Climate financing
In all convention/conferences/protocols related to environment, climate change, wildlife protection and biodiversity: there are three gangs with three motives.
Gang | What do they want? |
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We are victims= Give us CA$H. |
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US,EU should pay them CA$H. |
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Why should we pay all CA$H? China and India should also do something! |
So, What is the Common Factor here? CA$H.
Whether you want to promote sustainable development, or you want to reduce green house gases (GHG) emission or you protect biodiversity or you want to win election you need truckload of CA$H.
We can classify the cash streams based on who is the prominent player
Government | Market |
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Taxation
An āenvironmentā or āgreenā tax is imposed on a product that damages the environment, to reduce its production or consumption. This is in line with the āpolluter pays principleā.
Benefits of Environment taxes
- They internalize environmental costs into prices. Thus, they help signal the structural economic changes needed to move to a more sustainable economy
- deters actions that lead to environmental damage
- encourages innovation and development of new technology
- Government can use the revenue raised by environmental taxes for Development activities and thus reduce the level of other taxes (e.g. income tax or excise duty on medicines.)
Letās take look at governmentās initiatives in this regard.
Coal Cess |
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Higher excise duty on SUVs |
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Subsidies
Destructive to environment
When Government provides subsidies on diesel, kerosene, fertilizers: often they pose a threat to the environment. for example
- Cheap diesel
- Menace of SUVs= air pollution.
- Excessive use of diesel pump sets = groundwater depletion.
- Use of tractor as a transport vehicle.
- Cheap fertilizer = excessive use= soil degradation.
- Cheap kerosene = mixed with petrol = air pollution.
Hence there is need to rationalize subsidies to make sure they donāt create havoc on environment.
Funds and Technology Transfers
- To reduce GHG emission, weāve to replace the obsolete and inefficient systems with more energy-efficient and clean technologies.
- But the Micro, Small and Medium Enterprises (MSMEs) donāt make huge profits so they tend to employ cheap and inefficient technologies= more pollution.
- Therefore, Government needs to setup separate funds to assist these MSME industries to upgrade to clean technologies + to encourage more R&D in clean energy.
Funds
Only listing the prominent ones
International Funds
UN-REDD Program |
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Green Climate Fund |
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Least Developed Countries Fund |
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Climate Investment Funds (CIF) |
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Desi Funds
National clean energy fund (NCEF) |
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Compensatory Afforestation Fund |
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National Gene Fund |
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Market Based
PAT
- PAT = Perform Achieve and Trade
- PAT comes under the National Mission for Enhanced Energy Efficiency (and that mission comes under National Action Plan On Climate Change).
- PAT is a scheme for trading energy-efficiency certificates (ESCerts) in large energy-intensive industries.
- Basics explained in the article on 11th Chapter click me
- In the Twelfth Five Year Plan, the PAT scheme is likely to achieve about 15 million tonnes oil equivalent of annual savings in coal, oil, gas, and electricity.
- Some experts argue that PAT is not very effective because it is one type of “cap-n-trade” scheme. Instead of that, we just should just put some type of carbon tax on the polluters.
Cap n Trade vs Carbon Tax
let’s compare their pros and cons.
Cap-and-Trade | Carbon tax |
Here Government allows industries emit xyz tonnes of CO2. But if you emit less than that amount, you get certificate and you can sell it to another company that has overshoot its emission quota/cap/limit. | Youāve to pay tax directly proportional to yourĀ CO2 emission. |
It uses free market to reduce emission. | It uses taxation to reduce emission. |
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Certainty to both company and government. (because for āXā tonnes of CO2 emission, company will have to pay āYā rupees as carbon tax.) |
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Taxation sends clear signals and impetus for behavioral changes. |
Need to create a market monitoring agency to supervise the trade of those permits/certificates. | Can be collected by existing Tax authorities. |
This leaves out many small, medium or unregistered organizations (who together may release significant portion of the emissions). | Carbon tax covers the entire economy, including households and other units impossible to reach in a cap-and-trade mechanism. Because increase in tax affect the price of product, consumer behavior and many units indirectly associated with the sector. (e.g. car mechanic, numberplate painter.) |
Can be more easily manipulated to allow additional emissions. For example, if permits become too pricey, then government might have to sellĀ or distribute more permits to keep the price āreasonableā. | Less chances of manipulation. Because government will need parliamentās approval to change taxes. |
Political pressures and lobbying could lead to different allocations of allowances. For example if Automobile companies give more āelection donationā to ruling party then government will increase their āQuota/cap/limitā for CO2 emission. | Political pressures and lobbying could lead to exemptions of sectors and firms. Example again if Automobile companies give more āelection donationā to ruling party then government might exempt the whole automobile sector from carbon tax. |
RPO
RPO target define how much electricity in the country is estimated to be produced from renewable energy sources (=green electricity)
Year | %Green electricity (in total electricity production) |
2009 | 5 |
2012 | 7 |
2020 | 15 |
- Under RPO mechanism, the DISCOMs, Captive Power Plants, and Open Access Consumers have to purchase certain the minimum level of renewable energy (out of total consumption).
