Category Archives: lawbreakers

The Green Climate Fund and COVID-19

 The Green Climate Fund has promised developing nations it will ramp up efforts to help them tackle climate challenges as they strive to recover from the coronavirus pandemic, approving $879 million in backing for 15 new projects around the world…The Green Climate Fund (GCF) was set up under U.N. climate talks in 2010 to help developing nations tackle global warming, and started allocating money in 2015….

Small island states have criticised the pace and size of GCF assistance…Fiji’s U.N. Ambassador Satyendra Prasad said COVID-19 risked worsening the already high debt burden of small island nations, as tourism dived…The GCF  approved in August 2020 three new projects for island nations, including strengthening buildings to withstand hurricanes in Antigua and Barbuda, and installing solar power systems on farmland on Fiji’s Ovalau island.

It also gave the green light to payments rewarding reductions in deforestation in Colombia and Indonesia between 2014 and 2016. But more than 80 green groups opposed such funding. They said deforestation had since spiked and countries should not be rewarded for “paper reductions” in carbon emissions calculated from favourable baselines…. [T]he fund should take a hard look at whether the forest emission reductions it is paying for would be permanent.  It should also ensure the funding protects and benefits forest communities and indigenous people…

Other new projects included one for zero-deforestation cocoa production in Ivory Coast, providing rural villages in Senegal and Afghanistan with solar mini-grids, and conserving biodiversity on Indian Ocean islands.  The fund said initiatives like these would create jobs and support a green recovery from the coronavirus crisis.

Excerpts from Climate fund for poor nations vows to drive green COVID recovery, Reuters, Aug. 22, 2020

New Loan Sharks? Microfinance

Bangladesh may be the homeland of microcredit, but no country is keener on it than Cambodia. According to its central bank, there were some 160,000 branches of microfinance institutions around the country in 2016—one for almost every square kilometre of Cambodian territory. Almost 2.2m of Cambodia’s 10m-odd adults have a microcredit loan outstanding, according to the Cambodian Microfinance Association (CMA), an industry group. The average debt is $3,320—roughly twice the country’s annual gdp per person. Credit is growing by 40% a year.

The microfinance boom has brought many benefits. An obvious one is a decline in the use of loan sharks….But the industry’s breakneck growth may not be sustainable. Household debt has swollen as the size of loans has ballooned. According to the World Bank, the average loan grew “more than tenfold” over the past five years. …“[Cambodia] probably should have had a crisis by now,” admits Daniel Rozas, an adviser to the cma, “but somehow it hasn’t.”

That may be in part thanks to the efforts of the National Bank of Cambodia, the central bank, to tame the industry…Some regulations, however, may be exacerbating the industry’s excesses. The central bank’s introduction of an interest-rate cap of 18% a year in 2017 seems to have backfired. Because of the cap, the CMA says, microfinance institutions can turn a profit only by lending more than $2,000. The number of loans of $500 or less declined by 48% after the rule’s introduction, the World Bank estimates. Some fees rose, too.

The CMA says defaults are minimal, with only 1% of loans in serious arrears at the beginning of the year. But there are hints that borrowers are getting into difficulty. The typical loan uses land as collateral... Lenders seldom take borrowers to court to repossess land; it is not worth the time and expense for a loan of just a few thousand dollars. But many conscientious borrowers appear to sell their land voluntarily to pay up. Government surveys show that the proportion of people who are landless rose from 32% in 2009 to 51% in 2016. Among the many reasons given for selling land, one of the most common was to repay debts. Given that the government does little to monitor the conduct of lenders, and many land sales are informal, it is hard to tell how voluntary such transactions really are.

Excerpts from Service Economy: Development in Cambodia, Economist, Aug. 15, 2020

No Clean-Up, No Justice: Ogoniland, Nigeria

The UN Environment Programme in 2011 proposed the creation of a $1 billion fund to repair the damage done by decades of crude spills in the Ogoniland area in southeastern Nigeria. However, progress has been poor and the little work that has been done is sub-standard, advocacy groups including Amnesty International reported in June 2020.  “Research reveals that there is still no clean-up, no fulfillment of ‘emergency’ measures, no transparency and no accountability for the failed efforts, neither by the oil companies nor by the Nigerian government,” the groups said.

Shell’s Nigerian unit pumped oil in Ogoniland until 1993, when the company withdrew amid increasing protests against its presence. Even though the Hague-based company no longer produces crude in the area, a joint venture operated by Shell Petroleum Development Company, or SPDC, still owns pipelines that crisscross the region.

A government agency responsible for overseeing the clean-up, the Hydrocarbon Pollution Remediation Project, known as Hyprep, was finally set up in 2017 after several false starts, but it’s failing to deliver. …“Hyprep is not designed, nor structured, to implement a project as complex and sizable as the Ogoniland clean-up,” the report cites UNEP as saying in 2019

Excerpt from Clean Up Oil in Nigerial Lacks Progress, Bloomberg, June 18,, 2020

Oil Spills of Sudan, Humanity for Africa, and East African Court of Justice

The East African Court of Justice delivered in June 2020 a temporary injunction order to the country’s Minister for Justice, the Greater Pioneer Operating Company (GPOC), and the Dar Petroleum Operating Company. The Court approved the application by Hope for Humanity Africa (H4HA), a non-governmental organization (NGO), which sought to highlight the environmental damage caused by oil spills… The NGO contends that: “Over 47,249 of the local population in Upper Nile State and 60,000 in Unity State are at risk of being exposed to the oil pollution this is because the local population depends on the wild foods for survival, the contaminated swamps, streams and rivers waters for cooking, drinking, washing, bathing and fishing.”…

The H4HA is looking for an injunction to stop multiple companies from exporting oil from the region, including CNPC of China, Petronas of Malaysia, and Oil & Natural Gas Corp. of India (ONGC) 

Excerpts South Sudan Suspended by African Union, Barred From Exporting Oil by East African Court, https://www.youngbhartiya.com, June 24, 2020

Amazon Rainforest: Source of Food for Vegans, Meat-Lovers

In the first four months of 2020 an estimated 1,202 square km (464 square miles) were cleared in the Brazilian Amazon, 55% more than during the same period in 2019, which was the worst year in a decade…Less attention has been paid to the role of big firms like JBS and Cargill, global intermediaries for beef and soya, the commodities that drive deforestation.  The companies do not chop down trees themselves. Rather, they are middlemen in complex supply chains that deal in soya and beef produced on deforested land. The process begins when speculators, who tend to operate outside the law, buy or seize land, sell the timber, graze cattle on it for several years and then sell it to a soya farmer. Land in the Amazon is five to ten times more valuable once it is deforested, says Daniel Nepstad, an ecologist. Not chopping down trees would have a large opportunity cost. In 2009 Mr Nepstad estimated that cost (in terms of forgone beef and soy output) would be $275bn over 30 years, about 16% of that year’s GDP.

Under pressure from public opinion, the big firms have made attempts to control the problem. In 2009, a damning report from Greenpeace led JBS, Marfrig and Minerva, meat giants which together handle two-thirds of Brazil’s exports, to pledge to stop buying from suppliers that deforest illegally. (The forest code allows owners to clear 20% of their land.) JBS, which sources from an area in the Amazon larger than Germany, says it has blocked 9,000 suppliers, using satellites to detect clearing.

The problem is especially acute in ranching, which accounts for roughly 80% of deforestation in the Amazon, nearly all of it illegal. “Cows move around,” explains Paulo Pianez of Marfrig. Every fattening farm the big meatpackers buy from has, on average, 23 of its own suppliers. Current monitoring doesn’t cover ranchers who breed and graze cattle, so it misses 85-90% of deforestation. Rogue fattening farms can also “launder” cattle by moving them to lawful farms—perhaps their own—right before selling them. A new Greenpeace report alleges that through this mechanism JBS, Marfrig and Minerva ended up selling beef from farms that deforested a protected Amazon reserve on the border between Brazil and Bolivia. They said they had not known about any illegality.

One reason that soya giants seem more serious than meat producers about reducing deforestation a network of investors concerned about sustainability, is that most soya is exported. The EU is the second-top destination after China. But companies struggle to get people to pay more for a “hidden commodity”… But few people will pay extra for chicken made with sustainable soya, which explains why just 2-3% is certified deforestation-free. ….Four-fifths of Brazilian beef, by contrast, is eaten in Brazil. Exports go mostly to China, Russia and the Middle East, where feeding people is a higher priority than saving trees. Investors, for their part, see beef firms as unsexy businesses with thin margins

According to soya growers, multinational firms failed to raise $250m to launch a fund for compensating farmers who retain woodland. “They demand, demand, demand, but don’t offer anything in return,” complains Ricardo Arioli….

Reducing deforestation will require consensus on tricky issues like the fate of tens of thousands of poor settlers on public lands in the Amazon, where half of deforestation takes place….

Excerpts from The AmazonL Of Chainshaws and Supply Chains, Economist, JUne 13, 2020

Hunting Down Polluters from Space

When scanning for emissions from a mud volcano in western Turkmenistan in January 2019, a satellite called Claire came across a large plume of methane drifting across the landscape. … The company operating the satellite, GHGSAT passed details via diplomats to officials in Turkmenistan, and after a few months the leaks stopped. This largely unknown incident illustrates two things: that satellites can play an important role in spotting leaks of greenhouse gases and, rather worryingly, that the extent of such leaks is often greatly underestimated. The data from Claire suggested the leak in Turkmenistan had been a big one…142,000 tonnes of methane. This made the Turkmenistani leak far bigger than the 97,000 tonnes of methane discharged over four months by a notorious blowout at a natural-gas storage facility in Aliso Canyon, California, in 2015, which is reckoned to have been the worst natural-gas leak yet recorded in America. There have been other big leaks, too…

The reason for concern is that although methane, the main constituent of natural gas, does not linger in the atmosphere for anywhere near as long as carbon dioxide does, it is a far more potent heat-trapping agent. About a quarter of man-made global warming is thought to be caused by methane. And between a fifth and a third of the methane involved is contributed by the oil and gas industry. Methane can be detected spectroscopically. Like other gases, it absorbs light at characteristic frequencies. With a spectrometer mounted on a satellite it is possible to analyse light reflected from Earth for signs of the gas. As with the satellites that carry them, spectrometers come in many shapes and sizes. Tropomi can also detect the spectral signs of other polluting gases, such as nitrogen dioxide, sulphur dioxide and carbon monoxide.

Other methane-hunting satellites are coming. These include one due for launch in 2022 by Methanesat, an affiliate of the Environmental Defence Fund, an American non-profit organisation. The 350kg satellite will cost $88m to build and put into orbit. It will scan an area of land 200km wide with a resolution of 1km by 1km. According to Methanesat, it will be the most sensitive to emission levels yet, being able to detect methane concentrations as low as two parts-per-billion. Data collected by the satellite will be publicly available.

Excerpts from The Methane Hunters, Economist, Feb. 1 2020

The Nightmare: Sabotaging 20 Million Nuclear Shipments

Nuclear and other radioactive material is hardest to protect when it is transported from point A to point B — more than half of the incidents of theft of radioactive material reported to the IAEA between 1993 and 2019 occurred while it was in transport.

Around 20 million shipments of nuclear and other radioactive material are regularly transported within countries and across borders each year. These materials are used in industry, agriculture and medicine, as well as in education. Some of them are also radioactive sources that are no longer useful, known as disused sources.

The aim of nuclear security during transport is to ensure that the material is secured throughout and that it is not used for criminal or malicious purposes. While the level of security differs depending on the sensitivity of the material, the fundamental elements of secure transport include physical protection, administrative measures, training and protection of information about the transport routes and schedule. In some cases, escort personnel may also need to be armed

“During conversion of our research reactor from high enriched to low enriched uranium fuel, we had to transport highly radioactive spent reactor fuel from the site to the airport to be sent back to the original manufacturer, and we had to transport the new low enriched uranium fuel from the airport to the facility,” said Yusuf A. Ahmed, Director of the Centre for Energy Research and Training in Nigeria, who was involved in the conversion project. “Although the transport time is only a few hours, there is a lot that can happen during that time, from simple traffic accidents to malicious interventions and sabotage of shipments.”

While only around 30 countries use nuclear power and therefore have significant amounts of nuclear materials to transport, almost all countries use radioactive sources.

Excerpts from Inna Pletukhin, A Moving Target: Nuclear Security During Transport, IAEA Bulletin, Jan. 24, 2020

Left to their Own Bad Devices: the Future of Ogoni Land in Nigeria

The decades-overdue clean-up of Ogoniland, after years of oil spills from the pipelines that criss-cross the region, is finally under way. But the billion-dollar project — funded by Nigeria’s national oil company and Royal Dutch Shell — is mired in allegations of corruption and mismanagement.  “We are not pleased with what is going on,” said Mike Karikpo, an attorney with Friends of the Earth International and a member of the Ogoniland team that negotiated the creation of the Hydrocarbon Pollution Remediation Project (Hyprep), the government body running the clean-up… 

Nigeria is Africa’s biggest oil producer, pumping out about 1.8m barrels per day. It provides roughly 90 per cent of the country’s foreign exchange and more than half of government revenues.  The clean-up began only the summer 2019, about a year after the first of an expected five tranches of $180m in funding was released to Hyprep. Mr Karikpo complains of a lack of transparency, alleging that planning, budgeting and awarding of contracts took place behind closed doors. Work started at the height of the rainy season, washing away much of the progress as contaminated soil collected for treatment was swept back into the environment…

Ogoniland, like the broader Niger Delta, has become more polluted and development has stalled, with little to show for the billions of dollars in crude that has been extracted. Critics have now accused Hyprep of being, like much of Nigeria’s oil sector, a vehicle for political patronage and graft. This year 16 companies were awarded contracts for the first phase of the clean-up, which — to the consternation of critics — focuses on the least contaminated parts of Ogoniland.

An investigation by the news site Premium Times found that almost all the companies were set up for other purposes, including poultry farming, car sales and construction, and had no experience of tackling oil pollution.  Meanwhile, insiders have questioned Hyprep’s capacity to handle such a massive project…

Shell and Hyprep have rejected the criticism.  Shell, which closed its Ogoniland operations in 1993, said it accepted responsibility “for spills arising from its operations”, but that some of the blame for the pollution must go to thieves who illegally tapped into pipelines and makeshift refining operations in the Delta’s creeks

Excerpts from Craft and Mismanagement Taint Nigeria’s Oil CleanUp, Financial Times, Dec. 29, 2019

How Sand Extraction Damages Ecosystems

The world uses nearly 50bn tonnes of sand and gravel a year—almost twice as much as a decade ago. No other natural resource is extracted and traded on such an epic scale, bar water. Demand is greatest in Asia, where cities are growing fast (sand is the biggest ingredient in concrete, asphalt and glass). China got through more cement between 2011 and 2013 than America did in the entire 20th century (the use of cement is highly correlated with that of sand).

Since the 1960s Singapore—the world’s largest importer of sand—has expanded its territory by almost a quarter, mainly by dumping it into the sea. The OECD thinks the construction industry’s demand for sand and gravel will double over the next 40 years. Little wonder then that the price of sand is rocketing. In Vietnam in 2017 it quadrupled in just one year.

In the popular imagination, sand is synonymous with limitlessness. In reality it is a scarce commodity, for which builders are now scrabbling. Not just any old grains will do. The United Arab Emirates is carpeted in dunes, but imports sand nonetheless because the kind buffeted by desert winds is too fine to be made into cement. Sand shaped by water is coarser and so binds better. Extraction from coastlines and rivers is therefore surging. But according to the United Nations Environment Programme (UNEP), Asians are scooping up sand faster than it can naturally replenish itself. In Indonesia some two dozen small islands have vanished since 2005. Vietnam expects to run out of sand this year.

All this has an environmental cost. Removing sand from riverbeds deprives fish of places to live, feed and spawn. It is thought to have contributed to the extinction of the Yangzi river dolphin. Moreover, according to WWF, a conservation group, as much as 90% of the sediment that once flowed through the Mekong, Yangzi and Ganges rivers is trapped behind dams or purloined by miners, thereby robbing their deltas both of the nutrients that make them fecund and of the replenishment that counters coastal erosion. As sea levels rise with climate change, saltwater is surging up rivers in Australia, Cambodia, Sri Lanka and Vietnam, among other places, and crop yields are falling in the areas affected. Vietnam’s agriculture ministry has warned that seawater may travel as far as 110km up the Mekong this winter. The last time that happened, in 2016, 1,600 square kilometres of land were ruined, resulting in losses of $237m. Locals have already reported seeing dead fish floating on the water.

 
Curbing sand-mining is difficult because so much of it is unregulated. Only about two-fifths of the sand extracted worldwide every year is thought to be traded legally, according to the Global Initiative Against Transnational Organised Crime. In Shanghai miners on the Yangzi evade the authorities by hacking transponders, which broadcast the positions of ships, and cloning their co-ordinates. It is preferable, of course, to co-opt officials. Ministers in several state governments in India have been accused of abetting or protecting illegal sand-mining. “Everybody has their finger in the pie,” says Sumaira Abdulali of Awaaz Foundation, a charity in Mumbai. She says she has been attacked twice for her efforts to stop the diggers.

Excerpts from Bring me a nightmare: Sand-Mining, Economist, Jan. 18, 2019

Viva Over-Fishing! Addicted to Over-Consumption of Fish

In 2015 world leaders signed up to a long list of sustainable development goals, among them an agreement to limit government subsidies that contribute to overfishing. Negotiators at the World Trade Organisation (wto) were told to finish the job “by 2020”. They have missed their deadline. Overfishing is a tragedy of the commons, with individuals and countries motivated by short-term self-interest to over-consume a limited resource. By one measure, the share of fish stocks being fished unsustainably has risen from 10% in 1974 to 33% in 2015.

Governments make things worse with an estimated $22bn of annual subsidies that increase capacity, including for gear, ice, fuel and boat-building. One study estimated that half of fishing operations in the high seas (waters outside any national jurisdiction) would be unprofitable without government support.

 Trade ministers were supposed to sort it all out at WTO meeting in December in Kazakhstan. But the meeting was postponed till June 2020. Moreover, the murky nature of subsidies for unregulated and unreported fishing makes their work unusually difficult. Governments do not have lines in their budget that say “subsidies for illegal fishing”, points out Alice Tipping of the International Institute for Sustainable Development, a think-tank.

Negotiators are trying to devise a system that would alert governments to offending boats, which would become ineligible for future subsidies. That is tangling them up in arguments about what to do when a boat is found in disputed territory, how to deal with frivolous accusations and how to treat boats that are not associated with any country offering subsidies.

When it comes to legal fishing of overfished stocks, it is easier to spot the subsidies in government budget lines, but no easier to agree on what to do about them. America and the European Union, for example, have been arguing over whether to allow subsidies up to a cap, or whether to ban some subsidies and take a lenient approach to the rest. The EU favours the second option, arguing that where fisheries are well-managed, subsidies are not harmful. To others this looks like an attempt to ensure any eventual deal has loopholes.

Further complicating matters is a long-running row about how to treat developing countries. All WTO members agree that some need special consideration. But as an American representative pointed out at a recent WTO meeting, 17 of the world’s 26 most prolific fishing countries are developing ones. That means broad carve-outs for them would seriously weaken any deal.

China, both the world’s biggest fisher and biggest subsidiser of fishing, has proposed capping subsidies in proportion to the number of people in each country who work in the industry. But it is the world leader here, too, with 10m at the last count (in 2016). Other countries fear such a rule would constrain China too little.

Excerpts from The World Trade Organization: What’s the Catch, Economist, Jan 4, 2020

Electronic Waste: The Death of Your Phone and the Duty to Resuscitate It

E-waste is the fastest-growing element of the world’s domestic waste stream, according to a 2017 report by the UN’s Global E-waste Monitor. Some 50m metric tonnes will be produced annually in 2020 — about 7kg for every person in the world. Just 20 per cent will be collected and recycled.  The rest is undocumented, meaning it likely ends up in landfill, incinerated, traded illegally or processed in a substandard way. That means hazardous substances spilling into the environment, poisoning the ground and people living nearby.

Heavy metals such as mercury, lead and cadmium — commonly found in LCD screens,  refrigerators and air-conditioning units — as well as chemicals such as CFCs and flame retardants  found in plastics can contaminate soil, pollute water and enter the food chain.  Research last year by Basel Action Network, an NGO, linked toxic e-waste shipped from Europe to  contaminated chicken eggs in Agbogbloshie — a Ghanaian scrapyard where 80,000 residents subsist by retrieving metals from electrical waste. Eating just one egg from a hen foraging in the scrapyard would exceed the European Food Safety Authority’s tolerable daily intake for chlorinated dioxins 220-fold.

Some appliances are more likely to be recycled than others. The recycling rate for big appliances, such as fridges and cookers, is about 80 per cent. That is because they are harder to dispose of and eventually get picked up, even when they are dumped by the kerb. Of small appliances, however,  barely one in five makes it to the recycling centre.  Across the world, governments are trying different ways to reduce e-waste and limit the amount that ends up in landfill.

For some time, EU countries have operated a one-for-one take-back system — which means that distributors need to take back, for free, an older version of any equipment they sell you. But since the rapid rise of online retailers, this has been harder to implement

In the end, all e-waste needs to be reduced to core metals. “It’s a bit like a mining activity.” In certain recycling  plants robots have been programmed to dismantle flatscreen TVs, extracting  precious metals such as cobalt or lithium, whose deposits are limited and increasingly valuable.  “One of the hardest things about recycling is that you are not sure how [the manufacturers] made  it.”   Companies are encouraged  to include this information on their devices. It could be a  file with instructions readable by robots that could then proceed with the dismantling, making the process “easier, cheaper and more circular”. However, manufacturers have so far kept a close guard on the design of their products.

Many pressure groups and lawmakers have concluded that improving recycling rates will not be  sufficient to tackle the global e-waste problem. Increasingly, they are advocating for the right to repair. In October 2019, the EU adopted a package of design measures to make household appliances more repairable.  Starting from March 2021, manufacturers selling certain household appliances will have to ensure  that spare parts are available for a number of years after their product has launched; that their  items can be easily disassembled (and so use screws not glue); and that they provide access to  technical information to repair professionals.

