9 PM Daily Current Affairs Brief – July 2nd, 2022

Current Affairs Compilations for UPSC IAS Prelims 2022

Mains Oriented Articles

GS Paper 3

• The rupee’s ‘new lows’: Why it’s not necessarily a cause for concern
• India’s ban on select single-use plastic items: A start but still a long way from blanket ban
• How the RBI unconventionally innovated policy to fight the pandemic
• The need of the hour: A Renewables revolution
• Clear signals the ‘fringe’ ought to read
• Reset mode – on GST Council Meet

Prelims Oriented Articles (Factly)

• Union Health Minister chairs Indian Pharmacopoeia Commission conference 2022 and releases 9th edition of Indian Pharmacopoeia
• First copy of Tamil Bible stolen from Saraswathi Mahal Library traced to London
• Delhi HC recently struck down powers of Banks Board Bureau; new body to select chiefs of PSU banks, insurance firms
• ‘Polar bears face climate change — they have less food as Arctic sea ice declines’
• DRDO carries out test flight of autonomous UAV
• NITI Aayog and World Food Program Releases Report – Take Home Ration: Good Practices across the State/Union Territories
• India home to largest number of opiate users: UN report on drugs
• MoEF proposes amendments in Environment Protection Act, to decriminalize provision

Mains Oriented Articles

GS Paper 3

The rupee’s ‘new lows’: Why it’s not necessarily a cause for concern

News: The currency’s fall gets more attention than its rise. At present, the Indian rupee is falling against the US dollar.

What is the status of the Rupee fall vis a vis other currencies?

The Finance Minister has recently pointed out that almost all currencies are falling against the dollar, and the rupee has fallen less than most. For instance, Rupee fell 6% in the first half of 2022. Compared to that, the euro has fallen by 11.6%, the yen by 19.2%, and the pound by 13.2%.

China’s yuan has fallen less (3.6%), but the currencies of Australia, South Korea, and of course Pakistan have fallen more.

Actually, the rupee has moved up against almost all currencies.

What is the long-term cause-and-effect relationship between country and currency?

Many people tend to get wrong about the long-term cause-and-effect relationship between country and currency. The present government came into office in favour of a “strong currency” policy.

However, such policy ignores that almost every country with a successful long-term record of development (Japan and China being among the best examples) has pursued a “weak currency” policy in order to win export markets. In reality, A strengthening economy gets a strengthening currency, helped along by capital flows.

A weak economy, or one with high inflation, does not become strong if the country artificially boost its currency, or keeps it pegged too high. Such a policy would not be sustainable and would risk capital flowing out.

For example, At the stage of development, if a country can’t compete on technology or product quality then the country can compete primarily on price. In such situations, a weak currency helps. Over time, as exports gain momentum and the economy achieves external viability, the currency reverses its decline.

How does India maintain its long-term cause-and-effect relationship between country and currency?

As for trade, over more than four decades (including the years of Nehru’s atmanirbharta), India kept the rupee over-valued. So, while countries in East Asia boosted their trade, India’s share of the global trade total collapsed by 80%– from about 2.5% in 1947 to about 0.5%.

India’s trade and inflation record improved after its currency and other policies became more market-oriented in and after 1991. However, India yet has run a trade deficit in most years despite the rupee’s continuous fall. This shows the reform done so far is not enough.

What should be done?

Reserve Bank to spend billions of dollars to boost the rupee is the wrong way. If India wants a stronger rupee, then India needs to do a better job of managing the economy such as Inflation control, productivity improvement, etc.

Recently, inflation rates are rising. It is natural that this loss in the rupee’s domestic purchasing power should get reflected in a lower exchange rate. Change the performance metrics and the rupee will hold its own without the Reserve Bank having to intervene.

India’s ban on select single-use plastic items: A start but still a long way from blanket ban

News: India’s ban on select single-use plastic(SUPs) items comes into effect from July 1, 2022.

Does India impose a blanket ban on all single-use plastic items?

No, the Indian market will continue to sell a gamut of single-use plastic items like soft drinks and mineral water bottles, all products sold in multi-layered packaging, among others.

The Indian government has tried to identify a handful of problematic plastics, which are low-utility and have high littering potential, from the bucket of single-use plastic commodity list and give the industry a reasonable time to phase them out.

What are the challenges associated with the present ban?

