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Subject: Economics

  • The hidden cost of greenwashing the Indian Railways

    Why in the news?

    The ‘Mission 100% Electrification’ project is like chasing an unrealistic dream of becoming a green railway, leading to many usable diesel locomotives becoming unnecessary.

    What are the key points of the report? 

    • Export of Repurposed Locomotives: RITES Ltd. is exporting six refurbished broad-gauge diesel locomotives to African railways after complex gauge conversion, marking a first in such re-engineering.
    • Idle Diesel Locomotives: Around 760 diesel locomotives, with over 60% still serviceable, are redundant due to the rapid electrification of the railway network.
    • Limited Environmental and Economic Gains: Electrification reduces only 2% of diesel consumption, while coal-powered electricity (50% of the total) negates environmental benefits, maintaining reliance on polluting sources.
    • Strategic Contradictions: Despite targeting 100% electrification, Indian Railways plans to retain 3,500 diesel locomotives for disaster management and traffic needs, undercutting “green” claims.
    • Policy and Financial Wastage: The rushed electrification drive has led to premature asset redundancy, wasting public funds without ensuring environmental or financial sustainability.

    What constitutes greenwashing in the context of Indian Railways?

    • Misleading Claims of Environmental Benefits: The Indian Railways’ push for 100% electrification is framed as a move towards a “green railway.” However, this initiative overlooks the fact that a significant portion of the electricity generated in India comes from coal-fired power plants, which are environmentally harmful.
      • Thus, the transition from diesel to electric locomotives may merely shift pollution from one source to another without achieving genuine environmental benefits.
    • Redundancy of Serviceable Assets: The decision to electrify the railway network has led to the premature stabling of functional diesel locomotives, many of which have considerable residual life left.
      • This not only represents a waste of resources but also raises questions about the actual motivations behind electrification efforts.
    • Focus on Slogans Over Substance: The Mission 100% Electrification initiative appears to prioritize headline-grabbing goals over comprehensive and well-thought-out policies.
      • This approach can be seen as greenwashing, as it promotes an image of environmental responsibility while failing to address the underlying issues related to energy sourcing and pollution.

    How do greenwashing practices impact public perception and trust?

    • Erosion of Credibility: When organizations like Indian Railways promote initiatives that are not genuinely sustainable, it can lead to public scepticism regarding their commitment to environmental issues.
    • Misallocation of Resources: Public perception may shift towards viewing government initiatives as wasteful or misguided, leading to decreased support for future projects that could have real environmental benefits.
    • Increased Public Scrutiny: Greenwashing practices often lead to increased scrutiny from activists, media, and the public.
      • As stakeholders demand transparency and accountability, organizations may face backlash for failing to deliver on their environmental promises.

    What regulatory measures can be implemented to combat greenwashing in the transportation sector? (Way forward)

    • Clear Guidelines for Environmental Claims: Establishing stringent regulations that define what constitutes legitimate environmental benefits can help prevent misleading claims.
      • Organizations should be required to substantiate their claims with verifiable data and transparent reporting.
    • Mandatory Sustainability Reporting: Implementing requirements for regular sustainability audits and reporting can ensure that transportation entities disclose their actual environmental impact, including emissions data and energy sources used.
    • Public Accountability Mechanisms: Creating independent bodies to assess and review claims made by transportation sectors regarding sustainability initiatives can enhance accountability.
      • These bodies could provide certifications or ratings based on genuine environmental performance rather than promotional claims.
    • Incentives for Genuine Sustainability Efforts: Providing financial incentives or recognition for organizations that implement effective sustainability measures can encourage genuine efforts rather than superficial compliance with green initiatives.

    Mains PYQ: 

    Q Why is Public Private Partnership (PPP) required in infrastructural projects? Examine the role of PPP model in the redevelopment of Railway Stations in India. (2022)

  • [pib] Telecom Technology Development Fund (TTDF) Program

    Why in the News?

    The Telecom Technology Development Fund (TTDF) has facilitated a collaboration between the Centre for Development of Telematics (C-DOT) and Trois Infotech on the development of “Face Recognition Using Drone” technology.

