The Indian delegation participated in the inaugural Indo-Pacific Economic Framework for Prosperity (IPEF) Clean Economy Investor Forum.

Indo-Pacific Economic Framework for Prosperity (IPEF):

• It is an economic initiative launched by the United States President on May 23, 2022.
• It has 14 members: Australia, Brunei, Fiji, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, United States and Vietnam.
• This framework is intended to advance resilience, sustainability, inclusiveness, economic growth, fairness, and competitiveness for member economies.
• The forum seeks to go beyond traditional free trade agreements and work on the issues of supply chains, clean energy, decarburization, infrastructure and tax and anti-corruption.
• Four pillars of cooperation: Trade, Supply Chain, Clean Economy, and Fair Economy.
• India is not part of the trade pillar.

Clean Economy Investor Forum:

• The IPEF Clean Economy Investor Forum is one of the initiatives under the IPEF.
• It brings together the region''s top investors, philanthropies, financial institutions, innovative companies, startups and entrepreneurs. The forum aims to mobilize investments into sustainable infrastructure, climate technology and renewable energy projects.
• The Department of Commerce is the nodal agency for the IPEF engagements, and the IPEF Clean Economy Investor Forum is managed by Invest India, the country''s national investment promotion agency.

Second Advance Estimates of 2023-24 for Area and Production of Horticultural Crops

• The Department of Agriculture and Farmers Welfare has issued the Second Advance Estimates for horticultural crop production for the fiscal year 2023-24.

Key Highlights:

• Total horticultural production for 2023-24 is estimated at 352.23 million tonnes.
• This represents a decrease of 32.51 lakh tonnes (0.91%) from the previous year 2022-23.
• The categories of crops included in the horticultural sector are Fruits, Honey, Flowers, Plantation Crops, Spices, Aromatics & Medicinal Plants, and Vegetables.

Production Trends for Specific Horticultural Crops:

Increase in production observed in:

• Fruits such as Banana, Lime/Lemon, Mango, Guava, and Grapes.
• Vegetables including Bottlegourd, Bittergourd, Cabbage, Cauliflower, Pumpkin, Tapioca, Carrot, and Tomato.
• Other categories like Honey, Flowers, Plantation Crops, Spices, Aromatics & Medicinal Plants.

Decrease in production noted in:

• Vegetables such as Onion, Potato, Brinjal, and Other Vegetables.

Specific Crop Production Estimates:

• Onion: Projected decrease in production by about 60 lakh tonnes from the previous year’s 302.08 lakh tonnes.
• Potato: Expected reduction in production by about 34 lakh tonnes, mainly due to decreased production in Bihar and West Bengal.
• Tomato: Anticipated increase in production by 3.98% from the previous year’s 204.25 lakh tonnes.

The 2024 Environmental Performance Index (EPI) was released by the Yale Center for Environmental Law & Policy and the Center for International Earth Science Information Network (CIESIN).

Key Highlights On Environmental Performance Index 2024:

• With a commendable score of 51.9 out of 100, Oman now occupies the 50th position globally, significantly improving from its 149th rank in 2022 among 180 countries.
• Increasing Biodiversity sites: The establishment of new natural reserves through Royal decrees has significantly bolstered Oman’s environmental rating, increasing the number of reserves to about 30 and biodiversity-focused sites to over 25.

Environmental Performance Index (EPI):

• The Environmental Performance Index (EPI) is a global ranking system that assesses countries’ environmental health.
• The World Economic Forum introduced the Environment Sustainability Index in 2002, and it is updated every two years.
• Published by: The Yale Center for Environmental Law and Policy, in collaboration with the Columbia University Center for International Earth Science Information Network, prepares the EPI.

Significance of Environmental Performance Index (EPI):

• Identifying Top Performance Drivers: The EPI helps decision-makers identify the factors behind high environmental performance.
• Key Factors for Sustainability: Analysing EPI data shows that financial resources, good governance, human development, and regulatory quality are crucial for enhancing a country’s sustainability.
• Promoting Sustainable Development: By highlighting these connections, the EPI promotes sustainable development for a more secure and equitable environmental future.

