MHA extends FCRA Registration of NGOs

• The Ministry of Home Affairs extended the license expiration date of all FCRA-registered non-governmental organizations (NGOs) till June 30.

The Foreign Contribution Regulation Act—or FCRA—what is it?

• The FCRA controls foreign contributions and makes sure they don’t compromise national security.
• It was first passed in 1976, and a number of new regulations governing foreign donations led to its amendment in 2010.
• All organizations, associations, and NGOs who hope to accept donations from overseas must abide with the FCRA.
• All such non-governmental organizations must register with the FCRA.
• The registration is good for five years at first, and if all regulations are followed, it can be renewed.

What is the source of overseas donations?

“Foreign Contribution” refers to any donation, delivery, or transfer of any kind made by a foreign source, including any:

• article (with a maximum market value of one lakh rupees);
• money, both foreign and Indian;
• Securities
• Donations from governments, international organizations, businesses, trusts, corporations, and foreign nationals are examples of foreign donations.
• Nonetheless, several organizations are EXEMPTED from the definition of foreign contributors, including the UN, World Bank, IMF, and others.

Who is exempt from FCRA donation requirements?

Foreign donations are prohibited by the FCRA from being accepted by:

• Election candidates
• Editors and publishers of newspapers
• Judges and government employees.
• Political parties and members of legislature etc.

What was the recent Amendment?

In September 2020, the FCRA was modified to include the following new limitations:

• NGOs’ administrative costs are now limited to 20% of their foreign donations.
• According to the latest revision, they must hold an account with a Delhi Branch of the State Bank of India.
• Furthermore, it forbids giving grants obtained under the FCRA to any other organization.
• Additionally, it grants the Ministry of Home Affairs broad authority to revoke an NGO’s FCRA certificate.
• It made it lawful for political parties to use Indian corporations to accept foreign funding.
• A person’s registration may be halted by the government under the Act for a maximum of 180 days.
• Providing Aadhar is mandatory for all office bearers, directors or key functionaries of the organization.

How much should developed countries pay for climate action?

• In preparation for COP29 in Baku this November, global climate negotiators are drafting a new global climate finance budget as the climate bomb ticks closer to detonation.
• Developed nations pledged to spend $100 billion annually in 2009. But they were unable to accomplish that.

Context:

• At the COP 28 climate change summit in Sharm el-Sheikh in 2022, it was determined to create a Loss and Damage Fund.
• These monies would serve as a pledge to triple the amount of renewable energy produced globally by 2030 and to act as a “transition away” from fossil fuels.
• The first minister-level climate summit of the year ended on March 22 in Copenhagen, Denmark, after two days of discussions during which a “New Collective Quantitative Goal” was decided upon.

What is the New Collective Quantitative Goal (NCQG)?

• NCQG is the annual amount industrialized countries will need to collect starting in 2025 in order to fund climate action in developing countries.
• It must exceed the $100 billion that wealthy nations pledged to generate annually starting in 2020 but were unable to do so.

Collective Funds need to ensure effective Climate Action:

• UN Climate Change Report (2021): To carry out their climate action plans, poor nations will require about $6 trillion yearly between 2021 and 2030, according to a UN Climate Change report.
• In the Sharm el-Sheikh Agreement, estimation Estimates presented in the final Sharm el-Sheikh accord suggested that until 2050, the world’s transformation to a low-carbon economy may cost between $4-6 trillion yearly.
• Worldwide GDP As A Percentage: Although these figures differ, it is recommended that $5–7 trillion be spent annually to properly combat climate change. To do this, it would be necessary to allocate between 5 and 7% of the world’s GDP to climate action.
• Renewable Energy Capacity: The International Renewable Energy Association (IRENA) estimates that it will take $30 trillion by 2030 to achieve the goal of tripling renewable energy capacity, as agreed upon in Dubai.

Prospects for a Realistic New Annual Climate Finance Target:

• The UNFCCC, which is in charge of setting up climate conferences and assisting in the implementation of climate agreements, is currently experiencing a serious funding shortfall. Its present funding level is less than half of its budget, which makes it difficult for it to carry out its task.
• Call for Greater Climate Financing: Developed nations are being urged to provide far larger amounts of climate funding. For example, India has demanded that the New Collective Quantitative Goal (NCQG) be set at a minimum of $1 trillion annually.
• Need for Novel Funding Sources: In order to meet the significant financial requirements for climate action, Simon Stiell, Executive Secretary of the United Nations Climate Change, underlined the necessity for novel funding sources.
• Dependency on Contributions: In order to accomplish its mission, the UNFCCC mainly depends on donations from nations and non-governmental organizations.

 What will be done with this money?

• On-time Delivery: Achieving a significant impact requires the new cash to be delivered effectively.
• Transparent and Inclusive Monitoring: Developing nations stress the importance of having an inclusive and transparent procedure for keeping track of and calculating the agreed-upon amount.
• Distribution Across Needs: The new funding is distributed across different climate action areas such as mitigation, adaptation, and addressing loss and damage as per need

Solar surge: Moving away from imported solar panels

• The policy of an Approved List of Models and Manufacturers (ALMM), which is intended to deter developers of solar power projects from depending on imported panels, is finally being implemented by the government.

About Approved Models and Manufacturers of Solar Photovoltaic Modules Order, 2019:

• The goal is to increase the production of solar panels in the country by only registering those that use domestically produced polysilicon, wafers, and cells.
• Required Registration: In order to ensure that makers of solar PV modules and cells satisfy specific quality and production criteria, the directive requires manufacturers to register their products.
• Solar PV modules are included on LIST-I, and solar PV cells are listed on LIST-II.
• The only models and manufacturers that are deemed acceptable for use in various government projects and initiatives are those that are included on these lists.
• The National Institute of Solar Energy (NISE) has established eligibility standards that manufacturers must fulfill in order to be listed on the lists. These requirements are meant to verify that the products are truly made in the United States and are not imported.
• This order supports home production, guarantees the dependability of solar PV equipment used in installations, and supports government efforts to increase the use of renewable energy sources and improve energy security.

Government initiatives to support homegrown solar manufacturing:

• Import Restrictions: Since China controls a sizable share of the world market for solar supplies, the Approved Models and Manufacturers list was established with the intention of limiting imports from China.
• Ambitious Renewable Energy Targets: By 2030, India hopes to generate 500 GW of its electricity from non-fossil fuel sources, with solar power accounting for at least 280 GW of that total. This means that until 2030, at least 40 GW of new solar capacity must be added yearly. Thus, the need to prioritize indigenous solar projects

Challenges ahead:

• Unrealistic Goals: India has set very low goals for adding solar capacity recently, partly because of the COVID-19 virus, while having lofty goals. The nation wants to increase installations to 40 GW to 25 GW a year.
• Dependency on Imports: Imports account for a sizable portion of India’s solar installations, which has an impact on local panel makers who must pay for government certification but lose out to lower-cost Chinese panels in orders. For instance, there was a spike in solar panel imports in FY 24 of about $1,136.28 million compared to $943.53 million in FY 23.