Global Environmental Impact

1. Global Environmental Impact ENVRE 115 Fall 2009

2. Announcements • Book 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 gradeswill be emailed to students within 2 weeks of due date • Upcoming talk on Thursday, 24 September from 1-2 pm Dr. 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

3. Agenda • Connection 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?

4. Balancing Infrastructure Development and Environmental Impacts

5. Framework Demographic Processes Population Goods and services Resources and services Resources and services Capital Stock Environment Economic Processes Natural Processes Leakage Wastes Waste flows Recycling

6. “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

7. Infrastructure development Economic Growth Poverty 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

8. Improve Infrastructure  Decrease Poverty Predicated 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)

9. 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 stimulates financial sector development institutional capacity building human resources development legal and regulatory buildup Improve Infrastructure  Build Capacity

10. Current Challenges Per 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 Asia 36% of households have no access to electricity 31% of the rural population has no access to all-season roads 90% have no telephone connections 20% have no access to safe drinking water 67% have no access to sanitation

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

12. Valley of the Drums

13. Shattered the assumption that the environment has an infinite capacity to absorb pollutants 1962

14. Origins of environment regulation in US • US EPA established in 1970 • Established in response to the growing public demand for cleaner water, air and land • Mission is to protect human health and to safeguard the natural environment 1970: Clean Air Act 1972: Pesticide Control Act, Federal Water Pollution Act, Ocean Dumping Act & DDT banned 1973: Industrial discharge permits issued & lead phase out 1974: Safe Drinking Water Act 1975: Bans heptachlor and chlordane 1976: Toxic Substance Control Act & Resource Conservation and Recovery Act

15. Environmental Transition • Environmental transition • At some point of economic development, the level of resource and environmental pressure is starting to go down (Kuznet’s Curve) • Pollution control • Several legislation were put forward to reduce environmental impacts, notably in the industrial sector. • Process changes • Industrial processes generating high pollution levels were changed because of legislation and increasing efficiency. • Structural economic changes • Pollution intensive industrial activities have been relocated in developing countries.

16. Environmental Transition Developing countries Developed countries Pollution control Process changes and efficiency increases Level of Environmental Pressure Structural economic changes and dematerialization of consumption patterns Level of Development

17. 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

18. 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

19. 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.

22. Environmental ImpactAssessment

23. 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)

24. Origins and History of EIA In 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 NEPA Each generation is a trustee of the historical, cultural, and natural environment for succeeding generations Assure a safe, healthful, productive, and aesthetically and culturally pleasing surroundings for all Americans Attain the widest range of beneficial uses of the environment without degradation, risk to health or safety, or other undesirable and unintended consequences Enhance the quality of renewable resources

25. Origins and history of EIA In 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 Commission’s web pages on environmental assessment http://europa.eu.int/comm/environment/eia/home.htm

26. International Banks World Bank requires EIAs as of 1989 Apply to any Bank-financed or implemented projects Natural environment Human health and safety Social aspects (involuntary resettlement, indigenous peoples, and physical cultural resources) Transboundary and global environmental aspects Designed to be used as a tool to improve project performance and sustainability Asian Development Bank requires environmental assessments http://www.adb.org/Projects/reports.asp?key=reps&val=ERD

27. Guiding Principles of EIA Transparency Participation Practicality EIA “ a systematic process of identifying future consequences of a current or proposed action” Feasibility Cost-effective Credibility Certainty Accountability 8 Guiding Principles

28. Project Cycle Source: ADB, 1997

29. 1. Project Concept/Identification Initial 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

30. Screening • Screening • Identify environmental issues of concern • Determine whether EIA is needed • Establish need for project Environmental impact Project Economic impact Require EIA Impacts unclear Not require EIA Social impact

31. B. Pre-feasibility Stage “Scope” the project to identify issues/impacts for investigation Methods for Scoping Making a plan for public involvement Evaluating the significance of issues Identifying major issues of public concern Distribution of information to interested parties Establishing priorities for environmental assessment Developing a strategy for addressing priorities

32. Initial Assessment of Impacts Existing 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

33. 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)]

34. D. Implement & Audit the Project The EIA is a "reference" guide during implementation Outlines 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

35. E. Environmental Monitoring Environmental 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

37. Case StudyBeijing Environmental Improvement Project, People’s Republic of China http://www.adb.org/Documents/PCRs/PRC/pcr-prc-25371.pdf

38. Beijing Environmental Improvement Project

39. 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

40. SIEE Anticipated impacts during construction: Effects associated with laying pipes Soil excavation Interfere with pedestrian and road traffic and potential injury hazard Increased noise and dust Displace houses, people, trees 365 families (1,456 people) for the district heating system 120 families (480 people) for the natural gas pipeline

41. SIEE Anticipated impacts after construction: Material failure leading to accidental release Steam pipelines- loss of power Natural gas pipelines- fire, explosion Mitigation Measures: Impacts during construction are negative but reversible or can be minimized Construction during daylight hours in residential neighborhoods when noise is less bothersome Construction in commercial areas at night when less likely to impact businesses

42. SIEE Monitoring program Organize an environmental management and protection section to oversea project and coordinate with appropriate agencies Annual report to ADB of project’s 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

43. SIEE Mitigation Measures: Budget for re-locating families into improved housing that includes amenities such as potable water supply, sewage collection, drainage, hot water, gas, and electricity Include expenses for re-training Employment 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

44. SIEE Economic Benefits Jobs Heating project will employ 1,400 persons permanently Natural gas project will employ 1,500 persons permanently Temporary employment during construction phase Fuel Cost savings resulting from the substitution of coal for natural gas Environmental benefits after construction Heat 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 dioxides 10,000 metric tons of total suspended materials 336,900 metric tons of ash and slag

45. Financial Return Original 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

46. Other Benefits … lower air pollution PHOTOS: Bob Zerbonia

47. Other Benefits … less acid rain

48. Other Benefits … children’s health Lewis et al. MJA 1998; 169: 459-463

49. Other Benefits … reduced arsenic Liu et al. EHP(2002) Vol. 110

50. Word of caution … EIAs cannot Decide which alternative to chose Prevent environmental impacts from happening Guarantee decisions you like Prohibit any actions Cumulative effects of multiple projects and over time