Iran-United States Peace Deal | Joint Crediting Mechanism under Paris Agreement |Bitumen

Iran-United States Peace Deal

International

Context

• According to some recent reports Iran and the United States have reached a preliminary framework for renewed diplomatic engagement after a prolonged period of tensions.

Background

• The pact includes a 14-point Memorandum of Understanding (MoU) between the United States and Iran outlining a roadmap for de-escalation, restoration of commercial navigation through the Strait of Hormuz, and negotiations on sanctions relief etc.
• It also includes an immediate halt to military action, including in Lebanon, and a 60-day negotiation period.

Evolution of Iran–U.S. Nuclear Diplomacy

• The 2015 Nuclear Agreement: The Joint Comprehensive Plan of Action (JCPOA) was signed between Iran and the P5+1 countries.
• Iran agreed to limit uranium enrichment and accept enhanced inspections in exchange for sanctions relief.
• U.S. Withdrawal and Renewed Tensions: The United States withdrew from the JCPOA in 2018 and reimposed sanctions on Iran.
• In response, Iran gradually reduced its compliance with several provisions of the agreement.

Potential Opportunities of Iran–U.S. Agreement

• The reduction in tensions will lower the risk of military confrontation and proxy conflicts across the region.
• Also the stable conditions will ensure smoother energy flows and reduce volatility in global oil markets.
• Improved security conditions will encourage trade, investment, and reconstruction efforts in conflict affected areas.
• For India, improved regional conditions are necessary to boost the development of Chabahar Port and the International North-South Transport Corridor (INSTC).

Joint Crediting Mechanism under Paris Agreement

Environment

Context

• India and Japan have adopted the Rules of Implementation for the Joint Crediting Mechanism (JCM) under Article 6.2 of the Paris Agreement.

Joint Crediting Mechanism (JCM) 

• It is a bilateral carbon market system proposed by Japan to help nations reduce greenhouse gas emissions through advanced low-carbon technologies. 
• It operates under Article 6.2 of the Paris Agreement, which allows nations to trade carbon credits to meet their climate goals

Article 6.2 of the Paris Agreement 

• It allows countries to work together to hit their climate goals by trading carbon credits. 
• Under this rule, a country that cuts more greenhouse gases than planned can sell those extra savings to another country

Additional Information- Paris Agreement on Climate Change, 2015 (COP 21)

• It was adopted at the United framework convention on climate change(COP21) in Paris in 2015.
• Objective – To strengthen the global response to the threat of climate change and specify long-term goals regarding global average temperatures, adaptation to climate change, and finance flows.

Paris agreement Goals

• Temperature – To hold global warming below 2 degrees Celsius above pre-industrial levels and to put efforts to still limit the temperature increase even further to 1.5 degrees Celsius.
• Reduce emissions – To foster climate resilience and development through lower greenhouse gas emissions by 2030

Intended Nationally Determined Targets(INDCs)  

• An Intended Nationally Determined Contribution is a public pledge from a country on collective action on climate change. These contributions are to be achieved before 2030

India’s Climate Action Targets at a Glance

Bitumen

Economy

Context

• The recent conflict in West Asia has hit India’s push to expand road infrastructure as India imports 30-40% of Bitumen. 
• Over 99% of India’s bitumen imports come from Iraq, UAE, Iran, Oman and Bahrain.

Bitumen

• Bitumen is a byproduct of crude oil.
• It is known for its waterproofing and adhesive properties.
• It is predominantly used in road construction and roofing.
• Canada has one of the largest natural deposits of bitumen in its oil sands, contributing significantly to global supply.
• It is produced in refineries to ensure purity, maintain consistent quality, and meet massive global construction demands at a lower cost.