Q1. Recently, India has decided to join US-led co-operative work programme on carbon market under the Clean Energy Pillar of the US-led Indo Pacific Economic Framework (IPEF). What is carbon market and how India’s clean energy goal align with that of IPEF. Discuss the challenges in implementing renewable energy sources in India. (250 words)
Topic- Carbon markets:
Introduction:
India has decided to participate in one of the four cooperative work programmes initiated under the Clean Energy Pillar of the US-led Indo Pacific Economic Framework (IPEF). Specifically, India will join the cooperative working group on carbon markets, with the Ministry of Power leading this initiative. Clean Energy Pillar within the Strategic Clean Energy Partnership (SCEP) focuses on clean energy innovation, efficiency, and sustainable power systems, contributing to a greener and more resilient future for both the United States and India
Body :
- Carbon markets
- Types of Carbon markets
- About IPEF
- Alignment with India’s goal
- Challenges in implementing renewable energy sources in India
Conclusion :
Despite these challenges, India has immense potential. It aims to become a net-zero emitter of CO2 by 2070 and generate at least half of its power from non-fossil sources by 2030. Leveraging its abundant sunshine, long coastline, and vacant lands, India can rank among the top global producers of wind and solar energy. Initiatives like Ultra Mega Renewable Energy Parks and policy measures contribute to this transition.
UPSC Syllabus Carbon markets:
Why was this question asked?
Q. “Access to affordable, reliable, sustainable and modern energy is the sine qua non to achieve Sustainable Development Goals (SDGs)”. Comment on the progress made in India in this regard. (UPSC Main 2018)
Introduction
India has decided to participate in one of the four cooperative work programmes initiated under the Clean Energy Pillar of the US-led Indo Pacific Economic Framework (IPEF). Specifically, India will join the cooperative working group on carbon markets, with the Ministry of Power leading this initiative. Clean Energy Pillar within the Strategic Clean Energy Partnership (SCEP) focuses on clean energy innovation, efficiency, and sustainable power systems, contributing to a greener and more resilient future for both the United States and India.
Body Status :
Carbon markets
- Carbon markets are trading systems in which carbon credits are sold and bought.
- Companies or individuals can use carbon markets to compensate for their greenhouse gas emissions by purchasing carbon credits from entities that remove or reduce greenhouse gas emissions.
- One tradable carbon credit equals one tonne of carbon dioxide or the equivalent amount of a different greenhouse gas reduced, sequestered or avoided.
- When a credit is used to reduce, sequester, or avoid emissions, it becomes an offset and is no longer tradable.
Types of Carbon markets
- There are broadly two types of carbon markets: compliance and voluntary.
- Compliance markets are created as a result of any national, regional and/or international policy or regulatory requirement.
- Voluntary carbon markets – national and international – refer to the issuance, buying and selling of carbon credits, on a voluntary basis.
About IPEF
- The Indo Pacific Economic Framework (IPEF), launched in May 2022, brings together 14 regional partners, including Australia, Brunei, Fiji, India, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, the US, and Vietnam.
- It aims to establish common rules and standards across four key areas: connectivity and digital trade, resilient supply chains, clean energy, and corruption-free fair trade.
- While India has opted out of the trade pillar, it is also considering two of the other co-operative work programme initiatives, one on clean electricity and the other on use of sustainable aviation fuel but will take a call on whether to join or not after thorough analysis.
Alignment with India’s goal
- India’s focus on developing its own carbon market aligns with global efforts to combat climate change.
- By joining the cooperative work programme on carbon markets, India aims to learn from others’ experiences and contribute to standardized and integrated carbon markets in the future.
- This collaborative effort underscores the importance of international cooperation in addressing environmental challenges and promoting sustainable practices.
- In India, the Ministry of Power, brought in amendments to the carbon credits trading scheme (CCTS) recently which puts it on track towards establishing independent standards for carbon trading and also allows non-obligated entities to generate carbon credits.
- The Bureau of Energy Efficiency is the nodal authority working on it.
Challenges in implementing renewable energy sources in India
- India, as a significant player in the global clean energy transition, faces both challenges and opportunities in its pursuit of sustainable energy.:
- Energy Demand and Transition: India experiences a substantial increase in energy demand due to rapid economic growth. This necessitates a shift away from fossil fuels.
- Investment and Infrastructure: An estimated $9.2 trillion in annual average spending on clean energy assets is needed, with an additional $3.5 trillion required to scale up investments between 2021 and 2050.
- Off-Taker Risk and Financial Intermediaries: Despite progress, India faces obstacles such as off-taker risk (uncertainty in payment from buyers), lack of financial intermediaries, and investor understanding.
- Intermittency and Location-Specific Potential: Renewable energy sources, such as solar and wind, are intermittent. Managing their variability poses challenges.
- Land Acquisition and Utilization: Land acquisition remains a significant challenge. Issues include lack of proper land utilization policies, poorly maintained land records, and obtaining permissions from local bodies.
- Balancing Affordability and Emissions Reduction: India must expand reliable energy access while maintaining affordability for consumers and financial stability for distribution companies (DISCOMs).
