The Comptroller and Auditor General of India (CAG) will preside over SAI20, the G20 Engagement Group for Supreme Audit Institutions (SAI). In this context, it is important for IAS aspirants to understand what is the SAI20 Engagement Group and what its significance is. This topic is relevant for the IAS exam current affairs and international relations segment.

SAI20 Priority Areas

The SAI20 Engagement Group of G20 was established in 2022 during Indonesia’s Presidency of the G20.

• Blue Economy and Responsible Artificial Intelligence (AI) have been chosen as priority subjects for discussion.
• As Chair of SAI20, India’s CAG intends to assist G20 nations in building a framework to promote intergenerational equality and reduce climate change while harnessing ocean resources.
• The CAG will produce technology-driven tools to assess authorised development along coastal areas and track marine water quality for SAI20.

Primary Functions of SAIs

SAI20 member countries are working together to develop globally appropriate audit toolkits as well as a collection of case studies and issues in the broader context of auditing coastal environments, which includes:

• Legal and institutional frameworks
• Observance of coastal regulations
• Biodiversity conservation
• Capacity building and SDG compliance

Key Roles of SAI20

• SAIs’ involvement in advising executives is critical in addressing major developmental problems while ensuring long-term development.
• The role of the SAI20 in fostering intergenerational equity and tackling climate change concerns emphasises their relevance in ensuring that the benefits of economic growth are distributed equally across generations.

Which countries are part of the SAI20?

 Blue Economy

• The blue economy, or ocean economy, has a global yearly worth of $2.5 trillion and includes a variety of coastal industries such as fishing and tourism.
• The United Nations Environment Programme (UNEP) published the Sustainable Blue Economy Finance Principles for the first time in 2018.
• This methodology can be used by investors to fund ocean-based industries.
• It can be used as a reference point for financiers to see how maritime investment can affect livelihood and poverty eradication.

Know more about the blue economy in the linked article.

Why is the Measurement of the Blue Economy Challenging?

• Because of varying definitions and challenges with defining different sectors and sub-sectors, measuring the blue economy is difficult.
• Existing international economic categories fail to distinguish between land-based and ocean-based industries.
• The National Accounts System (NAS) does not provide a comprehensive picture of the blue economy.
• Given these challenges, a new accounting methodology that can objectively identify production, commerce, and services associated with the diverse parts of the blue economy is required.

In the context of India:

• Between 1992 and 2018, agriculture, declining forest cover, and urbanisation affected 15% of India’s coastal areas.
• The country’s coastal population is predicted to grow from 64 million in 2000 to 216 million by 2060.
• India has designated the blue economy as one of the ten key sectors for national development.
• The Ministry of Earth Sciences has developed a National Blue Economy Policy that intends to harness maritime resources while maintaining the country’s unique marine biodiversity.

Challenges to Indian Blue Economy

• Cyclone and sea-level rise risks are projected to be greater in coastal areas as a result of climate change.
• According to GIS images from the European Space Agency, agriculture has changed 15% of India’s coastal areas between 1992 and 2018.
• Deforestation and urbanisation are reducing forest cover.
• The country’s coastal population is predicted to grow from 64 million in 2000 to 216 million by 2060.

 Suggestions by CAG for Executive

• Infrastructure built along coasts to withstand the effects of hurricanes, typhoons, and tsunamis.
• The executives should have enough infrastructure, including ICT centres in place for early warning systems.

 CAG’s Audit Report

• The CAG submitted its Conservation of Coastal Ecosystem report to Parliament in 2022, which included observations on how the Coastal Regulation Zone (CRZ) notifications for 2011 and 2019 were implemented between 2015 and 2019.
• The effectiveness of development drivers such as project approvals, construction activity, institutional capacity to combat land and forest violations, and community livelihood support mechanisms.
• Mitigation management plans to conserve biodiversity, such as mangroves and near-shore coral reefs, which protect humans from weather vulnerabilities such as storms and coastal floods, are being developed.
• The audit produced specific recommendations to improve the CRZ ecosystem.

SAI20 Engagement Group of G20:- Download PDF Here