    About Telecom Technology Development Fund (TTDF):

    Details
    • Launched on October 1, 2022 under the Universal Service Obligation Fund (USOF), Ministry of Telecommunications.
    • Supports indigenous telecom technologies, especially for rural communication needs.

    About USOF (Universal Service Obligation Fund) 

    • USOF was established in April 2002 under the Indian Telegraph (Amendment) Act 2003.
    • Objective: To provide financial support for telecom services in rural and remote areas that are commercially unviable.
    • A non-lapsable fund, with the levy amount credited for continuous use.
    • Operates as an attached office of the Department of Telecom, headed by an administrator appointed by the Central Government.
    • Initially focused on providing basic telecom services in rural areas at affordable prices.
    • Expanded scope to include mobile services, broadband connectivity, and infrastructure development in rural and remote areas.
    Aims and Objectives
    • Encourage Innovation: Create synergies across stakeholders (startups, R&D, academia) and focus on rural-specific telecom solutions.
    • Bridge the Digital Divide: Provide affordable telecom solutions for rural areas and enhance connectivity.
    • Intellectual Property Creation: Support R&D projects contributing to patentable technologies.
    Key Features and Structural Mandate Funding Mechanism:

    • Grants for Indian startups, research institutes, academia, and telecom companies for R&D on rural telecom solutions.
    • Managed by Department of Telecommunications (DoT) with USOF as the administering body.

    Features:

    • Incentives for Startups: Provides financial incentives for telecom R&D projects from prototype to commercialization.
    • Collaborative Framework: Promotes collaboration between stakeholders such as startups, telecom companies, universities, and R&D centers.
    • PoC and Pilot Support: Encourages proof of concept testing and pilots to validate technological solutions.

     

    PYQ:

    [2019] In India, which of the following review the independent regulators in sectors like telecommunications, insurance, electricity, etc.?

    1. Ad Hoc Committees set up by the Parliament
    2. Parliamentary Department Related Standing Committees
    3. Finance Commission
    4. Financial Sector Legislative Reforms Commission
    5. NITI Aayog

    Select the correct answer using the code given below:

    (a) 1 and 2
    (b) 1, 3 and 4
    (c) 3, 4 and 5
    (d) 2 and 5

  • Employees’ Pension Scheme (EPS)

    Why in the News?

    The Parliamentary Standing Committee on Labour has recommended increasing the minimum pension of ₹1,000 paid by the Employees’ Provident Fund Organisation (EPFO) under the Employees’ Pension Scheme (EPS).

    About the Employees’ Pension Scheme (EPS):

    Details
    • Introduced in 1995 by the Employees Provident Fund Organisation (EPFO) under the Ministry of Labour and Employment.
    • Provides pension benefits to employees in the organized sector.
    Aims and Objectives
    • To provide pension benefits to employees in the organized sector.
    • Ensures financial security for employees post-retirement or in case of disability or death.
    Features and Significance
    • Employee and Employer Contribution: Both contribute 12% of the salary towards the EPF.
    • Employer’s Contribution: 8.33% of the employer’s contribution goes towards the pension fund.
    • Union Government Contribution: 1.16% of the employee’s basic salary is contributed to the pension fund.
    • Pension Fund Setup: The fund is created by allocating 8.33% of the employer’s contribution from the EPF corpus.
    Structural Mandate and Implementation Supreme Court in November 2022, the court upheld the Employees’ Pension (Amendment) Scheme, 2014, extending the deadline for opting for the new scheme by 4 months.

    • Pre-Amendment Scheme: Pensionable salary was based on the average salary of the last 12 months prior to exiting the pension fund.
    • Post-Amendment Scheme (2014): Pensionable salary based on average salary of the last 60 months (5 years).
    Eligibility Criteria
    • Applies to employees whose basic salary exceeds ₹15,000 per month.
    • Employees who are members of the Employees’ Provident Fund (EPF) and meet the contribution requirements are eligible for the scheme.

