GS Paper 3

Understanding Waste to Energy Plants

Context - The Kerala government recently announced the State’s first waste to energy project in Kozhikode. The planned facility is expected to be built in two years and generate about 6 MW of power.

What is it? 

  • Waste to energy projects use nonrecyclable dry waste to generate electricity
  • Waste-to-Energy is a technologically advanced means of waste disposal that is widely recognized for reducing greenhouse gases—particularly methane—by eliminating emissions from landfills.


Why Waste to Energy?

  • High CO2 emissions: Almost all the carbon content in the waste that is burned for WtE is emitted as carbon dioxide, which is one of the most notable greenhouse gases.
  • Urban waste generation ~ 62 million tonnes every year. Municipal solid waste to energy market is growing at ~ 9.5%. 
  • FAO estimates that more than 40% of food produced is wasted in India. Organic waste has significant portion in overall waste generation in industrial/urban/ agricultural sector and therefore it can be used for energy generation.
  • Avoids landfilling.
  • Resource recovery  : Another benefit of waste-to-energy over landfilling is the opportunity to recover valuable resources such as metals post-incineration.
  • Renewable source of energy - The total estimated energy generation potential from urban and industrial organic waste in India is approximately 5690 MW.
  • New business opportunity with appropriate technology and government incentive. 
  • International expansion possibilities for Indian companies, especially expansion into other Asian countries.
  • Success in municipal solid waste management will lead to opportunities in sewage waste, industrial waste and hazardous waste by development of new technology. 

According to the Ministry of New and Renewable Energy, there exists a potential of about:1700 MW from urban waste 1300 MW from industrial waste.

As per Centre for Science and Environment nearly half of India’s waste-to-energy (WTE) plants are defunct.

Problems of WTE Plants

  • Inefficiency – Municipal solid waste (MSW) in India
    • Has low calorific value and high moisture content. 
    • Are unsegregated having high inert content. 
  • Pollution –  Carcinogenic chemicals are released due to chlorinated hydrocarbons like PVC.
  • High cost of electricity generated by waste. WTE ~ Rs 7/kWh; coal ~ Rs 3-4 per kWh
  • Technologies like bio-methanation are imported.
  • Protest and criticism – e.g: against the Okhla WTE plant in Delhi for polluting the environment.

Way Forward 

  • Compliance of Municipal Solid Wastes (Management & Handling) Rules, 2000– to ensure segregated solid waste. 
  • Compliance of Waste Management rules 2022 to phase out Polyvinyl Chloride (PVC) 
  • Strengthening Municipal Corporations – financial and human resource. 
  • PPP model for WTE plants as recommended by Task force on WtE headed by K Kasturirangan.
  • Spreading awareness - Protection and improvement of our environment as envisaged in Article 51 A(g) of our Constitution.

14 guidelines for Human-Wildlife Conflict Mitigation

More about news: Recently, Union Minister for Environment, Forest and Climate Change released 14 guidelines to address Human-Wildlife Conflict (HWC), which aim to facilitate a common understanding among key stakeholders, on what constitutes effective and efficient mitigation of HWC in India. 

  • The guidelines are advisory in nature, and will facilitate in further development of site-specific HWC mitigation measures. 
  • These guidelines are developed under the Indo-German cooperation project.
  • A review of these guidelines is planned to take place every five years from 2023 onwards.

The 14 guidelines released include

10 species-specific guidelines

Guidelines for Mitigating Human -Elephant, -Gaur, -Leopard, -Snake, -Crocodile, -Rhesus Macaque, -Wild Pig, -Bear, -Blue Bull and -Blackbuck Conflict; and

4 guidelines on cross-cutting issues

  • Guidelines for Cooperation between the Forest and Media sector in India: Towards effective communication on Human-Wildlife Conflict Mitigation
  • Occupational Health and Safety in the Context of Human–Wildlife Conflict Mitigation
  • Crowd Management in Human-Wildlife Conflict Related Situations
  • Addressing Health Emergencies and Potential Health Risks Arising Out of Human—Wildlife Conflict Situations: Taking a One Health Approach.

More about guidelines

  • The development and intended implementation of these guidelines is driven by a harmonious-coexistence approach to ensure that both humans and wild animals.
  • These guidelines are strongly driven by field experiences, and take into consideration the existing guidelines and advisories issued by various agencies and state forest departments, as well as their good practices, and build on them.
  • The guidelines provide a framework to take a holistic approach, viz., not only addressing the emergency situations arising due to immediate HWC situations but also addressing the drivers and pressures that lead to HWC, guidance on establishing and managing prevention methods, and reducing the impact of conflict both on humans and wild animals.
  • The preparation of the guidelines followed a participatory, inclusive, and integrated approach involving key relevant stakeholders and sectors including agriculture, veterinary, disaster management, district administration, rural development and Panchayati Raj Institutions, NGOs, and media. 
  • This set of guidelines is not a static document; rather, it is a living document, where feedback from field practitioners and other wildlife experts is planned to be analysed to assess the specific elements and sections that need to undergo changes. 

International Day of Forests

  • The United Nations General Assembly proclaimed 21 March the International Day of Forests in 2012 to celebrate and raise awareness of the importance of all types of forests. 
  • The organizers are the United Nations Forum on Forests and the Food and Agriculture Organization of the United Nations (FAO), in collaboration with Governments, the Collaborative Partnership on Forests and other relevant organizations in the field.
  • The theme for this year’s International Forest Day, “Forests and Health”, highlights the ecosystem services provided by forests like purification of water and air, carbon capture to fight climate change, and supply of life-saving medicines.

3 States chip in to stop illegal sand mining in Chambal sanctuary Conservation

Context: Three States have commenced joint action to stop illegal sand mining in National Chambal Sanctaury.

