[Economic Survey] Ch12: Sustainable Development, Millennium Development Goals, MDG, SDG, NAPCC, WTO Solar subsidies

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  1. [Act 1] MDG, SDG, Kyoto Agreements
    1. #1: Millennium Development goals (MDG)
    2. MDG & India
    3. Budget 2014 on sustainable Development
    4. #2: Sustainable Development goals (SDG)
    5. #3: Kyoto and WARSAW
    6. #4: Fodder: Future agreements
    7. #5: Fodder: Emission cuts vs India
  2. [Act 2] Climate funding
    1. CF#1: Global environment facility (GEF)
    2. CF#2: National Clean Energy Fund (NCEF)
    3. Fodder: Climate finance problems
  3. [Act 3] India specific
    1. #1: National Action Plan on Climate Change (NAPCC)
    2. #2: Environment clearance problem
    3. #3: Assertion reasoning: Market vs Environment
  4. Appendix
    1. #1: Desi Liquor Solar subsidies =Anti-WTO, says USA
    2. #2: Ecuador oil drilling in Yasuni Park
    3. #3: Tar balls

[Act 1] MDG, SDG, Kyoto Agreements

  • Economic survey ch12: sustainable Development and climate change.
  • As such chapter has hardly any new topics. Most of the stuff is fodder and bolbachhan.

#1: Millennium Development goals (MDG)

Who? UN General assembly
When? Framed in 2000. (but targets calculation done based on 1990 levels)
deadline 2015

Millenium Development goals MDG

MDG has 8 goals and 18 targets
GOAL TARGET DESCRIPTION
1.povertyhunger 1. reduce BPL junta by 50%
2. reduce hungry people by 50%
2.edu 3. all boys & girls complete primary education
3. genderequality 4.Eliminate gender disparity in primary and secondary education
4.child 5. reduce child mortality by 2/3rd
5.mother 6. Reduce MMR by 3/4th (75%)
6.disease 7. halt HIV/AIDS spread
8. halt malaria etc.
7.SustainbleDevelopment 9. integrate sustainable Development into national policies, reverse environment loss
10.junta without access to water-sanitation : reduce their # by 50%
11. Improve life of at least 10 crore slum dwellers.
8.partnership 12. reform training, financial system, good governance etc.
13.needs of LDC countries
14. needs of small island and land locked countries
15. debt problem of developing countries
16. youth productive work
17. affordable drugs with help of pharma cos.
18. new ICT technology with help of private cos.

MDG & India

Data taken from Economic Survey 2013, page 218
Indicator MDG target India’slikelyachievement
1.Poverty. BPL earning <1$/day 23.9% BPL earning <1$ 20.74
2A.Edu. Net enrollment ratio
2B.Literacy rate (15-24 years)
100% 100%
3A. Gender parity index(boys to girls in primary edu) 1 1
3B. share of women in non-agri. employment 50 23.1
4A. under five mortality rate (1000 live births) 42 50
4B. IMR (1000 live births) 27 41
5A. MMR (1 lakh live births) 109 139
5C. births attended by skilled personnel 100% 62%
6.Halt HIV & other disease no projectionsgiven in survey
7A.households with water access 94%(Urban) 79%(Rural) 98%(U) 96%(R)
7B. households without sanitation access 16%(U) 47%(R) 12%(U) 61%(R)
Overall India’s performance on MDG deadline (2015)
India can achieve these by 2015 cannot achieve these by 2015
  1. Poverty reduction
  2. households with water access
  3. Gender parity, universal primary education
  4. under five mortality rate (With some effort)
  1. MMR
  2. share of women in non-agri.employment
  3. birth attended by skilled personnel
  4. sanitation

Budget 2014 on sustainable Development

  • Re-affirmed global commitment to develop new set of Sustainable Development Goals (SDGs) when the MDG expires in 2015.
  • Outlined India’s performance on sustainable development viz.
  1. 12th FYP gave prominent focus to Sustainable development.
  2. Since 90s till now, India has reduced its Carbon dioxide emission by 20% (per unit of GDP)
  3. 12% of our energy comes from renewable sources. (23 Gigawatts).
  4. National Action Plan on Climate Change (NAPCC) and State Action Plans on Climate Change (SAPCCs.) have been development.