     

    PYQ:

    [2021] With reference to casual workers employed in India, consider the following statements:

    1. All casual workers are entitled for Employees Provident Fund coverage.

    2. All casual workers are entitled for regular working hours and overtime payment.

    3. The government can by a notification specify that an establishment or industry shall pay wages only through its bank account.

    Which of the above statements are correct?

    (a) 1 and 2 only

    (b) 2 and 3 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

  • In news: Bharatmala Pariyojana

    Why in the News?

    • Bharatmala Pariyojana is a comprehensive road development project initiated by the Government of India to improve connectivity and reduce logistics costs across the country.
      • The total length covered under the scheme is 34,800 km, with an estimated cost of Rs. 5.35 lakh crore.

    About Bharatmala Pariyojana

    Details
    • Launched to improve road connectivity, enhance freight/passenger movement, and reduce logistics costs.
    • First-phase launched in 2017, covering 34,800 km of roads, with an estimated cost of Rs. 5.35 lakh crore.
      • Long-term goals to be completed in phases over several years.

    Key Components:

    • Economic Corridors & Efficiency: Focus on developing 26,000 km of roads and improving the Golden Quadrilateral and North-South/East-West Corridors.
    • Inter-State & Feeder Routes: 8,000 km of interstate corridors and 7,500 km feeder routes.
    • Border & International Roads: 2,000 km of roads for trade and security.
    • Coastal & Port Connectivity: 2,000 km of roads for better port connectivity.
    • Green-Field Expressways: New expressways to reduce congestion.
    Aims and Objectives
    • 50 national corridors to be constructed, reducing freight traffic congestion and facilitating movement on national highways.
    • 550 districts to be connected nationwide, up from the current 300 districts linked with national highways.
    • Logistic Performance Index (LPI) to be introduced, helping identify trade and logistics challenges and opportunities.
    • Expected to increase employment opportunities for people.
    Funding and Implementation
    • Central Road and Infrastructure Fund (CRF): Created under the Central Road Fund Act, 2000, this non-lapsable fund is used for building and upgrading national highways and other infrastructure, funded through cess on petrol and diesel.
    • Monetization of National Highways: The monetization of existing infrastructure assets is used as a source of funding.
    • Private Sector Investment: Bharatmala invites participation from the private sector for funding and execution of certain projects.
    • Additional Budgetary Support: Funds from additional budgetary allocations by the central government also support the project.

     

    Do you know?

    1. Sagarmala Programme approved in 2015, focuses on port infrastructure development along the 7,516-km coastline through modernisation, mechanisation, and computerisation.
    2. Parvatmala (National Ropeways Development Programme) announced in Union Budget 2022-23 to improve connectivity in hilly areas, under MORTH.
      • Implemented in PPP mode as an ecologically sustainable alternative to conventional roads in challenging terrains.
      • Initial regions: Uttarakhand, Himachal Pradesh, Manipur, Jammu & Kashmir, and North Eastern states.

     

    PYQ:

    [2017] With reference to ‘National Investment and Infrastructure Fund’, which of the following statements is/are correct?

    1. It is an organ of NITI Aayog.
    2. It has a corpus of Rs 4,00,000 crore at present.

    Select the correct answer using the code given below:

    (a) 1 only
    (b) 2 only
    (c) Both 1 and 2
    (d) Neither 1 nor 2

  • India launched the World’s first Green Steel Taxonomy

    Why in the News?

    The Ministry of Steel unveiled the world’s first Taxonomy of Green Steel, setting a benchmark for decarbonizing the steel industry.

    About the Green Steel Taxonomy:

