UPSC Essentials : Key terms of past week with MCQs and Points to ponder

And more…

Invasive alien species

WHY IN NEWS?

— Intergovernmental Platform on Biodiversity and Ecosystem Services (IPBES) in its new publication – the “Assessment Report on Invasive Alien Species and their Control’’ – has found that there are 37,000 alien species, including plants and animals, that have been introduced by many human activities to regions and biomes around the world, including more than 3,500 invasive alien species and that invasive alien species have played a key role in 60% of global plant and animal extinctions recorded.

KEY TAKEAWAYS

Esha Roy Explains:

— According to Convention on Biological Diversity, “Invasive alien species are plants, animals, pathogens
and other organisms that are non-native to an ecosystem, and which may cause economic or environmental
harm or adversely affect human health. In particular, they impact adversely upon biodiversity, including decline or elimination of native species – through competition, predation, or transmission of pathogens – and the disruption of local ecosystems and ecosystem functions.”

— The report said that invasive alien species are one of the five major direct drivers of biodiversity loss globally, alongside land and sea use change, direct exploitation of organisms, climate change, and pollution.

— IPBES is an independent intergovernmental body established to strengthen the science-policy interface for biodiversity and ecosystem services, working in a similar way to the IPCC, which is the UN’s climate science body.

— The report has noted that the number of alien species (species introduced to new regions through human
activities) has been rising continuously for centuries in all regions, but are now increasing at unprecedented rates, with increased human travel, trade and the expansion of the global economy.

“Not all alien species establish and spread with negative impacts on biodiversity, local ecosystems and
species, but a significant proportion do – then becoming known as invasive alien species. About 6% of
alien plants; 22% of alien invertebrates; 14% of alien vertebrates; and 11% of alien microbes are known to
be invasive, posing major risks to nature and to people,’’the IPBES has said.

— The report further noted that many invasive alien species have been intentionally introduced for their perceived benefits, “without consideration or knowledge of their negative impacts’’ – in forestry, agriculture, horticulture, aquaculture, or as pets.

— Nearly 80% of the documented impacts of invasive species on nature’s contribution to people are negative.

— “Invasive alien species have been a major factor in 60% and the only driver in 16% of global animal and plant extinctions that we have recorded, and at least 218 invasive alien species have been responsible for more than 1,200 local extinctions . In fact, 85% of the impacts of biological invasions on native species are negative,” said Prof. Anibal Pauchard, co-chair of the Assessment.

— The water hyacinth is the world’s most widespread invasive alien species on land. Lantana, a flowering
shrub, and the black rat are the second and third most widespread globally. The brown rat and the house
mouse are also widespread invasive alien species.

— The report said that the annual costs of invasive alien species have at least quadrupled every decade since 1970, as global trade and human travel increased. In 2019, the global economic cost of invasive alien species exceeded $423 billion annually.

— “These trends are projected to accelerate as the global economy expands, land and seas are used more intensively, and demographic change takes place,’’the report said.

— The reduction of food supply, has been cited by the report as the most common impact of alien invasive species. For example the European shore crab impacting commercial shellfish beds in New England or the Caribbean false mussel damaging locally important fishery resources in Kerala, by wiping out native clams and oysters. The Caribbean false mussel was originally from the Atlantic and Pacific coast of South and Central America, but are believed to have travelled to India via ships, later spreading to estuaries through smaller fishing vessels.

— Invasive alien species like Aedes albopictus and Aedes aegyptii spread diseases such as malaria, Zika and West Nile Fever, while others also have an impact on livelihood such as the water hyacinth in Lake Victoria in East Africa led to the depletion of tilapia, impacting local fisheries.

— The IPBES report has further warned that warming temperatures and climate change could favour the
“expansion of invasive species’’.

— Climate change is also predicted to increase the competitive ability of some invasive alien species, extending the area suitable for them and offering new opportunities for introductions and establishment.

— Invasive alien species can also amplify the impacts of climate change. For example, invasive alien plants, especially trees and grasses, can sometimes be highly flammable and promote more intense fires,’’it said.

