Tag Archives: environmental law

100 Ways to Finance Criminal Cartels Logging Forests

The report – Green Carbon, Black Trade (2012) – by UNEP and INTERPOL focuses on illegal logging and its impacts on the lives and livelihoods of often some of the poorest people in the world set aside the environmental damage. It underlines how criminals are combining old fashioned methods such as bribes with high tech methods such as computer hacking of government web sites to obtain transportation and other permits. The report spotlights the increasingly sophisticated tactics being deployed to launder illegal logs through a web of palm oil plantations, road networks and saw mills. Indeed it clearly spells out that illegal logging is not on the decline, rather it is becoming more advanced as cartels become better organized including shifting their illegal activities in order to avoid national or local police efforts. By some estimates, 15 per cent to 30 per cent of the volume of wood traded globally has been obtained illegally…

The much heralded decline of illegal logging in the mid- 2000s in some tropical regions was widely attributed to a short-term law enforcement effort. However, long-term trends in illegal logging and trade have shown that this was temporary, and illegal logging continues. More importantly, an apparent decline in illegal logging is due to more advanced laundering operations masking criminal activities, and notnecessarily due to an overall decline in illegal logging. In many cases a tripling in the volumes of timber “originating” from plantations in the five years following the law enforcement crack-down on illegal logging has come partly from cover operations by criminals to legalize and launder illegal logging operations….

Much of the laundering of illegal timber is only possible due to large flows of funding from investors based in Asia, the EU and the US, including investments through pension funds. As funds are made available to establish plantations operations to launder illegal timber and obtain permits illegally or pass bribes, investments, collusive corruption and tax fraud combined with low risk and high demand, make it a highly profitable illegal business, with revenues up to 5–10 fold higher than legal practices for all parties involved. This also undermines subsidized alternative livelihood incentives available in several countries.

[It is important to discourage] the use of timber from these regions and introducing a rating og companies based on the likelihood of their involvement in illegal practices to discourage investors and stock markets from funding them.

Excerpts from Nellemann, C., INTERPOL Environmental Crime Programme (eds). 2012.Green Carbon, Black Trade Illegal Logging, Tax Fraud and Laundering in the Worlds Tropical Forests. A Rapid Response Assessment United Nations Environment Programme

Multinational Corporations in US Courts: Kiobel v. Shell

The Alien Tort Statute (ATS)… grants American district courts jurisdiction over “any civil action by an alien for a tort only, committed in violation of the law of nations or of a treaty of the United States”. At the age of 190 it sprang back to life on April 6th 1979, when it was used to allow two Paraguayans to sue a former Paraguayan policeman in an American court for acts of torture committed in Paraguay.Since then, roughly 150 lawsuits have been filed against American and foreign corporations for actions committed around the world. Four local plaintiffs used the ATS to sue Unocal in a federal court in Los Angeles for human-rights violations allegedly committed during the construction of an oil pipeline in Myanmar. A human-rights organisation used it to sue Yahoo on behalf of two Chinese democracy activists for actions committed in China by a subsidiary. ATS suits against DaimlerChrysler and Rio Tinto, among others, are pending. Though most ATS cases have been dismissed or settled, the costs of settlements can be high and the negative publicity damaging.

Multinational companies will therefore cheer the Supreme Court’s unanimous decision in Kiobel v Royal Dutch Petroleum (Shell), released on April 17th, 2013. It dramatically limits the ability of plaintiffs to file suit against corporations in American courts for actions committed abroad.  The ruling stems from a case brought in New York by 12 Nigerian plaintiffs living in America. They allege that Shell was complicit in human-rights violations—including murder, rape, theft and destruction of property—committed by Nigeria’s armed forces in the region of Ogoniland. A federal appeals court dismissed their suit, arguing that the ATS provides no grounds for corporate-liability lawsuits. But as the 150 ATS suits show, other courts have disagreed. The Supreme Court agreed to hear the case in order to settle the question.

