Global Environmental ImpactENVRE 115Fall 2009

AnnouncementsBook Report description emailed to all enrolled students and available on course website

Visit the course blog and contribute to the discussions

Graduate students will be assigned to their groups this week

Homework grades will be emailed to students within 2 weeks of due date

Upcoming talk on Thursday, 24 September from 1-2 pmDr. Ayad Muhsen Altaai, General Coordinator, Global Initiative Towards a Sustainable Iraq (GITSI) - which is a global partnership contributing to the sustainable development in Iraq, 2008-2018 - will be speaking at the Environmental Sciences and Engineering, School of Engineering and Applied Sciences, Pierce Hall, Conference Room-114, 29 Oxford Street

AgendaConnection between infrastructure development, environmental impacts, and economic growth

Steps of an environmental impact assessment and the project cycle

Case Study: Natural gas pipeline, PRC

Can investing in environmental services reduce poverty?

Balancing Infrastructure Development and Environmental Impacts

FrameworkDemographicProcessesPopulationEnvironmentEconomicProcessesWastesNaturalProcessesCapital StockWaste flowsRecyclingLeakageGoods andservicesResources andservicesResourcesand services

To say that infrastructure development has impact is to state the obvious. No industrial country has advanced to such status without developing solid infrastructure facilities. And no low-income country has managed to escape poverty in the absence of infrastructure.

In addition to economic growth, infrastructure development has a very tangible impact on people's daily lives, and especially on the lives of poor people - Liqun Jin Vice President, ADB

Infrastructure development Economic GrowthPoverty reduction and economic development depend on sustained growth

Growth depends on productive activities supported by roads, railways, seaports and airports, power generation and transmission and other infrastructure services

Improve Infrastructure Decrease PovertyPredicated on two assumptions:Infrastructure development is managed well and in a cost-effective manner so as to reduce constraints to economic activities by lowering the cost of doing business and creating job opportunities

Direct revenue generation from infrastructure projects are allocated to improving human capital (education, health, and other vital social services)

Well-designed and well-managed infrastructure investment allows a government to broaden the horizons and raises the intellectual capital of the society as a whole

Mobilizes resources which stimulatesfinancial sector developmentinstitutional capacity buildinghuman resources developmentlegal and regulatory buildup

Improve Infrastructure Build Capacity

Current ChallengesPer capita GDP in developing Asia as a whole grew on average by 6% a year from 1999-2004 (and only 3.1%/annum for the poorest countries)

Realities in developing Asia36% of households have no access to electricity31% of the rural population has no access to all-season roads90% have no telephone connections20% have no access to safe drinking water67% have no access to sanitation

http://web.ulib.csuohio.edu/SpecColl/croe/accfire.html Cuyahoga River

Valley of the Drums

Shattered the assumption that the environment has an infinite capacity to absorb pollutants1962

Origins of environment regulation in USUS EPA established in 1970 Established in response to the growing public demand for cleaner water, air and landMission is to protect human health and to safeguard the natural environment

1970: Clean Air Act1972: Pesticide Control Act, Federal Water Pollution Act, Ocean Dumping Act & DDT banned1973: Industrial discharge permits issued & lead phase out1974: Safe Drinking Water Act1975: Bans heptachlor and chlordane1976: Toxic Substance Control Act & Resource Conservation and Recovery Act

Environmental TransitionEnvironmental transitionAt some point of economic development, the level of resource and environmental pressure is starting to go down (Kuznets Curve)

Pollution controlSeveral legislation were put forward to reduce environmental impacts, notably in the industrial sector.

Process changesIndustrial processes generating high pollution levels were changed because of legislation and increasing efficiency.

Structural economic changesPollution intensive industrial activities have been relocated in developing countries.

