Oct 16th 2024 Current Affairs

Index:

1. Greenwashing Guidelines

Introduction:

  • Greenwashing refers to companies making false or exaggerated claims about their products being environmentally friendly or climate-friendly.
  • The Centre has released guidelines to regulate and prevent greenwashing by making it mandatory for companies to substantiate their environmental claims with scientific evidence.

 

Key Guidelines for Prevention and Regulation of Greenwashing:

  • Issued by the Central Consumer Protection Authority (CCPA) under the Consumer Affairs Ministry.
  • Aimed at restraining false or misleading environmental claims, especially those related to exaggerated eco-friendliness in advertisements.
  • Complement existing Guidelines for Prevention of Misleading Advertisements and Endorsements (2022).

 

What is Greenwashing?

  • Greenwashing includes misleading claims about products or services being eco-friendly.


Examples include companies advertising their operations or products as being carbon-neutral, environmentally sustainable, or climate-positive without sufficient evidence.

Recent Developments in Greenwashing:

  • Global concern: Rising corporate and governmental claims of sustainability with insufficient action.
  • Example: The Volkswagen emissions scandal (2015), where false claims were made about the company’s environmental impact.
  • Several countries like the EU, US, China, and Brazil have initiated steps to curb greenwashing.

 

Six Principles for Trustworthy Environmental Claims:

  1. Truthfulness & Accuracy: Environmental claims must be backed by verifiable information and scientific evidence.
  2. Clarity & Unambiguity: Avoid vague terms like “green” and “clean.” Use specific language that consumers can easily understand.
  3. Fair & Meaningful Comparisons: Any product comparisons should be based on relevant and verifiable data.
  4. Make Relevant Claims: If a claim is about a specific part of a product or service, this should be clearly disclosed.
  5. Imagery: Misleading images or visuals that suggest an environmentally friendly aspect should be avoided.
  6. Evidence-based: All claims should be supported by adequate scientific evidence and appropriate certifications.

 

Important Aspects of the Guidelines:

  • Misleading Terms: Vague and broad terms like “green,” “eco-friendly,” or “sustainable” cannot be used unless supported by adequate data.
  • Zero-net targets: Companies aiming for zero-emission or net-zero targets must back their claims with evidence or certification by independent third parties.

 

Impact of the Guidelines:

  • Transparency: Companies need to be transparent about their environmental impact to avoid penalties.

Consumer Awareness: Helps consumers identify genuine eco-friendly products.

2. India-Canada Diplomatic Tensions and Impact on Business Relations

  1. Background and Recent Diplomatic Escalation:
  • India expelled six Canadian diplomats and recalled its High Commissioner following strained diplomatic ties.
  • Escalation likely to impact bilateral business ties, including investments, remittances, and the stalled Free Trade Agreement (FTA) negotiations.
  • India-Canada relations have seen increased tensions, which might affect economic cooperation and future agreements.

 

  1. Free Trade Agreement (FTA) Negotiations:
  • Negotiations on a modern FTA, which would have boosted Indian exports of garments, leather, machinery, and services, have paused.
  • Canada and India were exploring ways to enhance economic integration, but current tensions jeopardize these efforts.

 

  1. Canadian Investments in India:
  • Canadian Pension Funds have significant investments in India, totaling over $75 billion, particularly in sectors such as:
    • Financial Services
    • Infrastructure
    • Real Estate
    • IT and Energy
  • Companies like Tim Hortons and McCain Foods represent Canadian brand presence, but larger investments come from Canadian Pension Plan Investment Board (CPPIB) and Caisse de dépôt et placement du Québec (CDPQ).
  • CPPIB holds stakes in major Indian firms like Kotak Mahindra Bank, Paytm, and Zomato.
  • CDPQ considers India a strategic market, with over $6 billion invested.

 

  1. Trade Relations:
  • India’s Exports to Canada: Gems, jewellery, pharmaceuticals, garments, mechanical appliances, and chemicals.
  • India’s Imports from Canada: Pulses, wood pulp, potash, newsprint, and minerals.
  • Despite diplomatic tensions, bilateral trade is relatively small, contributing 1% to India’s overall trade. Major imports like pulses can be sourced from alternative countries like Australia.
  1. Impact on Remittances:
  • Canada ranks among the top 10 sources of remittances to India, contributing 0.6% of India’s total inward remittances.
  • In 2023, India received $125 billion in global remittances, a significant share from the Indian diaspora in Canada.
  • The Indian diaspora, comprising skilled professionals and students, plays a key role in sustaining remittance flows.

 

  1. Indian Diaspora in Canada:
  • India has a strong migrant presence in Canada, with over 427,000 Indian students, constituting nearly 40% of all international students in Canada.
  • Immigration from India to Canada saw a 326% increase between 2013 and 2023, which may now face challenges due to diplomatic strains.

 

  1. Economic Alternatives and Global Context:
  • India’s trade and investment opportunities with other countries, like Australia (for pulses) and the EU (for broader trade cooperation), may help offset potential losses from disrupted Canada ties.
  • Canada’s investments, if halted, might be rerouted through alternative hubs like Singapore, Hong Kong, or UAE.

 

  1. Strategic and Economic Implications:
  • The tensions may slow FDI inflows from Canada, though India’s large market and global interest may reduce the long-term impact.

Ongoing FTAs with other countries, including the EU and UK, might present compensatory opportunities for trade diversification.

3. Spectrum Allocation for Satellite Internet

Context:

  • India’s Telecommunications Act, 2023 provides the framework for spectrum allocation in the country.
  • The government has decided to administratively allocate satellite internet spectrum rather than auctioning it, leading to differing opinions among key players like Reliance Jio, Starlink, and Amazon’s Kuiper.