In an earlier ruling, in 2004, the court cautiously ruled that the ATS permitted lawsuits for “a modest number of international law violations”, such as piracy and crimes involving ambassadors, which would have been recognised when it was adopted. The court’s Kiobel ruling goes much further. It holds that the ATS does not apply to actions committed by foreign companies, and noted a strong presumption against applying American law outside the United States, “There is no indication,” wrote John Roberts, the chief justice, “that the ATS was passed to make the United States a uniquely hospitable forum for the enforcement of international norms”.  In a separate concurrence, four of the court’s liberals took a slightly softer tack, arguing that the ATS should allow suits that prevent America from becoming “a safe harbour…for a torturer or other common enemy of mankind”. But that reasoning still does not permit foreign nationals to use American courts to sue foreign companies for acts committed on foreign soil.

Extraterritoriality: The Shell game ends, Economist, Apr. 20, 2013, at 34

It Can Cost Your Life: Shipping Minerals

A dark underbelly exists in Indonesia’s thriving trade with China. Since late 2010 five ships loaded with Indonesian minerals have sunk when bound for China, with huge loss of life. Little has been done to break the deadly trend. Indeed, plenty of interests have an incentive to hush it up. The latest ship to founder is the Harita Bauxite, a bulk carrier which sank on February 17th near the Philippines. Of its 24 crew, who were all or mainly from Myanmar, ten were rescued, one of whom later died. Fourteen were still missing when the search was called off two weeks later.

The vessel is thought to have been carrying nickel ore, a potentially deadly cargo, loaded on Obi island in the remote Indonesian province of Muluku and destined for China’s steel mills. In terms of the global bulk trade, shipments of nickel ore from Indonesia to China are tiny: just 2m-3m tonnes out of more than 4 billion tonnes of bulk goods carried each year on over 9,000 vessels. Yet this backwater trade accounted for four of the 20 bulk freighters lost worldwide during 2010-11, and for 66 of 82 deaths, according to Intercargo, an association of ship owners.

ll four ships were found to have sunk because the cargo had liquefied. Nickel ore is dangerous because if it gets too wet, the fine, claylike particles that are often present in the ore turn the cargo to a liquid gloop that sloshes about the holds with such momentum that even a giant ship can capsize. The four ships had loaded during Indonesia’s rainy season. The ore is typically stockpiled in the open. Quite how the Harita Bauxite foundered is not yet clear, but if liquefaction was a factor, as many in the shipping industry suspect, it will have been another entirely avoidable tragedy.

Preventing liquefaction should be fairly simple. It involves checking the moisture content of susceptible commodities. If they are too wet, a surveyor will deem the cargo unsafe and not to be loaded. Time and again in Indonesia, checks have been inadequate. With the bulk-shipping business in the doldrums, the profitable nickel trade is a siren call for ship owners and charterers. Indonesia’s ministers and mandarins in Jakarta, the capital, refuse to comment on the tragedies and have done little to tighten policing at faraway ports in Sulawesi, Muluku and Papua.

Ship captains report intimidation by miners and agents if they refuse to accept cargo. A leading marine insurer says the ports’ remoteness makes it hard to sample cargoes reliably. Local officials turn a blind eye to unsafe practices. Peter Lundahl Rasmussen at Bimco, a maritime association, says surveyors trying to do their job have been assaulted or arrested.

With insurance claims mounting, shipping bodies and insurers have issued plenty of instructions about how to load nickel ore safely, especially in Indonesia. The International Maritime Organisation (IMO), the UN agency responsible for shipping safety, is also taking steps to tighten the regulations for commodities that can suffer liquefaction.

But the IMO’s process is a glacial one, and the new rules will not clear its various committees and be promulgated until at least 2015. Even then, the organisation relies on its members to enforce regulations. In Indonesia, in other words, the impact of tighter rules may be minimal. Moreover, existing and planned legislation covers ore depots and the ports, but not the transit between the two, where rain may do its dangerous work. Steve Cameron at RTI, a risk consultancy, argues that it would be more effective if mining companies faced charges of corporate manslaughter for not ensuring that their ore reaches ships in good condition.

Shipping: Deadly Trade, Economist, Mar. 23, 2013, at 46.

 

Haunted by Sellafield, nuclear waste storage in the UK

The government’s long-term hopes of burying nuclear waste in the UK has suffered a major blow after Cumbria county council voted against plans for a £12bn underground site.  Three local authorities – Cumbria county council, Allerdale borough council and Copeland borough council – were set to vote on the search for a site, which would have been the first of its kind in the UK.