- State Electricity Regulatory Commission (SERC) look after this matter.
Renewable Energy Certificates (RECs)
- They are provided under the RPO mechanism
- They enable the obligated entities (DISCOMs, Captive Power Plants, and Open Access Consumers) to meet their Renewable Purchase Obligation (RPO).
- Those obliged entitles can trade surplus or deficit RECs among themselves and the owner of the REC certificate can claim that he has purchased renewable energy.
Green National Accounts
- 2011: Govt. setup an expert group under Prof. Sir Partha Dasgupta (of Cambridge univ.) to develop framework for Green National Accounts for India
- We need green national accounts because the contemporary national accounts are unsatisfactory basis for economic evaluation. Because they donāt consider the full environmental consequences of economic Development.
- system of green national accounting would
- take into account the environmental costs of development
- reflect the use of precious depletable natural resources in the process of generating national income.
Clean Energies
Nuclear
- Nuclear power is considered an important source for low carbon power generation.
- India has ambitious plans in nuclear power through a combination of
- Light Water Reactors,
- Heavy Water Reactors
- Fast Breeder Reactors.
- However, global concerns regarding safety of nuclear power following the Fukushima nuclear accident in 2011 have slowed down nuclear power capacity addition: both in India and abroad.
- Need to address public concerns about safety of nuclear power and expedite the projects.
Wind Power
- Electricity generated by a wind turbine is highly sensitive to wind speeds.
- Therefore global practice is now to build towers in the range of 80ā120 m, it significantly increases the power generation potential.
- Size of wind turbines has increased. Earlier turbines were typically less than 1 MW, the recent designs go up to over 5 MW
- Taking these into consideration, the wind potential in India is now estimated at about 103000 MW for 80 m hub height.
- India also has considerable off-shore wind potential, particularly in Tamil Nadu and Andhra Pradesh-which is yet to be exploited.
- We could safely target a wind capacity addition of 30000 MW by 2020.
Wind power: Challenges
Not uniformly distributed
- wind potential is unevenly distributed across the country; only Karnataka, Tamil Nadu, Andhra Pradesh, Maharashtra and Gujarat have significant potential.
- Therefore, if we want to utilize wind potential, we need careful regional level planning and coordination.
- Hence We need to set up a National Wind Energy Mission, similar to the National Solar Mission for effective formulation and implementation of policies both at the National and State levels
Variation
- Wind power has significant seasonal and even intra-day variations. It may lead to a situation, where
- either the wind generation cannot be utilized,
- or when the wind suddenly dies down,
- Thus the loss of electricity generation will impact grid stability and operation.
- So we need to complete the Wind capacity addition by other energy sources, which have a quick ramp-up time. For example pumped storage hydro, open-cycle gas turbines, compressed air and high power density batteries.
Solar Power
So far not been effective in augmenting rural power generation, because
Lack of huge profit
- developers have found it difficult to get reasonable returns on their investments in solar power projects.
- They are unable to collect adequate revenues to cover operating expenses (despite the initial capital subsidy given by Government.)
Banks not giving loans
- Problem: Local banks are reluctant to provide financing for solar projects. because they fear company will default on the loans.
- Solution: The government should immediately classify solar power projects as āpriority lendingā so that banks start giving it due importance.
Technology
At present there are two main technologies for solar cells
crystalline silicon | Expensive but dominates the global market |
thin-film systems | If more R&D is done, this can become way efficient than crystalline silicon. |
- Rapidly growing telecom sector provides an excellent synergy for augmenting solar power in rural areas.
- At present there are close to 0.2 million telecom towers and about 40 per cent of these are in the rural areas. Solar power should be used to run them.
Mock Questions
- āSustainable Development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.ā This definition was given by
- UNFCC
- UNESCO
- Brundtland Commission
- None of above
- What is the theme of 12th FYP?
