GS Analyst: Daily Current Affairs

The North Atlantic Ocean has been experiencing record-high surface temperatures, a symptom of broader climatic upheavals. Yet, recent signs of cooling in both the Atlantic and Pacific Oceans may offer a glimmer of hope for vulnerable ecosystems and hurricane-prone regions. This cooling phenomenon, driven by two distinct climate patterns—La Nina and the Atlantic Nina—has the potential to impact weather patterns and hurricane activity significantly. As of August 2024, both patterns appear to be in development, a rare occurrence with complex implications.

What is La Nina?

• La Nina is part of the El Nino–Southern Oscillation (ENSO), a critical climate phenomenon with global repercussions.
• How it occurs?
  • It occurs when sea surface temperatures in the tropical Pacific Ocean fall below average.
  • This cooling effect strengthens easterly trade winds, leading to increased upwelling of cooler waters along the coast of South America.
  • These changes in ocean temperature and wind patterns can influence global weather, often resulting in stormier conditions in some regions and drier conditions in others.
• Crucially, during La Nina events, wind shear in the Atlantic—an important factor in hurricane formation—tends to weaken, allowing hurricanes to develop more easily.

Atlantic Nina

• In contrast, the Atlantic Nina occurs in the Atlantic Ocean and is a much smaller-scale phenomenon compared to its Pacific counterpart.
• It generally peaks around July or August and has a shorter duration.
• Atlantic Ninas typically have localized impacts, such as reduced rainfall in Africa’s Sahel region and increased rainfall in parts of Brazil and the Gulf of Guinea.
• Despite its relatively modest effects, an Atlantic Nina can counteract some of La Nina’s influences by weakening the upwelling processes that cool the eastern Pacific, thereby potentially affecting hurricane activity in the Atlantic.

The simultaneous emergence of both Ninas is rare but not unprecedented. This alignment is akin to two pendulums swinging in opposite directions, moving together due to weak coupling.

The Pradhan Mantri Jan-DhanYojana (PMJDY), the national mission for financial inclusion, has successfully completed 10 years.

About Pradhan Mantri Jan-DhanYojana (PMJDY)

• The mission aims to ensure access to financial services like a basic savings and deposit account, remittance, credit, insurance, and pension in an affordable manner.
• Under the scheme, a basic savings bank deposit (BSBD) account can be opened in any bank branch or Business Correspondent (Bank Mitra) outlet. Benefits of the scheme are: 
  • There is no requirement to maintain any minimum balance in PMJDY accounts.
  • Interest is earned on the deposit in PMJDY accounts.
  • Rupay Debit card is provided to PMJDY account holder.
  • Accident insurance cover of Rs1 lakh (enhanced to Rs. 2 lakh to new PMJDY accounts opened after 28.8.2018) is available with RuPay card issued to the PMJDY account holders.
  • An overdraft (OD) facility up to Rs. 10,000 to eligible account holders is available.
  • PMJDY accounts are eligible for Direct Benefit Transfer (DBT), Pradhan Mantri Jeevan JyotiBimaYojana (PMJJBY), Pradhan Mantri Suraksha BimaYojana (PMSBY), Atal Pension Yojana (APY), Micro Units Development and Refinance Agency Bank (MUDRA) scheme.

Has it achieved ‘financial inclusion’?

• JAM Trinity: The Indian government has focused on Digital Public Infrastructure, leveraging the JAM trinity—Aadhaar cards, mobile penetration, and Jan Dhan accounts. This approach has elevated the financial inclusion rate from 25% in 2008 to over 80% of adults in the last 6 years.
• Foundation for Economic Initiatives: PMJDY has served as a foundation for various people-centric economic initiatives, including direct benefit transfers, COVID-19 financial assistance, PM-KISAN, increased wages under MGNREGA, and expanded life and health insurance coverage.
• Social Impact: A 2021 SBI report noted that states with higher PMJDY account balances experienced a drop in crime rates and reduced alcohol and tobacco consumption, indicating the program’s positive social impact.
• Achieving Financial Inclusion Goals: In 2023, a G20 report by the World Bank confirmed that India achieved its financial inclusion goals within just 6 years—a feat that would have taken 47 years without its advanced Digital Public Infrastructure.
• Global Comparisons and Metrics: According to the SBI report of 2021, India has surpassed China in financial inclusion metrics.

