With Donald Trump potentially returning to the White House, OPEC+ delegates express concern over higher US oil production.
His administration’s focus on deregulating the energy sector could lead to increased oil output, contributing to a further erosion of OPEC+’s market share.
About ‘Organization of the Petroleum Exporting Countries’ Plus (OPEC+)
What is OPEC+?
Formation and Purpose:
OPEC+ is a coalition of OPEC members and non-OPEC oil-producing nations that work together to manage oil production and stabilize global oil prices.
The alliance was formed in 2016 in response to increasing oil production in the United States, particularly from shale oil, which led to falling oil prices.
OPEC Members:
OPEC was founded in 1960 and includes 12 member countries: Algeria, Angola, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, United Arab Emirates (UAE), Venezuela.
Non-OPEC Members in OPEC+:
OPEC+ includes 10 non-OPEC members: Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, South Sudan, Sudan.
Global Influence:
OPEC+ countries together produce approximately 40% of the world’s crude oil and control about 80% of the world’s proven oil reserves.
Factors are influencing OPEC+’s oil production cuts
Rising US oil production: The shale boom in the US has increased its market share, impacting OPEC+’s influence.
Global price stability: OPEC+ implements production cuts to prevent oil prices from falling too low.
Weak global demand: Extended cuts due to low demand, especially in major economies.
Implications of OPEC+’s policies
Reduced market share: OPEC+’s global oil share dropped from 55% in 2016 to 48% in 2024.
Price volatility: OPEC+’s production cuts aim to stabilize prices, but increasing US production affects this goal.
Economic stability: Production cuts help sustain favorable prices for oil-producing economies.
PYQ:
[2009] Other than Venezuela, which one among the following from South America is a member of OPEC?
By the end of 2023, China emerged as the leading debt collector, holding over 25% of the world’s bilateral external debt.
Two decades ago, Japan, followed by Germany, France, the United States, and the United Kingdom, dominated global lending, with China rarely extending loans.
What is China’s ‘Debt Trap Policy’?
China’s “Debt Trap Policy” (also known as the ‘slicing strategy’) refers to a strategy where it provides excessive loans to developing countries, often for large infrastructure projects, which these nations struggle to repay. This policy is primarily associated with China’s Belt and Road Initiative (BRI).
When countries default on their loans, they may be forced to cede control of critical assets to China, effectively creating a debt-for-equity swap.
Notable examples include Sri Lanka’s Hambantota port, which was leased to China for 99 years after the country failed to meet repayment obligations.
Which countries have been affected by China’s debt trap policy?
Sri Lanka: Struggled with $8 billion in debt, leading to the leasing of the Hambantota port.
Pakistan: Owes approximately $22 billion, close to 60% of its bilateral debt.
Laos: Faces significant economic challenges with $6 billion owed to China, over 75% of its bilateral debt.
Angola: Owes $17 billion, about 58% of its external debt. These countries often find themselves in financial distress due to high interest rates and the burden of debt repayments consuming essential public resources.
How are developing countries managing their debt to China?
Developing countries are employing various strategies to manage their debts to China:
Debt Restructuring: Nations like Zambia are negotiating terms to restructure their debts in light of economic difficulties.
Attracting Investment: Countries are seeking new foreign investments or loans from other nations or institutions to alleviate their financial burdens.
Engaging in Bilateral Talks: Some nations are attempting to engage China in discussions aimed at debt forgiveness or more favourable repayment terms. However, China’s reluctance to forgive debt complicates these negotiations.
What are the implications of this debt burden on regional and global geopolitics?
The implications of China’s debt policies extend beyond economics into geopolitics:
Increased Influence: By becoming the largest creditor, China gains substantial leverage over debtor nations, potentially influencing their foreign policy and strategic decisions. This is particularly evident in South Asia and Africa, where countries may align more closely with Chinese interests due to their indebtedness.
Economic Dependency: Nations heavily reliant on Chinese loans risk becoming economically dependent on China, which can limit their sovereignty and decision-making capabilities. This dependency can also lead to geopolitical tensions with other powers, such as India or the United States.