About National Chambal Sanctuary

  • National Chambal Sanctuary, also called the National Chambal Gharial Wildlife Sanctuary.
  • It is located on the Chambal River near the tripoint of Rajasthan, Madhya Pradesh and Uttar Pradesh.
  • It was first declared in Madhya Pradesh in 1978, and now constitutes a long narrow eco-reserve co-administered by the three states.
  • It is listed as an important bird area (IBA) and is a proposed Ramsar site.
  • Fauna: It is a protected area for the protection of the Critically Endangered gharial, the red-crowned roof turtle and the Endangered Ganges river dolphin. Other large threatened inhabitants of the sanctuary include mugger crocodile, smooth-coated otter, striped hyena and Indian wolf. Chambal supports 8 of the 26 rare turtle species found in India, including Indian narrow-headed softshell turtle, three-striped roof turtle and crowned river turtle. 
  • Flora: Common plants in the sanctuary include khair, palash, Indian elm tree, Indian plum etc. It is part of the Khathiar-Gir dry deciduous forests ecoregion.

About Chambal River

  • It rises in the Vindhya Range just south of Mhow, western Madhya Pradesh state. 
  • It is a second biggest tributary of the Yamuna River in Central and Northern India, and thus forms part of the drainage system of the Ganges.
  • The river flows through Madhya Pradesh, Rajasthan and Uttar Pradesh. It also forms part of the Rajasthan-Madhya Pradesh boundary.
  • The main tributaries of Chambal include the Banas and Mej rivers on the left and the Parbati, Kali Sindh and Shipra rivers on the right. 
  • The Chambal’s lower course is lined by belt of badland gullies resulting from accelerated soil erosion.

The High Seas Treaty

Context: Two weeks ago, negotiators from almost every country in the world finalised a new global treaty meant for the conservation and sustainable use of biological resources in the high seas.

Once the treaty becomes international law after ratification by member countries, it will regulate all human activities in the high seas with the objective of ensuring that ocean resources, including biodiversity, are utilised in a sustainable manner, and their benefits are shared equitably among countries.

About High Seas

  • High seas are open ocean areas that are outside the jurisdiction of any country — the reason why the treaty is commonly known as the agreement on “biodiversity beyond national jurisdictions(BBNJ)”.
  • According to the Deep Ocean Stewardship Initiative (DOSI), a network of global experts on oceans, high seas comprise 64 per cent of the ocean surface, and about 43 per cent of the Earth. 

Other legal framework to govern the activities in the oceans

  • United Nations Convention on the Laws of the Sea (UNCLOS) a 1982 agreement defined the rights and duties of countries in the oceans, the extent of ocean areas over which countries could claim sovereignty, and the legal status of marine resources. 
  • It also specified a set of general rules for a range of activities in the oceans including navigation, scientific research, and deep-sea mining.

About High Seas Treaty

  • It will work as an implementation agreement under the UNCLOS, much like the Paris Agreement works under the UN Framework Convention on Climate Change (UNFCCC).
  • The treaty established exclusive economic zones (EEZ), ocean areas up to 200 nautical miles (370 km) from the coastline, where a country would have exclusive rights overall economic resources such as fish, oil, minerals, and gas. 
  • The high seas are the areas beyond the EEZ of any country.

The High Seas Treaty has four main objectives

  • Demarcation of marine protected areas (MPAs), rather like there are protected forests or wildlife areas
  • Sustainable use of marine genetic resources and equitable sharing of benefits arising from them
  • Initiation of the practice of environmental impact assessments for all major activities in the oceans
  • Capacity building and technology transfer

 Marine Protected Areas(MPAs): Activities in these areas will be highly regulated, and conservation efforts similar to what happens in forest or wildlife zones, will be undertaken. 

About Marine Protected Areas(MPAs)
MPAs are where ocean systems, including biodiversity, are under stress, either due to human activities or climate change. These can be called the national parks or wildlife reserves of the oceans. Only about 1.44 per cent of high seas are currently protected, according to the International Union for Conservation of Nature (IUCN).

Marine Genetic Resources: Oceans host very diverse life forms, many of which can be useful for human beings in areas like drug development. Genetic information from these organisms is already being extracted, and their benefits are being investigated. The treaty seeks to ensure that any benefits arising out of such efforts, including monetary gains, are free from strong intellectual property rights controls, and are equitably shared amongst all. The knowledge generated from such expeditions are also supposed to remain openly accessible to all.

Environment Impact Assessments: Under the provisions of the new treaty, commercial or other activities that can have significant impact on the marine ecosystem, or can cause large-scale pollution in the oceans, would require an environmental impact assessment to be done, and the results of this exercise have to be shared with the international community.

Capacity Building and Technology Transfer: The treaty lays a lot of emphasis on this, mainly because a large number of countries, especially small island states and landlocked nations, do not have the resources or the expertise to meaningfully participate in the conservation efforts, or to take benefits from the useful exploitation of marine resources. At the same time, the obligations put on them by the Treaty, to carry out environmental impact assessments for example, can be an additional burden.

How will the High Seas Treaty protect marine life?

  • The key measure is put the world's international waters into protected areas (MPAs) - which will help achieve the global goal of protecting 30% of the world's oceans by 2030, which was agreed at the 2022 UN biodiversity conference.
  • Activity can occur in these areas but only "provided it is consistent with the conservation objectives" - meaning it doesn't damage marine life. This could mean limiting fishing activities, shipping routes and exploration activities like deep-sea mining.

Draw backs of the Treaty

  • The treaty falls short of addressing some key threats that affect ocean biodiversity, notably fishing and industrial expansion, such as deep-seabed mining. 
  • Access- and benefit-sharing has always been a highly negotiated principle within any treaty, and this treaty requires fair and equitable sharing of genetic resources. However, it stops short of discussing the sharing of any other type of resource.
  • The treaty failed to address is to identify a suitable international enforcement agency that could monitor and enforce the regulations laid out by the treaty. Such an enforcement body would also require a financial commitment – another issue that has not been negotiated or included.
  • The process of ratification is not expected to be easy. It took UNCLOS 12 years to become international law because the necessary number of ratifications was not reached. The Kyoto Protocol, the precursor to the Paris Agreement, also took eight years to come into effect.