Issue of providing alternative opportunities: Millions of workers are involved in producing SUPs in thousands of factories. In the past, no attempts were made to rehabilitate them. Similarly, no plan has been put in place to support the industry, especially the MSME sector.

Unprepared for the ban: Consumers are not ready to sacrifice convenience. Most market surveys show that SUPs are widely sold, and alternatives are expensive or unavailable.

Seeking extension: All India Plastic Manufacturers Association (AIPMA) is seeking an extension of 6-12 months on the ban, citing issues like unavailability of alternatives, economic infeasibility and demand-supply gap, which will increase the cost of their product packaging.

Note: An extension of six months was already granted to the industry, to transition away from single-use plastic items listed for phase-out.

What is the status of the plastic alternatives market in India?

The alternatives market in India is at a nascent stage, which forces companies to import and thus, increases costs. This is primarily due to the scale at which the alternative market currently operates.

The shift is not easy. Currently, SUPs account for about one-third of the plastic consumed in the country. In other words, 6-7 million tonnes of SUPs are consumed annually, placing it among the top industrial materials consumed in terms of volume.

The market, therefore, requires alternatives to replace 6-7 million tonnes of materials. Unfortunately, SUP substitutes in such volumes are unavailable, mainly because the government has failed to promote the alternative industry.

Do alternatives to plastics viable?

Most life cycle analysis (LCA) of SUPs and their substitutes shows that the most significant environmental problems are due to the single-use nature of the products, not the material.

For example, LCA shows that a paper shopping bag must be used four to eight times to have a lower environmental impact than one single-use plastic bag.

What should be done?

The alternative market needs to be offered support through government initiatives to make its reach wider. However, it should be done with caution, so as not to create a fresh set of problems while fighting plastic pollution.

The plastic industry, manufacturers and FMCG companies should consider coming up with design changes in their product packaging to eliminate the necessity of ancillary plastics like straws.

The national and state governments have to ensure proper enforcement of the notified ban.

Overall, replacing SUPs with biodegradable SUPs will not eliminate the problem of microplastics that are now poisoning our food chain and are even being found in the human bloodstream. Therefore, the solution to SUPs is to create an industry that turns ‘single-use’ products into ‘multi-use’ and creates a circular economy.

How the RBI unconventionally innovated policy to fight the pandemic

News: The RBI has been missing the inflation target since 2019 by not raising rates. This raised some debates about RBI’s inflation management.

What is the reason for rising inflation in India?

There are two reasons that inflation is on the rise. These are,

a) Inflation has been largely the result of supply-side shocks from vegetable prices, caused by crop damages due to unseasonal rains in late 2019, b) Widespread supply-side disruptions after the outbreak of the pandemic.

How does the RBI tackle inflation while ensuring growth?

The amended mandate of the RBI under the flexible targeting (FIT) framework reads as “price stability, taking into account the objective of growth”. Accordingly, the Monetary Policy Committee (MPC) was looking through higher inflation print during the pandemic while trying to resurrect growth. This is done through,

First, the MPC highlighted inflation concerns and voted to raise the policy repo rate. But, the RBI governor has ensured an orderly completion of the government’s borrowing programme.  This implies that lowering inflation and lowering government bond yields are contradictory objectives.

But, this basically ensures that the borrowing programme is completed seamlessly at low costs.

Second, MPC kept repo rates unchanged while the RBI changed the reverse repo rate during the pandemic. This means that the MPC lost its role in setting interest rates and so, its credibility.

Third, The RBI activated other segments of financial markets to keep the lifeblood of finance flowing as reduced demand and heightened risk aversion broke down the traditional credit channel of policy transmission.

Financial conditions were eased substantially by reducing the reverse repo rate, which lowered the floor rate of interest in the economy.

The mandate of the MPC is to control inflation for which the policy instrument is the repo rate, the RBI had used the LAF through changes in the reverse repo rate to alter liquidity conditions. The intent was to reactivate the credit channel by encouraging banks to explore opportunities for extending credit.

How RBI’s approach is different from the rest of the world?

Inflation-targeting countries, because of their sole focus on inflation, experience lower inflation volatility but higher output volatility. Higher output volatility entails a higher sacrifice ratio — the proportion of output foregone for lowering inflation.

For an emerging economy, the costs of higher output foregone against the benefits of lower inflation must always be balanced. This is because the potential output keeps on changing given the shift of the production function.

