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Subject: Environment

  • Giant World of Fungi Beneath Our Feet

    Why in News?

    A study published in the journal Science produced the first global map of arbuscular mycorrhizal (AM) fungi, revealing the enormous extent of underground fungal networks and their importance for climate regulation.

    Key Findings

    • Topsoils worldwide contain about 110 quadrillion km of fungal hyphae.
    • This distance is equivalent to nearly one billion trips between the Earth and the Sun.
    • AM fungal networks store around 300 million tonnes of carbon.
    • This is 4 to 6 times the weight of the entire human population.
    • The study analysed data from more than 16,000 soil cores using machine-learning techniques.

    Role in Climate Regulation

    • AM fungi form symbiotic associations with nearly 70% of all plant species.
    • They exchange Nutrients and water with plants, in return for carbon compounds produced through photosynthesis.
    • These networks sequester approximately 4 billion tonnes of CO₂-equivalent annually.
    • This equals roughly 11% of global human-related carbon emissions.

    Arbuscular Mycorrhizal (AM) Fungi

    • A group of fungi belonging to the phylum Glomeromycota.
    • They colonise plant roots and form mycorrhizae (fungus-root associations).
    • The fungal filaments, called hyphae, extend into the soil and improve nutrient uptake.

    Benefits

    • Enhance absorption of: Phosphorus, Nitrogen, Micronutrients, and Water.
    • Improve plant growth and drought tolerance.
    • Increase soil aggregation and fertility.
    • Contribute to long-term carbon storage.

    Biodiversity Hotspots Identified

    The study found that around 40% of global AM fungal networks occur in grassland ecosystems, including South Sudan, The Tibetan Plateau, and Banni Grasslands.

    Major Threats

    • Croplands contain about 50% lower fungal density compared to natural ecosystems.
    • Grasslands are being converted into agricultural land four times faster than forests.
    • This threatens underground fungal biodiversity and its ecosystem services.

    Why is the Study Important?

    • Highlights fungi as a form of “living infrastructure” supporting ecosystems.
    • Emphasises the need to include soil biodiversity and fungi in climate policy.
    • Strengthens the case for grassland conservation alongside forest protection.

    [2021] Which of the following have species that can establish symbiotic relationship with other organisms?
    1. Cnidarians
    2. Fungi
    3. Protozoa
    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

  • Project GIB: Captive Stock Reaches 94 Birds

    Why in the news?

    Union Minister Bhupender Yadav announced that three new chicks have been added under Project Great Indian Bustard (GIB), taking the captive population to 94 birds.

    Key Highlights

    • The three chicks emerged from: 1 wild-collected egg, and 2 captive-laid eggs.
    • Total chicks hatched in the fourth year of captive breeding: 26.
    • The captive breeding population has now increased to 94 birds.
    • More chicks are expected during the current breeding season.

    About the Great Indian Bustard (GIB)

    • Scientific Name: Ardeotis nigriceps
    • One of the heaviest flying birds in the world.
    • Endemic to the Indian subcontinent.
    • State Bird of Rajasthan.
    • Habitat
      • Arid and semi-arid grasslands.
      • Open scrublands.
      • Dry agricultural landscapes.
    • Distribution: Rajasthan (largest population), Gujarat, Maharashtra, Karnataka, and Andhra Pradesh.
    • IUCN Status: Critically Endangered.
    • Protection Status: Schedule I of the Wild Life (Protection) Act, 1972.
    • Listed in Appendix I of CITES.
    • Included under Appendix I of the Convention on Migratory Species (CMS).

    [2010] With reference to India’s Desert National Park, which of the following statements are correct?

    1. It is spread over two districts.
    2. There is no human habitation inside the Park.
    3. It is one of the natural habitats of the Great Indian Bustard. 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

  • Odisha’s Groundwater Revival under ‘Jal Sanchay, Jan Bhagidari’

    Why in News?

    Odisha has emerged as a model for community-led groundwater conservation under the initiative ‘Jal Sanchay, Jan Bhagidari’, transforming monsoon rainfall into a sustainable source of groundwater recharge through rooftop rainwater harvesting and aquifer recharge structures.

    What is ‘Jal Sanchay, Jan Bhagidari’?