Potential Instability: The growing debt burden could lead to financial crises in several nations, resulting in political instability. The inability of countries like Sri Lanka and Pakistan to manage their debts raises concerns about broader regional stability and economic health.
What are the challenges to India due to this policy?
Rising Chinese Influence and Strategic Risks: China’s lending practices are expanding its influence in South Asia, particularly in nations like Pakistan, Sri Lanka, and Nepal, undermining India’s role as a regional leader.
This includes control over strategic assets such as Sri Lanka’s Hambantota Port and infrastructure under the China-Pakistan Economic Corridor (CPEC) in the POK region, which poses direct security threats to India.
Geopolitical and Economic Competition: China’s assertiveness in the Indo-Pacific region, coupled with favorable loan terms, challenges India’s investments and diplomatic efforts.
Regional Instability and Spillover Effects: Debt-driven economic instability in countries like Sri Lanka results in political unrest and humanitarian crises, which can spill over into India, necessitating responses to refugee inflows and potential destabilization in the region.
Way forward:
Strengthening Regional Partnerships: India should enhance economic and strategic cooperation with neighbouring countries through competitive financing, capacity-building initiatives, and infrastructure projects under transparent terms to counter China’s influence and foster regional stability.
Promoting Multilateral Solutions: India can collaborate with global institutions like the IMF, World Bank, and Quad partners to offer alternative financial support.
Mains PYQ:
Q The China-Pakistan Economic Corridor (CPEC) is viewed as a cardinal subset of China’s larger ‘One Belt One Road’ initiative. Give a brief description of CPEC and enumerate the reasons why India has distanced itself from the same. (UPSC IAS/2018)
Israel and Lebanon agreed to a ceasefire after 13 months of rising conflict, though it is linked to the UN Resolution 1701, which has not been fully implemented.
AboutUNSC Resolution 1701:
Details
What is it?
Passed on August 11, 2006, following the 34-day war between Israel and Hezbollah.
Aimed to end hostilities, ensure the security of Israel and Lebanon, and establish long-term peace along the Israel-Lebanon border.
Also designed to prevent Hezbollahfrom using southern Lebanon as a base for military operations against Israel.
Key Provisions and Objectives
Cessation of Hostilities: Aimed at halting the conflict between Hezbollah and Israel.
Disarmament of Armed Groups: Called for the disarmament of Hezbollah and all other armed groups in Lebanon, leaving only the Lebanese state with weapons authority.
Israeli Withdrawal: Mandated Israel’s full withdrawal from southern Lebanon, which had been occupied since the 1982 Lebanon War.
Lebanese Forces Deployment: Directed the Lebanese government to deploy its army in southern Lebanon to ensure peace and prevent Hezbollah’s rearmament.
UNIFIL Deployment: Increased deployment of the United Nations Interim Force in Lebanon (UNIFIL) to monitor the border and ensure compliance.
Arms Embargo: Imposed restrictions to prevent the transfer of weapons to Hezbollah.
Implementation of Taif Accords (1989): The resolution emphasizes the full implementation of this accord, which is critical for the disarmament of non-state actors in Lebanon and the consolidation of Lebanese state authority across the country.
Implementation and Violations
Partial Implementation: While Israel withdrew from southern Lebanon, Hezbollah retained its weapons and continued its terror operations.
Lebanese Army Deployment: The Lebanese army was deployed in southern Lebanon but struggled to assert full control, as Hezbollah’s influence remained strong in the region.
UNIFIL’s Role: UNIFIL, while active, faced challenges in fully enforcing the provisions of the resolution due to Hezbollah’s continued presence and the complexities of local politics.
Violations: Despite the resolution’s provisions, violations have included Hezbollah’s stockpiling of weapons and cross-border skirmishes, as well as the failure to fully disarm all armed groups, undermining the resolution’s goals.
Taif Accords Violation: This has hindered the establishment of complete state sovereignty in Lebanon.
PYQ:
[2018] “India’s relations with Israel have, of late, acquired a depth and diversity, which cannot be rolled back.” Discuss.
India is set to host the International Cooperative Alliance (ICA)Global Cooperative Conference in Delhi this month.
