bulk of IP filing activity in 2022 occurred in Asia, with the region accounting for 67.9%, 67.8% and 70.3% of global patent, trademarks and industrial designs filing activity. 
• Featured technology in published patent applications: Computer technology accounted for 11.1% of the world total in 2021. 
  • It was followed by electrical machinery (6.4%), measurement (5.8%), medical technology (5.2%) and digital communication (4.9%).
• Trademark filings: India was in the top four with 467,918 filings in 2022, behind the US (945,571), Turkey (482,567), and Germany (479,334).  
• Geographical indication (GI): China had the most GIs in force within its territory, with 9,571, followed by Hungary (7,843), Germany (7,386) and the Czech Republic (6,383).

News Source: Economic Times

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• Union Home Minister and Minister of Cooperation addressed the National Symposium on ‘Promotion of Organic Products through Cooperatives’ organized by National Cooperative Organics Limited (NCOL) to launch Bharat Organics Brand

Bharat Organics Brand: Boosting Organic Agriculture and Farmer Income

• The ‘Bharat Organics‘ brand of the NCOL was launched during the symposium.
• The NCOL’s logo, website and brochure was also launched and NCOL membership certificates were given to five cooperative societies.
• Six organic products under the ‘Bharat Organics’ brand were launched on the occasion. 
  • These products – tur dal, chana dal, sugar, rajma, basmati rice and Sonamasoori rice – will be sold through Mother Dairy’s 150 Safal outlets and online platforms.
• About 50 percent of profits from sale of organic products through NCOL will be transferred directly to member farmers.

About NCOL: Empowering Organic Farmers Nationwide Through Comprehensive Supply Chain Management

NCOL provides a platform to all the organic farmers across the country and makes arrangements for marketing of their products.

• It acts as an umbrella organization by managing the entire supply chain of organic products produced by various cooperative societies and related institutions across the country. 
  • It will undertake various activities like aggregation, certification, production, testing, procurement, storage, processing, branding, packaging, labeling, marketing, etc.
• It has been established under the Multi State Cooperative Societies Act, 2002 with headquarters at Gujarat and National Dairy Development Board being the chief promoter.

News Source: PIB

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• To address the air pollution, the Indian Institute of Technology (IIT) Kanpur has proposed “artificial rain” through cloud seeding to reduce pollution levels in the national capital.

Understanding Cloud Seeding: The Art of Artificial Rain for Weather Modification

• Artificial rain: Also known as cloud seeding, it is a weather modification technique used to encourage precipitation by introducing chemicals like silver iodide, potassium iodide, and dry ice into the sky using airplanes and helicopters.
• Condensation nuclei: These particles serve as nuclei around which water droplets can form leading to the development of raindrops.

• • It usually takes about half an hour for this method to make it rain.
• Objective: It serves various purposes, including reducing the impact of droughts, preventing forest fires, increasing precipitation, and enhancing air quality.

Exploring Cloud Seeding Techniques: Method of Artificial Rain 

• Hygroscopic cloud seeding: It aims to accelerate the coalescence of droplets in clouds, resulting in the formation of larger droplets that lead to precipitation. 
  • In this method, salt particles are dispersed at the cloud’s base. 
• Glaciogenic cloud seeding: It focuses on inducing ice production in supercooled clouds, leading to precipitation. 
  • It involves dispersing efficient ice nuclei, such as silver iodide particles or dry ice, into the cloud, which triggers heterogeneous ice nucleation.

Unlocking Water Resources: The Role of Cloud Seeding in Snowpack Enhancement

• Cloud seeding is used for enhancing winter snowfall and increasing mountain snowpack, supplementing the natural water supply available to communities of the surrounding area.

News Source: Economic Times

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Context:

• The Horn of Africa is facing deadly floods due to El Nino-linked ‘above average’ rains. Heavy rainfall is predicted to affect the region with varying intensity for the next three months.