Developed countries, on the other hand, operate near full employment — therefore, sacrifice ratios are lower. As a result, smoothening inflation volatility is relatively costless for them.

Despite the existing targeting framework, the RBI did not get fixated on a one-point agenda, daring to look beyond the inflation print. If the RBI followed the advice of its critics by sticking to textbooks, then the Indian economy would have been in an entrapment today. Hence, it was necessary to provide a lifeline to the economy at that juncture by focusing on the recovery.

The need of the hour: A Renewables revolution

Context: Renewable energy can limit climate disruption and boost energy security. Thus, their use must be incentivised and supported.

Fossil fuels are the major cause of the climate crisis. All climate indicators are breaking records. It is a strong indication towards ferocious storms, floods, droughts, wildfires and unliveable temperatures in vast swathes of the planet.

We are close to breach the 1.5°C limit that is maximum level of warming to avoid the worst climate impact as per the scientists. The emission must be reduced by 45 per cent by 2030 and reach net-zero emissions by mid-century.

Moreover, oil and gas prices have reached record price levels and renewables are getting cheaper.

Renewable energy can limit climate disruption and boost energy security. However, investors are still investing in fossil fuels and governments are spending billions of dollars in the form of subsidies for coal, oil and gas.

However, for the health of our societies and planet, polluting fossil fuels should be abandoned and the renewables-based energy transition should be accelerated.

How the renewable energy can be boosted around the world?

First, Renewable energy technology should be made a global public good. By that intellectual property barriers to technology transfer would be removed.

Second, improving global access to supply chains for renewable energy technologies, components and raw material. For example, higher costs for lithium and other battery metals are hurdle in deployment of such technologies. Thus, a global coalition is required to solve such problems.

Third, fast track solar and wind projects, by removal of red tap in approval procedures.

Fourth, energy subsidies from the fossil fuels must be diverted to renewable energy.

Fifth, triple the investments in renewables.

Besides renewable energy, there are other methods to control climate change. These are Nature-based solutions, such as reversing deforestation and land degradation, are essential. Thus, all these methods must be used together to control the Impacts of Climate Change.

Clear signals the ‘fringe’ ought to read

Context: Recently, after the controversy over controversial remarks on the Prophet, India’s top political and bureaucratic functionaries emphasised India’s stronger credentials as a secular democratic polity.

Recently, External Affairs Minister, S. Jaishankar, National Security Adviser (NSA), Ajit Doval and Prime Minister made statements that emphasised India’s stronger credentials as a secular democratic polity. All these remarks acknowledge that more damage should not be done to India’s image as a country that celebrates its diversity and plurality.

Lastly, in its statement, Supreme Court also held the former spokesperson “single-handedly responsible” for igniting emotions while asking her to “apologise to the country”.

Why the incidents like these should be avoided?

First, Government has been making efforts to improve ties with many West Asian/Gulf countries, in part to ensure energy security and to attract investment from there in the infrastructure sector.

Second, as acknowledged by Mr. Jaishankar there are elements desperate to “fish in troubled waters”. For Example, immediately after the controversy , the Al-Qaeda in Indian Subcontinent (AQIS) issued warning of suicide bombings in many Indian cities to protect the honour of the Prophet. The threat was aimed at a transnationalisation of local political tensions and conflicts. Thus, such issues have a ‘transnational’ mobilising potential.

Third, Muslims are closely integrated in Indian society, and have never empathised with jihadist organisations and their transnational aims. For example, foreign fighters from India are disproportionately outnumbered by their American, French or British counterparts. However, the issues like these will make Indian Muslims extremely vulnerable to the political use of Islam, known as Islamism. Islamism thrives on a transnationalisation of issues pertaining to the Islamic faith and practices. It led to the creation of Pakistan. Sharia-based Islamic state is a desired political order as per Islamism.

Fourth, after takeover of Afghanistan by Taliban, AQIS would like to capitalise on the ideological vacuum in the regional jihadist landscape. Taliban has no incentive to drive out AQIS, as it can be an important ally to combat their common foe, ISIS or the IS-K. Thus, Al Qaeda’s ability to navigate Afghanistan’s jihadist landscape will be a concern for India as it can be an indirect target of the former. This also explains India’s recent diplomatic efforts to engage the Afghan Taliban and maintain its presence in Afghanistan.