Clearly, the new ‘High Seas Treaty’ is just the beginning of a long and tedious process of regulating various aspects of human use in international oceans. Despite these challenges, there is growing momentum behind the treaty.

When will the treaty take effect?

  • Countries will need to meet again to formally adopt the agreement and then have plenty of work to do before the treaty can be implemented.
  • It will only enter” into force" once 60 countries have signed up and legally passed the legislation in their own countries.

India joins AIM for Climate (AIM4C) Initiative

Context: India has joined AIM for Climate Initiative.

About AIM for Climate

  • AIM for Climate stands for Agriculture Innovation Mission for Climate launched at COP 26 of UNFCCC at Glasgow.
  • It is a joint initiative of USA and UAE to address climate change and global hunger by uniting participants to significantly increase investment in and providing other support for climate smart agriculture and food systems innovation over five years (2021-2025).

Objectives of AIM for Climate

  • Demonstrate collective commitment to significantly increase investment in agricultural innovation for climate smart agriculture and food systems over five years (2021-25).
  • Support frameworks and structures to enable technical discussions and promotion of expertise, knowledge and priorities across international and national levels of innovation to amplify the impact of participants' investments.
  • Establish appropriate structures for exchanges between Ministers and chief scientists as key focal points and champions for cooperation on climate related agricultural innovation. 

Innovation Sprints

  • An innovation sprint is an increase in aggregate self-financed investment from NGOs partners to achieve an outcome/output in agriculture innovation and for climate smart agriculture and food systems to be completed in an expedited timeframe. 
  • Focus areas of AIM for Climate Innovation sprints are: (i) Smallholder Farmers in Low & Middle Income Countries (ii) Methane Reduction (iii) Emerging Technologies (iv) Agroecological Research. 

Members of AIM for Climate

There are three avenues for participation in AIM for Climate coalition.

  1. Government partner: Governments who announce an increase in aggregate public investment in agricultural innovation for climate smart agriculture and food systems over the next 5 years. 45 countries have joined as Government partners. India is also a government partner in this initiative.
  2. Innovation sprint partner: Non-government participants who announce an increase in aggregate self-financed investment in agricultural innovation for climate-smart agriculture and food systems over the next five years (2021-2025) to enable investment for bold ideas to foster innovation in an expedited timeframe.
  3. Knowledge partner: They are non-government participants who intend to participate in activities of AIM for Climate and announce to amplify agricultural innovation through: insight sharing, innovation collaboration, coordination, demonstration and deployment etc.

Chandrayaan 3 likely to be launched in mid 2023: ISRO

Context: As per Indian Space Research Organisation (ISRO), the launch of Chandrayaan-3, India’s third lunar mission, and the first solar mission Aditya L1 will possibly happen by the middle of 2023. 

Chandrayaan-3

  • Chandrayaan-3 is a follow-on mission to Chandrayaan-2 to demonstrate end-to-end capability in safe landing and roving on the lunar surface. 
  • It consists of Lander and Rover configuration. It will be launched by Launch Vehicle Mark-3 (LVM 3) launch vehicle from SDSC, Sriharikota.
  • The propulsion module will carry the lander and rover configuration till the 100 km lunar orbit. 

Objectives

  • To demonstrate a Safe and Soft Landing on a specified lunar site 
  • To demonstrate Rover roving on the moon which will carry out in-situ chemical analysis of the lunar surface during the course of its mobility 
  • To conduct in-situ scientific experiments
chandrayaan 3 india 1 650ab4870b36e

Several advanced technologies in Chandrayaan

  • Propulsion module has Spectro-polarimetry of Habitable Planet Earth (SHAPE) payload to study the spectral and Polari metric measurements of Earth from the lunar orbit.
  • Lander payloads:
    • Chandra’s Surface Thermophysical Experiment (ChaSTE) to measure the thermal conductivity and temperature
    • Instrument for Lunar Seismic Activity (ILSA) for measuring the seismicity around the landing site
    • Langmuir Probe (LP) to estimate the plasma density and its variations.
    • Laser Retroreflector Array from NASA to understand the dynamics of Moon system.
    • Radio Anatomy of Moon Bound Hypersensitive ionosphere and Atmosphere (RAMBHA)
  • Rover payloads:
    • Alpha Particle X-ray Spectrometer (APXS) and Laser Induced Breakdown Spectroscope (LIBS) for deriving the elemental composition in the vicinity of the landing site. 

Chandrayaan 1 and Chandrayaan 2

CHANDRAYAAN 1CHANDRAYAAN 2
1st Lunar mission of IndiaFloow-up mission, 1st interplanetary mission
No landing of the surface of the moonA lander will make a soft landing
the net weight of the spacecraft -1380kgs.the spacecraft weights approx 3850
Launched by PSLVLaunched by GSLV Mk III
Carried a range of scientific equipment, both Indian and Internation; Mini-Synthetic Aperture Radar (Mini-SAR) found water-ice deposits in craters on the far side of the moon.
It carried five ISRO payloads and six payloads from other space agencies including NASA, ESA, and the Bulgarian Aerospace Agency.
It has three modules namely orbiter, Lander (Vikram) and Rover (Pragyan). The main aim is to study the moon's mineral and chemical composition, topology and seismology.
It carried 14 payloads; 13 Indian and 1 from NASA.

What is the IPCC synthesis report and what does it say?

Context: Climate change is a threat to human wellbeing and planetary health and there is a rapidly closing window of opportunity to secure a liveable and sustainable future for all, the Intergovernmental Panel on Climate Change (IPCC) said in a report. 