Conclusion
Despite these challenges, India has immense potential. It aims to become a net-zero emitter of CO2 by 2070 and generate at least half of its power from non-fossil sources by 2030. Leveraging its abundant sunshine, long coastline, and vacant lands, India can rank among the top global producers of wind and solar energy. Initiatives like Ultra Mega Renewable Energy Parks and policy measures contribute to this transition.
Q2. The World Happiness Index serves as a compass for policymakers, guiding efforts toward a happier and more fulfilled society. Discuss the key outcomes of World Happiness report, 2024 that was released recently. Critically analyse the significance of World happiness Index to India. (250 words)
Topic- World Happiness Index :
Introduction
Over time, happiness has emerged as a vital metric for both nations and corporations to monitor. The World Happiness Report for 2024 was released recently, noting that while the top 10 countries in the list have remained the same since before the Covid-19 pandemic, the United States and Germany have fallen in the rankings, making way for several Eastern European nations to rise on the list. India ranked 126th. The report observed that in India, older age is associated with higher life satisfaction. However, older Indian women reported lower life satisfaction than older men.
Body
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- About World Happiness Report
- Key outcomes of World Happiness report, 2024
- Factors that contribute to happiness in India
- Significance of World happiness Index to India
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Conclusion
World Happiness Index provides a lens through which India can assess its progress, identify areas for improvement, and work toward a happier and more harmonious future. India’s happiness is influenced by a mix of economic, social, and personal factors. Understanding these dynamics can guide policies aimed at enhancing overall well-being. The government should focus on equitable distribution of wealth and focus on increasing the GDP per capita, so as to improve the Happiness Index.
UPSC Syllabus World Happiness Index:
Why was this question asked?
Q. ‘Too little cash, too much politics, leaves UNESCO fighting for life.’ Discuss the statement in the light of US’ withdrawal and its accusation of the cultural body as being ‘anti-Israel bias’. [150 Words] [10 Marks] [2019]
Introduction:
Over time, happiness has emerged as a vital metric for both nations and corporations to monitor. The World Happiness Report for 2024 was released recently, noting that while the top 10 countries in the list have remained the same since before the Covid-19 pandemic, the United States and Germany have fallen in the rankings, making way for several Eastern European nations to rise on the list. India ranked 126th. The report observed that in India, older age is associated with higher life satisfaction. However, older Indian women reported lower life satisfaction than older men.
Body Status
About World Happiness Report
- From 2024, the World Happiness Report is a publication of the Wellbeing Research Centre at the University of Oxford.
- Until then, the report was a publication of the Sustainable Development Solutions Network, a global initiative of the United Nations.
- SDSN promotes integrated approaches to implement the Sustainable Development Goals (SDGs) and the Paris Agreement on Climate Change, through education, research, policy analysis, and global cooperation.
- The report primarily uses data from the Gallup World Poll.
- It takes into account six variables — GDP per capita, healthy life expectancy, having someone to count on, freedom to make life choices, generosity, and freedom from corruption.
Key outcomes of World Happiness report, 2024
- Life Satisfaction Among Older Adults:
- The report highlights that older men in India express higher life satisfaction than older women.
- Interestingly, older women still report higher life satisfaction than their male counterparts.
- Refuting Stereotypes:
- The report challenges the notion that high life satisfaction exists only in higher-income nations.
- Factors Influencing Happiness:
- Marital status, social engagement, and physical health play crucial roles in determining life satisfaction among older Indians.
- These factors underscore the importance of holistic well-being beyond economic indicators.
- Global Context:
- While India’s ranking may not be at the top, it reflects the nation’s unique challenges and opportunities.
- The World Happiness Index serves as a compass for policymakers, guiding efforts toward a happier and more fulfilled society.
Factors that contribute to happiness in India
- Factors such as health, employment, living conditions, and spiritual well-being influence Indians’ happiness.
- Wellbeing is one major measure in the Happiness Index as reported by the World Happiness Report.
- Factors such as GDP per capita, social support, and life expectancy play a role in determining happiness.
- Wellbeing and Happiness are becoming an important measure reflecting the true growth of any economy.
Significance of World happiness Index to India
- In the World Happiness Index 2024, India is ranked 126th, which remains consistent with the previous year’s ranking.
- While India’s position is not among the top-ranked countries, understanding the factors contributing to this ranking is essential.
- India’s ranking demonstrates that life satisfaction can be significant even in a diverse and economically varied context.
- India can use these findings to inform policies aimed at enhancing overall happiness and quality of life.
- Addressing gender disparities and promoting social connections can contribute to improved well-being.
Conclusion
World Happiness Index provides a lens through which India can assess its progress, identify areas for improvement, and work toward a happier and more harmonious future. India’s happiness is influenced by a mix of economic, social, and personal factors. Understanding these dynamics can guide policies aimed at enhancing overall well-being. The government should focus on equitable distribution of wealth and focus on increasing the GDP per capita, so as to improve the Happiness Index.