Environmental TransitionLevel of DevelopmentLevel of Environmental PressurePollution controlProcess changes andefficiency increasesStructural economicchanges anddematerialization ofconsumption patternsDeveloping countriesDeveloped countries

The Probo Koala, the tanker accused of delivering a slick, highly toxic cocktail of petrochemical waste and caustic soda to Abidjan.NY Times - http://www.nytimes.com/slideshow/2006/10/01/world/20061002_IVORY_SLIDESHOW_1.html

A worker helping to clean up toxic sludge last week in Abidjan, Ivory Coast. The sludge, dumped from a tanker, has been blamed for eight deaths. NY Times - http://www.nytimes.com/slideshow/2006/10/01/world/20061002_IVORY_SLIDESHOW_1.html

A boy searched for aluminum last week in a dump in Akouedo, a community where much of the toxic material was dumped last month. An estimated 400 to 600 tons of petrochemical waste was dumped in the city.

Candace Feit for The New York Times

Environmental ImpactAssessment

What is an Environmental Impact Assessment (EIA)?an important procedure for ensuring that the likely effects of new development on the environment are fully understood and taken into account before the development is allowed to go ahead(DETR and National Assembly for Wales, 1999)

Origins and History of EIAIn United States

US National Environmental Policy Act (NEPA) of 1970

Requires federal agencies to consider environmental impacts of their proposed actions and reasonable alternatives to those actions

Goals of NEPAEach generation is a trustee of the historical, cultural, and natural environment for succeeding generationsAssure a safe, healthful, productive, and aesthetically and culturally pleasing surroundings for all AmericansAttain the widest range of beneficial uses of the environment without degradation, risk to health or safety, or other undesirable and unintended consequencesEnhance the quality of renewable resources

Origins and history of EIAIn Europe

In 1977 the European Commission began drafting a directive on EIA and finally published a proposal in 1980

Directive 85/337/EEC on the assessment of the effects of certain public and private projects on the environment the EIA Directive was adopted in July 1985 and Member States had until 3 July 1988 to implement its requirements

European Commissions web pages on environmental assessment http://europa.eu.int/comm/environment/eia/home.htm

International BanksWorld Bank requires EIAs as of 1989Apply to any Bank-financed or implemented projectsNatural environmentHuman health and safetySocial aspects (involuntary resettlement, indigenous peoples, and physical cultural resources)Transboundary and global environmental aspectsDesigned to be used as a tool to improve project performance and sustainability

Asian Development Bank requires environmental assessmentshttp://www.adb.org/Projects/reports.asp?key=reps&val=ERD

Guiding Principles of EIAEIA a systematic processof identifying futureconsequences of a currentor proposed actionTransparencyCertaintyParticipationPracticalityFeasibilityCost-effectiveCredibilityAccountability8 Guiding Principles

Project CycleSource: ADB, 1997

1. Project Concept/IdentificationInitial stage of the project planning

Basic nature of the project is known including the site(s) where the project is being proposed to be implemented

Screen project to determine if project requires a full EIA

ScreeningProjectEnvironmentalimpactEconomicimpactSocialimpactScreening Identify environmental issues of concern Determine whether EIA is needed Establish need for projectNot requireEIARequireEIAImpactsunclear

Threshold criteriaImpact criteriaSize Location Output Cost/FinancesEnvironmental effects etc. Significant but easily identifiable impacts Significant impacts Sensitive area

Methods for ScopingB. Pre-feasibility StageMaking a plan for public involvementIdentifying major issues of public concernEstablishing priorities for environmental assessmentDeveloping a strategy for addressing prioritiesEvaluating the significance of issuesDistribution of information to interested partiesScope the project to identify issues/impacts for investigation

Initial Assessment of ImpactsExisting or baseline data:

provide a description of the status and trends of environmental factors (e.g., air pollutant concentrations) against which predicted changes can be compared and evaluated in terms of importance

provide a means of detecting actual change by monitoring once a project has been initiated

C. Feasibility Stage Conduct the EIA and determine if the project is viable

Magnitude of impact - indicate whether the impact is irreversible or, reversible and estimated potential rate of recovery

Extent of impact - spatial extent of impacts should be determined

Duration of Impact - arising at different phases of the project cycle and the length of the impact [e.g. short term (during construction-9 yrs), medium term (10-20 yrs), long term (20+ yrs)]

D. Implement & Audit the Project The EIA is a "reference" guide during implementationOutlines mitigation strategies and monitoring schemes