Copeland borough councillors voted six-to-one in favour of moving to onto the next stage of the search process. But Cumbria county council took an opposing view, rejecting the proposals by seven votes to three, and in the process ending the county council’s four-year formal involvement in the consultation process.  “As a decision to continue with the process needed the agreement of both the district and county councils, Cumbria county council’s decision has removed both districts from consideration,” councillors said in a statement. The vote triggered huge cheers from environmental campaigners outside the council chamber in Carlisle.

Ed Davey, Secretary of State for Energy and Climate Change, said the decision was “disappointing”….

More than 32,000 people had signed a petition against the £12bn underground storage facility.However, the issue of how to handle nuclear waste remains live in Cumbria.  Sellafield’s nuclear storage facilities remain the largest in the UK, and the ten members of the county council’s cabinet also agreed that the council will encourage the Government to invest in improvements to the existing surface storage facilities at the site while a permanent solution for the country’s higher activity radioactive waste is found.

Campaigners {West Cumbria Friends of the Earth, Greenpeace) argued the underground dump would harm the Lake District national park and its tourism industry. They also claim that studies show Cumbria’s geology is unlikely to be safe for radioactive waste.

Excerpts, Cumbria rejects radioactive waste disposal programme, http://www.channel4.com/news/, Jan. 30, 2012

Rare Earths Pollution: Australia, Malaysia and Lynas Corp.

According to the Oeko Institute, a non-profit association: The facility for refining Australian ore concentrate rich in rare earth metals of Lynas Corporation in Malaysia has several deficiencies concerning the operational environmental impacts. The environment is affected by acidic substances as well as from dust particles, which are emitted into the air in substantially larger concentrations than would be state-of-the-art in off-gas treatment in Europe. The storage of radioactive and toxic wastes on site does not prevent leachate from leaving the facility and entering ground and groundwater. For the long-term disposal of wastes under acceptable conditions concerning radiation safety a sustainable concept is still missing. These are the results of a study of Oeko-Institute on behalf of the Malaysian NGO SMSL.

In its facility in Kuantan/Malaysia Lynas refines ore concentrate for precious rare earth metals. These strategic metals are applied for example to produce catalysts…The ore concentrate to be refined in Malaysia additionally contains toxic and radioactive constituents such as Thorium. The NGO commissioned Oeko-Institute to check whether the processing of the ore leads to hazardous emissions from the plant or will remain as dangerous waste in Malaysia.

Storage of wastes insufficient

The storage of wastes, that are generated in the refining process, shall be stored in designated facilities on the site, separately for three waste categories. According to chemist and nuclear waste expert Gerhard Schmidt, there will be problems with the pre-drying of wastes that is of a high Thorium content. “Especially in the wet and long monsoon season from September to January, this emplacement process doesn’t work”, says Schmidt. “The operator has not demonstrated how this problem can be resolved without increasing the radiation doses for workers”.

Additionally the storages are only isolated with a one-millimeter thick plastic layer and a 30 cm thick clay layer. This is insufficient to reliably enclose the several meters high and wet waste masses. “For the long-term management of these wastes Lynas has urgently to achieve a solution”, claims Gerhard Schmidt, and adds: “in no case those wastes should be marketed or used as construction material, as currently proposed by the operator (Lynas) and the regulator (AELB/MOSTI). According to our calculations this would mean to pose high radioactive doses to the public via direct radiation”.

One of the most serious abnormalities is that in the documents relevant data is missing, which prevents reliably accounting for all toxic materials introduced”, says project manager Gerhard Schmidt. “So it is not stated which and to what amount toxic by-products, besides Thorium, are present in the ore concentrate. Also in the emissions of the facility via wastewater only those constituents are accounted for that are explicitly listed in Malaysian water regulation, but not all emitted substances.” The salt content of the wastewater is as high that it is comparable to seawater. This is discharged without any removal into the river Sungai Balok.

The scientists at Oeko-Institute evaluate the detected deficiencies as very serious. Those deficiencies should have been already detected in the licensing process, when the application documents were being checked. However the operator received a construction license in 2008 and a temporary operating license in 2012.

