GS-III: India biggest emitter of sulphur dioxide: report using NASA data

Context

India largest emitter of sulfur

• A new report by Greenpeace India shows the country is the largest emitter of sulphur dioxide in the world, with more than 15% of all the anthropogenic sulphur dioxide hotspots.
• This was detected by the NASA OMI (Ozone Monitoring Instrument) satellite.
• Almost all of these emissions in India are because of coal burning, the report says.
• The Singrauli, Neyveli, Talcher, Jharsuguda, Korba, Kutch, Chennai, Ramagundam, Chandrapur and Koradi thermal power plants or clusters are the major emission hotspots in India.

Why India?

• The vast majority of coal-based power plants in India lack flue-gas desulphurization technology to reduce air pollution.
• In a first step to combat pollution levels, the MoEFCC introduced, for the first time, sulphur dioxide emission limits for coal-fired power plants in December 2015.
• But the deadline for the installation of flue-gas desulphurization (FGD) in power plants has been extended from 2017 to 2022.

NASA data

• The report also includes NASA data on the largest point sources of sulphur dioxide.
• The largest sulphur dioxide emission hotspots have been found in Russia, South Africa, Iran, Saudi Arabia, India, Mexico, United Arab Emirates, Turkey and Serbia.
• Air pollutant emissions from power plants and other industries continue to increase in India, Saudi Arabia and Iran, the report says.
• In Russia, South Africa, Mexico and Turkey, emissions are currently not increasing — however, there is not a lot of progress in tackling them either.

India is the loser

• Of the world’s major emitters, China and the United States have been able to reduce emissions rapidly.
• They have achieved this feat by switching to clean energy sources.
• China, in particular, has achieved success by dramatically improving emission standards and enforcement of sulphur dioxide control.

GS-III: Amazon Fires

Context

• Over the last several days, the ‘lungs of the Earth’ Amazon rainforest have been burning at a rate that has alarmed environmentalists and governments worldwide.
• The fires are so large that they are visible from space.

Amazon Fires

• Starting in the Amazonian rainforests, the fires have impacted populated areas in the north, such as the states of Rondônia and Acre, blocking sunlight and enveloping the region in smoke.
• The smoke has wafted thousands of miles to the Atlantic coast and São Paulo, according to the World Meteorological Organization.
• Brazil has reported that forest fires in the region have doubled since 2013, and increased by 84% compared to the same period last year.

How did the fire start?

• Mostly caused by farmers clearing land, the fires have thrown the spotlight on Brazilian policies and anti-environment stance.
• The farmers had organised a “fire day” along a highway that runs through the heart of the rainforest.
• Local farmers set ablaze to sections of the rainforest a few days ago to get the government’s attention.
• And dry weather has further fuelled the fire.
• The dry season creates favourable conditions for the use and spread of fire, but starting a fire is the work of humans, either deliberately or by accident.

A cause for concern

• The Amazon rainforest is a repository of rich biodiversity and produces approximately 20 per cent of the oxygen in the Earth’s atmosphere.
• It is also home to indigenous communities whose lives and homelands are under threat due to encroachment.
• The Amazon basin matches the emissions released by nations in the basin. The burning of forests, therefore, implies additional carbon emissions.
• Deforestation could lead to the Amazon’s transformation from the world’s largest rainforest to a Savanna, which would reverse the region’s ecology.

Importance of Amazons

• A National Geographic report said the Amazon rainforest influences the water cycle not only on a regional scale.
• The rain produced by the Amazon travels through the region and even reaches the Andes mountain range.
• Moisture from the Atlantic falls on the rainforest, and eventually evaporates back into the atmosphere.
• The Amazon rainforest has the ability to produce at least half of the rain it receives. This cycle is a delicate balance.

GS-III: Government responds to the downturn with steps to boost growth

Context

The announcements come at a time when the perception that the slowdown has been aggravating in recent weeks and spreading across sectors. Finance Minister Nirmala Sitharaman announced a partial rollback of the enhanced surcharge on foreign portfolio investors (FPI) levied in the Budget and indicated a review of the surcharge levy for high net worth individuals as well.

Announcements

• Surcharge on long and short term capital gains arising from transfer of equity shares has been withdrawn.
• The CSR violation would be treated as a civil offence, and not a criminal offence.
• The FM announced a slew of measures aimed at boosting a flagging domestic economy.
• This includes an assertion that ICE (internal combustion engine) vehicles will coexist with EVs (electric vehicles) and that there is no phasing out of ICE vehicles, a fear expressed in certain quarters of the auto industry.
• Banks would also be asked to pass on the full impact of the interest rate cuts to consumers.
• Repo rate-linked loans.

Loans, repo rate

• Loans for home, vehicles and consumption goods to become cheaper and widely available through banking and non-banking finance companies.
• Banks will launch repo rate and external benchmark-linked loan products that will lead to reduced easy monthly installments for housing, vehicle and other retail loans.
• Working capital loans for industry to become cheaper.
• Public sector banks (PSBs) will ensure mandated return of loan documents within 15 days of loan closure.
• NBFCs will be permitted to use the Aadhaar authenticated bank ‘Know Your Customer’ (KYC) to avoid repeated processes.

What is the surcharge that’s been withdrawn?

• The surcharge of 3 per cent and 7 per cent on those earning between Rs 2 crore and Rs 5 crore, and over Rs 5 crore respectively had been announced by Sitharaman as part of her Budget proposals.
• This had led to different taxation outcomes for FPIs registered as Association of Persons or trusts and companies, even as those registered as companies were spared of this surcharge.
• Ever since the budget announcement, markets have been seeing a selloff on most trading days, largely in light of the FPI impact.

Why was the CSR announcement controversial?

The amendment to the Companies Act, passed earlier this month, introduced harsh penalties including jail terms for non-compliance on CSR (corporate social responsibility) by listed companies. This had been slammed by the industry as a regressive move, especially given the fact that in the last five years, the total CSR spend of companies has progressively jumped from 70% to over 90% now, according to data sourced from Prime Database.

Conclusion

For an economy that is downbeat in growth and in sentiment, the comprehensive package of measures announced by Finance Minister Nirmala Sitharaman on Friday may just be the right boost. They address growth slowdown concerns free up funds for investment and spending by banks, housing finance companies and MSMEs and importantly, undo some controversial proposals, in the budget and outside it, which were affecting sentiment in the markets and the corporate sector. And, importantly, these have all been done without any significant financial burden on the government. Some of the measures promote the ease of doing business and even the ease of living for ordinary citizens.