UN advisory body makes seven recommendations for governing AI

News:

• An AI advisory body at the United Nations released its final report proposing seven recommendations to address AI-related risks and gaps in governance.
• The U.N. last year created a 39-member advisory body to address issues in the international governance of AI.
• The recommendations will be discussed during a U.N. summit held in September.

Introduction:

• Since the release of Microsoft-backed OpenAI’s ChatGPT in 2022, the use of AI has spread rapidly, raising concerns about fueling misinformation, fake news and infringement of copyrighted material.
• Only a handful of countries have created laws to govern the spread of AI tools.
• The European Union has been ahead of the rest by passing a comprehensive AI Act compared with the United States’ approach of voluntary compliance while China has aimed to maintain social stability and state control.
• The United States was among about 60 countries that endorsed a “blueprint for action” to govern responsible use of AI in the military, while China did not support the legally non-binding document.
• With the development of AI in the hands of a few multinational companies, there is a danger that the technology could be imposed on people without them having a say in how it is used, the U.N. said in a statement.

Recommendations:

• The advisory body called for the establishment of a panel to provide impartial and reliable scientific knowledge about AI and address information asymmetries between AI labs and the rest of the world.
• It recommended a new policy dialogue on AI governance, creating an AI standards exchange and a global AI capacity development network to boost governance capacities.
• Among other proposals, the U.N. wants a global AI fund to be established, which would address gaps in capacity and collaboration.
• It advocates the formation of a global AI data framework to ensure transparency and accountability.
• Finally, the U.N. report proposed setting up a small AI office to support and coordinate the implementation of these proposals.

Financial Action Task Force (FATF)    

Context:

• FATF lauds India’s efforts to implement measures to tackle illicit finance including money laundering and terror funding
• Places India in “regular follow-up”  which is the highest rating category by FATF

Introduction:

• In its Mutual Evaluation Report for India ‘Anti-Money laundering and Counter terrorist financing Measures’ FATF emphasizes that India has achieved a high-level of technical compliance across the FATF Recommendations.
• India has taken significant steps to implement measures to tackle illicit finance, the reports mentions.

More on the news:

• A joint FATF-APG-EAG (Asia/Pacific Group on Money Laundering-Eurasian Group) assessment has concluded that India has implemented an anti-money laundering and counter-terrorist financing (AML/CFT) framework that is achieving good results.
• Authorities make good use of financial intelligence and co-operate effectively, both domestically and internationally.
• Following the assessment, India has been placed in “regular follow-up” which is the highest rating category by FATF.
• UK, France and Italy are among the only G-20 countries which have been placed in this category apart from India.
• The report highlights that India has made significant steps in financial inclusion, more than doubling the proportion of the population with bank accounts, encouraging greater reliance on digital payment systems.
• These efforts have supported financial transparency, which in turn contribute to AML/CFT efforts.
• Despite the size and institutional complexity of the Indian system, Indian authorities cooperate and coordinate effectively on matters dealing with illicit financial flows, including the use of financial intelligence.
• India also achieved positive results in international co-operation, asset recovery and implementing targeted financial sanctions for proliferation financing.
• There is a good understanding of risk and application of preventative measures in the financial sector, especially by commercial banks.
• Indian authorities also have a comprehensive understanding of the money laundering, terrorism and proliferation financing risks but need to do more to share insights on these risks across all relevant stakeholders, the report says.

• It also states that India faces serious terrorism and terrorist financing threats, including related to ISIL or Al Qaeda.
• India has demonstrated its ability to conduct complex financial investigations but needs to focus on concluding the prosecutions and convict and appropriately sanction terrorist financiers.
• It further adds that the country needs to ensure that measures aimed at preventing the non-profit sector from being abused for terrorist financing are implemented in line with the risk-based approach, including by conducting outreach to non-profit organisations on their terrorist financing risks.
• Financial Institutions are taking steps to apply enhanced measures to politically exposed persons (PEPs).
• However, India needs to address the issue of lack of coverage of domestic PEPs from a technical compliance perspective and ensure reporting entities fully implement these requirements.
• Implementation of preventative measures by the non-financial sector and virtual asset service providers, and supervision of those sectors, is at an early stage.
• India needs to improve implementation of cash restrictions by dealers in precious metals and stones as a priority given the materiality of the sector.