India's Efforts Towards Financial Inclusion

• Banking Accessibility

India's journey toward financial inclusion began with significant milestones. The government, alongside institutions like the Reserve Bank of India (RBI) and the National Bank for Agriculture and Rural Development (NABARD), has made numerous efforts to enhance banking accessibility:

• 1969 & 1980: The nationalization of 20 private sector banks aimed to improve banking penetration, especially in rural areas.
• 1972: Introduction of priority sector lending to extend credit on favorable terms to agriculture and small industries.
• 2006: Introduction of business correspondents by the RBI to reach underserved areas.

Despite these efforts, by 2008, nearly half of India's population still lacked a bank account, as highlighted by an extensive study under the Chairmanship of C. Rangarajan, former Governor of RBI.

• Digital Public Infrastructure (DPI)
• In August 2014, financial inclusion received a major boost with the launch of the Pradhan Mantri Jan DhanYojana (PMJDY). This initiative, supported by Digital Public Infrastructure (DPI), transformed financial inclusion through:
  • Aadhaar: Providing biometric and portable identity.
  • Mobile Phones with Internet: Granting Jan Dhan account holders access to basic banking services.
• The integration of Jan Dhan, Aadhaar, and mobile (JAM) significantly improved banking penetration. As of August 14, 2024:
  • Total Accounts Opened: 53.1 crore
  • Rural and Semi-Urban Accounts: 35.4 crore
  • Female Beneficiaries: 29.6 crore
  • Total Deposits Mobilised: ?2.31 trillion

Impact and Achievements

• Household Banking: Nearly 100% of households are now connected with formal banking institutions.
• Financial Inclusion Index (FI-Index): The index improved from 60.1 in March 2023 to 64.2 in March 2024. This composite index, published by the RBI, measures various aspects of financial inclusion, including:
  • Ease of Access (35% weight)
  • Availability and Usage (45% weight)
  • Quality of Services (20% weight)

PYQ

Q1:  Is inclusive growth possible under market economy? State the significance of financial inclusion in achieving economic growth in India. (2022)

Q2: Pradhan Mantri Jan-DhanYojana (PMJDY) is necessary for bringing unbanked to the institutional fiancé fold. Do you agree with this for financial inclusion of the poorer section of the Indian society? Give arguments to justify your opinion. (2016)

India faces a diverse array of location-specific natural hazards, driven by complex interactions among weather events, local vulnerabilities, and exposure risks. Effective management of these hazards requires well-planned responses and a deep understanding of evolving risk landscapes. The National Disaster Management Authority (NDMA) has made notable strides in disaster response, but significant knowledge gaps and operational barriers persist, highlighting the need for a more robust approach to disaster preparedness and climate resilience.

Vulnerability Profile of India

• India experiences a range of extreme weather events across different seasons, including heatwaves, wildfires, heavy rains, landslides, droughts, and cyclones.
• Almost 58.6 percent of the landmass is prone to earthquakes of moderate to very high intensity; over 40 million hectares (12 per cent of land) are prone to floods and river erosion; of the 7,516 km long coastline, close to 5,700 km is prone to cyclones and tsunamis; 68 per cent of the cultivable area is vulnerable to drought and hilly areas are at risk from landslides and avalanches.

Current Hazard Landscape

• The India Meteorological Department (IMD) has been working to enhance weather forecasts, though these often lack the local specificity needed for effective disaster response.
• Advancements in climate research and predictive capabilities by academic institutions and government facilities are critical for improving hyperlocal forecasts. However, climate change is altering patterns, leading to increasingly unpredictable weather extremes.
  • For example, temperature trends have shifted in different regions, and rainfall extremes now occur beyond the traditional monsoon season, exacerbating issues such as landslides and wildfires.

Growing Vulnerabilities

• Settlement in hazardous areas: India's rapid population and economic growth have led to increased settlement in hazardous areas and informal housing on unstable slopes and flood-prone regions.
• Tourism and economic activities: Additionally, tourism and economic activities have intensified pressure on vulnerable regions, such as replacing forest cover with cash crops.
  • This development exacerbates vulnerabilities, combining factors like poverty, high population density, and poor infrastructure with wealthier, unsafe development
  • The lack of effective insurance and policies may further incentivize risky behaviors, heightening exposure to climate risks.
• Lack of information: Despite substantial investments in climate research, forecasts, and services, the uptake of climate information remains low.

