Climate Finance Taxonomy

2024 Union Budget: Climate Finance Taxonomy

Key Highlights:

• Introduction by Finance Minister: The 2024 Union Budget includes the development of a taxonomy for climate finance to enhance capital availability for climate adaptation and mitigation.

What is a Climate Finance Taxonomy?

• Definition: A classification system identifying sustainable economic activities.
• Purpose: Guides investors and financial institutions to direct capital towards climate-friendly projects.

Significance of a Climate Finance Taxonomy

1. Net-Zero Economy Transition: Helps countries shift to a net-zero economy amidst rising global temperatures.
2. Alignment with Transition Pathways: Ensures economic activities align with credible, science-based transition paths.
3. Deployment of Climate Capital: Boosts investment in sustainable projects.
4. Reduction of Greenwashing Risks: Provides clear criteria to identify sustainable investments, reducing greenwashing.

Why India Needs a Green Taxonomy

• Financial Requirements: India needs $10.1 trillion to achieve net-zero by 2070.
• Standardization of Investments: Public investments alone are insufficient; standardization is needed to attract private and international funds.

Benefits for India

1. Attracting Climate Funds: A taxonomy can draw more international climate funds.
2. Addressing Green Finance Shortfalls: Clarifies sustainable activities, boosting green finance flows which currently account for only 3% of total FDI.

India’s Climate Commitments

• Net-Zero by 2070: Aim to achieve net-zero emissions.
• Emission Reduction: Reduce GDP emission intensity by 45% by 2030 (compared to 2005 levels).
• Renewable Energy Goals: Achieve 50% electric power capacity from non-fossil fuels by 2030.

Steps Taken by India

1. Task Force on Sustainable Finance (January 2021):
   • Create a sustainable finance framework.
   • Draft taxonomy of sustainable activities.
   • Develop risk assessment framework for the financial sector.
2. RBI Initiatives:
   • Joined the Central Banks and Supervisors Network for Greening the Financial System (NGFS) in April 2021.
   • Member of the Basel Committee on Banking Supervision task force on climate-related financial risks.

Potential for Green Investments in India

• Climate-Smart Investment Potential: $3.1 trillion from 2018 to 2030.
• Electric Vehicle Segment: Largest opportunity with $667 billion potential.
• Renewable Energy Sector: Substantial investment opportunity estimated at $403.7 billion.

International Adoption of Taxonomies

• Countries with Developed Taxonomies: South Africa, Colombia, South Korea, Thailand, Singapore, Canada, Mexico, and the European Union.

By implementing a climate finance taxonomy, India can enhance its climate adaptation and mitigation efforts, align with international standards, and attract the necessary investments to achieve its climate goals.

BHIL PRADESH

Demand for ‘Bhil Pradesh’ in Rajasthan

Recent Developments:

• July 18 Gathering: Large assembly at Mangarh Dham in Banswara, Rajasthan, called for creating “Bhil Pradesh.”
• Proposed Area: Encompasses 49 districts from Rajasthan, Madhya Pradesh, Gujarat, and Maharashtra, including 12 districts from Rajasthan.

Background:

• Frequent Demands: Tribal leaders have long advocated for Bhil Pradesh.
• BAP Involvement: Bharat Adivasi Party (BAP), formed last year, is actively championing this cause, bolstered by recent Lok Sabha poll performance.

Details of the Demand:

• Geographical Scope: Bhil Pradesh would cover 49 districts across Rajasthan, Madhya Pradesh, Gujarat, and Maharashtra.
• Census Data: 1.7 crore Bhils in India; largest concentrations in Madhya Pradesh (60 lakh), Gujarat (42 lakh), Rajasthan (41 lakh), and Maharashtra (26 lakh).
• Cultural and Linguistic Basis: Supporters argue for a separate state based on shared geography, culture, and language, similar to Gujarat and Maharashtra.

History of the Demand:

• Early Advocacy: Demand dates back to 1913, initiated by Govind Giri Banjara, a tribal activist and social reformer.
• Historical Event: Govind Giri mobilized thousands of tribals at Mangarh Hill, resulting in the massacre of around 1,500 tribals by the British on November 17, 1913.
• Continued Advocacy: Various tribal leaders have continued to voice the demand for a separate Bhil state over the years.

Constitutional Provisions:

• Article 3 of the Constitution:
  • Assigns Parliament the power to form new States.
  • Methods: Separating territory from a State, uniting States or parts of States, and altering State boundaries or names.
  • Checks on Parliament’s Power:
    1. President’s Recommendation: A bill for forming new States must be recommended by the President.
    2. State Legislature’s Views: The President must refer the bill to the concerned State Legislature for its views if it affects the areas, boundaries, or names of States. Parliament is not bound by these views.