About FATF:

• The Financial Action Task Force (FATF) is the global money laundering and terrorist financing watchdog.
• It sets international standards that aim to prevent these illegal activities and the harm they cause to society.
• As a policy-making body, the FATF works to generate the necessary political will to bring about national legislative and regulatory reforms in these areas.
• The Financial Action Task Force (FATF) leads global action to tackle money laundering, terrorist and proliferation financing.
• The FATF researches how money is laundered and terrorism is funded, promotes global standards to mitigate the risks, and assesses whether countries are taking effective action.
• The 40-member body sets international standards to ensure national authorities can effectively go after illicit funds linked to drugs trafficking, the illicit arms trade, cyber fraud and other serious crimes.
• In total, more than 200 countries and jurisdictions have committed to implement the FATF’s Standards as part of a co-ordinated global response to preventing organised crime, corruption and terrorism.
• The FATF was established in 1989 and is based in Paris.
• FATF’s mandate recognises the need for FATF to continue to lead decisive, co-ordinated and effective global action to counter the threats of the abuse of the financial system by criminals and terrorists, and strengthens its capacity to respond to these threats that all countries face.
• FATF regularly publishes reports that raise awareness about the latest money laundering, terrorist financing and proliferation financing techniques so that countries and private sector can take the necessary steps to mitigate these risks.
• The FATF President is a senior official appointed by the FATF Plenary from among its members.
• The term of the President begins on 1 July and ends on 30 June two years after assuming office.
• The President convenes and chairs the meetings of the FATF Plenary and the Steering Group.

Transforming Waste into Wealth with Asia’s Largest Bio-CNG Plant

Context:

• Indore’s GOBARdhan Plant Transforms Waste, Cuts Emissions, and Boosts Economy

Introduction:

• In the heart of Indore, a city renowned for its cleanliness, a quiet revolution is brewing.
• The Indore Municipal Corporation (IMC) has achieved something remarkable: a plant that takes the waste produced by thousands of households and transforms it into clean, green energy.
• The GOBARdhan plant is Asia’s largest municipal solid waste-based facility, producing an impressive 17,000 kilograms of Bio-CNG every day.
• The plant is part of a broader mission under the Galvanizing Organic Bio-Agro Resources Dhan (GOBARdhan) initiative to turn waste into wealth.
• Launched in 2018 as a key component of the Swachh Bharat Mission (Grameen), GOBARdhan envisions converting organic waste— animal manure, crop residue, and kitchen scraps—into renewable energy and organic manure.
• This ambitious scheme aligns with Prime Minister Modi’s vision for a circular economy, where every resource is reused, and nothing goes to waste.
• In line with this mission, the Swabhav Swachhata Sanskaar Swachhata (4S) campaign has been launched to celebrate the 10th anniversary of the Swachh Bharat Mission.
• Running from September 17 to October 2, 2024, the campaign is aligned with the annual Swachhata Hi Seva tradition.
• It serves as a precursor to Swachh Bharat Diwas, celebrated on Mahatma Gandhi’s birth anniversary.

About Indore’s GOBARdhan Plant:

• Beyond generating Bio-CNG daily, the plant produces over 100 tonnes of high-quality compost, which is supplied to local farms, creating a closed-loop system that supports sustainable agriculture.
• This not only enhances soil health but also reduces the need for chemical fertilizers, furthering the city’s green agenda.
• What makes this facility even more remarkable is its contribution to reducing carbon dioxide emissions.
• By converting organic waste into energy, the plant prevents an estimated 130,000 tonnes of carbon dioxide from entering the atmosphere each year.
• This diversion of waste from landfills, where it would otherwise decompose and release harmful methane, helps reduce India’s overall greenhouse gas emissions and contributes to the global fight against climate change.