It will mark the first time in the 130-year history of ICA that the ICA General Assembly and Global Cooperative Conference are being hosted in India.
About theInternational Cooperative Alliance (ICA):
Details
About
• Established in 1895 to unite, represent, and serve cooperatives globally.
• Represents 315 cooperative federations and organizations from 107 countries.
• Estimated to represent about 1 billion individuals worldwide across various sectors like agriculture, banking, fisheries, health, housing, insurance, and more.
• It has held consultative status with the UN Economic andSocial Council (ECOSOC) since 1946, making it the first NGO to receive this status.
• Custodian of the internationally recognized definition, values, and principles of cooperatives.
Structure of ICA
• Governing Board: A 20-member board responsible for overseeing activities.
• General Assembly: Highest governing authority, with representatives from member organizations, convened at least annually.
• ICA is divided into four regional organizations:
ICA Asia-Pacific (New Delhi, India),
ICA Africa (Nairobi, Kenya),
Cooperatives Europe (Brussels, Belgium), and
ICA Americas (San José, Costa Rica).
• 8 sectoral organizations representing cooperatives in various sectors like agriculture, banking, fisheries, and more.
• 5 thematic committees focused on cooperative development, economic sustainability, social responsibility, and advocacy.
Powers and Functions of ICA
• Represents cooperatives in international forums, particularly within the United Nations and other multilateral organizations.
• Influences international policies related to social and economic development and sustainable cooperative businesses.
• Promote and define cooperative identity globally, ensuring cooperatives adhere to internationally recognized principles.
• Collects and publishes data about the cooperative sector via reports like the World Cooperative Monitor and ICA Global 300 index.
The International Criminal Court (ICC) has issued arrest warrantforIsraeli PM Benjamin Netanyahu accusing them of war crimes and crimes against humanity.
About theInternational Criminal Court (ICC)
Details
What is it?
• First international permanent court to prosecute individuals for serious international crimes.
• Established under the Rome Statute (1998, w.e.f 2002).
• 124 countries are States Parties to the Rome Statute.• Headquarters: The Hague, Netherlands.
Structural Mandate
• Official languages: English, French, Arabic, Chinese, Russian, and Spanish.
• Members: 124 States Parties to the Rome Statute; Palestine (2015) and Malaysia (2019) became the latest members.
• Notable non-members: India, Israel, the US, Russia, Ukraine, and China.
• Funding: By contributions from member states and voluntary contributions.
• Enforcement: Relies on state cooperation for enforcement, as it does not have its own police force.
Composition
• Judges: Consists of 18 judges elected by the Assembly of States Parties for a term of 9 years.
• Prosecutor: Leads the Office of the Prosecutor and investigates crimes.
• Additional Components: Includes the Trust Fund for Victims (2004), Detention Centre, and the Assembly of States Parties.
Jurisdiction
Prosecutes 4 main crimes:
War Crimes: Violations of the laws of war.
Crimes against Humanity: Acts like murder, enslavement, and torture.
Genocide: Intent to destroy a national, ethnical, racial, or religious group.
Crimes of Aggression: Unjustified military action against another state.
• ICC can only prosecute crimes committed after the Rome Statute’sentry into force (July 1, 2002).
PYQ:
[2018] “Rule of Law Index” is released by which of the following?
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)
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.
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’?
It will have access to the latest and most efficient nuclear technologies.
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?
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.
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?
During mid-October, 34 UNIFIL troop-contributing Nations condemned attacks on peacekeepers and urged respect forUNIFIL’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.
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:
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.
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.
AboutMinerals 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?
China, which is the largest producer of these elements, has imposed some restrictions on their export.
Other than China, Australia, Canada and Chile, these elements are not found in any country.
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
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)
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 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 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.
The significant upheaval caused by the increasing interdependence of European and Asian theatres is accompanied by the rise of influential middle powers. India can seize this opportunity to enhance its national power.
Complex and Deepening Interconnections between European and Asian Security:
Asia’s Active Role in European Geopolitics: Unlike the colonial era, Asian states now actively influence the balance of power in Europe. Both Russia and Western Europe are engaging Asia to shape the narrative on the Ukraine war.