Preventative measures - reduce potential adverse impacts before occurrence

Compensatory measures - compensate for unavoidable adverse impacts

Corrective measures - reduces the adverse impact to an acceptable level

Recommendations can form a part of contract tender

Audit project after completion to identify lessons learned

E. Environmental MonitoringEnvironmental monitoring provides feedback about the actual environmental impacts of a project

Helps judge the success of mitigation measures in protecting the environment

Ensure compliance with environmental standards

Facilitate any needed project design or operational changes

BenefitsFlawsProvides systematic methods of impact assessmentTime-consumingEstimates the cost/benefit trade-off of alternative actionsCostlyFacilitates the public participationLittle public participation in actual implementationProvides an effective mechanism for coordinationenvironmental integrationnegotiationsfeed backUnavailability for reliable data (mostly in developing countries)Top-level decision makingToo focused on scientific analysis (sometimes)Triggers an institutional buildingPoor presentation of EIA report (bulky volumes, scientific explanation, difficult to understand)Achieve a balance between the impact of developmental and environmental concernCompliance monitoring after EIA is seldom carried out

Case Study

Beijing Environmental Improvement Project, Peoples Republic of Chinahttp://www.adb.org/Documents/PCRs/PRC/pcr-prc-25371.pdf

Beijing Environmental Improvement Project

Sub-projectsEIA Classification1. District heating systemB2. Natural gas distribution systemB3. Pollution abatement at drinking water reservoirsB4. Relocation and renovation of chemical plantA5. Treatment and disposal of hazardous wasteA6. Institutional StrengtheningBeijing Environmental Protection BureauBeijing Research Institute of Environmental ProtectionBeijing Environmental Monitoring CenterBeijing Technical Training Center for Environmental ProtectionC

Summary Initial Environmental Examinations (SIEE)Project description:Supply co-generated steam and hot water from Huaneng Power Station in a closed loop system to 21 factories

Install a natural gas distribution system pipeline to distribute 0.7 billion cubic meters of natural gas/year

SIEEAnticipated impacts during construction:Effects associated with laying pipesSoil excavationInterfere with pedestrian and road traffic and potential injury hazardIncreased noise and dust

Displace houses, people, trees365 families (1,456 people) for the district heating system120 families (480 people) for the natural gas pipeline

SIEEAnticipated impacts after construction:Material failure leading to accidental releaseSteam pipelines- loss of powerNatural gas pipelines- fire, explosion

Mitigation Measures:Impacts during construction are negative but reversible or can be minimizedConstruction during daylight hours in residential neighborhoods when noise is less bothersomeConstruction in commercial areas at night when less likely to impact businesses

SIEEMonitoring programOrganize an environmental management and protection section to oversea project and coordinate with appropriate agencies

Annual report to ADB of projects compliance with environmental standards

Monitor natural gas equipment with a continuous hydrocarbon analyzer, inflammable gas analyzer, and noise meter

Pipe integrity to be tested continuously using impressed electric currents

Automatic control values, pressure release valves, rupture valves, firefighting equipment and other safety devices checked periodically

SIEEMitigation Measures:Budget for re-locating families into improved housing that includes amenities such as potable water supply, sewage collection, drainage, hot water, gas, and electricityInclude expenses for re-trainingEmployment near their new residences

Small trees can be re-planted and pipeline will be sited to avoid larger mature trees when possible

Fence off construction sites

SIEEEconomic BenefitsJobsHeating project will employ 1,400 persons permanentlyNatural gas project will employ 1,500 persons permanentlyTemporary employment during construction phaseFuelCost savings resulting from the substitution of coal for natural gas

Environmental benefits after constructionHeat and steam could reduce coal use by 1.16 million metric tons which is equivalent to the removal of 19,900 metric tons of sulfur dioxides10,000 metric tons of total suspended materials336,900 metric tons of ash and slag

Financial ReturnOriginal financial internal rate of return (FIRR)Steam heating project was 7.3% (reality 5.9%)Natural gas network was 10.0% (reality 11.1%)http://www.adb.org/Documents/PCRs/PRC/pcr-prc-25371.pdf

