The Prayas ePathshala

Exams आसान है !

Q1. What do you understand by Water Credits? Also discuss its uses, significance, and associated challenges therein. (250 Words)

Paper & Topic: GS III – Environmental Conservation

Introduction:

What are Water Credits:

The global water management system may be improved through the use of water credits. Its idea was inspired by the 1997 Kyoto Protocol’s system of carbon credits.
Water credits—tradable certifications that show how much water a person or organization has produced or saved.
Within a sub-basin, these credits may be exchanged between organizations that have a water surplus and those that have a water deficit. This is similar to how carbon credits operate, with the distinction that transactions for water credits are restricted to hydrological units like river basins or watersheds.
In that it would allow the holder to release pollutants into the water system up to a predetermined limit, a water credit would operate similarly to a carbon credit. It’s possible to put the unused credits up for sale.
For instance, a community that is attempting to save freshwater may grant water credits to a company in order to reduce the pollution it generates. Additional funds is given to the municipality to aid in its efforts to collect floodwater and clean up wastewater.

It serves what purpose?

A similar idea is used by the UN GEMS/Water Program under the name “Green Water Credits.” This is being used in a number of nations, including China, Kenya, and Morocco.
In order to decrease runoffs, increase groundwater recharge, and avoid sedimentation in reservoirs, this project offers upstream farmers incentives to utilize green water management techniques.
To bridge the financial gap between the farmers’ original investment and the advantages received by the downstream end users, the public and private beneficiaries established an investment fund.
With assistance from the IFAD/International Fund for Agricultural Development and other organizations, the UN plans to extend this concept to further nations.

What advantages exist?

The idea may alter people’s perceptions of the “worth” of water. Giving resources value could motivate users to use them more prudently.
It is acknowledged as a successful strategy for preventing water pollution and promoting the most environmentally friendly use of water.
A similar strategy could make current recycling facilities better. Instead of being dumped into water bodies, the used metals, plastics, phosphates, and other materials would be transported to recycling facilities.

What flaws are there?

Water commercialization is a contentious concept. Pricing in proportion to quality would be a difficulty if water were to become a marketed item.
Richer businesses would merely purchase the water credits and carry on polluting while claiming to care for the environment. The carbon credit system is another example of this penchant for maintaining output rather than working toward sustainability.
Any credit system is susceptible to the threat of oligopoly when there is little room for competition since a few organizations have complete control over the market. If such a situation arises, the wealthy participants may begin to control the market by obtaining credits from economically weaker enterprises.

How do we approach it?

The effectiveness of existing international programs that use this concept must be carefully considered before making any decisions on whether to use the water credit system. Whether Indian regulators can truly enable a free-market system for a crucial resource must be ascertained.
In order to deploy the system, a multi-stakeholder strategy would be necessary.
Policymakers, local, state, and federal governments, sustainability advocacy organizations, and company leaders must all take systemic-level action for it to be implemented. Before such a system is put into place, a consensus is required.
A further crucial stage is the creation of a standardized unit with international acceptance.

Q2. Discuss the concept of Polymer Banknotes. Also, analyse its pros and cons. (250 words)

Paper & Topic: GS III – Indian Economy

Introduction:

Polymer banknotes: What are they?

Banknotes that are made of synthetic polymeric materials or whose molecules are made up of chains of monomers joined together are known as polymer banknotes.
These polymeric banknotes included one that was created from biaxially oriented polypropylene film (BOPP). This plastic material is extruded in molten form, cooled, and then blown into the required shapes.
Holograms and other security measures are integrated into the movie.
The original footage is then supplemented with the remaining elements, such as portraits and designations.

What advantages exist?

Compared to paper-based notes, they are harder to forge.
Paper banknotes are not as strong as polymer banknotes. They are more tearing-resistant and can tolerate repeated folding. Additionally, they are immune to microbial assaults.
These banknotes can be handled more effectively by automated sorting systems and ATMs.
They have a reduced carbon impact than notes made of cotton. Utilizing polymer notes can help reduce the amount of water and chemicals required for cotton growing.
What flaws are there?
They cost twice as much to produce as paper-based notes.
Due to their tendency to be slippery and difficult to fold, these banknotes have drawn criticism for being more problematic to handle.
There’s a potential that the notes’ colors will also vanish. This is what happened when Nigeria’s polymer Naira notes were introduced in 2008.

What functions do these currencies serve in different nations?

In 1988, Australia issued the first polymer banknotes ever. All Australian dollars were printed on polymer notes by 1996.
Approximately 75 nations are now printing polymer banknotes, including Brazil, Canada, Israel, New Zealand, Scotland, Singapore, the United Arab Emirates, and the United Kingdom. More than 20 countries introduced polymer banknotes in part in just 2019 alone.
The central bank of Singapore issues polymer banknotes with cutting-edge security features including the “Complex Clear Window” in denominations of 2, 5, and 10 Singapore dollars. These notes are thought to be better for the environment because they are much longer than paper notes.
The polymer banknotes are available from the Bank of England in four different denominations: £5, £10, £20, and £50. The carbon impact of the £5 note is 16% smaller than that of its paper equivalent, according to the Carbon Trust.