Asian Arms Supply to Europe: Asia has emerged as a major supplier of arms in European conflicts, with North Korea supplying ammunition to Russia and South Korean arms flowing to Ukraine.
Asian Agency in Great Power Dynamics: Putin’s visit to North Korea and Vietnam highlights the increased agency of Asian states in leveraging great power rivalries for their own strategic benefits.
Impact on Western Alliances: The increasing agency of Asian countries like North Korea and South Korea affects the dynamics of Western alliances, with the US seeking stronger ties with South Korea and Japan in response to Russia’s actions.
Scope for a Strategic Window:
Increased Asian Maneuverability: Countries like Vietnam are skillfully balancing their relationships with China, the US, and Russia, enhancing their strategic autonomy and influence in the region.
Western Dilemmas: The US is facing challenges in balancing its strategic focus between Europe and Asia, with debates on whether to prioritize the Ukraine conflict or the challenge posed by China.
Europe’s Defence Responsibilities: Both Biden and Trump agree on the need for Europe to take greater responsibility for its own defense, urging Eurasian nations to balance Russia and China.
Opportunities for Middle Powers: Middle powers like India have a unique opportunity to enhance their national power and military capabilities through strategic partnerships with the US and its allies. This includes modernizing India’s defense industrial base and expanding arms production, crucial for achieving strategic autonomy.
Way forward:
Engage with Key Allies: India should Deepen strategic partnerships with the US, Japan, Australia, and South Korea to enhance security cooperation and joint defense initiatives.
These partnerships can provide India with access to advanced military technology and training, as well as opportunities for joint exercises and intelligence sharing.
Leverage International Platforms: India must actively participate in international platforms like the Quad and the Coalition for Disaster Resilient Infrastructure (CDRI) to strengthen India’s role in regional security and disaster resilience efforts.
Mains question for practice:
Q Discuss the complex and deepening interconnections between European and Asian security in the current geopolitical landscape. How can India leverage these dynamics to enhance its national power? 15M
A U.S. lawmaker delegation’s visit to Dharamshala closely followed the passage of the ‘Promoting a Resolution to the Tibet-China Dispute Act’ in Congress, awaiting Biden’s approval.
About the delegation on ‘Promoting a Resolution to the Tibet-China Dispute Act’
Legislative Background: The U.S. Congress passed the ‘Promoting a Resolution to the Tibet-China Dispute Act,’ emphasizing support for Tibetan autonomy and human rights.
The delegation’s visit to Dharamshala, India, followed this legislative action to underscore U.S. commitment to Tibetan freedom.
Delegation Composition and Purpose: The delegation included bipartisan U.S. lawmakers who were co-authors of the Act, invited by the Central Tibetan Administration.
Their visit aimed to advocate for restarting dialogue between the Dalai Lama’s representatives and Beijing, stalled since 2010.
India’s Diplomatic Calculus: Hosting the U.S. delegation amidst ongoing tensions with China signals India’s nuanced diplomacy in managing its relations with both nations.
It reflects India’s stance on Tibet as sensitive, balancing its traditional policy of non-interference with growing international scrutiny.
Geopolitical Implications: The delegation’s visit raises geopolitical questions about India’s sovereignty and diplomatic independence in the face of U.S.-China strategic competition.
It underscores India’s role in regional stability and global human rights discourse, impacting its strategic partnerships and international standing.
Challenges and weaknesses involved
Diplomatic Sensitivities: India faces challenges in balancing its historical support for Tibetan refugees with its current diplomatic relations with China, a crucial economic and strategic partner.
Hosting U.S. lawmakers advocating for Tibetan autonomy could strain India-China relations, given Beijing’s sensitivity to international interference on Tibet-related issues.
Domestic Perception and Political Messaging: Allowing U.S. lawmakers to publicly advocate for Tibetan independence in India could be perceived domestically as compromising India’s stance on sovereignty and non-interference in internal matters.
There is a risk of domestic backlash or political opposition questioning the government’s handling of sensitive foreign policy issues, particularly regarding Tibet and China.
