Category Archives: Markets

Better Alive than Dead: The Crocodile Trade

Around 6m tonnes of bush meat are thought to come out of the Congo Basin each year… The trade has emptied out parts of the forest; 39% of it is at severe risk of over-hunting, the study says. Everything from bonobos (an endangered species of ape) to cobras, antelopes and, occasionally, elephants, appear at market stalls in Mbandaka.

Over-hunting has made life more dangerous for crocodile hunters. The number of dwarf crocodiles, once common in the Congo river, is dwindling. So hunters have to chase the ferocious Nile crocodile instead. There are plenty of those. Their scaly bodies stretch to six metres and they often kill humans. Stalkers in canoes go after them at night, shining a torch while stirring the water. “The crocodile does not like that,” says Mr Nyalowala. “He begins to writhe and then comes to attack.” As the animal pounces so do its pursuers, spearing it.

A live crocodile fetches more than a dead one in the markets in Mbandaka, so hunters bind their jaws and transport them some 200km downstream in their canoes. They sell for around $150 each. A teacher at a state school, by comparison, earns around $170 a month, though many did not get paid at all last year.

Croc in the pot: The toils and spoils of Congo’s crocodile-killers, Economist, Mar. 19, 2020

Sewers: Turning Wastewater into a Valuable Resource

The world’s growing flows of wastewater offer a largely untapped, potentially lucrative source of energy, agricultural fertilizers, and water for irrigation. The opportunities will increase as the annual volume of wastewater—now 380 billion cubic meters—expands by an estimated 51% by 2050, as populations and incomes multiply, says a team led by researchers at United Nations University’s Institute for Water, Environment, and Health. About 13% of global demand for fertilizer could be met by recovering nitrogen, phosphorus, and potash from wastewater; such use provides a bonus, diverting nutrients from waterways, where they can create harmful eutrophication. Sewage also offers an alternative energy source…..

Reaping Resources from Sewers, Science, Feb. 7, 2020

Human and Environmental Costs of Low-Carbon Technologies

Substantial amounts of raw materials will be required to build new low-carbon energy devices and infrastructure.  Such materials include cobalt, copper, lithium, cadmium, and rare earth elements (REEs)—needed for technologies such as solar photovoltaics, batteries, electric vehicle (EV) motors, wind turbines, fuel cells, and nuclear reactors…  A majority of the world’s cobalt is mined in the Democratic Republic of Congo (DRC), a country struggling to recover from years of armed conflict…Owing to a lack of preventative strategies and measures such as drilling with water and proper exhaust ventilation, many cobalt miners have extremely high levels of toxic metals in their body and are at risk of developing respiratory illness, heart disease, or cancer.

In addition, mining frequently results in severe environmental impacts and community dislocation. Moreover, metal production itself is energy intensive and difficult to decarbonize. Mining for copper,and mining for lithium has been criticized in Chile for depleting local groundwater resources across the Atacama Desert, destroying fragile ecosystems, and converting meadows and lagoons into salt flats. The extraction, crushing, refining, and processing of cadmium can pose risks such as groundwater or food contamination or worker exposure to hazardous chemicals. REE extraction in China has resulted  threatens rural groundwater aquifers as well as rivers and streams.

Although large-scale mining is often economically efficient, it has limited employment potential, only set to worsen with the recent arrival of fully automated mines. Even where there is relative political stability and stricter regulatory regimes in place, there can still be serious environmental failures, as exemplified by the recent global rise in dam failures at settling ponds for mine tailings. The level of distrust of extractive industries has even led to countrywide moratoria on all new mining projects, such as in El Salvador and the Philippines.

Traditional labor-intensive mechanisms of mining that involve less mechanization are called artisanal and small-scale mining (ASM). Although ASM is not immune from poor governance or environmental harm, it provides livelihood potential for at least 40 million people worldwide…. It is also usually more strongly embedded in local and national economies than foreign-owned, large-scale mining, with a greater level of value retained and distributed within the country. Diversifying mineral supply chains to allow for greater coexistence of small- and large-scale operations is needed. Yet, efforts to incorporate artisanal miners into the formal economy have often resulted in a scarcity of permits awarded, exorbitant costs for miners to legalize their operations, and extremely lengthy and bureaucratic processes for registration….There needs to be a focus on policies that recognize ASM’s livelihood potential in areas of extreme poverty. The recent decision of the London Metals Exchange to have a policy of “nondiscrimination” toward ASM is a positive sign in this regard.

A great deal of attention has focused on fostering transparency and accountability of mineral mining by means of voluntary traceability or even “ethical minerals” schemes. International groups, including Amnesty International, the United Nations, and the Organisation for Economic Co-operation and Development, have all called on mining companies to ensure that supply chains are not sourced from mines that involve illegal labor and/or child labor.

Traceability schemes, however, may be impossible to fully enforce in practice and could, in the extreme, merely become an exercise in public relations rather than improved governance and outcomes for miners…. Paramount among these is an acknowledgment that traceability schemes offer a largely technical solution to profoundly political problems and that these political issues cannot be circumvented or ignored if meaningful solutions for workers are to be found. Traceability schemes ultimately will have value if the market and consumers trust their authenticity and there are few potential opportunities for leakage in the system…

Extended producer responsibility (EPR) is a framework that stipulates that producers are responsible for the entire lifespan of a product, including at the end of its usefulness. EPR would, in particular, shift responsibility for collecting the valuable resource streams and materials inside used electronics from users or waste managers to the companies that produce the devices. EPR holds producers responsible for their products at the end of their useful life and encourages durability, extended product lifetimes, and designs that are easy to reuse, repair, or recover materials from. A successful EPR program known as PV Cycle has been in place in Europe for photovoltaics for about a decade and has helped drive a new market in used photovoltaics that has seen 30,000 metric tons of material recycled.

