2 July 2025 Current Affairs (With PDF)

Stay updated with 2 July 2025 Current Affairs on this page! We bring you the most relevant and important news updates from around the world and India, specially curated for competitive exams and different entrance exams. Today's Current Affairs cover all significant national and international headlines, legal updates, economic news, and environmental highlights to boost your preparation. With our crisp, to-the-point coverage, you can confidently tackle current affairs questions in your exams. 

India Steps Up Climate Action: Draft GHG Emission Targets Rules under Carbon Credit Trading Scheme

The Ministry of Environment, Forest and Climate Change (MoEFCC) released the Draft Greenhouse Gas Emission Intensity Target Rules, 2025.

These draft rules form a critical part of India’s Carbon Credit Trading Scheme (CCTS) compliance mechanism aimed at reducing industrial emissions.

About Draft GHG Emission Intensity Target Rules

1. Definition

• Greenhouse Gas Emission Intensity (GEI): Tons of CO₂ equivalent emitted per unit of output or product.

2. Applicability

• Draft rules propose legally binding emission reduction targets for more than 400 industrial units, covering: Aluminium, Iron and Steel, Petroleum Refining, Petrochemicals, Textiles

3. Enforcement & Penalties

• Bureau of Energy Efficiency (BEE) will set and monitor the targets.
• Non-compliance will attract financial penalties under the Environment (Protection) Act, 1986.

About Carbon Credit Trading Scheme (CCTS)

1. Objective

• Lower greenhouse gas emissions by integrating carbon pricing, which assigns a cost to each ton of GHG emitted.

2. Legal Framework

• The Energy Conservation Amendment Act (ECA), 2022 authorizes the Central Government (in consultation with BEE) to define and enforce the CCTS.

3. Key Elements of CCTS

a. Compliance Mechanism (Obligated Entities)

• Industries achieving emissions below their targets earn Carbon Credit Certificates.
• Certificates can be traded or banked.

b. Voluntary Offset Mechanism

• Other sectors can register projects that reduce, avoid, or remove GHG emissions.
• Successful projects receive Carbon Credit Certificates for trading.

4. Administrator

• Bureau of Energy Efficiency (BEE) oversees scheme implementation.

India’s Experience with Carbon Markets

1. Regulator of Carbon Trading

• The Central Electricity Regulatory Commission (CERC) regulates carbon credit trading activities.

2. Performance Achieve and Trade (PAT) Scheme

a. Purpose:

• Reduce Specific Energy Consumption (SEC) in energy-intensive industries.

b. How it works:

• Industries earn Energy Savings Certificates (ESCerts) by exceeding efficiency targets.
• Sectors involved: Steel, Cement, Aluminium, Thermal Power.

3. Renewable Energy Certificates (REC)

a. Purpose:

• Facilitate trading of renewable energy to meet Renewable Purchase Obligations (RPO).

b. Key Features:

• Decouples generation of green power from its environmental benefits.
• Allows obligated entities to purchase RECs to comply with RPO mandates.

4. Rate-Based Emissions Trading System (ETS)

Distinctive Features:

• No absolute cap on total emissions (unlike traditional cap-and-trade).
• Assigns performance benchmarks as emission intensity limits to individual units.
• Prioritizes improvements in emission intensity rather than total volume cuts.

Global Perspective: India’s Role in Climate Finance

1. Clean Development Mechanism (CDM)

a. Origin:

• Kyoto Protocol (1997).

b. Function:

• Allows developed countries to invest in emission reduction projects in developing nations.
• Generates Certified Emission Reduction (CER) credits for trading.
• Simultaneously promotes sustainable development and climate mitigation.

2. Recognition of India’s Leadership

• The World Bank’s “State and Trends of Carbon Pricing 2025” report highlighted India’s increasing influence in shaping global carbon markets and climate finance frameworks.

India Proposes Seven-Point Strategy to Boost Private Capital for Sustainable Development

Finance Minister Nirmala Sitharaman unveiled a Seven-Point Strategy to accelerate private investment for sustainable development.

The announcement came during her address at the 4th International Conference on Financing for Development (FFD4) convened by the United Nations in Seville, Spain.

Seven-Point Strategy to Mobilise Private Capital

1. Strengthening Domestic Financial Markets

• Build a robust banking sector and deepen capital markets.
• Aim: Ensure reliable financing avenues for infrastructure and industrial growth.

2. Addressing Perceived Risk via Institutional Reforms

Improve investor confidence by:

• Setting up independent regulators.
• Implementing transparent bidding mechanisms.
• Enhancing the ease of doing business.

3. Creating Scale in Investment Opportunities

• Develop a well-prepared project pipeline that is: De-risked and Investment-ready
• Objective: Attract both domestic and foreign investors.

4. Scaling Up Blended Finance

Combine public funding with concessional finance to reduce private investors’ risk.