The rules cover appliances including refrigerators, washing machines, dishwashers and televisions.  But they do not extend to IT equipment such as laptops, tablets and mobile phones.  “The road to a new product is very easy, and the road to a successful repair very difficult,” says  Martine Postma, founder and director of Repair Café International Foundation, which celebrated  its 10th anniversary last year. Since its first repair event in Amsterdam in 2009, the organisation  has grown to nearly 2,000 repair groups in 35 countries around the world.  Now, it wants to collect more data about electronic gadgets, to see if it can plot “weak points” in  design that could help manufacturers make them more repairable.

Excerpts from Aleksandra Wisniewska, What happens to your old laptop? The growing problem of e-waste, http://wiki.ban.org, Jan. 10, 2020

When the Fish are Gone: As Bad as it Could Get in the Yangtze River

China imposed a 10-year commercial fishing ban in January 2020  on the Yangtze – the first ever for Asia’s longest river – in a bid to protect its aquatic life.  Facing dwindling fish stocks and declining biodiversity in the 6,300km (3,915-mile) river, the Chinese government decided seasonal moratoriums were not enough. The ban will be applied at 332 conservation sites along the river. It will be extended to cover the main river course and key tributaries by January 1 2021, according to a State Council notice.   Dam-building, pollution, overfishing, river transport and dredging had worsened the situation for the waterway’s aquatic species.  Fishermen using nets with smaller holes and illegal practices such as the use of explosives or electrocution have also contributed to the river’s decline

 President Xi Jinping warned that the Yangtze River had become so depleted that its biodiversity index was as bad as it could get, saying it had reached what could be described as the “no fish” level… Back in 1954, the annual catch from the Yangtze was about 427,000 tonnes, but in recent years it had been less than 100,000 tonnes.
According to an official estimate, about 280,000 fishermen in 10 provinces along the Yangtze River will be affected by the ban. Their 113,000 registered fishing boats will be grounded or destroyed. The government has allocated funds to help those affected find alternative work and provide them with welfare and retraining. To counter illegal fishing, he said river authorities would be equipped with speedboats, drones and video surveillance systems. Fishermen would also be recruited to patrol the river.

Excerpts from China bans fishing in depleted Yangtze River for 10 years to protect aquatic life, South China Morning Post, Jan. 3, 2020

Swept Under the Rug: Radioactive Dust and Brine in the Oil Industry

A salty substance called  “brine,” is  a naturally occurring waste product that gushes out of America’s oil-and-gas wells to the tune of nearly 1 trillion gallons a year, enough to flood Manhattan, almost shin-high, every single day. At most wells, far more brine is produced than oil or gas, as much as 10 times more. Brine collects in tanks, and workers pick it up and haul it off to treatment plants or injection wells, where it’s disposed of by being shot back into the earth

The Earth’s crust is in fact peppered with radioactive elements that concentrate deep underground in oil-and-gas-bearing layers. This radioactivity is often pulled to the surface when oil and gas is extracted — carried largely in the brine…

Radium, typically the most abundant radionuclide in brine, is often measured in picocuries per liter of substance and is so dangerous it’s subject to tight restrictions even at hazardous-waste sites. The most common isotopes are radium-226 and radium-228, and the Nuclear Regulatory Commission requires industrial discharges to remain below 60 for each. Some brine samples registered combined radium levels above 3,500, and one was more than 8,500. “It’s ridiculous that those who haul brine are not being told what’s in their trucks,” says John Stolz, Duquesne’s environmental-center director. “And this stuff is on every corner — it is in neighborhoods. Truckers don’t know they’re being exposed to radioactive waste, nor are they being provided with protective clothing.

“Breathing in this stuff and ingesting it are the worst types of exposure,” Stolz continues. “You are irradiating your tissues from the inside out.” The radioactive particles fired off by radium can be blocked by the skin, but radium readily attaches to dust, making it easy to accidentally inhale or ingest. Once inside the body, its insidious effects accumulate with each exposure. It is known as a “bone seeker” because it can be incorporated into the skeleton and cause bone cancers called sarcomas. It also decays into a series of other radioactive elements, called “daughters.” The first one for radium-226 is radon, a radioactive gas and the second-leading cause of lung cancer in the U.S. Radon has also been linked to chronic lymphocytic leukemia.

Oil fields across the country — from the Bakken in North Dakota to the Permian in Texas — have been found to produce brine that is highly radioactive. “All oil-field workers,” says Fairlie, “are radiation workers.” But they don’t necessarily know it.

The advent of the fracking boom in the early 2000s expanded the danger, saddling the industry with an even larger tidal wave of waste to dispose of, and creating new exposure risks as drilling moved into people’s backyards. “In the old days, wells weren’t really close to population centers. Now, there is no separation,” says City University of New York public-health expert Elizabeth Geltman. In the eastern U.S. “we are seeing astronomically more wells going up,” she says, “and we can drill closer to populations because regulations allow it.” As of 2016, fracking accounted for more than two-thirds of all new U.S. wells, according to the Energy Information Administration. There are about 1 million active oil-and-gas wells, across 33 states, with some of the biggest growth happening in the most radioactive formation — the Marcellus. …

There is little public awareness of this enormous waste stream, the disposal of which could present dangers at every step — from being transported along America’s highways in unmarked trucks; handled by workers who are often misinformed and underprotected; leaked into waterways; and stored in dumps that are not equipped to contain the toxicity. Brine has even been used in commercial products sold at hardware stores and is spread on local roads as a de-icer

But a set of recent legal cases argues a direct connection to occupational exposure can be made… Pipe cleaners, welders, roughnecks, roustabouts, derrickmen, and truck drivers hauling dirty pipes and sludge all were exposed to radioactivity without their knowledge and suffered a litany of lethal cancers. An analysis program developed by the Centers for Disease Control and Prevention determined with up to 99 percent certainty that the cancers came from exposure to radioactivity on the job, including inhaling dust and radioactivity accumulated on the workplace floor, known as “groundshine.”

“Almost all materials of interest and use to the petroleum industry contain measurable quantities of radionuclides,” states a never-publicly released 1982 report by the American Petroleum Institute, the industry’s principal trade group, passed to Rolling Stone by a former state regulator. Rolling Stone discovered a handful of other industry reports and articles that raised concerns about liability for workers’ health. A 1950 document from Shell Oil warned of a potential connection between radioactive substances and cancer of the “bone and bone marrow.” In a 1991 paper, scientists with Chevron said, “Issues such as risk to workers or the general public…must be addressed.”

“There is no one federal agency that specifically regulates the radioactivity brought to the surface by oil-and-gas development,” an EPA representative says. In fact, thanks to a single exemption the industry received from the EPA in 1980, the streams of waste generated at oil-and-gas wells — all of which could be radioactive and hazardous to humans — are not required to be handled as hazardous waste. In 1988, the EPA assessed the exemption — called the Bentsen and Bevill amendments, part of the Resource Conservation and Recovery Act — and claimed that “potential risk to human health and the environment were small,” even though the agency found concerning levels of lead, arsenic, barium, and uranium, and admitted that it did not assess many of the major potential risks. Instead, the report focused on the financial and regulatory burdens, determining that formally labeling the “billions of barrels of waste” as hazardous would “cause a severe economic impact on the industry.”…

There is a perception that because the radioactivity is naturally occurring it’s less harmful (the industry and regulators almost exclusively call oil-and-gas waste NORM — naturally occurring radioactive material, or TENORM for the “technologically enhanced” concentrations of radioactivity that accumulate in equipment like pipes and trucks.”…

In Pennsylvania, regulators revealed in 2012 that for at least six years one hauling company had been dumping brine into abandoned mine shafts. In 2014, Benedict Lupo, owner of a Youngstown, Ohio, company that hauled fracking waste, was sentenced to 28 months in prison for directing his employees to dump tens of thousands of gallons of brine into a storm drain that emptied into a creek that feeds into the Mahoning River. While large bodies of water like lakes and rivers can dilute radium, Penn State researchers have shown that in streams and creeks, radium can build up in sediment to levels that are hundreds of times more radioactive than the limit for topsoil at Superfund sites. Texas-based researcher Zac Hildenbrand has shown that brine also contains volatile organics such as the carcinogen benzene, heavy metals, and toxic levels of salt, while fracked brine contains a host of additional hazardous chemicals. “It is one of the most complex mixtures on the planet,” he says…

“There is nothing to remediate it with,” says Avner Vengosh, a Duke University geochemist. “The high radioactivity in the soil at some of these sites will stay forever.” Radium-226 has a half-life of 1,600 years. The level of uptake into agricultural crops grown in contaminated soil is unknown because it hasn’t been adequately studied.

“Not much research has been done on this,” says Bill Burgos, an environmental engineer at Penn State who co-authored a bombshell 2018 paper in Environmental Science & Technology that examined the health effects of applying oil-field brine to roads. Regulators defend the practice by pointing out that only brine from conventional wells is spread on roads, as opposed to fracked wells. But conventional-well brine can be every bit as radioactive, and Burgos’ paper found it contained not just radium, but cadmium, benzene, and arsenic, all known human carcinogens, along with lead, which can cause kidney and brain damage.

Brine as dust suppressant

Ohio, because of its geology, favorable regulations, and nearness to drilling hot spots in the Marcellus, has become a preferred location for injection wells. Pennsylvania has about a dozen wells; West Virginia has just over 50. Ohio has 225. About 95 percent of brine was disposed of through injection as of 2014. Government scientists have increasingly linked the practice to earthquakes, and the public has become more and more suspicious of the sites. Still, the relentless waste stream means new permits are issued all the time, and the industry is also hauling brine to treatment plants that attempt to remove the toxic and radioactive elements so the liquid can be used to frack new wells.

Excerpts from America’s Radioactive Secret, Rolling Stone Magazine, Jan. 21, 2020

Out-of-Fashion: Aggressive Tax Planning

In December 2019, Royal Dutch Shell voluntarily published its revenue, profit, taxes and other business details in each of 98 countries. The disclosure aligns with a drive by the energy company, which often attracts criticism from environmental activists, to present itself as forward-thinking, transparent and socially-minded.  That didn’t stop the information feeding a predictable host of headlines in the U.K., where the company is partly based, that it didn’t pay taxes in the country (because of losses carried forward and tax refunds). In the U.S., Shell accrued $137 million of tax—a rate of 8%.  This kind of detailed reporting is required by tax authorities in about 100 countries including the U.S. since 2017, based on rules agreed by the Organisation for Economic Cooperation and Development, but it is rarely made public.

Companies that don’t jump may soon be pushed. Economy ministers from European Union countries are considering a proposal that would require all large companies with total revenue of more than €750 million ($834 million) operating in the bloc to publish the information annually. The Global Reporting Initiative, an organization that establishes sustainability standards, recently agreed to include a similar requirement. Greater transparency could also spur reform efforts and reduce incentives for complex tax arrangements. Companies, investors and states all agree that it is best to find a global solution to the problem of aggressive tax planning.

Excerpts from Rochelle Toplensky, Beginning of the End of Tax Secrecy, WSJ, Dec. 20, 2019

The Severe Extent of Marine Pollution Crime

A global operation led by INTERPOL involving 61 countries and regional law enforcement partners has identified thousands of illicit activities behind severe marine pollution. Code-named 30 Days at Sea 2.0, the month-long (1-31 October, 2019) operation gathered more than 200 enforcement authorities worldwide for concerted action across all continents. Illustrating the severe global extent of marine pollution crime, preliminary operational results have already revealed more than 3,000 offences detected during 17,000 inspections. The offences – such as illegal discharges at sea, in rivers, or in coastal areas – were found to have been committed primarily to avoid the cost of compliance with environmental legislation.

The operation gathered more than 200 enforcement authorities worldwide, such as here in Bosnia and Herzegovina where officers inspect a company suspected of illegal discharge into local rivers
In Nigeria, INTERPOL’s National Central Bureau in Abuja coordinated the action of 18 authorities through a task force created to conduct inspections into illegal oil refineries, found responsible for severe oil leakages polluting the country’s waterways.   Information exchanged between Malaysia and The Netherlands permitted authorities to identify the source country of seven containers of plastic waste being illegally shipped into Malaysia from Belgium via Hong Kong, and to initiate their repatriation.

Marine pollution: thousands of serious offences exposed in global operation, Interpol Press Release, Dec. 16, 2019.

The Truth About Forest Fires

BBC has used satellite data to assess the severity of fires in Brazil, Indonesia, Siberia and Central Africa.  It has concluded that although fires in 2019 have wrought significant damage to the environment, they have been worse in the past.   More than 35,000 fires have been detected so far in 2019 in East Asia  spreading smoky haze to Malaysia, Singapore, the south of Thailand and the Philippines, causing a significant deterioration in air quality.  But this is substantially fewer than many other years including those, such as 2015, exacerbated by the El Nino effect which brought unusually dry weather.

Haze Pollution

In Indonesia, peatland is set alight by corporations and small-scale farmers to clear land for palm oil, pulp and paper plantations, and can spread into protected forested areas.  The problem has accelerated in recent years as more land has been cleared for expanding plantations for the lucrative palm oil trade.  Old palm trees on plantations that no longer bear fruit are often set on fire to be replaced by younger ones.

The number of recorded fires in Brazil rose significantly in 2019, but there were more in most years in the period 2002 to 2010.  There is a similar pattern for other areas of Brazilian forestry that are not part of the Amazon basin.  For 2019, we have data up to the end of August, and the overall area burnt for those eight months is 45,000 sq km. This has already surpassed all the area burnt in 2018, but appears unlikely to reach the peaks seen in the previous decade… “Fire signals an end of the deforestation process,” says Dr Michelle Kalamandeen, a tropical ecologist on the Amazon rainforest.  “Those large giant rainforest trees that we often associate with the Amazon are chopped down, left to dry and then fire is used as a tool for clearing the land to prepare for pasture, crops or even illegal mining.”

The environmental campaign group Greenpeace has called the fires that have engulfed the Russian region of Siberia this year one of the worst outbreaks this century.  The cloud of smoke generated was reported to have been the size of all the European Union countries combined.  Forest fires in Siberia are common in the summer, but record-breaking temperatures and strong winds have made the situation particularly bad.  Russia’s Federal Forestry Agency says more than 10 million hectares (100,000 sq km) have been affected since the start of 2019, already exceeding the total of 8.6 million for the whole of 2018…. Drawing on data for the number of fires, it is clear that there have been other bad years, notably in 2003.

Nasa satellites have identified thousands of fires in Angola, Zambia and DR Congo.However, these have not reached record levels.  “I don’t think there’s any evidence that the fires we’re seeing in Africa are worse than we’ve seen in recent years,” Denis McClean, of the UN Disaster Risk Reduction agency, told the BBC.  According to data analysed by Global Forest Watch, fires in DR Congo and Zambia are just above average for the season but have been higher in past years.  In Angola, however, fires have been reported at close to record levels this year.

Some have drawn comparisons with the situation in the Amazon, but the fires in sub-Saharan Africa are different.  Take DR Congo – most fires are being recorded in settled parts of the country’s southern, drier forest and savannah areas, and so far not in tropical rainforest.  Experts say it is difficult to know what is causing these fires, which are seasonal. Many are likely to be on grassland, woodland or savannah in poor farming communities.  “Fires are very important landscape management tools and are used to clear land for planting crops,” says Lauren Williams, a specialist in Central and West African forests at the World Resources Institute.

Excerpts from Jack Goodman & Olga RobinsonIndonesia haze: Are forest fires as bad as they seem?, BBC, Sept. 19, 2019. For more details and data see BBC

How to Manage Water Like Money and Fail: Australia

Australia’s Darling River…provided fresh water to farmers seeking to tame Australia’s rugged interior.  No longer. The Darling River hasn’t flowed for eight months, with long stretches completely dried up. A million fish died there in January 2019.  Kangaroos, lizards and birds became sick or died after drinking from toxic pools of stagnant water.  Australia’s water-trading market is drawing blame. The problems with the system, created more than a decade ago, have arisen as similar programs are being considered in the U.S.

Water crises are unfolding across the world as surging populations, industrial-scale farming and hotter temperatures deplete supplies.  Australia thought it had the answer: a cap-and-trade system that would create incentives to use water efficiently and effectively in the world’s driest inhabited continent. But the architects of water trading didn’t anticipate that treating water as a commodity would encourage theft and hoarding.   A report produced for a state resources regulator found the current situation on the Darling was caused by too much water being extracted from the river by a handful of big farmers. Just four license holders control 75% of the water extracted from the Barwon-Darling river system.

The national government, concerned that its water-trading experiment hasn’t turned out as intended, in August 2019 requested an inquiry by the country’s antitrust regulator into water trading.  Anticorruption authorities are investigating instances of possible fraud, water theft and deal making for water licenses. In one case, known as Watergate, a former agriculture minister allegedly oversaw the purchase of a water license at a record price from a Cayman Islands company co-founded by the current energy minister. The former agriculture minister said he was following departmental advice and had no role in determining the price or the vendor. The energy minister said he is no longer involved with the company and received no financial benefit from the deal.

Since 2007, Australia has allowed not only farmers but also investors who want to profit from trading to buy and sell water shares. The water market is now valued at some $20 billion.    But making water valuable had unintended consequences in some places. “Once you create something of real value, you should expect people to attempt to steal it and search for ways to cheat,” says Mike Young, a University of Adelaide professor. “It’s not rocket science. Manage water like money, and you are there.”  Big water users have stolen billions of liters of water from rivers and lakes, according to local media investigations and Australian officials, often by pumping it secretly and at night from remote locations that aren’t metered. A new water regulator set up in New South Wales investigated more than 300 tips of alleged water thefts in its first six months of operation.  In 2018, authorities charged a group of cotton farmers with stealing water, including one that pleaded guilty to pumping enough illegally to fill dozens of Olympic-size swimming pools.  Another problem is that water trading gives farmers an incentive to capture more rain and floodwater, and then hoard it, typically by building storage tanks or lining dirt ditches with concrete. That enables them to collect rain before it seeps into the earth or rivers.

The subsequent water shortages, combined with trading by dedicated water funds and corporate farmers, have driven up prices. Water in Australia’s main agricultural region, the Murray-Darling river basin, now trades at about $420 per megaliter, or one million liters, compared with as low as $7 in previous years.  David Littleproud, Australia’s water-resources minister, says 14% of water licenses are now owned by investors. “Is that really the intent of what we want this market to be?” he asks. “Water is a precious commodity.”

Excerpts from Rachel Pannett , The U.S. Wants to Adopt a Cap-and-Trade Plan for Water That Isn’t Working, WSJ, Sept. 4, 2019

The Biopiracy Backlash

Indonesia‘s rich biodiversity and complex geology have lured scientists from abroad for centuries. But a law adopted on 16 July 2019 by Indonesia’s parliament may convince some to go elsewhere. The legislation includes strict requirements on foreign scientists doing research in Indonesia, including the need to recruit local collaborators and a near-ban on exporting specimens, along with stiff sanctions, including jail time, for violators.

Muhammad Dimyati, director-general of research development at Indonesia’s Ministry of Research, Technology, and Higher Education (commonly known as RISTEK) in Jakarta, says the law is needed to protect Indonesia’s natural resources and develop the country’s research enterprise. But some Indonesian scientists fear the consequences. “Our international collaborations will be stifled,” says Berry Juliandi, a biologist at Bogor Agricultural University and secretary of the Indonesian Young Academy of Science. Indeed, marine biologist Philippe Borsa of the French Research Institute for Development in Montpellier says the law—and an increasingly unfriendly climate for foreign researchers—is a reason for him not to return to Indonesia, where he has studied the phylogeography of stingrays.

The new law also establishes the National Research Agency, a giant new institution that may subsume most government research centers, including the Indonesian Institute of Sciences (LIPI) in Jakarta. Details still need to be fleshed out, but some scientists worry the new agency will concentrate too much power in a few hands. The law’s most contentious provisions, however, are those that apply to foreign researchers.

From now on, their research has to be “beneficial for Indonesia.” They need to get ethical clearance from an Indonesian review board for every study, submit primary data and published papers to the government, involve Indonesian scientists as equal partners, and share any benefits, such as the proceeds from new drugs, resulting from the study. Researchers can’t take samples or even digital information out of the country, except for tests that cannot be done in Indonesian labs, and to do so, they need a so-called material transfer agreement (MTA) using a template provided by the government.

In most cases, violators will lose their research permit, but some offenses carry steeper penalties. Scientists who fail to obtain a proper permit will be blacklisted for 5 years; repeat offenders risk a $290,000 fine. Failure to comply with the MTA requirements is punishable by 2 years in prison or a $145,000 fine. ..Indonesia has become increasingly concerned about biopiracy.  In 2018,, for instance, a dispute erupted over a genetic study of Sulawesi’s “sea nomads”—an indigenous fishing group that appears to have evolved bigger spleens to store oxygenated blood during long dives. Indonesian researchers called it an example of Western “helicopter science.”. 

Megalara garuda

A 2017 document introducing the new law, signed by RISTEK Minister Mohamad Nasir, singled out another alleged example: the discovery of Megalara garuda, a giant venomous wasp, on Sulawesi, published in 2012 by entomologist Lynn Kimsey of the University of California (UC), Davis, along with a German researcher who found the same insect in a Berlin collection. LIPI entomologist Rosichon Ubaidillah tells Science that he and a junior colleague collected the wasps and that he suggested the name garuda—a mythical bird and national symbol of Indonesia—during a visit to UC Davis. But neither of them was a co-author on the paper; Ubaidillah was mentioned in an acknowledgement, his colleague not at all. Kimsey violated a memorandum of understanding between LIPI and UC Davis, he adds. LIPI, enraged, asked Kimsey to return the wasps she took home.

Excerpts from Dyna Rochmyaningsih, Indonesia gets tough on foreign scientists, Science, July 26, 2019

First Armed Attack on Amazon Rainforest in 30 Years

On Ju;ly 28, 2019, heavily armed gold miners invaded a remote indigenous reserve in northern Brazil and stabbed to death one of its leaders, officials say.  Residents of the village in Amapá state fled in fear and there were concerns violent clashes could erupt if they tried to reclaim the gold-rich land.  

