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Subject: Global Groupings and Conventions

Important International institutions, agencies and fora- their structure, mandate.

  • India should be part of RCEP, CPTPP: NITI Aayog CEO

    Why in the News?

    According to NITI Aayog CEO, India should join the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

    What are the implications of India joining RCEP and CPTPP?

    • Enhanced Trade Opportunities: Joining RCEP and CPTPP could significantly boost India’s trade by providing access to larger markets, particularly in Asia-Pacific regions.
      • These agreements encompass a wide range of goods and services, potentially increasing India’s exports, especially from its Micro, Small & Medium Enterprises (MSMEs), which account for 40% of exports.
    • Integration into Global Supply Chains: Participation in these trade blocs would facilitate India’s integration into global supply chains, allowing it to benefit from the ‘China plus one’ strategy that many countries are adopting to diversify their supply sources away from China.
      • This could enhance India’s manufacturing sector and attract foreign investment.
    • Regulatory Alignment: Being part of these agreements would necessitate aligning India’s regulatory frameworks with international standards, which could improve the business environment and attract more foreign direct investment (FDI).

    How does India’s current tariff structure affect its competitiveness in global trade?

    India’s current tariff structure is characterized by relatively high average tariffs compared to other major economies. For instance:

    • Average Tariffs: India has an average applied tariff of approximately 13.8%, which is higher than that of China (9.8%) and the U.S. (3.4%) but lower than some other countries when considering trade-weighted averages.
    • High Bound Tariffs: Many of India’s bound tariff rates on agricultural products are among the highest globally, ranging from 100% to 300%, creating significant barriers for foreign exporters.

    What are the risks associated with joining RCEP, particularly concerning competition with China?

    • Increased Competition with China: One of the primary risks of joining RCEP is the potential for increased competition with Chinese firms, which may have cost advantages due to economies of scale and established supply chains.
    • Pressure on Domestic Industries: Opening up to international competition might pressure local industries, particularly in sectors where they are less competitive compared to their counterparts in member countries.
      • This could lead to job losses and require significant adjustments within certain sectors.
    • Easy geopolitical Impact on the economy: Increased reliance on trade agreements may expose India to external economic fluctuations, particularly if global demand shifts or if geopolitical tensions impact trade dynamics within these blocs.

    Way forward: 

    • Selective Tariff Reductions and Safeguards for Sensitive Sectors: India should negotiate phased tariff reductions and secure safeguards for vulnerable sectors like agriculture and small manufacturing.
      • This approach would protect local industries while allowing gradual integration into RCEP and CPTPP markets.
    • Strengthening Domestic Industries and MSMEs: India can boost competitiveness by enhancing MSME support through targeted subsidies, infrastructure improvements, and technology upgrades. Strengthening these sectors will help India leverage new market access and build resilience against foreign competition.

    Mains PYQ:

    Q Evaluate the economic and strategic dimensions of India’s Look East Policy in the context of the post-Cold War international scenario. (UPSC IAS/2016)

  • Comprehensive Nuclear-Test-Ban Treaty Organization (CTBTO)

    Why in the News?

    • Two earthquakes struck Iran sparking rumours of a nuclear test.
      • However, the Comprehensive Nuclear-Test-Ban Treaty Organization (CTBTO) in Vienna swiftly refuted these claims using its International Monitoring System (IMS) designed to detect nuclear tests.

    About International Monitoring System (IMS):

    • IMS is a global monitoring network established by the CTBTO to detect nuclear explosions anywhere in the world.
    • It is a global network of over 300 monitoring facilities across 89 countries, using seismic, infrasound, hydroacoustic, and radionuclide technologies to detect nuclear explosions worldwide.
    • The CTBTO shares IMS data with member-states in near real-time, ensuring access to accurate, verified data.
      • Over 16 gigabytes of data are transmitted daily from IMS stations to the CTBTO’s International Data Centre (IDC) in Vienna.
    • Analysts use this IMS data to distinguish natural events (like earthquakes) from nuclear explosions.