Climate Change Impact: Devastating Effects of Unusual Rainfall in the Greater Horn of Africa

• According to the Red Cross, “Cumulatively, 10,277 households have been affected, 17 fatalities, 14 casualties, at least 1,009 livestock deaths, 84 latrines and 221 acres of agricultural farmland and crops destroyed (as of November 5, 2023).”
• Ordinarily, the Greater Horn of Africa has a short rainy season from October to December. However, due to climate change, some countries and zones were predicted to experience enhanced rainfall, described as “wetter-than-usual” conditions.

Source: Down To Earth

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• The Supreme Court clarified that its order banning barium and other banned chemicals in firecrackers applies to the entire country, not just the National Capital Region.

Supreme Court Orders on Firecrackers: Bans, Restrictions, and Environmental Concerns

• In October 2018, the apex court banned producing and selling all crackers except ‘green crackers’ and those with reduced emissions (improved crackers). 
• It also banned the manufacture and sale of ‘joined crackers’ (long rows of crackers joined together), prohibited barium salts in fireworks and said their noise levels should be within permissible limits.
• The court reiterated this in its October 29, 2021 order.
• In September 2023, the SC junked a plea by the firecracker manufacturers’ association to allow the use of joined crackers and to add barium with improved additives in green crackers.
• In 2020, the National Green Tribunal banned the sale and use of all kinds of firecrackers in NCR and said that green crackers would be permitted only in cities and towns with moderate or poor air quality.

The Chemistry of Firecrackers: Ingredients and Colors Explained

• Firecrackers typically contain four primary ingredients: oxidizer, fuel, coloring agents, and binder.

• An oxidizer is required for the cracker to catch fire, the fuel sustains the fire, coloring agents give it the colors and sparkles, while the binder holds this mixture until the cracker has spent itself.
• The white colour in a cracker is emitted through aluminum, magnesium and titanium, while the orange colour is carbon or iron. 
• Similarly, yellow agents are sodium compounds while blue and red are copper compounds and strontium carbonates. The green agent is barium monochloride salts or barium nitrate or barium chlorate.

The Ban on Barium in Firecrackers: Health and Environmental Concerns

• Barium is a metal oxide that pollutes the air and causes noise. 
• It was banned because of its harmful impact on human health.
  • such as irritation in the respiratory tract, skin allergies, breathing difficulties, and even cancer.

Green Crackers: Innovations for Environmental-Friendly Celebrations

• Green crackers are defined by the CSIR-National Environmental Engineering Research Institute (CSIR NEERI) as firecrackers with a smaller shell, no ash and/or additives such as dust suppressants to reduce emissions, especially particulate matter. 
• These crackers do not contain the barium compounds rather contain  alternative chemicals such as potassium nitrate and aluminum that give them their distinctive green color. Burning green crackers produces water vapor, reducing the dust emitted. 
• Green firecrackers produce sounds between 110 and 125 decibels, while conventional firecrackers produce sounds of around 160 decibels, making them almost 30 percent less noisy than conventional firecrackers.
• The three broad categories of such crackers are SWAS, SAFAL and STAR, developed by CSIR.
  • SWAS stands for “safe water releaseer”, and has a small water pocket that is released as vapor when the cracker is burst. This suppresses dust. 
  • STAR, or safe thermite cracker, does not comprise potassium nitrate and sulfur and emits reduced particulate matter at reduced sound intensity.
  • SAFAL is safe with minimal aluminum, which has minimum usage of aluminum and uses magnesium instead. This too emits less noise than traditional crackers.

Source: Indian Express

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• Paris-based International Energy Agency highlighted India’s Energy Conservation Building Code (ECBC), 2017 as a ‘notable exception’ among developing countries to have energy efficiency building codes.