Reset mode – on GST Council Meet

News: GST Council meeting was held recently. There are many takeaways from this meeting.

GST Council meet, held recently, was its first ‘regular’ meeting after a nine-month break. It discussed recommendations of four ministerial groups’ to fix various aspects of the indirect tax regime. The council ratified 3 out of 4 reports by the groups.

What were the key takeaways from the meeting?

First, a ministerial panel has been tasked with resolving the long-pending issue of constitution of an appellate tribunal for GST disputes.

Second, based on the recommendations by the panel, to rationalise tax rates, exemptions have been scrapped on several items. It may result in increase in the price pf many goods and services.

Third, the rules for registering new firms have been tightened to close tax evasion loopholes.

Fourth, no council member brought up the issue of imposition of decisions by the center, even after the Supreme Court’s recent judgment.

Fifth, various state government asked for the continuance of GST Compensation. It was a positive development, as governments of the ruling party also raised this demand, and center kept the issue open for further discussions. It proves the effectiveness of GST Council as a platform for critical deliberations and discussions.

Prelims Oriented Articles (Factly)

Union Health Minister chairs Indian Pharmacopoeia Commission conference 2022 and releases 9th edition of Indian Pharmacopoeia

Source: The post is based on the article “Union Health Minister chairs Indian Pharmacopoeia Commission conference 2022 and releases 9th edition of Indian Pharmacopoeia” published in PIB on 1st July 2022.

What is the News?

Union Minister for Health and Family Welfare has chaired the Indian Pharmacopoeia Commission(IPC) Conference 2022 and released the 9th edition of Indian Pharmacopoeia.

What is Indian Pharmacopoeia Commission(IPC) Conference 2022?

Organized by: Indian Pharmacopoeia Commission(IPC).

Theme: Addressing Medicine Quality for Future.

What is the Indian Pharmacopoeia Commission(IPC)?

Click Here to read about it

What is Indian Pharmacopoeia?

Indian Pharmacopoeia(IP) is published by the Indian Pharmacopoeia Commission(IPC) on behalf of the Ministry of Health & Family Welfare to fulfill the requirements of the Drugs and Cosmetics Act 1940. 

Purpose: IP prescribes the official standards for drugs produced and/or marketed in India and thus contributes to the control and assurance of the quality of the medicines. 

The standards of the IP are authoritative and legally enforceable. It intends to help in the licensing of manufacturing, inspection and distribution of medicines in our country.

Significance: Currently, four countries – Afghanistan, Ghana, Nepal and Mauritius-have accepted IP as a book of standards.

Note: India is the world’s largest supplier of generic medication and accounts for 20% of the worldwide supply of generics by volume.

First copy of Tamil Bible stolen from Saraswathi Mahal Library traced to London

Source: The post is based on the article “First copy of Tamil Bible stolen from Saraswathi Mahal Library traced to London” published in The Hindu on 2nd July 2022.

What is the News?

The first Tamil translation of the Bible which was reportedly stolen from Saraswathi Mahal Library, Thanjavur, has been traced by Idol Wing CID Police to London.

First Tamil Translation of Bible

The first Tamil translation of the Bible was printed in 1715 by Bartholomaeus Ziegenbalg, a missionary. 

It was presented to Tulaji Rajah Serfoji by Schwartz, another missionary and a close friend of the King. 

After the takeover by the Tamil Nadu government, the antiquarian book became an exhibit in the Saraswati Mahal Museum for public viewing. 

Who was Bartholomaeus Ziegenbalg?

Bartholomaeus Ziegenbalg was born in Saxony in 1682. He was a Danish missionary. 

In 1706, he arrived in Tranquebar (Tharangambadi), a tiny Danish colony on the east coast, close to Nagapattinam in Tamil Nadu, on the southeast coast of India, as the first Protestant missionaries in that country.

He soon set up a printing press and published studies of the Tamil language and Indian religion and culture. He died in 1719, at age 37. 

He left behind a Tamil translation of the Bible, many brief writings in Tamil, two church buildings, the seminary and baptized Christians.

Delhi HC recently struck down powers of Banks Board Bureau; new body to select chiefs of PSU banks, insurance firms

Source: The post is based on the article “Delhi HC recently struck down powers of Banks Board Bureau; new body to select chiefs of PSU banks, insurance firms” published in Indian Express on 2nd July 2022.