    • A nationwide approach promoting: Water conservation through people’s participation.
    • Based on the principle of “Whole of Government, Whole of Society.”
    • Encourages Community ownership, Scientific water management, and Rainwater harvesting.

    Objective

    • Recharge groundwater aquifers.
    • Improve water security.
    • Build resilience against future water stress.
    • Promote sustainable use of water resources.

    Odisha’s Groundwater Recharge Strategy

    • The State captures rainwater where it falls and channels it into underground aquifers through Rooftop Rainwater Harvesting
    • Rainwater collected from: Schools, Colleges, Government offices, Institutional buildings, is filtered and directed into recharge wells.
    • Recharge Structures in Water Bodies: Ponds, Tanks, Community water bodies, allowing excess monsoon runoff to percolate underground.

    CHHATA Scheme

    • Focuses on Rooftop Rainwater Harvesting Systems (RRHS).
    • Implements recharge systems in institutional buildings.

    Functions

    • Collection of rooftop runoff.
    • Filtration of rainwater.
    • Recharge of groundwater through bore wells.

    Benefits

    • Improves groundwater levels.
    • Reduces seasonal water shortages.
    • Supports urban groundwater revival.

    ARUA Scheme

    • About: Facilitates groundwater recharge through ponds and tanks.
    • Construction of Recharge Shafts.

    Functions

    • Diverts surplus surface runoff.
    • Enhances deep aquifer recharge.
    • Reduces loss of monsoon water.

    [2022] Which one of the following has been constituted under the Environment (Protection) Act, 1986?

    [A] Central water Commission

    [B] Central Ground Water Board

    [C] Central Ground Water Authority

    [D] National Water Development Agency

  • Axolotl: Mexico City’s Unofficial World Cup Mascot Facing Extinction

    Why in the news?

    Ahead of the 2026 FIFA World Cup, the axolotl has emerged as Mexico City’s unofficial mascot. However, conservationists have raised concerns that the popularity of the critically endangered amphibian has not translated into meaningful efforts to protect its rapidly disappearing habitat.

    About Axolotl

    • Common name: Axolotl
    • Scientific name: Ambystoma mexicanum
    • Group: Amphibian (salamander).
    • Endemic to: Mexico, particularly the canals of Xochimilco in Mexico City.
    • Name derived from: The Nahuatl word meaning “water monster”.

    Unique Features

    • Exhibits neoteny, retaining larval characteristics throughout its life.
    • Remains aquatic throughout its life cycle.
    • Breathes through External gills and oxygen absorption through its skin.
    • Extraordinary regenerative ability can regrow limbs, Parts of the spinal cord, Heart tissue, and Portions of the brain.

    Conservation Status

    • IUCN Red List: Critically Endangered.
    • Wild populations have witnessed a drastic decline.

    [2019] Consider the following statements:
    1. Asiatic lion is naturally found in India only.
    2. Double-humped camel is naturally found in India only.
    3. One-horned rhinoceros is naturally found in India only.
    Which of the statements given above is/are correct?

    [A] 1 only

    [B] 2 only

    [C] 1 and 3 only

    [D] 1, 2 and 3

  • Scientists Discover New Species in Angola’s Lisima Plateau

    Why in the news?

    Wildlife experts under the Wilderness Project discovered several new insect and spider species during an expedition to the Lisima Plateau in Angola.

    Newly Identified Species

    • 8 new dragonfly species.
    • 3 new grasshopper species.
    • Around:
      • 60 new butterflies and moths.

    Other Notable Discoveries

    • Armoured predatory cricket.
    • New copper caterpillar species and butterfly.
    • Fluorescent crowned crab spider.
    • Blood-orange ladybird orb-web spider.

    Fluorescent Crowned Crab Spider

    • Special Feature: Fluoresces under ultraviolet (UV) light.
    • Fluorescence may help:
      • Communication
      • Camouflage
      • Predator avoidance.

    Ladybird Orb-Web Spider

    • Feature: Mimics ladybirds using bright coloration.
    • Purpose: Warns predators about:
      • Toxicity
      • Bitter taste.
    • Example of: Mimicry in nature.

    About Lisima Plateau

    • Remote plateau region in: Angola.

    Hydrological Importance

    • Feeds four major African river systems:
      • Congo River
      • Okavango River
      • Zambezi River
      • Cuanza River.