Impact on Bilateral Relations: The visit and the Act may lead to diplomatic friction between India and China, potentially affecting bilateral cooperation in various domains, including trade, defense, and regional stability.
China’s response to perceived foreign interference on Tibet could escalate tensions, impacting broader regional dynamics and India’s strategic autonomy.
Future Scope (Way forward):
International Advocacy and Diplomatic Engagement: The U.S. delegation’s visit and advocacy for the Tibet-China Dispute Act highlight ongoing international interest and support for Tibetan autonomy.
The future scope involves continued diplomatic engagement by global stakeholders to advocate for human rights and autonomy for Tibetans, potentially influencing China’s policies.
India’s Strategic Positioning: India may explore a nuanced approach to balance its historical support for Tibetan refugees with its current diplomatic relations with China.
Future scope includes India asserting its stance on Tibet in international forums while managing bilateral relations with China to avoid escalation and maintain regional stability.
Mains question for practice:
Q The recent visit of a delegation of U.S. lawmakers to Dharamshala, closely following the passage of the ‘Promoting a Resolution to the Tibet-China Dispute Act’ in the U.S. Congress, has brought forth significant diplomatic challenges and implications for India.15M
Mains PYQ:
Q “The USA is facing an existential threat in the form of China, that is much more challenging than the erstwhile Soviet Union.” Explain. (UPSC IAS/2021)
Q How will I2U2 (India, Israel, UAE and USA) grouping transform India’s position in global politics? (UPSC IAS/2022)
Q Indian and USA are two large democracies. Examine the basic tenets on which the two political systems are based.(UPSC IAS/2018)
Mentors’ comment: Over the past eight decades, the relationship between the United States and the Kingdom of Saudi Arabia has seen numerous highs and lows, from the 1973 oil embargo to the 2018 assassination of Jamal Khashoggi. Nonetheless, two iconic moments stand out in this history: the first is the meeting between U.S. President Franklin D. Roosevelt and Saudi King Abdul Aziz Al-Saud on Valentine’s Day 1945 aboard a U.S. cruiser, marking the start of seven decades of a steadfast bilateral relationship, grounded in a crucial “oil-for-security” arrangement. The second is the fist-bump on July 15, 2022, in Riyadh between U.S. President Joe Biden and Saudi Crown Prince Mohammed bin Salman (MbS), symbolizing a more balanced and largely transactional partnership.
Let’s Learn!
Why in the News?
Riyadh and Washington are approaching a new and enhanced phase in their relationship, provisionally named the Strategic Alliance Agreement (SAA).
Strategic Alliance Agreement (SAA): A move towards Reconciliation
Rumoured Agreement: Rumors suggest a new and enhanced U.S.-Saudi relationship is on the horizon, tentatively called the Strategic Alliance Agreement (SAA).
Objectives: This agreement aims to align MBS’s domestic and regional ambitions with the White House’s goal of securing a significant diplomatic achievement for President Biden’s re-election campaign.
Components of the SAA
Bilateral Component: The SAA is expected to formalize the current alliance into a strategic defense pact, similar to the U.S.-Japan treaty, and include advanced military support such as F-35 fighters and nuclear technology for peaceful purposes.
Regional Component: Regionally, Saudi Arabia seeks a ceasefire in Gaza and progress towards a two-state solution to the Israel-Palestine conflict. In return, the U.S. wants Saudi Arabia to recognize Israel and limit its ties with Beijing and Moscow.
Global Component: The global aspect would likely involve cooperation on international security and economic initiatives.
Economic Underpinnings
Economic Significance: While the U.S. is no longer reliant on Saudi oil, the economic aspects of the SAA are expected to be substantial.
Aligning with MBS’s Vision: The agreement would likely ensure significant participation of American companies in Saudi projects under MBS’s Vision 2030.
Strategic Motivations
Countering Chinese Influence: China’s increasing influence in Saudi Arabia, marked by President Xi Jinping’s 2022 visit, has prompted the U.S. to strengthen its ties with Riyadh.
Saudi Arabia’s Importance: Despite the changing dynamics, Saudi Arabia remains crucial due to its religious significance, economic strength, and MBS’s leadership.