Challenges in Climate Services

Climate services, which translate forecasts into actionable support for sectors like agriculture, water, energy, and transportation, often fall short due to insufficient local or sector-specific details. For example:

• Irrigation Advisories: Tools developed for optimizing irrigation based on weather forecasts have shown potential in saving water and maintaining crop yield. However, scaling these tools for widespread use involves significant challenges, including engaging farmers, developing user-friendly applications, and establishing effective extension agencies. These agencies are essential for translating research into practical applications but are often lacking in resources and training.
• Urban Flood Predictions: Effective urban flood management requires downscaled rainfall predictions for street-level forecasting. Municipalities use sensors and weather station data, but ideal flood management involves evaluating forecasts over multiple seasons to plan for drainage, traffic control, and emergency responses. The current lack of coordinated structures and trained personnel hampers the full operationalization of downscaled forecasts.

Bridging Research and Operations

The current research-to-operations framework is fragmented, with climate research often not translating into timely operational solutions. To improve weather-readiness and climate resilience, it is crucial to:

• Develop Sector-Specific Extension Agents: These agents should act as intermediaries between research and operational agencies, translating scientific data into actionable solutions. Training these agents in local languages and cultural contexts is essential for effective communication and implementation.
• Sustain Financing and Capacity-Building: Investment in research-to-operations systems at local and sector-specific levels is necessary to address climate risks effectively. Building capacity through training and developing infrastructure for operationalizing forecasts and advisories is crucial for enhancing disaster management and climate resilience.

The right approach for becoming weather-ready and climate-resilient

• Earth System Model (ESM):A complete integration of the Earth System Model (ESM) with the data network will be a functional digital twin, which will thrive on anticipating hazards and minimising impacts while driving rapid and full recovery back to the sustainable pathway.
  • ESM will be completely integrated with all land uses including lakes, crops, water and air quality, fisheries, health, ecohydrology, terrestrial and marine ecosystems from lower to upper trophic levels, and so on
• Circular economy:The ancient wisdom of the circular economy will see India manage the circularity of all resources with innovative biotechnologies that will drive biofuel, bioenergy, water and soil clean-up, minimisation of environmental footprints, and overall food, water, and energy security.
• Climate Leader: India has already established itself as a climate leader. Its commitment to the Paris Agreement and the development and implementation of its Nationally Determined Contributions (NDC) is a testament to this. India must continue to lead by example.
• Energy security is the backbone of national security. Solar, wind, and hydrogen must be the key pillars of the energy pathway to Net Zero. 
• Climate-smart agriculture will ensure minimising food, water, and energy waste and manage the food-water-energy nexus synergistically.
• Innovations in smart green buildings and infrastructureis necessary given the rapidly moving economy towards urbanisation.
• Climate adaptation and mitigation need synergy between different ministries such as MoEFCC, MoES, DA&FW, Jal Shakti (water resources), DST, DBT, and MeitY.

India’s journey toward improved weather-readiness and climate resilience involves addressing the multifaceted challenges posed by natural hazards, enhancing the effectiveness of disaster management systems, and bridging gaps between climate research and operational practices. By focusing on localized solutions, sustainable development, and capacity-building, India can better prepare for and mitigate the impacts of climate change, ensuring a safer and more secure future for its population.

The maritime dispute between China and the Philippines has escalated, with a recent clash near the Sabina Shoal intensifying tensions.

About

• The Sabina Shoal, also known as Xianbin Jiao (China) and Escoda Shoal (Philippines), is situated approximately 75 nautical miles west of the Philippines' coast and about 630 nautical miles from China.
• The shoal lies within the disputed Spratly Islands, a region known for its potential energy resources.

About the South China Sea Issue

• The South China Sea is a highly contested region involving multiple countries, each asserting claims over various islands and maritime zones.
• The dispute primarily centersaround control of the Spratly Islands and other features, which are believed to be rich in oil and gas deposits.
• China’s extensive claims are marked by the so-called nine-dash line, which overlaps with claims made by other countries, including the Philippines, Vietnam, Malaysia, and Brunei.
  • The line comprises nine dashes which extends hundreds of miles south and east from its most southerly province of Hainan.
• The Philippines had previously sought arbitration through the United Nations, which ruled against China’s expansive claims, but Beijing has refused to recognize this decision.
• The dispute affects regional players like China, Philippines, Vietnam, Malaysia, Brunei, and international stakeholders such as the UK, Japan, Australia, and South Korea.

Primary contested locations and the countries involved in these disputes:

The Union Cabinet has approved the development of 12 new industrial cities across 10 states in India, marking a significant advancement in the nation's effort to enhance its manufacturing capabilities and drive economic growth. This initiative, under the National Industrial Corridor Development Programme (NICDP), involves an estimated investment of Rs 28,602 crore.

