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- India is nearing the completion of its inaugural Biannual Transparency Report (BTR), marking a significant milestone in its obligations under the 2015 Paris Agreement on climate change.
- About the Biannual Transparency Report (BTR):
- The BTR is a report that countries party to the Paris Agreement submit under the Enhanced Transparency Framework (ETF). It provides detailed information on their progress in fulfilling the various commitments outlined in the Agreement.
- Components of the BTR:
- The report is divided into five distinct chapters, each covering different aspects of the Agreement. Some chapters are mandatory, while others are optional.
- Key sections of the BTR:
- National Greenhouse Gas (GHG) Emissions Inventory: All parties are required to submit this – Mandatory
- Progress in Implementing and Achieving Nationally Determined Contributions (NDCs): All parties must provide this – Mandatory
- Climate Change Impacts and Adaptation: All parties may choose to submit this – Optional
- Support Provided in Financial, Technology Transfer, and Capacity Building: This is mandatory for developed countries.
- Support Needed and Received in Financial, Technology Transfer, and Capacity Building: Optional for developing countries.
- All parties to the Paris Agreement, with the exception of Small Island Developing States (SIDS) and Least Developed Countries (LDCs), are expected to submit their BTR every two years with country-specific data on their climate actions.
- SIDS and LDCs, however, are given flexibility in the submission of BTRs due to their unique circumstances, allowing them to submit reports at their discretion.
- As the core tool for reporting under the Paris Agreement, the BTR plays a crucial role in building mutual trust among nations and enabling all stakeholders—both parties and non-parties—to gauge each country's progress in combating climate change.
- Russia recently announced that oil flows through the Caspian Pipeline Consortium (CPC), a vital route for transporting oil from Kazakhstan to global markets, have dropped by 30-40% following a Ukrainian drone strike on one of its pumping stations.
- About the Caspian Pipeline Consortium (CPC):
- The CPC is a $2.6 billion infrastructure project comprising a 935-mile crude oil pipeline that stretches from the Tengiz oil field in Kazakhstan to the Russian Black Sea port of Novorossiysk.
- Construction of the CPC pipeline began in 1999, and it became operational in 2001. In 2018, a $5.1 billion expansion project was completed.
- Serving as a crucial East-West pipeline, the CPC facilitates the transportation of oil from the Caspian Sea region to global markets.
- The consortium is a joint venture involving the governments of Russia and Kazakhstan, along with major Western energy companies like Chevron, ExxonMobil, and Shell.
- The pipeline is responsible for transporting about two-thirds of Kazakhstan's oil exports.
- The total capacity of the pipeline stands at 1.4 million barrels per day, making up approximately 2.3% of global seaborne oil trade.
- A five-judge Constitution Bench of the Supreme Court recently deliberated on the issue of whether courts can modify an arbitral award under Sections 34 and 37 of the Arbitration Act, 1996.
- About the Arbitration and Conciliation Act:
- The Arbitration and Conciliation Act established a robust framework for alternative dispute resolution (ADR) in India, aimed at modernizing the process of arbitration, mediation, and conciliation. It provides a more efficient, less adversarial, and cost-effective approach to resolving disputes compared to traditional court proceedings. This Act plays a critical role for both businesses and individuals seeking quicker resolutions.
- Features of the Arbitration and Conciliation Act:
- Two-tiered System: The Act offers arbitration and conciliation, presenting different methods for resolving conflicts.
- Flexibility: The parties involved can choose their own procedural rules and arbitrators, providing them flexibility and convenience.
- Confidentiality: The proceedings are confidential, which is particularly important in business disputes involving sensitive information.
- Finality and Enforceability: Arbitral awards are binding and enforceable by courts, ensuring adherence to the decision made.
- Judicial Support and Limited Intervention: Courts may intervene in specific cases, such as appointing arbitrators or enforcing awards.
- Global Applicability: The Act aligns with the United Nations Commission on International Trade Law (UNCITRAL) Model Law, making it compatible with international arbitration practices.
- Key Provisions of the Arbitration and Conciliation Act:
- Arbitration Agreement: A written agreement between parties to settle disputes through arbitration, which triggers the arbitration process.
- Appointment of Arbitrators: While the parties have the freedom to appoint arbitrators, courts can step in if an agreement cannot be reached.
- Interim Measures by Courts: Courts have the authority to issue interim relief before arbitration begins, helping prevent asset loss during the process.
- Arbitral Proceedings: Parties can choose their procedures or adopt institutional rules, promoting autonomy in managing the arbitration process.
- Arbitral Award: The award must be written, signed, and dated by the arbitrators, and become binding unless the parties agree otherwise.
- Setting Aside an Arbitral Award: The court can annul an award on specific grounds, such as a party’s incapacity or invalid agreement.
- Appeals: Appeals are allowed only on limited grounds, ensuring finality and enforceability of arbitration decisions while reducing prolonged litigation.
- Amendments to the Arbitration and Conciliation Act:
- Arbitration and Conciliation (Amendment) Act, 2015: Introduced timelines to ensure arbitration proceedings are completed within 12 months, reduced judicial interference, and enhanced cost regulations to make ADR more affordable.
- Arbitration and Conciliation (Amendment) Act, 2019: Established the Arbitration Council of India (ACI) to regulate standards, required arbitrators to disclose conflicts of interest, and focused on reducing delays by limiting stays on arbitral awards.
Arbitration and Conciliation (Amendment) Act, 2021: Eliminated automatic stays on arbitral awards related to fraud or corruption, and streamlined the process of enforcing awards, promoting a pro-enforcement stance within the Act.