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1992 United Nations Framework Convention On Climate Change (UNFCCC) 1997 Kyoto Protocol
1992 United Nations Framework Convention On Climate Change (UNFCCC) 1997 Kyoto Protocol
1992 United Nations Framework Convention On Climate Change (UNFCCC) 1997 Kyoto Protocol
The United Nations Climate Change Conference, COP20 or CMP10 will be held in Lima, Peru,
The Adaptation Gap report by the UN Environment Programme said the adaptation costs can be at
least two to three times higher than the current estimates of about $70-100 billion per year by
2050 even in the best case scenario.
The most important discussions have been focussed around INDCs, or Intended Nationally-
Determined Contributions, which is the main building block for the future climate treaty.
Each country has to report by next year (2015 Paris meet) what it intends to do to contribute to
the fight against climate change.
Developed countries are of the view that only actions that help in reducing greenhouse gas
be counted.
Developing countries also want efforts by developed ones on providing money or transferring
technology to poorer nations to be included in INDCs. This will help in holding the rich
countries (biggest culprits that contributed to the increase of GHG emissions since Industrial
Revolution) accountable to their promises on ensuring financial and technology flows.
2. Commitment Period:
India, European Union, China etc. are in favour of a 10-year commitment period. The idea is
that longer commitment period would ensure better predictability of actions, better actions, and
3. Ex-post Review:
Since the INDCs are nationally-determined and voluntary, the level of ambition in making
contributions is likely to be low. Some countries want an assessment of each countrys INDC to
see whether these are in line with the global 2 degree target. India and the United States
strongly resent any such provision, saying such an exercise will negate the nationallydetermined nature of the contributions.
What is an INDC?
During previous climate negotiations, countries agreed to publicly outline what actions they intend
to take under a global agreement well before the Paris Summit 2015. These country commitments
are known as Intended Nationally Determined Contributions (INDCs).
Since July, the relationship between the two countries has been strained over Indias growing
defence procurement from the U.S. even as Russia struggles with sanctions from the West.
India is unhappy with Russias new defence cooperation agreement with Pakistan, which marks a
significant shift from the past.
With just $10 billion in bilateral trade in 2013, India and Russia are not expected to meet their
target of $15 billion by 2015, but both sides are talking about a free trade agreement with the
Customs Union of Russia, Kazakhstan and Belarus as well as join energy exploration in Russian gas
fields.
India and Russia are like to sign nearly 15 agreements in defence, nuclear energy, customs,
banking and energy.
The countrys total renewable power installed capacity as on October 31, 2014, has reached 33
gigawatt (GW).
Wind energy accounts for 70 per cent of the installed capacity at 22.1 GW followed by biomass
power 4.2 per cent, small hydro power 3.9 GW and solar power 2.8 GW.
Renewable power sources in decreasing order of installed capacity (Important for Prelims)
1. Wind
2. Biomass
3. Small Hydro
4. Solar
A Boeing aircraft has completed the worlds first flight using green diesel, a sustainable biofuel
made from vegetable oils, waste cooking oil and animal fats.
Green diesel is chemically distinct and a different fuel product than biodiesel, which also is used in
ground transportation.
Sustainably produced green diesel reduces carbon emissions by 50 to 90 per cent compared to
fossil fuel
Green diesel or renewable diesel is a superior product with a higher cetane index than both
Notes: Biodeiesel and Green Dielsel are not the same. They are biofuels with molecular level structural
differences
Biodiesel
Biodiesel refers to a vegetable oil - or animal fat-based diesel fuel consisting of long-chain alkyl
Properties
Blends
Disadvantages
Biodegradable
Non-toxic
Safer to handle
Growing Chinas Influence in Indian Ocean
Softpower diplomacy by China in the Indian ocean region is a cause of concern to India
China has started a major water supply project in Sri Lanka, using soft power to deepen its
Maritime Silk Road (MSR), which will connect its Fujian province with Europe.
The MSR would transit through the Indian Ocean via India, Sri Lanka, Maldives, and Nairobi in
Kenya. It would terminate in Venice after crossing into the Mediterranean via the Suez Canal.