Benjamin K. Sovacool et al., Sustainable minerals and metals for a low-carbon future, Science, Jan. 3, 2020

Beauty Secrets: Donkeys Exterminated for their Skin Collagen

Over the past 6 years, Chinese traders have been buying the hides of millions of butchered donkeys from developing countries and shipping them to China, where they’re used to manufacture ejiao, a traditional Chinese medicine… Ejiao, in use for thousands of years, purportedly treats or prevents many problems, including miscarriage, circulatory issues, and premature aging, although no rigorous clinical trials support those claims. The preparation combines mineral-rich water from China’s Shandong province and collagen extracted from donkey hides, traditionally produced by boiling the skins in a 99-step process. Once reserved for China’s elites, ejiao is now marketed to the country’s booming middle class, causing demand to surge

Despite government incentives for new donkey farmers, farms in China can’t keep up with the exploding demand, which the Donkey Sanctuary currently estimates at 4.8 million hides per year. Donkeys’ gestation period is one full year, and they only reach their adult size after 2 years. So the industry has embarked on a frenzied hunt for donkeys elsewhere. This has triggered steep population declines. In Brazil, the population dropped by 28% between 2007 and 2017, according to the new report.

African populations are crashing, too, says Philip Mshelia, an equine veterinarian and researcher at Ahmadu Bello University in Zaria, Nigeria. After buying donkeys at markets, traders often drive large herds to slaughter, sometimes covering hundreds of kilometers with no rest, food, or water. Those transported by truck fare worse: Handlers tie their legs together and sling them onto piles or strap them to the top of the truck, Mshelia says. Animals that survive the journey—many with broken or severed limbs—are unloaded by the ears and tails and tossed in front of a slaughterhouse. Some meet their end in an open field where humans await them with hammers, axes, and knives.

For donkey owners, selling their animal means quick cash—now more than $200 in parts of Africa…

Ironically, the booming ejiao trade, along with a developing donkey dairy industry in Eastern Europe, has stirred scientific interest in donkeys.  Zhen Shenming, a reproductive biologist at the China Agricultural University in Beijing, says Chinese efforts are focused on increasing yields, for instance through artificial insemination…Chinese breeders are also testing new nutrition programs that expedite growth, leading to an adult-size donkey in only 18 months…

“They are very observant and sentient animals, and they create very strong bonds with other donkeys.” That’s one reason the current slaughtering practice, in which the animals often await their turn while watching other donkeys being beaten unconscious, slaughtered, and skinned is abhorrent.  “They’re certainly quite well aware of what’s happening and what’s to come,” McLean says. 

Excerpts from Christa Lesté-Lasserre Donkeys face worldwide existential threat, Science,  Dec. 13, 2019

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

540 Katrina Oil Spills Equal an Exxon Valdez Disaster

The federal agency overseeing oil and gas operations in the Gulf of Mexico after hurricane Katrina reported that more than 400 pipelines and 100 drilling platforms were damaged. The U.S. Coast Guard, the first responder for oil spills, received 540 separate reports of spills into Louisiana waters. Officials estimated that, taken together, those leaks released the same amount of oil that the highly publicized 1989 Exxon Valdez disaster spilled into Alaska’s Prince William Sound — about 10.8 million gallons…

While hurricanes gain speed due to the effects of climate change, the push for oil leasing in the Gulf of Mexico shows no sign of slowing down. In 2014, the Obama administration opened up 40 million new acres in the Gulf for oil and gas development. Four years later, the Trump administration announced plans to open up most of the rest, in what would be the largest expansion of offshore oil and gas drilling in U.S. history. Many of these 76 million acres are to be offered at reduced royalty rates to encourage additional near-shore drilling in Louisiana waters…

“In the Gulf, storms are predicted to be less frequent but more intense when they do come,” said Sunshine Van Bael, an ecologist at Tulane University who evaluated damage to marsh ecosystems from the BP oil spill. “One thing that storms do is, if oil has been buried underneath the marsh because it wasn’t rehabilitated, a storm could come along and whip that back up to the surface. So, the aftereffects of the oil spills might be greater [with climate change] since the storms are predicted to be more intense.”…

In 2009, a class-action lawsuit against Murphy Oil Corp. ended in a settlement requiring the company to pay $330 million to 6,200 claimants, including owners of about 1,800 homes in St. Bernard Parish. The damage occurred when one of Murphy’s storage tanks floated off its foundation during Katrina and dumped over a million gallons of crude oil into a square-mile segment of Meraux and Chalmette….

To date, more than $19 million has been paid out from the federal Oil Spill Liability Trust Fund to reimburse at least two oil companies for costs they incurred cleaning up oil they spilled during Katrina…

“We don’t normally penalize [companies] for act of God events,” Greg Langley of the Department of Environmental Quality said. “We just get right to remediation.”

Excerpts from Joan Meiners, How Oil Companies Avoided Environmental Accountability After 10.8 Million Gallons Spill, ProPublica, Dec. 27, 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