Especially for the safe long-term disposal of the radioactive wastes a suitable site that meets internationally accepted safety criteria has to be selected urgently. A consensus has to be reached with the affected stakeholders, such as the local public and their representatives. “If it further remains open how to manage those wastes in a long-term sustainable manner, a future legacy associated with unacceptable environmental and health risks is generated”, considers Schmidt. “The liability to prevent those risks and to remove the material is so shifted to future generations, which is not acceptable.”

Rare earths are important metals that are used in future technologies such as efficient electro motors, lighting and catalysts. In its study from 2011 “Study on Rare Earths and Their Recycling” Oeko-Institute showed that no relevant recycling of these metals is performed so far. Albeit recent positive developments in this direction: satisfying the prognosticated global requires the extension of the worldwide primary production.

Rare earth refining in Malaysia without coherent waste management concept, Oeko Institute Press Release, Jan. 28, 2013

See also  Oeko Report on Lynas (pdf)e

The Desert at the Heart of the Amazon Rainforest

An area of the Amazon rainforest twice the size of California continues to suffer from the effects of a megadrought that began in 2005, finds a new NASA-led study. These results, together with observed recurrences of droughts every few years and associated damage to the forests in southern and western Amazonia in the past decade, suggest these rainforests may be showing the first signs of potential large-scale degradation due to climate change.

An international research team led by Sassan Saatchi of NASA’s Jet Propulsion Laboratory, Pasadena, Calif., analyzed more than a decade of satellite microwave radar data collected between 2000 and 2009 over Amazonia. The observations included measurements of rainfall from NASA’s Tropical Rainfall Measuring Mission and measurements of the moisture content and structure of the forest canopy (top layer) from the Seawinds scatterometer on NASA’s QuikScat spacecraft.

The scientists found that during the summer of 2005, more than 270,000 square miles (700,000 square kilometers, or 70 million hectares) of pristine, old-growth forest in southwestern Amazonia experienced an extensive, severe drought. This megadrought caused widespread changes to the forest canopy that were detectable by satellite. The changes suggest dieback of branches and tree falls, especially among the older, larger, more vulnerable canopy trees that blanket the forest.

While rainfall levels gradually recovered in subsequent years, the damage to the forest canopy persisted all the way to the next major drought, which began in 2010. About half the forest affected by the 2005 drought – an area the size of California – did not recover by the time QuikScat stopped gathering global data in November 2009 and before the start of a more extensive drought in 2010.

“The biggest surprise for us was that the effects appeared to persist for years after the 2005 drought,” said study co-author Yadvinder Malhi of the University of Oxford, United Kingdom. “We had expected the forest canopy to bounce back after a year with a new flush of leaf growth, but the damage appeared to persist right up to the subsequent drought in 2010.”

Recent Amazonian droughts have drawn attention to the vulnerability of tropical forests to climate change. Satellite and ground data have shown an increase in wildfires during drought years and tree die-offs following severe droughts. Until now, there had been no satellite-based assessment of the multi-year impacts of these droughts across all of Amazonia. Large-scale droughts can lead to sustained releases of carbon dioxide from decaying wood, affecting ecosystems and Earth’s carbon cycle.

The researchers attribute the 2005 Amazonian drought to the long-term warming of tropical Atlantic sea surface temperatures. “In effect, the same climate phenomenon that helped form hurricanes Katrina and Rita along U.S. southern coasts in 2005 also likely caused the severe drought in southwest Amazonia,” Saatchi said. “An extreme climate event caused the drought, which subsequently damaged the Amazonian trees.”

Saatchi said such megadroughts can have long-lasting effects on rainforest ecosystems. “Our results suggest that if droughts continue at five- to 10-year intervals or increase in frequency due to climate change, large areas of the Amazon forest are likely to be exposed to persistent effects of droughts and corresponding slow forest recovery,” he said. “This may alter the structure and function of Amazonian rainforest ecosystems.”

The team found that the area affected by the 2005 drought was much larger than scientists had previously predicted. About 30 percent (656,370 square miles, or 1.7 million square kilometers) of the Amazon basin’s total current forest area was affected, with more than five percent of the forest experiencing severe drought conditions. The 2010 drought affected nearly half of the entire Amazon forest, with nearly a fifth of it experiencing severe drought. More than 231,660 square miles (600,000 square kilometers) of the area affected by the 2005 drought were also affected by the 2010 drought. This “double whammy” by successive droughts suggests a potentially long-lasting and widespread effect on forests in southern and western Amazonia.

