Recently, State of India’s Environment report 2023 was launched by Centre for Science and Environment (CSE) and DTE (Down to Earth) magazine, covering an extensive gamut of subject assessments, ranging from climate change, agriculture and industry to water, plastics, forests and biodiversity.

The report is the annual publication, focusing on climate change, migration, health and food systems. It also covers biodiversity, forest and wildlife, energy, industry, habitat, pollution, waste, agriculture and rural development.

CSE is a public interest research and advocacy organisation based in New Delhi.

What are the Key Highlights of the Report?

Encroachment:

Over 30,000 water bodies have been encroached on in the country and India is generating 150,000 tonnes of Municipal Solid Waste (MSW) every day — more than half of which is either dumped in landfills or remains unattended.

Air Pollution:

ü  Four years and 11 months is the average duration of life lost to air pollution in India.

ü  Rural India is losing more years due to air pollution-related health issues than the urban belt.

ü  Rural India needs 35 % more community health centers.

Environmental Crimes:

Environmental crimes continue unabated — courts need to decide on 245 cases every day to clear the backlog.

Extreme Weather Events:

Between January and October 2022, India witnessed extreme weather events on 271 days.

These extreme weather events claimed over 2,900 lives.

SDGs:

ü  Over the past five years, India’s overall global rank in meeting the United Nations-mandated Sustainable Development Goals (SDGs) has slipped by nine places — ranking 121 in 2022.

ü  India ranks below four south Asian countries — Bangladesh, Bhutan, Sri Lanka and Nepal.

ü  India is facing challenges in 11 of the 17 SDGs, including SDG 2 (zero hunger), SDG 3 (good health and wellbeing), SDG 5 (gender equality) and SDG 11 (Sustainable cities).

Plastic Waste:

While the magnitude of the problem related to Plastic Waste remains gargantuan, a plethora of policies and urgency are on the right path.

Cities are becoming waste-wise, learning to segregate at source, minimise plastics and reuse reprocess waste into wealth.

Agriculture:

In agriculture, strong evidence is emerging of the efficacy of traditional and regenerative farming methods.

On the issue of forests and biodiversity, losses of forests are a dark truth, but at the same time more and more communities are demanding rights over forests – what is more, these rights are being granted.

What are the Recommendations?

ü  We need to have a common minimum programme that brings all countries together on the only issues that matter for humanity: how to avert the existential crisis we face today and how to build a just and inclusive world order.

ü  In fact, the pandemic treaty is a welcome development in this direction.

The Ministry of Corporate Affairs has proposed several changes to the Insolvency & Bankruptcy Code (IBC), 2016.

What are the Suggested Changes in IBC?

Ø  The Ministry recognizes that some creditors are worried about not receiving a fair share of the money when a company's debts are resolved.

Ø  To address this, it suggests creating a fair system for dividing the money among creditors.

Ø  This would involve using a specific formula to divide the money based on the size of each creditor's claim.

Ø  Any surplus over the liquidation value shall be pro-rated amongst all the creditors in ratio of their unsatisfied claim.

What is Insolvency & Bankruptcy Code, 2016?

Ø  The Government implemented the IBC, 2016 to consolidate all laws related to insolvency and bankruptcy and to tackle Non-Performing Assets (NPA), a problem that has been pulling the Indian economy down for years.

Ø  Insolvency is a situation where individuals or companies are unable to repay their outstanding debt.

Ø  Bankruptcy, on the other hand, is a situation whereby a court of competent jurisdiction has declared a person or other entity insolvent, having passed appropriate orders to resolve it and protect the rights of the creditors. It is a legal declaration of one’s inability to pay off debts.

Ø  The IBC Covers all individuals, companies, Limited Liability Partnerships (LLPs) and partnership firms.

Adjudicating authority:

National Company Law Tribunal (NCLT) for companies and LLPs.

Debt Recovery Tribunal (DRT) for individuals and partnership firms.

How are Proceeds Distributed Among Creditors Under the IBC?

ü  A company has various creditors — public sector banks, private lenders, non-banking financial companies, trade creditors, vendors, workmen, employees, governments, etc.

ü  The Code puts these creditors into different categories based on the nature of debt.