Update on Energy Conservation Building Codes (ECBC) in India

• The Energy Conservation Building Codes was first released by the Ministry of Power’s Bureau of Energy Efficiency (BEE) in 2007, followed by an update in 2017. 
• 23 states have notified rules to enforce Energy Conservation Building Codes compliance, while large states like Maharashtra and Gujarat are still drafting rules.
• Implementing energy efficiency building codes like ECBC is important as buildings in India account for 30 percent of total electricity consumption, a figure expected to reach 50 percent by 2042.

About ECBC 2017: ECBC sets minimum energy standards for commercial buildings.

Objective: Enabling energy savings of between 25 and 50 percent in compliant buildings. 

Scope and Application of Energy Conservation Building Codes (ECBC) in Commercial Buildings

• Applicable to commercial buildings like hospitals, hotels, schools, shopping complexes, and multiplexes with a connected load of 100 kW or more, or contract demand of 120 kVA or more.

• It primarily looks at six components of building design 
  • Envelope (walls, roofs, windows), 
  • Lighting systems, HVAC systems, and 
  • Electrical power systems and 

• The requirements under each of these components are split between mandatory and prescriptive. 
• ECBC is for both new buildings and retrofitting existing buildings.Compliant buildings are assigned one of three tags in ascending order of efficiency: Energy Conservation Building Codes, ECBC Plus, and Super ECBC.

Status of ECBC Implementation: Although 23 out of 28 states have notified ECBC rules, only 15 states have notified rules based on the latest ECBC, 2017. These include Uttar Pradesh, Punjab, Karnataka, Andhra Pradesh, Telangana, and Kerala.

• Five states — Gujarat, Maharashtra, J&K, Ladakh, and Manipur — are yet to notify ECBC rules.

Source: Indian Express

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Context: 

• Recently, a G7 Ministers meet was held in Tokyo, Japan. G7 appeals for humanitarian pauses in Gaza, seeks hostages’ release.

Humanitarian Crisis in Gaza: Civilian Toll and Displacement

• A month of relentless bombardment in Gaza has killed more than 10,300 Palestinians, two-thirds of them women and minors, since Hamas gunmen killed 1,400 people and took some 240 hostages in an Oct. 7 cross-border gun rampage.
• Around 70% of Gaza’s 2.3 million people have fled their homes, and many of them are crowded into U.N. schools-turned-shelters. Civilians in Gaza are relying on a trickle of aid and their own daily foraging for food and water from supplies that have dwindled after weeks of siege.

Key Outcomes of G7 Meeting on Israel-Palestine Conflict

• Humanitarian pauses and corridors to facilitate urgently needed assistance, civilian movement, and the release of hostages
• The foreign ministers of G7 countries also emphasized on “Israel’s right to defend itself and its people in accordance with international law as it seeks to prevent a recurrence” of the Hamas attacks on Israel
• Iran to refrain from providing support for Hamas and taking further actions that destabilize the Middle East, including support for Lebanese Hezbollah and other non-state actors
• The G7 said that a two-state solution “remains the only path to a just, lasting, and secure peace”.

Source: The Hindu

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• The executive board of the International Monetary Fund (IMF) has approved a proposal to make a 50 percent increase in the SDR quota allocated to members in proportion to their current quotas.

IMF Proposes SDR Quota Increase: A Step towards Strengthening Global Financial Stability

• The proposal follows the guidance from the International Monetary and Financial Committee at the 2023 annual meetings. It will now be considered and made effective by the board of governors as part of concluding the 16th general review of quotas.

• The IMF’s board of governors conducts general SDR quota reviews at least every five years. Any quota changes require approval by 85 percent of the total voting power, and a member’s own quota cannot be changed without its consent.

Benefit of Move:

• The quota increase would enhance the IMF’s permanent resources and strengthen the quota-based nature of the Fund by reducing the reliance on borrowing and thus ensuring the primary role of quotas in fund resources.

Understanding IMF SDR Quotas: Cornerstones of Global Financial Governance

SDR Quotas are the building blocks of the IMF’s financial and governance structure. 

