GS Analyst: Daily Current Affairs

Context:

The EU's carbon tax needs scrutiny, taking into account industry concerns about the challenges in achieving a green transition.

Concerns Regarding EU's Carbon Adjustment Mechanism (CBAM)

• Data Submission Burden: Indian industry expresses immediate concerns about CBAM requiring exporters to submit nearly 1,000 data points, fearing loss of competitive advantage and compromising trade secrets.
• Tariff Impact: Industry estimates suggest EU tariffs could raise costs by 20 to 35%, posing a serious challenge as more than a fourth of India's iron, steel, and aluminium exports go to the EU.
• Sensitive Trade Issues: The data-sharing process is deemed burdensome, and there's apprehension about the compromise of sensitive trade secrets during the exercise.

Navigating CBAM's Definitive Phase

• Tariff Imposition Challenges: With tariffs expected in 2026, a significant effort is needed to contest CBAM's protectionist nature, with India questioning it at the WTO.
• Global Collaboration: India must collaborate with affected countries to challenge CBAM at climate fora, considering its imposition in an unequal context of rich countries not fulfilling clean technology accessibility commitments.
• Alternative Funding Suggestion: Experts propose imposing the tariff but directing funds to developing countries instead of the EU's corpus, requiring tough negotiations.

Future Challenges and Industry Responses

• Potential Global Adoption: Apprehensions arise about other economies following the EU's lead; the US is considering a similar levy. Tata Steel and JSW prepare for challenges with ambitious decarbonization targets.
• Technological Hurdles: Abating emissions in the steel sector is challenging. Small companies may struggle with costly technological interventions, necessitating support from governments and financial institutions.
• Domestic Green Transition: The government considers a levy akin to CBAM for domestic green transition funding, raising uncertainties about EU cooperation and tariff withdrawal.

Context:

The current state of Parliament reflects a decline, with the ruling dispensation, despite citizen endorsement, showing little effort to uphold the opposition as the voice of the nation.

Reviewing the State of Indian Parliament Post December 2023 Incident

• Security Lapse Incident: A serious security lapse occurred in the Lok Sabha, leading to a stand-off between the Opposition and the ruling party.
• Unprecedented Suspension: The aftermath involved the suspension of 146 members from various Opposition parties, sparking discussions on procedural concerns.
• Need for a Holistic Review: Beyond procedural issues, it's crucial to assess the incident's impact on India's parliamentary government conception.

Historical Context of India's Choice for a Parliamentary System

• Debate on Form of Government: During the Constituent Assembly, debates raged around presidential, Indian orthodox, Swarajist, and parliamentary systems.
• Parliamentary System Triumph: The parliamentary model won, emphasizing the need for a decisive authority responsive to citizen mandate and the importance of minority representation.
• Inherent Pluralism: Advocates highlighted that the parliamentary system accommodates doctrinal, ethnic, and cultural pluralisms, reflecting India's diverse spirit.

Challenges to India's Parliamentary System and Its Evolution

• Paradox of Stability and Challenge: A stable parliamentary system demands majority support but requires constant critical validation to uphold the common good.
• Evolution of Opposition Dynamics: Jawaharlal Nehru recognized the importance of an effective opposition, despite initial discomfort. The competitive party system institutionalized stable support and effective opposition.
• Present Challenges and Response: The recent security breach in Parliament raises concerns. The ruling party's attempt to limit the Opposition's space is countered by the system's logic.

Context:

The Maharashtra case illustrates the necessity for the authority to disqualify members to be in impartial hands.

Maharashtra Assembly Speaker's Ruling on Shiv Sena Disqualification Petitions

• Anti-defection Law Concerns: The article criticizes the adjudication of disqualification petitions by Maharashtra Assembly Speaker Rahul Narwekar under the anti-defection law.
• Verdict Outcome: The Speaker rules no case for disqualifying members of the Eknath Shinde and Uddhav B. Thackeray factions based on a 'real political party' determination.
• Ruling's Basis: Narwekar's decision heavily relies on aspects of the Supreme Court's verdict, interpreting party loyalty and whip validity.

Critique of Speaker's Verdict in Contrast to Supreme Court's Observations

• Contradictions with Court Ruling: The Speaker's ruling contrasts with the Supreme Court's conclusions on the original political party's definition and the irrelevance of faction percentages.
• Utilization of Party Constitution: The Speaker refers to party constitution versions submitted to the Election Commission, a factor the Court mentioned in determining the real party.
• Potential Supreme Court Appeal: The Uddhav Thackeray group may approach the Supreme Court, arguing that the Speaker's decision contradicts key conclusions of the Bench.

Challenges of Adjudicating Defection Disputes and the Need for Reform

• Political Influence Concerns: The article underscores the influence of political considerations on Speakers adjudicating defection disputes, casting shadows on the impartiality of rulings.
• Dependency on Speakers: The need for an independent authority, rather than Speakers, to handle defection disputes is emphasized to ensure unbiased and fair decisions.
• Future Reforms: The article suggests the imperative need for reforms to depoliticize the adjudicatory function, preventing political considerations from influencing anti-defection law applications.