- Faster, More resilient and inclusive Growth
- Rapid, More sustainable and resilient Growth
- Faster, More Inclusive and Sustainable Growth
- None of above
- Which of the following is not a direct mission under NAPCC?
- National mission on Sustainable Habitat
- National mission on Strategic Knowledge for Climate Change
- National mission on reduction of Green house gas emission
- National mission for sustaining the Himalayan Eco System
- What is the purpose of National mission for Green India?
- Incorporate green technologies in Industries.
- Incorporate green technologies in residential and commercial buidlings
- Increase R&D spending for eco-friendly and energy efficient vehicles and electricity appliances.
- None of above.
- What is India’s voluntery committment for climate change?
- by 2015 India will reduce the GHG emission emission by 20-25% of 1990 level
- by 2020 India will reduce the GHG emission by 20-25% of 2005 level
- by 2020 India will reduce the GHG emission intensity of its GDP by 20-25% of 2005 level
- None of Above
- which of the falling subject is not part of the State list?
- Fisheries
- Prevention of Animal diseases
- protection of wild animals and birds.
- Taxes on animals and boats
- Correct Statements
- The Biological Diversity Act was enacted under the National Action Plan on Climate Change (NAPCC).
- National Action Plan on Climate Change (NAPCC) contains National mission on Coastal protection, as one of its 8 mission.
- Both
- None
- Correct Statements
- The prime source of money for Compensatory Afforestation Fund isĀ cess on petrol and diesel.
- National Gene Fund is meant for ex-situ conservation of medicinal plants in botanical gardens.
- both
- none
- Correct Statement about PAT (perform, Achieve and Trade) scheme
- It provides subsidy to MSME sector for increasing export.
- Is administred by DG export under Commerce Ministry.
- both
- none
- Partha Dasgupta Committee is associated with
- Western Ghats
- Himalayan Ghats
- Green National Accounts
- None of above
- Correct Statements
- Blended cement more emissions-intensive than ordinary Portland cement.
- Majority of the coal based power plants in India are based on Ultra super critical technology.
- Both
- None
- Energy Conservation Building Code
- is designed by Ministry of New and renewable Energy
- is meant for only residential buildings in India
- both A and B
- Neither A or B
- GRIHA stands for
- Green Rating by Indian housing association
- Green Rating for Integrated Housing Accreditation
- Green Rating for Integrated Habitat Assessment
- None of above
- SVA-GRIHA rating system is
- designed by CSIR
- for big industrial establishments in SEZ areas.
- Both
- None
- Bachat Lamp Yojana
- is a scheme developed by Ministry of New and Renewable energy
- Provides subsidy for buying solar based LED lamps.
- Both A and B
- Neither A or B
- Electro-luminescence is responsible for producing light in
- CFL bulbs
- Halogen lamps
- LED lights
- None of above
mrunal sir i would first like to thank u for all the efforts taken by you..i found it very fruitful. sir do u have any idea about vajram and ravi coaching institute?
i forgot my roll no. is there any way to find it please.
YOU CAN GET UR ROLL NO FROM YOUR ATTEMPTED UPSC QUESTION PAPER (IF YOU HAVE IN UR COUSTDY).
Just check your email inbox and Type UPSC in search box of your mail.
you will get access to ur last year UPSC admit card.
Hey Mrunal
Can you do this one thing regarding the Mock questions – provide answers in the Print Version. This will help in offline viewing.
Regards,
got 179, sc category,nt qualified
even iam sc.. got 178 not qualified… can u imagine the cut-off raisin from 165 in 2011 to 180+ in 2012
anyone who can insights as to how much more the cut off went..all thanks to mrunal..now i know what is the target i should be aiming rather than 165+
ya thts amazing…this year it is goin to b more high.in 2012 i made sm blunders in paper 1 that sanked me…
183 sc category, not qualified..
wow the cutoff really spiked for SC.. 185+ then i guess..
thats omre than 10% hike..
difference between general and sc goes on decreasing — in 2011 it was 33 (198-165), in 2012 it was less than 20 (gen cut off- 209 and people getting 185 not qualified)…. target should be 210+ for 2013
Chk on the top of your Question paper
Sir I can say only this much THANKS A LOT for your work.
plz also provide authentic answers with explanation of MCQ provided by u after every topic. thanks
plzz reccomend some good hindi medium coaching institutes in delhi…
sir can u plzz also tell the cutoff needed in fci paper 2 to clear it safely..
can u plz tell the exact meaning of epicfial…. and where we shouldn’t use the word…?