— The report found that 34% of the impacts of biological invasions were reported from the Americas, 31% from
Europe and Central Asia, 25% from Asia and the Pacific and about 7% from Africa. Most negative impacts are
reported on land (about 75%) – especially in forests, woodlands and cultivated areas – with considerably fewer reported in freshwater (14%) and marine (10%) habitats . Invasive alien species are most damaging on islands, with numbers of alien plants now exceeding the number of native plants on more than 25% of all islands.

— Most countries (80%) have included targets related to managing invasive alien species in their national biodiversity plans. Only 17% specifically address the issue in national legislation, although more (69%) include it as a part of legislation in other areas. Nearly half of all countries (45%) do not invest in management of biological invasions.

— In December last year, governments agreed to reduce the rate of introduction and establishment of invasive alien species by at least 50% by 2030 under target 6 of the Kunming-Montreal Global Biodiversity Framework.

Point to ponder: Conservation and ecological balance form the cornerstone of the cosmic vision of Indian civilisation. Discuss. 

1. MCQ:

1. Lantana is the world’s most widespread invasive alien species on land.

2. The reduction of food supply, according to IPBES report, has been cited by the report as the most common impact of alien invasive species.

3. According to IPBES report, invasive alien species can amplify the impacts of climate change.

Which of the above statement(s) is/are correct?

(a) 1, 2 and 3

(b) 1 and 3 only

(c) 2 and 3 only

(d) 2 only

Self Regulatory Organisation for fintechs

WHY IN NEWS?

— Reserve Bank of India (RBI) Governor Shaktikanta Das has asked fintech entities to form a Self-Regulatory
Organisation (SRO).

KEY TAKEAWAYS

Hitesh Vyas Explains:

What is an SRO?

— An SRO is a non-governmental organisation that sets and enforces rules and standards relating to the conduct of entities in the industry (members) with the aim of protecting the customer and promoting ethics, equality, and professionalism. SROs typically collaborate with all stakeholders in framing rules and regulations.

— Their self-regulatory processes are administered through impartial mechanisms such that members operate in a disciplined environment and accept penal actions by the SRO. An SRO is expected to address concerns beyond the narrow self-interests of the industry, such as to protect workers, customers or other participants in the ecosystem.

— Regulations, standards, and dispute resolution and enforcement by an SRO get legitimacy not just by mutual
agreement of its members, but also by the efficiency with which self-regulation is perceived to be administered. Such regulations supplement, but do not replace, applicable laws or regulations, according to the Reserve Bank of India.

— An SRO can help in establishing codes of conduct for its members that foster transparency, fair competition, and consumer protection. It can act as a watchdog and encourage members to adopt responsible and ethical practices. It can provide a link between the regulator and market participants through a less formal set-up.

What is the need for an SRO?

— As regulators continue to contemplate, implement, and refine regulations for the orderly development of the fintech sector, SROs could play a pivotal role in the fintech industry by promoting responsible practices and maintaining ethical standards, RBI Deputy Governor T Rabi Sankar has said.

— There have been many instances where a few fintech players were involved in unethical practices such as charging exorbitant higher interest rates and harassment of borrowers for recovering loans.

— Sankar said by proactively addressing issues like market integrity, conduct, data privacy, cybersecurity, and risk management, SROs can help build trust among consumers, investors, and regulators.

What are RBI’s expectations from fintech players?

— RBI Governor Das has said that fintechs need to evolve industry best practices, privacy and data protection norms in sync with the laws of the land, set standards to avoid mis-selling, promote ethical business practices and transparency of pricing.

— “I would urge and encourage the fintechs to establish a Self-Regulatory Organisation (SRO) themselves,” the Governor said.

— RBI Deputy Governor Sankar said fintechs’ voluntary compliance mechanisms contribute to a more sustainable
and reputable fintech ecosystem, ensuring growth while minimising potential risks and negative outcomes.

— “In the context of a new and evolving sector like fintech, it is the industry participants who possess the deepest understanding of the processes and practices within the trade. Therefore, they are best suited to establish common rules, enforce them, and effectively handle disputes that may arise from non-compliance with these rules,” Sankar said.

What are the benefits of an SRO?

— SROs are widely considered experts in their fields and so have in-depth knowledge of the markets they operate in. This is helpful to their members as they can be called in to participate in deliberations and learn more about the nuances of the industry.