Challenges to the SAA
Mistrust and Policy Inconsistencies: A decade of growing mistrust between the U.S. and Saudi Arabia, exacerbated by perceived U.S. inaction and policy inconsistencies, poses a significant challenge.
Gaza Conflict: The ongoing Gaza conflict makes it politically challenging for Saudi Arabia to reconcile with Israel, a key condition for U.S. Senate approval of the SAA.
Regional Dynamics
Recent Events: Recent regional events, including the Hamas attack on Israel and Saudi Arabia’s diplomatic moves, can be viewed through the SAA lens.
Potential Outcomes: The quest for the SAA is a race against time, with potential outcomes ranging from a full agreement reinforcing U.S. influence to a region remaining in turmoil.
India’s Perspective
Significant Stakes: India has significant stakes in the region and needs to monitor the emerging SAA closely.
Enhancing Stability: A successful SAA could enhance regional stability, create economic opportunities, and support India’s strategic interests, including the India-Middle East-Europe Economic Corridor.
Independent Policy: India should continue to pursue its “Act West” policy independently of the developments in the U.S.-Saudi relationship.
Conclusion: The potential Strategic Alliance Agreement (SAA) between the U.S. and Saudi Arabia represents a significant shift in international relations, reflecting evolving geopolitical dynamics and mutual strategic interests. This agreement could solidify a more transactional and pragmatic partnership, balancing regional stability and global security concerns.However, significant challenges remain, including deep-seated mistrust and the complex geopolitical landscape shaped by ongoing conflicts and rivalries.
PM Modi was placed at centre stage for a group photograph at the G-7 Outreach Summit held in Italy.
This marks India’s 11th participation in the G7 Summit and PM Modi’s fifth consecutive attendance.
About G-7 (Group of Seven)
The G7 is an informal bloc of industrialized democracies comprising the United States, Canada, France, Germany, Italy, Japan, and the United Kingdom (UK).
It convenes annually to address global economic governance, international security, and more recently, issues related to artificial intelligence (AI).
Formation and Expansion:
Originally formed as the Group of Six in 1975 by the United States, France, Italy, Japan, the UK, and West Germany, with Canada joining in 1976.
It was formed as a result of the oil crisis to stabilize global economic policies and international relations.
The group’s formation coincided with the challenges of the Cold War era, aiming to address economic concerns such as inflation and recession exacerbated by the OPEC oil embargo.
Key statistics about G7 countries:
Wealth: They control 60% of the global net wealth.
Growth: They drive 46% of the global GDP.
Population: They represent 10% of the world’s population.
Russia’s Joining and Suspension
Russia joined in 1998, transforming it into the G8, aimed at enhancing its international prestige and fostering closer ties with Western nations.
Russia was suspended in 2014 following its annexation of Crimea, leading to ongoing tensions and challenges with both Russia and increasingly, China.
Functioning of the G7
Unlike formal institutions like the United Nations or NATO, the G7 lacks a charter and secretariat.
Its presidency rotates annually (Canada in 2025), responsible for setting the agenda and logistical arrangements for the summit.
Policy initiatives are crafted by ministers and envoys known as Sherpas, who prepare discussions and agreements before the annual gathering.
Non-member countries are occasionally invited to participate in G7 meetings.
Why G7 needs India?
Economic Significance and Democratic Stability: India’s regular participation in G7 meetings highlights its economic importance and stable democratic framework.
Rising Economic Power: With India poised to become the world’s fourth-largest economy, its involvement in global issues is increasingly crucial.
Leadership in the Global South: Modi’s initiatives, such as the Voice of the Global South Summit, have bolstered India’s global standing.
G20 Presidency: India’s recent presidency of the G20 demonstrated its ability to build consensus on contentious global issues.
Neutrality and Strategic Partnerships: India’s neutral stance on Western concerns over China’s actions in the South China Sea and its economic policies enhances its partnership with G7 nations.
Balancing with Russia and the West: As the West confronts Russia over Ukraine, India’s neutral stance positions it as a key ally while maintaining diplomatic balance.