Framework:

• The framework organizes 58 indicators into 11 issue categories and three policy objectives, with weights shown at each level as a percentage of the total score.
• New Metrics: The EPI 2024 introduces new metrics in response to emerging goals and recent environmental reports.
• Emissions Assessment: One notable addition is assessing individual countries’ progress in reducing their greenhouse gas (GHG) emissions.
• Increased Emission Reductions: The report reveals that more countries are reducing their emissions than previously thought.
• However, only five nations – Estonia, Finland, Greece, Timor-Leste, and the UK – have reduced their emissions enough to reach net zero or be on track to do so by 2050 if they continue at their current rate.
• Metrics for Habitat Protection: The 2024 EPI has introduced new metrics to measure how well countries protect essential habitats and regulate protected areas. This is in response to the Kunming-Montreal Global Biodiversity Framework’s goal of protecting 30% of land and sea by 2030.
• The report shows that many countries have met conservation goals, but the loss of natural ecosystems remains a major challenge. In 23 countries, over 10% of protected lands are occupied by buildings and agriculture.

India’s Performance:

• Rank of India: The 2024 Environmental Performance Index ranks India 176th out of 180 countries, highlighting serious environmental challenges.
• Despite slight progress in climate change mitigation, India scores poorly in air quality and sanitation.
• India’s overall ranking is grim but fares slightly better in the Climate Change Index, ranking 133rd with 35 points.
• Key issues highlighted for India include poor air quality, with a specific mention of high PM2.5 exposure and significant challenges in managing solid waste and sanitation.
• Despite these challenges, there are positive indicators such as a relatively high rank in the Species Habitat Index.
• However, India ranks fifth in air quality in South Asia with 6.8 points.

Recently, SEBI introduced a framework on “financial disincentives” that targets market infrastructure institutions.

• New Provision: Under this framework, there is a provision for imposing penalties ranging from ₹1 lakh to ₹1 crore for each surveillance lapse during the financial year.
• The new framework will be applicable from July 1.

Market Surveillance:

• Market surveillance involves preventing and investigating abusive, manipulative, or illegal trading practices in securities markets.
• Purpose: It ensures orderly markets by fostering confidence among buyers and sellers in the fairness and accuracy of transactions.
• Significance: Effective market surveillance is crucial for maintaining market order, encouraging investment, and supporting economic growth.
• Providers: Both the private sector and the public sector can perform market surveillance activities.

Market Surveillance by MIIs:

Surveillance by Market Infrastructure Institutions (MIIs) is to continuously monitor the security market. It provides crucial information that aids the regulator in enforcing market rules and regulations.

1. Their responsibilities include:
2. Day-to-day monitoring of market activities.
3. Reporting abnormal or suspicious activities.
4. Surveillance LapseMonitoring the conduct of market intermediaries.
5. Generating and processing alerts.
6. Seeking trading rationale.
7. Carrying out snap analysis

Surveillance lapse:

• A surveillance lapse includes any failure observed in carrying out surveillance activities.
• The activities include inadequate or non-reporting of these activities according to agreed timelines.
• It also includes the partial or delayed execution of any surveillance-related SEBI decision or communication.

Penalty Structure for Surveillance Lapses Under new framework:

First Instance:

• MIIs with annual revenue < ₹300 crore: Penalty of ₹1 lakh.
• MIIs with annual revenue > ₹1,000 crore: Penalty of ₹25 lakh.

Second Instance:

• Penalty ranges from ₹2 lakh to ₹50 lakh, based on the annual revenue.

Third Instance and Beyond:

• Penalty ranges from ₹4 lakh to ₹1 crore, based on the annual revenue.

Impact of Market Surveillance Lapse:

• Trust and Confidence: Lapses in market surveillance of the Securities Market can erode investor trust and confidence in the securities market.
• Manipulative practices: Market surveillance lapses can cause rise in manipulative practices, leaving the market vulnerable.
• Unfair playing: lapses of market surveillance can create an unfair playing field for investors.

Exceptions of new Framework:

• New framework of SEBI is not Applicable When:
• The lapse has a broad market impact.
• The lapse results in significant investor losses.
• The lapse compromises market integrity on a large scale