Important Events held on 18th and 19th May

RBI issues framework for acceptance of green deposits by banks, NBFCs

Important Events held on 18th and 19th May – 01

• The Reserve Bank of India (RBI) has issued a framework for the acceptance of green deposits by regulated entities (REs) such as banks and non-banking financial companies (NBFCs).
• The purpose of the framework is to encourage REs to offer green deposits to customers and promote sustainability.
• The framework aims to protect the interests of depositors, aid customers in achieving their sustainability agenda, address concerns related to greenwashing, and increase credit flow to green activities and projects.
• The guidelines will be effective from June 1, 2023.
• Green deposits will be utilized for financing activities related to renewable energy, green transport, and green buildings.
• The allocation of proceeds raised from green deposits should be based on the official Indian green taxonomy.
• In the absence of a finalized taxonomy, REs will be required to allocate the funds to a specified list of green activities/projects.
• The specified projects/activities should focus on energy efficiency, reducing carbon emissions and greenhouse gases, promoting climate resilience and adaptation, and enhancing natural ecosystems and biodiversity.
• Projects involving extraction, production, and distribution of fossil fuels, nuclear power generation, and direct waste incineration are excluded from the green deposit framework.
• Banks and NBFCs must establish a comprehensive board-approved policy on green deposits.

Implications of EU Carbon Border Adjustment Mechanism on Indian Businesses

Important Events held on 18th and 19th May – 02

Introduction:

• The EU has introduced the Carbon Border Adjustment Mechanism (CBAM) as part of its Green Deal initiative.
• CBAM aims to reduce greenhouse gas emissions and prevent carbon leakage by imposing a fee on the carbon emissions contained in specific imports.

Implementation and Phases:

• The European Parliament passed legislation for the implementation of CBAM on April 18, 2023.
• CBAM will be rolled out in four phases, with the Carbon Border Tax (CBT) becoming applicable from January 2026.
• The CBT will be imposed on imports of products like steel, aluminum, fertilizer, electricity, cement, and hydrogen.

Concerns and Criticisms from India:

• India, a developing country with a target of becoming carbon neutral by 2070, has expressed concerns about CBAM.
• India has raised objections to CBAM at international forums, including the World Trade Organization (WTO).
• The country emphasizes the importance of non-discriminatory treatment for similar products and warns about potential protectionist practices arising from CBAM.

Functionality of CBAM:

• CBAM ensures fair competition by addressing the carbon cost borne by EU installations under the EU Emissions Trading System (ETS) and imported products.
• It applies a fee on the carbon emissions in certain imports, equal to the fee imposed on domestic products under the ETS.
• The goal is to discourage companies from relocating their manufacturing operations outside the EU to evade climate regulations.

Implications for Indian Businesses:

• Indian manufacturing entities and exporters may face challenges due to the additional costs imposed by the carbon border tax.
• It could impact the competitiveness of Indian products in the EU market, potentially leading to reduced export volumes.
• Businesses in sectors like steel, aluminum, fertilizer, electricity, cement, and hydrogen may need to adapt their operations to comply with the EU’s carbon standards.

Business Actions to Prepare for CBAM:

• Assess the potential impact of CBAM on the business’s products and competitiveness in the EU market.
• Explore opportunities to reduce carbon emissions and improve energy efficiency to mitigate the impact of the carbon border tax.
• Engage in dialogue with EU counterparts, industry associations, and government bodies to advocate for fair treatment and address concerns regarding CBAM.

Overall, the EU’s Carbon Border Adjustment Mechanism poses trade restrictions that could impact Indian businesses. To prepare for the implementation of the carbon border tax, businesses should evaluate the implications, seek ways to reduce emissions, and engage in proactive communication and collaboration with relevant stakeholders.