By advocating for Bhil Pradesh, the Bhil community seeks recognition and autonomy, drawing parallels with historical and contemporary state formations based on cultural and linguistic identities.

U – WIN

Government’s 100-Day Health Agenda: U-WIN Rollout

Overview:

• Initiative: Nationwide rollout of U-WIN, an online vaccine management portal for childhood vaccination.
• Inspiration: Similar to CoWIN used during the Covid-19 pandemic.
• Current Status: Piloted in several states, national implementation imminent.

What is U-WIN & How Does It Work?

1. Registration:
   • Eligibility: Children up to six years and pregnant mothers.
   • Method: Using government ID like Aadhaar and mobile numbers.
   • Data Recorded: All 25 childhood vaccines and two vaccines for pregnant mothers.
2. Vaccination Records:
   • Certificate Generation: Checkered vaccination certificate with color-coded vaccines.
   • Update Mechanism: Dates of administered vaccines are recorded, and due dates for the next doses are shown.
   • Reminders: Automated reminders sent to parents before the next dose is due.
   • Digital Certificate: Downloadable by parents, eliminating the need for a physical vaccination booklet.
3. Access and Portability:
   • Locate Centers: Use U-WIN to find the nearest vaccination center and book slots.
   • Health Worker Support: Generates due-list of children for health workers in their areas.
   • Portability: Enables vaccination continuity across the country, beneficial for children of migrant workers.
4. Additional Features:
   • Birth Registration: Records all births, initial vaccines, birth weight, and physical deformities.
   • Integration with ABHA: Connects digital records through Ayushman Bharat Health Account (ABHA) ID.
   • Inventory Management: Linked to eVIN platform for tracking vaccine inventory, usage, waste, and storage conditions.

Benefits of U-WIN:

1. Improved Compliance: Automated reminders likely to increase vaccination adherence.
2. Portability: Ensures children can continue their vaccination schedule anywhere in the country.
3. Error Reduction: Reduces errors by health workers in maintaining records.
4. Detailed Data: Provides granular, individualized immunization details across the country.
5. Zero Dose Reduction: Helps identify and vaccinate children who have not received any vaccinations.
6. Policy and Implementation: Centralized database facilitates better policy-making and program implementation in the long-term.

INTERNATIONAL COURT OF JUSTICE

ICJ Ruling on Israel’s Occupation

Key Point:

• ICJ Statement (July 19): Israel’s occupation of the West Bank and East Jerusalem violates international law; presence should end promptly.

Background:

• Historical Context: Israel has occupied the West Bank and East Jerusalem since the Six-Day War in 1967. Prior to 1967, these territories were under Jordanian control.

About the International Court of Justice (ICJ)

1. Establishment and Role:
   • Principal Judicial Organ: The ICJ is the main judicial organ of the United Nations (UN).
   • Founding: Established in June 1945 by the UN Charter, began work in April 1946.
   • Predecessor: Successor to the Permanent Court of International Justice (PCIJ) established in 1922 under the League of Nations.
2. Location and Language:
   • Based: Peace Palace, The Hague, Netherlands.
   • Languages: English and French are the official languages.
3. Function and Jurisdiction:
   • Primary Functions:
     • Settle legal disputes submitted by states in accordance with international law.
     • Provide advisory opinions on legal questions referred by authorized UN organs and specialized agencies.
   • Representation: The court must represent the main forms of civilization and principal legal systems globally.
   • UN Membership: All UN members are parties to the ICJ statute, but the ICJ has jurisdiction only if both parties consent.
   • Final Judgments: Judgments are final and binding, with no provision for appeal, though they can be subject to interpretation or revision if new facts are discovered.
   • Enforcement: The ICJ lacks means to ensure compliance, relying on the willingness of countries to abide by its orders.
4. Composition:
   • Judges: 15 judges elected to nine-year terms by the UN General Assembly and Security Council, which vote separately but simultaneously.
   • Election: A candidate must receive a majority of votes in both bodies to be elected. A third of the court is elected every three years.
   • Indian Members: Four Indians have served as ICJ judges so far.

Summary

• ICJ Ruling: Calls for the end of Israel’s occupation of the West Bank and East Jerusalem, citing violation of international law.
• ICJ Overview: Principal judicial organ of the UN, established in 1945, based in The Hague, tasked with settling legal disputes between states and providing advisory opinions. Its judgments are final and binding, though it has no means to enforce compliance.