— Formation of SROs ensures member organisations follow a certain standard of conduct that helps promote ethical ways of doing business, which can lead to enhanced confidence in the ecosystem.

— They can serve as a watchdog to guard against unprofessional practices within an industry or profession.

What are the functions of an SRO?

— The recognised SRO will serve as a two-way communication channel between its members and the RBI. It will work towards establishing minimum benchmarks, and standards and help instil professional and healthy market behaviour among its members. SROs will impart training to the staff of its members and others and will conduct awareness programmes. It will establish a uniform grievance redressal and dispute management framework across its members.

— As of now, there are two Small Modular Reactor projects that have reached at operational stage globally: an SMR named Akademik Lomonosov floating power unit in Russia and an HTR-PM demonstration SMR in China that was grid-connected in December 2021.

How can an entity become an SRO?

— Those entities who are interested in being recognised as SROs will have to apply to the RBI. Once the regulator finds an entity suitable, it will issue a letter of recognition.

Point to ponder: Customer centricity, good governance essential for fintechs. Discuss. 

2. MCQ: 

With reference to Self Regulatory Organisation for fintechs, consider the following statements: 

1. Regulations, standards, and dispute resolution and enforcement by an SRO get legitimacy not just by mutual agreement of its members, but also by the efficiency with which self-regulation is perceived to be administered.

2. SRO is expected to address concerns related to particular industry only and regulations by an SRO can replace applicable laws which already exist. 

Which of the above statement(s) is/are are correct:

(a) Only 1

(b) Only 2

(c) Both 1 and 2

(d) Neither 1 nor 2

Tracking devices for the UTPs

WHY IN NEWS?

— In what could be the first-of-its-kind policy in the country, Odisha’s Directorate of Prisons has submitted a proposal to the state government for attaching GPS-enabled tracking/monitoring devices on the ankles of undertrial prisoners (UTPs).

KEY TAKEAWAYS

Sujit Bisoyi Explains:

— UTPs are people who have not undergone the trial of their legal cases. They have only been accused of crimes, and not convicted of them. The Odisha proposal suggests attaching tracking devices to those UTPs who are accused of non-heinous crimes, in order to free them from jail and allow them to lead a normal life. Under the law, heinous crimes are those that have a minimum punishment of imprisonment for seven years under the Indian Penal Code (IPC).

— The proposal is under consideration and if approved, Odisha will be the first state in the country to implement it.

Why has Odisha proposed this?

— According to Director General (Prisons) Manoj Chhabra, the aim of this plan is to decongest overcrowded jails.

— In general, overcrowded jails have been a longstanding issue in India. According to the National Crime Records Bureau’s (NCRB) 2021 report on prison statistics, a report published by the Ministry of Home Affairs, from 2019 to 2021, the occupancy rate of prisons went from around 120 per cent to 130 per cent.

— Since cases go on for a long time, the UTPs spend years in jail till the time they are granted bail or convicted by the courts. Many of the UTPs continue to be lodged in jails, even though they were caught in offences having provision of imprisonment of less than seven years.

How will the proposed system work?

— According to the proposals, the monitoring devices will be fitted on the ankles of UTPs with his/her consent. This will be on a voluntary basis and the devices will be attached with the approval of the court. The police and jail authorities will be able to track the movement of the UTP after they are freed from jail.

— Since these trackers will be temper-proof, if someone tries to interfere or fiddle with the system, an alarm will be raised at the local police station, based on which immediate action is to be taken.

— Chhabra said the move would also save costs for the government. Around Rs 1 lakh is currently being spent on each UTP inside the jail, every year. A tracker, which would cost around 10,000 to 15,000, would be cost-effective, he said.

— Also, once freed from jail, the UTP can then earn a livelihood. The DG described this as a “win-win situation” for both the government and the UTPs.

— However, human rights activists have raised concerns over a possible breach of privacy and the legal ramifications of the proposed system.

— Chhabra claimed that the move would free the UTPs instead of confining them within the jails. He added that countries like the USA and the UK have already implemented a system of fixing the monitoring devices on convicted prisoners.

Point to ponder: Need to change how prisons seen in our society. Not every prisoner is a criminal by nature. Discuss. 