• The transitional phase of the Carbon Border Adjustment Mechanism (CBAM) will be in effect from October 1, 2023, until December 31, 2025.
• During this phase, quarterly reports on greenhouse gas emissions of specific products imported into the EU will be required, covering both direct and indirect emissions.
• Starting from 2026, the purchase of CBAM certificates will be mandatory to cover GHG emissions.
• The cost of these certificates will be linked to carbon prices under the EU Emissions Trading System (ETS).
• CBAM will impose an additional cost on exporting to the EU market, which will be shared between the exporter or producer.
• This additional cost could impact the marketing strategies of exporters or producers.
• CBAM has drawn criticism from countries like China, India, some US industries, and many industries in developing countries.
• These countries rely heavily on coal-fired electricity, and the CBAM regulation could affect their manufacturing sectors.
• The regulation requires companies exporting iron, steel, fertilizers, or cement to the EU to calculate and pay for greenhouse gas and carbon emissions associated with each product.
• If the added cost cannot be absorbed, companies may have to explore trading with countries that do not have such a tax or revise their production methods to emit fewer greenhouse gases or carbon.
• While CBAM may benefit the environment, it could lead to supply chain fragmentation and increased costs.
• Businesses should carefully assess the potential impact of CBAM on their operations.
• They should also explore ways to become more environmentally sustainable in the long term to avoid disruptions to their business activities.

Products and Sectors Covered by CBAM:

1. Iron and Steel: CBAM applies to the iron and steel industry, which is responsible for a significant amount of global carbon emissions.
2. Cement: CBAM covers the cement sector, taking into account indirect emissions associated with cement production.
3. Fertilizers: Only indirect emissions from the fertilizer industry are considered under CBAM.
4. Aluminum: CBAM includes the aluminum industry, which is known for its high carbon intensity.
5. Electricity: The scope of CBAM extends to the electricity sector, targeting carbon-intensive electricity generation.
6. Hydrogen: CBAM also covers hydrogen production, particularly in relation to its carbon intensity.
7. Precursors and Downstream Products: CBAM includes certain precursors and a limited number of downstream products in the covered sectors.

Timeline for Expansion:

The CBAM Regulation mandates the European Commission to establish a timeline for gradually integrating all products covered under the EU Emissions Trading System (EU ETS) into CBAM, including indirect emissions and emissions from international transportation, by 2030.

Impact on Indian Exports and Mitigation Strategies:

1. Economic Impact: The implementation of CBAM by the EU is expected to have a significant economic impact on India’s exports of energy-intensive products such as steel, aluminum, cement, and fertilizers. Indian exporters may face higher prices, reduced competitiveness, and lower demand in the EU market.
2. Steel Industry: The steel industry is considered a hard-to-abate sector and a major contributor to global emissions. The rise in steel demand and energy-intensive production processes have led to increased carbon emissions.
3. Challenge to Indian Metal Sector: The CBAM implementation poses a significant challenge to India’s metal sector. In 2022, a substantial portion of India’s iron, steel, and aluminum exports went to the EU, and the CBAM will result in Indian firms paying a carbon tax on each consignment, potentially amounting to 20-35 percent of tariffs.
4. Impact on Product Competitiveness: The impact of CBAM on Indian exports depends on the carbon intensity of the products and their substitutes in the EU market. Products with high carbon intensity may face higher charges, reducing their competitiveness. However, if low-carbon substitutes are not readily available in the EU market, the impact on Indian exports may be limited.
5. Lack of Emissions Trading System: India’s lack of an emissions trading system like the EU ETS presents a challenge. Without such a system, it may be difficult for Indian businesses to demonstrate low-carbon production methods, potentially resulting in higher CBAM charges.

Mitigation Strategies:

1. Carbon Pricing Mechanism: India needs to implement a carbon pricing mechanism to incentivize low-carbon production and provide a basis for demonstrating compliance with CBAM regulations.
2. Development of Low-Carbon Technologies: To remain competitive, Indian businesses should invest in and develop low-carbon technologies to reduce the carbon intensity of their products.
3. Export Strategy Review: India should review its export strategy and explore alternative markets where its products can remain competitive despite the impact of CBAM in the EU market.

Business Support:

Indian businesses can seek assistance with various aspects related to international trade and market entry strategies, such as business matchmaking, location analysis, market research, market entry strategy, and supply chain re-engineering in Asia.