 

Key Developments:

  • Union Communications Minister Jyotiraditya Scindia confirmed that satellite communication (satcom) spectrum will be allocated administratively, which aligns with international practices.
  • This decision is seen as a win for global satellite companies like Starlink and Amazon Kuiper, but a setback for Reliance Jio, which advocates for an auction-based process.

 

Key Stakeholders and Their Positions:

  1. Reliance Jio:
    • Pushing for auctioning satellite spectrum, arguing that it should follow the same process as telecom spectrum.
    • Earlier raised the issue with the Department of Telecommunications (DoT), opposing administrative allocation.

 

  1. Starlink (Elon Musk) and Amazon Kuiper:
    • Favor administrative allocation, as spectrum for satellites is designated as shared spectrum by the International Telecommunication Union (ITU).
    • Musk mentioned that auctioning shared spectrum would be unprecedented
  2. Bharti Enterprises/OneWeb:
    • Earlier supported administrative allocation to promote investment and competitive pricing.
    • Sunil Bharti Mittal recently stated that satellite companies providing services in urban areas should purchase spectrum and adhere to the same obligations as telecom operators.

 

Arguments for Administrative Allocation:

  • Shared Spectrum: Satellite spectrum is shared globally, making it difficult to price and auction individually.
  • Global Practice: Most countries administratively allocate satellite spectrum, so India is aligning with global norms.
  • Costing Formula: The Telecom Regulatory Authority of India (TRAI) will determine the cost formula for satellite spectrum allocation.

 

Arguments for Auctioning Spectrum:

  • Level Playing Field: Reliance Jio and others argue that satellite operators serving urban and retail customers should compete on equal terms with telecom operators by buying spectrum.
  • Market Conditions: Telecom companies face strict regulations, including spectrum fees, licensing, and network security obligations, and argue satellite operators should do the same.

 

Implications for the Sector:

  • High-Profile Competition: The decision has set the stage for a competitive landscape between major satellite internet players (Starlink, Kuiper) and domestic telecom operators (Reliance Jio, Bharti Airtel).
  • Investment & Rollout: The administrative route may encourage foreign direct investment (FDI) in the satellite communication sector, with players like OneWeb looking to expand in India.

Urban vs Rural Divide: Companies like OneWeb could be expected to follow telecom-like regulations in urban areas, while administrative allocation may be used for rural and underserved regions.

4. Yield and Agriculture Metrics

Introduction:

  • India’s agricultural focus has traditionally been on yield (output per unit of land, usually measured in kg/hectare).
  • Historically, this emphasis on yield ensured food security for a growing population post-independence.
  • However, focusing solely on yield may have unintended negative consequences on nutrition, environmental sustainability, and farmer incomes.

 

Challenges of Yield-Centric Agriculture:

  1. Nutritional Deficiencies:
    • High-yielding varieties (HYVs) of rice and wheat have been developed at the expense of their nutritional profile.
    • ICAR Study: HYVs show a decrease in zinc (33% in rice, 30% in wheat) and iron (27% in rice, 19% in wheat).
    • As a result, India faces serious micronutrient deficiencies, with 33% of children under 5 stunted and 66% anemic (National Family Health Survey).

 

  1. Economic Costs:
    • The belief that maximising yields leads to maximising farmer incomes is not always true.
    • Declining fertilizer efficiency: Farmers need more fertilizers for the same yield, reducing their profits. Fertilizer response has dropped by over 80% since the 1970s.

 

  1. Biodiversity Loss:
    • Green Revolution: Led to the dominance of a few high-yielding varieties, causing a loss of biodiversity. India lost about 104,000 rice varieties.
    • This has reduced agricultural resilience, especially with climate change intensifying floods, droughts, and heatwaves.

 

  1. Neglect of Indigenous and Nutritious Crops:
    • The focus on rice and wheat has led to a 10 million hectare decline in land for millets (coarse cereals), which are more nutritious and climate-resilient.
    • Reduction in the diversity of crops impacts the nutritional diversity of the average Indian diet.

 

Need for a New Agricultural Paradigm:

  1. Nutritional Output per Hectare:
    • A shift from yield per hectare to nutritional output per hectare would ensure that agriculture contributes to nutritional security alongside food security.
  2. Water and Soil Management:
    • Indicators like water-use efficiency and soil health (including soil organic carbon levels) should be prioritised.
    • Projects like AI-based Saagu Baagu in Telangana’s Khammam district focus on improving water use efficiency and farm biodiversity using real-time data.
  3. Diversity in Crops and Income:
    • Agricultural indicators should also include measures of crop diversity (both at the farm and regional level) and income diversification (intercropping, livestock).
    • Example: Intercropping sugarcane with vegetables like chilli, tomato, and coriander in Andhra Pradesh provided year-round income
  4. Sustainability of Agriculture:
    • Agriculture success should be measured by its ability to nourish people, sustain livelihoods, and protect the environment.
    • Metrics like soil biological activity, biodiversity scores, and water use need to be mainstreamed in agricultural policy.

 

Proposed Agricultural Indicators:

  1. Nutritional output per hectare: Measure the quantity of nutrients produced (rather than just kg of output).
  2. Soil health: Include metrics like soil organic carbon in soil health cards to improve long-term soil fertility.
  3. Water-use efficiency: Focus on efficient irrigation and water management practices.
  4. Crop and Landscape Diversity Scores: Track the variety of crops grown at both the farm and regional levels, reducing susceptibility to price shocks and pest attacks.

Income diversification: Measure the economic resilience of farmers through multiple income streams like intercropping and livestock rearing.

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