    What is it?
    • A formal framework introduced by India to define and promote the production of steel with reduced carbon emissions.
    • It sets clear standards for what constitutes green steel, aiming to help the Indian steel sector transition to low-carbon production methods.
    • The taxonomy defines greenness percentages based on the steel plant’s carbon emission intensity.
    • Seeks to ensure that production aligns with India’s goal of net-zero emissions by 2070.
    Key Features
    • Emissions Threshold: Green Steel is defined based on emissions intensity, with steel plants needing to keep emissions below 2.2 tCO2 per tonne of finished steel (tfs) to be classified as green.
    • Star Rating System:
      1. Five-star: Emission intensity lower than 1.6 t-CO2e/tfs.
      2. Four-star: Emission intensity between 1.6 and 2.0 t-CO2e/tfs.
      3. Three-star: Emission intensity between 2.0 and 2.2 t-CO2e/tfs.
    • Steel exceeding 2.2 t-CO2e/tfs does not qualify as green steel.
    • Emissions Scope: Includes Scope 1, Scope 2, and limited Scope 3 emissions, covering production, agglomeration, beneficiation, and emissions from raw materials and intermediates.
    • Certification: NISST will oversee Measurement, Reporting, and Verification (MRV), issuing greenness certificates and star ratings annually.
    • Review Period: The thresholds for green ratings will be reviewed every 3 years.
    Significance
    • Environmental Sustainability: Aims to reduce carbon footprint in line with national climate goals.
    • Market Creation: Promotes innovation in low-carbon steel products.
    • Global Competitiveness: Ensures Indian steel meets international sustainability standards.
    • Guidance for Industry: Encourages adoption of greener practices.
    Other Key Initiatives
    • National Mission on Green Steel (NMGS): Policy support, funding, and incentives for low-carbon technologies.
    • Electrification of Steelmaking: Use of electric arc furnaces (EAF) to reduce reliance on coal.
    • Hydrogen-based Steelmaking: Exploring hydrogen as a clean fuel.
    • Carbon Capture and Storage (CCS): Technologies to capture CO2 emissions.
    • Public Procurement Policies: Promotes green steel use in public infrastructure.
    • Research and Development: Investments in low-carbon technologies and materials.

     

    PYQ:

    [2020] Steel slag can be the material for which of the following

    1. Construction of base road

    2. Improvement of agricultural soil

    3. Production of cement

    Select the correct answer using the code given below:

    (a) 1 and 2 only

    (b) 2 and 3 only

    (c) 1 and 3 only

    (d) 1, 2 and 3 only

  • [pib] Projects under PM-DevINE Scheme

    Why in the News?

    The Ministry of Development of North-East Region has provided progress update regarding various projects under the Prime Minister’s Development Initiative for North East Region (PM-DevINE) Scheme.

    About the PM-DevINE Scheme:

    Details PM-DevINE is a Central Sector scheme introduced under the Union Budget 2022-23, aiming to drive development in the North Eastern Region (NER) through infrastructure and social projects.
    Aims and Objectives
    • Infrastructure Development: Enhance connectivity and accessibility in NER, aligned with PM GatiShakti.
    • Social Development: Address critical issues and improve residents’ quality of life.
    • Livelihood Opportunities: Focus on creating opportunities for youth and women.
    Structural Mandate and Implementation
    • Nodal Agency: Ministry of Development of North-East Region.
    • Approval: Cabinet approved on 12th October 2022.
    • Central Funding: 100% central funding for projects.
    • Outlay: Rs. 6600 crore for FY 2022-23 to FY 2025-26.
    • Project Sanctions: 35 projects worth Rs. 4857.11 crore sanctioned as of November 2024.
    State-wise Project Analysis
    • Sikkim: Passenger Ropeway System (completed), Skywalk Project (13% completed).
    • Mizoram: Bamboo Link Roads (28% completed).
    • Nagaland: Special Development Projects (30% completed).
    • Assam: School Transformations (55% completed), IT Park Construction (23% completed).
    • Manipur: Infrastructure for Manipur Technical University (25% completed).
    • Tripura: Solar Micro Grid (30% completed), Skill Development Centre (work started).
  • [pib] Yuva Sahakar Scheme

    Why in the News?

    The Ministry of Cooperation, in written reply to a question in the Lok Sabha has informed about the progress of the Yuva Sahakar Scheme.

    Current Financial Details:

    • As of 30th November 2024, the following financial assistance details have been recorded:
      • Sanctioned Amount: ₹4734.97 lakh to cooperatives with 18,915 beneficiary members.
      • Disbursed Amount: ₹294.44 lakh.
      • Sanctioned for 2024: ₹230.61 lakh, with ₹89.88 lakh disbursed.