Divergence within G7
Geopolitical Tensions: The G7 nations often face disagreements and tensions over geopolitical matters, such as responses to Russian aggression, conflicts in regions like Ukraine, and strategic alliances with emerging economies.
Economic Policies: Economic policies and trade relations are frequent topics of debate within the G7. Issues include trade tariffs, market regulations, financial stability, and economic cooperation in the face of global economic challenges.
Climate Change: Addressing climate change and achieving environmental sustainability are critical concerns for the G7. Discussions typically focus on climate action commitments, renewable energy investments, and international cooperation on climate policies.
Security and Defense: Security and defence cooperation, including responses to global terrorism, cybersecurity threats, and military alliances, are important agenda items for the G7.
Technology and Innovation: Managing technological advancements, including AI regulation, digital governance, cybersecurity standards, and technological innovation policies, is another area of focus.
Social Issues: Social issues such as gender equality, human rights, immigration policies, and global development aid are also part of the G7 agenda, reflecting broader societal concerns and international commitments.
PYQ:
[2020] In which one of the following groups are all four countries members of G20?
On May 21, 2024, ITLOS issued an advisory opinion for COSIS, clarifying UNCLOS obligations for climate change mitigation and marine pollution control.”
About International Tribunal for the Law of the Sea (ITLOS)
The International Tribunal for the Law of the Sea (ITLOS) is an independent judicial body established by the United Nations Convention on the Law of the Sea (UNCLOS) to adjudicate disputes arising out of the interpretation and application of the Convention.
Commission of Small Island States on Climate Change and International Law (COSIS)
It was established in 2021. COSIS was formed as an association of small island states, which are particularly vulnerable to the impacts of climate change. COSIS aims to address and mitigate the unique challenges that small island states face due to climate change.
It seeks to leverage international law to advocate for stronger climate action and protection measures.
New Elements in the ITLOS Advisory Opinion on Climate Change
Broad Interpretation of Obligations: The ITLOS extended its interpretation of obligations under UNCLOS to include not just parties to the COSIS Agreement but all states, emphasizing that climate change mitigation responsibilities apply universally.
Recognition of GHG Emissions as Marine Pollution: The Tribunal explicitly recognized anthropogenic greenhouse gas emissions, especially carbon dioxide, as a form of marine pollution under Article 194(1) of UNCLOS, necessitating measures to prevent, reduce, and control these emissions.
Adoption of the 1.5°C Temperature Goal: The Opinion aligned necessary climate actions with the more ambitious 1.5°C global temperature goal, reflecting the latest scientific consensus and international climate commitments, thus raising the standard for state obligations under UNCLOS.
Legal Significance
Principle of Prevention and Collective Interest: The Opinion embraces the principle of prevention, typically applied bilaterally, in a collective context for addressing climate change.
Stringent Due Diligence Obligation: The ITLOS describes the obligation to take necessary measures to mitigate climate change as a due diligence obligation. However, the standard of conduct is stringent due to the high risks of serious and irreversible harm to the marine environment from GHG emissions.
General Obligation to Mitigate Climate Change: While the Opinion outlines a general obligation under Article 194(1) of the UNCLOS, it is somewhat general in nature, allowing for measures that gradually reduce GHG emissions over time. This underscores that states do not have unrestricted discretion in their climate actions.
Equity and State Capabilities: The Opinion incorporates the principle of equity, recognizing that the necessary measures for GHG reduction are subject to states’ means and capabilities. This acknowledges differences in states’ capacities to address climate change and ensures that obligations are realistic and fair.
Political Influence Despite Lack of Legal Force: Although the advisory opinion lacks binding legal force, it holds substantial political influence as an authoritative judicial pronouncement. This can guide future legal interpretations and state actions in international climate change law.
Conclusion: ITLOS plays a critical role in the interpretation and application of the law of the sea, providing a judicial forum for resolving maritime disputes and offering authoritative guidance on emerging global issues like climate change. The recent advisory opinion underscores the Tribunal’s capacity to address complex and pressing environmental challenges, contributing to the evolving landscape of international environmental law.
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)
