{"id":246378,"date":"2023-06-05T20:23:00","date_gmt":"2023-06-05T14:53:00","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=246378"},"modified":"2023-06-05T20:23:00","modified_gmt":"2023-06-05T14:53:00","slug":"the-net-zero-challenge","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/the-net-zero-challenge\/","title":{"rendered":"The net zero challenge"},"content":{"rendered":"\n

Source<\/strong>– The post is based on the article \u201cThe net zero challenge\u201d <\/strong>published in livemintThe Indian Express <\/strong>on 5th June 2023<\/strong>.<\/p>\n

Syllabus: <\/strong>GS3- Environment. GS3-Economy<\/p>\n

News- <\/strong>The RBI has released \u201cCurrency and Finance Report for 2022-23 \u2014 \u201cTowards a greener cleaner India\u201d report.<\/p>\n

What are the findings of the report?<\/strong><\/h2>\n

An annual GDP growth rate of 9.6% <\/strong>would raise net GHG emissions by 10.5 times<\/strong> of levels in 2021-22.<\/p>\n

The nationally determined contribution<\/strong> will set back economic output by as much as 9% by 2049<\/strong>.<\/p>\n

Only a more ambitious action of achieving net zero by 2050 <\/strong>would limit the losses from extreme weather events and decarbonisation to 3% by 2049. <\/strong><\/p>\n

The report talks about the inflationary impact of the status quo<\/strong> against the alternative of achieving net zero by 2050.<\/p>\n

What are the financial risks involved in transition towards net zero?<\/strong><\/h2>\n

The productive life of existing fossil fuel-based assets will be shortened. <\/strong>It will expose the banking sector through loans to these assets. Such risks are more pronounced for public-sector banks.<\/p>\n

However, the financial risks are not just limited to conventional energy, non-conventional energy registered an increase in share of industry bad loans<\/strong>.<\/p>\n

There are risks to assets, <\/strong>and therefore to the banking system, from the growing incidence of extreme weather events.<\/p>\n

What are the policy alternatives mentioned in the report to address these risks?<\/strong><\/h2>\n

The report lays significant emphasis on the role of fiscal policy<\/strong>. It makes a case for fiscal intervention in the form of a carbon tax or an emission trading system<\/strong>.<\/p>\n

It finds that a carbon tax of $25 per tonne and $50 per tonne of Co2<\/strong> under different scenarios can be effective, alongside other policy interventions.<\/p>\n

It mentions the role of shifts in production to less energy intensive sectors<\/strong> like fisheries, textiles, land transport and services. But there is no roadmap for these sectors that have long confronted legacy issues.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source– The post is based on the article \u201cThe net zero challenge\u201d published in livemintThe Indian Express on 5th June 2023. Syllabus: GS3- Environment. GS3-Economy News- The RBI has released \u201cCurrency and Finance Report for 2022-23 \u2014 \u201cTowards a greener cleaner India\u201d report. What are the findings of the report? An annual GDP growth rate… Continue reading The net zero challenge<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,10500,10501],"class_list":["post-246378","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-indian-express","tag-live-mint","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1701695946},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/246378","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=246378"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/246378\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=246378"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=246378"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=246378"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}