    About the Yuva Sahakar Scheme:

    Details
    Overview and Objectives
    • Launched in 2018 under the Ministry of Agriculture and Farmers Welfare.
    • Implemented by NCDC (National Cooperative Development Corporation), which operates under the Ministry of Cooperation
    • Goal: To promote the formation of new cooperative societies and encourage innovative ideas from young entrepreneurs.
    • Targets cooperatives that have been operational for at least 3 months.
    NOTE: NCDC was established in 1963 as a statutory Corporation under Ministry of Agriculture & Farmers Welfare.
    Features and Provisions
    • Loan Tenure: Up to 5 years.
    • Interest Subvention: 2% subvention on the applicable interest rate for term loans related to project activities.
    • Subsidy Integration: Loans can be combined with subsidies available under other Government of India schemes.
    • Eligibility: All cooperatives in operation for at least 1 year are eligible for funding based on proposed projects.
    Significance
    • Encourages cooperatives to explore new and innovative areas.
    • Dedicated fund by NCDC for youth cooperatives.
      • Linked to the ₹1000 crore Cooperative Start-up and Innovation Fund (CSIF).
    • Increased funding for cooperatives from North Eastern regions, Aspirational Districts, and those with women, SC/ST, or PwD members.
  • [pib] New Policy Initiatives in Agriculture Sector

    Why in the News?

    • The Government of India, recognizing agriculture as a State subject, actively supports State governments through various policy measures and budgetary allocations aimed at improving the welfare of farmers.
      • Below are some key initiatives approved by the Union Cabinet:
    Clean Plant Programme (CPP)
    • Approval Date: 09.08.2024 ; Outlay: ₹1,765.67 crore
    • Objective: Enhance quality and productivity of horticulture crops.
    • Key Features: Focus on providing disease-free planting material, promoting climate-resilient varieties, reducing crop losses, and improving horticultural produce quality.
    • Financial Support: 50% from Mission for Integrated Development of Horticulture (MIDH) budget and 50% as a loan from the Asian Development Bank (ADB).
    • Implementation: Establishment of 9 Clean Plant Centers (CPCs) for disease diagnostics, treatments, and quarantine; development of large-scale nurseries for clean planting material propagation; creation of a regulatory and certification framework to ensure traceability in planting material production.
    Digital Agriculture Mission
    • Objective: Create a robust digital ecosystem for farmers by providing timely and reliable crop-related information.
    • Key Features: Establish Agristack, Krishi Decision Support System (DSS), Comprehensive Soil Fertility & Profile Map, Digital General Crop Estimation Survey (DGCES), and expansion of IT platforms like Krishi Nivesh Portal and Krishi-DSS Portal.
    • Digital Infrastructure: Promotes farmer-centric solutions, digitization, and technology-enabled agricultural services.

    (Discussed in detail in one of the today’s articles.)

    Agriculture Infrastructure Fund Scheme
    • Approval Date: 28.08.2024
    • Objective: Enhance agricultural infrastructure across India.
    • Key Features: Loans up to ₹2 crores with 3% interest subvention for 7 years. Covers a wide range of entities like PACS, FPOs, self-help groups, agri-entrepreneurs. 24% reserved for SC/ST entrepreneurs.
    • Credit Guarantee: Available under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) for loans up to ₹2 crores.
      Integration: Linked with PM Kusum ‘A’ and other community farming assets projects to enhance agricultural production.
    National Mission on Edible Oils – Oilseeds (NMEO-Oilseeds)
    • Approval Date: 03.10.2024; Outlay: ₹10,103 crore
    • Objective: Boost domestic oilseed production and achieve self-reliance in edible oils.
    • Implementation Period: 2024-25 to 2030-31
    • Key Features: Target to increase oilseed production from 39 million tonnes (2022-23) to 69.7 million tonnes by 2030-31. Focus on key oilseeds like rapeseed, mustard, groundnut, soybean, sunflower, and Sesamum.
    • Expansion: Oilseed cultivation in rice fallow areas, and intercropping. Setting up 65 new seed hubs and 50 seed storage units. Development of over 600 Value Chain Clusters in 347 districts.
    National Mission on Natural Farming (NMNF)
    • Approval Date: 25.11.2024; Outlay: ₹2,481 crore (GOI Share: ₹1,584 crore; State Share: ₹897 crore)
    • Objective: Promote natural farming practices across India.
    • Key Features: Focus on Bhartiya Prakritik Krishi Paddhati (BPKP), scaling up natural farming across 7.5 lakh hectares through 15,000 clusters.
    • Financial Assistance: ₹15,000 per hectare for 3 years to farmers for infrastructure creation.
    • Infrastructure: Establishment of 15,000 BRCs to facilitate access to bio-inputs like cow dung, neem, and bioculture. Master Trainer Program for large-scale training on natural farming techniques.
    Additional Key Programmes Initiated in 2024-25
    1. National Pest Surveillance System (NPSS): To monitor and control pest infestations.
    2. AgriSURE: A fund for start-ups and rural enterprises in agriculture.
    3. Krishi Nivesh Portal (Phase-I): A platform for facilitating investments in the agriculture sector.
    4. Krishi-DSS Portal: A geospatial platform to provide decision support for Indian agriculture.
    5. Voluntary Carbon Market (VCM): Promoting sustainable agricultural practices through carbon credit initiatives.