3. MCQ:

Consider the following statements:

1. According to NCRB, from 2019 to 2021, the occupancy rate of prisons went up.

2. Under the law, heinous crimes are those that have a minimum punishment of imprisonment for ten years under the Indian Penal Code (IPC).

Which of the above statement(s) is/are true?

(a) Only 1

(b) Only 2

(c) Both 1 and 2 

(d) Neither 1 nor 2

UPI QR Code-CBDC interoperability

WHY IN NEWS?

— With banks enabling the interoperability of Unified Payments Interface’s (UPI) Quick Response (QR) code with their central bank digital currency (CBDC) or e₹ application, users of retail digital rupee will be able to make transactions by scanning any UPI QR at a merchant outlet. Merchants can also accept digital rupee payments through their existing UPI QR codes.

KEY TAKEAWAYS

Hitesh Vyas Explains: 

— This integration of UPI and CBDC is part of the Reserve Bank of India’s (RBI) ongoing pilot project on
pushing the retail digital rupee.

What is interoperability?

— Interoperability is the technical compatibility that enables a payment system to be used in conjunction with other payment systems, according to the RBI. Interoperability allows system providers and participants in different systems to undertake, clear and settle payment transactions across systems without participating in multiple systems. Interoperability between payment systems contributes to achieving adoption, co-existence, innovation, and efficiency for end users.

What is UPI QR code-CBDC interoperability?

— Interoperability of UPI with the digital rupee means all UPI QR codes are compatible with CBDC apps. Initially, when the pilot for the retail digital rupee was launched, the e₹-R users had to scan a specific QR code to undertake transactions. However, with the interoperability of the two, payments can be made using a single QR code. The digital rupee issued by the RBI, or the CBDC, is a tokenised digital version of the rupee. The e₹ is held in a digital wallet, which is linked to a customer’s existing savings bank account. UPI is directly linked to a customer’s account.

How will it benefit customers and merchants?

— The interoperability of UPI and CBDC will ensure seamless transactions between a customer and merchant without having the need to switch between multiple digital platforms.

— It will allow a digital rupee user to make payments for their daily needs, such as groceries and medicines, by scanning any UPI QR codes at any merchant outlet.

— Even merchants are not required to keep a separate QR code to accept the digital rupee payments. They can accept CBDC payments on their existing QR code.

“We will take advantage of the UPI network to increase transactions in CBDC. There will be one QR code, and you can scan the QR code using the CBDC app. If the merchant has a CBDC account, the payment will be settled in the CBDC wallet. If a merchant does not have a CBDC account, then there will be an option to make payment using UPI,” RBI’s Deputy Governor T Rabi Sankar said in July this year.

What is a QR code?

— A Quick Response (QR) code consists of black squares arranged in a square grid on a white background, which can be read by an imaging device such as a camera. It contains information about the item to which it is attached, according to the National Payments Corporation of India (NPCI).

— QR code is an alternate contactless channel of payments. It allows merchants or businesses to accept payments from their customers directly into their bank accounts.

How will interoperability help in increasing CBDC adoption?

— Currently, UPI is a widely used payment method, and the interoperability between it and the CBDC will
propel the adoption of the digital rupee.

— At present, more than 70 mobile apps and over 50 million merchants accept UPI payments. In July, RBI Deputy Governor Sankar said there were 1.3 million customers and 0.3 million merchants using the retail digital rupee. The daily per-day e₹-R transactions in July were around 5,000-10,000.

— SBI said the seamless integration of CBDC with UPI will enhance the acceptance and utilization of digital
currencies in everyday transactions.

— “This integration will be a game changer for the digital currency ecosystem,” it said.

How many banks have enabled UPI and CBDC interoperability?

— A few banks, including State Bank of India, Bank of Baroda, Kotak Mahindra Bank, Yes Bank, Axis Bank, HDFC
Bank and IDFC First Bank, have introduced UPI interoperability on their digital rupee application.

Point to ponder: The introduction of UPI in 2016-17 led to a dramatic change in the electronic payments landscape of the country. Discuss. 

4. MCQ:

With reference to the interoperability of UPI and CBDC, consider the following statements:

1. It will ensure seamless transactions between a customer and merchant without having the need to switch between multiple digital platforms.