Tensions in the Amazon region are on the rise as far-right President Jair Bolsonaro, who is against the reserves, vows to open some of them to mining.  Mr Bolsonaro says the indigenous territories are too big given the number of people living there, and critics accuse him of encouraging illegal mining and invasions of reserves.  The group of 10 to 15 heavily armed miners overran the village Yvytotõ of the Wajãpi community and “tensions were high”, according to Brazil’s indigenous rights agency, Funai. The residents fled to the Mariry village, some 40 minutes away by foot, and have been warned not to try to come into any contact with the invaders.

Based on accounts from the Wajãpi, Funai said the miners had killed 68-year-old Emyra Wajãpi, whose body was found with stab marks in a river near Mariry…”This is the first violent invasion in 30 years since the demarcation of the indigenous reserves in Amapá,” Senator Rodolfe Rodrigues told local newspaper Diário do Amapá (in Portuguese), warning of a “blood bath”…. Bolsonaro, who took office in January 2019, has promised to integrate indigenous people into the rest of the population and questioned the existence of their protected territories, which are rights guaranteed in the country’s Constitution.The president has also criticised the environmental protection agency, Ibama, and accused the national space institute, Inpe, of lying about the scale of deforestation in the Amazon.

Excerpts from Brazil’s indigenous people: Miners kill one in invasion of protected reserve, BBC,  July 28,  2019

The Sand Industry: Opaque, Illegal, Unsustainable

Malaysia, Singapore’s biggest source for sea sand, has banned the export of the commodity, according to officials in Kuala Lumpur, a move that traders said could complicate the island-state’s ambitious expansion plans on reclaimed land.  Those plans include the development of the Tuas mega port, slated to be the world’s biggest container terminal. Singapore has increased its land area by a quarter since independence in 1965, mostly by using sand to reclaim coastal areas.

Malaysian Prime Minister Mohamad Mahathir, who came to power in a shock election last year, imposed a ban on all sea sand exports on October 3, 2018… Endie Shazlie Akbar, Mahathir’s press secretary, confirmed that the government had put a stop to sand exports last year. However, he denied that it was aimed at curbing Singapore’s expansion plans, saying it was a move to clamp down on illegal sand smuggling….Two traders importing sand to Singapore, who both asked not to be named, said the commodity is becoming scarcer and driving Singapore to source sand from as far as India, which would push up costs. Shipping is the biggest single cost in acquiring sand.The traders added Singapore has been stockpiling sand in recent years which could provide a buffer against any immediate bottleneck in supplies.

The sand industry is opaque with no international price index, making it difficult to gauge the financial impact of a ban by Malaysia.  Sea sand is mostly used for land reclamation, while river sand is a core component in constructions materials like cement.

Singapore imported 59 million tonnes of sand from Malaysia in 2018, at a cost of $347 million, according to United Nations Comtrade data, which is based on information provided by individual countries’ customs offices. That accounted for 97% of Singapore’s total sand imports in the year by volume, and 95% of Malaysia’s global sand sales.The data does not distinguish between types of sand.  When Indonesia banned exports to Singapore in 2007, citing environmental concerns, it caused a “sand crisis” in the city-state that saw building activity almost come to a halt. Singapore has since bolstered its stockpiles.

Unsustainable sand dredging disrupts sediment flows and fishing grounds, destroying livelihoods and polluting water sources in some of the poorest communities in Asia.  But Singapore criticized Indonesia for allegedly using the ban as leverage in negotiations over an extradition treaty and border delineation.

River Dredging for Extraction of Sand

Excerpts from Fathin Ungku, Rozanna Latiff , Exclusive: In blow to Singapore’s expansion, Malaysia bans sea sand exports, Reuters, July 2, 2019

Hunting Down Polluters: Repairing the Ozone Layer

CFC-11 is also known as trichlorofluoromethane, and is one of a number of chloroflurocarbon (CFC) chemicals that were initially developed as refrigerants during the 1930s. However, it took many decades for scientists to discover that when CFCs break down in the atmosphere, they release chlorine atoms that are able to rapidly destroy the ozone layer which protects us from ultraviolet light. A gaping hole in the ozone layer over Antarctica was discovered in the mid 1980s.  The international community agreed the Montreal Protocol in 1987, which banned most of the offending chemicals. Recent research suggests that the hole in the Northern Hemisphere could be fully fixed by the 2030s and Antarctica by the 2060s.

CFC-11 was the second most abundant CFCs and was initially seen to be declining as expected.However in 2018 a team of researchers monitoring the atmosphere found that the rate of decline had slowed by about 50% after 2012.  Further detective work in China by the Environmental Investigation Agency in 2018 seemed to indicate that the country was indeed the source. They found that the illegal chemical was used in the majority of the polyurethane insulation produced by firms they contacted.One seller of CFC-11 estimated that 70% of China’s domestic sales used the illegal gas. The reason was quite simple – CFC-11 is better quality and much cheaper than the alternatives.

This new paper seems to confirm beyond any reasonable doubt that some 40-60% of the increase in emissions is coming from provinces in eastern China.  Using what are termed “top-down” measurements from air monitoring stations in South Korea and Japan, the researchers were able to show that since 2012 CFC-11 has increased from production sites in eastern China.They calculated that there was a 110% rise in emissions from these parts of China for the years 2014-2017 compared to the period between 2008-2012.

“If we look at these extra emissions that we’ve identified from eastern China, it equates to about 35 million tonnes of CO2 being emitted into the atmosphere every year, that’s equivalent to about 10% of UK emissions, or similar to the whole of London.”  The Chinese say they have already started to clamp down on production by what they term “rogue manufacturers”. In  November 2018, several suspects were arrested in Henan province, in possession of 30 tonnes of CFC-11.

Excerpts from Matt McGrath,  Ozone layer: Banned CFCs traced to China say scientists, BBC, May 22, 2019

How Companies Buy Social License: the ExxonMobil Example

The Mobil Foundation sought to use its tax-exempt grants to shape American laws and regulations on issues ranging from the climate crisis to toxic chemicals – with the explicit goal of benefiting Mobil, documents obtained by the Guardian newspaper show.  Recipients of Mobil Foundation grants included Ivy League universities, branches of the National Academies and well-known civic organizations and environmental researchers.  Benefits for Mobil included – in the foundation’s words – funding “a counterpoint to so-called ‘public interest’ groups”, helping Mobil obtain “early access” to scientific research, and offering the oil giant’s executives a forum to “challenge the US Environmental Protection Agency (EPA) behind-the-scenes”….

A third page reveals Mobil Foundation’s efforts to expand its audience inside environmental circles via a grant for the Environmental Law Institute, a half-century-old organization offering environmental law research and education to lawyers and judges.  “Institute publications are widely read in the environmental community and are helpful in communicating industry’s concerns to such organizations,” the entry says. “Mobil Foundation grants will enhance environmental organizations’ views of Mobil, enable us to reach through ELI activities many groups that we do not communicate with, and enable Mobil to participate in their dialogue groups.”

The documents also show Mobil Foundation closely examining the work of individual researchers at dozens of colleges and universities as they made their funding decisions, listing ways that foundation grants would help shape research interests to benefit Mobil, help the company recruit future employees, or help combat environmental and safety regulations that Mobil considered costly.  “It should be a wake-up call for university leaders, because what it says is that fossil fuel funding is not free,” said Geoffrey Supran, a postdoctoral researcher at Harvard and MIT.  “When you take it, you pay with your university’s social license,” Supran said. “You pay by helping facilitate these companies’ political and public relations tactics.”

In some cases, the foundation described how volunteer-staffed not-for-profits had saved Mobil money by doing work that would have otherwise been performed by Mobil’s paid staff, like cleaning birds coated in oil following a Mobil spill.  In 1987, the International Bird Rescue Research Center’s “rapid response and assistance to Mobil’s West Coast pipeline at a spill in Lebec, CA not only defused a potential public relations problem”, Mobil Foundation said, “but saved substantial costs by not requiring our department to fly cross country to respond”.d of trustees at the Woods Hole Oceanographic Institution (recipient of listed donations totalling over $200,000 from Mobil) and a part of UN efforts to study climate change.

Wise ultimately co-authored two UN Intergovernmental Panel on Climate Change reports, serving as a lead author on one. One report chapter Wise co-authored prominently recommended, among other things, burning natural gas (an ExxonMobil product) instead of coal as a way to combat climate change.

Excerpts from How Mobil pushed its oil agenda through ‘charitable giving’, Guardian, June 12, 2019

From Nuclear Powerhouse to Nuclear Mafia: South Korea

South Korea, which is roughly the size of Indiana, eventually became the most reactor-dense country in the world, with 23 reactors providing about 30% of the country’s total electricity generation…. South Korea’s reactors…are mostly packed into a narrow strip along the densely populated southeastern coast. The density was a way of cutting costs on administration and land acquisition. But putting reactors close to one another—and to large cities—was risky. … 

In December 2009, the UAE had awarded a coalition led by Korea Electric Power Corporation (KEPCO) a $20 billion bid to build the first nuclear power plant in the UAE. Barakah was chosen as the site to build four APR-1400nuclear reactors successively.  In 2012 to Park Geunhye the newly elected president pledged to increase South Korea’s reactor fleet to 39 units by 2035 and making sales trips to potential client states such as the Czech Republic and Saudi Arabia bulding on prior success like the UAE deal mentioned above. …


Barakah under construction in UAE

But on September 21, 2012, officials at Korea Hydro & Nuclear Power (KHNP), a subsidiary of the Korea Electric Power Corporation (KEPCO),  received an outside tip about illegal activity among the company’s parts suppliers. Eventually, an internal probe had become a full-blown criminal investigation. Prosecutors discovered that thousands of counterfeit parts had made their way into nuclear reactors across the South Korea, backed up with forged safety documents. KHNP insisted the reactors were still safe, but the question remained: was corner-cutting the real reason they were so cheap?

Park Jong-woon, a former manager who worked on reactors at KEPCO and KHNP until the early 2000s, believed so. He had seen that taking shortcuts was precisely how South Korea’s headline reactor, the APR1400, had been built…After the Chernobyl disaster in 1986, most reactor builders had tacked on a slew of new safety features.KHNP followed suit but later realized that the astronomical cost of these features would make the APR1400 much too expensive to attract foreign clients.“They eventually removed most of them,” says Park, who now teaches nuclear engineering at Dongguk University. “Only about 10% to 20% of the original safety additions were kept.”  Most significant was the decision to abandon adding an extra wall in the reactor containment building—a feature designed to increase protection against radiation in the event of an accident. “They packaged the APR1400 as ‘new’ and safer, but the so-called optimization was essentially a regression to older standards,” says Park. “Because there were so few design changes compared to previous models, [KHNP] was able to build so many of them so quickly.”

Having shed most of the costly additional safety features, KEPCO was able to dramatically undercut its competition in the UAE bid, a strategy that hadn’t gone unnoticed. After losing Barakah to KEPCO, Areva CEO Anne Lauvergeon likened the Korean nuclear plant to a car without airbags and seat belts. At the time Lauvergeon’s comments were dismissed as sour words from a struggling rival.

By the time it was completed in 2014, the KHNP inquiry had escalated into a far-reaching investigation of graft, collusion, and warranty forgery; in total, 68 people were sentenced and the courts dispensed a cumulative 253 years of jail time. Guilty parties included KHNP president Kim Jong-shin, a Kepco lifer, and President Lee Myung-bak’s close aide Park Young-joon, whom Kim had bribed in exchange for “favorable treatment” from the government.

Several faulty parts had also found their way into the UAE plants, angering Emirati officials. “It’s still creating a problem to this day,” Neilson-Sewell, the Canadian advisor to Barakah, told me. “They lost complete faith in the Korean supply chain.”

Excerpts from Max S. Kim,  How greed and corruption blew up South Korea’s nuclear industry, MIT Technology Review, April 22, 2019

5,000 Eyes in the Sky: environmental monitoring

The most advanced satellite to ever launch from Africa will soon be patrolling South Africa’s coastal waters to crack down on oil spills and illegal dumping.  Data from another satellite, this one collecting images from the Texas portion of a sprawling oil and gas region known as the Permian Basin, recently delivered shocking news: Operators there are burning off nearly twice as much natural gas as they’ve been reporting to state officials.

With some 5,000 satellites now orbiting our planet on any given day…. They will help create a constantly innovating industry that will revolutionize environmental monitoring of our planet and hold polluters accountable…

A recent study by Environmental Defense Fund focused on natural gas flares from the wells in the Permian Basin, located in Western Texas and southeastern New Mexico. Our analysis proved that the region’s pollution problem was much larger than companies had revealed.  A second study about offshore gas flaring in the Gulf of Mexico, published by a group of scientists in the Geophysical Research Letters, showed that operators there burn off a whopping 40% of the natural gas they produce.

Soon a new satellite will be launching that is specifically designed not just to locate, but accurately measure methane emissions from human-made sources, starting with the global oil and gas industry.  MethaneSAT, a new EDF affiliate unveiled in 2018, will launch a future where sensors in space will find and measure pollution that today goes undetected. This compact orbital platform will map and quantify methane emissions from oil and gas operations almost anywhere on the planet at least weekly.

Excerpts from Mark Brownstein, These pollution-spotting satellites are just a taste of what’s to come, EDF, Apr. 4, 2019

Satellites and Algorithms against Slaveholders

Brick kilns, tens of thousands across South Asia are often run on forced labor.  Satellite imagery of such kilns can help tally the kilns, enabling organizations on the ground to target slaveholders at the sites…

Some 40.3 million people are held in bondage today, according to the latest estimates from the International Labor Organization, headquartered in Geneva, Switzerland. But finding them is hard… Boyd who works for the Rights Lab estimates, however, that one-third of all slavery is visible from space, whether in the scars of kilns or illegal mines or the outlines of transient fish-processing camps.

Boyd is now using artificial intelligence to speed up the search. As a pilot project, she and her colleagues at the Rights Lab used crowdsourced visual searchers to identify brick kilns. The oval shape of the large ovens, sometimes 150 meters long, and their chimneys are distinctive, even from space. “You cannot mix them up with something else,” Boyd says.

Since then, Boyd has turned to machine-learning algorithms that recognize the kilns after being trained on the human-tagged examples. Last month, in the journal Remote Sensing, she and her colleagues reported that the algorithms could correctly identify 169 of 178 kilns in Google Earth data on one area of Rajasthan, although it also output nine false positives…

Another company, called Planet, has about 150 small satellites that snap images of the globe’s entire landmass daily. The images are lower-resolution than DigitalGlobe’s, but their frequency opens up opportunities to identify changes over time.With Planet data, Boyd and the Rights Lab plan to investigate fast moving signatures of slavery. From space, you can watch a  harvest in Turkmenistan and, based on how quickly the cotton disappears, you can tell whether machines or hands picked it. In the Sundarbans, an area spanning India and Bangladesh, shrimp farms and fish-processing camps employ slave labor to clear mangrove trees—a process satellites can capture.

Excerpts from Sarah Scoles, Researchers Spy Signs of Slavery from Space, Science, Feb. 21, 2018

How to Discover an Illegal Logger

Tropical forests nearly the size of India are set to be destroyed by 2050 if current trends continue causing species loss, displacement and a major increase in climate-changing greenhouse gas emissions.  Prior to the launch of the Global Land Analysis and Discovery (GLAD) alerts, researchers would have to manually track images of logging in specific areas.

The new process, developed by scientists at the University of Maryland and Google, uses an algorithm to analyze weekly updates of satellite images and sends automatic notifications about new logging activity.”This is a game changer,” said Matt Finer from the Amazon Conservation Association, an environmental group.

His organization tracks illegal logging in Peru, sending images of deforestation to policymakers, environmentalists and government officials to try and protect the Amazon rainforest.  In the past, he would rely on tips from local people about encroachment by loggers, then look at older satellite images to try and corroborate the claims.

“With this new data we can focus on getting actionable information to policy makers,” Finer told the Thomson Reuters Foundation.  “We have seen how powerful these images can be,” he said, citing a case where his group brought pictures of illegal gold miners cutting down trees to the Peruvian government, who then removed the miners.

Excerpt from  CHRIS ARSENAULT, New satellite program aims to cut down illegal logging in real time, Reuters, Mar. 2, 2016

Unwanted Fish: Another Waste

Long before fillets reach your dinner plate, lots of seafood is thrown away. Overboard, actually. As fishing crews sort through their catches, they toss unwanted fish back into the sea—as much as 20% of the global catch. The vast majority die. On 1 January, 2019 the wasteful practice became illegal in waters of the European Union. Scientists believe the policy will lead to more efficient fisheries and eventually boost stocks, while incentivizing more selective fishing gear and strategies. But in the short term it could mean hardship for the industry and perhaps even compromise fisheries data, if hidden cheating becomes widespread.

Few expect all fishing vessels to obey the discard ban. “Put yourself in the boots of a fishermen who can see he will run out of quota for a species. If he does, he would have to tie up for the rest of the year. He might have to sell the boat, or sell the house,” says Barrie Deas, CEO of the National Federation of Fishermen’s Organisations in York, U.K. “What’s he going to do?”  Scofflaws could jeopardize not just fish stocks, but also data about how they are faring. Researchers, who suggest catch levels to regulators, get their discard data largely from independent observers on just a few boats—less than 1% of the EU fleet. Observed boats are now likely to discard much fewer fish than other vessels, leaving an official undercount of the discard rate and a falsely rosy picture of how heavily stocks are fished, says Lisa Borges, a fisheries biologist who runs a consultancy called FishFix in Lisbon. “It could bring about a very big, negative change,” Borges says. “I get very worried about European fisheries management.”

Environmentalists want to toughen up enforcement by installing cameras on ships, the practice in New Zealand and a few other places with discard bans. But Voces de Onaindi says this is impractical on some vessels and raises privacy concerns. Countries where discard bans have succeeded, including Norway and Iceland, have gradually introduced incentives and controls to develop the economic use of unwanted fish and create a culture of regulatory compliance. Those steps, Andersen says, lessen conflict but can take decades to achieve.

Ships banned from throwing unwanted fish overboard
Erik Stokstad

How the Shipping Industry Gets its Way: pollution from ships

Do not give the regulated power over the regulators, unless you want consumers to lose out and producers to game the system. ..That lesson has been learned in many places around the world. National regulators are increasingly independent of the firms they regulate. But international ones still have further to go—and none further than the specialised agencies of the United Nations, such as the International Maritime Organisation (IMO) for shipping where the interests of the shipping industry are upheld d in several ways. The first is the distribution of voting rights between countries. At the IMO, for example, Panama and Liberia, with populations of just 4m and 4.8m respectively, can automatically get seats on its decision-making body as they have the world’s biggest merchant fleets.

The second is the assignment of those voting rights by individual countries. Remarkably, many governments have handed voting rights to private-sector firms… At the IMO least 17 countries have assigned their voting rights to flag registries operated by private firms, reckons Transparency International, an anti-corruption group; that adds up to about a tenth of delegates. At an IMO environmental-committee meeting in 2017, almost a third of countries were represented, at least in part, by business interests.

The third way in which producer interests are protected is through a spectacular lack of transparency. The agenda of the IMO’s council in November 2018 in London is available only to those with a password. Journalists are forbidden to report what delegates say or how they vote. There are no rules on the suitability or conflict of interests of delegates. In 2014 St Lucia appointed a Saudi billionaire without previous shipping experience as its IMO representative; a court in London judged in 2016 that the appointment was obtained in order to gain diplomatic immunity against divorce proceedings. There are no limits on the amount of gifts that can be showered on representatives. Goodies put on top of desks at an IMO assembly meeting last year were so heavy that they broke 137 sets of headphones underneath.

Such swampiness matters. The IMO is responsible for limiting emissions from ships, which were excluded from the Paris climate deal.   Some countries are interested in reform. At the imo council meeting this week Australia proposed allowing journalists to report on its meetings as a first step. The Marshall Islands has taken back some of its votes from the private firm that runs its flag registry. But more radical change is needed. Countries should send civil servants, not private actors, as their representatives. The un’s rules on conflicts of interest should be imposed. And voting rights should be allocated with the interests of consumers in mind. These lessons have been widely absorbed within borders. They ought to cross them, too

Excerpts from UN Regulatory Bodies: Agency Problems, Economist, Nov. 24, 2018, at 15

The 500 Cases of Marine Pollution

An international law enforcement operation against maritime pollution has revealed hundreds of violations and exposed serious cases of contamination worldwide.  Codenamed 30 Days at Sea, the month-long (1-31 October) operation saw some 276 law enforcement and environmental agencies across 58 countries detect more than 500 offences, including illegal discharges of oil and garbage from vessels, shipbreaking, breaches of ship emissions regulations, and pollution on rivers and land-based runoff to the sea.  More than 5200 inspections have resulted in at least 185 investigations, with arrests and prosecutions anticipated.

“Criminals believe marine pollution is a low-risk crime with no real victims.  This is a mistake and one which INTERPOL and our partners are addressing as demonstrated by this operation,” said INTERPOL Secretary General Jürgen Stock.  Cases of serious contamination included the dumping of animal farm waste in Philippine coastal waters where local communities collect shellfish and children play.  In Germany, a vessel discharged 600 litres of palm oil into the sea. Ghana uncovered gallons of waste oil in large bottles thought to be illegally dumped at sea.  Authorities prevented an environmental disaster in Albania by securing waters around a sinking vessel containing some 500 litres of oil. Similarly, the pollution threat resulting from the collision of two ships in French waters was contained thanks to preventive action during the operation.

Innovative technologies permitted authorities to detect offences, including the use of satellite images (in Argentina and Sweden), aerial surveillance (Canada and Italy), drones (Nigeria, Indonesia and Pakistan) and night vision cameras.