GOBARdhan initiative:

• The GOBARdhan initiative has registered over 1,300 biogas plants nationwide, with 870 already functional.
• Each of these plants not only reduces the burden on landfills but also provides a sustainable source of income for farmers, who can sell their waste for processing or use the bio-slurry as high-quality manure.
• The initiative has also opened doors for rural employment, offering job opportunities in waste management, biogas production, and organic farming.
• The impact of GOBARdhan extends far beyond energy production.
• By reducing greenhouse gas emissions, the initiative contributes to India’s climate goals, including the targets outlined in the Paris Agreement.
• It also supports local economies, offering farmers an additional revenue stream while ensuring environmental sanitation in rural areas.
• The conversion of waste into CBG is vital in India’s broader strategy of reducing reliance on imported natural gas.
• The Union Budget 2023 allocated Rs 10,000 crore for 500 new “Waste to Wealth” plants, a move expected to provide a significant boost to India’s clean energy sector.

Conclusion:

• As India pushes toward a cleaner, more sustainable future, the plant not only showcases the potential of waste-to-energy initiatives but also highlights the broader impact of the GOBARdhan scheme.
• With more plants under development and significant government investment, the future of clean energy in India looks promising, paving the way for a greener, more circular economy that benefits both urban and rural communities alike.

NPS Vatsalya

News:

• Finance Minister Nirmala Sitharaman launched the NPS Vatslya scheme, which will allow parents to save for their children’s future by investing in a pension account.

More on the news:

• Parents can subscribe to NPS Vatsalya online or visiting a bank or post office.
• The minimum contribution to open the Vatsalya account is ₹1,000.
• Subscribers will have to contribute ₹1,000 annually thereafter.

About NPS Vatsalya Scheme:

• NPS Vatsalya is an extension of the already existing National Pension Scheme to children.
• It enables parents to open pension accounts for their minor children.
• The scheme will be run under the Pension Fund Regulatory and Development Authority (PFRDA) and Permanent Retirement Account Number (PRAN) cards will be issued to newly registered minor subscribers.
• Children below 18 can open an NPS Vatsalya account, which will automatically get converted to a regular NPS account on completion of 18 years.
• Pension will come from the account only after they turn 60.
• Eligibility criteria:
• The child must be under 18
• Both the child and the parent/guardian must be Indian citizens

Bio-RIDE Scheme

Context:

• Union Cabinet gives nod to Bio-RIDE scheme to support R&D in biotechnology

News:

• The Union Cabinet approved the Biotechnology Research Innovation and Entrepreneurship Development (Bio-RIDE) scheme to support cutting-edge research and development in biotechnology.

About Bio-RIDE Scheme:

• Bio-RIDE combines two existing schemes, Biotechnology Research and Development (R&D) and Industrial and Entrepreneurship Development (I&ED), with a new component ‘Bio-manufacturing and Bio-foundry’.
• The Bio-RIDE scheme is designed to foster innovation, promote bio-entrepreneurship, and strengthen India’s position as a global leader in bio-manufacturing and biotechnology.
• It aims to accelerate research, enhance product development, and bridge the gap between academic research and industrial applications.
• The scheme is part of the Government’s mission to harness the potential of bio-innovation to tackle national and global challenges such as healthcare, agriculture, environmental sustainability and clean energy.
• The Government said the implementation of the Bio-RIDE scheme will nurture a thriving ecosystem for startups by providing seed funding, incubation support, and mentorship to bio-entrepreneurs.
• The scheme will offer grants and incentives for cutting-edge research and development in areas such as synthetic biology, bio-pharmaceuticals, bio-energy, and bio-plastics.
• A significant focus will be placed on promoting environmentally sustainable practices in bio-manufacturing, aligned with India’s green goals.