2. It will allow a digital rupee user to make payments for their daily needs, such as groceries and medicines, by scanning any UPI QR codes at any merchant outlet.

Which of the above statement(s) is/are true?

(a) Only 1

(b) Only 2

(c) Both 1 and 2

(d) Neither 1 nor 2

Flex-fuel technology

WHY IN NEWS?

— Toyota last week unveiled a prototype of the Innova Hycross with a flex-fuel hybrid powertrain, its first car in India with this option, and one that the Japanese carmaker claims is the world’s first BS6 Stage II-compliant flex-fuel vehicle. Toyota had displayed an imported Corolla flex-fuel hybrid sedan as a pilot project late last year. The pilot was initiated as part of a government-led push to commercially deploy this technology, which is already in use in markets such as Brazil, Canada, and the United States.

KEY TAKEAWAYS

Anil Sasi Explains:

Flex-fuel technology

— A flex-fuel or flexible fuel vehicle typically has an internal combustion engine (ICE), but unlike a regular petrol vehicle, it can run on more than one type of fuel, or a mixture of these fuels. The most common versions use a blend of petrol and ethanol or methanol. Flex-fuel vehicles such as the prototype Hycross can run on blends of ethanol that are far higher than the current standard 20% mix (E20).

— This is made possible by equipping the engine with a fuel mix sensor and an engine control module (ECM) programming that senses and automatically adjusts for any ratio of designated fuels. Union Minister for Road Transport and Highways Nitin Gadkari had told The Indian Express earlier that the flex engines push is part of the broader strategy to cut dependence on imported crude in the medium-to-long run.

How these cars work ?

— Most components in a flex fuel vehicle are the same as those in petrol-only cars. But some special ethanol compatible components are required to adjust to the different chemical properties and energy content in ethanol/ methanol, such as modifications to the fuel pump and fuel injection system.

— The ECM is also calibrated to accommodate the higher oxygen content of ethanol. The hybrid engine of the type used in the Toyota Hycross would have separate spark plugs, piston ring tops, and valves to render them more corrosion-resistant, and a modified catalyst in the exhaust system to lower hydrocarbon emissions.

— The vehicle’s fuel filter and fuel lines have also been tweaked. According to IHS Markit, as of 2018, there were more than 21 million flex-fuel vehicles in the US, but Brazil was the biggest market and leader in this segment.

Flex pros and cons

—  The use of ethanol blending sharply lowers harmful pollutants such as carbon monoxide, sulphur, and carbon
and nitrogen oxides. Blending will also help cut oil imports to fuel vehicles. However, flex-fuel cars typically take a 4-8% hit on fuel efficiency when using ethanol for motive power.

—  So, while fuel economy is generally lower with increased levels of ethanol (engines are optimised for petrol), many flex fuel vehicles have improved acceleration performance when operating on higher ethanol blends. Another problem with ethanol blending is that source crops such as sugarcane are usually very water-intensive.

— According to a NITI Aayog report, in 2019-20, more than 90% of the ethanol produced in the country came from sugarcane, which is also a politically important crop in states such as Maharashtra and Uttar Pradesh.

—  The National Biofuel Policy 2018 envisages a 2025 target of 20% blending. Countries such as Brazil can be
flexible on the degree of the mix depending on crude prices, varying it when energy prices rise like they did after the Ukraine war — the precondition being that the vehicular fleet has been equipped to adjust to this varying fuel mix.

—  In Brazil, nearly all cars are required to be able to handle fuel blends with a minimum of 22% ethanol, and the state-owned oil company Petrobras is mandated to buy ethanol and dispense the mix at retail pumps.

— As a result, almost no light vehicle in Brazil runs on pure petrol. There is also a government subsidy to narrow the price gap of higher ethanol blends, in order to make the proposition viable. This is a factor that would have to be considered as India steps up its fuel blending plan.

Blending advantages

— The ethanol mix in petrol in India went up from 1.53% in 2013-14 to 11.5% in March 2023. This has helped cut the oil import bill by an estimated Rs 41,500 crore in the last eight years. In 2020-21, ethanol blending enabled a reduction of 26 million barrels of petrol, resulting in savings of Rs 10,000 crore, according to official estimates.