Excerpt from Marine pollution crime: first global multi-agency operation, Interpol Press Release, Nov. 13, 2018

 

Peruvian Amazon: Oil Pollution & Human Rights

On September 15, 2018 indigenous federations from the Amazonian Loreto region of northern Peru scored a small victory in the fight for community rights. Representatives from four federations signed an agreement with the Peruvian government and the state-owned enterprise PetroPerú that acknowledges prior consultation as part of the new contracting process for petroleum Block 192. Under the new agreement, Block 192 will undergo a community consultation process before PetroPerú awards a new contract for operating the oil field…

Under the formal resolution with Prime Minister César Villanueva, the Ministry of Energy and Mining, and PetroPerú, the government will complete the community consultation for Block 192 between December 2018 and March 2019.

Extending across the Tigre, Corrientes, Pastaza and Marañón river basins in Peru’s remote Loreto province, Block 192 is the largest-yielding oil field in Peru, accounting for 17 percent of the country’s production. The government plans to continue production of oil at the block for another 30 years, adding to the almost 50 years of oil activity in the region. The oil field is currently operated by Canadian-based Frontera Energy, whose contract with PetroPerú is set to expire in September 2019.

American-based Occidental Petroleum discovered oil in the region in 1972 and a succession of companies, including the Dutch-Argentinian conglomerate Pluspetrol, left Block 192 (previously Block 1-AB) heavily polluted. While Peru’s Agency for Environmental Assessment and Enforcement fined Pluspetrol for violations, the Peruvian government remains in a protracted legal fight with the oil giant. A majority of the fines are outstanding and Pluspetrol denies any wrongdoing, despite settling with a local community in 2015.

For over 40 years, the indigenous Kichwa, Quechua, Achuar, and Urarina peoples who live near the oil field have been exposed to salts, heavy metals and hydrocarbons. According to a 2018 toxicology study by Peru’s National Center for Occupational Health and Environmental Protection for Health, over half of the indigenous residents in the region’s four basins have blood lead levels that surpass international recommended limits. A third have levels of arsenic and mercury above the levels recommended by Peru’s Ministry of Health…

The actual cost of cleaning up Block 192, along with neighboring Block 8, would approach $1 billion. To make matters more challenging, the $15 million fund of Peruvian government is almost exhausted..”

Excepts from Andrew Bogrand, Righting the many wrongs at Peru’s polluted oil Block 192, Nov. 2, 2018

Stop it: Illegal, Unreported and Unregulated Fishing

Large ships are supposed, by international agreement, to be fitted with what is known as the Automatic Identification System (AIS), and to keep it on all the time. Arrangements for small ones vary from country to country, but most require some sort of beacon to be fitted to craft sailing in their waters.

The beacons’ main purpose is to avoid collisions. But monitoring them can also give away who is fishing nefariously, if you develop the software to sift through masses of location data looking for patterns. Beacon-watching has also helped identify hot spots for the transfer of catches at sea from IUU fishing boats to refrigerated cargo vessels, a practice which conceals the origin of a catch. Transshipment hotspots have been identified in this way off west Africa and Russia, and in the tropical Pacific. But beacons can be (and are) switched off.

Global Fishing Watch—a collaboration between Oceana, a conservation group, Google, a division of Alphabet, and Sky Truth, a charity that uses remote sensing to monitor environmental problems—has turned to America’s National Oceanic and Atmospheric Administration for help. NOAA has long collected satellite data on clouds. These are available to outsiders at no cost. The agency’s Visible Infrared Imaging Radiometer Suite consists of two sensors, each mounted on a different satellite. Between them, these sensors photograph the entire planet every 24 hours. Though their target is cloud cover, they can also see small, bright sources of light. Some of these give away the activities of fishermen. Many marine species are attracted to light, so it is common practice to shine floodlights into the water.

To find those illegals who do not so conveniently illuminate their activities Global Fishing Watch turns to satellite radar data. These are gathered mainly by private companies for sale to customers who want to do things like monitor the logging of forests. Global Fishing Watch, too, has to pay for them. Radar data have proved themselves useful, though. In 2016, for example, radar turned up a fleet of ships off the coast of Chile that had their AIS turned off…. The European Union’s Sentinel satellites now provide radar data free of charge. Global Fishing Watch is working on an automated vessel-detection system that uses these data.

Better detection would certainly help limit IUU fishing. The Port State Measures Agreement, introduced in 2016 and now ratified by 55 countries, is supposed to stop vessels engaged in such fishing from landing their catches. But ports can act against a vessel only if they know what it has been up to. The technology being developed by Global Fishing Watch makes it possible to report offenders quickly, thus giving port authorities time to act.

The future, moreover, looks brighter still—or dimmer, if you are an illicit fisherman. CubeSats, satellites the size of a loaf of bread, are lowering the cost of Earth observation.  making it feasible to track all boats continuously.

Excerpts from Netting the Crooks: Curbing Illegal Fishing, Economist,  Sept. 8, 2018

Running out of Beaches: sand miners and builders

For a place that depends on sun-and-sand-seeking tourists, Fort Lauderdale, Florida has a big problem: Its beaches are disappearing.  The Florida city has been fighting a defensive battle against nature for decades. The sand that lines its shores is constantly being swept out to sea by wind, waves and tides. In the natural course of things, that sand would be replenished by grains carried by the Atlantic’s southward-moving currents. That’s what used to happen. Today, however, so many marinas, jetties and breakwaters have been built along the Atlantic coast that the flow of incoming sand has been blocked. The natural erosion continues, but the natural replenishment does not.

For many years, Broward County, in which Fort Lauderdale sits, solved its vanishing-beach problem by replacing the sand with grains dredged up from the nearby ocean floor. Nearly 12 million cubic yards of underwater grains have been stripped off the sea bottom and thrown onto the county’s shores. But by now, virtually all of the accessible undersea sand has been used up.  The same goes for Miami Beach, Palm Beach and many other beach-dependent Florida towns. In fact, according to the state’s Department of Environmental Protection, nearly half of the state’s beaches have suffered “critical erosion.” Florida isn’t an anomaly. Beaches are disappearing all across America and around the world, from South Africa to Japan to Western Europe. A 2017 study by the U.S. Geological Survey warned that unless something is done, as much as two-thirds of Southern California’s beaches may be completely eroded by 2100…

Massive coastal development blocks the flow of ocean-borne sand. In many countries, including the U.S., river dams also cut off sand that used to feed beaches. The widespread practice of dredging up river sand to use for making concrete makes the problem worse. Researchers at the South African Institute of International Affairs believe that sand mining has slashed by one-third the flow of river sand that feeds the beaches of Durban, South Africa; and in the San Francisco Bay, environmentalists warn that massive sand dredging may be starving nearby beaches.

In some places, outlaw sand miners are hauling away the beach itself. In Morocco, Algeria, Russian-occupied Crimea and elsewhere, illegal miners have stripped entire beaches for construction sand, leaving behind rocky moonscapes. Smugglers in Malaysia, Indonesia and Cambodia load beach sand onto small barges in the night to sell in Singapore.

Having thwarted the natural processes that used to feed beaches, people are now replacing them with artificial ones. The easiest and cheapest method is to suck up grains from offshore and blast them onto the beach through massive pipes. But having run out of offshore sand, many towns in southern Florida are left with no choice but to dig their sand from inland quarries and haul it to the coast one roaring, diesel-spewing truck at a time. Tourists and locals hate the noise and traffic, and county officials hate the extra cost, which can be easily double that of dredged sand. Desperate officials are even talking about importing sand from the Bahamas.

The costs add up fast. The price of renourishing a beach can reach $10 million per mile. Broward County alone has spent more than $100 million replenishing its beaches in a multiyear project launched in 2015. More than a few places, such as Atlantic City, have already racked up tabs of well over $100 million by themselves. All told, nearly $9 billion has been spent in the U.S. in recent decades on artificially rebuilding hundreds of miles of beach, according to researchers at Western Carolina University. Florida accounted for about a quarter of the total. Almost all of the costs are covered by taxpayers.

Dredging up ocean sand clouds the water with stirred-up grains and muck. Suspended in the water, those particles can block life-giving sunlight from reaching coral reefs. And when the grains settle, they can suffocate the reefs and whatever creatures are living on them.  Moreover, beach sands are themselves home to a multitude of creatures. Besides the obvious ones—clams, crabs, birds, plants—they shelter all kinds of nematodes, flatworms, bacteria and other organisms so small that they live on the surface of individual sand grains. Despite their tiny size, these creatures play an important role in the ecosystem, breaking down organic matter and providing food for other creatures. Dumping thousands of tons of imported sand on top of these organisms can obliterate whole colonies of them.

Beaches are bulwarks that can protect lives and property from storms and rising seas in our climatically imperiled world….The U.S.’s densely populated eastern seaboard is already getting a taste of what that means. When Hurricane Sandy hit in 2012, it killed 159 people and damaged or destroyed at least 650,000 homes. The storm struckhardest in areas where beaches had eroded, leaving little or no buffer between cities and the raging wind and waves. On the other hand, according to the U.S. Army Corps of Engineers, renourished beaches in New York and New Jersey prevented an estimated $1.3 billion in damages that Sandy otherwise would have inflicted.

Excerpts from Vince Beiser, The Battle for our Beaches, Wall Street Journal, July 19, 2018

See also The World in a Grain

The Game-Changers: oil, gas and geothermal

The Democratic Republic of the Congo (DRC) has decided to degazette parts of two UNESCO World Heritage Sites to allow for oil drilling. Environmentalists have reacted sharply to the decision to open up Virunga and Salonga national parks – a move that is likely to jeopardise a regional treaty on the protection of Africa’s most biodiverse wildlife habitat and the endangered mountain gorilla…The two national parks are home to mountain gorillas, bonobos and other rare species. Salonga covers 33 350 km2 (3,350,000 ha)of the Congo Basin, the world’s second largest rainforest, and contains bonobos, forest elephants, dwarf chimpanzees and Congo peacocks….

On 7 April, 2018, a council of ministers from the DRC, Rwanda and Uganda agreed to ratify the Treaty on the Greater Virunga Transboundary Collaboration (GVTC) on Wildlife Conservation and Tourism Development. The inaugural ministerial meeting set the deadline for September 2018 to finalise the national processes needed to ratify the treaty.

The Virunga National Park (790,000 ha, 7 900 km2)is part of the 13 800 km2 (1 3800 00 ha) Greater Virunga Landscape, which straddles the eastern DRC, north-western Rwanda and south-western Uganda.  The area boasts three UNESCO World Heritage Sites – Virunga, Rwenzori Mountains National Park and Bwindi Impenetrable National Park. It also boasts a Ramsar Site (Lake George and Lake Edward) and a Man and Biosphere Reserve (in Queen Elizabeth National Park). It is the most species-rich landscape in the Albertine Rift – home to more vertebrate species and more endemic and endangered species than any other region in Africa.

According to the Greater Virunga Landscape 2016 annual report, the number of elephant carcasses recorded in 2016 was half the yearly average for the preceding five years. The report also mentions a high rate of prosecution and seizures. It cites a case study on Uganda’s Queen Elizabeth National Park where 282 suspects involved in poaching were prosecuted, with over 230 sentenced….The GVTC has also helped to ease tensions between the countries by providing a platform where their military forces can collaborate in a transparent way. ..

Armed groups have reportedly killed more than 130 rangers in the park since 1996. Militias often kill animals such as elephants, hippos and buffaloes in the park for both meat and ivory. Wildlife products are then trafficked from the DRC through Uganda or Rwanda. The profits fund the armed groups’ operations.

Over 80% of the Greater Virunga Landscape is covered by oil concessions and this makes it a target for state resource exploitation purely for economic gain.


2015: Until recently, in GVL, extraction of highly valued minerals such as gold and coltan, were largely artisanal. The recent discovery of oil, gas and geothermal potential, however, is a game-changer. Countries are now moving ahead in the exploration and production of oil and gas, which if not properly managed, is likely to result in major negative environmental (and social) changes. Extractive industries are managed under each GVL partner state policy guidelines and legislation. Concessions for these industries cover the whole of the GVL, including the World Heritage Sites as well as national protected areas . Since 2006, Uganda discovered commercial quantities of oil in the Albertine Graben and production in Murchison will begin within the next few years. The effect of the extractive industries, similar to and contributing to that of the increase in urbanization is the increased demand for bush meat, timber and fuel wood from the GVL.

Excertps from Duncan E Omondi Gumba, DRC prioritises oil over conservation, ISS Africa,  July 11, 2018//GREATER VIRUNGA LANDSCAPE
ANNUAL CONSERVATION STATUS REPORT 2015

 

An Unforgettable Type of Pollution

May 2018: The environmental damage around the site of two Royal Dutch Shell oil spills in Nigeria a decade ago has worsened significantly after years of delay to cleanup efforts, according to a report that the oil giant has been accused of trying to shield from public view.  The spills from a ruptured Shell pipeline spewed thousands of barrels of oil over parts of the Bodo fishing community in the crude-rich Niger Delta. Although the company in 2015 reached an out-of-court settlement with the local community, admitting to liability and agreeing to pay £55 million, or around $80 million at the time, in compensation, controversy around the case has remained.

A United Nations body, in a 2011 report, found extensive environmental damage around Bodo. Four years later, an assessment to prepare the cleanup found soil contamination had worsened while cleanup efforts languished and illegal refining and oil theft added to pollution in the area, according to an academic paper published last month. That has left the community facing potentially toxic pollution and “catastrophic” damage to the environment, the paper said.  The 2015 analysis was commissioned by the Bodo Mediation Initiative, a consortium established to oversee the cleanup in the area. Shell is a member of the group along with local stakeholders.

At least one of the authors urged the findings to be widely distributed because they pointed to significant health risks to the local community. Kay Holtzmann, the cleanup project’s former director, said in a letter reviewed by the Journal that Shell had denied him permission to publish the study’s results in a scientific journal.

But the academic paper* said the site survey contained new facts. The average surface soil contamination in Bodo had tripled since the original U.N. probe,the paper said. Out of 32 samples taken from the top two inches of soil in the area around Bodo, only one was within Nigeria’s legally acceptable limit for oil contamination, the paper added.

Excerpts from Pollution Worsens Around Shell Oil Spills in Nigeria, Wall Street Journal, May 26, 2018.

*Sediment Hydrocarbons in Former Mangrove Areas, Southern Ogoniland, Eastern Niger Delta, Nigeria, Apr. 2018

A Slow-Burning Tragedy

Charcoal is one of the biggest informal businesses in Africa. It is the fuel of choice for the continent’s fast-growing urban poor, who, in the absence of electricity or gas, use it to cook and heat water. According to the UN, Africa accounted for three-fifths of the world’s production in 2012—and this is the only region where the business is growing. It is, however, a slow-burning environmental disaster.

In Nyakweri forest, Kenya, the trees are ancient and rare. Samwel Naikada, a local activist, points at a blackened stump in a clearing cut by burners. It is perhaps 400 years old, he says. The effect of burning trees spreads far. During the dry season, the forest is a refuge for amorous elephants who come in from the plains nearby to breed. The trees store water, which is useful in such a parched region. It not only keeps the Mara river flowing—a draw for the tourists who provide most of the county government’s revenue. It also allows the Masai people to graze their cows and grow crops. “You cannot separate the Masai Mara and this forest,” says Mr Naikada….

Nyakweri is hardly the only forest at risk. The Mau forest, Kenya’s largest, which lies farther north in the Rift Valley, has also been hit by illegal logging. Protests against charcoal traders (!) broke out earlier this year, after rivers that usually flow throughout the dry season started to run dry. In late February a trader’s car was reportedly burned in Mwingi, in central Kenya, by a group of youngsters who demanded to see the trader’s permits. At the end of February 2018 the government announced an emergency 90-day ban on all logging, driving up retail prices of charcoal by 500%, to as much as 5,000 shillings a bag in some cities.

The problems caused by the charcoal trade have spread beyond Kenya. In southern Somalia, al-Shabab, a jihadist group, funds itself partly through the taxes it levies on the sale of charcoal (sometimes with the help of Kenyan soldiers, who take bribes for allowing the shipments out of a Somali port that Kenya controls). The logging also adds to desertification, which, in turn, causes conflict across the Sahel, an arid belt below the Sahara. It forces nomadic herders to range farther south with their animals, where they often clash with farmers over the most fertile land.

In the power vacuum of the eastern Democratic Republic of Congo, rampant charcoal logging has destroyed huge swathes of Virunga National Park. That threatens the rare gorillas which tourists currently pay as much as $400 a day to view, even as it fuels the conflict.

In theory, charcoal burning need not be so destructive. In Kenya the burners are meant to get a licence. To do so, they have to show they are replacing the trees they are cutting down and that they are using modern kilns that convert the trees efficiently into fuel. But, admits Clement Ngoriareng, an official at the Kenya Forest Service (KFS), the rules are laxly enforced. Some suspect that powerful politicians stymie efforts to police burners.

Excerpts from A Very Black Market: Illegal Charcoal, Economist, Mar. 31, 2018

Well blowouts and Pipeline breakdowns: Who Profits?

The global oil spill management market size is projected to grow beyond USD 125.62 billion by 2024. Growing incidents of oil spilling in the past along with severe safety and environmental policies are likely to propel the market over the forecast phase (2016-2024). Also, escalating pipeline and seaborne shipping of crude oil and chemicals could positively impact the market further.  The market is fragmented by technologies, techniques, applications, and regions. Technologies are Pre-oil spill and Post-oil spill. Pre-oil spill segment is divided into double-hull, pipeline, leak detection, blow-out preventers, and others. Double-hulling was the dominant segment in 2015 with highest shares.

Marine trade registers for a majority of petroleum products and natural gas transportation. Mounting demand for crude and petroleum products oil in Europe and Asia Pacific will boost the maritime trade growth further. Post-oil spill segments are mechanical, chemical, biological, and physical. Chemical and mechanical containment and recovery are the techniques used in the industry….In 2015, onshore post-oil spill sector was valued close to 60% of the total market demand. Regions such as Norway, U.S, Mexico, Canada, U.S., China, and Nigeria have observed well blowouts and occurrences of pipeline breakdowns. This could be accredited to huge market diffusion in past

Main regions in the market encompass North America, Europe, Asia Pacific, the Middle East and Africa (MEA), and Central & South America. North America was the leading market for pre-oil spill management. It was estimated at 40.1% of total demand in 2015. This region will potentially face lucrative demand due to production activities and increasing oil & gas discovery. Pre-oil spill management shares in Asia Pacific will gain over USD 21,540 million by 2024…  Top companies in the global oil spill management market include OMI Environmental Solutions, Skim Oil Inc., American Green Ventures Inc., and Spill Response Services.

Excerpts from Global Oil Spill Management Market Size is Projected to Grow Beyond USD 125.62 Billion by 2024, Hexa Research Press Release, Mar. 17, 2018

Cleansing the Oil Tanker

The oil spill that hit the Fujairah coast on January 25, 2018 was the result of tankers illegally cleaning out their holds.  That is according to the general manager of Fujairah port (UAE), Capt Mousa Murad, who has called for 24-hour monitoring of ships to tackle the issue.  “The recent oil spills have been caused by tank cleaning by passing ships,” Capt Murad told The National on Tuesday.  “Especially when tankers change from [carrying] one product to another,” he said, implying that the spills are made up of residue cleaned from within the tanks.  He said the oil “comes from international waters and could hit Dibba, Fujairah or Khor Fakkan.”…

TankerTrackers.com, a pro-bono website that monitors the flow of oil at sea and investigates oil spills, previously suggested that January’s spill was caused by a ship-to-ship transfer.Ship-to-ship transfers happen when a smaller vessel supplies a larger one with oil and spills from overflow can happen through negligence or by accident.

Excerpts from Fujairah oil spill caused by tankers ‘illegally cleaning their holds’ , The National UAE Edition, Feb. 14, 2018

Fish Poachers in Africa

In Sierra Leone nearly half the population does not have enough to eat, and fish make up most of what little protein people get. But the country’s once-plentiful shoals, combined with its weak government, have lured a flotilla of unscrupulous foreign trawlers to its waters. Most of the trawlers fly Chinese flags, though dozens also sail from South Korea, Italy, Guinea and Russia. Their combined catch is pushing Sierra Leone’s fisheries to the brink of collapse.

Sierra Leone is not alone in facing this crisis. According to the UN’s Food and Agriculture Organisation, 90% of the world’s fisheries are dangerously overexploited. The Africa Centre for Strategic Studies, a think-tank funded by America’s defence department, reckons that about a quarter of fish caught off Africa’s shores are taken illegally.

Excerpt from Poachers afloat: Why Sierra Leone is running out of fish, Economist, Dec. 16, 2017

Mishandling Nuclear Materials: who is to blame

Plutonium capable of being used in a nuclear weapon, conventional explosives, and highly toxic chemicals have been improperly packaged or shipped by nuclear weapons contractors at least 25 times from 2012 to 2107 according to government documents.While the materials were not ultimately lost, the documents reveal repeated instances in which hazardous substances vital to making nuclear bombs and their components were mislabeled before shipment. That means those transporting and receiving them were not warned of the safety risks and did not take required precautions to protect themselves or the public, the reports say.

The risks were discovered after regulators conducted inspections during transit, when the packages were opened at their destinations, during scientific analysis after the items were removed from packaging, or – in the worst cases – after releases of radioactive contaminants by unwary recipients, the Center for Public Integrity’s investigation showed.  Only a few, slight penalties appear to have been imposed for these mistakes.

In the most recent such instance, Los Alamos National Laboratory – a privately-run, government-owned nuclear weapons lab in New Mexico – admitted five weeks ago that in June 2017  it had improperly shipped unstable, radioactive plutonium in three containers to two other government-owned labs via FedEx cargo planes, instead of complying with federal regulations that required using trucks to limit the risk of an accident… According to the initial explanation Los Alamos filed with the government on June 23, 2017 the lab used air transport because one of the other labs – located in Livermore, California ― needed the plutonium urgently.

The incident – which came to light after a series of revelations by the Center for Public Integrity about other safety lapses at Los Alamos ― drew swift condemnation by officials at the National Nuclear Security Administration in Washington, D.C., which oversees U.S. nuclear weapons work. It provoked the Energy Department to order a three-week halt to all shipments in and out of Los Alamos, the largest of the nuclear weapons labs and a linchpin in the complex of privately-run facilities that sustains America’s nuclear arsenal.