• An individual member country’s quota broadly reflects its relative position in the world economy. 
• SDR Quotas are denominated in SDRs, the IMF’s unit of account. 
• The SDR is an international reserve asset, created by the IMF in 1969 to supplement its member countries’ official reserves.

• These determine the maximum amount of financial resources a member is obliged to provide to the IMF. 
• They are also key determinants of voting power besides the maximum amount of loan a member can avail of.
• SDR Quota formula includes GDP (50%), openness (30%), economic variability (15%), and international reserves (5%).

India’s SDR Quota:

• Currently, India has a quota of special drawing rights (SDR) of 13,114.4 million, which denotes a share of 2.75 percent, making it the eighth-largest quota-holding country in the IMF.
• Based on the quota, India has 132,063 votes, which denotes a share of 2.63 percent.

Source: Business Standard

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• Recently, the Production Gap Report 2023 was released by Stockholm Environment Institute (SEI), Climate Analytics, E3G, International Institute for Sustainable Development (IISD) and the UN Environment Programme (UNEP).

2023 Production Gap Report: Fossil Fuel Disparity Among Top Producers

• The Production Gap Report was first launched in 2019 to assess governments’ planned production against Paris Agreement temperature goals.
• Production Gap Report Titled: “Phasing down or phasing up? Top fossil fuel producers plan even more extraction despite climate promises” 
• The report assessed the fossil fuel production policies of 20 major producer countries, which account for 82% of global production and 73% of consumption.
  • Australia, Brazil, Canada, China, Colombia, Germany, India, Indonesia, Kazakhstan, Kuwait, Mexico, Nigeria, Norway, Qatar, the Russian Federation, Saudi Arabia, South Africa, the United Arab Emirates (UAE), the US, and the UK.

Global Fossil Fuel Production Threatens Climate Goals: A Critical Analysis by Production Gap Report

• Planned Fossil Fuel Production Exceeds Climate Goals as per Production Gap Report:
  • Countries are planning to produce around 110% more fossil fuels in 2030 than is consistent with limiting global warming to 1.50C.
• Global Coal Production Increase:
  • Near-term increase in coal production, with India and the Russian Federation leading the way, planning significant expansions through 2030.
  • India aims for self-reliance and considers the coal industry of paramount importance for income and employment generation. Around one-fifth of India’s coal demand is met through imports, which exposes the country to price volatility in the international market and loss of foreign exchange reserves.
• Climate Impact of Fossil Fuel Burning:
  • The world has burned enough fossil fuels to raise the concentration of carbon dioxide in the atmosphere from 275 parts per million (ppm) before the industrial revolution to about 420 ppm today. 
  • This increase leads to more heat being trapped, leading to climate change.
• Government Plans Undermine Energy Transition:
  • The report also notes that government plans and projections would lead to an increase in global coal production until 2030 and in global oil and gas production until at least 2050.
  • It shows that, compared with 2020 levels, annual oil and gas production is projected to increase by 27% and 25% by 2030 and by 29% and 41% by 2050, respectively. 
  • On the other hand, annual coal production is projected to increase by 10% between 2020 and 2030, before falling by 41% between 2030 and 2050.
• Lack of Commitment to Production Reduction as analyze by Production Gap Report:
  • Major producer countries have pledged net-zero emissions but have not committed to reducing coal, oil, and gas production in line with limiting warming to 1.5 degrees Celsius.

India’s Climate Roadmap to fulfill Production Gap Report Parameter: NDCs, Coal Dilemma, and Economic Growth Balancing Act – 

• India updated Nationally Determined Contributions submitted to the UNFCCC:
  • To reduce the emissions intensity of its GDP by 45% by 2030 (from the 2005 levels).
  • To achieve about 50% of its cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030.
  • To create an additional carbon sink of 2.5 to 3 billion tonnes of CO2 equivalent through additional forest and tree cover by 2030. 
  • These steps would help the country reach its long-term goal of reaching net zero by 2070.