#2: Sustainable Development goals (SDG)

  • 2015: millennium Development goals will expire.
  • Therefore, under RIO+20 summit, the leaders had decided to enact new “Sustainable development goals” (SDG)
  • UN general assembly has setup 30 member group to design SDG.
Proposed focus area under SDG (fodder for mains/Essay)
  1. poverty eradication
  2. food security and nutrition
  3. health and population dynamics
  4. education
  5. gender equality and women empowerment
  6. water and sanitation
  1. energy
  2. employment
  3. sustainable cities and human settlements
  4. sustainable production and consumption
  5. means of implementation

What is sustainable Development?

  • “Development which meets the needs of current generations without compromising the ability of future generations to meet their own needs”.
  • Brundtland commission on World Commission on Environment and Development (1987) gave above definition.
  • This has been asked in MCQ- who gave definition, therefore need to remember.

What is Rio+20 summit?

  • 1992: Earth Summit in Rio de Janeiro, Brazil
  • 2012: United Nations Conference on Sustainable Development, in same place.
  • but since 20 years had lapsed between two summit, therefore, second summit called “RIO+20”

For more details on RIO+20 and a mile long article click me.

#3: Kyoto and WARSAW

Kyoto protocol WARSAW summit
3rd conference under UNFCC (1997) 19th conference under UNFCC (2013)
  • Kyoto Protocol designed in this conference.
  • It wants the Industrialized nations to reduce their GHG emission by around 5.2% by 2012. (against 1990 levels)
Like-minded Developing countries wanted NO LEGALLY BINDING commitment on  “DEVELOPING” countries.
Kyoto protocol expires in 2020 Decided to meet at Paris in 2015, to outline post- what to do after Kyoto protocol expires in 2020
Kyoto protocol expires in 2020 Decided to meet at Paris in 2015, to outline post- what to do after Kyoto protocol expires in 2020
three mechanisms

  1. Carbon trading. 2013: India registered 115 project= highest by any country.
  2. Clean Development mechanism
  3. Joint implementation
two mechanisms

  • Loss and Damage mechanism
  • REDD+ mechanism- UK, Norway and USA gave funds.
more details click me more details click me
List of Greenhouse gases under Kyoto
  1. Carbon dioxide (CO2);
  2. Methane (CH4);
  3. Nitrous oxide (N2O);
  1. Hydrofluorocarbons (HFCs);
  2. Perfluorocarbons (PFCs);
  3. Sulphur hexafluoride (SF6)
  • Mug up above list for tricky MCQs “which of the following is not a GHG?”
  • Do read NCERT Chemistry class11 chapter 14: environmental chemistry.

#4: Fodder: Future agreements

Kyoto MDG
born in 1997 2000
expires in 2020 2015
Kyoto focus= industrialized (developed) countries to cut down their emission. MDG focus= developing countries to improve human and environment welfare.
But, in 2015: all countries will have to pledge emission cuts for the post 2020 period. But in 2015: MDG will end. Therefore, global community designing future sustainable development goals (SDGs), according to Rio+20 mandate. Budget 2014, also affirmed this commitment.
  • 2014 is the last chance for all stakeholders to introspect to be able to wisely choose the world they want post 2015.
  • Therefore future agreements:  (1) post Kyoto agreement (2) SDG= these two will apply to all countries- whether they’re developing, developed countries.
  • But applicability to all, should not amount to “uniformity of application”.
  • Per capita energy use in developing countries is hardly 25% of developed countries.
  • The bottom half of the world can do its bit but it cannot be expected to shoulder the bulk of the world’s development, sustainability, and climate crisis burden.
  • In other words, first world countries should further reduce emission and send truckload of donation to third world countries.
  • In other words, Global community must embed the principles of equity and CBDR in the new agreements.
  • Developing countries should have the discretion to fulfill their domestic goals in accordance with their national circumstances
  • Developing countries must be given their fair share of ‘carbon’ and ‘development space’.
  • Global community must stop taking solace in limited progress and move to decisive action.

#5: Fodder: Emission cuts vs India

Points from Economic Survey, about India’s commitment towards climate change and sustainable Development

  • India has not even utilized its fair share of the earth’s carbon space.
  • Between 1850 to 2010: India’s contribution to global emissions was only 2.7%, while that of the USA was 27%
  • India lacks the resources to effectively respond to sustainability and climate challenges.
  • We’ve not even achieved basic minimum standards of living for its entire population.
  • 4 crore Indians don’t have electricity in their homes
  • 8 crore Indians still use firewood for cooking
  • We have to maintain a high economic growth for a large population
  • We have to provide urbanization and industrialization.
  • But mitigation and adaptation must continue.
  • We’ve enacted a number of legislations on conservation of forests and ecosystems, waste management, and pollution control.
  • We strongly believe that environmental conservation can go hand in hand with development
  • But while pursuing higher GDP, we’ll keep “sustainability” at the core of India’s planning process.