Other Benefits lower air pollutionPHOTOS: Bob Zerbonia

Other Benefits less acid rain

Other Benefits childrens healthLewis et al. MJA 1998; 169: 459-463

Other Benefits reduced arsenicLiu et al. EHP(2002) Vol. 110

Word of caution EIAs cannotDecide which alternative to chose

Prevent environmental impacts from happening

Guarantee decisions you like

Prohibit any actions

Cumulative effects of multiple projects and over time

Global Environmental Impacts

What makes it global?Local Commons Urbanization Water supply and sanitation Human health

Regional Commons Airsheds Watersheds Land and forests Industrialization Transportation corridors Agriculture and other land uses Global Commons Oceans Atmospheres Minerals and materials Climate Globalization of trade and commerce Global social and political institutions Epidemics

Altering the structure of an ecosystem (habitats or species) can influence the services provided by a particular ecosystemAlter Structure, Alter Function FisheriesAgricultureNitrogen & Phosphorous cycle

Disruption of the phosphorous cycle in Mississippi due to fertilizer run-off

SOURCE: USGSLoss of wetlands and restructuring wetlands in Louisiana removes natural nutrient filtration

Gulf of Mexico "Dead ZoneHypoxic Zone depleted oxygen

Northern Gulf of Mexico/Mississippi Delta showing deoxygenated (hypoxic) coastal water (light blue). This is due to excessive nitrogen being washed into the sea. Source: Jacques Descloitres, MODIS Land Rapid Response Team, NASA/GSFC, Jan 2003

What is causing ecosystem change?Direct Driver- influences ecosystem processesHabitat changeOver-exploitationInvasive alien speciesPollutionClimate change

Indirect Driver-collectively these drivers influence the level of production & consumption of ecosystem servicesPopulation changesEconomic activitiesSocio-political/Governmental factorsCultural factorsTechnological changes

Impact From Human ActivityThe ecosystems most altered by human activityMarineFreshwaterTemperate broadleaf forestsTemperate grasslandsMediterranean forestsTropical dry forests

The majority of the ecosystem conversion was to cultivated systems

The 2001 OECD Environmental OutlookThe forces driving environmental change and State of the Environmenthttp://www.oecd.org/dataoecd/33/38/1863523.pdf

Investing in Ecosystems for Pro-Poor DevelopmentCase Analysis Prepared by: Simon Zbinden and David R. Lee May 3, 2003

Conference onReconciling Rural Poverty Reduction and Resource Conservation

Linkages Between Sustainable Development, Environment and PovertySUSTAINABLE DEVELOPMENTPOVERTYDEVELOPMENTResourceDepletion andDegradationResourceDepletion andDegradationENVIRONMENT PROBLEMSPOLLUTION, LAND DEGRADATION,CLIMATE CHANGEViciousCircle IViciousCircle IIPollution ofpovertyPollution ofaffluencePoverty Alleviation* Meeting basic needs (health/education/shelter)* Productive employment* Control over common property resources* Population controlIntegration of Environment into Development* SEA & EIA of development projects* Technology for development* Rural-urban migration* Renewable energy issues* Regional and international cooperationSource: Jalal, 1993

A Vicious Circle?POVERTYENVIRONMENTALDEGRADATIONBrundtland Report 1990 - poverty as a major cause and effect of global environmental problems

Responding to environmental threatsDemand for environmental quality ... is a luxury - the poor are too busy thinking about basic survival to concern themselves with environmental issues

Ability to respond to such demands ... is dependent on aggregate wealth - economic prosperity and technological sophistication allow nations to react to environmental challenges

Ergo ...Environmentalism is the exclusive concern of the rich, in the advanced industrial nations

Understanding responsesOut of concern for nature as a source of cultural, spiritual, social and economic value ...

To mitigate anthropogenic influences on the natural environment pollution, resource depletion, extinction of species ...

To reduce the impacts of environmental changes on human society health impacts, livelihoods, needs, well-being Are these concerns exclusively found in rich nations?