Impact of CBAM on manufacturing in India:

1. Increased tax burden: The EU’s Carbon Border Adjustment Mechanism (CBAM) may impose higher taxes on Indian manufacturers exporting products to the EU compared to their EU counterparts. This could reduce the competitiveness of Indian manufacturers and potentially shift demand towards EU-made products.
2. Compliance requirements: Indian companies will need to comply with CBAM regulations, which may require them to provide data on carbon emissions associated with their products. This could create additional administrative burdens and compliance costs for manufacturers.
3. Market disruption: The implementation of CBAM could disrupt the Indian manufacturing industry, as companies may need to reevaluate their export strategies and adapt to changing market dynamics. The shift in demand towards EU-made products may impact the growth and profitability of Indian manufacturers.

Mitigation strategies for Indian companies:

1. Investment in renewable energy: Indian manufacturers can invest in renewable energy sources, such as solar and wind power, to reduce their carbon emissions. This will not only help them comply with CBAM requirements but also make their products more environmentally friendly and competitive in the EU market.
2. Supply chain optimization: Companies can optimize their supply chain processes to reduce the carbon footprint of their products. This includes sourcing materials from sustainable suppliers, implementing energy-efficient manufacturing practices, and promoting recycling and waste reduction.
3. Diversification of export markets: To reduce dependence on the EU market and mitigate the impact of CBAM, Indian companies can explore opportunities in other regions. By diversifying their export markets, they can minimize the potential loss of demand from the EU and maintain a stable customer base.
4. Engaging with policymakers: Indian manufacturers should engage with policymakers, both in India and the EU, to provide inputs on the design and implementation of CBAM. By actively participating in policy discussions, they can influence the development of regulations that are fair and considerate of their specific challenges and capabilities.

Mitigation strategies for the Indian government:

1. Negotiating with the EU: The Indian government can engage in negotiations with the EU to secure exemptions or reduced rates for Indian manufacturers under CBAM. This would help ensure that Indian companies are not disproportionately penalized for their emissions and maintain a level playing field.
2. Development of a domestic carbon pricing mechanism: The government can work on establishing a domestic carbon pricing mechanism, incentivizing companies to reduce their emissions. This would align India’s policies with the EU’s carbon reduction goals and make Indian businesses more competitive globally.
3. Promotion of renewable energy: The Indian government can continue promoting renewable energy sources, providing incentives and support for the adoption of solar, wind, and other clean energy technologies. This would facilitate the transition of Indian manufacturers to cleaner energy sources, reducing their carbon emissions.
4. Investment in carbon capture technology: Exploring and investing in carbon capture and storage (CCS) technology can help Indian manufacturers reduce their carbon emissions. CCS captures CO2 emissions from manufacturing processes and stores them underground, minimizing their impact on the environment.

By implementing these mitigation strategies, both Indian companies and the government can navigate the potential impact of CBAM on the manufacturing industry, reduce carbon emissions, and maintain competitiveness in the global market.

Above Provided contents are Important Events held on 18th and 19th May

Kandela IAS recognizes the value of keeping abreast of current events and offers a diverse range of courses to help you stay informed of the latest developments and trends. Kandela IAS team of experienced faculty members is committed to delivering top-quality education that equips you with the knowledge and skills necessary to succeed in your profession. Our blog post, “Important Events held on 18th and 19th May,” provides you with valuable information about significant happenings worldwide. Moreover, Kandela IAS  provide comprehensive current affairs courses that encompass a broad range of topics, including politics, economics, sports, and entertainment.

So, if you want to achieve your career objectives, enroll in our courses today and take advantage of the learning opportunities we provide. And also Subscribe for our Youtube Channel Kandela IAS For more updates

At Kandela IAS, we understand the importance of staying informed and up-to-date with current events. Whether you are a professional aiming for career growth or an individual seeking personal development, our comprehensive current affairs courses are designed to cater to your needs. We offer a diverse range of topics, including politics, economics, sports, and entertainment, ensuring that you gain a holistic understanding of the world around you.

By enrolling in our courses, you will have access to experienced faculty members who are dedicated to delivering top-quality education. Our faculty brings a wealth of knowledge and expertise, providing you with valuable insights and perspectives on the latest developments and trends. Through engaging lectures, interactive discussions, and practical exercises, we aim to equip you with the knowledge and skills necessary to succeed in your profession.