     

    PYQ:

    [2020] In India, which of the following can be considered as public investment in agriculture?

    1. Fixing Minimum Support Price for agricultural produce of all crops
    2. Computerization of Primary Agricultural Credit Societies
    3. Social Capital development
    4. Free electricity supply to farmers
    5. Waiver of agricultural loans by the banking system
    6. Setting up of cold storage facilities by the governments

    Select the correct answer using the code given below:

    (a) 1, 2 and 5 only

    (b) 1, 3, 4 and 5 only

    (c) 2, 3 and 6 only

    (d) 1, 2, 3, 4, 5 and 6

  • [pib] Digital Agriculture Mission (DAM)

    Why in the News?

    The Ministry of Agriculture & Farmers’ Welfare has provided details of the progress and implementation of Digital Agriculture Mission (DAM).

    Progress as of December 2024:

    • As of 5th December 2024, the following progress has been reported:
      • 29,99,306 Farmer IDs have been created.
      • Digital Crop Survey (DCS) has been conducted in 436 districts during the Kharif 2024 season.

     

    About the Digital Agriculture Mission (DAM):

    Details
    Overview and Launch
    • Digital Agriculture Mission (DAM) was approved on 2nd September 2024 with an outlay of ₹2817 Crore.
      • Initially planned for the financial year 2021-22, but delayed due to the COVID-19 pandemic.
    • Aligned with the Union Budget 2024-25 and 2023-24 announcements for implementing Digital Public Infrastructure (DPI) in agriculture.
    Aims and Objectives
    • Digital Identities for 11 crore farmers are targeted over the next 3 years: 6 crore in FY 2024-25, 3 crore in FY 2025-26, and 2 crore in FY 2026-27.
    • Digital Crop Survey to be launched nationwide: 400 districts in FY 2024-25 and all districts in FY 2025-26.
    Provisions and Features AgriStack: Includes 3 foundational registries:
    1. Farmers’ Registry: A database recording information about farmers.
    2. Geo-referenced Village Maps: Digital maps providing geographical data related to agricultural areas.
    3. Crop Sown Registry: A digital registry tracking crops sown by farmers.

    • Krishi Decision Support System (DSS): Designed to assist farmers in making data-driven decisions related to farming practices. It integrates remote sensing data on crops, soil, weather, and water resources into a comprehensive geospatial system.
    • Comprehensive Soil Fertility & Profile Map: A map designed to help farmers understand soil health, enabling informed decisions about fertilizer usage and crop selection.
    • Digital General Crop Estimation Survey (DGCES): Provides yield estimates based on scientifically designed crop-cutting experiments.
    • Soil Profile Mapping: Detailed soil profile maps on a 1:10,000 scale for approximately 142 million hectares of agricultural land.
    Structural Mandate
    • Supported by the Central Government, State Governments, and Academic & Research Institutions for successful implementation.
    • AgriStack is designed as a federated structure, where State Governments retain ownership of the data.
    • The system follows privacy standards set by the Digital Personal Data Protection (DPDP) Act, 2023, ensuring data security and privacy.