    About Comprehensive Nuclear-Test-Ban Treaty Organization (CTBTO):

    Details
    Location Based in Vienna, Austria.
    Established Created to implement the Comprehensive Nuclear-Test-Ban Treaty (CTBT), opened for signature in 1996.
    Purpose of the CTBT Aims to ban all nuclear explosions worldwide, regardless of purpose (military or civilian).
    Key Elements of the CTBT • Total Ban on Nuclear Tests: Prohibits all nuclear explosions.
    • Verification Mechanisms: Establishes a global monitoring network and allows for on-site inspections.
    • Distant Monitoring by IMS: Employs technologies for monitoring compliance.
    Signature and Ratification Signed by 183 states and ratified by 164; has not entered into force as eight specific states among 44 Annex-2 states have yet to ratify.
    Key Non-Ratifying States The states that have not ratified the treaty include United States, China, Iran, Egypt, Israel, India, Pakistan, and North Korea.
    Compliance Verification CTBT establishes a global monitoring network of over 300 facilities for detection and verification, along with provisions for on-site inspections.
    Significance Plays a crucial role in global efforts toward nuclear disarmament and non-proliferation, fostering international cooperation and stability.

     

    PYQ:

    [2018] What is/are the consequence/consequences of a country becoming the member of the ‘Nuclear Suppliers Group’?

    1. It will have access to the latest and most efficient nuclear technologies.
    2. It automatically becomes a member of “The Treaty on the Non-Proliferation of Nuclear Weapons (NPT)”.

    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

    [2011] Recently, the USA decided to support India’s membership in multilateral export control regimes called the “Australia Group” and the “Wassenaar Arrangement”. What is the difference between them?

    1. The Australia Group is an informal arrangement which aims to allow exporting countries to minimize the risk of assisting chemical and biological weapons proliferation, whereas the Wassenaar Arrangement is a formal group under the OECD holding identical objectives.
    2. The Australia Group comprises predominantly Asian, African and North American countries whereas the member countries of Wassenaar Arrangement are predominantly from the European Union and American Continents.

    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

  • India and Spain slam attacks on UN troops in Lebanon

    Why in the News?

    During mid-October, 34 UNIFIL troop-contributing Nations condemned attacks on peacekeepers and urged respect for UNIFIL’s mission. Although not listed, India expressed full alignment with the joint statement.

    About UNIFIL: 

    UNIFIL (United Nations Interim Force in Lebanon) is a peacekeeping mission established in 1978, focused on monitoring the cessation of hostilities, supporting Lebanese stability, and ensuring security along the Lebanon-Israel Blue Line.

    What prompted the condemnation from India and Spain regarding the attacks on UN peacekeepers?

    • Repeated Targeting of Peacekeepers: Peacekeepers, including Indian personnel, faced direct attacks, such as IDF tank fire on UNIFIL positions and deliberate disabling of surveillance systems. Spain, along with other European countries, condemned these attacks as “unjustifiable.”
    • Violation of International Norms: These attacks on UN peacekeeping personnel and facilities violated the UN mandate, undermining the peacekeepers’ protection under international humanitarian law. Both India and Spain view this as a significant breach of norms that safeguard the sanctity of UN missions.
    • Response to Escalating Risk to Peacekeepers: Statements from both India and Spain emphasized the need for respecting UN premises’ “inviolability” and maintaining safety for peacekeepers amidst escalations, underscoring the importance of ensuring the protection and security of peacekeepers.

    What is the significance of UNIFIL’s role in Lebanon, and how do India and Spain view it?

    • Peacekeeping and Stability: UNIFIL is crucial in mediating and maintaining peace along the Blue Line between Israel and Lebanon. Its presence serves as a stabilizing force, helping prevent spillovers of conflict, which is essential for regional peace.
    • India’s Role as a Major Contributor: With 903 personnel deployed, India plays a substantial role in peacekeeping efforts, reflecting its commitment to UN missions and highlighting the need for global respect toward UN mandates.
    • Spain’s Support for UNIFIL’s Mission: Spain aligns with other European countries in reinforcing UNIFIL’s role in regional stability. By condemning attacks, Spain emphasizes the importance of this mission in Lebanon and, by extension, its support for UN peacekeeping mandates globally.

    How do these events relate to broader geopolitical tensions in the region?

    • Regional Escalations and Proxy Conflicts: The ongoing conflict between Israel and Hezbollah, particularly in Lebanon, feeds into broader geopolitical dynamics involving Israeli security concerns, Lebanese stability, and Iran’s influence through Hezbollah.
    • Impact on Global Diplomacy: The hostilities and targeting of UN peacekeepers may strain diplomatic relations, as countries urge Israel to respect international norms and safeguard peacekeepers. This may influence the UN Security Council’s approach, emphasizing a unified international stance against actions threatening UN missions.
    • Pressure on Multinational Cooperation and Regional Security: The events underscore the risks of operating in volatile zones where multinational peacekeeping efforts face direct threats.

    Way forward:

    • Strengthen Diplomatic Engagement: India should actively engage with the UN Security Council and regional stakeholders to advocate for stringent measures ensuring the protection of UN peacekeepers and upholding the sanctity of UN mandates in conflict zones.
    • Enhance Contingency Protocols for Peacekeepers: India should work with UNIFIL and other troop-contributing countries to strengthen on-ground security protocols and response mechanisms.

  • [pib] International Energy Efficiency Hub

    Why in the News?

    The Union Cabinet has approved the signing of a ‘Letter of Intent’ that will enable India to join the International Energy Efficiency Hub (Hub).

    About the International Energy Efficiency Hub

    • The Hub was established in 2020 as the successor to the International Partnership for Energy Efficiency Cooperation (IPEEC), of which India was already a member.
    • It is a global platform that promotes collaboration and energy efficiency among governments, international organizations, and the private sector.
    • Members: As of July 2024, 16 countries (Argentina, Australia, Brazil, Canada, China, Denmark, the European Commission, France, Germany, Japan, Korea, Luxembourg, Russia, Saudi Arabia, the US, and the UK.)
    • The Bureau of Energy Efficiency (BEE), a statutory agency, has been designated as the implementing agency for India’s participation in the Hub.

    Significance for India

    • India will benefit from opportunities to collaborate with other member states as a member.
    • India can share its expertise and learn from international best practices in energy efficiency.
    • The country will also contribute to global efforts to address climate change by promoting energy-efficient technologies and practices.
    • India’s participation will:
      • Accelerate the transition to a low-carbon economy.
      • Improve energy security by adopting more efficient energy practices.

    Back2Basics: Bureau of Energy Efficiency (BEE) 

    Details
    Establishment Established in March 2002 under the Energy Conservation Act, 2001
    Objective To promote energy efficiency and conservation, reduce energy intensity, and enhance energy security
    Governing Body Functions under the Ministry of Power, Government of India
    Key Functions • Develops energy efficiency policies and strategies
    • Implements energy conservation programs
    • Coordinates with various sectors like industry, transport, and municipalities on energy efficiency
    • Promotes R&D in energy conservation technologies
    Key Initiatives • Standards and Labeling Program (Star rating system for appliances)
    • Perform, Achieve, and Trade (PAT) Scheme (for energy-intensive industries)
    • Energy Conservation Building Code (ECBC) (for commercial buildings)
    • National Mission for Enhanced Energy Efficiency (NMEEE)
    • Energy Efficiency Financing Platform (EEFP)
    Important Programs • National Energy Conservation Awards
    • Demand Side Management (DSM)
    • Street Lighting National Program (SLNP) (LED streetlight replacement)
    Goals • Reduce energy intensity in India
    • Improve energy efficiency in key sectors like agriculture, industry, buildings, and appliances
    • Contribute to sustainable development and reduce greenhouse gas emissions
    International Cooperation Collaborates with UNDP, World Bank, and ADB on energy efficiency projects globally
    Legislative Framework Operates under the Energy Conservation Act, 2001
    Achievements • Significant reduction in carbon emissions
    • Supports India’s climate commitments under the Paris Agreement

     

    PYQ:

    [2016] On which of the following, can you find the Bureau of Energy Efficiency Star Label?