ü  Banks, bond issuers, and lenders are classified as financial creditors. Financial creditors are further categorised as secured and unsecured creditors, based on the security furnished by the borrower company.

ü  Section 53 of the Code prescribes an order of priority in which proceeds will be distributed to the creditors based on the liquidation value.

ü  As per this waterfall mechanism, secured financial creditors rank the highest in the order of priority. They are followed by unsecured financial creditors, government dues and, finally, operational creditors.

ü  Hence, financial creditors like banks have the first claim until exhaustion. Proceeds may be extinguished at the level of financial creditors itself, leaving almost nothing for other creditors in the waterfall mechanism.

What is the Jurisprudence on the Subject of Proceeds Distribution?

Ø  The Supreme Court ruled on a case involving how to pay back creditors in the Essar Steel India Limited case.

Ø  The National Company Law Appellate Tribunal (NCLAT) had said that all creditors should be paid equally, regardless of whether they had security or not.

Ø  However, the Supreme Court disagreed with the NCLAT and said that secured creditors should be paid back first because their security interest needs to be protected.

Ø  Section 30(4) of the Code allows for the Committee of Creditors to consider the value of security interest when approving a resolution plan.

Ø  The United Nations Commission on International Trade Law (UNCITRAL) Legislative Guide on Insolvency Law says that secured creditors can receive payment based on the value of their security, while unsecured and junior creditors may not receive anything.

Recently, Highlighting the need for urgent climate action, the Intergovernmental Panel on Climate Change (IPCC) released its Synthesis Report for the Sixth Assessment Cycle in Interlaken, Switzerland.

Highlights of the Report:

The Synthesis Report of the IPCC’s Sixth Assessment Report is a compilation of the main findings from three Working Groups (WGs):

Ø  Physical Science Basis of Climate Change (WG I)

Ø  Impacts, Adaptation, and Vulnerability (WG II)

Ø  Mitigation (WG III)

The report highlights the following key points:

Ø  Urgent action needed: The report emphasises the need for effective and equitable action to reduce greenhouse gas emissions and adapt to human-caused climate change for a “liveable sustainable future for all.”

Ø  Temperature rise: The report notes that despite warnings in 2018, greenhouse gas emissions have continued to increase, resulting in a global surface temperature rise of 1.1°C over pre-industrial levels. The report highlights the urgency of limiting the temperature rise to 1.5°C from pre-industrial levels set by the Paris Agreement.

Ø  Impact of temperature rise: The report states that the rise in temperature has led to extreme and/or unpredictable weather events, making people more susceptible to food insecurity and water shortages. Vulnerable populations disproportionately face the brunt of climate change.

Ø  Economic loss and damages: The report highlights the economic losses and damages caused by climate change and stresses the need for financial resolution for a more equitable world.

Implications and Recommendations from IPCC’s Sixth Assessment Report Synthesis for India

Climate resilient development: The report suggests that climate resilient development can mitigate the effects of climate change while providing wider benefits such as access to clean energy, improving air quality, increasing employment opportunities, boosting healthcare through technology, and delivering equity. India should focus on development that is both climate resilient and sustainable.

Financial investments: The report emphasises the role of financial investments in achieving climate goals and encourages public funding through central banks, government and financial regulators to reduce emissions, scale up climate resilience, and protect marginalised communities.

Minimise loss and damage: India’s priority should be to minimise loss and damage in terms of lives, livelihood, and biodiversity and accelerate equitable action and adaptation.

Lower per-capita emissions: India can lower its per-capita emissions through energy efficiency policies that are already being implemented in almost every sector.

Decarbonisation of energy sector: India can also decarbonise its energy sector by using cleaner options like solar and renewable energy.

Recently, Highlighting the need for urgent climate action, the Intergovernmental Panel on Climate Change (IPCC) released its Synthesis Report for the Sixth Assessment Cycle in Interlaken, Switzerland.