In total, 11 of the 25 known shipping mistakes since July 2012 involved shipments that either originated at Los Alamos or passed through the lab. Thirteen of the 25 incidents involved plutonium, highly-enriched uranium (another nuclear explosive), or other radioactive materials. Some of the mislabeled shipments went to toxic waste dumps and breached regulatory limits on what the dumps were allowed to accept, according to the reports.

The Nuclear Regulatory Commission, which arguably has more experience with the handling and transport of radioactive materials than any other government entity, has no jurisdiction over nuclear weapons-related work by the National Nuclear Security Administration (NNSA) or its contractors. Instead, the Energy Department (of which the NNSA is a semi-autonomous part) regulates all the sites on its own, as well as the contractors that manage them.

Excerpts from Patrick Malone, Nuclear weapons contractors repeatedly violate shipping rules for dangerous materials, Center for Public Integrity, Aug. 1, 2017

Ecological Hooliganism: smashing the coral triangle

Giant clams are one of Buddhism’s “seven treasures”, along with gold and lapis lazuli. China’s new rich prize their shells as showy ornaments. Each can fetch as much as $3,000, so each haul was worth a fortune to the fishermen of Tanmen, a little fishing port on the island province of Hainan in Southern China.  But Chinese government banned the clam fishing…
The ban is surely welcome. [S]ome of the most biodiverse coral reefs on Earth have been destroyed in the South China Sea thanks to giant-clam poachers. In the shallow waters of the reefs, crews use the propellers of small boats launched from each mother-ship to smash the surrounding coral and thus free the clams anchored fast to the reef. Though the practice has received little attention, it is ecological hooliganism, and most of it has been perpetrated by boats from Tanmen.

The fishermen have not been the reefs’ only adversaries. China’s huge and (to its neighbours) controversial programme since late 2013 of building artificial islands around disputed rocks and reefs in the South China Sea has paved over another 22 square miles of coral. When the two activities are taken together, Mr McManus says, about 10% of the reefs in the vast Spratly archipelago to the south of Hainan, and 8% of those in the Paracel islands, between Hainan and Vietnam, have been destroyed. Given that Asia’s Coral Triangle, of which the South China Sea forms the apex, is a single, interconnected ecosystem, the repercussions of these activities, environmentalists say, will be huge…

But still..A few streets back from the waterfront in Tanmen, elegant boutiques sell jewellery and curios fashioned from the giant clams—and clam shells are still stacked outside. And the provincial money that is so clearly being lavished on Tanmen sits oddly with the illegality of its townsfolk’s way of life. .. [I] n 2013 President Xi Jinping himself showed up in Tanmen. Boarding one of the trawlers he declared to the crew, according to state media, “You guys do a great job!” The media did not report that a year earlier the trawler in question had been caught in the territorial waters of Palau, and in the confrontation with local police that followed one of the crew members had been shot dead. In Chinese propaganda, Tanmen’s fishermen are patriots and model workers.

Over the years Tanmen’s fishermen have become part of China’s power projection in the South China Sea, an unofficial but vital adjunct to the Chinese navy and coastguard. The biggest trawlers are organised into a maritime militia ready to fight a “people’s war” at sea. Though generally unarmed, they undergo training and take orders from the navy.

They are facts on the water, and have been involved in China’s growing aggression in the South China Sea. In 2012 boats from Tanmen were part of a navy-led operation to wrest control of Scarborough Shoal from the Philippines, chasing Philippine fishing vessels away. In 2014 they escorted a Chinese oil rig that was being towed provocatively into Vietnamese waters. On land, Vietnamese expressed their rage by ransacking factories they thought were Chinese-owned. At sea, boats from Tanmen rammed and sank one of the rickety Vietnamese vessels coming out to protest.

Mysteriously, though, the giant trawlers of the Tanmen militia are now rafted up, their crews sent home. Perhaps China is keen to lower tensions in the region….A policy introduced in January aims to cut the catch from China’s fishing fleet, the world’s largest, by a sixth, in the name of sustainability. That will hit Tanmen’s fishermen hard, making them less willing to defend China’s claims. Francis Drake would have understood: pirates are patriotic, but usually only when it pays.

Excerpts from Clamshell Phoneys, Economist, Mar. 25, 2017

Deforestation and Supply Chains

366 companies, worth $2.9 trillion, have committed to eliminating deforestation from their supply chains, according to the organization Supply Change. Groups such as the Tropical Forest Alliance 2020, the Consumer Goods Forum and Banking Environment Initiative aim to help them achieve these goals.  Around 70 percent of the world’s deforestation still occurs as a result of production of palm oil, soy, beef, cocoa and other agricultural commodities. These are complex supply chains.  A global company like Cargill, for example, sources tropical palm, soy and cocoa from almost 2,000 mills and silos, relying on hundreds of thousands of farmers. Also, many products are traded on spot markets, so supply chains can change on a daily basis. Such scale and complexity make it difficult for global corporations to trace individual suppliers and root out bad actors from supply chains.

Global Forest Watch (GFW), a WRI-convened partnership that uses satellites and algorithms to track tree cover loss in near-real time, is one example. Any individual with a cell phone and internet connection can now check if an area of forest as small as a soccer penalty box was cleared anywhere in the world since 2001. GFW is already working with companies like Mars, Unilever, Cargill and Mondelēz in order to assess deforestation risks in an area of land the size of Mexico.

Other companies are also employing technological advances to track and reduce deforestation. Walmart, Carrefour and McDonalds have been working together with their main beef suppliers to map forests around farms in the Amazon in order to identify risks and implement and monitor changes. Banco do Brasil and Rabobank are mapping the locations of their clients with a mobile-based application in order to comply with local legal requirements and corporate commitments. And Trase, a web tool, publicizes companies’ soy-sourcing areas by analyzing enormous amounts of available datasets, exposing the deforestation risks in those supply chains…

[C]ompanies need to incorporate the issue into their core business strategies by monitoring deforestation consistently – the same way they would track stock markets.

With those challenges in mind, WRI and a partnership of major traders, retailers, food processors, financial institutions and NGOs are building the go-to global decision-support system for monitoring and managing land-related sustainability performance, with a focus on deforestation commitments. Early partners include Bunge, Cargill, Walmart, Carrefour, Mars, Mondelēz, the Inter-American Investment Corporation, the Nature Conservancy, Rainforest Alliance and more.  Using the platform, a company will be able to plot the location of thousands of mills, farms or municipalities; access alerts and dashboards to track issues such as tree cover loss and fires occurring in those areas; and then take action. Similarly, a bank will be able to map the evolution of deforestation risk across its whole portfolio. This is information that investors are increasingly demanding.

Excerpt from Save the Forests? There’s Now an App for That, World Resources Institute, Jan. 18, 2017

Forest Fires and Haze

In 2015 a dry spell caused by the El Niño weather pattern made Indonesia’s forest fires especially severe. Smoke settled over Singapore for months and even reached Cambodia, Vietnam and the Philippines. At least 2m hectares of forest were burned. Dozens of people were killed and hundreds of thousands sickened. For much of October 2015 greenhouse gases released by those fires exceeded the emissions of the entire American economy. The losses over five months of fires amounted to around 2% of the country’s GDP…[The event has labeled  the 2015 Southeast Asian haze]

Between 2001 and 2014, Indonesia lost 18.5m hectares of tree cover—an area more than twice the size of Ireland. In 2014 Indonesia overtook Brazil to become the world’s biggest deforester.

One of the reasons for those forest fires is economic. The country produces well over half the world’s palm oil, a commodity used in cooking and cosmetics, as a food additive and as a biofuel. It accounts for around 4.5% of Indonesia’s GDP, and demand is still rising. To meet it, Indonesian farmers set fires to clear forest and make way for new plantations. Often these forests grow on peatlands, which store carbon from decayed organic matter; in tropical regions these hold up to ten times as much carbon as surface soil. Draining peatlands releases all of that carbon. The peat also becomes a fuel, so it is not just felled trees that are burning but the ground itself.

But politics also plays a part. … The president declared a moratorium on peatland-development licences and called for peat forests to be restored, even as his agriculture minister pointed out that burned peatland can be used for corn and soyabean planting….

Civil-society groups have had some success. At least 188 Indonesian palm-oil companies have made some sort of sustainability pledge, including five large multinational firms that in 2014 signed the Indonesian Palm Oil Pledge (IPOP), which commits them to avoiding deforestation and planting oil palms on peatland. Together those five firms account for 80% of Indonesia’s palm-oil exports.All the same, deforestation continues. Perversely, it may even have increased temporarily, as companies cleared as much land as they could before the agreement took effect. Besides, opaque supply chains allow companies to buy palm oil from suppliers not bound by IPOP.

Forests: A world on fire, Economist Special Report on Indonesia, Feb. 27, 2016

Illegal Waste Gangs: the case of ENI

Italian prosecutors on August 12, 2016, agreed to release energy giant ENI’s Centro Oli oil treatment plant from court-ordered seizure. The plant near the town of Viggiano in the Agri Valley in the southern Basilicata region was seized on March 31. 2016  in a probe that resulted in ex industry minister Federica Gudi resigning amid conflict-of-interest claims. It treated some 75,000 barrels of oil a day, before two tanks and a reinjection well were seized.

State-controlled ENI, nine other companies, and 60 individuals have been investigated for illegal waste trafficking in the southern Basilicata region,..The 70 subjects were notified that the investigation has ended, in Italy usually a prelude to indictment.

Prosecutors say ENI reaped millions in “unjust profits” from illegally dumping waste from its Viggiano plant. As well, the probe found irregularities in the construction of Total’s Tempa Rossa oil centre between Corleto Perticara near Potenza and Gorgoglione near Matera.

Former Total chiefs as well as various businessmen and officials were sentenced to terms ranging from two to seven years in prison on April 4, 2016.  The current suspects include former Corleto Perticara mayor Rosaria Vicino from Premier Matteo Renzi’s Democratic Party (PD), former Basilicata environmental department chief Donato Viggiano, former ENI southern region exec Ruggero Gheller, his current replacement Enrico Trovato, and five ENI staffers who have been under house arrest since March 31.
ENI earlier defended its Viggiano plant operations….

Excerpts from : Prosecutors OK freeing of ENI oil plant (2), Basilicata plant seized in waste trafficking probe,  ANSA, Aug. 5, 2016

Deep Horizon Oil Spill: final settlement

U.S. District Judge Carl Barbier in New Orleans gave his final approval April 4, 2016 to an estimated $20 billion settlement over BP’s massive 2010 oil spill. On July 2015, BP reached the $20 billion settlement with the federal government and five gulf states. The Justice Department has called it the largest environmental settlement in U.S. history as well as the largest-ever civil settlement with a single entity.  Barbier presided over a multiphase trial for the spill litigation before last summer’s settlement agreement resolved the bulk of the remaining civil claims against BP. The judge heard testimony from rig workers who survived the blast and from company executives who worked on the ill-fated drilling project off Louisiana’s coast. Barbier set the stage for the settlement when he ruled BP acted with “gross negligencein the disaster….

In addition BP pleaded guilty in 2013 to manslaughter for the rig workers’ deaths and agreed to pay a record $4 billion in criminal fines and penalties.

In BP reached a multibillion-dollar settlement agreement with businesses and residents who claim the spill cost them money. That deal didn’t have a cap***, and a court-supervised claims administrator is still processing many of the claims.

***There is no limit on the total dollar amount of the Settlement, but BP will pay no more than $2.3 billion to compensate qualified claimants who are in the Seafood Compensation Program.

While BP has estimated that the total costs of the Settlement will be approximately $7.8 billion, there is no limit on the total amount of the Settlement (with the exception of the Seafood Compensation Program). The actual total amount paid out will depend on the number of qualified claims made, and could be higher or lower than BP’s estimate.***

Excerpts from Judge approves $20 billion settlement in gulf oil spill, Associated Press, April 4, 2016

Fishermen + Farmers Against Shell

Tens of thousands of Nigerian fishermen and farmers are suing multinational oil giant Shell in two new lawsuits filed on March 2, 2016 in a British High Court, alleging that decades of uncleaned oil spills have destroyed their lives.  London law firm Leigh Day & Co. is representing them after winning an unprecedented $83.5 million in damages from Shell in a landmark ruling by the same court last year. Shell originally offered villagers $50,000.

In a statement on March 2, 2016 before the trial opened, Shell blamed sabotage and oil theft for the ongoing pollution and noted it had halted oil production in 1993 in Ogoniland, the area where the two communities are located in Nigeria’s oil-rich southern Niger Delta.  Shell said it will challenge the jurisdiction of the British court.

The Ogoni are among the most traumatized of millions of Nigerians suffering oil pollution since the late 1950s….

Excerpts from  MICHELLE FAUL, Nigerians sue Shell in UK court for oil spills contamination, Associated Press, Mar. 2, 2016

Why Illegal Logging Persists

The European Union (EU) adopted in 2010 Regulation (EU) No 995/2010 laying down the obligations of operators who place timber and timber products on the market (the Timber Regulation,, as part of the implementation of the Action Plan on Forest Law Enforcement, Governance and Trade……[The EU adopted the Regulation because] llegal logging is a pervasive problem of major international concern. It has a devastating impact on some of the world’s most valuable remaining forests as well as on the people who live in them and who rely on the resources that forests provide. It contributes to tropical deforestation and forest degradation, which may be responsible for 7 to 14%3 of total CO2 emissions from human activities; it threatens biodiversity and undermines sustainable forest management and has a negative impact on poverty reduction…..

The following major challenges to the effective application of the Timber Regulation have been identified in the evaluation process: insufficient human and financial resources allocated to the [authorities dealing with implementation], varying types and level of sanctions across EU states and a lack of uniform understanding and application of the Regulation throughout the EU. Those challenges have translated into uneven enforcement, which creates a non-level playing field for economic operators….

In order to address the shortcomings identified, EU states should significantly step up their implementation and enforcement efforts. The current level of technical capacity and resources (both human and financial) allocated to the [authorities dealing with implementation] does not match with the needs and must be reinforced in most of the Member States with the aim to increase the number and quality of compliance checks.

Excerpts from REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Regulation EU/995/2010 of the European Parliament and of the Council of 20 October 2010 laying down the obligations of operators who place timber and timber products on the market (the EU Timber Regulation, Feb. 18, 2016,  COM(2016) 74 final

 

Illegal Fishing and Failed States

Mauritania has some of West Africa’s richest fishing waters yet overfishing by foreign trawlers means hundreds of pirogues, or wooden canoes used by small-scale fishermen, must go further out to sea to net ever smaller catches.  Fishing is an important part of the mostly desert country’s economy, accounting for seven percent of gross domestic product and providing about 40,000 jobs, according to the World Bank…

West Africa alone loses at least $1.3 billion a year from illegal, unreported and unregulated fishing, according to a 2014 report by the Africa Progress Panel, which campaigns for sustainable development in Africa.Widespread corruption and few resources for enforcement mean huge foreign trawlers often venture into areas near the coast which are reserved for artisanal fishermen.  This allows them to drag off tonnes of catch in waters rich in snapper, sardines, mackerel and shrimp – putting the livelihoods and food security of millions of locals at risk…One way of improving governance is for more information to be disclosed on the quotas being sold to foreign fishing firms and how licensing agreements are being implemented,..

[T]he Extractives Industries Transparency Initiative (EITI) [is] a pioneering project that sets standards for companies to publish what they pay for oil, gas and minerals and for governments to disclose what they receive.  Modelled on EITI, a Fisheries Transparency Initiative (FITI) is in the works with Mauritania due to announce this week that it has set up a group of government officials, industry figures and campaigners to promote transparency in fisheries contracts….

“Transparency is just one component,” said Andre Standing, who works for the Coalition for Fair Fisheries Arrangements.”A lot depends on how people are able to use that information and whether they can put pressure on governments and companies to change behaviours where needs be,” he told the Thomson Reuters Foundation.

Excerpts from Mauritania’s depleted seas highlight need for fishing transparency, Reuters, Feb. 1, 2015

Stealing Patent-Protected Seeds

A Chinese man pleaded guilty in a US court on January 27, 2016 to stealing patent-protected corn seed from agribusiness giants Monsanto and DuPont to take back to China for commercial use.  Mo Hailong, 46, participated in a plot to steal inbred corn seeds from the two US companies so that his then employer, Beijing Dabeinong Technology Group, could use them in its own seed business, the US Department of Justice said.Mo “admitted to participating in the theft of inbred – or parent – corn seeds from fields in the southern district of Iowa for the purpose of transporting those seeds to China,” the department said in a statement.“The stolen inbred seeds constitute the valuable intellectual property of DuPont Pioneer and Monsanto.”..

Man admits stealing patented corn seeds from US fields to take to China, Guardian, Jan. 27, 2016

Lawsuits Against Shell, Nigeria

A Dutch appeals court ruled on December 18, 2015 that Royal Dutch Shell can be held liable for oil spills at its subsidiary in Nigeria, potentially opening the way for other compensation claims against the multinational. Judges in The Hague ordered Shell to make available to the court documents that might shed light on the cause of the oil spills and whether leading managers were aware of them.  This ruling overturned a 2013 finding by a lower Dutch court that Shell’s Dutch-based parent company could not be held liable for spills at its Nigerian subsidiary.

The legal dispute dates back to 2008, when four Nigerian farmers and the campaign group Friends of the Earth filed a suit against the oil company in the Netherlands, where its global headquarters is based.  “Shell can be taken to court in the Netherlands for the effects of the oil spills,” the court ruling stated on Friday. “Shell is also ordered to provide access to documents that could shed more light on the cause of the leaks.”  The case will continue to be heard in March 2016.  Judge Hans van der Klooster said the court had found that it “has jurisdiction in the case against Shell and its subsidiary in Nigeria”….

“There are 6,000km of Shell pipelines and thousands of people living along them in the Niger Delta,” he said. “Other people in Nigeria can bring cases and that could be tens of billions of euros in damages.”  In a separate case, Shell agreed in January to pay out £55m ($82 million) in out-of-court compensation for two oil spills in Nigeria in 2008, after agreeing a settlement with the affected community in the Delta.

Excerpt from Dutch appeals court says Shell may be held liable for oil spills in Nigeria, Guardian, Dec. 18, 2015.

 

The Costs of Stopping Biopiracy

Botanists think there are up to 80,000 wild species of flowering plant left to discover. But a scarcity of funds hampers efforts to collect them. The UN Convention on Biological Diversity of 1992, ratified by 195 states and the European Union, made things more complicated. It recognised plants as part of countries’ national heritage and outlawed “biopiracy”—profiting from plants without compensating the countries in which they were found.

That made exploiting plants fairer but collecting them harder. Some officials saw a chance to get rich. “Suddenly everyone thought these plants were incredibly valuable,” says Mr Hawtin. Getting permission to go on a collecting trip became nearly impossible. “Anybody could say no to a collecting expedition and very few people could say yes.”

Permits became sine qua non, but in poorer countries the environment ministries that were expected to issue them did not always exist. Collectors might see their applications bounced from one department to another, each unwilling to wield its rubber stamp. “No one wanted to be accused in their local paper of helping the biopirates,” says Mr Hawtin.

Persistent botanists have since earned some governments’ trust. It is now much easier to get approval for expeditions than it was in the 1990s, though often with restrictions on what may be collected. “Things are much better now than they were ten years ago,” says Sandy Knapp, head of the plants division at the Natural History Museum in London. A three-year permit from the Peruvian government allows her to collect specimens of Solanaceae, the family that includes tomatoes, potatoes and aubergines…The Millennium Seed Bank now holds workshops in many countries on collection and conservation techniques. It collaborates on expeditions and produces guidebooks to help locals locate and collect seeds for themselves. Yet some countries persist in imposing self-defeating restrictions. India’s biodiversity law, passed in 2002, makes exporting seeds very difficult and sits poorly with its international obligations. If governments fail to understand the urgency of preserving—and sharing—their biodiversity, there may soon be precious little left to collect.

Excerpts from Botany and bureaucracy: A dying breed, Economist,  Sept. 12, 2015, at 55

100 Years of Oil Leaks: Gulf of Mexico

A decade-old oil leak where an offshore platform toppled during a hurricane could continue spilling crude into the Gulf of Mexico for a century or more if left unchecked, according to government estimates obtained by The Associated Press that provide new details about the scope of the problem.  Taylor Energy Company, which owned the platform and a cluster of oil wells, has played down the extent and environmental impact of the leak. The company also maintains that nothing can be done to completely eliminate the chronic oil slicks that often stretch for miles off the coast of Louisiana….

Federal regulators suspect oil is still leaking from at least one of 25 wells that remain buried under mounds of sediment from an underwater mudslide triggered by waves whipped up by Hurricane Ivan in 2004….A Taylor contractor drilled new wells to intercept and plug nine wells deemed capable of leaking oil. But a company official has asserted that experts agree the “best course of action … is to not take any affirmative action” due to the risks of additional drilling…

The AP’s review of more than 2,300 Coast Guard pollution reports since 2008 showed a dramatic spike in sheen sizes and oil volumes since Sept. 1, 2014. That reported increase came just after federal regulators held a workshop August 2014 to improve the accuracy of Taylor’s slick estimates and started sending government observers on a Taylor contractor’s daily flights over the site.

Presented with AP’s findings, the Coast Guard provided a new leak estimate that is about 20 times greater than one recently touted by the company. In a February 2015 court filing, Taylor cited a year-old estimate that oil was leaking at a rate of less than 4 gallons per day.

A Coast Guard fact sheet says sheens as large as 1.5 miles wide and 14 miles long have been spotted by Taylor since the workshop. Since last September, the estimated daily volume of oil discharged from the site has ranged from roughly 42 gallons to 2,329 gallons, with a daily average of more than 84 gallons.,,, Based on satellite imagery and pollution reports, the watchdog group SkyTruth estimates between 300,000 and 1.4 million gallons have spilled from the site since 2004, with an annual average daily leak rate between 37 and 900 gallons.