    1. Ceiling fans

    2. Electric geysers

    3. Tubular fluorescent lamps

    Select the correct answer using the codes given below:

    (a) 1 and 2 only

    (b) 3 only

    (c) 2 and 3 only

    (d) 1, 2 and 3

  • UK backs permanent seat in UNSC for India

    Why in the News?

    UK PM Keir Starmer has expressed strong support for India’s bid for a permanent seat at the United Nations Security Council (UNSC).

    About United Nations Security Council (UNSC)

    Details
    Establishment By the UN Charter in 1945 as one of the six principal organs of the United Nations.
    Other UN Organs General Assembly, Trusteeship Council, Economic and Social Council, International Court of Justice, Secretariat
    Primary Responsibility Maintaining international peace and security
    Headquarters New York City, USA
    Members 15 members: 5 permanent members (US, UK, Russia, China, France) and 10 non-permanent members (elected for two-year terms)
    Permanent Members US, UK, Russia, China, France
    Non-permanent Members 10 elected members; require two-thirds majority in the General Assembly to be elected
    Presidency Rotation Every month among the 15 members
    Voting and Veto Power Permanent members have veto power; non-permanent members have no veto but resolutions require at least 7 non-permanent members’ votes for approval, even with unanimous permanent support
    India’s Participation India has been elected as a non-permanent member of the UNSC eight times: 1950-51, 1967-68, 1972-73, 1977-78, 1984-85, 1991-92, 2011-12, 2021-22
    Responsibilities & Powers Mediation, dispatching UN missions, appointing envoys, issuing ceasefire directives, peacekeeping, sanctions, arms embargo, and issuing binding resolutions
    UNSC Reforms Process Stage 1: Requires a two-thirds majority (128 votes) in the General Assembly (193 member states) for approval.
    Stage 2: Amended Charter must be ratified by at least two-thirds of member states, including all five permanent members, who may exercise veto power. Their national parliaments also influence the ratification process.

     

    PYQ:

    [2009] The Security Council of UN consists of 5 permanent members, and the remaining 10 members are elected by the General Assembly for a term of:

    (a) 1 year

    (b) 2 years

    (c) 3 years

    (d) 5 years

    [2015] Discuss the impediments India is facing in its pursuit of a permanent seat in the UN Security Council.

  • Minerals Security Partnership Finance Network (MSFN)

    Why in the News?

    India has officially joined the US-led Minerals Security Finance Network (MSFN), a global initiative to strengthen cooperation in securing critical mineral supply chains.

    What is the Minerals Security Finance Network (MSFN)?

    • The MSFN is an initiative emerging from the Minerals Security Partnership (MSP), established by the US in 2022.
    • It aims to promote cooperation, information exchange, and co-financing among countries.
    • It brings together development finance institutions (DFIs) and export credit agencies (ECAs) from partner nations to facilitate investments in critical mineral supply chains.
    • It seeks to meet the increasing global demand for critical minerals and reduce dependence on dominant suppliers like China.

    About Minerals Security Partnership (MSP):

    Details
    Established 2022, by the United States
    Objective To ensure a stable, diversified, and secure supply of critical minerals essential for the global clean energy transition.
    Members 13 countries and the European Commission, including:
    United States, Australia, Canada, Estonia, Finland, France, Germany, India, Italy, Japan, Republic of Korea, Norway, Sweden, and the European Union.
    Focus Areas • Securing critical minerals such as lithium, cobalt, nickel, and rare earth elements.
    • Reducing dependency on dominant suppliers like China.
    • Promoting cooperation between development finance institutions (DFIs) and export credit agencies (ECAs) to finance critical mineral projects.
    Significance for India • India joined in June 2023, aiming to secure minerals for its growing electric vehicle (EV) and electronics sectors.
    • India seeks to diversify its supply sources from Argentina, Chile, Australia, and Africa.

    Significance of Critical Minerals

    • Critical minerals are elements essential for the manufacturing of renewable energy technologies, such as electric vehicle (EV) batteries, solar panels, wind turbines, and semiconductors.
    • Some of the most important critical minerals include:
      • Lithium: Essential for EV batteries.
      • Cobalt: Used in batteries and electronics.
      • Nickel: Key for battery manufacturing.
      • Rare earth elements (REEs): Used in semiconductors, high-tech electronics, and military applications.
    • The global demand for these minerals is rapidly rising as countries aim to shift away from fossil fuels to renewable energy sources.
    • China is currently the world leader in both the mining and processing of many of these critical minerals, creating concerns about the concentration and resilience of supply chains.
    • Securing a reliable, diversified supply of critical minerals is essential for nations looking to achieve their clean energy goals and ensure economic stability in high-tech sectors.

    PYQ:

    [2012] Recently, there has been a concern over the short supply of a group of elements called ‘rare earth metals’. Why?

    1. China, which is the largest producer of these elements, has imposed some restrictions on their export.
    2. Other than China, Australia, Canada and Chile, these elements are not found in any country.
    3. Rare earth metals are essential for the manufacture of various kinds of electronic items and there is a growing demand for these elements.

    Which of the statements given above is/are correct?

    (a) 1 only
    (b) 2 and 3 only
    (c) 1 and 3 only
    (d) 1, 2 and 3

  • Quad meet launches maritime and health initiatives

    Why in the News?

    The recent summit of the Quad leaders resulted in several significant initiatives aimed at enhancing cooperation among the member countries—India, the United States, Australia, and Japan.

    What are the initiatives taken by QUAD?

    • Quad Cancer Moonshot: This initiative focuses on combating cervical cancer, with India committing $10 million for screening efforts. The Serum Institute of India and Gavi aim to provide up to 40 million vaccines for the region, pending regulatory approvals.
    • Quad-at-Sea Ship Observer Mission: Scheduled for 2025, this mission aims to enhance interoperability and maritime safety among Quad nations.
    • Logistics Network Pilot Project: This project will facilitate the sharing of airlift capacity among Quad countries to support disaster response efforts across the region.
    • Maritime Initiative for Training in the Indo-Pacific (MAITRI): This initiative focuses on training Quad partners to monitor and secure their waters, enforce laws, and deter unlawful behavior. India is set to host the first MAITRI workshop in 2025.
    • Maritime Legal Dialogue: A new dialogue has been launched to uphold a rules-based order in maritime operations, condemning aggressive actions, particularly those related to China.

    What is MAITRI? 

    • MAITRI, or Maritime Initiative for Training in the Indo-Pacific, is a program designed to enhance the maritime capabilities of Quad partners.

    Its implications include:

    • Capacity Building: By training personnel from partner nations, MAITRI aims to improve their ability to monitor and secure their maritime territories effectively.
    • Enhanced Cooperation: The initiative fosters closer collaboration among Quad countries in maritime security, which is crucial given rising tensions in regions like the South China Sea.
    • Regional Stability: By equipping nations with better tools and knowledge to enforce maritime laws and deter unlawful activities, MAITRI contributes to greater stability in the Indo-Pacific region.

    What is the effectiveness of QUAD in recent times?

    • Condemnation of Aggression: The Quad has taken a strong stance against aggression in the East and South China Seas, signaling unity among member states regarding regional security concerns.
    • Support for Ukraine: The leaders expressed deep concern over the war in Ukraine and reiterated their commitment to international law, showcasing a collective approach to global issues beyond regional security.
    • Expanded Fellowship Programs: The Quad fellowship program has been expanded to include additional scholarships for STEM education, reflecting a commitment to educational collaboration and capacity building in science and technology.
    • Focus on Health Initiatives: The launch of the Quad Cancer Moonshot demonstrates a proactive approach towards public health challenges, particularly in addressing cervical cancer through international cooperation.

    Way forward: 

    • Strengthen Maritime Security Collaboration: Quad nations should deepen cooperation through initiatives like MAITRI and the Quad-at-Sea mission to enhance maritime security, law enforcement, and interoperability in the Indo-Pacific, ensuring stability amidst regional tensions.
    • Expand Multilateral Health and Development Programs: Building on the success of initiatives like the Quad Cancer Moonshot, the Quad should further invest in collaborative healthcare, disaster response, and capacity-building projects to address pressing global challenges and strengthen resilience across member states.

    Mains PYQ:

    Q  Quadrilateral Security Dialogue (Quad) is transforming itself into a trade bloc from a military alliance, in present times Discuss. (UPSC IAS/2020)

  • With uncertainty across the Atlantic, Europe worries about its own security    

    Why in the news?

    When Donald Trump suggested during the 2016 presidential campaign that he might not honor the U.S. commitment to defend NATO allies if attacked, it alarmed the trans-Atlantic alliance.

    NATO country member’s flags flutter at the bloc’s headquarters in Brussels

    • NATO’s Structure and Membership: NATO, established in 1949, comprises 31 member countries, including the United States, Canada, and various European nations. The alliance was formed to ensure collective defence against potential threats, particularly from the Soviet Union during the Cold War.
      • The flags of these member countries flutter at NATO’s headquarters in Brussels, symbolising unity and cooperation.
    • Evolving Role of European Nations: In light of recent geopolitical challenges, particularly Russia’s invasion of Ukraine, European leaders recognize the need to take on greater responsibility for their own defense.
      • This shift is partly a response to the U.S. focus on other global threats, such as China, and the changing dynamics within NATO

    Security issues with European Countries and US support:

    • European Acknowledgement: European leaders recognize the need to evolve NATO to meet 21st-century challenges and are prepared to take on more responsibility for their defense.
    • US Military Support: Mr Trump’s presidency highlighted that US military support is not guaranteed, prompting Europe to reconsider its security strategies.
    • Threats from Russia and China: Russia’s invasion of Ukraine and the US’s focus on China’s expansion in the Asia-Pacific, as well as Iran and North Korea, underscore the need for Europe to enhance its own security measures.
    • NATO’s Evolution: European nations must increase their defense spending and capabilities, including troop numbers, equipment upgrades, and countering technological threats.

    A wake-up call for all:

    • Trump’s “America First” Rhetoric:  Trump’s suggestion that the US might not honour its NATO commitments triggered the alarm and a reevaluation of NATO’s future.
    • Increased European Defense Spending: European NATO members have significantly increased their defense spending commitments, with 23 out of 31 non-US members meeting or exceeding the 2% GDP target, up from just three members ten years ago.
    • EU Defense Industry Boost: The EU is planning to enhance its defense industry, with calls for more independence in airspace defence and relocating production to Europe, especially in response to the threat posed by Russia’s actions in Ukraine.

    Conclusion: European NATO members should continue to enhance their defense spending, focusing on upgrading military equipment, increasing troop numbers, and improving technological capabilities to counter both conventional and emerging threats such as cyber warfare and foreign interference.

    Mains PYQ: 

    Q The new tri-nation partnership AUKUS is aimed at countering China’s ambitions in the Indo-Pacific region. Is it going to supersede the existing partnerships in the region? Discuss the strength and impact of AUKUS in the present scenario. (UPSC IAS/2021)

  • India to ratify High Seas Treaty

    Why in the News? 

    India has chosen to endorse and formally adopt the High Seas Treaty, a global accord aimed at conserving and safeguarding biodiversity in the oceans.

    • This treaty is frequently linked to the 2015 Paris Agreement due to its extensive scope and potential influence.

    What is the ‘High Seas Treaty’ agreement?

    • The agreement being referred to is the Biodiversity Beyond National Jurisdiction (BBNJ) Agreement, also known as the High Seas Treaty.
    • Aim: To address the conservation and sustainable use of marine biodiversity in areas beyond national jurisdiction, which constitute about 64% of the ocean surface.
    • Objective:  To establish a framework for governing activities in these high seas areas to ensure environmental protection, regulate resource extraction, and promote equitable sharing of benefits from marine genetic resources.
      • It operates within the framework of the United Nations Convention on the Law of the Sea (UNCLOS) and aims to strengthen international cooperation and governance for the preservation of marine biodiversity.

    Significance of the Treaty:

    • Conservation of Marine Biodiversity: It covers a vast portion of the global ocean- these areas are crucial for maintaining biodiversity and ecosystem functions that are vital for global marine health.
    • Governance and Regulation: The treaty establishes a framework for governing human activities in the high seas, such as fishing, mining, and bioprospecting. It seeks to regulate these activities to ensure they are sustainable and do not cause irreversible harm to marine ecosystems.
    • Global Environmental Protection: Similar to the Paris Agreement on climate change, the BBNJ Agreement represents a global effort to protect and manage resources that are essential for the well-being of present and future generations.
      • Addressing threats like overfishing and habitat destruction, it contributes to global efforts towards sustainable development and environmental conservation.
    • Equitable Sharing of Benefits: The treaty includes provisions such as pharmaceutical developments. This ensures that benefits derived from these resources are shared fairly among countries and communities, promoting global equity and access to valuable resources.
    • International Collaboration: It fosters international cooperation and collaboration in ocean governance.
      • By bringing together countries it strengthens the rule of law and promotes transparency and accountability in global ocean management.

    Comparison with the 2015 Paris Agreement on climate change

    Dimensions  High Seas Treaty- Biodiversity Beyond National Jurisdiction (BBNJ) 2015 Paris Agreement 
    Scope and Focus Marine biodiversity conservation in the case of BBNJ Focuses on reducing greenhouse gas emissions and adapting to climate impacts
    Legal Framework It integrates with the UN Convention on the Law of the Sea (UNCLOS) Paris Agreement operates under the United Nations Framework Convention on Climate Change (UNFCCC).
    Approach to Governance Promotes governance structures that facilitate cooperation among nations to achieve common environmental goals. same
    Implications for Global Cooperation Underscore the importance of multilateralism and collective action in addressing global environmental challenges. same

     

    Conclusion: Need to establish robust mechanisms for implementing and monitoring the BBNJ Agreement at national and international levels. This includes setting up effective reporting systems, conducting regular assessments of biodiversity conservation measures, and ensuring compliance with regulations on resource extraction and marine genetic resources.

    Mains PYQ: 

    Q Describe the major outcomes of the 26th session of the Conference of the Parties (COP) to the United Nations Framework Convention on Climate Change (UNFCCC). What are the commitments made by India in this conference? (UPSC IAS/2021)

  • India achieves an ‘outstanding outcome’ in FATF mutual evaluation 2023-24 

    Why in the News?

    • India has achieved an outstanding outcome in the 2023-24 Mutual Evaluation by the Financial Action Task Force (FATF).
      • India is placed in the “regular follow-up” category, a distinction shared by only four other G-20 countries.

    FATF Evaluation:

    The reason behind India’s Achievements

    • High Level of Compliance: The FATF stated that India reached a high level of technical compliance with its requirements.
    • Effective Regimes: India’s AML (anti-money laundering), CFT (countering the financing of terrorism), and CPF (counter-proliferation financing) regimes achieved good results.
    • International Cooperation: Notable achievements include international cooperation, access to basic and beneficial ownership information, use of financial intelligence, and depriving criminals of their assets.