    Global Biodiversity Context

    • Around 8.7 million species exist globally.
    • Only about: 1.5 million species are documented.
    • Extinction Concern: More than 800 animal species extinct since 1500 due to human activities.

    [2023] Consider the following statements:
    1.Some mushrooms have medicinal properties.
    2.Some mushrooms have psycho- active properties.
    3.Some mushrooms have insecticidal properties.
    4.Some mushrooms have bioluminescent properties.
    How many of the above statements are correct?

    [A] Only one

    [B] Only two

    [C] Only three

    [D] All four

  • Delhi Bird Atlas 2026

    Why in the news?

    The Delhi Bird Atlas released on 5 June 2026 documented bird distribution and abundance across Delhi for the first time and stated that Delhi ranks second among world capitals in bird diversity after Nairobi.

    Bird Diversity in Delhi

    • Total bird species recorded in Delhi: 471 species.
    • Additional: 22 species not re-recorded since 1975.
    • First-year survey findings:
      • 221 species recorded.
      • 200 species in winter.
      • 152 species in summer.

    Categories

    • 126 resident species.
    • 81 winter migrants.
    • 14 summer migrants.

    Why Delhi Has High Bird Diversity

    • Northern edge of the Aravalli Range.
    • Presence of:
      • Yamuna River floodplains.
      • Sahibi floodplains.
      • Wetlands and urban green spaces.
    • Proximity to: Western Himalayas.
    • Located near: Central Asian Flyway (CAF).

    What is the Central Asian Flyway (CAF)?

    • Major migratory bird route stretching from the Arctic region to the Indian Ocean.
    • Covers: Central Asia and South Asia.
    • Important for migratory waterbirds and shorebirds.
    • India lies at the heart of this flyway.

    [2011] The Himalayan Range is very rich in species diversity. Which one among the following is the most appropriate reason for this phenomenon?

    (a) It has a high rainfall that supports luxuriant vegetative growth.

    (b) It is a confluence of different biogeographical zones.

    (c) Exotic and invasive species have not been invasive species and have not been introduced in this region.

    (d) It has less human interference.

  • Can scheme to replace NCR’s old trucks and buses curb pollution

    Why in the News?

    The Union Cabinet has approved a two-year Clean Mobility Scheme aimed at replacing older trucks and buses in Delhi-NCR with BS-VI-compliant vehicles. The move is significant because heavy commercial vehicles constitute only a small fraction of the vehicle fleet but contribute disproportionately to particulate and nitrogen oxide emissions. 

    What is the Clean Mobility Scheme for Delhi-NCR?

    1. Approval: Approved by the Union Cabinet for a two-year period to reduce air pollution and promote clean mobility in Delhi-NCR.
    2. Objective: Accelerates replacement of BS-IV and older trucks and buses with BS-VI-compliant or electric vehicles (EVs).
    3. Funding Mechanism: Financed through the National Capital Region Planning Board (NCRPB) under the Ministry of Housing and Urban Affairs (MoHUA).
    4. Implementing Agencies: Implemented by the Ministry of Road Transport and Highways (MoRTH) and the Ministry of Petroleum and Natural Gas (MoPNG) in collaboration with Delhi, Haryana, Rajasthan and Uttar Pradesh.
    5. Financial Outlay: Provides a total package of ₹9,585 crore, including ₹5,041 crore Central assistance and ₹1,601 crore estimated State tax concessions.
    6. Coverage: Targets nearly 2.07 lakh vehicle owners, including 1.91 lakh trucks and 16,329 buses across Delhi-NCR.
    7. Vehicle Replacement Norms: Mandates scrapping of BS-III and older vehicles at Registered Vehicle Scrapping Facilities; BS-IV vehicles may be scrapped or sold outside NCR in non-NCAP cities/towns.
    8. Delhi-Specific Provision: Requires electric Light Goods Vehicles (LGVs) and permits only BS-VI CNG or electric buses under the scheme.
    9. Exclusion: Government-owned vehicles are not eligible for scheme benefits.

    What Incentives Does the Scheme Provide?

    Central Government Support

    1. Interest Subvention: Provides 5% interest subsidy on vehicle loans for five years.
    2. Fuel Support: Provides monthly fuel vouchers of up to ₹4,800, depending on vehicle category.
    3. EV Incentives: Offers lump-sum benefits for electric vehicle purchases or Certificate of Deposit trading.

    State Government Support

    1. Registration Fee Waiver: Exempts eligible new vehicles from registration charges.
    2. Motor Vehicle Tax Relief: Provides up to 100% tax concession for new vehicles and 50% concession for used vehicles for 10 years.
    3. Liability Waiver: Waives pending liabilities on old vehicles participating in the scheme.

    Industry Support

    1. OEM Contribution: Participating automobile manufacturers provide 8% discount on ex-showroom prices.

    How Will the Scheme Be Implemented and Monitored?

    1. Digital Platform: Uses an integrated portal for real-time eligibility verification, automated claims processing and fuel voucher disbursement.
    2. Outcome Monitoring: Tracks pollution-reduction outcomes and scheme performance digitally.
    3. Long-Term Support: Central benefits continue for five years from registration of the new vehicle, extending beyond the two-year enrolment period.
    4. Empowered Committee: Monitored by a high-level committee chaired by the Cabinet Secretary, with representation from NITI Aayog, MoHUA, MoRTH, MoPNG, DFS and NCR States.
    5. District-Level Oversight: District Collectors/District Magistrates will supervise implementation and monitoring at the local level.

    Can the Replacement of Old Trucks and Buses Significantly Improve Delhi-NCR Air Quality?

    1. Disproportionate Emission Burden: Old trucks and buses contribute significantly higher emissions despite constituting a small share of the total fleet.
    2. PM2.5 Contribution: Trucks and buses account for 36% of transport-sector PM2.5 emissions, directly affecting respiratory and cardiovascular health.
    3. Cleaner Technology: BS-VI vehicles incorporate advanced emission-control systems, cleaner fuels and onboard diagnostic technologies.
    4. Emission Reduction Potential: Transition from older emission norms to BS-VI can substantially reduce NOx, PM and CO emissions.

    Why Are Heavy Commercial Vehicles a Major Pollution Challenge?

    1. Large Fleet Size: Delhi-NCR has approximately 2.98 crore registered vehicles.
    2. Rapid Growth: Vehicle numbers are increasing by nearly 7% annually.
    3. High Emission Intensity: A pre-BS heavy vehicle emits up to 14 times more pollution than a BS-VI vehicle.
    4. Legacy Fleet: Large numbers of trucks and buses continue operating under outdated emission standards.
    5. Ageing Vehicles: Emission performance deteriorates beyond regulatory life due to engine wear and weakening pollution-control systems.

    What Does the Evidence Say About Transport-Sector Pollution?

    1. Winter PM2.5 Share: Transport contributes around 23% of winter PM2.5 pollution in Delhi-NCR.
    2. Summer PM2.5 Share: Transport contributes around 19% of summer PM2.5 emissions.
    3. Carbon Monoxide Emissions: Transport accounts for nearly 40% of CO emissions.
    4. Nitrogen Oxide Emissions: Transport contributes around 63% of NOx emissions.
    5. Scientific Basis: Source-apportionment studies (2015–2019) identified transport as a major pollution source.
    6. Institutional Assessment: Studies were evaluated by panels constituted under the Commission for Air Quality Management (CAQM).

    How Much Cleaner Are BS-VI Vehicles?

    1. Advanced Standards: BS-VI represents India’s most stringent vehicular emission norm.
    2. Pollutant Control: Introduces tighter limits on NOx and particulate matter emissions.
    3. Fuel Quality Improvement: Operates with cleaner fuels containing 10 ppm sulphur content.
    4. Diagnostic Systems: Uses advanced on-board diagnostic (OBD) systems for emission monitoring.
    5. BS-IV Gap: BS-IV vehicles emit 2.7 times more pollution than comparable BS-VI vehicles.
    6. Technology Transition: Aligns Indian emission standards with advanced global regulatory practices.

    What Is the Current Composition of Delhi-NCR’s Commercial Vehicle Fleet?

    1. Goods Vehicles: Account for 4.1% (11.80 lakh) of Delhi-NCR’s 2.88 crore vehicle fleet.
    2. Bus Share: Buses constitute only 0.6% of the total vehicle fleet.
    3. BS-VI Buses: 34,449 buses are BS-VI compliant.
    4. Older Buses: 1,26,549 buses fall within the pre-BS to BS-IV categories.
    5. Pollution Concentration: A relatively small commercial fleet contributes disproportionately to emissions.

    Why Is Delhi-NCR Particularly Vulnerable to Air Pollution?

    1. Multiple Sources: Pollution arises from transport, dust, industrial emissions and biomass burning.
    2. Meteorological Factors: Weather conditions influence pollutant accumulation and dispersion.
    3. Regional Nature: Pollution originates from both local and regional sources.
    4. Winter Inversion: Seasonal atmospheric conditions trap pollutants closer to the ground.
    5. Population Exposure: High population density magnifies health impacts.

    What Are the Potential Benefits and Limitations of the Scheme?

    Benefits

    1. Emission Reduction: Accelerates removal of highly polluting vehicles.
    2. Fleet Modernisation: Promotes adoption of cleaner commercial transport.
    3. Health Gains: Reduces exposure to PM2.5 and NOx.
    4. Regulatory Compliance: Supports implementation of CAQM directives.
    5. Climate Co-benefits: Improves fuel efficiency and lowers emission intensity.

    Limitations

    1. High Replacement Cost: Fleet owners may face financial constraints.
    2. Enforcement Challenges: Effective scrappage and replacement monitoring remain critical.
    3. Partial Solution: Transport is only one component of Delhi-NCR’s pollution problem.
    4. Regional Coordination: Requires cooperation among multiple NCR states.

    Conclusion

    The Clean Mobility Scheme aligns with India’s commitment to achieve Net Zero by 2070, reduce the emissions intensity of GDP by 45% by 2030, and promote sustainable urban transport. By targeting a small fleet responsible for a disproportionately large share of vehicular pollution, the scheme can complement the National Clean Air Programme (NCAP) target of reducing particulate pollution in non-attainment cities while advancing SDG 3 (Good Health), SDG 11 (Sustainable Cities) and SDG 13 (Climate Action).

    PYQ Relevance

    [UPSC 2020] What are the key features of the National Clean Air Programme (NCAP) initiated by the Government of India?

    Linkage: The PYQ focuses on policy measures and institutional interventions for tackling air pollution in India. The Clean Mobility Scheme complements NCAP by targeting vehicular emissions, a major source of PM2.5 and NOx pollution in Delhi-NCR, through fleet modernisation and BS-VI transition.

  • India Showcases Carbon Credit Trading Scheme at WTO

    Why in the news?

    India showcased its Carbon Credit Trading Scheme (CCTS) and renewable energy standards during the WTO Trade and Environment Week 2026 held in Geneva.

    Key Highlights

    • Event: WTO Trade and Environment Week 2026.
    • Theme of India’s session:
      • “Showcase of India’s Carbon Credit Trading Scheme and Standardization in Renewable Energy”.
    • Focus areas:
      • Sustainable development
      • Clean energy transition
      • Carbon markets
      • Renewable energy standards
      • Climate commitments under the Paris Agreement.

    India’s Climate Achievements

    Non-Fossil Fuel Capacity

    • Share of non-fossil fuel-based installed electricity capacity: 53.21% as of March 2026.
    • Target: 50% by 2030.
    • Achieved nearly five years ahead of schedule.

    Emissions Intensity

    • India reduced emissions intensity of GDP by: 37.38% between 2005 and 2022.
    • NDC target: 33–35% reduction by 2030.
    • Achieved ahead of timeline.

    Carbon Credit Trading Scheme (CCTS)

    • Objective: Develop a national carbon market in India.

    Features

    • National electronic carbon credit trading platform.
    • Uses market-based mechanisms to Reduce greenhouse gas emissions. Promote low-carbon technologies.

    Importance

    • Encourages industries to:
      • Improve energy efficiency.
      • Reduce carbon emissions.
      • Participate in carbon trading.

    Green Hydrogen Standards

    • Under National Green Hydrogen Mission
    • Focus: Emission thresholds and technical standards for classifying hydrogen as “Green Hydrogen”.
    • Purpose: Ensure Transparency, Credibility, Investor confidence, Development of green hydrogen ecosystem.

    India’s Climate Principles

    India highlighted: Equity, Common but Differentiated Responsibilities and Respective Capabilities (CBDR-RC), Multilateral cooperation.

    India-Japan Discussions at WTO

    • India and Japan discussed:
      • Transparency in climate-related trade measures.
      • Concerns regarding unilateral trade-restrictive environmental measures.
    • Focus: Avoiding unnecessary barriers to international trade.

    About WTO Trade and Environment Week

    • Organized under: World Trade Organization
    • Purpose: Discuss links between Trade, Climate change, Sustainability, and Environmental regulations.

    [2025] Consider the following statements:
    Statement I: Article 6 of the Paris Agreement on climate change is frequently discussed in global discussions on sustainable development and climate change.
    Statement II: Article 6 of the Paris Agreement on climate change sets out the principles of carbon markets.
    Statement III: Article 6 of the Paris Agreement on climate change intends to promote inter-country non-market strategies to reach their climate targets.
    Which one of the following is correct in respect of the above statements?

    [A] Both Statement II and Statement III are correct and both of them explain Statement I

    [B] Both Statement II and Statement III are correct but only one of them explains Statement I

    [C] Only one of the Statements II and III is correct and that explains Statement I

    [D] Neither Statement II nor Statement III is correct

  • India’s Biodiversity: Commitments and Achievements

    Why in News?

    The Government of India highlighted recent achievements and policy measures related to biodiversity conservation, governance, and sustainable use under the Convention on Biological Diversity (CBD).

    Biodiversity Governance Structure

    • India follows a three-tier biodiversity governance system:
      • National Biodiversity Authority at national level
      • State Biodiversity Boards (SBBs)
      • Biodiversity Management Committees (BMCs) at local level.
    • India has:
      • More than 2,76,653 Biodiversity Management Committees (BMCs)
      • Over 2,72,648 People’s Biodiversity Registers (PBRs).

    Note: Biodiversity Management Committees (BMCs) are local-level statutory bodies in India, mandated by the Biological Diversity Act of 2002.

    About Biodiversity

    • Biodiversity refers to the variety of life forms including:
      • Plants
      • Animals
      • Microorganisms
      • Ecosystems.

    Biological Diversity Act, 2002

    • India’s principal law for:
      • Biodiversity conservation
      • Sustainable use
      • Fair and equitable benefit sharing.

    Biological Diversity (Amendment) Act, 2023

    • Promotes:
      • Research and innovation
      • Traditional knowledge-based practices
      • Community participation.

    Important Concepts

    People’s Biodiversity Register (PBR)

    • Local biodiversity database prepared by BMCs.
    • Records:
      • Biological resources
      • Traditional knowledge
      • Local species and habitats.

    Access and Benefit Sharing (ABS)

    • Ensures benefits from biological resources are shared with local communities.

    Nagoya Protocol

    • Supplementary agreement under CBD adopted in Nagoya, Japan in 2010.
    • Focuses on fair sharing of benefits arising from genetic resources.

    Kunming-Montreal Global Biodiversity Framework (KMGBF)

    • Adopted during CBD COP-15 in Montreal in 2022.
    • Global target:
      • Halt and reverse biodiversity loss by 2030.

    National Biodiversity Strategy and Action Plan (NBSAP 2024-2030)

    • Aligns India’s biodiversity goals with KMGBF.
    • Promotes:
      • Whole-of-government
      • Whole-of-society approach.

    Key Achievements

    Forests and Protected Areas

    • Forest and tree cover: 8.27 lakh sq. km (25.17% of geographical area).
    • Protected areas: More than 1,134 protected areas covering 1.88 lakh sq. km.

    Species Conservation

    • Tiger population increased from: 2,226 (2014) to 3,682.

    Community Participation

    • National campaign underway for digitisation of PBRs into e-PBRs.

    ABS Achievements

    • ₹145 crore released to beneficiaries till May 2026.
    • Benefited around 11,000 BMCs (Biodiversity Management Committees).

    [2023] Consider the following statements:
    1. In Biodiversity the India, Management Committees are key to the realization of the objectives of the Nagoya Protocol.
    2. The Biodiversity Management Committees have important functions in determining access and benefit sharing, including the power to levy collection fees on the access of biological resources within its jurisdiction.
    Which of the statements given above is/are correct?

    [A] 1 only

    [B] 2 only

    [C] Both 1 and 2

    [D] Neither 1 nor 2

  • [5th June 2026] The Hindu OpED: Funding India’s climate future, a trillion-dollar question

    PYQ Relevance[UPSC 2022] Describe the major outcomes of the 26th session of the Conference of the Parties (COP26) to the United Nations Framework Convention on Climate Change (UNFCCC). What are the commitments made by India in this conference?Linkage: The PYQ tests understanding of India’s climate commitments and the policy mechanisms required to achieve them. The PYQ asks about India’s climate targets, while the article explains the climate-finance architecture needed to fund and implement those targets.

    Mentor’s Comment

    India’s climate finance challenge has come into sharp focus on World Environment Day amid striking estimates that the country requires nearly ₹162.5 trillion (about $2.5 trillion) by 2030 to meet its Nationally Determined Contributions (NDCs), and around $10.1 trillion to achieve net-zero emissions by 2070. The issue has gained significance because India is no longer merely discussing climate action but is now confronting the financing architecture required to implement it at scale.

    Why is India’s climate finance requirement unprecedented?

    1. NDC Financing Requirement: India requires nearly ₹162.5 trillion (around $2.5 trillion) by 2030 to achieve its Nationally Determined Contributions.
    2. Net-Zero Financing Need: Achieving net-zero emissions by 2070 requires approximately $10.1 trillion.
    3. Scale of Challenge: The estimated requirement is nearly three times India’s current GDP.
    4. Investment Imperative: Climate finance must support mitigation, adaptation, resilient infrastructure, and low-carbon development simultaneously.

    How large is the financing gap in key emitting sectors?

    1. Sectoral Concentration: Steel, cement, power, and road transport account for more than half of India’s carbon emissions.
    2. Additional Capital Need: These four sectors alone require an additional $467 billion between 2022 and 2030.
    3. Annual Requirement: Equivalent to roughly $54 billion annually.
    4. GDP Share: Represents nearly 1.3% of GDP annually.
    5. Economic Viability Constraint: Green steel and green cement remain commercially challenging without policy support and regulatory incentives.
    6. Private Sector Limitation: Large-scale private investment remains difficult without de-risking mechanisms.

    Why is international climate finance insufficient?

    1. Developing Country Requirement: Developing economies require nearly $5-6 trillion for climate action by 2030.
    2. Unfulfilled Commitment: Developed countries promised $100 billion annually under climate finance commitments but failed to consistently meet the target.
    3. Baku NCQG Commitment: The New Collective Quantified Goal (NCQG) commits approximately $300 billion annually by 2035.
    4. Adequacy Concern: India considers this commitment insufficient relative to actual financing needs.
    5. RBI Assessment: RBI estimates India requires additional annual investment of at least 2.5% of GDP for green financing until 2030.
    6. Domestic Mobilisation Necessity: Most climate finance will need to be raised within India rather than relying on external support.

    What progress has India already made in climate finance?

    1. Green Debt Mobilisation: India issued $55.9 billion in green, social, sustainability, and sustainability-linked debt by the end of 2024.
    2. Rapid Growth: Represents a 186% increase since 2021.
    3. Green Bond Dominance: Green debt constituted approximately 83% of total sustainable debt issuance.
    4. Sectoral Allocation: Most funds flowed into clean energy and transport sectors.
    5. Sovereign Green Bonds: Government-issued sovereign green bonds worth approximately ₹477 billion helped establish market benchmarks.
    6. Investor Confidence: Sovereign issuance improved credibility and attracted long-term investors.

    Why is institutional architecture more important than funding availability?

    1. Instrument Availability: Green bonds, sovereign green bonds, blended finance, transition finance instruments, and Infrastructure Investment Trusts (InvITs) already exist.
    2. Missing Ecosystem: Absence of taxonomy, guarantee mechanisms, liquidity support, and regulatory incentives constrains deployment.
    3. Cost Differential: Green projects often face higher financing costs than conventional projects.
    4. Capital Deployment Challenge: The principal bottleneck lies in directing capital efficiently toward climate priorities.
    5. Institutional Deficit: Finance exists but deployment architecture remains underdeveloped.

    How has the RBI emerged as a major climate-finance regulator?

    1. Climate Risk Directions: RBI issued Climate Finance and Management of Climate Risks Directions for commercial banks and Small Finance Banks in 2025.
    2. Risk Integration: Requires climate risks to be integrated into lending and risk-management practices.
    3. Priority Sector Lending Recognition: Eligible green activities can qualify under Priority Sector Lending (PSL).
    4. Sovereign Green Bond Recognition: Investments in sovereign green bonds receive regulatory recognition.
    5. Financial Mainstreaming: Climate considerations are being embedded into core banking operations.

    Why is Priority Sector Lending becoming a climate-finance lever?

    1. PSL Scale: Banks must ensure approximately ₹4,000 crore of PSL lending for every ₹10,000 crore of loans.
    2. Credit Reallocation Potential: Enables large-scale redirection of credit toward green sectors.
    3. Regulatory Leverage: Provides a powerful mechanism to channel finance into climate-sensitive activities.
    4. Adaptation Financing Opportunity: Climate adaptation projects can be incorporated into PSL frameworks.

    What additional regulatory reforms has the RBI proposed?

    1. Green Bond Collateralisation: Proposal to accept sovereign green bonds as collateral with greater flexibility.
    2. Reserve Requirement Adjustments: Scope for modifying reserve requirements to support green credit.
    3. Differentiated Capital Requirements: Lower capital requirements for green lending and higher requirements for carbon-intensive lending.
    4. Climate Risk Pricing: Encourages incorporation of climate risks into financial decision-making.
    5. Climate Stress Testing: Supports comprehensive climate stress-testing frameworks for banks.
    6. Regulatory Sandbox: Sustainable finance initiatives have been included within RBI’s regulatory sandbox.
    7. Climate Risk Information System: Development of systems for climate-related financial risk assessment.

    Why is a Climate Finance Taxonomy critical?

    1. Definition Standardisation: Establishes a legal and technical definition of what qualifies as “green”.
    2. Investor Confidence: Enables verification of sustainable investments.
    3. Greenwashing Prevention: Reduces misleading sustainability claims.
    4. PSL Classification Support: Improves classification of green activities under banking regulations.
    5. International Compatibility: Facilitates participation of global investors.
    6. Policy Foundation: Forms the basis of the broader climate-finance ecosystem.

    How can blended finance unlock private capital?

    1. Blended Finance Model: Uses public or concessional capital to de-risk private investment.
    2. Capital Mobilisation Effect: A first-loss guarantee of $100 million can unlock $500 million to $1 billion in private investment.
    3. Target Sectors: Solar energy, offshore wind, green hydrogen, climate-resilient agriculture, and resilient infrastructure.
    4. Risk Absorption: Public finance absorbs initial losses that private investors are unwilling to bear.
    5. Investment Multiplier: Generates substantially larger private-sector participation.

    Why is climate adaptation finance the most neglected area?

    1. Adaptation Deficit: Climate adaptation receives significantly less attention than mitigation.
    2. State-Level Responsibility: Adaptation programmes are largely implemented by states.
    3. Examples of Adaptation: Drought-proofing in Vidarbha and spring rejuvenation in Himalayan regions.
    4. State Capacity Constraint: States often lack borrowing power and institutional capacity to access international climate finance.
    5. Federal Finance Gap: Climate finance architecture remains insufficiently aligned with India’s federal structure.

    What reforms are necessary to close India’s climate finance gap?

    1. Climate Finance Taxonomy
      1. Classification Framework: Finalises nationally accepted definitions of green activities.
      2. Investment Clarity: Facilitates investment flows and prevents greenwashing
    2. RBI-Led Green Finance Regulation
      1. Capital Incentives: Introduces differentiated capital requirements.
      2. Mandatory Stress Testing: Embeds climate risk assessment into banking supervision.
      3. Expanded PSL: Includes climate adaptation alongside mitigation.
    3. State Climate Finance Facility
      1. Sub-National Financing: Enables states and municipalities to access green finance.
      2. Institutional Support: Utilises Union Government, NABARD, and international sources.
    4. Expansion of Sovereign Green Bonds
      1. Market Deepening: Strengthens domestic green bond markets.
      2. Foreign Capital Attraction: Encourages long-term international investment.
      3. SLR Integration: Embeds sovereign green bonds within statutory liquidity frameworks.

    Conclusion

    As the UNEP notes, the world faces a climate emergency but also a financing opportunity. For India to achieve its NDC targets by 2030 and net-zero by 2070, the challenge is not merely raising capital but building institutions that can channel finance at scale. A robust climate-finance architecture will be critical to translating ambition into action and ensuring sustainable growth.