Ken Arnold, an industry consultant, said natural oil seeps from cracks in the seabed can last for thousands of years. But he has never heard of another commercial oil spill lasting more than a decade, let alone a century.

In 2008, Taylor set aside hundreds of millions of dollars to pay for leak-related work as part of a trust agreement with the Interior Department. The company says it has spent tens of millions of dollars on its efforts to contain and halt the leak, but it hasn’t publicly disclosed how much money is left in the trust. The company sold all its offshore leases and oil and gas interests in 2008, four years after founder Patrick Taylor died, and is down to only one full-time employee.

Justice Department officials say the company approached the government concerning the trust fund, but they declined to discuss the terms of its proposal. Federal agencies responded that more work needed to be done, including installing a more effective containment dome system, and that the company remained responsible for doing that work, the officials said.

Oil leak that began after 2004 storm could last a century, U.S. says, Chicago Tribune, May 15, 2015

 

 

Oil Pollution in Nigeria – Shell

Farmers impacted by the Shell Petroleum Development Company, SPDC, Kolo Creek oil fields spill in Otuasega, Ogbia Local Government Area of Bayelsa State, have gone to court over the April 15, 2015 spill, which polluted their farms.According to the farmers, they were excluded from a Joint Investigation Visit to probe the impact of the spill despite their attempt to draw the attention of the team to their impacted farms.

A fish farmer, Mr. Aku Asei, whose three ponds were impacted, said the affected farmers numbering over 50 resolved to take legal action over the incident in the wake of the alleged claim of sabotage by Shell.”This is a clear case of the powerful and rich oil firm against the weak and poor farmers. They are claiming that the spill was caused by sabotage and abandoned the polluted environment. The regulations which they relied on to absolve themselves clearly stated that the operator of the field where pollution occurs must clean up the site irrespective of the cause but SPDC officials declined to capture the farms as impacted areas….[T]he spill was as a result of negligence by SPDC surveillance contractors deployed to guard the facility…

The farmers, made up of fish farmers, banana and plantain plantation owners in the area also appealed to Bayelsa State Government to assist them in prevailing on the oil firm to clean up the areas and pay compensation to them.

Nigeria: Farmers Take Shell to Court Over Oil Spill Impact in Bayelsa, AllAfrica.com, May 12, 2015

Corruption Begets Corruption: Nigeria Oil

Dead fish wash up on the once-fertile shores of creeks around Bodo, a town in the Niger delta, that are covered with crude oil more than six years after two massive spills. Locals have only now received compensation from Shell, the oil firm responsible for the leaks. For the first time in half a decade, fishermen have cash to start businesses, repair their houses and send children to school… “Look,” says the chief of a tiny town called B-Dere, just a few miles from Bodo. He gestures to the deathly-black banks still bearing the marks of the slicks. “There is nothing to drink, nowhere to fish. What good has come from it?”

The cash that the oil industry provides has greased Nigerian politics for decades. Gross mismanagement and corruption in the industry are the causes of much of the inequality and discontent with the ruling party in an economy that is not just Africa’s largest but that ought to also be one of its wealthiest…

Nigeria pumps something like 2m barrels of oil a day. These account for most of its exports and about 70% of government revenues. But official figures are as murky as its polluted creeks. Volumes are recorded only at export terminals rather than at the wellhead, says Celestine AkpoBari of the Port Harcourt-based advocacy group, Social Action. Were a proper tally kept, he says, corruption would be exposed on a scale that would shock even the most cynical Nigerian.

It seems likely that more than 100,000 barrels of crude are stolen (or “bunkered” in the local parlance) every day, at a cost to the state and investors of billions of dollars a year. Politicians, oil workers and security forces are said to be behind the complex cartels that steal, illegally refine and sell crude oil. They have amassed almost unimaginable wealth in a country where poverty is still rife.

Oil’s taint has seeped into almost all levels of government and business. Yet the central problem is found in the petroleum ministry, which wields vast unaccountable power. The Nigerian National Petroleum Corporation (NNPC), a state-owned behemoth, is responsible for all aspects of the industry, from exploration to production and regulation. It is among the most secretive oil groups in the world, and is “accountable to no one”, says Inemo Samiama, country head of the Stakeholder Democracy Network, a non-profit group.

In 2013 the former governor of the central bank, Lamido Sanusi, alleged that $20 billion in oil revenues was missing from state coffers. He was fired for his troubles soon after. …

Even where cash has not been nicked, it has often been squandered. Take the Excess Crude Account (ECA), a sovereign-wealth fund intended to cushion Nigeria’s budget against falling oil prices. Most of it was spent over the past two years, despite oil prices being relatively high for most of that period.

The industry itself is in as sorry a state as the government’s finances. Although oil practically gushes from the ground in parts of the delta, oil output has been stagnant for years and billions of dollars of investment are stalled because of uncertainty over a new law for the industry.  This is holding back Nigeria’s economy almost across the board. Because the industry has failed to build the infrastructure to pipe gas to domestic consumers such as power plants, much of it is simply flared and burned: Britain reckons that some $800m worth of Nigeria’s gas a year goes up in smoke. The country is also chronically short of fuel even though it has four state-owned oil refineries. Because of poor maintenance and ageing equipment they operate at well below capacity, forcing Nigeria to import about 70% of the fuel it needs. There is little incentive for reform since the government pays hefty subsidies to NNPC to keep on importing…

But a starting point should be to halt subsidies for fuel imports. At a stroke that would undercut a major source of corruption and crime (both on land and at sea) that spills into neighbouring countries, the destination for smuggled consignments of cheap Nigerian fuel. It should also take a close look at NNPC, which should not be allowed both to participate in the market and regulate it. Some of its assets could be privatised. The ruling party and opposition are considering both….

For communities in Ogoniland, the most pressing problem is cleaning up. Shell has promised to mop up the mess around Bodo, though the process has yet to start. Compensation is one thing, Bodo residents say, but what they really want is their livelihood back.

Nigeria’s oil: Crude politics, Economist,  Mar. 28, 2015, at 54

Nuclear Renaissance: Egypt-Russia Deal

Russian President Vladimir Putin and Egyptian President Abdel Fattah el-Sisi signed a preliminary agreement to jointly build Egypt’s first nuclear power plant, after the two leaders met in Cairo on February 9-10, 2015.  This announcement comes after multiple reports last November (2014) about Russia’s state nuclear power company Rosatom’s agreement to help Iran build several nuclear reactors, including reactors at Iran’s Russian-built Bushehr nuclear power plant.

Putin had travelled to Cairo this week upon Sisi’s invitation. Russian-Egyptian relations began improving after the July 2013 military ouster of former president Mohamed Morsi, when U.S.-Egyptian relations began to decline.  Cairo grew increasingly concerned with what it perceived to be U.S. engagement with the Muslim Brotherhood, and felt abandoned in its fight against terrorists, particularly in the restless Sinai—a hotbed of radicalism and instability going back to President Hosni Mubarak’s time. Washington also delayed weapons deliveries to Egypt, withheld military aid, and later halted the nascent bilateral strategic dialogue. The decline of U.S.-Egyptian relations created an opportunity for Putin to step in and assert his national interests in Egypt.

Putin and Sisi see eye to eye on a number of issues. Putin would certainly prefer to see a secular government in Egypt. Unlike President Obama, Putin enthusiastically endorsed Sisi’s bid for Egyptian presidency. Russia’s Supreme Court has designated the Muslim Brotherhood a terrorist organization in February 2003. Russia continues to battle an increasingly-radicalized insurgency in the Caucasus and the Kremlin has long believed the Brotherhood helped arm radical Islamists in Russia. Putin certainly won’t criticize Sisi on his democratic backslide.

Economic relations have significantly improved between Egypt and Russia in recent years….Putin’s trip to Cairo created a political opportunity for him to show to the West, in light of his aggression in Ukraine, that he is not isolated, no matter what the West says…

Cairo used to be Washington’s partner on energy cooperation. This is no longer the case.In February 2006, the George W. Bush administration announced the Global Nuclear Energy Partnership (GNEP). It aimed to create an international partnership, which would advance safe and extensive global expansion of nuclear power through so-called “cradle-to-grave fuel services” within a regulated market for enriched uranium, where several large countries would provide enriched uranium to smaller countries. This plan aimed to address crucial concerns about nuclear weapons proliferation and waste management, and to eliminate the need for smaller countries to build facilities for uranium processing and disposal in the first place, saving them billions. Egypt was among participant countries in GNEP. President Obama, however, effectively scrapped parts of GNEP and now shows little interest in expanding the strategic energy partnership with Egypt. Putin is only too happy to fill the gap, and is not concerned with the safeguards inherent to GNEP.

Excerpt from Anna Borshchevskaya, Russia-Egypt Nuclear Power Plant Deal: Why Ignoring Egypt’s Needs Is Bad For The U.S., Forbes, Feb. 13, 2015

How Ships Dump Oily Waste at Sea

A ship company based in Germany and the chief engineer on one of its vessels have agreed to plead guilty to illegally dumping oily water off Alaska.  The AML Ship Management GMBH and Nicolas Sassin, the chief engineer on the AML-operated ship City of Tokyo, agreed to plead guilty to violating federal clean water law by knowingly dumping 4,500 gallons of oily bilge water south of the Aleutian Islands.  The company and Sassin, 45, face a separate charge of presenting false pollution oversight records to the U.S. Coast Guard when the vessel docked in Portland, Oregon, prosecutors said.  As part of the plea deal, AML agreed to pay $800,000 in fines and community service payments…

Discharge of oily waste from vessels is a worldwide problem, said Kevin Feldis, first assistant U.S. attorney.”This is the first time we have charged Clean Water Act crimes for an actual discharge of oil into the EEZ (exclusive economic zone) off the coast of Alaska,” Feldis said in an email. “As detailed in the court documents, witnesses saw a sheen off the side of the vessel after the chief engineer hooked up a pump to illegally dump oily bilge water overboard.

Water routinely accumulates in the bilge, or bottom, of vessels. Federal law requires ships to store it until it can be treated on shore, or to run it through an onboard oil-water separator. Water that contains less than 15 parts per million of petroleum can be dumped overboard…On Aug. 29, 2015  as the ship passed 165 miles south of Alaska’s Sanak Island, Sassin used an illegal pump system to dump untreated oily bilge water over the side of the 603-foot ship, bypassing the oil-water separator and other pollution control equipment, prosecutors said.

“Nobody knows exactly how much oily waste is illegally dumped from ships, but as this case demonstrates, a determined engineer with a few pieces of equipment who does not have proper oversight can easily circumvent the pollution prevention equipment onboard vessels,” Feldis said.

Excerpt from DAN JOLING, German company, ship’s chief engineer reach plea agreement in Alaska marine pollution case, Associated Press, Feb. 12, 2015

States Captured by their Energy Companies – Canada

Few governments have aligned their interests so closely to those of their country’s energy and mining firms as Canada’s Conservative administration. The prime minister, Stephen Harper, has boasted of Canada as an “emerging energy superpower”. Under the banner of “responsible resource development”, his government has done its best to ease the way for minerals firms, at home and abroad, including directing some foreign aid to countries where Canadian firms wanted to drill. Ministers point with pride to the C$174 billion ($169 billion) in export revenues from sales of minerals, oil and gas in 2013 and to the fact that Canada is home to more than half of the world’s publicly listed exploration and mining companies.

But the downside of seeming so cosy with extractive firms is that whenever one of them gets in trouble—an inevitable occurrence with 1,500 firms active in more than 100 countries—the country’s image is tarnished too. So the government has recently begun to reduce that vulnerability by taking a stricter line on corporate social responsibility (CSR) and bribery by Canadian firms operating abroad. Protecting the national brand is “a huge part of it,” says Andrew Bauer of the Natural Resource Governance Institute, a group that monitors the industry and lobbies for openness.

Ed Fast, the international trade minister, admitted as much on November 14th, as he introduced new rules that require Canadian resources firms involved in disputes with local communities to take part in a resolution process. If any firms refuse, the government will withdraw its economic diplomacy on their behalf…[In the meantime there are ] protests against Canadian firms’ projects, from Romania where environmentalists are objecting to plans for an opencast gold mine, to Guatemala, where guards at a nickel mine have been accused of gang rape…

A new Canadian law  was introduced in October 2014 to curb bribery by mining and energy firms by demanding more transparency from them. The law, which still must be fleshed out in detailed regulations, requires them to disclose all payments made to domestic and foreign governments…It helped that the law was backed by an unusual coalition of non-government organisations and mining companies themselves. T  It seems that the miners’ experience in dealing with local communities is making them more sensitive to their concerns about corruption and other ills. In contrast, the oil and gas firms are lobbying for the transparency law to be weakened. They want to be given exemptions in countries whose local laws conveniently prohibit the disclosure of such payments. They also want to avoid having to give a project-by-project breakdown of their payments, without which the information would be of little use.

Excerpt Canada’s natural-resources companies: Reputation management, Economist, Nov. 22, 2014

Why Rhino Poaching Goes on Forever

Mistrust in police ranks, a shortage of proper intelligence structures and an easy exit through South Africa’s more than nine harbours are all stumbling blocks specialised police experience in the ongoing battle against rhino poaching.

This was how Colonel Johan Jooste, operational commander of the Hawks endangered species unit in South Africa outlined some issues facing his unit. He was addressing the 35th international conference of crime fighters in Cape Town this week, Netwerk24 reports.“…We find instances where police are involved in rhino poaching syndicates,” he said, adding police detailed to anti- and counter-poaching should receive specialist training….

Knowledgeable hunters in South Africa are recruited by buyers of rhino horn. They are also responsible for removing the horn and taking it to the next person in the chain, usually someone responsible for transport.  “It can be someone who knows the area well and can also be either a policeman or a traffic officer,” he said, adding the horn was stored or taken to places such as harbours for illegal export.  The Kruger National Park has this year lost 503 rhinos to poachers out of a national total of 787.

Excerpts, Rhino poachers present different challenges to the Hawks, defenceWeb, Tuesday, Oct. 14 2014

Gross Negligence: Gulf of Mexico Oil Spill

BP wants its money back — hundreds of millions of dollars of it — but a federal judge said Wednesday (Sept 24. 2014) that the oil giant must stand by the agreement it made with the companies it compensated for losses blamed on the 2010 Gulf oil spill.BP argued that a flawed funding formula enabled nearly 800 businesses to overestimate their spill-related claims.

One construction company hundreds of miles from the coast received $13.2 million, but deserved $4.8 million at most, BP said. Another company selling “animals and animal skins” was overpaid about $14 million, and about 50 others shouldn’t have been paid at all, the company said.  About 150 claimants should return a total of $185 million, and overpayments to the rest haven’t been calculated, attorney Kevin Downey argued.

U.S. District Judge Carl Barbier was not persuaded, thwarting BP’s latest attempt to control potential liabilities now approaching $50 billion.  The judge agreed weeks ago to change the compensation formula for any future payments, but ruled that a deal is a deal when it comes to the money BP has already paid out. Under that deal, claimants agreed not to sue, and BP agreed that no future court action could change their payments….

Barbier said he would rule later on the issue of compensation for cleanup workers whose chronic medical problems weren’t diagnosed until after the deal’s cutoff date of April 16, 2012. The settlement entitled cleanup workers with chronic conditions including rashes and breathing problems to receive up to $60,700 if the problems first surfaced within days of their cleanup work…

BP’s closing share price was $50.20 the day of the explosion, and fell to $22.80 in June 2010, before the well was capped. Shareholders returned after BP set aside $42 billion to cover its liabilities, reassured the financial damage was contained.  That’s no longer so clear: The judge’s ruling this month that BP showed gross negligence and willful misconduct added a new level of uncertainty around BP’s spill-related expenses, reducing its market value by $9 billion in a single day.,,BP’s total potential liabilities now include up to $18 billion in fines and penalties that could be imposed for violating federal pollution laws, and more than $27 billion BP says it has already paid to restore the coast and settle damage claims.

JANET MCCONNAUGHEY and JONATHAN FAHEY,Businesses Won’t Have to Return BP Spill, Associated Press, Sept. 24, 2014

 

$10 Billion Illegal Market for Wildlife

At $10 billion a year, illegal wildlife makes up the world’s fifth-largest illicit market behind drugs, counterfeit products, trafficked people and smuggled oil. An intergovernmental conference in Geneva from July 7th-11th, 2014 revealed the special worries about ivory smuggling in Thailand, rhino-horn trafficking through Mozambique and trade in tiger parts across South and South-East Asia.

According to TRAFFIC, a lobby group, the street value of rhino horn is $60,000 per kilo—more than the price of gold. Gram for gram, bear-bile flakes or powder sell in Japan [slightly less] than cocaine in Asia. Booming demand from Asia’s growing middle classes is pushing some species close to extinction. As supply dwindles, prices rocket, which tempts criminal gangs to sink their claws in even further.

Elephant ivory is valued for aesthetic reasons. Demand for rhinoceros horns, the paws and bile of Asiatic black bears and sun bears, tiger bones and penises, and deer musk, is stimulated by the healing powers ascribed to them in traditional Chinese medicine. Rhino-horn shavings boiled in water are said to cool and to cure headaches; the brew is akin to fingernail clippings in water (both are mainly keratin, an indigestible protein). Bear bile does help with gallbladder and liver problems—but no more than the synthetic version of ursodeoxycholic acid, its main component.

In February 42 countries, including China and Japan, and the European Union signed a declaration against trade in illegal wildlife products. Chinese law punishes the purchase or consumption of endangered species with up to ten years in jail. But in May, when Philippine forces seized a Chinese vessel carrying sea turtles, giant clamshells and live sharks off the disputed Half Moon Shoal, China expressed outrage at the “provocative action”—not the illegal cargo.

The illegal trade in wild-animal products: Bitter pills, Economist, July 19, 2014, at 54

Poaching Endangered Species – Namibia

he rising tide of elephant and rhino poaching in Africa is spreading to the sparsely-populated vastness of Namibia in the southeast of the continent, latest official figures show. Between 2005 and 2011 just two elephant were killed, while 121 have been killed in the past two and a half years, according to figures presented by the environment ministry.  And while no rhino were poached between 2005 and 2010, a total of 11 have been killed since then — rising from one in 2011 to four already this year.

Deputy Environment Minister Pohamba Shifeta told AFP that the government is worried by the trend and is working with law enforcement agencies to tackle the problem. “We don’t want the numbers to escalate further,” Shifeta said.  “There is a high probability that attention will shift to Namibia as we have recently experienced.”

Across the border in South Africa, rhino poaching has reached crisis levels, with more than 290 killed already this year.  Most of the poaching in Namibia has taken place in protected areas, such as the Bwabwata National Park in the northeast, where 13 elephant were killed in 2012, the environment ministry report said.

“The immediate requirement is to control the emerging commercial ivory poaching in the northeast part of the country and to prevent the westwards spread of rhino and elephant poaching into the Etosha National Park and beyond,” Shifeta told a meeting of police officers and rangers.  Namibia has 79 conservation areas covering more than 100,000 square kilometres and inhabited by some 300,000 people.

Several poachers have been arrested in recent years, with the latest suspects being two Asian men who were held in March this year allegedly in possession of rhino horn worth around $230,000 (167,000 euros). Asia is a major market for rhino horn, where it is believed to have medicinal value, and for elephant ivory.

Namibia caught in net of elephant, rhino poaching, Agence France Presse, May 13, 2014.

The Fate of Nuclear Waste from Oil Drilling

Scotoil Services Ltd, a company which disposes of radioactive waste from the North Sea oil industry, inadvertently pumped dangerous particles into Aberdeen Harbour over several months.  The pollution included materials such as lead-210, radium-226 and radium-228, which both glow blue in the dark, and polonium-210, which was used to poison the former Russian spy, Alexander Litvinenko.  An investigation by the Scottish Environment Protection Agency (Sepa) found one “gross” breach and several “major” breaches of the firm’s operating conditions.

However, the public was never told about the leak, which continued unchecked from November 2011 until April 2012, and it also appears that the Scottish Government was not informed either.   While Scotoil had installed equipment to remove solid material from their liquid effluent, in April 2012, they informed Sepa that a final filter they were using had potentially failed Sepa said in a statement.

Scotoil has long been at the centre of concerns about radioactive particles washing up on the southern end of Aberdeen Beach, known as Foot Dee.  Drilling for oil and gas causes Naturally-Occurring Radioactive Material (NORM) to build up on offshore equipment – an estimated 50 to 100 tonnes each year from the North Sea alone.  For years, Scotoil and other operators could allow small particles of NORM to be discharged into the sea with the water they used to clean the drills and other pieces of essential kit.

However, tighter restrictions brought in from October 2011 mean that all particles must now be screened out and sent to secure landfill sites in sealed drums, along with the bulk of the solid waste.  Following a Freedom of Information request by this newspaper, it emerged that Sepa became aware of the potential Scotoil leak in April, 2012.  The company contacted Sepa to report “that particles of NORM have been discharged in their liquid effluent to the marine environment… Scotoil’s view is that the filters failed allowing the solid material into the environment”.

Excerpt  from, Ben Borland, Scots kept in the dark over radiation leak into harbour at Aberdeen, Scottish Express, Apr. 26, 2014

Oil Spills Everyday – the Impact

Silent oil spills” occur daily when oil is released into the environment during use or illegally dumping. Silent oil spills generate around 10 billion gallons of contamination in a single year. According to the Environmental Protection Agency’s “Developing a used oil recycling program” fact sheet, 40 percent of the pollutants in the water come from motor oil.

California’s bill, SB 916, attempts to address this by encouraging the use of bio-based motor oil. Most bio-based motor oils are made from the organic fatty acids found in various plants. The oil is non-toxic and is biodegradable….Very few are aware that 200 million gallons of used motor oil is illegally dumped in the United States every single year…More than twice as much motor oil enters the near shore waters off Los Angeles every year from urban runoff.

According to the EPA, petroleum based lubricants biodegrade slowly, they bioaccumulate in the tissues of marine organisms and they have high levels of aquatic toxicity. They also have much higher GHG [greenhouse gas] emissions relative to bio based alternatives, and of course, they are not renewable…

The fight to bring bio-based motor oil into the mainstream is an uphill battle for those seeking to unseat the deeply entrenched and deep pocketed gas and oil industry. Last year alone, the industry spent $144 million lobbying on legislators at the federal level.