• India’s Stand on Coal and Economic Growth:
  • India argues for a phased ‘down’ rather than a complete phase-out of coal, citing its necessity for economic growth.
  • Coal currently contributes to nearly 70% of India’s electricity generation, playing a crucial role in poverty alleviation.
• Current Coal Production in India:
  • Recent data from the Ministry of Coal indicates a notable increase in India’s coal production, reaching 78.65 million tonnes in October 2023, an 18.59% rise from October 2022.
  • Coal India Limited (CIL) alone has contributed to this increase, with coking coal production expected to reach 140 MT by 2030, primarily for the steel industry.

• Export Ambitions:
  • India aims to be a net thermal coal exporter by 2024–2025.
  • Currently meets one-fifth of coal demand through imports, exposing to international market price volatility.

India’s Strategy for Clean Energy Transition: From COP Pledges to Innovative Solutions

• India’s Climate Pledges:
  • Emissions: Despite low per capita CO2 emissions, India ranks as the third-largest emitter globally, contributing 2.9 gigatons of CO2 equivalent annually.
    • A major portion of these emissions are driven by the six sectors; power, steel, automotive, aviation, cement, and agriculture. 

• • COP27 Pledge: India commits to reducing emissions intensity of its GDP by 45% by 2030, aiming for 50% electric power from non-fossil fuel sources by 2030.
  • COP26 Ambitions: India sets ambitious goals, aiming for 50% decarbonization of energy, 500 GW fossil fuel-free capacity, and net-zero emissions by 2070.
• Energy Storage Technologies for a Sustainable Future:
  • Current Energy Sector Status: India stands 4th globally in renewable energy and 4th in solar and wind power capacity.
  • Transition from Coal: As India phases down coal use, Battery Energy Storage Systems (BESS) with safe lithium iron phosphate (LFP) technology enhance efficient electricity consumption.
  • Role of Advanced Battery Technologies: New flow battery technology using non-flammable electrolytes gains popularity for sustainable energy storage, aligning with the global focus on limiting emissions.
• Carbon Capture Technologies for Net Zero:
  • Reducing CO2 from challenging sectors like power plants, steel, and cement is crucial for industrial carbon intensity reduction.
  • Wide deployment of Carbon Capture, Utilization, and Storage (CCUS) tech is vital for achieving carbon neutrality by 2070.
    • CCUS Functionality: Captures CO2 emissions from power plants or industries, preventing their release into the atmosphere, either reusing or storing underground.
  • Advanced Solvent Carbon Capture (ASCC): 
  • Similarly, ASCC technology is designed to capture carbon dioxide emissions from post-combustion flue gases, which are difficult to treat due to the low CO2 concentration. 
    • In the ASCC process, carbon dioxide is absorbed into an amine solvent and then directed to a stripper where CO2 is separated from the solvent and finally transported to be utilized or stored. 
• Sustainable Aviation Fuel (SAF) and Biofuels: Anticipated demand for air passenger journeys in 2050 exceeds 10 billion, posing a challenge for carbon emissions. Biofuels play a vital role in decarbonizing the global aviation industry.
  • Sustainable Aviation Fuel (SAF): A promising solution replacing traditional jet fuels, increasingly used for propulsion and auxiliary power unit engines.
  • Ethanol-to-Jet Fuel (ETJ) Technology: Enables conversion of corn-based, cellulosic, or sugar-based ethanol into SAF.
    • Jet fuel from ETJ process can minimize GHG emissions by 80% on a total lifecycle basis compared to petroleum-based jet fuels.
  • Biofuel Innovation: According to the International Energy Agency, biofuel use needs to triple to approximately 12% of transportation fuel demand by 2030 for effective emission reduction.
    • Biofuels can be manufactured from agricultural waste like plant-based oils, animal fats, and other waste products.
    • National Policy on Biofuels 2018 emphasizes reducing import dependency, providing better remuneration to farmers, and environmental pollution reduction.
      • The policy earlier envisaged an indicative target of 20% ethanol blending in petrol by the year 2030, however, now the target has been advanced to 2025.
• Hydrogen as a Clean Energy Frontier:
  • National Green Hydrogen Mission: India aims to become a global leader in green hydrogen production and exports, projecting a capacity of 5 Million Metric Tonnes per annum by 2030.
  • Green hydrogen from renewable sources and blue hydrogen produced with carbon capture and storage technologies are seen as alternatives for decarbonization.