    Need Improvement

    • Non-Financial Sectors: The FATF noted that improvements are needed to strengthen the supervision and implementation of preventive measures in some non-financial sectors.
    • Prosecution Delays: India needs to address delays in concluding ML (money laundering) and TF (terrorist financing) prosecutions.
    • Non-Profit Sector Risks: Ensure CFT measures prevent the non-profit sector from being abused for TF, including conducting outreach to NPOs on their TF risks.

    Mitigation Efforts taken

    • Mitigating ML/TF Risks: FATF recognized India’s efforts in mitigating risks from ML/TF, including corruption, fraud, and organized crime.
    • Digital Economy Transition: Effective measures have been implemented to transition from a cash-based to a digital economy, reducing ML/TF risks.
    • JAM Trinity Implementation: The JAM (Jan Dhan, Aadhaar, Mobile) Trinity, along with stringent cash transaction regulations, has increased financial inclusion and digital transactions, making them more traceable.

    About Financial Action Task Force (FATF)

    • FATF was established in 1989 through the initiative of the G7 nations.
    • Its Secretariat is headquartered at the OECD headquarters in Paris, France.
    • FATF conducts 3 Plenary meetings during each of its 12-month rotating presidencies.
    • As of 2019, FATF consists of 37 member jurisdictions.

    India’s Engagement with FATF

    • Observer Status: India became an Observer at FATF in 2006, marking the beginning of its association with the organization.
    • Full Membership: On June 25, 2010, India officially became the 34th country to attain full membership in FATF, signifying its active participation and commitment to the organization’s objectives.

    Understanding the Mutual Evaluation Process

    • FATF’s mutual evaluation assesses countries’ frameworks against money laundering and terrorist financing, reviewing compliance with its 40 recommendations and effectiveness, resulting in a report with strengths, weaknesses, and improvement suggestions.

    FATF’s Evaluation of India

    • Comprehensive Assessment: FATF’s evaluation of India encompasses various aspects, including the nation’s legal framework, regulatory system, law enforcement efforts, and international collaboration.
    • Alignment with Global Standards: Central agencies in India have been actively working to ensure that the country’s anti-money laundering and counter-terrorism financing laws align with international standards and that their practical implementation is effective.

    Back2Basics: FATF Grey and Black List

    FATF maintains two primary lists to identify countries with deficiencies in their anti-money laundering and counter-terrorist financing (AML/CTF) regimes: the Grey List and the Black List.

    Grey List (Jurisdictions under Increased Monitoring): 

    It includes countries that have strategic deficiencies in their AML/CTF regimes but have committed to resolving these issues swiftly within agreed timeframes. These jurisdictions are subject to increased monitoring by the FATF. Ex. Turkey, Panama etc. (Pakistan and UAE have exited this list.)

    Impact:

    • Countries on the Grey List are required to work closely with the FATF to address the identified deficiencies.
    • Being on the Grey List can lead to economic repercussions such as reduced foreign investment and increased scrutiny from financial institutions and regulators globally.
    • The FATF regularly reviews the progress of these countries and updates the list accordingly.

    Black List (High-Risk Jurisdictions subject to a Call for Action): 

    It includes countries with significant strategic deficiencies in their AML/CTF regimes and have not made sufficient progress in addressing these issues. These jurisdictions are subject to a call for action to protect the international financial system from the risks emanating from these countries.

    Impact:

    • Countries on the Black List face severe economic and financial consequences. They are subject to enhanced due diligence and, in the most serious cases, counter-measures by FATF member states.
    • This listing can result in limited access to the international financial system such as IMF, World Bank; reduced foreign investment, and increased difficulty in conducting international business.

    Current Black List Countries:

    • North Korea
    • Iran
    • Myanmar (Burma) (added in February 2023)

     

    PYQ:

    [2021] Discuss how emerging technologies and globalisation contribute to money laundering. Elaborate measures to tackle the problem of money laundering both at national and international levels.