Excerpt from Justin King, California attempts to battle ‘silent oil spills’ SPECIAL, Digital Journal, April 11, 2014

Dumping Coal in the Sea

Until recently Colombia was lax in enforcing its environmental laws. So it came as a shock to the country’s mining industry when, in January, the government halted coal exports from a port operated by Drummond, an American miner, in a row over pollution. The suspension has been costly not only for Drummond: its operations generate $66m a month in royalties and taxes for the Colombian treasury.

The mining minister, Amylkar Acosta, confirmed this week that the government would let the company resume its exports later this month, when it completes improvements to the port facility to prevent contamination of nearby beaches. The government has been under pressure to take action since environmentalists photographed an incident last year in which more than 500 tonnes of coal were dumped into the Bay of Santa Marta to stop a barge from sinking. Last month six employees at the port were charged, and face possible jail sentences. Drummond has been fined $3.6m and told to clean up the mess.

The case is an illustration of how the government, having welcomed foreign miners, is now having to contend with public disquiet over both pollution and the way the country’s mineral wealth is shared. In an election in May, President Juan Manuel Santos will seek a second term. So he cannot ignore the “hostile” climate of public opinion on the issue, says Alvaro Ponce, a Colombian mining expert.

Protests by nearby residents have delayed several big projects, including AngloGold Ashanti’s proposed gold mine in Tolima province and Eco Oro’s planned gold and silver mine in Santander province. A study by Colombia’s national audit office, published in January, found that economic and social development in towns next to large mining operations is worse than in places where illegal coca crops are grown for making cocaine.

The environment ministry is seeking new powers to require licences for exploration as well as extraction. Mining firms grumble that the process of getting projects approved is already tortuous enough. This and the recent fall in world prices of some minerals mean that up to $7.3 billion of investments are stalled, they say. Mr Acosta says the miners must accept that besides getting their official permits, they have to convince local communities to accept their presence, earning a “social licence” to operate. “Without that, the projects become unviable,” he says.

The backlash against mining has been building for some years. In the mid-2000s, when commodity prices were booming and Colombia’s internal conflicts were subsiding, the government offered incentives for foreign firms to come in and create mining jobs. It awarded exploration permits for swathes of territory, including in areas hitherto off limits, such as the fragile páramo tundra in the Andes. “The floodgates were opened,” says James Lockhart-Smith of Maplecroft, a risk-analysis firm.

But Colombia’s regulators were ill-prepared. In 2011 the government stopped accepting new applications for licences while it dealt with a backlog of 19,000. It rejected 90% of these, then turned its attention to 10,000 projects that had already been given licences, finding that 92% were failing in some way to comply with their conditions.

Despite all the stumbles and setbacks, Colombia is getting somewhere in its drive to exploit its mineral reserves. In 2013 mining investment was $3.6 billion, 21% more than in 2012. Mining already accounts for 2.3% of GDP and 7% of exports, and foreign companies are still lining up to explore new prospects. By the standards of resource-rich emerging economies, it is a fairly well-run place, so the chances are that it will succeed in coming up with a licensing regime that eases public worries without deterring investment. As in richer countries, mining projects will still be welcomed, but not at any price.

Mining in Colombia: Digging itself out of a hole, Economist, Mar. 15, 2014, at 61

Governing the Oceans Dysfunction

About 3 billion people live within 100 miles (160km) of the sea, a number that could double in the next decade as humans flock to coastal cities like gulls. The oceans produce $3 trillion of goods and services each year and untold value for the Earth’s ecology. Life could not exist without these vast water reserves—and, if anything, they are becoming even more important to humans than before.

Mining is about to begin under the seabed in the high seas—the regions outside the exclusive economic zones administered by coastal and island nations, which stretch 200 nautical miles (370km) offshore. Nineteen exploratory licences have been issued. New summer shipping lanes are opening across the Arctic Ocean. The genetic resources of marine life promise a pharmaceutical bonanza: the number of patents has been rising at 12% a year. One study found that genetic material from the seas is a hundred times more likely to have anti-cancer properties than that from terrestrial life.

But these developments are minor compared with vaster forces reshaping the Earth, both on land and at sea. It has long been clear that people are damaging the oceans—witness the melting of the Arctic ice in summer, the spread of oxygen-starved dead zones and the death of coral reefs. Now, the consequences of that damage are starting to be felt onshore…

More serious is the global mismanagement of fish stocks. About 3 billion people get a fifth of their protein from fish, making it a more important protein source than beef. But a vicious cycle has developed as fish stocks decline and fishermen race to grab what they can of the remainder. According to the Food and Agriculture Organisation (FAO), a third of fish stocks in the oceans are over-exploited; some estimates say the proportion is more than half. One study suggested that stocks of big predatory species—such as tuna, swordfish and marlin—may have fallen by as much as 90% since the 1950s. People could be eating much better, were fishing stocks properly managed.

The forests are often called the lungs of the Earth, but the description better fits the oceans. They produce half the world’s supply of oxygen, mostly through photosynthesis by aquatic algae and other organisms. But according to a forthcoming report by the Intergovernmental Panel on Climate Change (IPCC; the group of scientists who advise governments on global warming), concentrations of chlorophyll (which helps makes oxygen) have fallen by 9-12% in 1998-2010 in the North Pacific, Indian and North Atlantic Oceans.

Climate change may be the reason. At the moment, the oceans are moderating the impact of global warming—though that may not last.,,Changes in the oceans, therefore, may mean less oxygen will be produced. This cannot be good news, though scientists are still debating the likely consequences. The world is not about to suffocate. But the result could be lower oxygen concentrations in the oceans and changes to the climate because the counterpart of less oxygen is more carbon—adding to the build-up of greenhouse gases. In short, the decades of damage wreaked on the oceans are now damaging the terrestrial environment.

Three-quarters of the fish stocks in European waters are over-exploited and some are close to collapse… Farmers dump excess fertiliser into rivers, which finds its way to the sea; there cyanobacteria (blue-green algae) feed on the nutrients, proliferate madly and reduce oxygen levels, asphyxiating all sea creatures. In 2008, there were over 400 “dead zones” in the oceans. Polluters pump out carbon dioxide, which dissolves in seawater, producing carbonic acid. That in turn has increased ocean acidity by over a quarter since the start of the Industrial Revolution. In 2012, scientists found pteropods (a kind of sea snail) in the Southern Ocean with partially dissolved shells…

The high seas are not ungoverned. Almost every country has ratified the UN Convention on the Law of the Sea (UNCLOS), which, in the words of Tommy Koh, president of UNCLOS in the 1980s, is “a constitution for the oceans”. It sets rules for everything from military activities and territorial disputes (like those in the South China Sea) to shipping, deep-sea mining and fishing. Although it came into force only in 1994, it embodies centuries-old customary laws, including the freedom of the seas, which says the high seas are open to all. UNCLOS took decades to negotiate and is sacrosanct. Even America, which refuses to sign it, abides by its provisions.

But UNCLOS has significant faults. It is weak on conservation and the environment, since most of it was negotiated in the 1970s when these topics were barely considered. It has no powers to enforce or punish. America’s refusal to sign makes the problem worse: although it behaves in accordance with UNCLOS, it is reluctant to push others to do likewise.

Specialised bodies have been set up to oversee a few parts of the treaty, such as the International Seabed Authority, which regulates mining beneath the high seas. But for the most part UNCLOS relies on member countries and existing organisations for monitoring and enforcement. The result is a baffling tangle of overlapping authorities that is described by the Global Ocean Commission, a new high-level lobby group, as a “co-ordinated catastrophe”.

Individually, some of the institutions work well enough. The International Maritime Organisation, which regulates global shipping, keeps a register of merchant and passenger vessels, which must carry identification numbers. The result is a reasonably law-abiding global industry. It is also responsible for one of the rare success stories of recent decades, the standards applying to routine and accidental discharges of pollution from ships. But even it is flawed. The Institute for Advanced Sustainability Studies, a German think-tank, rates it as the least transparent international organisation. And it is dominated by insiders: contributions, and therefore influence, are weighted by tonnage.

Other institutions look good on paper but are untested. This is the case with the seabed authority, which has drawn up a global regime for deep-sea mining that is more up-to-date than most national mining codes… The problem here is political rather than regulatory: how should mining revenues be distributed? Deep-sea minerals are supposed to be “the common heritage of mankind”. Does that mean everyone is entitled to a part? And how to share it out?

The biggest failure, though, is in the regulation of fishing. Overfishing does more damage to the oceans than all other human activities there put together. In theory, high-seas fishing is overseen by an array of regional bodies. Some cover individual species, such as the International Commission for the Conservation of Atlantic Tunas (ICCAT, also known as the International Conspiracy to Catch All Tuna). Others cover fishing in a particular area, such as the north-east Atlantic or the South Pacific Oceans. They decide what sort of fishing gear may be used, set limits on the quantity of fish that can be caught and how many ships are allowed in an area, and so on.

Here, too, there have been successes. Stocks of north-east Arctic cod are now the highest of any cod species and the highest they have been since 1945—even though the permitted catch is also at record levels. This proves it is possible to have healthy stocks and a healthy fishing industry. But it is a bilateral, not an international, achievement: only Norway and Russia capture these fish and they jointly follow scientists’ advice about how much to take.  There has also been some progress in controlling the sort of fishing gear that does the most damage. In 1991 the UN banned drift nets longer than 2.5km (these are nets that hang down from the surface; some were 50km long). A series of national and regional restrictions in the 2000s placed limits on “bottom trawling” (hoovering up everything on the seabed)—which most people at the time thought unachievable.

But the overall record is disastrous. Two-thirds of fish stocks on the high seas are over-exploited—twice as much as in parts of oceans under national jurisdiction. Illegal and unreported fishing is worth $10 billion-24 billion a year—about a quarter of the total catch. According to the World Bank, the mismanagement of fisheries costs $50 billion or more a year, meaning that the fishing industry would reap at least that much in efficiency gains if it were properly managed.

Most regional fishery bodies have too little money to combat illegal fishermen. They do not know how many vessels are in their waters because there is no global register of fishing boats. Their rules only bind their members; outsiders can break them with impunity. An expert review of ICCAT, the tuna commission, ordered by the organisation itself concluded that it was “an international disgrace”. A survey by the FAO found that over half the countries reporting on surveillance and enforcement on the high seas said they could not control vessels sailing under their flags. Even if they wanted to, then, it is not clear that regional fishery bodies or individual countries could make much difference.

But it is far from clear that many really want to. Almost all are dominated by fishing interests. The exceptions are the organisation for Antarctica, where scientific researchers are influential, and the International Whaling Commission, which admitted environmentalists early on. Not by coincidence, these are the two that have taken conservation most seriously.

Countries could do more to stop vessels suspected of illegal fishing from docking in their harbours—but they don’t. The FAO’s attempt to set up a voluntary register of high-seas fishing boats has been becalmed for years. The UN has a fish-stocks agreement that imposes stricter demands than regional fishery bodies. It requires signatories to impose tough sanctions on ships that break the rules. But only 80 countries have ratified it, compared with the 165 parties to UNCLOS. One study found that 28 nations, which together account for 40% of the world’s catch, are failing to meet most of the requirements of an FAO code of conduct which they have signed up to.

It is not merely that particular institutions are weak. The system itself is dysfunctional. There are organisations for fishing, mining and shipping, but none for the oceans as a whole. Regional seas organisations, whose main responsibility is to cut pollution, generally do not cover the same areas as regional fishery bodies, and the two rarely work well together. (In the north-east Atlantic, the one case where the boundaries coincide, they have done a lot.) Dozens of organisations play some role in the oceans (including 16 in the UN alone) but the outfit that is supposed to co-ordinate them, called UN-Oceans, is an ad-hoc body without oversight authority. There are no proper arrangements for monitoring, assessing or reporting on how the various organisations are doing—and no one to tell them if they are failing.

Governing the high seas: In deep water, Economist, Feb. 22, 2014, at 51

Organized Crime: rhino horn to waste dumping

[A]ccording to America’s Congressional Research Services,  illegal trade
in endangered wildlife products is worth as much as $133 billion annually. Commodities such as rhino horn and caviar offer criminals two benefits rarely found together: high prices and low risk. Rhino horn can fetch up to $50,000 per kilogram, more than gold or the American street value of cocaine. Get caught bringing a kilogram of cocaine into America and you could face 40 years in prison and a $5m fine. On January 10th, by contrast, a New York court sentenced a rhino-horn trafficker to just 14 months…Organised crime is globalising and diversifying. Mono-ethnic, hierarchical mafias are being replaced by multi-ethnic networks that operate across borders and commit many types of offence. In an ongoing investigation into rhino-horn trafficking, the Fish and Wildlife Service (FWS) arrested Irish travellers using indigent Texans to procure material for Chinese and Vietnamese buyers. Europol, the European Union’s law-enforcement agency, estimates that just a quarter of Europe’s roughly 3,600 organised-crime groups have a main nationality, and that some operate in dozens of countries. A third are involved in more than one criminal enterprise, with half of those linked to drug-trafficking.

And though traditional trafficking in drugs, guns and people is still lucrative, gangs are increasingly moving into lower-risk, higher-reward areas—not just wildlife, but fraud and illegal waste-disposal….Gangs in Britain make around £9 billion ($14.8 billion) a year from tax, benefit, excise-duty and other fraud—not much less than the £11 billion they earn from drugs. In America cigarette-trafficking deprives state, local and federal governments of $5 billion in tax revenues annually. The European Union estimates that losses within its borders from cigarette smuggling, tax fraud and false claims on its funds by organised groups total €34 billion ($46.5 billion) a year. But member states bring fewer than ten cases each a year for defrauding the EU, and sentences tend to be light.

According to the FLARE Network, an international group of campaigners against organised crime, criminal groups in Italy make around €14 billion a year from being mixed up in agriculture. In some parts of the country mafias control food production and distribution; Franco La Torre, FLARE’s president, says they also enrich themselves through fraudulent claims on EU agricultural funds. Increasingly strict regulation of waste disposal has created another profitable opportunity for organised crime in Europe—particularly, according to Europol, for the Italian Camorra, ’Ndrangheta and Cosa Nostra…

Old-style loan sharks and drug-dealers are finding a new role as distributors for the modern mobsters who manage the supply chains, marketing, finance and human resources needed to move goods, money and people across borders. “The new generation are very talented businessmen and technologically advanced experts,” says Mr La Torre. They prefer invisibility to showy violence. Many also have legitimate business interests.  Clever criminals acting across borders are extremely difficult to prosecute. They profit from gaps in enforcement and regulation, and conceal their illegal acts in complex supply chains. If a network of Nigerian scammers based in Amsterdam defrauds French, Australian and American credit-card holders, where does the crime occur? And who has the motivation, not to mention the jurisdiction, to prosecute?

A commodity such as oil, ivory or fish will be transported on a ship flying a flag of convenience, explains Mr Leggett. The ship will be owned by a holding company registered in a tax haven with a phoney board. Thus the criminals can disguise the provenance of their ill-gotten goods and middlemen can plead ignorance….

Until then, illicit goods will keep coming in quantities too great for governments to stop. One FWS inspector estimates that for all the peering, prodding and chirping, for all the rewards promised and rhino-horn traffickers caught, the agency picks up perhaps 5% of wildlife brought illicitly into America. For criminals, that is merely a light tax on the profits from the rest.

Excerpts, Organised crime: Earning with the fish,Economist, Jan. 18, 2014, at 59

Smuggling Endangered Species and Drugs

Criminals involved in smuggling endangered species from Latin America into Spain are using the same routes as drug traffickers, Spanish police told Efe.  Some drug traffickers have actually turned to the business of smuggling exotic animals because it is lucrative and less dangerous than the narcotics trade, Spanish Civil Guard Wildlife Protection Service Capt. Salvador Ortega said.  Spain is one of the main entry points used by animal smugglers from Latin America to penetrate the European market, Ortega said.

The trade in exotic species is “very lucrative” and continues growing, the police officer said.  Animal smugglers use “the same routes as the drug trade and some have traded their businesses for exotic species,” Ortega said.  A small egg can easily be smuggled across international borders, with the parrot that later hatches being sold for more than 15,000 euros (about $20,500), Ortega said   Reptiles, amphibians, turtles – smuggled from Morocco – and parrots are the exotic animals most commonly illegally introduced into Spain, the police officer said.

Animal Traffickers Use Same Routes from Latin America as Drug Smugglers, Police Say, Latin American Herald Tribune, Jan. 3, 2014

Shell and the Oil Spills in Nigeria

At Amnesty International and CEHRD’s request, the independent US oil pipeline specialist Accufacts assessed a number of oil spill investigation reports, as well as responses from oil companies operating in the Niger Delta and Nigeria’s national oil spill agency.  The expert found cases where the stated cause of an oil spill appears to be wrongly attributed to sabotage [by the local population]. In many other cases sabotage was listed as the cause when there was little or no data recorded to back up the claim.

Overall, Accufacts concluded that many official investigation reports were “technically incomplete”, and others “appear to be serving another agenda, more driven by politics…than pipeline forensic science”.  Nigeria’s under-resourced regulatory agencies have little oversight or control of the process and are dependent on the oil companies to carry out investigations.

In one incident, a regulator sent a student on work experience as their sole representative to an oil spill investigation.  “This is a system that is wide open to abuse – and abuse happens. There is no one to challenge the oil companies and almost no way to independently verify what they say. In effect it’s ‘trust us – we’re big oil,” said Gaughran.

Shell has made some improvements to its investigation reports since 2011, including the addition of images of oil spills on its corporate website. But serious flaws remain, including weaknesses in the underlying evidence used to attribute spills to sabotage.  Information listed in oil spill investigation reports determines whether oil companies are liable to pay compensation to affected communities.  Despite serious flaws, the reports are cited as evidence in litigation.

Amnesty International and CEHRD found evidence of Shell having changed the officially recorded cause of a spill after an investigation had taken place. In one incident, secretly filmed video of an investigation shows how officials from Shell and the regulator tried to subvert the evidence by persuading community members on the investigation team not to attribute the cause to equipment failure. Video footage of a leak from an oil spill in Bodo from 2008 reviewed by Accufacts shows that Shell seriously under-recorded the volume spilled.  Shell’s official investigation report claims only 1,640 barrels of oil were spilled in total but other evidence points to the amount being at least 60 times higher…

The report argues that companies should be legally liable for failure to take effective action to protect their systems, including from sabotage.

Amnesty International and CEHRD are calling on the oil companies to publish all investigation reports, associated photos and videos. They must provide verifiable evidence of the cause and damage to the impacted area.

Shell’s false claims on Niger Delta oil spills exposed, Amnesty International Press Release, Nov. 7, 2013

Illegal Dumping of Nuclear Waste: Turkey

A lead factory in the Aegean province of İzmir has been fined for 5.7 million Turkish Liras ($2.9 million) over allegations of burying high levels of radioactive waste in the land.  The penalty imposed on Aslan Avcı Casting Industry lead factory is the highest environment fine imposed in Turkey to date, Environment and Urban Planning official Mehmet Emin Birpınar told Anadolu Agency Oct. 28.

The site was brought to public attention when reports of the burying of radioactive waste under the ground surfaced, with over 10,000 tons of earth being placed on top of the waste.  The radioactivity levels called for proper containment of the waste, however, despite later reports by Turkey’s Atomic Energy Commission (TAEK), assuring normal levels of radioactivity in the area, the controversy continued to generate public debate.  Recently, new reports have emerged saying the color of the land covering the waste was becoming black, suggesting the radioactive wastes’ continuing to spread in environment through wind and rainfall.

Record fine imposed for radioactive waste burial in Turkey’s Aegean district, Hurriyet Daily News, Oct. 28, 2013

How nuclear waste accumulated in the factory? “Prof. Tolga Yarman from Okan University Faculty of Engineering explains the case: “This product is a nucleus called Europium 152 isotope. It is difficult to understand how this element can be found in Turkey. This is the major question. This product cannot be here just by itself; it must have come with other waste materials, especially with nuclear rods. But why and how can nuclear rods be here in Turkey? Who brought them? This is what we need to know. In addition, what did they melt in the factory together with the waste? They say it was unintentional, but it does not seem possible. This means that it is possible to imagine that the factory used radioactive material for its production. In that case, it is necessary to take under surveillance the production process. We are also facing a potential hazard caused by the products distributed from that company. We should immediately test some of the batteries produced in that factory.”

Mining Gold and Cyanide Pollution

The $4 billion that two Canadian companies, Barrick Gold and Goldcorp, have poured into developing Pueblo Viejo, a gold mine, since 2009 amounts to the largest single foreign investment in the history of the Dominican Republic. The companies say that the money has turned the polluted ruins of what was the state-owned Rosario mine, abandoned in 1999, into a “truly world-class” operation that should provide the country’s government with $10 billion over its 25-year life.

But the project has been controversial. Just weeks after the mining started in January 2013, President Danilo Medina, who was elected last year, declared: “For every $100 of gold exports, Barrick will receive $97 and the Dominican people $3. That is simply unacceptable.” (In fact, Pueblo Viejo Dominicana Corporation, or PVDC, the company operating the mine, is 60% owned by Barrick and 40% by Goldcorp.) Mr Medina demanded that the contract be renegotiated; otherwise, he said, he would raise taxes on the mine’s profits.

This month the two sides agreed to changes that have front-loaded tax payments and could see the government get an extra $1.3 billion in 2013-16 provided that the gold price rises and stays above $1,600 an ounce (it is now around $1,350). Gustavo Montalvo, Mr Medina’s chief of staff, tweeted: “Together we ensured that words like ‘national sovereignty’, ‘justice’ or ‘transparency’ were transformed into something more concrete.”

Yet that may not calm local unrest over the mine, sited about 100 kilometres (60 miles) north of Santo Domingo, the capital. The investment was presented by both the government and company as including a clean-up of Rosario’s toxic mess and the installation of systems to keep local watercourses clean. But residents are suing PVDC, claiming that the new mine is poisoning rivers, causing illnesses and the death of farm animals. They want the government to release the environmental-impact assessment for Pueblo Viejo, which it has so far refused to do.