[Act 2] Climate funding

Only covering the climate funding mechanisms discussed in survey/budget.

CF#1: Global environment facility (GEF)

  • 1991: started in the world bank
  • Provides funding for UNFCC, convention of biological diversity (CBD), Stockholm convention on organic pollutants, Minamata convention on Mercury etc.
  • So far, India used ~50 cr dollars from GEF. And itself pledged 1.2 core $ in GEF-5.
  • India has used majority of GEF funding on mitigation projects ($4 cr), and only a small fraction on adaptation projects.
Difference between two projects?
Adaptation Mitigation
post-measure pre-measure
Building sea walls to protect against sea rise Reduce emission to prevent global warming which leads to sea rise.
Having ambulance facilities in dangerous highways/roads with curves and narrow lanes Don’t make dangerous roads in the first place.

CF#2: National Clean Energy Fund (NCEF)

  • Was created from a coal cess of 50 per ton.
  • Falls under “public account of India” (And not under Consolidated fund of India).
  • Budget 2014 increased coal cess to Rs.100 per tonne
  • >15k crore rupees spent from this fund on JNNURM Solar lights, wind power projects etc.

Fodder: Climate finance problems

  • Developed countries committed to providing US$ 100 billion per year to developing countries by 2020.
  • But there is no comprehensive system for tracking climate finance
  • proliferation of funds, and lack of coordination
  • Developed countries providing Technological transfer instead of granting money
  • To reduce global temperature by 2 Degree in 2050, we need 44 trillion USD. No single source will be sufficient for this amount.
  • Countries can raise more money via domestic resource mobilization (DRM). But that depends on factors such as fiscal performance of the country, natural resource base, and size of tax base etc.
  • We must explore new funds from South-South cooperation, and private finance.

[Act 3] India specific

#1: National Action Plan on Climate Change (NAPCC)

The new economic survey itself shamelessly says “We’ve covered this topic in previous economic survey.” Therefore, time to shamelessly copy paste from previous summary, with minor updates.

TIMELINE of NAPCC
2008 PM launched NAPCC.
2009 PM requested state govt. to prepare SAPCC. (State Action plan on climate change)
2014 26 states/UT submitted their SAPCC so far (as per economic survey)

Thanks to NAPCC, we’ve reduced the CO2 emission per GDP unit by 20%

NAPCC 8 missions

Nehru Solar

  • 2010: (Jawaharlal Nehru) National solar mission launched.
  • Under ministry of new and renewable energy

Targets by 2022

  1. install 20GW solar power
  2. 2 GW of off-grid Solar
  3. 20 million sq. meter of solar thermal collector area
  4. 20 million rural households to have solar lighting
mission will be implemented in 3 phases
Phase Till March
First 2013
Second 2017 [we are in second phase]
Third 2022

Other missions under NAPCC

2.Energy
  • National Mission on Enhanced Energy Efficiency (NMEEE)
  • by 2015, help save about 5% of our annual energy consumption, and nearly 100 million tonnes of carbon dioxide every year
  • via PAT and ESCert mechanism.
3.Water
  • National water mission.
  • increase water use efficiency by 20%
  • focus on over-exploited areas, integrated water  Management, awareness generation etc. fancy stuff
  • Finished pilot study on Godavari and Brahmani-Baitarani basin.
  • Water resource ministry got ADB’s technical assistance.
4.Agro
  • National mission for sustainable agriculture.
  • to enhance agro productivity
  • to reduce agro vulnerability to weather, floods, draught etc.
  • New activities focusing on horticulture, increases fish production, warehousing and seed processing.
5.Green India (forest)
  • National mission for Green India
  • Plant additional 10 million ht. of forest lands, wastelands and community lands.
6.Habitat
  • National mission on Sustainable Habitat
  • Energy-efficient buildings, sewage Management, urban planning, transport, etc. six sub sector.
  • 2009: Green Building norms made mandatory for the CPWD since 2009
  • 2013: Energy Conservation Building Code 2007 made mandatory for new as well as old buildings and incorporated in the Central Public Works Department (CPWD)
7.Knowledge
  • National mission on Strategic Knowledge for Climate Change
  • to Identify challenges arising from climate change,
  • Promote knowledge development for health, demography, migration, and livelihood of coastal communities.
8.Himalayan Ecosystem
  • National mission for sustaining the Himalayan Eco System
  • To reduce climate impacts on the Himalayan glaciers
  • To promote community-based management of these ecosystems

#2: Environment clearance problem

Lengthy topic, only summarizing points from survey.

Why environmental clearance gets delayed?

  • Fragmented policy. Several government agencies with differing policy mandates.
  • State institutes have shortage of trained personnel, database, funds and infrastructure.

Reforms taken?

  • Environment ministry has relaxed general conditions relating to distance of project from state boundaries.
  • If mining projects that have already obtained Environmental Clearance (EC) under EIA Notification 2006, then they don’t have to get another EC during mining license

Renewal.

  • Relaxed norms for Highway expansion projects.
  • As such Environment impact assessment work is classified into two categories:
Category A Category B
Need clearance from environment ministry Need clearance from state level agencies.

 

Reform taken: B category projects further sub classified
B1 Need public hearing.
B2 Don’t need public hearing anymore.

#3: Assertion reasoning: Market vs Environment

I’ve shifted this topic from Chapter on Industries to this chapter, for continuity in revision. Let’s direct check assertion reasoning type:

Assertion Environmental degradation is the result of market failure
Reason Markets for environmental goods and services is non-existent in India.
Correct answer Both correct, R explains A.

 

Second A&R question
Assertion Environmental degradation is the result of market failure.
Reason Lack of well-defined property rights is one of the reasons for market failure.
Correct answer Both correct, but R doesn’t explain A. (R explains what causes market failure but doesn’t explain how market failure causes environment degradation)

 

Third A&R question
Assertion Government’s price control and subsidies on fossil fuelAggravates the achievement of environmental objectives.
Reason Such interventions create Market distortions.
Correct answer R right and explains A

More fodder:

Indian manufacturing technology puts a heavy stress on the environment- via intensive resource and energy use.

Significant polluters result
  • Petro refine
  • Iron-Steel
  • Metallic mineral extraction
  • Fertilizer
  • Cement.
  • Small scale Foundries, brick making etc.
  • Resource depletion
  • Contamination of air, water and land
  • Biodiversity loss
  • Health hazards

Appendix

some related topics in current affairs:

#1: Desi Liquor Solar subsidies =Anti-WTO, says USA

  • Under Jawaharlal Nehru National Solar Mission, Government has made specific guidelines for “local sourcing” i.e. some of the solar equipment must be procured from desi companies only. also called “Domestic content requirement” (DCR)
  • So, indirectly the American (And any other foreign products) are eliminated from competition.
America accuses India defends
  • Earlier India used to import thin solar films from outside.
  • But in Nehru Solar mission (phase II), Indian government specifically made guidelines that thin solar films must be procured from desi players
  • This is one type of non-tariff barrier = you’re violating WTO agreement.
In many states of USA, you’re also doing the same against our solar panels. So, this is tit-for-tat.
As per WTO’s Government Procurement Agreement, you cannot “discriminate” between desi vs foreign players while procuring goods/services for government projects. But we’ve not signed that stupid agreement!
You’re running a vendetta to hurt American businessmen.
  • We only want to protect Indian businessmen.
  • In past we’ve even imposed anti-dumping duty on Chinese and Indonesian solar companies.
  • So far we’ve not impose such duties on American businessman.
Our solar panels are of higher quality and cheaper price than your bogus desi products.
  • On that logic, if we continue buying everything American for Government projects, then our local industry will never develop,
  • because they won’t make good profits to invest in R&D. We must attain self-reliance for energy security.
  • So even if it means using public money on expensive desi products- that’s fine.
  • Public money should not be used to pay for imports- but to develop domestic production capacity.

What happened next?

  • 2014: USA complained to WTO. WTO asked both parties (India-US) to find a solution through (informal) talks/consultation with 60 days deadline.
  • But talks did not lead to satisfactory outcome.
  • May 2014: USA asked to WTO form a dispute settlement panel and adjudicate this like a court matter.
  • July 2014: onwards it’s just taarikh pe taarikh.
  • Aug 2014: US envoy on climate change meets our Environment minister. Only Lip service on dispute. Their main agenda is to sign energy efficiency projects for those “SMART CITIES”.

#2: Ecuador oil drilling in Yasuni Park

  • Amazon Rainforests= lungs of the world
  • Ecuador found large reserve of oil near Amazon basin – Yasuni National Park.
  • Yasuni national park – UNESCO Biosphere reserve. Has two primitive uncontacted tribes (Kichwa and Waorani tribe)
  • Park has more biodiversity than entire North America
  • 2007: Ecuador Government asked world to give money, in exchange of not drilling the oil and harming environment.
  • So far, hardly 13 million$ received. Government wanted >3.5 billion$.
  • Therefore, Government decided to start oil drilling in Yasuni National park.

#3: Tar balls

  • Tar balls are lumps of petroleum
  • How are they formed? Oil spillage from tankers. Regular ships discharging burnt-oil into sea.
  • This oil reacts with sea-water=> tar balls formed.
  • Tar balls were washed ashore during the pre- and post-monsoon period along the Konkan belt Goa, Karwar in Karnataka and south Ratnagiri in Maharashtra.
  • Why problem? Tar balls harmful for marine organism. They have foul smell, sticky to walk on=beach tourists decline.
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72 Comments on “[Economic Survey] Ch12: Sustainable Development, Millennium Development Goals, MDG, SDG, NAPCC, WTO Solar subsidies”

  1. thanks mrunal bhai.

  2. Mrunal Sir
    1. Since the planning commission has been dissolved….does that mean 12th fyp is also gone.
    If 12th fyp is non existent then should I skip it for prelims???

    2. UPSC is still silent on removal of English only comprehension of 22 marks…will be advisable to attempt them in this prelim if UPSC stays silent on it till the end????

  3. Where I will get chapter no 8,9,10,11

  4. Sir ………some absurd images are appearing on your home page………may be some hackers attempt…….I am not sure whether these are visible to you but its happening

  5. anyone plz provide the list of ministries recently renamed by the new gvt.

  6. Sir I noticed a spelling mistake in the name of the commission that gave the definition of Sustainable Development, it is the Brundtland Commission, named after Gro Harlem Brundtland.

  7. yasuni park and tar ball

  8. Plz ans ..
    Which of the following are example of investment in an economy?
    1. Purchasing of share.
    2. Repairing the warehouse of a factory.
    3. Buying an insurance policy.
    4. Purchasing machines and tools by a company.
    Select the correct ans. From the codes given below:
    (A) 1 and 2 only
    (B) 2 and 4 .
    (C) 1 and 3
    (D) all of the above .

    1. investments are primarily measured interms of gross capital formation. Shud be 2 & 4.

      1. U r ryt …bt I have a doubt ? Y not buying an insurance policy..bcz when v purchase a policy to iska paisa b to indirectly khi na khi invest hi hota hai na

        1. Usually the money we put in insurance policy goes into instruments like Mutual funds and other equity/debt instruments. They form portfolio investments and hence cannot be necessarily be considered contributory towards CAPITAL FORMATION, where capital is one of the factors of production apart from land, labour, entrepreneurship.

  9. @ Mrunal kudos to u for this commendable work, I wud like to point some minute corrections in the above article:
    1. as per economic survey 400 million or 40 crore ppl in India don’t have access to electricity, and its 80 crore figure for firewood cooking

    2.In Gef utilization its $ 477 million ~=50 crore not 5 crore.

    was just going thro survey so noticed these inadvertent mistakes…..

  10. Dear Sir,
    I have a doubt regarding who can participate in Carbon Trading?
    (In JI both are Annex B, While in CDM one is Annex B and other non-annex)
    Isn’t it that only Annex B countries are given quotas such as AAU etc and hence only they can participate. In that case How can India register 115, highest Carbon trading projects?
    Thank you

  11. Thanks a lot sir.

    One small correction sir,
    40 and not 4 crore Indians don’t have electricity in their homes
    80 and not 8 crore Indians still use firewood for cooking

  12. Thanks for all your support.

  13. Thanks a lot for the wonderful effort in helping students.. Much appreciated.. !

  14. Hi Mrunal, I could not understand the sentence—-‘Thanks to NAPCC (national action plan for climate change), we’ve reduced the CO2 emission per GDP unit by 20%’……can you please elaborate

  15. guys …all the best….
    concentration of mind just on 24 August….

    and don’t know any things….

    may Almighty invigorate such energy at penultimate to everyone at this chaotic junction to concentrate all energy at one juncture…
    all the best frds..
    kamesh

  16. Sir, the two uncontacted tribes living in the yasuni national park are tagaeri and taromenan.

  17. can i refer these notes for ias 2017 plzzzzzzzzzzzzzzzzzzz guide me

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