UPSC Daily Current Affairs- 22nd June 2023 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly PDF Download

GS-I

Carbon Border Adjustment Mechanism (CBAM): A Flawed Approach to Climate Finance

Why in News?

The historical responsibility for climate change has primarily rested with advanced economies and their industrialization processes, while the poorer countries of the Global South have made negligible contributions. The Kyoto Protocol acknowledged the principle of “common but differentiated responsibilities,” and the Paris Agreement emphasized voluntary emission targets for countries while requiring wealthier nations to provide financial transfers to developing economies.

Insufficient Climate Finance and Empty Promises by Industrialized Countries

• Inadequate Financial Transfers: Despite the commitment made under the Paris Agreement to transfer $100 billion annually to developing economies for climate change mitigation and adaptation, the actual financial transfers have been far from sufficient. In 2020, out of the $83 billion deposited into the climate finance fund, less than $25 billion was transferred as grants.
• Limited Support for Developing Countries: The Global South, comprising poorer nations, has been disproportionately affected by climate change, despite contributing minimally to the problem. These countries often lack the necessary resources and infrastructure to address the adverse effects of climate change
• Empty Promises: The track record of empty promises regarding the flow of funds to the Global South casts doubt on the credibility of commitments made by wealthier nations. The failure to deliver on financial pledges raises questions about the sincerity and commitment of industrialized countries in addressing climate change and supporting developing economies in their climate action initiatives.
• Impact on Climate Change Mitigation: Insufficient climate finance directly affects global efforts to mitigate climate change. Developing countries require financial resources to invest in clean technologies, renewable energy infrastructure, and sustainable development practices.
• Equity and Climate Justice Concerns: Insufficient climate finance exacerbates existing inequities and injustices. The burden of climate change impacts falls disproportionately on vulnerable communities in developing countries who have contributed the least to the problem.
• Loss and Damage: In addition to mitigation and adaptation efforts, financial support is crucial for addressing loss and damage caused by climate change impacts. Loss and damage refer to the irreversible and long-term damages, including economic losses and the displacement of communities, resulting from climate change.

What is The Carbon Border Adjustment Mechanism (CBAM)?

• The Carbon Border Adjustment Mechanism is a proposed policy measure aimed at addressing the issue of carbon-intensive production methods in other countries. It involves imposing tariffs on imports from countries that are seen as utilizing carbon-intensive practices in their production processes.

The Objectives of the CBAM

• Reducing Emissions: One of the primary objectives of the CBAM is to contribute to the reduction of the European Union’s (EU) emissions. By imposing tariffs on carbon-intensive imports, the mechanism aims to incentivize foreign producers to adopt cleaner and more sustainable production methods.
• Preserving Competitiveness: The CBAM seeks to prevent carbon leakage, which refers to situations where industries move their production to countries with less stringent environmental regulations to avoid higher costs associated with carbon pricing.
• Encouraging Carbon Intensity Reduction: The CBAM aims to motivate targeted countries, particularly major exporters to the EU, to decrease the carbon intensity of their exports. By imposing tariffs on carbon-intensive goods, the mechanism creates an economic incentive for these countries to transition towards cleaner and more sustainable production practices.

