UPSC CARE Mains Practice 17th September 2025
Topic – Global heatwaves
Q1. The 2025 Nature study systematically attributed hundreds of global heatwaves to the emissions of “carbon majors”. In this context, analyse the scientific findings of the study and discuss their implications for the principle of climate justice, with special reference to India. (15 marks, 250 words)
Introduction
A recent study published in Nature (2025) has directly linked carbon emissions from fossil fuel companies to 213 heatwaves between 2000–2023. The research shows that corporate emissions have contributed nearly half of the increase in heatwave intensity since pre-industrial times, making many lethal heatwaves far more likely. These findings strengthen the case for climate accountability and reparations.
Body
- Key Findings of the Study
- Human and Ecological Consequences
- Legal and Climate Justice Dimensions
- Implications for Global Climate Governance
- India’s Context and Challenges
Conclusion
The new study shows that fossil fuel emissions can be directly linked to deadly heatwaves, making accountability traceable. For global governance, it marks a turning point in climate litigation, reparations, and corporate responsibility. For India, facing rising heat-related deaths and economic stress, the findings reinforce the urgency of climate justice, robust adaptation measures, and stronger global liability frameworks.
UPSC Syllabus
Climate change
Why was this question asked?
Q. Discuss global warming and mention its effects on the global climate. Explain the control measures to bring down the level of greenhouse gases which cause global warming, in the light of the Kyoto Protocol, 1997. [2022]
Introduction
A recent study published in Nature (2025) has directly linked carbon emissions from fossil fuel companies to 213 heatwaves between 2000–2023. The research shows that corporate emissions have contributed nearly half of the increase in heatwave intensity since pre-industrial times, making many lethal heatwaves far more likely. These findings strengthen the case for climate accountability and reparations.
Body
Key Findings of the Study
- The study analysed 213 heatwaves worldwide between 2000 and 2023.
- Heatwaves between 2000–2009 were 20 times more likely, and between 2010–2019 were 200 times more likely due to global warming.
- Out of these events, 55 heatwaves became at least 10,000 times more likely because of rising temperatures.
- Heatwaves in 2000–2009 were 1.4°C hotter, and in 2010–2019, 1.7°C hotter due to climate change.
- Fossil fuel majors like ExxonMobil, Chevron, and Saudi Aramco were found directly responsible for making several heatwaves significantly more intense.
Human and Ecological Consequences
- The 2003 European heatwave killed around 30,000 people; the 2021 Pacific Northwest heat dome caused hundreds of deaths.
- In India, the 2023 Balliya heatwave in Uttar Pradesh killed 68 people, exemplifying local vulnerabilities.
- According to WMO, nearly 4,89,000 people die annually from heat exposure, with a rising share linked to climate change–induced heatwaves.
- Heatwaves also stress agriculture, power supply, and ecosystems, compounding economic and social losses.
Legal and Climate Justice Dimensions
- The study offers scientific evidence for courts to hold polluting companies accountable.
- The International Court of Justice (ICJ) recently ruled that countries and companies may be held responsible for climate damages, opening avenues for reparations.
- Campaigns like Make Polluters Pay emphasize that fossil fuel producers’ emissions are not abstract but cause identifiable human suffering.
Implications for Global Climate Governance
- The study strengthens the argument for loss and damage financing under UNFCCC and COP negotiations.
- It highlights the need for corporate liability frameworks, beyond state-level climate responsibility.
- Attribution science could reshape international law, creating pressure on carbon majors to compensate vulnerable communities.
India’s Context and Challenges
- India is among the most heatwave-prone countries, with rising urban heat island effects and rural livelihood losses.
- Extreme heat threatens food security, labour productivity, and public health, with disproportionate impacts on the poor.
- India advocates for climate justice, emphasizing historical responsibility of developed nations and carbon majors.
- Evidence from such studies strengthens India’s case for adaptation finance, technology transfer, and global liability mechanisms.
Conclusion
The new study shows that fossil fuel emissions can be directly linked to deadly heatwaves, making accountability traceable. For global governance, it marks a turning point in climate litigation, reparations, and corporate responsibility. For India, facing rising heat-related deaths and economic stress, the findings reinforce the urgency of climate justice, robust adaptation measures, and stronger global liability frameworks.
Topic – Cryptocurrency
Q 2. Stablecoins promise stability in a volatile crypto world, but their very growth may destabilise financial systems.” Explain the nature of stablecoins and how they differ from other cryptocurrencies. Critically examine the risks flagged by regulators, with reference to India. (15 marks, 250 words)
Introduction
Stablecoins are a class of cryptocurrencies designed to maintain stable value by being pegged to fiat currencies, commodities, or algorithms. Unlike highly volatile tokens like Bitcoin, stablecoins are meant for reliability in transactions, remittances, and value storage. The Bank of England has recently imposed transaction limits on stablecoins, citing risks to financial stability and systemic security.
Body
- What are Stablecoins?
- How Stablecoins Differ from Other Cryptocurrencies
- Key Risks Flagged by Regulators
- Global Responses to Stablecoin Risks
- India’s Perspective and Impact
Conclusion
Stablecoins combine the speed and innovation of digital assets with the stability of fiat money, making them attractive for global finance. At the same time, unregulated expansion of stablecoins could destabilize banking systems and weaken monetary policy. For India, the way forward lies in adopting a balanced regulatory framework that protects financial stability, supports the Digital Rupee, and enforces strict compliance measures to prevent misuse.
Banking in India
Why was this question asked?
Q. How would the recent phenomena of protectionism and currency manipulations in world trade affect macroeconomic stability of India? (2018)
Introduction
Stablecoins are a class of cryptocurrencies designed to maintain stable value by being pegged to fiat currencies, commodities, or algorithms. Unlike highly volatile tokens like Bitcoin, stablecoins are meant for reliability in transactions, remittances, and value storage. The Bank of England has recently imposed transaction limits on stablecoins, citing risks to financial stability and systemic security.
Body
What are Stablecoins?
- Stablecoins are digital currencies pegged to a reference asset such as the US dollar, gold, or other cryptocurrencies.
- They include fiat-backed, commodity-backed, crypto-backed, and algorithmic stablecoins.
- Their primary function is to enable faster and cheaper transactions compared to traditional banking channels.
How Stablecoins Differ from Other Cryptocurrencies
- Stablecoins maintain price stability, whereas most cryptocurrencies are subject to extreme volatility.
- Stablecoins are mainly used for cross-border payments, remittances, and as a store of value, while Bitcoin and Ethereum are used for speculation or investment.
- Stablecoins are backed by tangible reserves such as fiat or assets, whereas other cryptocurrencies derive value only from demand and supply.
- Stablecoins are more suitable for financial transactions, unlike traditional cryptos which lack transactional stability.
Key Risks Flagged by Regulators
- Stablecoins create the risk of a “run,” where sudden mass withdrawals can destabilize the market, as seen in the TerraUSD crash of 2022.
- Stablecoins may cause deposit flight from commercial banks, reducing their lending capacity and affecting credit supply.
- Stablecoins, if adopted at scale, may undermine the authority of central banks and threaten monetary sovereignty.
- Stablecoins, due to their global and borderless nature, increase risks of money laundering, terror financing, and regulatory evasion.
Global Responses to Stablecoin Risks
- The Bank of England has imposed ownership and transaction limits to mitigate systemic risks.
- The United States has introduced the GENIUS Act mandating 1:1 reserves, licensed issuers, and AML/CFT compliance.
- The European Union has passed the MiCA regulation to oversee e-money tokens and asset-referenced tokens.
- Hong Kong has enacted the Stablecoin Ordinance requiring licenses, high-quality reserve assets, audits, and disclosure norms.
India’s Perspective and Impact
- India has not recognized private cryptocurrencies, and the Reserve Bank of India maintains a cautious stance.
- India has launched the Digital Rupee (CBDC) in pilot mode, which may face competition from stablecoins if not regulated.
- Stablecoins could drain deposits from Indian banks, affecting credit creation and financial stability.
- Stablecoins pose AML/CFT risks for India, particularly in cross-border transactions, given its FATF commitments.
- India is likely to follow a regulatory path that mandates reserve backing, KYC/AML compliance, and prioritizes the Digital Rupee while restricting private stablecoins.
Conclusion
Stablecoins combine the speed and innovation of digital assets with the stability of fiat money, making them attractive for global finance. At the same time, unregulated expansion of stablecoins could destabilize banking systems and weaken monetary policy. For India, the way forward lies in adopting a balanced regulatory framework that protects financial stability, supports the Digital Rupee, and enforces strict compliance measures to prevent misuse.