— The expected implementation of E20 by April 2025 is estimated to result in annual savings of Rs 35,000 crore in India’s oil import bill. To overcome the challenges of lower fuel efficiency of flex-fuel vehicles, electrified flex-fuel vehicles are being introduced, which offer the advantages of both a flex-fuel engine and an electric power train, as in the case with the Hycross prototype.

Point to ponder: India’s ethanol production programme has come a long way in the past five years, both in terms of the quantities supplied by sugar mills/distilleries to oil marketing companies (OMCs) and the raw material used. Discuss.  

5. MCQ:

Consider the following statements:

1. According to a NITI Aayog report, in 2019-20, more than 90% of the ethanol produced in the country came from sugarcane.

2. The National Biofuel Policy 2018 envisages a 2030 target of 20% blending.

Which of the above statement(s) is/are correct?

(a) Only 1

(b) Only 2

(c) Both 1 and 2

(d) Neither 1 nor 2

Global Stocktake

WHY IN NEWS?

— A new report released by UN Climate highlights the rapidly closing window of opportunity to contain rise in global temperatures within 1.5 degree Celsius from pre-industrial times.

KEY TAKEAWAYS

Amitabh Sinha Explains:

— The synthesis report of the Global Stocktake (GST), a Paris Agreement-mandated exercise at assessing the progress on climate action, notes that while headway had indeed been made, countries were nowhere close to achieving targets that would keep global warming under agreed levels.

— Citing previous assessments, the synthesis report pointed out that keeping the chances of meeting the 1.5 degree Celsius target implied a reduction of “around 43, 60 and 84 per cent in global GHG (greenhouse gas) emissions below the 2019 level by 2030, 2035 and 2050 respectively”.

— It noted that even with countries continuing to take their current climate actions, global greenhouse gas emissions in 2030 was expected to be about 24 billion tonnes of carbon dioxide-equivalent more than where it should be to keep the 1.5 degree Celsius hopes alive.

— The GST report has pointed to the deficits in every aspect of climate action — mitigation, adaptation, finance, technology and capacity building. “While action is proceeding, much more is needed now on all fronts,” it said. This report would be presented at the year-ending annual climate change meeting, this time being held in Dubai, and is expected to inform and influence its outcome.

JUST FYI

— In yet another reminder of the difficulties in all agreeing to more ambitious climate action, G20 countries struggled to agree to climate change related paragraphs in the joint communique. In fact, climate change was the biggest hurdle in preparing a consensus decision at G20, apart from the Russia-Ukraine conflict. And, this is just a grouping of 20 countries. The climate change conference involves more than 190 countries and decisions have to be taken by consensus.

— In fact, the Environment and Climate Sustainability Working Group of G20 which wrapped up its deliberations in Chennai in July had been unable to reconcile the differing positions of the developed and developing countries within the grouping. While developed countries pressed for enhancement of mitigation targets from everyone, the developing countries in the group emphasised on deliveries on the unfulfilled promises related to finance and technology and urged the developed countries to do more.

— At the Chennai meeting, there was also a proposal to commit to global emission reductions by 60 per cent by the year 2035 from the 2019 baseline. The scientific consensus, as of now, is that countries need to cut their emissions by about 45 per cent from 2019 levels by the year 2030 to retain hopes for meeting the 1.5 degree Celsius target.

Point to ponder: On climate change, wealthy nations must show the way. Discuss.

6. MCQ:

The Partnership for Action on Green Economy (PAGE) a UN mechanism to assist countries transition towards greener and more inclusive economies, emerged at : (UPSC CSE 2018)

(a) The Earth Summit on Sustainable Development 2002, Johannesburg

(b) The United Nations Conference on Sustainable Development 2012, Rio de Janeiro

(c) The United Nations Framework Convention on Climate Change 2015, Paris

(d) The World Sustainable Development Summit 2016, New Delhi

ANSWERS TO MCQs: 1 (c), 2(a), 3 (a), 4 (c), 5 (a), 6 (b)

https://www.youtube.com/watch?v=S8uKo_2t9h4?si=ohBEcD-vG_PuTZXC