1. Draft Greenhouse Gas (GHG) Emission Intensity Target Rules, 2025
Context:
The Ministry of Environment, Forest and Climate Change (MoEFCC) has issued draft rules under the Carbon Credit Trading Scheme (CCTS) to set legally binding GHG emission intensity targets for over 400 industrial units.
Key Points:
- Definition: Greenhouse gas emission intensity (GEI) = tonnes of CO₂ equivalent emitted per unit of output.
- Coverage: Sectors include aluminium, iron & steel, petroleum refining, petrochemicals, and textiles.
- Enforcement: Bureau of Energy Efficiency (BEE) will set targets; non-compliance will attract penalties under the Environment (Protection) Act, 1986.
- Mechanism:
- Compliance: Entities emitting less than their target earn Carbon Credit Certificates.
- Voluntary Offset: Other sectors can register projects for emission reduction/removal and earn credits.
- Administration:
- BEE = Administrator
- Central Electricity Regulatory Commission (CERC) = Regulator of carbon trading
- Significance:
- Stepping stone for a national carbon market.
- Aligns with India’s commitments under the UNFCCC and Paris Agreement.
- Recognized by World Bank’s “State and Trends of Carbon Pricing 2025” report.
Related Schemes:
- PAT Scheme: Reduces energy consumption in energy-intensive industries; issues Energy Savings Certificates (ESCerts).
- REC Mechanism: Facilitates trading of Renewable Energy Certificates to meet Renewable Purchase Obligations (RPOs).
- ETS: India’s Emissions Trading System focuses on emission intensity rather than absolute caps.
2. Finance Minister’s Seven-Point Strategy for Mobilising Private Capital
Context:
At the 4th International Conference on Financing for Development (FFD4), the Finance Minister outlined a strategy to attract private investment for sustainable development.
Seven-Point Strategy:
- Strengthen domestic financial markets.
- Institutional reforms to address perceived risks.
- Build a robust, investment-ready project pipeline.
- Scale up blended finance (e.g., sovereign green bonds, impact investment).
- Empower Multilateral Development Banks and Development Finance Institutions.
- Reform global credit rating methodologies to recognize emerging market resilience.
- Unlock grassroots capital, especially for MSMEs.
Significance:
- Addresses the $2.5 trillion annual investment gap in critical sectors (UNCTAD).
- Enhances inclusion for underserved groups like women-led MSMEs and rural communities.
3. Global Public Debt: UNCTAD “A World of Debt” Report 2025
Key Highlights:
- Global Public Debt (GPD): Reached $102 trillion in 2024; projected to hit 100% of global GDP by decade’s end.
- Developing Countries: Account for less than one-third ($31 trillion) but their debt has grown twice as fast since 2010.
- Asia & Oceania: Hold 24% of global public debt among developing economies.
- Challenges:
- Higher borrowing costs for developing countries (2–4x that of the USA).
- 61 developing countries spend 10%+ of government revenue on interest payments.
- Impact: Widening development gaps, reduced spending on health and education.
Recommendations:
- Multilateral reforms (e.g., debt service pauses, G20 framework reform).
- National measures to manage liquidity risks and improve project pipelines.
4. RBI Financial Stability Report (FSR) – July 2025
Key Points:
- Growth: India’s real GDP projected at 6.5% for 2025–26, led by strong domestic demand.
- Banking Sector:
- GNPA ratio at 2.3% (multi-decade low), NNPA at 0.5%.
- Capital to risk-weighted assets ratio (CRAR) at record 17.3%.
- Corporate Sector: Large borrower GNPA ratio declined from 3.8% (Sep 2023) to 1.9% (Mar 2025).
- Inflation: CPI inflation fell to 2.8% (May 2025), a six-year low.
- Risks:
- Global trade tensions, geopolitical conflicts, rising public debt, and climate-related shocks.
- Uncertainty in US trade/economic policies causing market volatility.
Regulatory Initiatives:
- Promoting rupee settlements in cross-border trade.
- New RBI digital lending guidelines (2025).
- Revised liquidity coverage ratio (LCR) rules.
5. National Indicator Framework (NIF) Progress Report 2025
Context:
The Ministry of Statistics and Programme Implementation released the NIF Progress Report, tracking India’s progress on SDGs.
Key Highlights:
- Digital Economy: Contributes 13.42% to national income (2024–25).
- SDG Progress:
- Agriculture productivity, clean water access, renewable energy share, social protection, and forest cover have all improved.
- Gini coefficient (inequality) has decreased in both rural and urban areas.
- Waste processing rose from 18% (2015–16) to 81% (2024–25).
- Forest cover increased to 21.76% (2023).
6. Wilmington Declaration & QUAD at Sea Ship Observer Mission
Context:
India, Japan, US, and Australia launched the first QUAD coast guard observer mission under the Wilmington Declaration (2024).
Key Points:
- Strengthens maritime cooperation and security in the Indo-Pacific.
- Supports India’s SAGAR (Security and Growth for All in the Region) vision.
- Other initiatives: Quad Cancer Moonshot, MAITRI maritime training, Ports of the Future digital infrastructure.
7. Digital India Mission: 10 Years
Achievements:
- Digital economy now 13.42% of GDP; India ranks 3rd globally for digitalization.
- Internet connections surged to 97 crore (2024).
- UPI: India accounts for 49% of global real-time digital payments.
- DBT via Aadhaar saved ₹3.48 lakh crore.
- BharatNet connected 2.18 lakh Gram Panchayats.
- Strategic tech: IndiaAI and Semiconductor Mission progressing.
- E-governance: Civil servant training via Karmayogi Bharat iGOT, UMANG platform for services.