How much effective medium in IAS Mains.
mrunal bhai parnaam ,
a doubt in my mind hw does himalayan ecosys acts as CARBON SINK??
hi mrunal sir,after end of all 13 chapters of economic survey, May u post daily chapters of history , geography or any other subject of Ias syllbus.It will helps for us for the prepration of General studies topics
.
epic fail is a complete failure of a program intended to solve a particular problem.As in nutrient based subsidy scheme launched by GOI is an epic fail because the goal-of reducing excessive consumption of urea could not be achieved.
Explanation-Under Nutrient based subsidy scheme,prices of phosphatic and potash fertilizers were decontrolled with GOI sharing the cost partially in the form of subsidies to farmers.Net cost of above mentioned fertilizers still remained high as they were market determined.Hence Urea remained the preferred choice among the farmers and hence NBS-an EPIC FAIL!
Prabhakar is a state level cricket player.His average runs per wicket were 11.5 and in an inning ,he took 5 wickets for 22 runs and his new average became 11 runs per wicket. How many wickets had he taken before this innings?
????
the answer is 66.. before this match he had taken 66 wickets..
let before this match, he had taken ‘x’ wickets.
therefore, runs given = 11.5x
after this match,
new runs = 115x + 22,
and new no. of wickets = x+5
.
average = 11.5x + 22/ x+5 =11
now, solve for x..
U will get x = 66..
thanx. :)
Total wickets taken before this innings = x
Total runs taken before this innings = 11.5*x
New average = 11 = Total New Runs / Total New Wickets = (11.5*x+22)/(x+5)
=> (11.5*x+22)/(x+5) = 11
x = 66
Let’s check our answer:
Total Old Wickets = 66 (Answer to this question)
Total Old Runs = 759
Total Old Average = 11.5
Total New Wickets = 71
Total New Runs = 71
Total New Average = 11
Ideally in the exam you should be able to jump straight to the formula written in the 4th step above.
Can anyone tell me WHAT IS THIS NEGATIVE MARKING FUNDA….I mean how it is calculated ( upsc pt exam )plzzzzzzzzzzz explain me with so called “UDAHARAN”…. thanks
Paper I: 100 questions, 2 marks each, -1/3 of the marks of the question if you get it wrong
Out of 100 questions you attempt 65. 50 are right and 15 are wrong. Your marks:
Positive: 50 * 2 = 100
Negative: 15 * 2 / 3 = 10
Your score: +100 – 10 = 90
And that’s a pretty good score :)
For Paper II only difference is 80 questions and 2.5 marks each. Same logic for negative.
hey friends……. do anybody have idea of cut off marks in prelims 2012 for general as upsc has displayed the marksheet first time for prelims……. pls do reply if anybody has asked this by RTI to UPSC
Hi Mrunal,
What was official cut off for csat 2012 for obc category??
any one who got 209 and got thru prelims 2012…cudnt decide on cutoff.
superb…
Thank you so much……but someone told me that the method of calculation like, suppose i did 65 Qs and did wrong 15…then first subtract the 15 Qs out of 65 ie 65-15=50 and then subtract 15 again from 50 ie 50-15=35…now i got 35*2=70 and then subtract your negative marking, as u told 10…so the final marks i got is 70-10=60.. and i am sure it will be a DISASTER Marks
Can be done that way as well. However it’ll look like this:
Wrong number of questions = 15
Right number of questions = 50
Negative marking is 1/3rd of all wrong questions = 15/3 = 5
Subtract 5 from 50 to get NET CORRECT QUESTIONS = 45
Final marks scored are 90.
In your calculation you didn’t divide 15 by 3 and then went on to subtract 10 again from the total.
With 6 days left I suggest you focus on paper 2 now. Brushing up your aptitude and maths will yield higher returns.
(Mrunal’s aptitude series is brilliant)
thanks!
Sir please share answers
THANK YOU SO MUCHHHH……..your reply gave me a good relief and satisfaction…..
Amazing work with the economic survey. Thanks a lot.
A…—
B…—
C…1,2,3,5,6,9,10,13,16
D…4,7,8,11,12,14,15
RPO – Renewable Energy Purchase obligation
http://pib.nic.in/newsite/erelease.aspx?relid=58313
8 MISSSION OF N
Awesome Analysis⦠atleast it is understandable⦠Thank you so much!!