ForestryEcological Function of Forestsregulate the water cyclestabilize soilsmoderate climate by fixing carbonprovide habitat for flora and faunaoffer cultural, spiritual, and recreational opportunitiesprovide food, medicines, and wood

Amazon BasinPhoto: World Resources Institute

Change in World Forest Cover, 1990-2005Source: Compiled by Earth Policy Institute from U.N. Food and Agriculture Organization, Global Forest Resources Assessment 2005 (Rome: 2006), www.fao.org/forestry/site/32038/en.Overall, trend is decreasing forest cover with a steady increase in production for both fuel wood and industry.

The Costa Rican System of Payments for Forest Environmental ServicesThe forestry law specifies the following: Cash compensation paid to landowners and forest owners for environmental services.

Explicitly recognized environmental services includecarbon storage and sequestrationwatershed protection biodiversity conservation provision of scenic beauty

Pagos Por Servicios Ambientales (PSA) program rulesPSA contacts create a legal easement that remains with the property if it is sold Individuals were restricted to registering 2-300 hectares of land per yearIndigenous groups could register up to 600 ha/yearCoalitions acting through local nongovernmental organizations had no limits

Landowners transfer carbon offset rights to the national government which then sells these offsets on the international market

G. Arturo Sanchez-Azofeifa et al (2007). Costa Ricas Payment for Environmental Services Program: Intention, Implementation, and Impact. Conservation Biology.

Costa Ricas PSA Program

Selected Details of Program Options

Program OptionTotal Payment $ / ha1Contract Period YearsContract AreaDisbursementMin. haMax. ha% of payment per yearReforestation623151-50%, 20%, 15%, 10%, 5%Forest Conservation38410230020%, 20%, 20%, 20%, 20%, Sustainable Management2415230050%, 20%, 10%, 10%, 10% 1) Total payment per hectare in nominal US Dollars between 1997 and 2001 Source: Adapted from Chomitz, Brenes and Constantino, 1998.

ReforestationReforestationForest ConservationForest ConservationForest ConservationSustainable ManagementSustainable ManagementSustainable ManagementNational Forestry Financing Fund$$$Costa Rican CitizensCarbon BuyersGlobal CommunityLocal Hydro-Power Plants3.5% Tax on Fossil FuelOCIC Joint ImplementationGlobal Environ. Facility GEFwater services, biodiversity,scenic beautycarbon sequestrationBiodiversity, carbon sequestrationwater services$$$$$$$Source: Adapted from Pagiola, 2002.

ReforestationForest Environmental ServicesCosta Ricas PSA Program

Financing Payments for Environmental Services

Forest Cover (hectares)Protected Areas (hectares)Population (No. habit.)Source: Gamez, 2001

Quantitative Impact of the ProgramHectares (1,000); # inhabitantes (1,000)

PSA program funding: Original PSA program was a 15% consumer tax on fossil fuelsIn 2001 a new law was passed, assigning 3.5% of tax revenue directly to the PSA programVoluntary contracts with private hydroelectric producers who pay for watershed servicesWorld Bank loan and a Global Environmental Facility (GEF) grant

Financial returns from the program: Average returns from PSA ranged from US$22 to US$42/ha/year before fencing, tree planting, and certification costsThe main competing land use -- cattle ranching -- shows returns from US$8 to US$125, "depending on location, land type, and ranching practices"

Take Home MessagesHistory illustrates the environmental impacts associated with unregulated infrastructure growth

Infrastructure growth is necessary for economic growth

Environmental impact assessments are a formal process for evaluating and mitigating negative environmental impacts before a project is built

Global environmental resources are in steady decline

Current debate whether investing in environmental services can reduce poverty

Key ConceptsEnvironmental transition/Kuznets curveEnvironmental Impact AssessmentProject CyclePolicies to break vicious cycles of affluence and poverty to promote environmental quality

Recommended text booksWood, C. (2002). Environmental Impact Assessment: a Comparative Review (2nd Edition). Harlow: Prentice HallTherivel, R. and Partidrio, M.R. (1996). The Practice of Strategic Environmental Assessment. London: Earthscan Glasson, J. Therivel, R. and Chadwick, A. (1999). Introduction to Environmental Impact Assessment (2nd Edition). London: Spon Press

**Source: Statistics Canada, 11-509E****************************************