Innovative instruments to be leveraged:

• Sovereign green bonds
• Impact investment tools

5. Enabling Role of Multilateral Development Banks and Development Finance Institutions

Strengthen partnerships with MDBs and DFIs to:

• Catalyze large-scale investments
• Offer technical and financial support

6. Evolving International Credit Rating Methodologies

• Advocate for ratings that better reflect: Long-term resilience and fundamentals of Emerging Markets and Developing Economies.

7. Unlocking Capital at the Grassroots

Expand financial access for:

• Micro, Small, and Medium Enterprises (MSMEs)
• Underserved communities at the local level

The Significance of Private Capital in Sustainable Development

• Catalytic Role: Mobilizing private funding drives: Productivity gains, Technological innovation, Stronger domestic demand
• Bridging the Finance Gap: According to UNCTAD, developing nations face an annual investment shortfall of US$2.5 trillion in crucial areas like: Education, Healthcare, Climate action
• Promoting Inclusion: Enhancing financial access can empower: Women-led MSMEs, Rural entrepreneurs, Other marginalized groups

UNCTAD’s “A World of Debt Report 2025” Highlights Soaring Global Debt Crisis

The United Nations Conference on Trade and Development (UNCTAD) has released its flagship report, “A World of Debt 2025,” spotlighting alarming trends in global public debt and their profound impact on developing economies.

Global Public Debt: Key Findings

1. Record-High Debt Levels

• Global Public Debt (GPD) surged to an unprecedented $102 trillion in 2024.
• If current borrowing trends persist, GPD could reach 100% of global GDP by the end of this decade.

2. Unequal Debt Burden on Developing Nations

• Though developing countries collectively hold less than one-third ($31 trillion) of global debt stock, their debt levels have grown twice as fast as those of developed countries since 2010.
• Regional Distribution Among Developing Economies:

- Asia and Oceania: 24% of global public debt
- Latin America & Caribbean: 5%
- Africa: 2%

3. High Borrowing Costs

• Developing nations often pay 2 to 4 times higher interest rates compared to economies like the United States.
• 61 developing countries are now dedicating 10% or more of their government revenues purely to interest payments.

Importance of Public Debt for Development

1. Role in Financing Development

External debt is a critical tool to:

• Complement domestic savings
• Provide essential foreign exchange
• Fund investments in infrastructure, health, and education

2. Stimulating Growth and Stability

Public borrowing helps:

• Manage economic downturns
• Support recovery after shocks
• Boost economic productivity

3. Emerging Challenges

The debt surge is creating:

• Widening financing gaps for development
• Reduction in aid flows
• Cuts to spending in priority sectors like social protection and education

Recommendations for Debt Management and Sustainable Financing

The UN Secretary-General’s Expert Group on Public Debt proposed a multi-pronged approach:

1. Multilateral Reforms

• Standardize Debt Service Pauses during crises to ease liquidity pressures.
• Reform the G20 Common Framework to make debt treatments faster and fairer.
• Re-channel Special Drawing Rights (SDRs) through the IMF’s Resilience and Sustainability Trust to support vulnerable economies.

2. Enhanced International Cooperation

Create a shared information hub to:

• Offer technical assistance
• Disseminate knowledge on innovative financing instruments

National-Level Measures

Strengthen institutional capabilities to:

• Mitigate liquidity risks
• Address currency mismatches
• Improve the quality of investment project pipelines
• Maximize the impact of debt-for-development swaps

RBI Releases Biannual Financial Stability Report: Showcases Indian Economy’s Resilience

Reserve Bank of India (RBI) published its Biannual Financial Stability Report (FSR), assessing the strength of India’s financial system, emerging risks, and regulatory initiatives.

Report reflects deliberations of the Sub-Committee of the Financial Stability and Development Council (FSDC).

About Financial Stability and Development Council

• Established: 2010
• Chairperson: Union Finance Minister
• Members: Heads of RBI, SEBI, IRDAI, PFRDA, and other key regulators
• Mandate:

- Promote financial stability
- Facilitate coordination among financial sector regulators

Key Highlights of Report

1. India as a Global Growth Engine

• Real GDP Growth Projection: 6.5% for 2025–26
• Drivers: Robust domestic demand, insulating India from global shocks

2. Strength of Financial Institutions

a. Scheduled Commercial Banks (SCBs):

• Gross NPA Ratio: Fell to 2.3% (multi-decade low)
• Net NPA Ratio: Reduced to 0.5%
• Capital to Risk Weighted Assets Ratio (CRAR): Rose to a record 17.3%

b. Corporate Sector: GNPA of large borrowers halved from 3.8% (Sept 2023) to 1.9% (March 2025)

3. Inflation Trends

• Domestic Consumer Price Index (CPI): Dropped to a six-year low of 2.8% in May 2025
• Imported Inflation: Global slowdown may ease commodity and oil prices; however, Middle East tensions create uncertainty

4. Global Macrofinancial Risks

• Trade Tensions & Geopolitical Conflicts: Heightened volatility and tighter financial conditions in emerging markets
• Climate Risks: Physical hazards disrupting business operations
• Advanced Economies Spillovers: Policy shifts in the US impacting global capital flows and market sentiment