The current report synthesises findings from three working groups. It also integrates evidence from three special reports during the sixth assessment cycle.

Key observations

  • Human activities, principally through emissions of greenhouse gases, have unequivocally caused global warming, with global surface temperature reaching 1.1°C above 1850–1900 in 2011–2020. 
  • Global greenhouse gas emissions have continued to increase.
  • Adaptation planning and implementation has progressed across all sectors and regions, with documented benefits and varying effectiveness. Despite progress, adaptation gaps exist, and will continue to grow at current rates of implementation
  • Global GHG emissions in 2030 implied by nationally determined contributions (NDCs) announced by October 2021 make it likely that warming will exceed 1.5°C during the 21st century and make it harder to limit warming below 2°C.
  • Climatic and non-climatic risks will increasingly interact, creating compound and cascading risks that are more complex and difficult to manage.
  • The report, brings in to sharp focus the losses and damages we are already experiencing and will continue into the future, hitting the most vulnerable people and ecosystems especially hard.
Global greenhouse gas emissions have continued to increase IPCC

Implications for India

  • India’s priority should be to minimise loss and damage in terms of lives, livelihood and biodiversity, and accelerate equitable action and adaptation. 
  • It proposes an approach emphasising ‘climate resilient development’.
  • As a developing country, India can lower its per capita emissions through energy efficiency policies already being implemented in almost every sector.
  • It can also decarbonise the energy sector by using cleaner options like solar and renewable energy, she added.
Implications for India IPCC

About the IPCC

  • The Intergovernmental Panel on Climate Change (IPCC) is the United Nations body for assessing the science related to climate change. 
  • It was established by the United Nations Environmental Programme (UNEP) and the World Meteorological Organization (WMO) in 1988 to provide political leaders with periodic scientific assessments about climate change. 
  • The IPCC has 195 member states that are members of the UN or WMO.
  • The IPCC has three working groups:
    • Working Group I, which addresses with the physical science of climate change; 
    • Working Group II, which focuses on the impact, adaptation and vulnerability associated with climate change; and 
    • Working Group III, which deals with the mitigation of climate change. 
  • It also has a Task Force on Greenhouse Gas Inventories that develops methodologies for measuring emissions and removals.
  • IPCC assessments provide governments, at all levels, with scientific information they can use to develop climate policies. 
  • The UN panel does not itself undertake scientific assessments but only evaluates the state of scientific evidence on various aspects of climate change.

About the Sixth Assessment Cycle

The IPCC publishes comprehensive scientific assessments every six to seven years. The previous one, the Fifth Assessment Report, was completed in 2014 and provided the main scientific input to The Paris Agreement.

At its 41nd Session in February 2015, the IPCC decided to produce a Sixth Assessment Report (AR6).

High-speed internet: How will India develop a 6G network?

Context: Prime Minister Narendra Modi has unveiled a vision document for rollout of 6G communications technology in India by 2030.

More on news: For regular users, 6G could be a huge opportunity. At present, the total annual purchase of smartphones is greater than 16 crore smartphones for about 30 crore Indian households, as per the vision document. This means that every household today is buying smartphones at an average of one phone every 2 years. A similar amount is being spent annually on two-wheelers, suggesting that an average Indian finds a personal smartphone as valuable, and necessary, as a personal vehicle.

Introduction to 6G

6G is the next generation of wireless technology that is currently in the research phase and is expected to be commercialized by 2030.

  • It is expected to offer faster speeds, higher capacity, and lower latency than the current 5G technology.
  • It is expected to use higher frequency bands than 5G, including terahertz frequencies, to achieve higher data rates.
  • 6G is also expected to be more energy-efficient than 5G, which will help to reduce the carbon footprint of wireless networks.
  • 6G is expected to enable a wide range of new applications, including augmented reality, virtual reality, and the Internet of Things.
Parameter4G5G6G
FrequencyBelow 6 GHzBelow 6 GHz and up to 52 GHzUp to 1 THz
SpeedUp to 1 GbpsUp to 10 GbpsUp to 1 Tbps
Latency10-30 ms1-5 ms< 1 ms
Spectrum Efficiency2-3 bits/Hz3-4 bits/Hz30-40 bits/Hz
Network CoverageWide-area coverageWide-area and local coverageWide-area and local coverage
Use CasesMobile broadband, video streaming, online gamingAugmented reality, virtual reality, autonomous driving, smart citiesAdvanced augmented reality, virtual reality, holographic communications, brain-computer interfaces
Energy EfficiencyModerateBetter than 4GSignificantly better than 5G
StandardizationLTE, WiMax5G NRNot yet defined

Energy efficiency of 4G, 5G AND 6G

Energy efficiency refers to the amount of energy required to transmit data wirelessly, and it is an important consideration for mobile network operators due to the increasing demand for mobile data services and the need to reduce carbon footprint. 

Here's a comparison of the energy efficiency of 4G, 5G, and 6G:

  • 4G: 4G technology is not very energy efficient. It consumes a relatively high amount of energy due to the use of multiple antennas and high-power transmitters. As a result, 4G networks have a high carbon footprint and are not sustainable in the long term.
  • 5G: 5G technology is more energy efficient than 4G due to the use of advanced antenna systems and improved signal processing techniques. 5G networks can also dynamically adjust their power consumption based on the number of connected devices and the data traffic. This leads to a reduction in energy consumption and a lower carbon footprint.
  • 6G: 6G technology is expected to be even more energy efficient than 5G. It will use advanced signal processing algorithms and will be able to dynamically adjust the frequency and power levels based on the specific requirements of each device. In addition, 6G will use high-frequency bands, such as terahertz frequencies, which require less energy to transmit data. As a result, 6G networks are expected to have a significantly lower carbon footprint than 4G and 5G networks.