The drought rate in Amazonia during the past decade is unprecedented over the past century. In addition to the two major droughts in 2005 and 2010, the area has experienced several localized mini-droughts in recent years. Observations from ground stations show that rainfall over the southern Amazon rainforest declined by almost 3.2 percent per year in the period from 1970 to 1998. Climate analyses for the period from 1995 to 2005 show a steady decline in water availability for plants in the region. Together, these data suggest a decade of moderate water stress led up to the 2005 drought, helping trigger the large-scale forest damage seen following the 2005 drought…

Results of the study were published recently in the Proceedings of the National Academy of Sciences. Other participating institutions included UCLA; University of Oxford, United Kingdom; University of Exeter, Devon, United Kingdom; National Institute for Space Research, Sao Jose dos Campos, Sao Paulo, Brazil; Boston University, Mass.; and NASA’s Ames Research Center, Moffett Field, Calif.

Study Finds Severe Climate Jeopardizing Amazon Forest, NASA Press Release, Jan. 17, 2013

Reversing Deforestation in the Amazon

Brazilian policymakers can take some of the credit for a dramatic slowdown in the deforestation rate in the Brazilian Amazon, say experts – but that’s not the whole story.  In November Brazil (2012) announced deforestation rates in the Amazon declined 27 percent from August 2011 to July 2012, reaching the lowest rates ever recorded for the fourth consecutive year.  According to Brazil’s National Institute for Space Research (INPE), 4656 square kilometres of Amazon rainforest were cleared over the twelve months, compared with 27,772 square kilometres in 2004.

Brazil’s government says this represents a 76 percent reduction since 2004 – coming close to the country’s commitment to reduce deforestation in the Amazon region 80 percent by 2020.  It has attributed the dramatic results to a package of policies known as PPCDAm (The Action Plan for Prevention and Control of Legal Amazon Deforestation) that were first implemented in 2004.

PPCDAm comprises more than 200 initiatives across 14 ministries that together aim to reduce deforestation in the Amazon…Over the last decade, the country has established new protected areas, indigenous lands and sustainable use areas covering 709,000 square kilometres.  This has decreased both deforestation and the incidence of fires – and crucially, more of them than previously are located near particularly threatened areas, making them more effective.We know every day where deforestation is going on in the Amazon…from detection to having people in the field stopping illegal loggers takes just five days….Brazil’s space agency, remote sensing centre, and law enforcement agencies collaborate to detect and precisely locate deforestation and forest degradation, and to apprehend perpetrators.  From detection to having people in the field stopping illegal loggers takes just five days….  Last year [Brazil]  confiscated 110 chainsaws, nine bulldozers, and 329 trucks…

Jorge Hargrave – who  worked with Wunder on the UNEP report (pdf) – and colleagues assessed the effectiveness of the PPPDAm policies.  They found that these policies were responsible for curbing deforestation – and that the command-and-control policies, particularly the issuance of environmental fines, had the most impact.  The government’s decision to focus on 36 specific municipalities where deforestation was most intense was also very effective, they found, as was the cross sector coordination and high-level political support for the program.

However, Hargrave also cautioned against over-confidence about the recent encouraging results. “It’s not clear that if the government changes or the policy changes, deforestation can’t go up again,” he said.  “In addition, the lack of land tenure security in the region was consistently identified as a key problem and the biggest bottleneck to further progress.”

In another recent study, Clarissa Costalonga e Gandour and colleagues from the Climate Policy Initiative showed that environmental policies are important – but are only part of the deforestation-reduction story.  The study found that agricultural prices – particularly meat and soybeans – had a significant impact on deforestation as well…The study makes special mention of a 2008 policy that made rural credit for agricultural activities in the Amazon conditional on proof of compliance with environmental regulations – with exceptions for smallholders.

Excerpts, KATE EVANS, How much credit can Brazil take for slowing Amazon deforestation – and how low can it go?, CIFOR, Jan. 15, 2013