About

• The new industrial areas will be established in the following locations:
  • Uttarakhand: Khurpia
  • Punjab: Rajpura-Patiala
  • Maharashtra: Dighi
  • Kerala: Palakkad
  • Uttar Pradesh: Agra and Prayagraj
  • Bihar: Gaya
  • Telangana: Zaheerabad
  • Andhra Pradesh: Orvakal and Kopparthy
  • Rajasthan: Jodhpur-Pali
• The project have been approved under the National Industrial Corridor Development Programme (NICDP).
• The new industrial cities will be developed as greenfield smart cities of global standards, built "ahead of demand" on the 'plug-n-play' and 'walk-to-work'
• Aligned with the PM GatiShakti National Master Plan, the projects will feature multi-modal connectivity infrastructure, ensuring seamless movement of people, goods, and services. 
• Benefits
  • Employment Opportunities: The NICDP projects are expected to generate approximately 1 million direct jobs and up to 3 million indirect jobs.
  • Investment Potential: The total investment potential from these projects is estimated at about Rs 1.52 lakh crore.
• This strategic move is set to transform India’s industrial landscape, creating a robust network of industrial nodes and cities that will significantly enhance the country's economic growth and global competitiveness.

The Union Cabinet approved an expansion of the Agricultural Infrastructure Fund (AIF).

About Agriculture Infra Fund (AIF)

• Agriculture Infra Fund (AIF) is a financing facility launched in 2020.
• Objective: Creation of post-harvest management infrastructure and community farm assets.
• It is a medium - long term debt financing facility for investment in viable projects for post- harvest management infrastructure and community farming assets through interest subvention and credit guarantee support. 
• Under this scheme, Rs 1 lakh crore is to be disbursed by financial year 2025-26 and the interest subvention and credit guarantee assistance will be given till the year 2032-33.
• Eligible beneficiaries: Farmers, Agri-entrepreneurs, Start-ups, Primary Agricultural Credit Societies (PACS), Marketing Cooperative Societies, Farmer Producers Organizations(FPOs), Self Help Group (SHG), Joint Liability Groups (JLG), Multipurpose Cooperative Societies, Central/State agency or Local Body sponsored Public Private Partnership Projects, State Agencies, Agricultural Produce Market Committees (Mandis), National & State Federations of Cooperatives, Federations of FPOs (Farmer Produce Organizations) and Federations of Self Help Groups (SHGs).

Key Changes and Objectives:

• Redesigned Scheme: The AIF will now include financial support for FPOs.
• Enhanced Attractiveness: The expansion aims to make the scheme more appealing and impactful.
• Infrastructure Development: The initiative focuses on strengthening agricultural infrastructure facilities across the country.
• Broader Scope: Expanding the range of eligible projects and integrating additional supportive measures.
• Previous Achievements:
• Sanctioned Projects: ?47,575 crore sanctioned for 74,508 projects.
• Mobilised Investment: ?78,596 crore in the agriculture sector, with ?78,433 crore from private entities.
• Employment Generated: Over 8.19 lakh rural jobs created in the agriculture sector.

India's Ministry of Defence has placed an order for 73,000 SIG716 rifles from Sig Sauer. This is the second major procurement order from Sig Sauer in the past five years.

About the SIG716 Rifle

• Platform: The SIG716 is an advanced rifle built on the ArmaLite Rifle (AR) platform, chambered for 7.62 NATO rounds.
• Design Features:
  • Barrel: 16-inch barrel.
  • Handguard: M-LOK handguard for improved accessory attachment and ventilation.
  • Stock: 6-position telescoping stock for customizable length and better ergonomics.
• Performance:
  • Calibre and Recoil: Higher calibre and recoil compared to the INSAS and AK-47, designed for increased lethality.
  • Effective Range: Capable of shooting accurately up to 600 meters.
• Comparative Advantage: The SIG716 offers greater range, lethality, and recoil than both the INSAS (Indian Small Arms System) and the AK-47, which fires a smaller round.

NASA has announced that astronauts Sunita Williams and Barry Wilmore, currently aboard the ISS, will return to Earth in February 2025 aboard a Crew Dragon flight.

