Daily News Analysis

An Accounting System for Carbon

stylish_lining

An Accounting System for Carbon

 

Climate ‘polycrisis’:

  1. It was a term made popular by Adam Tooze.
  2. It refers to the interconnected and compounding crises related to climate change that are affecting the planet not only in few sectors but across several sectors and domains.
  3. It encompasses all dimensions of impacts of climate change such as physical, social, economic, and political.
  4. The impact of climate change can be witnessed in different sectors such as energy, infrastructure, health, migration and food production.
  5. Therefore, adoption of a holistic approach imbibing diverse perspectives and priorities of different stakeholders and ensuring resilience, equity, and justice becomes important.
  6. Main issue of Climate polycrisis is tweaking one corner of the climate challenge leads to unexpected consequences elsewhere.

Developing a ‘carbon infrastructure’ for accounting carbon:

  1. A ‘carbon infrastructure’ can
    1. creates opportunities for a flourishing future carbon regime
    2. the flows of carbon can be taken into account in the formulation of policy at every level: household, panchayat, district, State and country.
  2. Measurement as the first step
    1. A measurement system has to be put into place which is capable of measuring carbon emissions from individual citizens to the nation as a whole, including all that is in the flow.
    2. Such a measurement system shall help to build an accounting system for balancing our carbon emissions.
  3. National carbon accounting (NCA) system:
    1. Carbon accounting can be used by companies to keep track of the carbon they are producing, removing, storing and offsetting.
    2. Akin to financial balance sheets with their sources and applications, a carbon accounting system can be developed.
    3. Such a system will bring the entire nation, starting from individuals and households, under one carbon accounting framework. 
    4. This can truly internalise carbon reduction goals of the country and the world.
    5. Existing carbon accounting methodologies for tracking carbon balance sheets at the corporate level such as those championed by Karthik Ramanna at Oxford can act as an ideal model.
    6. The system shall mandate businesses and individuals to declare/report their carbon inflows and outflows, making the circulation of carbon visible.
    7. As both an evolutionary and a revolutionary generalisation of these ideas, other goods and services can be ‘financed’ using carbon surpluses, especially if there is convertibility between the carbon accounts and the rupee accounts.
    8. The ability to set targets, make predictions, about future emission reductions and track the progress against the set goals becomes more meaningful.
  4. A national carbon budget:
    1. It can help to re-imagine the entire economy, including new technologies and new forms of collective action.
    2. Along with the goal of increasing economic GDP in money terms, a parallel goal of a reducing carbon GDP can be achieved.

The NCA can help in bringing transparency about the carbon footprint of human activities, create new livelihoods and new forms of organising its economy and society, alignment between development and ecological sustainability, besides helping India to meet its commitment to becoming net zero by 2070. Thus, NCA is a polysolution to a polycrisis.

 

Critical Minerals

India’s first auction of deep-sea blocks for the extraction of critical minerals has been delayed indefinitely after receiving a poor response from bidders. This auction was expected to be a
Share It

President's Rule

The extension of President’s Rule in Manipur has brought to the fore the historical and controversial use of Article 356 of the Indian Constitution, shedding light on how its imposition disr
Share It

Beggars' Homes in India

In M.S. Patter v. State of NCT of Delhi, the Supreme Court (SC) held that state-run beggars’ homes are not merely penal institutions or charitable endeavors but are instead constitutional tr
Share It

Public Distribution System (PDS)

India's Public Distribution System (PDS) has long been a cornerstone of food security, ensuring access to subsidised cereals for millions of people. However, a recent Crisil study using the &l
Share It

Saudi-Pakistan Strategic Mutual Defense Agreement (SMDA)

The recent Saudi-Pakistan Strategic Mutual Defense Agreement (SMDA) represents a major shift in the geopolitical landscape of the Middle East and South Asia, with significant implications for Indi
Share It

Wassenaar Arrangement

The Wassenaar Arrangement is facing significant challenges in adapting its controls to the rapid growth of cloud technology. This issue highlights the need to update its control lists and enforcem
Share It

National Crime Records Bureau (NCRB)

The National Crime Records Bureau (NCRB) report for 2023 highlights a 9.2% increase in crimes against children in India, with 177,335 cases registered in total. This reflects a concerning rise in
Share It

Doctrine of Contributory Negligence

The Andhra Pradesh High Court recently made an important ruling regarding the doctrine of contributory negligence in criminal law. The court clarified that contributory negligence does not apply t
Share It

Perpetual Bonds

The Indian Renewable Energy Development Agency Ltd (IREDA) recently raised ₹453 crore at an interest rate of 7.70% per annum through its second issue of Perpetual Bonds. This move is part of the
Share It

Fake News

The Standing Committee on Communications and Information Technology in India has recently proposed several measures aimed at tackling the pervasive issue of fake news and misinformation, acknowled
Share It

Newsletter Subscription


ACQ IAS
ACQ IAS