Overall, the energy efficiency of wireless networks is improving with each new generation of technology, and 6G is expected to be the most energy-efficient wireless technology to date. 

Use cases of 6G

  • Augmented Reality and Virtual Reality: 6G can enable more advanced and immersive AR and VR experiences, including real-time holographic communication and 3D mapping.
  • Internet of Things (IoT): 6G can support a massive number of connected devices, with ultra-low latency and high reliability, enabling a wide range of IoT applications such as smart cities, smart homes, and smart factories.
  • Autonomous Vehicles: 6G can enable highly reliable and low-latency communication between vehicles and the infrastructure, making it possible to achieve a fully autonomous transportation system.
  • Telemedicine: 6G can enable remote medical procedures, such as remote surgery, with ultra-low latency and high reliability, making it possible to provide medical services to patients in remote areas.
  • Environmental Monitoring: 6G can enable real-time monitoring of the environment, including air quality, water quality, and climate change, with a high level of accuracy and precision.
  • Brain-Computer Interfaces (BCIs): 6G can enable the development of advanced BCIs, which can connect the human brain directly to the internet, enabling new forms of communication and control.

Overall, 6G has the potential to enable a wide range of applications that were previously impossible or impractical with existing wireless technologies, and it is expected to be a key enabler of the Fourth Industrial Revolution.

Concerns related to 6G 

  • High carbon footprint: while 6G promises growth, it will simultaneously have to be balanced with sustainability since most 6G supporting communication devices will be battery-powered and can have a significant carbon footprint, the document said.
  • Shared use of spectrum: The government will have to explore shared use of spectrum, particularly in the higher frequency bands for 6G. 
  • Captive networks: A reassessment and rationalisation of congested spectrum bands, and adoption of captive networks for Industry 4.0 and enterprise use cases will also have to be done.

What is India’s 6G roadmap?

  • Support to explorative ideas, risky pathways and proof-of-concept tests. Ideas and concepts that show promise and potential for acceptance by the global peer community will be adequately supported to develop them to completion, establish their use cases and benefits, and create implementational IPs and testbeds leading to commercialisation as part of phase two.
  • The 6G project will be implemented in two phases, and the government has also appointed an apex council to oversee the project and focus on issues such as standardisation, identification of the spectrum for 6G usage, create an ecosystem for devices and systems, and figure out finances for research and development, among other things.
  • Exploring opening up a few bands to generate demand (for example 450-470 MHz, 526-612 MHz, 31-31.3 GHz, etc.). This requires initiating a new inter-ministerial process of repurposing several bands like that has been done earlier.
  • To fund research and innovation on 6G, the vision document on 6G has recommended the creation of a corpus of Rs 10,000 crore to facilitate various funding instruments such as grants, loans, VC fund, fund of funds, etc. for the next 10 years. 
  • To decide on standardisation around 6G and related technologies, the document called for India to take on a greater role in various international bodies such as 3GPP, ITU, IEC, and IEEE.

What is India’s immediate action plan?

  • The government has set up a Bharat 6G project and appointed an apex council to oversee the project and focus on issues such as standardisation, identification of the spectrum for 6G usage, create an ecosystem for devices and systems, and figure out finances for research and development, among other things.
  • The apex council will facilitate and finance research and development, design and development of 6G technologies by Indian start-ups, companies, research bodies and universities. It will aim to enable India to become a leading global supplier of intellectual property, products and solutions of affordable 6G telecom solutions and identify priority areas for 6G research based on India’s competitive advantages.
  • A key focus of the council will be on new technologies such as Terahertz communication, radio interfaces, tactile internet, artificial intelligence for connected intelligence, new encoding methods and waveforms chipsets for 6G devices.

Initiatives for sustainable development in the aviation sector and reduce carbon emissions at airports

Context: India's aviation sector has experienced rapid growth in recent years, leading to an increase in carbon emissions from airports. Ministry of Civil Aviation has taken a number of initiatives to promote sustainable development in the aviation sector and reduce carbon emissions at airports.

Emissions from Airports

Airport greenhouse gas emissions fall into three categories: Scope 1 (from sources owned/controlled by airport), Scope 2 (indirect emissions from purchased energy), and Scope 3 (indirect emissions beyond airport's control). Scope 1 accounts for 5% and Scope 2 for 95% of emissions. This has led to increased efforts to make airports more eco-friendly and green.

What is Green Airport?

A green airport refers to an airport that adopts sustainable measures to mitigate its ecological impact and encourage sustainable growth. These airports strive to curtail their carbon footprint, preserve natural resources such as energy and water, and cut down on waste and emissions.

Initiatives by MoCA taken for reduction of Green House Gases(GHG) in airspace

  • Flexible Use of Airspace (FUA): Due to Flexible Use of Airspace, cumulative reduction in carbon emission of approx. 90,000 tCO2 in addition to cumulative saving of approx. 
  • Implementation of Central Air Traffic Flow Management (C-ATFM): This management technique is helping to manage air traffic flows strategically in the Indian sky. It has helped to ensure reduced delays & holding and optimisation of capacity, leading to reduction in fuel consumption and GHG emissions. India became the 7th country in the world (after USA, Europe, Australia, South Africa, Japan and Brazil) to implement the Air Traffic Flow Control Measures across the country. 

Airports Council International - Global Framework

The Airports Council International (ACI) has launched the Airport Carbon Accreditation program, which is a globally recognised carbon management certification program for airports of all sizes, including general aviation and freight-focused airports. 

The program helps airports to assess their carbon emissions, develop a carbon management plan, and reduce their carbon footprint. It offers six levels of certification that acknowledge airports' different stages of carbon management and uses internationally recognised methodologies.

The program provides measurable goals, flexibility to account for national or local requirements and helps airports benefit from increased efficiency and lowered energy consumption. 