    PYQ:

    [2017] What is/are the advantage/advantages of implementing the ‘National Agriculture Market’ scheme?

    1. It is a pan-India electronic trading portal for agricultural commodities.
    2. It provides the farmers access to nationwide market, with prices commensurate with the quality of their produce.

    Select the correct answer using the code given below:

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2

  • [10th December 2024] The Hindu Op-ed: In energy-dependent world, the issue of food security

    PYQ Relevance:
    Q) What are the salient features of the National Food Security Act, 2013? How has the Food Security Bill helped in eliminating hunger and malnutrition in India? (UPSC CSE 2021)

    Mentor’s Comment: UPSC Mains have always focused on ‘Food Security’ (in 2021), conventional energy generation (in 2020) and ‘India’s Energy Security (in 2017).

    “Food insecurity and energy poverty are critical to ensuring global stability, but addressing them in isolation is inadequate,” cautions the World Bank in its latest climate and development report. The intertwined crises of food and energy security are shaping the course of the 21st century, posing significant threats to global stability. Food production is under pressure from climate change, population growth, and inequality, while energy systems grapple with geopolitical conflicts, aging infrastructure, and a slow shift away from fossil fuels. 

    Today’s editorial explores their deep interconnection and intensifies the challenge: agriculture, vital for humanity, is both a major energy consumer and a driver of climate change.

    _

    Let’s learn!

    Why in the News?

    In a virtual address at the 5th Energy Finance Conference, it was emphasized that energy-reliant agricultural systems struggle to adapt to climate-induced changes in food production, underscoring their interlinked challenges.

    Impact of Energy Price Fluctuations on Food Production and Security

    • Dependency on Fossil Fuels: Agriculture relies heavily on fossil fuels for mechanization, irrigation, fertilizer production, and transportation. This dependence creates a cycle where rising energy prices lead to increased costs for food production, directly impacting food security.
    • Volatility in Natural Gas Prices: Natural gas is crucial for fertilizer production so fluctuations in its prices can significantly affect fertilizer costs and, consequently, global food prices. For instance, geopolitical actions such as export bans can disrupt supply chains, exacerbating food insecurity in countries reliant on imports.
    • Climate Change Effects: Erratic weather patterns due to climate change further strain agricultural output, putting the livelihoods of billions at risk.
      • Nearly 11.8% of the global population faced severe food insecurity between 2020 and 2023, a figure expected to rise significantly.

    Role of Sustainable Energy in Enhancing Food Security

    • Renewable Energy Investments: The transition to renewable energy presents opportunities for enhancing food security. Investments in renewable technologies can help reduce reliance on fossil fuels and lower operational costs for agricultural practices.
    • Innovative Solutions: Solar-powered irrigation and biomass energy solutions could transform agricultural productivity. However, high costs and inadequate infrastructure limit their adoption in low-income countries where they are needed most.
    • Reducing Vulnerability: Clean energy solutions can help mitigate the vulnerability of food systems to energy price shocks. By integrating renewable energy into agricultural practices, countries can improve resilience against climate-induced disruptions.

    Strategies to Address the Nexus of Water, Energy, and Food Security (Way Forward)

    • Integrated Policy Approaches: A holistic approach that integrates water management with energy and food policies is essential. This includes promoting water-efficient agricultural practices and investing in infrastructure that supports sustainable resource management.
    • Investment in Renewable Technologies: Increasing investments in renewable energy infrastructure can support agricultural productivity while reducing carbon emissions. This includes expanding access to clean energy solutions for rural areas to enhance agricultural efficiency.
    • Financial Support for Vulnerable Communities: Providing financial resources and technical support to low-income nations is crucial for enabling them to transition towards sustainable practices without exacerbating poverty. Targeted investments can help build resilience against climate impacts while ensuring food security.

    https://www.thehindu.com/opinion/op-ed/in-energy-dependent-world-the-issue-of-food-security/article68966351.ece