New Delhi is carefully observing Chinas growing relationship with Sri Lanka and Maldives two
After the economically crippling oil embargo of 1973, American Govt has strived hard to achieve
energy independence. (American Interference in middle east wars in 1970 led to OPEC memebrs
fracking and horizontal drilling techniques that proved effective in producing natural gas
US Domestic oil production has soared more 70 percent over the last six years which helped it cut
short its import from OPEC nations by more than a half in recent years
Venezuela and Algeria contend that OPEC needed to band together to cut production and raise
American producers expect improved efficiency and output of their wells with new technology
Thus Saudi Arabia and other exporting countries are seeking to replace the American market with
Chinese and other Asian markets. Resulting in fierce competition.
Saudi Arabia resisted calls for lower production mainly because the countries that were most
vociferous in calling for cuts would be the countries least able to actually cut their production since
their cash-short governments are dependent on more, not less oil revenue.
Consequently SA would lose valuable market it other contries failed to fulfill their commitments
After the oil price spikes of the 1970s, the United States and other industrialized countries raised
their strategic reserves, put into effect conservation policies and incentivized oil production.
Saudi Arabia lobbied its OPEC partners for production quota cuts, and the kingdom cut its own
production. When other OPEC members failed to comply with the new quotas, prices collapsed in
1986, and Saudi Arabia lost valuable markets for years to come.
OPEC has never completely regained the power it once had till early 2000s when oil prices spiked
again primarily because of the rapid growth in demand from China and other developing countries
and increasing unrest in several oil-producing countries like Nigeria and Venezuela.
http://www.nytimes.com/2014/11/29/business/energy-environment/free-fall-in-oil-price-underscoresshift-away-from-opec.html?_r=1
Cheap oil and strategic reserves
Strategic reserves of oil comes handy during surging oil prices or in the times of war.
Sticky economic problems ranging from ballooning subsidies to unbridled inflation have all been
solved by the 40 per cent fall in Brent crude prices between June and now.
it is also an excellent chance to build up our strategic storage
History
India had conceived of a strategic petroleum reserve as far back as in the late 1990s
The plan was to build storage capacities in three places Mangaluru and Padur (near Mangaluru)
requirements.
A special purpose vehicle Indian Strategic Petroleum Reserves Ltd. (ISPR) was floated under
Present Situation
Petroleum Minister said that Vizag will be ready for filling by the end of 2014 with the other two
Problems associated
Only the government can conceivably fund this storage as there is unlikely to be a viable
There have been instances in the recent past when some producers such as Iran commissioned
very large crude carriers (VLCC) to act as floating storage to ride out temporary market difficulties.
Government can strike a deal with one or more oil producers on mutually beneficial terms to offer
Rising prices or Inflation adversely affect savings while making speculative investments more
attractive
Inflation adversely affects those who have no hedges against it, and this includes all poorer
sections of the community.
A crucial question that arises in this context is whether the pursuit of the objective of price stability
by monetary authorities undermines the ability of the economy to attain other objectives such as
growth.
In short, the question is whether there is a trade-off between inflation and growth
There is a general consensus that over the medium and the long term, there is no such trade-off
Inflation Targeting
Inflation targeting is an economic policy in which a central bank estimates and makes public a
projected, or "target", inflation rate and then attempts to steer actual inflation towards the target
through the use of interest rate changes and other monetary tools.
Because interest rates and the inflation rate tend to be directly related, the likely moves of the
central bank to raise or lower interest rates become more transparent under the policy of inflation
targeting. Examples:
1) if inflation appears to be above the target, the bank is likely to raise interest rates. This usually
(but not always) has the effect over time of cooling the economy and bringing down inflation.
2) if inflation appears to be below the target, the bank is likely to lower interest rates. This usually
(again, not always) has the effect over time of accelerating the economy and raising inflation.
It is sometimes claimed that the financial crisis of 2008 in the United States and western Europe
sounded the death knell for inflation targeting.