About International Civil Aviation Organization

  • It is a specialized agency of the United Nations that coordinates the principles and techniques of international air navigation, and fosters the planning and development of international air transport to ensure safe and orderly growth. 
  • Its core function is to maintain an administrative and expert bureaucracy to research new air transport policy and standardization innovations. 
  • It defines the protocols for air accident investigation that are followed by transport safety authorities in countries signatory to the Chicago Convention on International Civil Aviation. 
  • Its headquarters are located in the Quartier International of Montreal, Quebec, Canada.

ICAO’s CORSIA initiative

  • It is the first global market-based measure for any sector and represents a cooperative approach that moves away from a “patchwork” of national or regional regulatory initiatives. 
  • It offers a harmonized way to reduce emissions from international aviation, minimizing market distortion, while respecting the special circumstances and respective capabilities of ICAO Member States.
  • CORSIA complements the other elements of the basket of measures by offsetting the amount of CO2 emissions that cannot be reduced through the use of technological improvements, operational improvements, and sustainable aviation fuels with emissions units from the carbon market.

Steps taken by the MoCA for encouraging usage of Sustainable Aviation Fuel (SAF)

  • Airlines can either use Sustainable Aviation Fuel (SAF) or offset their emissions by purchasing carbon credits from ICAO approved Emissions Unit Programmes.
  • To realize the goals of decarbonization of Aviation Sector, Ministry of Petroleum & Natural Gas constituted a Bio-Aviation Turbine Fuel (ATF) Programme Committee to take forward the Bio-ATF programme in the country to promote use of clean fuels.
  • SpiceJet, a private Indian carrier, had conducted a demonstration flight with Bombardier Q400 aircraft in August 2018 using bio-fuel blended with ATF (in the ratio of 25:75) in one engine.
  • As on date, Airbus and Boeing aircraft are capable of flying with up to a 50% blend of SAF. Both the manufacturers aim to enable 100% SAF capability by 2030.
  • Clean Skies for Tomorrow (CST) is an initiative of World Economic Forum to help the aviation sector move towards net-zero emissions by accelerating the use of sustainable aviation fuels. 

Achievements by India

  • Delhi and Mumbai airports, the top two major airports in the country, have achieved the highest Level 4+ Carbon Accreditation of ACI. 
  • Hyderabad and Bengaluru have also achieved the status of being Carbon Neutral (Level 3+).
  • Cochin Airport is the first green airport in the world, fully powered by solar energy. (Prelims 2022)
  • Almost all the major airports have Sewage Treatment Plants (STPs) installed at their sites and at remaining airports the STPs are being installed.

Targets

  • Most of the Airports have given the target of achieving 100% use of Green Energy by 2024 and Net Zero by 2030.
  • AAI has given targets to achieve 100% Green Energy at its remaining operational airports by 2024. 

Conclusion

Tackling carbon emissions from airports requires a coordinated and collaborative effort from all stakeholders, including technological innovation, policy and regulatory frameworks.

With concerted efforts, it is possible to mitigate the environmental impact of air travel while continuing to enjoy its many benefits. 

Fiscal Deficit

Context: The Centre will rein in the fiscal deficit at the targeted 6.4% of the gross domestic product in the current financial year despite some likely variations in revenues and expenditures from the respective revised estimates.

How will the Fiscal Deficit be reigned?

  • Government is on track to achieve the fiscal deficit target for FY23.
  • Sustained revenue buoyancy over the last 2 years.
  • Increasing average monthly gross GST collections.
  • Modest growth in debt-to-GDP (%) for India will reduce future interest liabilities.
  • Positive growth-interest rate differential keeps Government debt sustainable.

Challenges in Meeting Fiscal Deficit Targets

  • Likely shortfall in tax revenues given the large Budget with several spending and revenue collection heads.
  • Increase in Government’s expenditure: It was increased by Rs 2.42 trillion or 6.14% to Rs 41.87 trillion in the RE from the budget estimate (BE) of Rs 39.44 trillion, to cater to higher revenue expenditure on subsidies, including that on food and fertilisers.

About Fiscal Deficit

  • Fiscal deficit is the difference between the government's total expenditure and its total receipts excluding borrowing. 
  • Fiscal deficit arises due to either increase in expenditure or shortfall in revenues. 
  • Fiscal deficit can be financed through borrowing from domestic and foreign sources or by printing money. The borrowing can be either from the central bank of the country, or raising money from capital markets by issuing different instruments like treasury bills and bonds

Implications for the economy:

  • By printing new currency: But printing money in excess of what is justified for the growth of 'real' national income will lead to inflationary trends which will be a burden on the people. If deficit financing is maintained at a steady money level, it may not lead to 'spiral inflation' but will lead to price rise. The price rise can be minimised by either reducing the scale of deficit financing or imposing price control 
  • Borrowings from domestic sources: It consist of market borrowings, small savings of households, state provident funds and term loans from financial institutions. Financing by borrowing can be unsustainable if the interest rate involved exceeds the growth rate of GDP.
  • Non-productive current expenditure: If the borrowings are high and they are utilised for financing activities which give zero or low returns, the burden of interest payments will be unsustainable. The non-productive current expenditures will give rise to higher revenue deficits 
  • Reducing capital expenditure: If debt service payments form a high proportion of both revenues and expenditures, other activities of the government will suffer. Since expenditures on wages and salaries, defence expenditures, pensions, food subsidies, etc. are all committed expenditures, the main casualty will be capital expenditures in social and infrastructural spheres. 
  • Crowding out private investment: A high fiscal deficit, even if sustainable, will 'crowd out' private investment and adversely affect growth. Such impact on growth of GDP will be more direct and severe if the borrowings lead to unproductive public consumption.
  • High interest rates: A continued high level of public borrowing will put pressure on the interest rates. In order to finance the government deficit, the central bank (RBI in India) will have to keep the level of reserves high on deposits in commercial banks. This will necessitate banks to have higher margins on their commercial and lending activities thereby subjecting the rest of the economy to high interest rates.