Challenges and Legal Implications for Implementing CBAM

• Measurement Challenges: One of the significant challenges of the CBAM lies in accurately measuring the carbon intensity of imported goods. Determining the exact carbon footprint of a product can be complex, especially when considering indirect emissions embodied in inputs or production processes.
• Arbitrary Coverage and Product Selection: Deciding which products and sectors should be included in the CBAM’s coverage can be challenging. The mechanism’s effectiveness heavily depends on selecting the right products that have high carbon exposure and significant trade volumes. The process of determining coverage may involve some arbitrariness and requires careful consideration to avoid unintended consequences and trade distortions.
• Compliance with WTO Rules: The CBAM raises legal implications in terms of compatibility with World Trade Organization (WTO) rules. The mechanism’s unilateral nature, aiming to impose tariffs based on the carbon intensity of production processes, can be seen as a potential violation of WTO principles, including non-discrimination and national treatment.
• Protectionism Concerns: There is a risk that the CBAM could be used as a form of protectionism by imposing tariffs on imports to shield domestic industries from international competition. This can undermine the principles of free trade and create tensions among trading partners. Careful design and implementation of the CBAM are necessary to ensure it does not become a tool for protectionist trade practices.
• Incomplete Global Coverage: The effectiveness of the CBAM could be limited if not implemented globally. As of now, only a few countries have mechanisms in place for pricing carbon. The absence of a comprehensive global approach to carbon pricing and emission reduction may result in uneven playing fields and limited impact on overall global emissions.
• Equity Considerations: The CBAM may have equity implications, particularly for developing countries. While it aims to incentivize carbon intensity reduction, the burden of adjustment falls primarily on countries that may lack resources and capacity to adopt cleaner technologies or transition rapidly.

Way Forward

• Strengthen Climate Finance: Industrialized countries must fulfill their commitments to provide adequate climate finance to developing nations. Increasing financial transfers and grants to support climate change mitigation and adaptation efforts in the Global South is crucial. This includes honoring the $100 billion annual target set under the Paris Agreement and exploring innovative financing mechanisms.
• Enhance Global Cooperation: International collaboration is essential to address climate change comprehensively. Governments, organizations, and stakeholders need to foster dialogue, share best practices, and collaborate on climate initiatives. Multilateral platforms, such UNFCCC, can serve as forums for cooperation, knowledge exchange, and collective decision-making.
• Develop Comprehensive Carbon Pricing Mechanisms: Implementing comprehensive and robust carbon pricing mechanisms can incentivize emission reductions and promote the transition to low-carbon economies. Governments should explore carbon pricing mechanisms at both domestic and international levels, considering factors such as fairness, effectiveness, and economic feasibility.
• Support Technology Transfer and Capacity Building: Developing countries require support in adopting and implementing clean technologies and building their capacity to mitigate and adapt to climate change. Enhanced technology transfer, knowledge sharing, and capacity-building initiatives can empower nations to address climate challenges effectively.
• Promote Equity and Climate Justice: Efforts to combat climate change must prioritize equity and climate justice. It is essential to ensure that the burden of mitigation and adaptation does not disproportionately fall on vulnerable communities and developing countries. Equity considerations should be integrated into policy frameworks, financing mechanisms, and decision-making processes.
• Strengthen International Trade and Climate Governance: The relationship between international trade and climate change needs to be addressed coherently. Collaborative efforts should be made to reconcile trade rules and climate objectives. Strengthening the World Trade Organization (WTO) and exploring ways to integrate climate considerations into trade agreements can foster synergies and avoid conflicts between trade and climate policies.
• Encourage Innovation and Research: Investing in research and innovation is vital to develop and scale up transformative technologies and solutions for climate change mitigation and adaptation. Governments, private sectors, and academia should collaborate to promote research and innovation in clean energy, sustainable agriculture, circular economy, and other climate-related fields.

Source: The Hindu

Beki River

Why in News?

The water level of the Beki River is flowing above the danger level mark at several places across Assam.

About Beki River:

• The Beki river originates in Bhutan, and it is one of the right bank tributaries of the Brahmaputra river.
• This river is also known as the Kurisu river in Bhutan.
• A large portion of the Beki river flows in the state of Assam and ultimately mix with Bay of Bengal.
• It flows through the Manas National Park.
• The river and its drainage channels flow through the plains of Assam for about 85 km and drain an area of 26,243 sq. km. approximately.
• Beki river is rich in bio-diversities. It is the home of a variety of food fishes’ species, ornamental fishes’ species, amphibians, reptiles, birds, insects etc.
• Discharging a huge amount of water every year, the river turns dangerous during monsoon season.

Source: The Hindu

GS-II

Indian Pharmaceutical Industry and Drug Safety

Why in News?

Reports of drugs manufactured in India causing severe harm and dozens of patient deaths from across the world continue to trickle in.

About Indian Pharmaceutical Industry:

• India is the largest provider of generic drugs globally.
• It supplies over 50% of global demand for various vaccines, 40% of generic demand in the US and 25% of all medicine in the UK.
• The Indian pharmaceutical market is estimated at USD 40 billion and pharma companies export another USD 20 billion.
  • However, this is a miniscule portion of the USD 1.27-trillion global pharmaceutical market.
• Globally, India ranks 3rd in terms of pharmaceutical production by volume and 14th by value.
• India has more than 30% share in the global generic market but less than 1% share in the new molecular entity space.
• New Molecular Entity: A novel compound that has not previously been approved for use in humans.
  • According to the Economic Survey 2021, the domestic market is expected to grow three times in the next decade.

Issues associated with pharma sector in India:

Anaesthetic drugs:

• Latest of the reports is the deaths of two patients in Sri Lanka who were administered Indian-made anaesthetic drugs.

Eye drops:

• Just last month, eye drops manufactured in India had caused eye infection in about 30 patients and blindness in 10 in Sri Lanka.
• While anaesthetic drugs made in India causing deaths are a first in the recent past, eye drops causing infections, blindness and even deaths were reported a few months ago in the United States, with the Atlanta-based Centers for Disease Control and Prevention (CDC) finding a highly drug-resistant bacteria in them.

Cough syrups:

• The series of adverse reports against drugs produced in India began last year when the World Health Organization (WHO) linked the deaths of at least 70 children in Gambia from acute kidney injury to cough syrups.
• The culprit ingredient in the syrups was diethylene glycol and ethylene glycol — deadly chemicals used as a cheaper substitute for propylene glycol — that should never have been found in any medicine.
• Soon after the deaths in Gambia, cough syrups made in India and containing the two deadly chemicals killed 18 children in Uzbekistan in December 2022.
• Indian-made cough syrup was again in the news when WHO flagged the contaminated drugs found in the Marshall Islands and Micronesia; the contamination was identified by the Australian regulator.

Challenges:

Safety of drugs:

• Except for some customary inspections, the Indian drug regulator has so far failed to institute measures to make sure drugs produced in India for export and domestic use are safe.

Failing the quality tests:

• According to a Central Drugs Standard Control Organization (CDSCO) survey in 2014-2016, about five per cent of Indian drugs, several of them manufactured by large pharma companies, failed the quality test.
• Independent studies suggest that this figure could be much higher.
• The country’s pharma industry has largely been in denial over quality-related concerns expressed by national and international observers.

Costs of production:

• The cost of production in India is 50 percent less than in developed nations, but it is still around 18 percent higher than China.
• This is attributable to raw materials being 25-30 percent costlier, electricity being 20 percent more expensive, and other costs such as financing, logistics, transportation, etc., being 30 percent more expensive.

Regulation of Drugs in India

Drugs and Cosmetics Act, 1940:

• The Act regulates the import, manufacture, and distribution of drugs in India.
• The primary objective of the act is to ensure that the drugs and cosmetics sold in India are safe, effective and conform to state quality standards.
• The Drugs and Cosmetics Act, 1940 was amended by the Drugs & Cosmetics (Amendment) Act, 2008 to provide for more stringent penalties for manufacture and trade of spurious and adulterated drugs.

New Drugs, Medical Devices and Cosmetics Bill, 2022:

• To accommodate changing requirements and encourage the adoption of new technology, the Ministry of Health and Family Welfare released a draft bill in July 2022 to replace the existing Drugs and Cosmetics Act 1940.
• This act governs drug importation, production, and distribution across the country.

Central Drugs Standard Control Organization:

• It is the apex department of the Central Drugs Standard Control Organization (CDSCO) of the Government of India.
• CDSCO is a regulatory body for Indian pharmaceuticals and medical devices.
• It comes under the Ministry of Health and Family Welfare.

Drugs Controller General of India:

• Drugs Controller General of India (DCGI) is the head of department of the Central Drugs Standard Control Organization of the Government of India
• It is responsible for approval of licenses of specified categories of drugs such as blood and blood products, IV fluids, vaccines, and sera in India.
• DCGI also sets standards for manufacturing, sales, import, and distribution of drugs in India.

Way Forward:

• Strengthening the regulatory framework: The government should strengthen the regulatory framework and enforce stricter laws to ensure that the drugs and medicines produced in India meet the required safety and quality standards.
• Increasing inspections and audits: Regular inspections and audits should be conducted at all levels of the pharmaceutical industry to identify and address any potential issues related to the manufacturing process, quality control, and distribution.
• Enhancing transparency and accountability: The government should promote transparency and accountability by making the regulatory process more accessible and understandable to the public and stakeholders.
  • This can be done by improving the dissemination of information and conducting public consultations.
• Providing training and capacity building: The government should invest in training and capacity building for regulatory agencies and industry professionals to ensure that they have the necessary skills and knowledge to maintain high standards of drug quality and safety.
• Collaboration with International Bodies: India should collaborate with international bodies like the World Health Organization (WHO) to adopt best practices in drug regulation. This will help ensure that Indian pharmaceutical companies are following global safety and quality standards.

Source:  The Hindu

Prime Minister’s visit to USA

Why in News?

PM Modi is on an Official State Visit to USA. This is his first state visit to the country.

• On the first day of his visit, PM led the celebrations of the 9^th annual International Day of Yoga at the United Nations Headquarters on June 21.
  • In December 2014, the UN General Assembly had adopted a resolution proclaiming June 21 as the International Day of Yoga.
• On the second day of his visit, PM Modi will
  • meet President Biden to continue their high-level dialogue;
  • attend a State Dinner hosted by President Biden and First Lady Dr. Jill Biden;
  • address a Joint Sitting of the U.S. Congress

What is a State visit?

• About
  • State visits are the highest-ranked category of foreign visits to the US, where the head of a state visits the US on the formal invitation of the US President.
    • Before PM Modi, the only two state visits under President Joe Biden have been by France’s President Emmanuel Macron and South Korea’s President Yoon Suk Yeol.
  • Invitation for a state visit signifies that the US considers the guest nation an important friend and ally.
• Key events that mark a state visit
  • A state dinner is a crucial part of such a visit.
    • The state dinner is held at the White House, the residence of the US President.
    • It has the symbolic value of a visiting dignitary sharing a meal at the host’s home.
  • The other key events that mark a state visit include:
    • 21-gun salute White House arrival ceremony and
    • an invitation to stay at the Blair House (the US President’s guesthouse across Pennsylvania Avenue).

India-US Bilateral Relations

Trade & Economic Relations between India and US

• The U.S. has emerged as India's biggest trading partner in 2022-23 on account of increasing economic ties between the two countries.
  • In 2022-23, the bilateral trade between India and the USA stood at a record US$ 191 billion as against US$ 119.42 billion in 2021-22.
  • In 2022-23, India had a trade surplus of ~US$ 30 billion with the US.
• In FY 2020-21, India received the highest ever FDI amounting to US$ 81.72 billion.
  • USA became India’s second largest source of FDI during 2020-21 with inflows of US$ 13.82 billion.
  • US is one of the top 5 investment destinations for Indian FDI.

Defence Cooperation between India and US

• India-US defence cooperation is based on “New Framework for India-US Defence Cooperation”, which was renewed for a period of ten years in 2015.
• In 2016, the defence relationship was designated as a Major Defence Partnership (MDP) to build a comprehensive, enduring and mutually beneficial defence partnership.
• In July 2018, India was moved into the Tier-1 of the US Department of Commerce’s Strategic Trade Authorization license exception.
• In August 2022, a U.S. Navy Ship Charles Drew visited in Chennai for repairs and allied services. This was the first ever repair of a U.S. Navy ship in India.
• Several defence agreements have been signed:
  • Logistics Exchange Memorandum of Association (2016);
  • Communications Compatibility and Security Agreement (2018);
  • Industrial Security Agreement (2019);
  • Basic Exchange and Cooperation Agreement (2020).
• Bilateral exercises include: Yudh Abhyas (Army); Vajra Prahar (Special Forces), a tri-services exercise– Tiger Triumph (inaugurated in 2019).
• In November 2022, Australian Navy joined the U.S.-India-Japan MALABAR annual Naval Exercise. U.S. participated in India’s multilateral Exercise Milan 2022.