What is the News?

The Government of India has approved a government resolution for establishing the Financial Services Institutions Bureau(FSIB) in place of the Banks Board Bureau(BBB).

When was the Bank Board Bureau set up?

The Bank Boards Bureau was set up in 2016 as a body of eminent professionals and officials to make recommendations for the appointment of whole-time directors as well as non-executive chairpersons of public sector banks(PSBs) and state-owned financial institutions.

Why is BBB being replaced by the Financial Services Institutions Bureau(FSIB)?

The government was forced to replace the BBB with FSIB after the Delhi High Court in 2021 had ruled that the BBB couldn’t select the general managers and directors of state-run general insurers as it was not a competent body. 

Subsequently, at least half-a-dozen newly-appointed directors of non-life insurers had to vacate their positions. 

How will FSIB be different from BBB?

FSIB will do the same job but with a much larger, legally tenable mandate.

It will be a single entity for making recommendations for the appointments of whole-time directors, non-executive chairman in Public Sector Banks(PSBs), state-run non-life insurance companies and other financial institutions.

‘Polar bears face climate change — they have less food as Arctic sea ice declines’

Source: The post is based on the article “Polar bears face climate change — they have less food as Arctic sea ice declines” published in TOI on 2nd July 2022.

What is the News?

This article talks about the impact of the loss of sea ice on the Arctic ecosystem.

What is the impact of sea ice loss on the Arctic region?

The loss of sea ice due to Climate Change has profound impacts on the Arctic ecosystem:

Impact on Polar Bears: Polar Bears are facing many different impacts. One of these is reduced body condition — the bears are thinner now because they are having to fast on land for longer periods. Further, it is also witnessed a reduced number of cubs being born. 

However, some polar bears are surviving in a special way in fjords that are sea ice-free for more than eight months of the year because they have access to glacier or freshwater ice on which they can hunt. But this will help only a small number of polar bears to survive for longer periods.

New Species into the Arctic: The loss of sea ice is bringing new species into the Arctic. Further, temperate or sub-Arctic species move in from farther south, including large killer whales. They prey on smaller Arctic whales like narwhals. Due to this, there is increased competition and overlap across species which is changing the ecosystem. 

Impact on Food Chain: The Arctic has two main bases for the food chain — these are copepods or plankton and the Arctic cod. They are both extremely important for many animals including seals which are the polar bears’ primary prey. The loss of sea ice is affecting copepods and their vertical migration cycle.

DRDO carries out test flight of autonomous UAV

Source: The post is based on the article “DRDO carries out test flight of autonomous UAV” published in The Hindu on 2nd July 2022

What is the News?

DRDO has successfully carried out the maiden test flight of a new Unmanned Aerial Vehicle (UAV), an autonomous Flying Wing Technology Demonstrator from the Aeronautical Test Range, Chitradurga, Karnataka.

Who has developed this Unmanned Aerial Vehicle (UAV)?

Designed and Developed by: Aeronautical Development Establishment(ADE), Bengaluru, a premier research laboratory under DRDO. 

Features

It is powered by a small turbofan engine. It is a stealth drone.

Note: A turbofan engine is a jet engine variant which produces thrust using a combination of jet core efflux and bypass air which has been accelerated by a ducted fan that is driven by the jet core. 

Stealth aircraft tend to adopt the design referred to as a “flying wing”. This is a tailless, fixed-wing design that has no fuselage. Its crew, payload, fuel, and equipment are housed inside the main wing structure. It works by balancing its airflow and centre of gravity so that no tail is needed.

What are the other UAVs being developed by DRDO?

Ghatak armed stealth drone programme or Autonomous Unmanned Research Aircraft (AURA): It is a self-defending, high-speed, reconnaissance UAV with a weapons firing capability.

Rustom-2: It is an indigenous Medium Altitude Long Endurance (MALE) UAV. This drone is being designed to reach an altitude of 30,000 feet and 18 hours of endurance.

NITI Aayog and World Food Program Releases Report – Take Home Ration: Good Practices across the State/Union Territories

Source: The post is based on the article “NITI Aayog and World Food Program Releases Report – Take Home Ration: Good Practices across the State/Union Territories” published in PIB on 30th June 2022

What is the News?

