Daily Current Affairs

November 28, 2025

Current Affairs

India to Submit Updated NDC & First Biennial Transparency Report by December 2025

Context: At COP30 in Belém, India announced that it will submit both its updated Nationally Determined Contribution (NDC) for 2035 and its first Biennial Transparency Report (BTR) by December 2025.

Globally, Parties are required to submit:

  • First BTRs in 2024
  • Third NDC cycle (2031–2035) in 2025

Under the Paris Agreement, there are no punitive penalties for delayed submissions, as the treaty relies on a non-adversarial, facilitative compliance mechanism.

Nationally Determined Contributions (NDCs)

NDCs are non-binding national climate action plans submitted by UNFCCC Parties.
They outline mitigation and adaptation commitments as part of global efforts to limit warming.

Legal Basis

  • Article 4 of the Paris Agreement mandates Parties to:
    • Prepare, communicate, and maintain successive NDCs
    • Implement domestic measures to achieve them
    • Submit updated NDCs every five years, aligned with the Global Stocktake (GST)

Submission Cycles

  • 1st NDC: Submitted in 2015–16 (targets until 2025/2030)
  • 2nd NDC: Due in 2020 (India submitted updated 2030 NDC in Aug 2022)
  • 3rd NDC: To cover 2031–2035, due in 2025

India’s NDC: Progress & Status

India’s updated 2030 NDC (submitted August 2022) formalised targets announced at COP26.
Nodal Ministry: MoEFCC; Final Approval: Union Cabinet.

TargetStatus
Reduce emissions intensity of GDP by 45% from 2005 levels by 2030On track (India achieved 36% by 2020)
Achieve 50% installed power capacity from non-fossil sources by 2030Achieved early (crossed 50% by June 2025)
Create 2.5–3 billion tCO₂-eq additional carbon sink by 2030On track (2.29 billion tCO₂-eq added between 2005–2021)

India's performance reflects strong renewable expansion, energy-efficiency gains, and sustained afforestation efforts.

Biennial Transparency Report (BTR)

The Biennial Transparency Report is a mandatory document every Party must submit every two years.
It forms part of the Enhanced Transparency Framework (ETF) and replaces earlier BRs and BURs.

Flexibility

LDCs and SIDS may submit at their discretion.

Purpose

  • Build mutual trust among Parties
  • Provide transparent, standardised reporting
  • Track NDC progress, implementation measures, and climate finance flows
  • Supply inputs for the Global Stocktake (GST)

Components of BTR

Mandatory

  • National GHG Inventory (NIR)
  • National Inventory Arrangements
  • Information on Flexibility (for developing countries)
  • Tracking NDC progress
  • Structured Summary of NDC progress
  • Information on Climate Finance & Support (for developed Parties)
  • Support Needed & Received
  • Technical Expert Review (TER) & improvement areas

Optional

  • Loss & Damage
  • Adaptation actions and metrics
  • Mitigation co-benefits
  • Technology/capacity-building support
  • Voluntary Article 13.8 information
  • Additional policies & measures

Royalty Rationalisation for Critical Minerals

Context: The Union Cabinet has approved revised ad valorem royalty rates for four critical minerals — graphite, caesium, rubidium, and zirconium — with the aim of strengthening domestic mining, improving auction success, and reducing India’s dependence on imports for clean-energy supply chains.
The reform aligns with India’s broader strategy to secure critical mineral value chains essential for EVs, semiconductors, batteries, renewable energy technologies, and defence manufacturing.

Revised Royalty Rates

  • Caesium: 2% of Average Sale Price (ASP) on metal content in ore
  • Rubidium: 2% of ASP on metal content in ore
  • Zirconium: 1% of ASP on metal content in ore
  • Graphite:
    • 80% fixed carbon → 2% of ASP
    • <80% fixed carbon → 4% of ASP

The shift from fixed-rate royalty to ad valorem ensures flexibility with market fluctuations, improving the viability of low-grade mineral extraction.

Why India Needed Royalty Reform

1. High Import Dependence

India is 100% import-dependent for lithium, cobalt, nickel, and rare earth elements (REEs).
It imports 60% of graphite, a key component of anodes used in EV batteries.

2. Low Auction Success Rates

Since 2023, only 34 out of 81 critical mineral blocks (42%) found bidders — high royalty rates and pricing ambiguity made projects commercially unattractive.

3. Surging Green-Tech Demand

EV battery requirements are projected to rise 5–6 times by 2030, significantly increasing demand for graphite, zirconium, and REEs.

4. Unviable Mining under Old Rates

Fixed per-tonne royalties hurt miners during global price declines, making low-grade extraction unprofitable.

5. China-Dominated Supply Chains

China processes ~90% of the world’s REEs.
Its export controls have demonstrated the vulnerability of global clean-tech supply chains.

Structural Bottlenecks in India’s Critical Mineral Ecosystem

  • Weak Exploration Capacity: <0.9% of global mineral exploration spending; far lower than Australia (~13%) or Canada (~15%).
  • Limited Processing Capability: India processes <2% of global REEs; refined copper output is just 3% globally.
  • High Capital & Tech Gaps: Private exploration contributes <10% of India’s total spend (vs >60% in mature mining economies).
  • Skilled Manpower Shortage: <20 geologists per million population (Australia: 140+).
  • Fragmented Policy Environment: Regulatory delays and unclear pricing deter bidders.

Way Forward

  • Boost Exploration: Strengthen the National Mineral Exploration Trust (NMET); emulate Australia’s drilling reimbursement model.
  • Domestic Processing: Introduce a PLI-style scheme for refining and processing critical minerals, similar to China’s refining clusters.
  • Fast-Track Clearances: Create a unified portal integrating environment, forest, and concession approvals (Canada’s “one-window” model).
  • Tech & Skills Partnerships: Collaborate with US, Australia, and Japan for mineral processing technologies and workforce training.
  • Strategic Stockpiles: Establish reserves of lithium, cobalt, and REEs, similar to Japan’s JOGMEC model, to cushion supply disruptions.

About Royalty

  • Definition: Statutory payment made by miners to the government (the sovereign owner of mineral resources).
  • Purpose: Ensures states receive fair value while enabling responsible extraction.
  • Legal Basis: Governed by the Second Schedule of the MMDR Act, 1957.
  • Types of Royalty:
    • Unit-based (per tonne)
    • Ad valorem (% of sale value) – preferred for critical minerals
    • Profit-based (share of net earnings)