Our blog post, “Important Events held on 18th and 19th May,” serves as a preview of the kind of valuable information and insights you can expect from our courses. In this blog post, we highlight significant happenings worldwide during those specific dates. By reading this post, you will get a glimpse of the type of content we cover and the depth of analysis we provide.

To stay even more updated with the latest developments, we encourage you to subscribe to the Kandela IAS YouTube channel. Our YouTube channel offers additional resources, including video lectures, expert interviews, and informative discussions on various current affairs topics. By subscribing, you will have access to a wealth of information that complements our courses, enabling you to expand your knowledge base further.

In today’s dynamic world, it is crucial to be well-informed and adaptable. By taking advantage of the learning opportunities provided by Kandela IAS, you can effectively achieve your career objectives. Whether you aspire to excel in the corporate world, government services, or any other profession, our courses will empower you with the necessary knowledge and skills to navigate the complexities of the modern landscape.

Enroll in our courses today and embark on a journey of continuous learning and growth. Stay informed, stay ahead, and unlock your full potential with Kandela IAS.

How to Crack the Civil Services Examination : Master the Syllabus and Exam Pattern

What is Civil Services Examination Conducted By UPSC ?

The Civil Services Examination Conducted By UPSC (Union Public Service Commission) is considered to be one of the most challenging and prestigious examinations in India. It is conducted by the Union Public Service Commission, a constitutional body responsible for recruiting candidates for various government services and posts.

The Union Public Service Commission (UPSC) was established on October 1, 1926, by the Government of India Act, 1935. However, the roots of UPSC can be traced back to the colonial era, where the British Government in India used to conduct civil service examinations to recruit officers for the Indian Civil Service (ICS). After India gained independence, the Constitution of India provided for the establishment of an independent UPSC to conduct examinations for recruitment to various civil services of the Indian Government. Since then, UPSC has been playing a crucial role in recruiting and selecting the best candidates for the country’s civil services.

What is the UPSC Exam Pattern ?

The UPSC examination is held in three stages – Prelims, Main, and Personality Test/Interview. The Preliminary stage is a screening test that consists of two papers – General Studies and CSAT (Civil Services Aptitude Test). The Main stage consists of 9 papers, including Essay, General Studies I, II, III, and IV, and Optional Papers I and II. The Personality Test/Interview is the final stage of the examination.

The UPSC examination is known for its vast syllabus and the high level of competition it entails. It covers various topics such as History, Geography, Polity, Economics, Science and Technology, Environment and Ecology, International Relations, Ethics and Integrity, and Current Affairs. The examination demands a deep understanding of these subjects, as well as excellent analytical, writing, and communication skills.

Stage 1. UPSC Prelims

UPSC Prelims, also known as the Civil Services Preliminary Examination, is the first stage of the UPSC examination. It is conducted to screen candidates for the Main Examination, which is the second stage of the UPSC examination.

The UPSC Prelims comprises two papers, Paper I and Paper II, and both are conducted on the same day.

Paper I tests the candidates’ knowledge on subjects such as history, geography, economics, polity, and current affairs, whereas Paper II tests their comprehension, logical reasoning, and analytical skills.

The UPSC Prelims is a multiple-choice question-based exam, and the candidates who qualify for the Prelims will be eligible to appear for the Main Examination. The UPSC Prelims is a highly competitive exam, and it requires rigorous preparation and dedication to crack.

Table For UPSC Prelims

• The questions in the IAS Exam (Prelims) are of the objective type or (MCQs) Multiple Choice Questions
• There is ‘Negative Marking’ in the UPSC Exam for each incorrect answer but only in the Prelims stage. The negative marking for incorrect answers will be 1/3rd (0.66) of the allotted marks of that question.
• The GS Paper II (CSAT) in UPSC exam is of qualifying nature and candidates should score a minimum of 33% in this paper to qualify to the next stage of the UPSC exam i.e. the Mains.
• Blind candidates are given an extra time of 20 minutes for each paper in the UPSC Exam (Prelims).
• It is mandatory for the candidates to appear in both the papers of civil services prelims exam for the evaluation.
• The marks scored by the candidates in the preliminary examination are not counted for the final score. It is only a screening test where candidates not securing the cut-off marks are eliminated.

Stage 2. UPSC Mains

The UPSC Mains is the second stage of the Civil Services Examination, which is conducted by the Union Public Service Commission (UPSC). The UPSC Mains exam is considered one of the toughest exams in India and consists of nine papers. In this article, we will discuss the exam pattern, syllabus, and preparation tips for the UPSC Mains.

Exam Pattern for UPSC Mains

The UPSC Mains is a written exam that consists of nine papers. The first two papers are language papers, which are qualifying in nature, and candidates need to score a minimum of 25% marks in each paper to qualify for the interview. The other seven papers are counted for ranking purposes.

Syllabus for UPSC Mains

The syllabus for the UPSC Mains exam is vast and covers a wide range of topics. The following is a brief overview of the syllabus for each paper:

Paper-A: Language (Qualifying)
This paper tests the candidate’s proficiency in any one of the languages listed in the Eighth Schedule of the Indian Constitution. The paper tests the candidate’s ability to understand and comprehend the language and write it accurately.

Paper-B: Language (Qualifying)
This paper tests the candidate’s proficiency in English. The paper tests the candidate’s ability to understand and comprehend the language and write it accurately.

Paper-I: Essay
The essay paper requires candidates to write an essay on a given topic. Candidates are expected to write an essay that is clear, concise, and coherent. The essay paper tests the candidate’s ability to express their thoughts in a logical and coherent manner.

Paper-II: General Studies-I
This paper covers a wide range of topics such as Indian Heritage and Culture, History, and Geography of the World and Society. The paper tests the candidate’s understanding of the Indian society, culture, and its impact on the world.

Paper-III: General Studies-II
This paper covers topics such as Governance, Constitution, Polity, Social Justice, and International relations. The paper tests the candidate’s understanding of the Indian Constitution, governance, and the social and political structure of the country.

Paper-IV: General Studies-III
This paper covers topics such as Technology, Economic Development, Biodiversity, Environment, Security, and Disaster Management. The paper tests the candidate’s understanding of the various issues related to economic development, technology, and the environment.

Paper-V: General Studies-IV
This paper covers topics such as Ethics, Integrity, and Aptitude. The paper tests the candidate’s ability to analyze and solve ethical and moral dilemmas, and their aptitude to make decisions in a given situation.

Paper-VI and Paper-VII: Optional Subject Paper-I and II
Candidates are required to choose an optional subject from a list of subjects provided by the UPSC. The optional subjects include Literature, History, Political Science, Sociology, Geography, Anthropology, Psychology, Philosophy, and Law, among others. The paper tests the candidate’s knowledge of the subject they have chosen.

Preparation Tips for UPSC Mains

Preparation for the UPSC Mains exam requires a well-structured and organized approach. Here are some tips that candidates can follow to prepare for the exam:

1. Understand the Exam Pattern and Syllabus: Candidates should thoroughly understand the exam pattern and syllabus to create a study plan that covers all the topics.
2. Time Management: Candidates should manage their time effectively and allocate sufficient time for each paper. Candidates should ensure that they have enough time for revision and practice.
3. Practice Writing: The UPSC Mains is a written exam, and therefore, candidates should practice writing answers to develop their writing skills.
4. Read Newspapers and Magazines: Reading newspapers and magazines can help candidates stay updated on current affairs and developments in different fields.
5. Take Mock Tests: Candidates should take mock tests to get an idea of the exam pattern, time management, and also identify their strengths and weaknesses.
6. Study Material: Candidates should refer to the recommended study material and books. They should also make notes and revise them regularly.
7. Revision: Revision is an essential part of preparation. Candidates should revise their notes regularly to retain the information.

In conclusion, the UPSC Mains exam is a challenging exam that requires dedication, hard work, and perseverance. Candidates should understand the exam pattern and syllabus, manage their time effectively, and practice writing to prepare well for the exam. Regular revision, staying updated on current affairs, and taking mock tests can help candidates improve their performance in the exam.

The UPSC interview, also known as the Personality Test, is the final stage of the UPSC Civil Services Examination. Candidates who have qualified the UPSC Mains exam are eligible to appear for the interview. The interview is conducted by a board of experts who assess the candidate’s personality, mental alertness, social traits, and overall suitability for the civil services.