AboutCrew Dragon

• Crew Dragon, developed by SpaceX, is one of the two variants of the Dragon 2 spacecraft, designed for space missions.
  • While Crew Dragon is used to ferry astronauts to and from the International Space Station (ISS), the other variant, Cargo Dragon, is used for cargo deliveries.
• Crew Dragon was developed as part of NASA’s Commercial Crew Program to replace the space shuttle program, which was retired in 2011.
• It made its first crewed mission to the ISS in 2020, carrying four American and Japanese astronauts. Since then, Crew Dragon has completed eight crew rotation missions.
• Features
  • Spacecraft Design: Crew Dragon consists of two main components:
  • Reusable Capsule: Houses the crew and is equipped with 16 Draco thrusters for orbital maneuvering. Each thruster produces 90 pounds of force.
  • Expandable Trunk Module: Contains solar panels, heat-removal radiators, cargo space, and stability fins for emergency aborts.
  • Launch and Docking: The spacecraft is launched into orbit atop a SpaceX Falcon 9 rocket, which is reusable. It docks automatically with the ISS using advanced sensors and cameras, including Lidar for precise distance measurements and relative velocity calculations.
  • Return to Earth: When it's time for the crew to return, Crew Dragon undocks from the ISS, and the trunk module is jettisoned and burns up upon re-entry. The capsule performs a de-orbit burn to reduce speed and then re-enters Earth's atmosphere. Four parachutes are deployed to slow its descent, and it finally splashes down in the ocean, where it is recovered by a recovery ship.

Tuberculosis (TB) remains a significant health issue worldwide, with India shouldering a large share of the global burden. Recent progress in TB management includes the diagnosis of 25.1 lakh TB patients in 2023, highlighting improved case-finding efforts. Despite these advancements, challenges persist in TB treatment and detection, necessitating further innovations and effective deployment of new tools.

Treatment Innovations

• Introduction of Shorter Regimens: India is set to adopt the WHO-recommended BPaL/M regimen for drug-resistant TB, which offers a shorter, six-month treatment duration compared to the current regimens that last up to 24 months.
• Benefits of BPaL/M Regimen: The BPaL/M regimen is noted for its higher efficacy, with a success rate of 89% compared to the 68% success rate of existing treatments. It requires fewer tablets per day, minimizing the physical and psychological strain on patients.
• Cost Savings: Implementing the BPaL/M regimen could lead to global savings of about $740 million annually. This new regimen is cost-effective, reducing treatment costs by 40% to 90% compared to current regimens.

Enhancing Diagnosis

• Importance of Efficient Screening: To improve TB diagnosis, health systems must modernize screening methods and leverage health datasets, including GIS mapping, to identify high-risk populations such as those with comorbidities or in vulnerable settings.
• Role of Advanced Technology: Portable X-ray machines with AI-driven tools are recommended for faster and more accurate diagnosis, especially in remote and under-resourced areas. These tools can help detect a significant portion of TB cases that would otherwise be missed.
• Shifting to Rapid Molecular Tests: Expanding the use of rapid molecular tests over traditional microscopy methods is crucial. This shift will enable quicker detection and drug resistance profiling, facilitating timely and appropriate treatment.

Strategic Approach for TB Elimination

• Proactive Case Finding: A proactive approach is necessary to reduce diagnostic delays by targeting multi-disease focused screening drives, especially for populations at higher risk or those without typical TB symptoms.
• Utilization of Data and Technology: Integrating technological advancements and comprehensive health data can significantly enhance TB detection rates and treatment outcomes. This approach will also aid in reducing delays in diagnosis.
• Investment in New Treatments and Diagnostics: Investing in innovative treatments and diagnostic tools is vital for achieving TB elimination. Prioritizing these areas will ensure a healthier future by improving detection and treatment efficacy.

Practice Question

Discuss the impact of adopting the WHO-recommended BPaL/M regimen for drug-resistant tuberculosis in India. How can advancements in diagnostic technology contribute to better TB management and ultimately help in the elimination of tuberculosis in the country?

Recent discussions highlight a gap in India's criminal justice system, particularly in adapting legal frameworks to modern technological and societal changes. Despite significant legislative advancements, the new laws do not adequately address emerging cybercrimes and technological issues, raising concerns about their relevance in the 21st century.