Implications on macroeconomic stability

  • The effect of fiscal policy on economic growth has for long been a subject of debate in economic theory, empirical research, and economic policymaking. 
  • Rising budget deficit has been considered as one of the main constraints on economic growth in developing economies. 
  • Economists have generally agreed that large and persistent fiscal deficits are inimical to good macroeconomic performance. 
  • As pointed out earlier, such deficits tend to crowd out private investment and increase inflationary potential. 
  • It would also weaken the balance of payments position, make financial sector reforms more difficult and impose a burden of debt on future generations.

Implications on Economy

  • Though the fiscal deficit financed by domestic borrowing will result in increased government investment at the cost of private investment. But government spending will lead to an increase in aggregate demand and expansion of the economy. 
  • As the economy expands, the private sector and businesses will find it profitable to ramp up production to meet the rising consumer demand.
  • JM Keynes, the Cambridge economist, advocated deficit spending by the State during the Great Depression of the 1930s as a means of overcoming depression. He argued that in a period of recession, public spending would stimulate aggregate demand for goods and services and counter unemployment and deflation. The government spending or 'pump-priming', as it is referred to, will stimulate private spending, which in turn would lead to economic expansion. This approach was adopted by Franklin Roosevelt, the US President through his 'New Deal' programme to overcome the debilitating effects of the depression of 1930's.
  • After the Second World War, many of the newly independent countries, including India, which embarked on economic development and were faced with paucity of financial resources, resorted to deficit financing to meet developmental needs. 

Need for fiscal prudence

  • The dilemma faced in promoting economic growth and welfare is whether this is best achieved by the government itself, on the Keynesian approach of spending more than what it earns, or by restraining its expenditure to make space for private investment and market forces. 
  • Profligate spending and slippage in fiscal deficit target will end up in high inflation and retarded growth.
  • Against this background, adhering to a policy of fiscal prudence and reducing fiscal deficit assumes importance. 
  • The government must strive to keep the deficit under control so as not to hamper growth. Expenditure ought to be within limits to avoid massive deficits leading to debt financing and the crowding-out effect of private investment. 
  • If deficits become unsustainable, it can lead to higher interest liabilities, and the government may well even have to default.

Counter-cyclical measures

  • In the event of business cycles, with ups and downs affecting the economy, macroeconomic stability will call for a counter-cyclical policy stance, i.e., allow the deficit to go up when growth dips below the desired level, and contain it when growth spikes above the norm.
  • Most advanced economies and several emerging market economies now target structural deficit, which serves as an automatic counter-cyclical stabiliser. The structural deficit is the deficit consistent with sustainable public debt under conditions of normal growth. The actual deficit is allowed to exceed or fall below this target when growth is too low or too high.
  • Maintaining fiscal deficit as targeted is crucial for sustained economic growth. Lower fiscal deficit leads to lower interest rates and higher investment and growth. In exceptional circumstances such as the global financial crisis of 2007-08 which led to the 'Great Recession, fiscal stimulus may be required to counter recessionary trends even breaching the deficit target.

India’s Record in Managing Fiscal Deficit

  • Since the early years of planning in the 1950s, the Government of India adopted deficit financing as a means to mobilise resources necessary for the five-year plans as the levels of outlays were of such an order which could not be met only by taxation and borrowing from the public or external aid.
  • Also, in the early phase of planning, the private sector was not in a position to provide the necessary investment for industrialisation. Hence the government had to undertake investment in the public sector to develop the core sector of basic and heavy industries. This necessitated resorting to deficit financing.

Economic growth and Fiscal Deficit

  • Prudent fiscal management requires that revenue receipts not only meet revenue expenditures, but also generate surplus to finance the Plan and other capital and development outlays. 
  • But all through the 1980's, the government revenues fell short of expenditure. The fiscal imbalance persisted and worsened during the 1980's, and the gross fiscal deficit surged to 8% by the end of the decade. 
  • Another disturbing trend was that almost throughout the 1980s, non-development expenditure increased faster than development outlays which meant that long-term development of the country received less priority. The persistent fiscal imbalances accentuated inflationary pressures. 
  • These and the critical foreign exchange position towards the end of 1980s and the early 1990's  forced India to launch radical reform measures. 
  • With determined effort at fiscal consolidation, the central government brought down the combined deficit of the Centre and the states by the mid-1990s.
  • But later, instances such as hikes in salaries of government employees at both the Centre and the states, increase in subsidies, and payments to farmers towards debt relief made the government's task of adhering to fiscal deficit targets challenging. 

The FRBM Act and Fiscal prudence

  • An important step towards ensuring fiscal prudence was the enactment of the Fiscal Responsibility and Budget Management Act in 2003 which mandates the Central Government to ensure equity in fiscal management and long term macro-economic stability. 
  • The Act streamlined the Budget presentation process and helped to enforce fiscal discipline.
  • There was a view that instead of fixed fiscal deficit targets, it would be better to have a fiscal deficit 'range' as the target which would give necessary policy space to the government to deal with unforeseen and dynamic situations such as natural calamities or volatile global economic conditions which would have adverse repercussions on the economy.
  • Committee on FRBM Act: Therefore, in 2016, an Expert Committee, headed by N.K. Singh was set up to review the implementation of the Act. The Committee made the following important recommendations:
    • Public debt to GDP ratio should act as the medium-term anchor for fiscal policy. Combined debt-to-GDP ratio of the centre and states should be brought down to 60% by 2023 (40%- Centre, 20%- States).
    • Fiscal deficit as the operating target. Fiscal deficit should be reduced from 3.5% (2017) to 2.5% by 2023. This will help achieve the public debt target of 40% for the centre by 2023.
    • Formation of Fiscal Council to do fiscal analysis round the year, advise the government on any corrective action needed and advise if conditions exist Justify triggering the 'escape clauses’ for deviating from the fiscal deficit target.
    • Escape Clause to accommodate counter cyclical issues: Flexibility in fiscal deficit target (0.5%) to deal with economic instabilities.