Key Global Regulatory Initiatives

• Banking Sector: Basel Committee on Banking Supervision: Evaluating Basel III norms’ effectiveness
• Financial Markets: International Organization of Securities Commissions (IOSCO): Enhancing global market regulation frameworks
• Cyber Resilience: Financial Stability Board (FSB): Implementing the FIRE framework to address operational and cyber incidents, including third-party service disruptions

Major Domestic Regulatory Measures

• Promoting the international use of the Indian rupee in cross-border transactions
• Introducing new RBI Digital Lending Guidelines, 2025
• Revising Liquidity Coverage Ratio (LCR) rules to strengthen liquidity buffers

Wilmington Declaration and the QUAD at Sea Ship Observer Mission

The Coast Guards of India, Japan, the United States, and Australia have launched their first-ever “QUAD at Sea Ship Observer Mission” under the Wilmington Declaration framework.

This milestone boosts maritime cooperation and security across the Indo-Pacific, aligning with India’s SAGAR vision (Security and Growth for All in the Region).

Wilmington Declaration (2024): An Overview

1. Origin

• Adopted: 2024
• Venue: Wilmington, United States
• Issued by: Leaders of the QUAD (Quadrilateral Security Dialogue) countries

2. Core Commitments

• Uphold a free, open, inclusive, and resilient Indo-Pacific
• Promote: Rule of law, Democratic values, Respect for sovereignty and territorial integrity

QUAD at Sea Ship Observer Mission

1. Objectives

• Enhance interoperability among the QUAD coast guards
• Strengthen:

- Joint maritime domain awareness
- Search and rescue capabilities
- Response coordination against maritime threats

2. Strategic Significance

• Reinforces India’s SAGAR initiative
• Acts as a deterrent against: Illegal fishing, Piracy, Maritime crime in the Indo-Pacific

Other Major Initiatives under the Wilmington Declaration

1. Quad Cancer Moonshot

• Focus: Tackling cervical cancer through research collaboration, early screening, and affordable treatment

2. MAITRI - Maritime Training Initiative

• Goal: Build capacity and skills for maritime forces across the Indo-Pacific region

3. Ports of the Future Partnership

• Aim: Support development of smart digital infrastructure, including: Modern ports, Undersea cable networks, Secure data exchange systems

WaveX Startup Challenge 2025 Launched to Drive Language Innovation

Ministry of Information & Broadcasting (MoI&B) has unveiled the WaveX Startup Challenge 2025 under its flagship accelerator program WaveX.

Initiative focuses on AI-driven multilingual translation solutions, aiming to boost linguistic inclusion across India.

About WaveX

1. WaveX

• It is a dedicated startup accelerator platform established as part of the MoI&B’s broader WAVES initiative.

2. Purpose:

a. Promote innovation in:

• Media, Entertainment, Language technologies

b. Support startups through:

• Targeted hackathons
• Incubation and mentorship
• Integration with national platforms and services

BhashaSetu - Real-Time Language Tech for Bharat

1. What is BhashaSetu?

• A national hackathon challenge launched under WaveX.
• Objective: Develop an AI-powered multilingual translation tool capable of real-time translation across at least 12 major Indian languages.

2. Key Goals

• Bridge language barriers in: Digital communication, Education, Government services
• Empower citizens in diverse linguistic regions.
• Strengthen India’s capabilities in AI and language technology innovation.

All Set with 2 July Current Affairs? Let’s Quiz!

Ready to put your knowledge to the test? Take our daily quiz now and reinforce what you learned!

2 July 2025 Current Affair Quiz

Why is 2 July 2025 Current Affairs Important for You?

• Essential for Exams: The Current Affairs of 2 July 2025 cover topics that are often asked in competitive exams.
• Boosts Your Knowledge: Helps you stay informed about the latest events and updates.
• Improves Accuracy: Daily practice with Current Affairs of 2 July 2025 improves your speed and accuracy in exams.
• Quick Revision: Acts as a daily revision tool for upcoming exams.
• Saves Time: You don’t need to search multiple sources; everything is here in one place!
• Helps in Interviews: Being updated with Current Affairs of 2 July 2025 gives you confidence for personal interviews and group discussions.

How to Use 2 July 2025 Current Affairs for Exam Preparation? 

• Read Properly: Go through the 2 July 2025 Current Affairs to stay updated.
• Make Notes: Summarize key points and important updates in your own words.
• Link with Syllabus: Identify topics relevant to your exam and connect them with your syllabus.
• Practice Daily Quizzes: Test your knowledge by taking daily quizzes based on 2 July 2025 Current Affairs.
• Revise Often: Review the updates multiple times to boost your recall and confidence.
• Discuss with Peers: Join discussions and share insights to deepen your understanding.

Get Daily Updates and Stay Ahead!

Law Prep Tutorial is committed to giving you the best daily current affairs updates to help you excel in various exams. Our platform is trusted by thousands of toppers for timely, accurate, and concise updates that matter most for your exams. Explore our dedicated sections below: