18th april 2025 Current Affairs
National Critical Mineral Mission (NCMM) Syllabus:Budget Driving India’s Strategic Mineral Security & Sustainability Launched in: Union Budget 2024–25 Nodal Ministry: Ministry of Mines, Government of India Objective: To ensure a secure, resilient, and sustainable supply of critical minerals vital for: Clean energy transition Technological innovation Defence and strategic sectors Achieving Net Zero 2070 and Atmanirbhar Bharat goals Key Focus Areas: Exploration and Mining Over 1200 mineral exploration projects Auction of more than 100 mineral blocks for commercial mining Overseas Asset Acquisition Facilitates Indian entities in acquiring mineral assets in countries such as Argentina, Australia, and Chile Recycling and Circular Economy Development of Standard Operating Procedures (SOPs) and incentives for recycling Aims to reduce import dependency and minimize environmental impact Research and Innovation Establishment of Centres of Excellence (CoEs) Promotes advanced research in extraction, beneficiation, and processing technologies Skill Development Introduction of new academic programs, training modules, and scholarships Focus on building a skilled workforce for the critical minerals sector Infrastructure Development Development of mineral processing parks Creation of national stockpiles for strategic storage and distribution With reference to the National Critical Mineral Mission (NCMM), consider the following statements: The Mission mandates that all critical mineral block auctions be restricted to public sector undertakings to ensure strategic resource control. One of the objectives of the Mission is to reduce import dependence through both domestic exploration and incentivized recycling mechanisms. The establishment of Centres of Excellence (CoEs) under the Mission is aimed exclusively at promoting downstream manufacturing of critical mineral-based products. Which of the statements given above is/are correct?A. 2 onlyB. 1 and 3 onlyC. 2 and 3 onlyD. 1, 2 and 3 Answer: A. 2 only Explanation: Statement 1 is incorrect. The NCMM does not mandate that auctions be restricted to public sector undertakings. Instead, it promotes both public and private sector participation in exploration and commercial mining to boost the domestic supply of critical minerals. Statement 2 is correct. A key objective of NCMM is to reduce India’s import dependency. This is to be achieved through extensive mineral exploration and the promotion of recycling via SOPs and incentives—both of which form integral parts of the circular economy strategy. Statement 3 is incorrect. While CoEs are being established under the Mission, their focus is not limited to downstream manufacturing. They are primarily intended to drive advanced research and innovation in extraction, beneficiation, and processing technologies related to critical minerals. Cap-and-Trade India Syllabus:Economy Context: A recent study published in The Quarterly Journal of Economics confirmed that Surat’s Emissions Trading Scheme (ETS), the world’s first market for particulate emissions, successfully reduced pollution by 20–30% and lowered compliance costs by 11%. What is Cap-and-Trade? Cap-and-Trade is a market-driven environmental policy in which the government sets a maximum limit (cap) on total pollution levels emitted by industries. The system works as follows: Pollution Permits: Companies are allocated pollution permits, each allowing them to emit a specific amount of pollutants. If a company emits less than its allotted share, it can sell the unused permits to other firms that are exceeding their limits. Financial Incentive: This system encourages companies to reduce emissions efficiently and invest in cleaner technologies, as reducing emissions can generate profit through the sale of unused permits. How Cap-and-Trade Works: Regulatory Cap Setting: The government sets an emissions ceiling based on environmental goals, such as improving air quality or meeting climate targets. Permit Distribution: Emission permits are distributed through: Free allocation based on historical emissions (grandfathering). Auctioning a portion of permits, allowing the market to determine their price. Trading System Among Firms: Companies that can cut emissions cost-effectively will do so and sell their excess permits. Firms facing high abatement costs can purchase permits to comply instead of investing in costly technology upgrades. Penalties for Non-Compliance: Firms that fail to secure enough permits to match their emissions face financial penalties. This incentivizes compliance, making it cheaper to either reduce pollution or purchase additional permits than to pay fines. Challenges to the Cap-and-Trade Model: Monitoring Gaps: Successful cap-and-trade relies on accurate, real-time emissions data, which requires continuous oversight and maintenance of monitoring systems. For instance, Surat’s success depended on the installation of Continuous Emissions Monitoring Systems (CEMS). High Initial Setup Cost: Implementing systems like CEMS can be expensive, especially for small industries. In Surat, 317 industries had to install CEMS. Market Manipulation Risks: Without stringent regulations, industries could manipulate permit prices by hoarding them. Surat addressed this issue by introducing weekly auctions to prevent hoarding. Sectoral Variations: Pollution abatement costs differ across industries, which may create uneven opportunities for firms to profit from permit trading. Policy Instability: Frequent changes in emission caps or trading rules can discourage long-term investments in clean technologies. Surat adjusted its emission cap from 280 to 170 tonnes/month after reviewing pilot phase data. Way Ahead: Expand ETS to Other Cities: Scaling up ETS to other heavily polluted cities like Delhi and Ahmedabad can maximize the impact and establish a nationwide pollution control framework. Include More Pollutants: The ETS could be extended to cover other pollutants such as sulfur dioxide (SO₂) and nitrogen oxides (NOx) for a more comprehensive approach to industrial pollution. Invest in CEMS Technology: Further investment in tamper-proof and reliable CEMS technology will ensure greater transparency and regulatory efficiency. Set Dynamic Emission Caps: Emission caps should be adjusted to accommodate seasonal pollution variations and industrial production cycles for greater effectiveness. Enhance Stakeholder Engagement: Active collaboration between industries, local bodies, and citizens through awareness campaigns can ensure broader acceptance and success of the system. Conclusion: Surat’s Emissions Trading Scheme showcases how market-based solutions can effectively balance industrial growth with environmental sustainability. Expanding and refining such initiatives across India could be pivotal in achieving national clean air targets while improving industrial efficiency. With reference to the Cap-and-Trade model implemented in Surat’s Emissions Trading Scheme (ETS), consider the following statements: The government’s role in Cap-and-Trade involves setting a maximum pollution limit and ensuring continuous oversight of emissions data through systems like CEMS.