S&T and Space Cooperation between India and US

• Space cooperation
  • ISRO and NASA are working together to realize a joint microwave remote sensing satellite for Earth observation, named NASA-ISRO Synthetic Aperture Radar (NISAR).
  • ISRO availed NASA/JPL’s Deep Space Network Antenna support for its Chandrayaan-1, Mars Orbiter Mission (MOM) and Chandrayaan-2 mission.
  • Both sides are currently exploring the possibility of availing similar support for Chandrayaan-3 satellite.
  • On commercial front, ISRO has launched more than 200 satellites from US, on-board Polar Satellite Launch Vehicle (PSLV), as co passengers.
• Initiative on Critical and Emerging Technology (iCET) –
  • NSA Doval and his US counterpart launched a new US-India initiative on Critical and Emerging Technologies in January 2023.
  • These emerging technologies include artificial intelligence, quantum computing, semiconductors and wireless telecommunication.

Challenges in India – US relation

• Ukraine war and Indian stand
  • The United States worries about the India-Russia relationship, especially that India’s reliance on Russian military imports will continue.
  • Recently, India’s oil imports from Russia have displaced Iraq as its top supplier.
• Challenges in trade and technology relationships
  • The US still has significant export controls on India (instituted after the 1998 nuclear test), which inhibits the free transfer of technology.
  • In 2019, USA terminated India's designations as a beneficiary developing country under the Generalized System of Preferences (GSP) programme.
    • GSP is the largest and oldest US trade preference programme.
    • It is designed to promote economic development by allowing duty-free entry for thousands of products from designated beneficiary countries.
  • The United States is concerned about India’s turn towards protectionism.
    • India makes up only two percent of the United States’ merchandise trade due to policies that protect domestic industry from foreign competition.
• United States is concerned about the state of Indian democracy
  • Many members of Congress and officials in the Biden administration are following reports on civil liberties and minority rights in India.
  • Furthermore, questions are being raised surrounding data protection in India and what the implications are vis-à-vis surveillance and censorship.
• Protracted delays in the processing of visas for the United States
  • Since the Covid-19 pandemic, protracted delays in the processing of visas for the United States have been a persistent irritant in bilateral relationship.
    • Data published by the US embassy in India shows that the wait for B1 and B2 visas still stretches beyond 400 days in many instances.

Source: The Hindu

GS-III

Ex Khaan Quest 2023

Why in News?

Multinational Peacekeeping Joint Exercise, Ex Khaan Quest 2023 was held recently.

About Ex Khaan Quest 2023:-

• Ex Khaan Quest 2023 is a 14-day exercise designed to improve interoperability among the participating nation.
• It is a multinational Peacekeeping Joint Exercise.
• Location: Mongolia.
• Participants: participation of military contingents and observers from around 20 countries.
• Sponsored by: Mongolian Armed Forces (MAF) and United States Army Pacific Command (USARPAC).
• The Indian Army is represented by a contingent from the GARHWAL RIFLES.
• Objective: enhancing interoperability of the participating nations, for sharing experience and to train uniformed personnel for the United Nations Peacekeeping Operations (UNPKO).
• The military exercise will enhance the level of defence cooperation between Indian

U.N. Peacekeeping mission

• It is a joint effort between the Department of Peace Operations and the Department of Operational Support,
• It aims to assist host countries to transition from situations of conflict to peace.
• Historical Background: the U.N. began its Peacekeeping efforts in 1948 when it deployed military observers to West Asia.
• Function:N. Peacekeepers provide security as well as political and peacebuilding support to conflict-ridden countries.
• Three basic principles that guide U.N.’s Peacekeeping missions are:
  • Consent of the parties.
  • 
    
  • Non-use of force except in self-defense and defense of the mandate.