Stage :3 Interview Process

The UPSC interview is a face-to-face interaction between the candidate and the board of experts. The interview usually lasts for around 30 minutes, and the board asks questions related to the candidate’s education, work experience, hobbies, interests, and current affairs. The interview aims to assess the candidate’s mental and intellectual abilities, as well as their social skills and personality traits.

Preparation Tips

Here are some tips that candidates can follow to prepare for the UPSC interview:

1. Research: Candidates should research and gather information about the current affairs, the civil services, and their own background. They should be well-informed about their education, work experience, hobbies, interests, and achievements.
2. Practice Mock Interviews: Candidates should practice mock interviews with friends, family, or mentors. Mock interviews can help candidates get familiar with the interview process and prepare for the types of questions that may be asked.
3. Work on Communication Skills: Communication skills are essential for the interview. Candidates should work on improving their communication skills, including their language proficiency, tone, and body language.
4. Stay Confident and Positive: Confidence and a positive attitude are essential for the interview. Candidates should stay calm, composed, and confident during the interview.
5. Dress Appropriately: Candidates should dress appropriately for the interview. They should wear formal attire and avoid loud colors, accessories, and perfumes.
6. Be Honest: Candidates should be honest and truthful during the interview. They should not try to exaggerate or misrepresent their achievements or background.

Interview Assessment

The UPSC interview is a crucial stage of the selection process, and the board of experts assesses the candidate’s personality, mental alertness, social traits, and overall suitability for the civil services. The interview carries a weightage of 275 marks out of the total 2025 marks, and the final selection is based on the candidate’s performance in the interview and the UPSC Mains exam.

In conclusion, the UPSC interview is the final stage of the selection process, and candidates should prepare well to improve their chances of selection. Candidates should research, practice mock interviews, work on communication skills, stay confident and positive, and dress appropriately for the interview. The interview assesses the candidate’s personality, mental alertness, social traits, and overall suitability for the civil services, and carries a weightage of 275 marks.

UPSC Career Opportunities

The UPSC examination offers a diverse range of career opportunities in various services and posts, including the Indian Administrative Service (IAS), Indian Police Service (IPS), Indian Foreign Service (IFS), Indian Revenue Service (IRS), and various other Group A and Group B services. The services and posts offered by the UPSC are considered to be prestigious, challenging, and rewarding, providing candidates with opportunities to serve the nation and make a significant impact on society.

Preparation Tips For UPSC

Preparing for the UPSC examination requires dedication, discipline, and hard work. Candidates need to have a thorough understanding of the syllabus, regular practice, and time management skills. They can prepare for the examination through self-study or by joining coaching institutes, depending on their preferences and requirements.

Conclusion

In conclusion, the UPSC examination is a highly competitive and prestigious examination that offers candidates an opportunity to serve the nation in various government services and posts. It demands a deep understanding of various subjects, excellent analytical and communication skills, and dedication and hard work. If you are aspiring to become a civil servant and make a difference in society, the UPSC examination is an excellent opportunity to achieve your goals.

Pro Tip

Looking to crack the UPSC exam? The General Studies Foundation course offered by Kandela IAS Academy is your ultimate guide. This course is designed to provide a strong foundation for candidates appearing for the UPSC exam.

The General Studies Foundation course covers all the essential topics in the UPSC syllabus, including Indian Polity, Economy, Geography, History, Environment, and Current Affairs. Our experienced faculty members provide in-depth knowledge of each topic with the help of interactive lectures, study materials, and practice tests.

Our course is designed to cater to the needs of both beginners and experienced aspirants. We provide personalized attention to every student and offer doubt-clearing sessions to ensure that every student is on the right track.

At Kandela IAS Academy, we strive to provide a holistic approach to UPSC exam preparation. Apart from the General Studies Foundation course, we also offer optional subject courses, essay writing courses, and interview guidance. We also provide mentoring sessions with successful UPSC candidates to help our students gain valuable insights into the exam.

Don’t let the UPSC exam intimidate you. Join our General Studies Foundation course and take the first step towards your dream career in the civil services.

Frequently Asked Questions (FAQs) About UPSC Civil Services Examination (IAS)

And Also Subscribe to Kandela IAS YouTube channel for expert guidance and valuable insights on cracking the UPSC exam.