Fiscal deficit: The real picture 

  • A key concern is that the fiscal deficit numbers, put out by the government, do not present the true picture of public finances. Though the deficit has been brought down over the years, the government's off-budget borrowings have increased manifold.
  • There is a problem with budget data because the central government overstates the receipts and understates the expenditures figures. The government borrows funds using off-budget' methods which enable it to finance capital and revenue expenditures while seemingly adhering to deficit targets.
  • For instance, fertiliser subsidies are cleared through special banking arrangements;  irrigation schemes are financed through borrowings by NABARD and power projects through Power Finance Corporation. 
  • Further, instead of paying the food subsidy bill during the current year, the central government carries it over to the following year which creates future liabilities and also adds to interest payment liabilities This leaves the fiscal deficit figures cited in Union budgets questionable.
  • These aspects have been pointed out by the Comptroller and Auditor General (CAG) also. 

Conclusion: 

  • Some experts suggest that during a prolonged slowdown in the economy, there is a need for a public expenditure-led booster to revive demand even if it means breaching the fiscal deficit target.
  • While the need for stimulating growth is paramount, there is a limit to which fiscal deficit may be stretched. The consequences of breaching the deficit target could be severe and it may last over a long period. It will also take longer to bring the debt-GDP ratio to the prescribed limit. 
  • The longer also will be the period during which interest payments claim an unduly large portion of revenue receipt In view of these considerations, it would be prudent to adhere to the path of fiscal discipline and fiscal deficit targets, save in exceptional situations of economic slowdown or recession requiring stimulus, or to meet other unforeseen contingency as pointed out by the Committee on FRBM Act. 

Additional Tier 1 (AT1 Bonds)

Context:

  • The biggest losers in the Credit Suisse fire sale are investors in the banking major’s riskiest bonds — called Additional Tier 1 or AT1 — who are faced with a $17 billion wipeout, potentially pushing Europe’s $275 billion market for these bonds into turmoil, with likely cascading impact across other geographies.
  • This is the biggest wipeout yet for Europe’s AT1 market.

About AT1 Bonds:

  • AT1 bonds, as these instruments are popularly known, are a type of perpetual debt instrument that banks use to augment their core equity base and thus comply with Basel III norms. These bonds were introduced by the Basel accord after the global financial crisis to protect depositors.

How are these bonds different from other debt instruments?

  • These bonds are perpetual in nature — they do not carry any maturity date. 
  • They offer higher returns to investors but compared with other debt products, these instruments carry a higher risk as well. 
  • If the capital ratios of the issuer fall below a certain percentage or in the event of an institutional failure, the rules allow the issuer to stop paying interest or even write down these bonds. 
  • These bonds are subordinate to all other debt and senior only to equity.

What can investors do with AT1 bonds?

  • AT1 bonds do not have a maturity date. Banks have a call option that permits them to redeem these bonds after a certain period.

Are they safe for investors?

  • Since these bonds can be written down by banks under the directions of the Reserve Bank of India (RBI) in the event of an institutional failure, they are seen as high-risk instruments. 
  • If the bank reaches the point of non-viability, AT1 bonds are the first part of debt that will be written down. 
  • For example, AT1 bonds worth Rs 8,414 crore were written off fully during the Yes Bank reconstruction scheme in March 2020. Those AT1 investors are still locked in a court battle with the RBI and the bank seeking the return of their investments. 
  • In this backdrop, it is fair to say that AT1 bonds are high-risk instruments for investors, especially retail investors.

Why do the banks tap the AT1 bond route?

  • Banks periodically raise money issuing such bonds. 
  • At one point, lenders used to even pitch these to retail investors as an attractive option, often with returns higher than a traditional fixed deposit would offer. 
  • Indeed, there used to be significant retail interest in AT1 bonds till the Yes Bank episode.
  • The market for AT1 bonds took a hit after the Yes Bank write-off, as part of the State Bank of India-led bailout in March 2020. Investors have begun to look at these instruments with caution since then.

Impact of Credit Suisse Crisis on Bond Market:

  • At nearly $130 trillion, the global bond market far outweighs the stock market in size, and plays an outsize role in the global financial system, especially in the way governments raise funds to manage their deficits. 
  • Rumblings in the bond markets could make it harder for other lenders to raise new AT1 debt, especially when the financial sector is facing tough times. 
  • Following FINMA’s announcement of the CHF 16 billion (about $17.3 billion) write-down of Credit Suisse’s AT1 bonds, European and Asian AT1 bonds tanked on Monday. 

Impact on Indian banks:

  • The decision to write down Credit Suisse’s AT1 bonds to zero after the lender’s takeover by UBS may contribute to a higher cost of capital for banks, including Indian lenders. 
  • The write-down will weigh on the pricing of such notes and spook investors.
  • In India, AT1 bonds of Yes Bank were written down in March 2020 after the Reserve Bank of India initiated a restructuring of the troubled lender. Since then, Indian banks have raised AT1 bonds at an up to 75 basis points premium over government bonds.
  • Some bankers, however, do not see a major impact on the fundraising capabilities of Indian banks through AT1 bonds:
    • Spread between regular bonds and AT1 bonds in India is less than 150 basis points, while in the EU and the US, it is 200-250 bps. Indian lenders have limited dependence on such securities. Indian lenders are capable of enduring any potential contagion effects emanating from the US banking turmoil and the Credit Suisse episode given their manageable exposures to global counterparts. 
    • Strong funding profiles, a high savings rate, and government support are among the factors that bolster the financial institutions and that domestic banks had sufficient buffers to withstand losses on their government securities portfolio due to rising interest rates.