NITI Aayog and World Food Program have released a report titled ‘Take Home Ration-Good Practices across the State/Union Territories’. 

What is the purpose of the report?

The report presents a set of good and innovative practices adopted in the implementation of the Take Home Ration value chain by the States and UTs. 

What is Take Home Ration(THR)?

To ensure basic nutrition, health, better work potential and productivity, the Government of India has launched several schemes. One such scheme is the Integrated Child Development Services (ICDS).

Under ICDS, there is a Supplementary Nutrition Programme(SNP) component that aims to fill the gap in nutrition amongst children under six years of age as well as pregnant and lactating women. 

SNP is delivered through two modalities – Hot-Cooked Meal at Anganwadi Centers and Take-Home Ration(THR).

The THR module aims to provide supplementary food products to children aged 6 to 36 months and to pregnant and lactating women for use in their homes.

Note: The THR programme takes up a major share of the ICDS budget of the Central and State Governments annually

What are the observations made by the report on Take Home Ration component?

The entire THR value chain must ensure quality, transparency, and efficiency. For this, all components of the THR value chain need to function at optimum.

This requires building a robust system for procurement, supply chain management and monitoring that ensures complete transparency, standardized process, sustainability, full coverage, leverages local ties, fosters a culture of collaboration and builds trust within a community.

These measures will help improve THR access in rural areas, enhance community ownership and promote income-generating activities and female empowerment.

India home to largest number of opiate users: UN report on drugs

Source: The post is based on the article “India home to largest number of opiate users: UN report on drugs” published in Down To Earth on 29th June 2022.

What is the News?

The UN Office on Drugs and Crime(UNODC) has released the World Drug Report 2022.

What are the key findings of the report?

Globally: Compared to the previous decade, the number of drug users has increased by 26% globally.

Although women remain in the minority of drug users globally, their consumption rate increases more rapidly than men on average and fewer get treatment.

Young people continue to use more drugs than adults and have higher levels of use than in past generations.

Environmental Impact: Deforestation is associated with illicit coca cultivation; waste generated during synthetic drug manufacturing and dumping other waste can affect soil, water and air directly.

India: India has the most number of opiate users in the world. This trend is expected to rise with an increase in trafficking.

What are the recommendations of the report?

– Direct law enforcement resources to target maritime and container drug trafficking,

– Develop national drug prevention systems that reach children as early as possible in their development and focus on building resilience,

– Integrate outreach, psychosocial, pharmacological, healthcare and social support services to better protect the health of people who use drugs,

– Integrate drug policy approaches into conflict and peacebuilding responses and when addressing crises and weak rule of law,

– Mainstream the objective of “do no harm to the environment” in drug policy responses.

MoEF proposes amendments in Environment Protection Act, to decriminalize provision

Source: The post is based on the article “MoEF proposes amendments in Environment Protection Act, to decriminalize provision” published in Indian Express on 2nd July 2022.

What is the News?

The Ministry of Environment, Forests and Climate Change sought feedback from experts and other stakeholders as it proposed to decriminalize the existing provisions of the Environment Protection Act, 1986.

What are the current penal provisions under the Environment Protection Act(EPA), 1986?

The Environment Protection Act(EPA) came into force in 1986. It was enacted under Article 253 of the Indian Constitution which provides for the enactment of legislation for giving effect to international agreements.

Purpose: The Act establishes the framework for studying, planning, and implementing long-term requirements of environmental safety and laying down a system of speedy and adequate response to situations threatening the environment.

Penal Provisions: In case of any non-compliance or contravention of the current provisions of the EPA, or of the rules under this Act, the violator can be punished with imprisonment up to five years or with a fine up to Rs 1,00,000, or with both.

– In case of continuation of such violation, an additional fine of up to Rs 5,000 for every day during which such failure or contravention continues after the conviction for the first such contravention can be levied.

– Further, if the violation continues beyond a period of one year after the date of conviction, the offender can be punished with imprisonment for a term which may extend to seven years.

What are the changes proposed by the Government under EPA,1986?

The government has proposed to replace imprisonment with a monetary penalty for the “less severe” contraventions under the EPA.

However, serious violations of EPA which lead to grievous injury or loss of life shall be covered under the provision of the Indian Penal Code.

It has also proposed the creation of an “Environmental Protection Fund’’ in which the amount of penalty will be remitted.