#GS3: -01. Disaster Mitigation

India lost $ 4.2 billion in 2022 to climate disasters, pointing to the need for a disaster mitigation plan. If such a plan is not put in place soon, not just Chennai but the entire nation’s claim of being an ideal investment destination will be questioned.
– WMO – World Meteorological Organization

#GS3: – 02. Financing Decarbonization

Decarbonization is very difficult for countries with high levels of debt. Fortunately, the number of countries that are in debt distress is relatively small. But the number of countries that are close to that distress is significant. And we see those levels going up by one percentage point Over the next few years.

Developing economies Need to do more domestically to raise financing and deepen domestic capital market stop articipate and invest in climate action.
-IMF Manag- Ingdirector Kristalina Georgieva

#GS4–#GS2: -03. Auditor’s Integrity

National Financial Reporting Authority (NFRA) has debarred two partners of a Mumbai-based firm for alleged professional misconduct in auditing DHFL’s FY18 accounts, as part of the watchdog’s efforts to improve audit quality.
-NCRB Data

The auditors had failed to meet the requirements of the audit standards, violated the law in significant areas, and did not apply professional scepticism and due diligence sufficiently to challenge management assertions.
-NFRA

#GS3: – 04. Arbitration and Group of Companies

An arbitration Agreement can be binding on non-signatory Firm sunder the “group of companies” doctrine. According to the doctrine, a firm which is not a signatory to an arbitration agreement between two parties can beheld bound if such a company is part of the same group of companies which agreed to such a clause or agreement.

“The ‘group of companies’ doctrine must be Retained in the Indian arbitration jurisprudence considering its utility in determining the intention of the parties in the context of complex transactions involving multiple parties and multiple agreements.
– Air India

#GS3: – 05. Sustainability

Sustainability heads are crafting a clean growth path for large businesses. The role is integral to business strategy and energy transition, beyond what was once a PR and brand building exercise.

Investors are asking questions around decarbonization targets and material risks from adverse climate events. Consumers too are demanding low carbon foot print products.

Smaller companies till look at Sustainability with a lens of regulatory compliance. Also, sustainability is still one of those business areas that is first to get its funding frozen during a crisis.

Environment, social and governance (ESG) objectives are no longer only about regulatory and legal compliance. Mindful consumers, especially in developed markets, are pushing for cleaner and greener products. Investors, too, are keen to see businesses take steps to reduce their carbon footprint and prepare for a rapidly warming world, though they are less willing to accept lower returns.
-Commentary in News

#Essay: -06. Regulation

There’s [no]magic about regulations—too much is bad, too little is bad.
-Hillary Clinton

#GS3: -07. Pledge of Tripling Renewable Energy Capacities

India has been called out for refraining from signing the Pledge on tripling renewable energy capacities by 2030 and doubling energy efficiency, as also the Declaration on Climate and Health.

The challenge, in the case of the former, is not the renewable energy (RE) and energy efficiency (EE) pledges, but an underlying commitment to a phase-down of unabated coal power, in particular ending “continued investment in unabated new coal-fired power plants.” India has ambitious plans to enhance its coal production capacity from 777 million tonnes in 2021-22 to over 1 billion tonnes in 2023-24. With 75% of its electricity coming from coal thermal plants, amounting to over 200GW in May 2023, India needs to evaluate its options on energy security. Its RE capacity stood at about 125 GW (net of hydro). Thus, while India is committed to more than tripling its RE capacity by 2030 with a target of 450GW, most of this capacity addition really caters to incremental electricity demand for powering an 8% rate of economic growth. In other words, India cannot recognize a phase-down of coal power production, in absolute terms, in the same document that we commit to enhanced RE and EE targets, unless we vastly increase our feedstock dependence on volatile international markets for lower-carbon gas (think of the Russia-Ukraine war and Israel-Hamas conflict) in the interim, or have adequate cutting-edge technologies and financial support to aim for much higher growth in renewables.