India and UN Peacekeeping force:

• Over 200,000 Indians have served in 49 U.N. Peacekeeping missions since 1948.
• Currently, approx. 5,581 Indians are part of variousN. Peacekeeping missions. 
• 2007: India became the first country to deploy an all-women contingent to a U.N. Peacekeeping mission.
• Issues:-
  • Despite its presence in several countries as part of the Peacekeeping missions, India has routinely expressed its displeasure at a similar mission headquartered in Srinagar and Islamabad.
  • The United Nations Military Observer Group in India and Pakistan (UNMOGIP) was established in 1949 to supervise the ceasefire between India and Pakistan.
  • UNMOGIP has remained in the region to observe hostilities between the neighboring countries.

Source: PIB

Critical Jet Engine GE-414 Deal Signed

Why in News?

During Prime Minister Narendra Modi’s official State visit to the United States, a significant agreement is likely to be announced.

• The deal is expected to facilitate the transfer of at least 11 critical jet engine technologies.

GE-414 Engine Deal

• An agreement is expected between General Electric (GE), an American multinational corporation, and Hindustan Aeronautics Limited (HAL) of India.
• The agreement aims to enable the licensed manufacture of GE’s F414 engine in India for the indigenous Light Combat Aircraft (LCA) Tejas Mk2.
• The F414 engine is part of GE’s suite of military aircraft engines and has been utilized by the US Navy for over 30 years.
• It boasts a track record of over 1,600 engines delivered, accumulating more than 5 million engine flight hours across various missions.

Features and Advancements of the F414 Engine

• The F414 engine belongs to the thrust class of 22,000 lb or 98 kN and incorporates advanced technologies such as Full Authority Digital Electronic Control (FADEC).
• GE’s highlights the engine’s use of advanced materials and cooling techniques, improving performance and extending component life.

F414-Powered Jets and their Significance

• Eight nations, including the US, have aircraft powered by F414 engines, such as the Boeing F/A-18E/F Super Hornet and EA18G Growler, as well as Saab’s Gripen E/F fighters.
• The manufacturer’s website suggests the potential use of F414 engines for emerging platforms like the Korean KF-X.

India-Specific Version: F414-INS6

• The Aeronautical Development Agency (ADA) of the Defence Research Development Organisation (DRDO) selected the F414-INS6 engine for the LCA Tejas Mk2.
• The LCA Tejas currently employs the GE-404-IN20 engine, which is a derivative of the GE-404 engine developed in the 1970s.

Future Prospects: Advanced Medium Combat Aircraft (AMCA)

• F414 engines may also be considered for the prototypes and initial batch of India’s fifth-generation fighter aircraft, the Advanced Medium Combat Aircraft (AMCA).
• AMCA is a potential recipient of the engine, although it might face competition from other engine manufacturers.

Significance of the Deal

• Only a few countries, including the US, Russia, the UK, and France, possess the necessary technology and metallurgy for manufacturing engines that power combat aircraft.
• Despite India’s pursuit of self-reliance in critical technologies, the country has not yet achieved mastery in manufacturing such engines.

Source: Indian Express

Why in News?

Recently, scientists at Gujarat Energy Research and Management Institute (GERMI) have developed the thinnest, lightweight and biodegradable paper-based supercapacitor.

About Biodegradable Supercapacitor:

• A supercapacitor is an electrochemical charge storage device with a fast charging/discharging cycle, high power density and a longer lifecycle. 
• Features
  • This supercapacitor which can fully charge a device within 10 seconds, has been developed from seaweed (marine macroalgae).
  • The device is of high tensile strength and performance, as well as cost-effective, according to the researchers.
  • The product can be used in electronics, memory backup systems, airbags, heavy machines, electric vehicles, etc.; hence, it holds a huge business prospect. 

What is Seaweed?

• Seaweeds are macroalgae attached to rock or other substrata and are found in coastal areas.
• They are classified as Chlorophyta(green), Rhodophyta (red) and Phaeophyta (brown) based on their pigmentation.
• Among them, Chlorophyta holds more potential components like carbohydrates, lipids, proteins and bioactive compounds in the cell wall.
• Green seaweed has a high amount of a particular type of cellulose in its cell wall.

Source: DTE