Legacy of Existing Laws

• Historical Foundations: India’s criminal laws, many established in the 19th century, reflect the socio-legal landscape of that era. These laws, shaped by Lord Macaulay, emphasized uniformity and certainty, adapting to the British colonial context.
• Current Relevance: Although many provisions remain unchanged, they are seen as outdated in the context of modern challenges. Crimes like "murder" retain their essence, but the application of laws needs to adapt to contemporary issues beyond traditional definitions.
• Incremental Changes in New Legislation: Recent amendments and new laws have made minimal changes, often incorporating offenses from other legislation without addressing new-age crimes. This has led to a situation where the criminal justice system remains largely unchanged despite evolving societal and technological landscapes.

Technology and Cybercrime

• Emerging Cybercrimes: New forms of crime, such as cyberbullying, online fraud, and data theft, have become prevalent. These issues are not adequately addressed by existing laws, which lack provisions for “data” or “virtual” crimes.
• Inadequate Legal Framework: The Bharatiya Nyaya Sanhita (BNS) does not address cybercrimes effectively, with limited references to digital and electronic aspects. This gap makes it difficult to prosecute modern crimes that involve technology and data.
• Need for Specific Legislation: There is a need for legislation that specifically addresses digital and cyber-related crimes. The lack of a dedicated framework for such crimes leaves many modern offenses unaddressed, impacting the justice system’s effectiveness in dealing with new types of crime.

Legislative Adaptation and Challenges

• Issues with Existing Legal Adaptation: The BNS incorporates some elements from older laws but lacks necessary updates for current issues. For instance, provisions related to economic security and terrorism are included without clear definitions or safeguards, risking misuse.
• Gender and Social Considerations: Certain aspects of the BNS, such as gender-specific provisions for rape and new offenses related to political dissent, highlight gaps in addressing contemporary social issues. This includes the potential misuse of laws against political activists and dissenters.
• Call for Reform: Reflecting on Justice Bhagwati’s observation, there is an urgent need for laws to evolve with societal changes. The absence of comprehensive reforms for technological advancements and modern criminal behavior emphasizes the need for a robust and updated legal framework.

Practice Question

Evaluate the adequacy of recent legislative changes in addressing contemporary criminal justice issues in India. How does the lack of specific provisions for cybercrimes and technological advancements impact the effectiveness of the current legal framework?

In her recent Budget speech, the Finance Minister of India announced a shift for polluting industries such as iron, steel, and aluminium from energy efficiency targets to emissions targets. This change aims to address climate change more effectively by introducing a carbon market system. The shift reflects India's commitment to reducing carbon emissions while balancing development priorities.

PAT vs. Emissions Trading

• PAT Scheme Overview: The Perform, Achieve, and Trade (PAT) scheme focuses on reducing specific energy consumption in energy-intensive industries, where firms can trade energy efficiency credits. It sets standards based on relative energy efficiency, not absolute emissions.
• Emissions Trading Explanation: Emissions trading, or cap and trade, sets absolute emission caps for industries, providing economic incentives for reducing emissions. Unlike PAT, it does not focus on energy efficiency but on meeting specific emission ceilings.
• India’s Transition Plan: India plans to transition from the PAT scheme to an emissions trading system as part of its climate strategy. This shift aims to establish stricter emission controls and align with international climate commitments.

Historical Context and International Commitments

• India’s Decarbonisation Efforts: India has actively worked on decarbonising its sectors through mechanisms like the Clean Development Mechanism and the PAT scheme. These efforts include substantial contributions to the global carbon market.
• Net Zero Emissions Goal: India aims for net zero emissions by 2050, with significant contributions from iron and steel industries, which are major climate change contributors. However, the current progress towards this target remains insufficient.
• Nationally Determined Contributions (NDCs): India’s NDCs include targets to reduce emission intensity and increase non-fossil fuel energy capacity. These targets guide the country's climate actions and the development of its carbon market.

Carbon Market Implementation

• Proposed Carbon Market Mechanisms: The Bureau of Energy Efficiency’s draft blueprint outlines two phases: a voluntary market with a carbon offset mechanism, followed by a mandatory compliance market with carbon credits trading from 2026.
• Sector Inclusion: The domestic carbon market will include major sectors like iron and steel, petrochemicals, chemicals, and aluminium. This inclusion aims to cover significant sources of emissions.
• Balancing Climate and Development: India’s carbon market strategy reflects a balance between addressing climate change and meeting development needs. It aims to integrate climate goals within the broader socioeconomic context of the country.

Practice Question

Analyze the implications of India’s transition from the Perform, Achieve, and Trade (PAT) scheme to a carbon market system for managing emissions in energy-intensive industries. How does this transition align with India’s Nationally Determined Contributions (NDCs) and broader climate goals?"