Highlights of the Report:

The Synthesis Report of the IPCC’s Sixth Assessment Report is a compilation of the main findings from three Working Groups (WGs):

Ø  Physical Science Basis of Climate Change (WG I)

Ø  Impacts, Adaptation, and Vulnerability (WG II)

Ø  Mitigation (WG III)

The report highlights the following key points:

Ø  Urgent action needed: The report emphasises the need for effective and equitable action to reduce greenhouse gas emissions and adapt to human-caused climate change for a “liveable sustainable future for all.”

Ø  Temperature rise: The report notes that despite warnings in 2018, greenhouse gas emissions have continued to increase, resulting in a global surface temperature rise of 1.1°C over pre-industrial levels. The report highlights the urgency of limiting the temperature rise to 1.5°C from pre-industrial levels set by the Paris Agreement.

Ø  Impact of temperature rise: The report states that the rise in temperature has led to extreme and/or unpredictable weather events, making people more susceptible to food insecurity and water shortages. Vulnerable populations disproportionately face the brunt of climate change.

Ø  Economic loss and damages: The report highlights the economic losses and damages caused by climate change and stresses the need for financial resolution for a more equitable world.

Implications and Recommendations from IPCC’s Sixth Assessment Report Synthesis for India

Climate resilient development: The report suggests that climate resilient development can mitigate the effects of climate change while providing wider benefits such as access to clean energy, improving air quality, increasing employment opportunities, boosting healthcare through technology, and delivering equity. India should focus on development that is both climate resilient and sustainable.

Financial investments: The report emphasises the role of financial investments in achieving climate goals and encourages public funding through central banks, government and financial regulators to reduce emissions, scale up climate resilience, and protect marginalised communities.

Minimise loss and damage: India’s priority should be to minimise loss and damage in terms of lives, livelihood, and biodiversity and accelerate equitable action and adaptation.

Lower per-capita emissions: India can lower its per-capita emissions through energy efficiency policies that are already being implemented in almost every sector.

Decarbonisation of energy sector: India can also decarbonise its energy sector by using cleaner options like solar and renewable energy.

Recently, Highlighting the need for urgent climate action, the Intergovernmental Panel on Climate Change (IPCC) released its Synthesis Report for the Sixth Assessment Cycle in Interlaken, Switzerland.

Highlights of the Report:

The Synthesis Report of the IPCC’s Sixth Assessment Report is a compilation of the main findings from three Working Groups (WGs):

Ø  Physical Science Basis of Climate Change (WG I)

Ø  Impacts, Adaptation, and Vulnerability (WG II)

Ø  Mitigation (WG III)

The report highlights the following key points:

Ø  Urgent action needed: The report emphasises the need for effective and equitable action to reduce greenhouse gas emissions and adapt to human-caused climate change for a “liveable sustainable future for all.”

Ø  Temperature rise: The report notes that despite warnings in 2018, greenhouse gas emissions have continued to increase, resulting in a global surface temperature rise of 1.1°C over pre-industrial levels. The report highlights the urgency of limiting the temperature rise to 1.5°C from pre-industrial levels set by the Paris Agreement.

Ø  Impact of temperature rise: The report states that the rise in temperature has led to extreme and/or unpredictable weather events, making people more susceptible to food insecurity and water shortages. Vulnerable populations disproportionately face the brunt of climate change.

Ø  Economic loss and damages: The report highlights the economic losses and damages caused by climate change and stresses the need for financial resolution for a more equitable world.

Implications and Recommendations from IPCC’s Sixth Assessment Report Synthesis for India

Climate resilient development: The report suggests that climate resilient development can mitigate the effects of climate change while providing wider benefits such as access to clean energy, improving air quality, increasing employment opportunities, boosting healthcare through technology, and delivering equity. India should focus on development that is both climate resilient and sustainable.

Financial investments: The report emphasises the role of financial investments in achieving climate goals and encourages public funding through central banks, government and financial regulators to reduce emissions, scale up climate resilience, and protect marginalised communities.

Minimise loss and damage: India’s priority should be to minimise loss and damage in terms of lives, livelihood, and biodiversity and accelerate equitable action and adaptation.

Lower per-capita emissions: India can lower its per-capita emissions through energy efficiency policies that are already being implemented in almost every sector.

Decarbonisation of energy sector: India can also decarbonise its energy sector by using cleaner options like solar and renewable energy.