Urgent Call for Action: A Managed Phase-Out of Fossil Fuels to Achieve Global Climate Goals

• Call for Managed Phase-Out:
  • The report suggests the need for a managed and equitable phase-out of coal, oil, and gas to benefit every person and address the challenges ahead.
  • The report suggests aiming for a near-total phase-out of coal production and use by 2040 and a combined reduction in oil and gas production and use by three-quarters by 2050 from 2020 levels, at a minimum.
• Transparent Planning for Fossil Fuels: It recommended that governments be more “transparent in their plans, projections, and support for fossil fuel production and how they align with national and international climate goals”.
• Adopting Reduction Targets: Urges governments to adopt clear and measurable reduction targets for both near- and long-term fossil fuel production and use.
  • Countries with greater transition capacity should aim for faster reductions than the global average.

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Context:

• This article is based on an Editorial “A grainy picture: Tough to measure Covid’s impact on poverty without data” which was published in The Hindu. According to World Bank Estimates, the number of people who fell into poverty in India in 2020-21 was approximately 29.5 million.

World Bank Estimates Show Decline in Extreme Poverty in India

• According to fresh estimates by the World Bank, extreme poverty in India further declined to 11.3 per cent in 2022-23, but that was still above the pre-pandemic level of 11.09 per cent recorded in 2018-19.  
• In the absence of Household Consumer Expenditure Survey data from the government after 2011-12, the multilateral lending institution used data from the Consumer Pyramids Household Survey (CPHS) conducted by the Centre for Monitoring Indian Economy to estimate poverty for India.  
• The impact of the pandemic on pov­erty and inequality in India has been a contested issue in the absence of govern­ment data. 

Understanding Poverty in India: Definitions and Perspectives

• Poverty can be defined as a condition in which an individual or household lacks the financial resources to afford a basic minimum standard of living. 
• However, the perception regarding what constitutes poverty may vary over time and across countries. 

Exploring Poverty Classifications: Absolute vs. Relative Poverty in India

• Absolute Poverty: – It is the complete lack of the means necessary to meet basic personal needs, such as food, clothing and shelter. 
• Relative Poverty: – It is the condition in which people lack the minimum amount of income needed in order to maintain the average standard of living in the society in which they live. 

Measuring Poverty in India: Approaches and Recommendations in India

• The conventional approach to measuring poverty is to specify a minimum expenditure (or income) required to purchase a basket of goods and services necessary to satisfy basic human needs. This expenditure is called the poverty line.
• Poverty in India can be measured in terms of the number of people living below this line (with the incidence of poverty expressed as the head count ratio). 
• Six official committees have so far estimated the number of people living in poverty in India — the working group of 1962; V N Dandekar and N Rath in 1971; Y K Alagh in 1979; D T Lakdawala in 1993; Suresh Tendulkar in 2009; and C Rangarajan in 2014.
• Arvind Panagariya Task Force on Elimination of Poverty in India (2015): 
  • Key Recommendations: Government to Focus on Bottom 30% in Poverty Alleviation Efforts
    • It has recommended to the PMO that a new committee be set up, which will work on the definition to identify BPL population, and this will include active participation from the states.
    • Continue with the Tendulkar poverty line. 
    • Track progress over time of the bottom 30 percent of the population and last, track progress along specific components of poverty such as nutrition, housing, drinking water, sanitation, electricity and connectivity.