One farmer, María de la Cruz Mariano, said that she began to suffer skin allergies and other ailments in 2010, after PVDC began work. Tests on her blood conducted by a private laboratory showed high levels of lead, sulphur, cyanide and zinc. Some of her cattle have died from bovine anaemia, which can be caused by ingesting cyanide. Other residents report that previously clean local rivers have become polluted since PVDC built a dam to collect water containing cyanide, which is used to leach gold from crushed rock.

PVDC has signed the international code of practice for the handling of cyanide. It says it is “in the process of capturing all the surface flows” from the old and the new mines, sending the water to storage ponds where it is treated. PVDC says that, together with local people, it conducts regular, public tests on water and air.

But community leaders say they have no knowledge of such tests. The company has not answered requests to provide the dates on which they were conducted. Tests by the environment ministry, released only after a freedom of information request, found the water in the Margajita river downstream from the mine to be highly acidic, as well as containing sulphides and copper above legal limits. The ministry has made little effort to act on these results.

The old Rosario mine left some streams red with acid. PVDC’s clean-up obligations extend only within the mine perimeter; the rest was for the government. The firm points out that it has paid $75m ($37.5m of it a loan) to finance the government’s share of the work. It has also removed around 130,000 cubic metres (4.6m cubic feet) of contaminated soil. But Demóstenes Martínez, a congressman from the ruling party, argues that PVDC is violating both the constitution and the mining law.

It is not clear whether the pollution is being caused by PVDC’s operations, or is a legacy of the past. The government claims to have lost records of past tests on the rivers. But on its own the new agreement may not be enough to ensure that the mine regains the consent of the community. That will require greater candour.

Mining in the Dominican Republic:  Sickness and wealth, Economist, Sept. 21, 2013

Breaking Up Toxic Ships – Pakistan

WWF-Pakistan has warned Pakistan against the import of a European ship, which is suspected to have burnt containers and cargo that may contain a substantial amount of hazardous materials such as heavy metals or PCBs.  Moreover, the vessel is suspected to carry dangerous substances in fire fighting water as well as a significant amount of fuels and oil. This container ship caught fire in July (2013) and was later towed to Port-Louis in Mauritius. (MV “HANSA BRANDENBURG”,).MV Hansa Brandenburg is a 2002-built Liberian-flagged container ship operated by the German shipping company Leonhardt & Blumberg.

WWF-Pakistan considers that this ship if imported to Pakistan may cause severe marine pollution in the Gadani area, which is already stressed because of a number of economic and industrial activities. Unplanned construction such as Fish harbour has already had serious environmental impact in the area, which is also designated as energy corridor and construction of power plants may have impact on the marine environment of the area unless proper mitigative measures are taken. According to WWF-Pakistan Technical Adviser (Marine Fisheries) Muhammad Moazzam Khan, the area of the Gadani is a part of Sonmiani, which is considered to have a rich marine biodiversity especially around Churna and Kaio islands. Dumping of toxic waste might seriously harm the fragile ecosystem of the area.

Agencies asked not to import vessel loaded with toxic chemicals, Daily Times (Pakistan) October 4, 2013

 

Shadow Oil Deals and Safe-Sex Transactions: Nigeria

Deals for oilfields can be as opaque as the stuff that is pumped from them. But when partners fall out and go to court, light is sometimes shed on the bargaining process—and what it exposes is not always pretty. That is certainly true in the tangled case of OPL245, a massive Nigerian offshore block with as much as 9 billion barrels of oil—enough to keep all of Africa supplied for seven years.

After years of legal tussles, in 2011 Shell, in partnership with ENI of Italy, paid a total of $1.3 billion for the block. The Nigerian government acted as a conduit for directing most of that money to the block’s original owner, a shadowy local company called Malabu Oil and Gas. Two middlemen hired by Malabu, one Nigerian, one Azerbaijani, then sued the firm separately in London—in the High Court and in an arbitration tribunal, respectively—claiming unpaid fees for brokering the deal.

The resulting testimony and filings make fascinating reading for anyone interested in the uses and abuses of anonymous shell companies, the dilemmas that oil firms face when operating in ill-governed countries and the tactics they feel compelled to employ to obfuscate their dealings with corrupt bigwigs. They also demonstrate the importance of the efforts the G8 countries will pledge to make, at their summit next week, to put a stop to hidden company ownership and to make energy and mining companies disclose more about the payments they make to win concessions. On June 12th the European Parliament voted to make EU-based resources companies disclose all payments of at least €100,000 ($130,000) on any project.

The saga of block OPL245 began in 1998 when Nigeria’s then petroleum minister, Dan Etete, awarded it to Malabu, which had been established just days before and had no employees or assets. The price was a “signature bonus” of $20m (of which Malabu only ever paid $2m).

The firm intended to bring in Shell as a 40% partner, but in 1999 a new government took power and two years later it cried foul and cancelled the deal. The block was put out to bid and Shell won the right to operate it, in a production-sharing contract with the national petroleum company, subject to payment of an enlarged signature bonus of $210m. Shell did not immediately pay this, for reasons it declines to explain, but began spending heavily on exploration in the block.

Malabu then sued the government. After much legal wrangling, they reached a deal in 2006 that reinstated the firm as the block’s owner. This caught Shell unawares, even though it had conducted extensive due diligence and had a keen understanding of the Nigerian operating climate thanks to its long and often bumpy history in the country. It responded by launching various legal actions, including taking the government to the World Bank’s International Centre for the Settlement of Investment Disputes.

Malabu ploughed on, hiring Ednan Agaev, a former Soviet diplomat, to find other investors. Rosneft of Russia and Total of France, among others, showed interest but were put off by Malabu’s disputes with Shell and the government. Things moved forward again when Emeka Obi, a Nigerian subcontracted by Mr Agaev, brought in ENI (which already owned a nearby oil block). After further toing and froing—and no end of meetings in swanky European hotels—ENI and Shell agreed in 2011 to pay $1.3 billion for the block. Malabu gave up its rights to OPL245 and Shell dropped its legal actions (see timeline).

The deal was apparently split into two transactions. Shell and ENI paid $1.3 billion to the Nigerian government. Then, once Malabu had signed away its rights to the block, the government clipped off its $210m unpaid signature bonus and transferred just under $1.1 billion to Malabu.  Tom Mayne of Global Witness, an NGO, has followed the case closely; he believes things were structured this way so that Shell and ENI could obscure their deal with Malabu by inserting a layer between them. Mr Agaev, Malabu’s former fixer, lends weight to this interpretation. It was, he says, structured to be a “safe-sex transaction”, with the government acting as a “condom” between the buyers and seller.

Oil companies in emerging markets: Safe sex in Nigeria, Economist, June 15, 2013, at 63

Air Pollution: the Palm Oil Conglomerates

 

Since the mid-1980s, when Indonesia first began to clear its bountiful forests on an industrial scale in favour of lucrative palm-oil plantations, “haze” has become an almost annual occurrence in South-East Asia. The cheapest way to clear logged woodland is to burn it, producing an acrid cloud of foul white smoke that, carried by the wind, can cover hundreds, or even thousands, of square miles.

The intervening decades have seen the passage of numerous national and international regulations to stop the fires, but all, it seems, to no avail. The past two weeks have seen some of the worst smog ever, taking a severe toll not only on peoples’ lungs, throats and tempers, but also on diplomatic relations and Indonesia’s attempts to improve its environmental image. Worse still, despite the outcry, it is hard to see how matters are going to improve over the next few years.

Most of the burning, which starts every dry season, is concentrated this year in Riau province on the east coast of Sumatra. Indonesia is the world’s biggest palm-oil producer and Riau its most productive province. Sadly for Singapore and Malaysia, it lies just across the Strait of Malacca from them. From June 16th Singapore and large parts of Malaysia were smothered in smog from this year’s fires.

In Singapore the pollution was the worst ever, pummelling the previous records set in 1997, when the haze affected six countries and perhaps 70m people. Then, the Pollutants Standard Index (PSI) in Singapore, a measure of air quality, hit a panic-inducing 226, defined as “very unhealthy”. On June 19th, by contrast (the day of the satellite picture above), the PSI climbed to over 300, defined as “hazardous”, before peaking at 401 on June 21st. The government issued face masks and almost everyone took its advice to stay indoors. Malaysia declared a state of emergency in parts of its southern state of Johor when the Air Pollution Index, only slightly different from Singapore’s PSI, exceeded 500; it reached 750 on June 23rd. Kuala Lumpur, the capital, and coastal cities were also badly affected, as was Riau province itself, where hundreds were evacuated.

Fraternal relations within the Association of South-East Asian Nations (ASEAN), the regional political grouping, quickly dissolved into acrimonious finger-pointing. Agung Laksono, the minister in charge of Indonesia’s response to the crisis, said that Singaporeans were behaving “like children, in such a tizzy”. Singaporeans and Malaysians pointed out that Indonesia was the only ASEAN member not to have ratified a 2002 Agreement on Transboundary Haze Pollution. It was only on June 24th, when the damage was done, that its president, Susilo Bambang Yudhoyono, apologised to his irate neighbours.

At least three laws in Indonesia prohibit the burning and clearance of forests, and in particular Sumatra’s extensive peat wetlands. But environmental campaigners argue that the government has never seriously enforced these laws. Despite the arrest in Sumatra this week of eight farmers, supposedly caught red-handed, hardly anyone has been successfully prosecuted over the years for lighting fires. Palm oil’s economic importance to Indonesia seems to afford the industry protection. Last year exports totalled $17.9 billion, second only to coal. Some 5m people live off the industry. These are big numbers in a relatively poor country.

About half of the vast amount of land on which the fires are burning in Sumatra belongs to big palm-oil conglomerates, many of them Malaysian-owned. They have been accused of setting illegal fires in the past, in order to clear more of their concessions for palm oil. Satellite imagery clearly shows fires burning on the land of some of them, and the Indonesian government has named eight companies that it wants to investigate. Even so, it is going to be very difficult to apportion blame. One company, Singapore-based Asia Pacific Resources International Limited, acknowledges that there have been three fires on its land, but claims these had “originally started outside of its concession area”.

Another perennial problem is corruption. This year’s disaster was preceded on June 14th by the arrest of Rusli Zainal, the governor of Riau since 2003. He was charged, among other crimes, with dishing out illegal logging permits to finance a forthcoming re-election campaign. Under the country’s political decentralisation in 2001, generally considered to be good for democracy, the power to regulate land use passed from Jakarta to regional and often district-level politicians. They have often abused this authority to raise money.

Much of the area now burning in Riau is peat wetland, almost all that’s left after years of rampant deforestation. Peat, which can go down to a depth of 30m in Sumatra, is highly combustible, even many metres down. A fire doused on the surface might smoulder underground long after. It is illegal to burn peat for commercial development. But as the past few weeks have proved, the law is not enough. And, ominously for those hoping for clear skies and clean air, a lot of peat is left.

South-East Asia’s smog: Unspontaneous combustion, Economist, June 29, 2013, at 39

Tracking Illegal Ivory: the Forensics

The atmospheric carbon left over from nuclear bomb testing could help scientists track poached ivory, new research has found.  These bomb tests changed the level of carbon in the atmosphere, which can be traced to date elephant tusks…Scientists say the findings, published in PNAS, could make it easier to enforce the ivory ban.The number of elephants being poached is now at the highest it has been for two decades, according to a UN backed report.  This was highlighted in January when a family of 11 elephants was slaughtered in Kenya, their tusks hacked off with machetes.

Traditional radiocarbon dating determines the age of ancient objects by measuring the amount of carbon-14 (C14).  The approximate time since an organism died can be measured from the amount of C14 left in its remains. But remains from after the Cold War contain higher levels of C14 due to the nuclear bombs.  In a new study Dr Uno and colleagues used this increase in carbon to date herbivore samples, which they matched to corresponding points on the bomb-curve

In the 1980s, more than half of Africa’s elephants are thought to have been wiped out by poachers. This led to an international ban on trading ivory in 1989….Scientists have found that radioactive carbon in the atmosphere emitted during the Cold War bomb tests will make it easier to distinguish between illegal ivory–that acquired after the 1989 ban– and legal ivory– that acquired before the 1989 trade ban.  The amount of radiocarbon in the atmosphere nearly doubled during nuclear weapons tests from 1952 to 1962, which steadily dropped after tests were restricted to underground. This has been dubbed “the bomb-curve”.

The levels have declined since but as they are still absorbed by plant, they enter the food chain and are measurable in plant and animal tissues.  The concentration of radiocarbon found in tiny samples of animal tissue can accurately determine the year of an animals death, from 1955 until today, Kevin Uno from Colombia University, US, explained to BBC News.  “This is different to the traditional dating technique which takes advantage of the loss of radiocarbon through time.”  Traditional radiocarbon dating would only be able to pick up an “imperceptible amount of decay” added Dr Uno, but because the bomb spike doubled the concentration or carbon, they were able to find huge variations over the last 60 years, which enabled accurate dating.Dr Uno said this technique “would dovetail very nicely with DNA testing which tells you the region of origin, but not the date”.  As anti-poaching funding is extremely limited, understanding where the poaching hotspots are, as well as how old the tusks are, could help the international community to direct funding to the places most at risk, he added…

These wildlife forensics are ready to roll, now we need to speak to the organisations who can set up a programme to make it happen.”

Excerpts, Melissa Hogenboom, Carbon from nuclear tests could help fight poacher, BBC News, July 1, 2013

Deforestation: Rubber Barons and their Bankers

Along Route 7 in Cambodia’s remote north, dozens of small tractors known as “iron buffaloes” are plying a dilapidated piece of highway. Under cover of darkness, they transport freshly cut timber into nearby sawmills. The drivers wear masks, their tractors fitted with just one dim lamp at the front. Each carries between three and six logs which locals say were felled illegally on or near the Dong Nai rubber plantation, owned by Vietnam Rubber Group (VRG).

Illegal logging and land-grabbing have long been problems in Cambodia. A new report entitled “Rubber Barons” by Global Witness, a London-based environmental watchdog, has highlighted the issue once again. Dong Nai features prominently in the report, which claims that luxury timbers like rosewood, much in demand for furniture in China and guitars in the West, were culled as a 3,000-hectare (7,400-acre) section of forest was illegally cleared.

Global Witness says that local and foreign companies have amassed more than 3.7m hectares of land in Cambodia and Laos since 2000, as governments have handed out huge land concessions, many in opaque circumstances. Two-fifths of this was for rubber plantations, dominated by state companies from Vietnam, the world’s third-largest rubber producer.

The report claims that VRG and another Vietnamese company, HAGL, are among the biggest land-grabbers, and have been logging illegally in both Cambodia and Laos. It says that, through Vietnam-based funds, the two companies have received money from Deutsche Bank, while HAGL also has investment from the IFC, the private-sector arm of the World Bank. The two Vietnamese companies have denied any wrongdoing. Deutsche Bank and the IFC say they are studying the findings.

The report says that the two companies have failed to consult local communities or pay them compensation for land they formerly used. The companies routinely use armed security forces to guard plantations. Large areas of supposedly protected intact forest have been cleared, in violation of forest-protection laws and “apparently in collusion with Cambodia’s corrupt elite”.

Global Witness is urging authorities in Cambodia and Laos to revoke the two companies’ land concessions, which cover 200,000 hectares and are held through a network of subsidiaries. It thinks both companies should be prosecuted.

Logging in South-East Asia: Rubber barons, Economist, May 18, 2013

See also Bankers with Chainsaws

 

A Love Affair with Iran: Glencore and Trafigura

Glencore, a commodity trading house run by the billionaire Ivan Glasenberg, traded $659m (£430m) of goods, including aluminium oxide, to Iran last year, the Guardian has established.  The company…has admitted that some of its aluminium oxide ended up in the hands of Iranian Aluminium Company (Iralco).  Trafigura, another commodity trading house, has also admitted to trading an unspecified aluminium oxide (also known as alumina) with Iralco in the past.

The International Atomic Energy Agency has named Iralco as supplying aluminium to Iran Centrifuge Technology Company (Tesa), which is part of the Atomic Energy Organisation of Iran (AEOI). Aluminium oxide is an important material in gas centrifuges used to enrich uranium.  At the time of the Glencore and Trafigura trades with Iralco, it was not illegal or a breach of sanctions to supply Iran with alumina. It is unknown whether Glencore or Trafigura’s alumina passed from Iralco to Tesa, or whether it was used in centrifuge construction.

Since 2006, AEOI has been subject to UN sanctions designed to prevent Iran’s nuclear armament ambitions. Trading with Tesa has been specifically banned under US, EU and UK sanctions since July 2010. Iralco was added to the EU sanctions list in December 2012.  Glencore said it “ceased transactions” with Iralco immediately when it learned of its links with Tesa, and the last trade was in October 2012. “Prior to EU sanctions in December 2012, we were not aware of a link/contract between Iralco and Tesa,” the company said in a statement.  Glencore said it is “reliant on the relevant regulatory bodies/governments to advise us on developments in who we can/can’t do business with”.

Tehran, which some experts say already has enough enriched uranium to make several nuclear weapons, is in the middle of upgrading its stock of more than 10,000 centrifuges. The IAEA said Iran is replacing outdated centrifuges with thousands of more powerful IR-2m models.  Experts at the Institute for Science and International Security (Isis) in London said: “Iran is trying to replace maraging [super-strong] steel end-caps with high strength aluminium end-caps.”  Mark Fitzpatrick, director of Isis’s nonproliferation and disarmament programme, said the new centrifuges could enrich uranium four to five times faster than the existing ones. Iran insists its enriched material is for peaceful use, not for nuclear weapons, but it has refused to allow IAEA inspectors into several of its atomic facilities.

The Guardian has learned that Glencore traded $659m worth of metals, wheat and coal with Iranian entities during 2012. Buried deep in its annual report, one of Glencore’s US affiliates, Century Aluminium, 46% owned by Glencore, states: “During 2012 non-US affiliates of the largest stockholder of the company [Glencore] entered into sales contracts for wheat and coal as well as sale and purchase contracts for metal oxides and metals with Iranian entities, which are either fully or majority owned by the GOI [government of Iran].”…..

Trafigura, which came to global political attention when it was revealed that a licensed independent contractor of a ship it had chartered dumped tonnes of toxic oil slops in Ivory Coast, said: “We can confirm that Trafigura has traded with Iralco in the past. In October 2011, a physical swap agreement was reached whereby Trafigura provided alumina to Iralco in return for aluminium for Trafigura to export worldwide. No deliveries have been made or exports received since new EU sanctions were published in December 2012.

Excerpts, Rupert Neate, Glencore traded with Iranian supplier to nuclear weapon’s programme, Guardian,  Apr. 21, 2013

Bankers with Chainsaws – logging companies and their banks

Some big banks do little more than pay lip service to environmental issues. HSBC likes to think of itself as different. It has signed up to many initiatives, including the Equator Principles, a set of social and environmental standards launched in 2003 for project financiers….

Sarawak (Malaysia) has lost more than 90% of its “primary” forests to logging and has the fastest rate of deforestation in Asia. Sarawak has only 0.5% of the world’s tropical forest but accounted for 25% of tropical-log exports in 2010. As timber stocks have become depleted, the loggers have moved into the palm-oil business, clearing peat-swamp forests to make way for plantations. The deforestation has been accompanied by abuses against indigenous groups, including harassment and illegal evictions. Allegations of corruption and abuse of public office dog Abdul Taib Mahmud, Sarawak’s chief minister, finance minister and planning-and-resources minister, who is believed to have firm control over the granting of logging licences. Mr Taib has long denied being corrupt.

Global Witness, a campaigning group, has analysed the publicly available financial records of seven of Sarawak’s largest logging and plantation companies.  It identified loans and other financial services from HSBC that it estimates have generated at least $116m in interest payments and $13.6m in fees for the bank since 1977. Although lending has declined over the past decade, HSBC continues to list Sarawak loggers among its clients, in apparent violation of its own Forest Land and Forest Products Sector Policy.

On paper HSBC’s forest policy gets high marks, including from BankTrack, a network of NGOs that monitors lenders. When it was drawn up in 2004, the policy required clients to have 70% of their activities certified by the Forest Stewardship Council (FSC), or equivalent, by 2009, with evidence that the remainder was legal. (The FSC is a global non-profit body that sets standards and does independent certification for logging and forest products.)

Not only did the seven firms analysed fail to meet that deadline, but none has any FSC-certified operations today. Ta Ann Holdings, for example, listed HSBC as a “principal banker” in its 2011 annual report. Ta Ann does not have FSC certification, and has failed to obtain full verification of the legality of its Sarawak concession under the independent “Verified Legal Origin” scheme. The firm has been accused of clear-felling rainforest that is home to endangered orangutan and of cutting down conservation forest for plantations. Ta Ann told Global Witness it is “collaborating closely with HSBC towards achieving full compliance” with its forest policy.

Another forestry conglomerate that is still banking with HSBC, according to its annual report, is WTK Holdings, whose intensive logging is widely believed by pressure groups to have caused landslides that ended up blocking a 50km (31-mile) stretch of river in 2010. None of WTK’s operations is FSC-certified.

In all, Global Witness identified six loans, totalling $25m, made by HSBC to non-compliant Sarawak loggers since the bank introduced its forest policy. HSBC said in 2004 that it would stop doing business with clients that failed to make a reasonable effort to comply by 2009.  The Economist asked HSBC to comment. The bank declined to discuss its clients because of confidentiality, but said it is “not accurate” to state that its clients are in violation of its forestland and forest-products policy. It said current data show that 99% of its forest-sector clients worldwide (by size of lending) are “compliant” or “near-compliant” with its policy. What precisely it means by “near-compliant” is unclear…..HSBC’s  continued involvement, however modest, allows logging firms to claim credentials they don’t deserve. Ta Ann, for instance, has run adverts saying it holds forest-policy certification from HSBC. That looks like a figleaf.

Deforestation in Sarawak: Log tale, Economist, Nov. 3, 2012, at 75