COVID-19’s Impact on India’s Poor: Job Losses, Income Decline, and Rural Hardship

• Impact of First wave: In India, the lockdown accentuated crisis caused several industries to collapse and shut down, leaving millions of informal workers stranded.
  • Centre for Monitoring Indian Economy (CMIE) estimates that there is a net loss of 7 million jobs between February 2020 and February 2021. The biggest loss in jobs is suffered by the non-farm workers (11.6 million) followed by salaried employees (4.2 million), daily wage earners (4.2 million) and businesspersons (3 million). 
  • Decline in the condition of employment:. The employment (particularly re-allocated one) was not as fruitful as compared to the employment from the pre-crisis times. 
    • Workers experienced a decline in the number of working hours and wage cuts in their reinstated jobs.
  • Informality of the jobs has increased: With nearly half of the salaried workers moving into the informal sector .As a consequence, there was a fall on an average of 12% in household income during 2020–2021.
    • Geographical coverage of Economic woes: The COVID-19 problems in India were once thought to be an urban phenomena, but due to backward and forward economic linkages across the sectors, their negative economic effects swiftly expanded to the rural sector.
    • Effect on Agriculture:The unplanned and hurriedly carried out lockdown of the year 2020 not only caused a large migration of people from the countryside to the cities, but it also brought agriculture and related activities to a halt, leaving millions of rural laborers trapped and in hardship.
    • Effect of Lack of Movement on Rural Income: The urban restrictions in terms of movement of labor, primary, intermediate and final goods, particularly perishable goods (horticulture and others), severely affected rural income and production.Impact of second wave:  Although, at this time, the lockdown was not imposed at the national level in the manner it was imposed last year, in terms of stringency and duration, yet the impact in terms of loss of lives and hence the loss of livelihood is severe.
• Compounding problems of Poverty in India:With the increasing job informality and unemployment, exceedingly high out-of-pocket expenditure (OOP), health expenditure and the apprehensions of the third wave restricting household spending, the second wave resulted in compounding problems of poverty and impoverishment for the country.

Way Forward: New Strategies for the Post-COVID Era

• Reevaluating Poverty Lines: Poverty lines have to be recalibrated depending on changes in income, consumption patterns and prices. 
  • The usual poverty line used in narratives is 1.90 international dollars a day, but the World Bank has two others—$3.20 per day for middle-income countries and $5.50 per day for rich countries.
• Navigating India’s Transition: Adapting Political and Policy Frameworks for Middle-Income Dynamics: The Indian policy and administrative systems have to adjust to the new realities of the transition to a middle- income country, in which poverty does not mean living at the edge of hunger but, rather, lack of income to take a Advantage of the opportunities thrown up by a growing economy
  • The focus of government spending should be on the provision of public goods rather than subsidies. 

• Agricultural Growth and Poverty Alleviation: Agricultural growth has been recognised as an important factor that contributes to marked reduction in poverty in India.
  • For Example:  A study made by Montek Singh Ahluwalia, former member of Planning Commission, brought out clearly that agricultural growth and poverty are inversely related; higher agricultural growth leads to lower poverty ratio. 
  • The experience of Punjab and Haryana in the late sixties and in the seventies confirmed this inverse relation between agriculture growth and poverty in India. 
• Growth of Non-Farm Employment  in the rural areas:Non-farm employment is created in marketing (i.e., petty trade), transportation, handicrafts, dairying, and forestry, processing of food and other agricultural products, repair workshops. 
  • A study of poverty alleviation in Haryana brings out that significant reduction in rural poverty in Haryana in spite of a reduction in employment opportunities in agriculture was due to the remarkable increase in non-farm employment. 
• Hybrid Approach to Measuring Poverty in India: A hybrid approach which would measure poverty from the perspective of a common global standard of living and relative poverty within countries. 

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