Category Archives: trade-environment

The Game-Changers: oil, gas and geothermal

image from UNESCO

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

 

Well blowouts and Pipeline breakdowns: Who Profits?

Deepwater Horizon rig, April 21, 2010 image from wikipedia

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

Who Cares about Western Sahara?

f Laayoune, capital of Western Sahar, satellite image from wikipedia

The European Court of Justice issued a ruling on Feb. 27, 2018 that a EU-Morocco fisheries deal was valid as long as it was not applied to the waters of the disputed Western Sahara territory since this would be a breach of its population’s rights.  Morocco controls most of Western Sahara and considers it part of its territory. It fought a 16-year war with the Polisario Front independence movement, which established the self-declared Sahrawi Arab Democratic Republic.  The United Nations says the region has a right to self-determination and campaigners have sought to challenge the EU’s trade deals with Morocco in the courts because they include the desert region.  Western Sahara, a contested region since Spain withdrew from it in 1975,“does not form part of the territory of the Kingdom of Morocco,” the ECJ said.   Therefore, the region’s adjacent waters were not part of the“Moroccan fishing zone” mentioned in the treaty with the EU.

The court has said before that EU deals signed with Morocco could not include Western Saharan resources because its citizens had not been in a position to agree to its conditions. In February 2017, Morocco’s government said it would end economic cooperation with the EU if it did not honour a farming deal.  Though largely a desert region, western Sahara has significant phosphate reserves and offshore fishing grounds.

The ECJ’s ruling could disrupt not only EU fleets in the fish-rich waters, but also broader co-operation between European capitals and Rabat in areas including migration and terrorism. It might also have potential implications for other trade deals between the EU and countries alleged to breach human rights laws.

Excerpts from The ECJ Fishy Business, Financial Times, Feb. 27, 2018; EU top court: EU-Morocco fishing deal valid as long as not applied to W. Sahara, Reuters, Feb. 27, 2018

The Most Trafficked Animal in the World: pangolin

Pangolin defending itself against lions. image from wikipedia

Pangolins are a smuggler’s dream. For defence, and when asleep, they roll themselves up into spheres, scales on the outside, to thwart any predator. That makes them easy to handle and pack. And handled and packed they have been, in enormous numbers. The International Union for Conservation of Nature, a worldwide wildlife-preservation organisation, reckons that more than 1m pangolins were traded illegally from their African and Asian homelands over the decade to 2014. That may be a conservative estimate. A paper published in 2017 in Conservation Letters calculates the number of pangolins hunted in central Africa alone as between 400,000 and 2.7m a year. Based on statistics such as these it seems likely that pangolins, of which there are eight species, four African and four Asian, are the most trafficked type of animal in the world.

Some are consumed locally. That is not necessarily illegal, for laws vary from place to place. International trade, though, is a different matter. Early in 2017 CITES, the Convention on International Trade in Endangered Species, listed all eight pangolins as part of what is known as Appendix 1. This means signatories to the convention (which most countries are) cannot permit them to be imported or exported.

Most of those that are, nevertheless, exported illegally from their homelands end up in China and Vietnam. In these countries pangolins’ meat is a treat and their scales are used in folk medicine, even though those scales are made of keratin, the same substance as hair and fingernails, and thus have no medicinal value. Pangolin scales fetch as much as $750 a kilogram in China. A 12-tonne stash of them, the world’s biggest seizure, was found last summer by the authorities in Shenzhen….

Cracking down on poachers and traders is difficult, particularly in poor places…Part of the blame lies with ignorance. Awareness of pangolins is patchy. They are nocturnal and shy, and thus rarely feature on tourists’ tick-lists. That makes them a low priority, even to game-management authorities who know they are there. …The Hywood Foundation’s initiative is part of a larger effort in Uganda, sponsored by the Uganda Wildlife Authority (UWA), the government’s conservation agency. Now that pangolins are on the UWA’s radar, it has stepped up intelligence and investigative work on poachers and traffickers…At the consumption end of the trafficking routes, too, things are starting to happen…. In theory, eating pangolin meat (along with that of many other wild species) is already illegal in China—not for conservation reasons, but as a reaction to the outbreak of SARS, a fatal respiratory disease…Persuading people to stop using the animals’ scales may be harder.

Excerpts from  Conserving Pagolins: A Problem of Scale, Economist, Feb 3, 2018

An Earth Bank of Codes: who owns what in the biological world

image from wikipedia

A project with the scale and sweep of the original Human Genome Project…should be to gather DNA sequences from specimens of all complex life on Earth. They decided to call it the Earth BioGenome Project (EBP).

At around the same time as this meeting, a Peruvian entrepreneur living in São Paulo, Brazil, was formulating an audacious plan of his own. Juan Carlos Castilla Rubio wanted to shift the economy of the Amazon basin away from industries such as mining, logging and ranching, and towards one based on exploiting the region’s living organisms and the biological information they embody. At least twice in the past—with the businesses of rubber-tree plantations, and of blood-pressure drugs called ACE inhibitors, which are derived from snake venom—Amazonian organisms have helped create industries worth billions of dollars. ….

For the shift he had in mind to happen, though, he reasoned that both those who live in the Amazon basin and those who govern it would have to share in the profits of this putative new economy. And one part of ensuring this happened would be to devise a way to stop a repetition of what occurred with rubber and ACE inhibitors—namely, their appropriation by foreign firms, without royalties or tax revenues accruing to the locals.

Such thinking is not unique to Mr Castilla. An international agreement called the Nagoya protocol already gives legal rights to the country of origin of exploited biological material. What is unique, or at least unusual, about Mr Castilla’s approach, though, is that he also understands how regulations intended to enforce such rights can get in the way of the research needed to turn knowledge into profit. To that end he has been putting his mind to the question of how to create an open library of the Amazon’s biological data (particularly DNA sequences) in a way that can also track who does what with those data, and automatically distribute part of any commercial value that results from such activities to the country of origin. He calls his idea the Amazon Bank of Codes.

Now, under the auspices of the World Economic Forum’s annual meeting at Davos, a Swiss ski resort, these two ideas have come together. On January 23, 2018 it was announced that the EBP will help collect the data to be stored in the code bank. The EBP’s stated goal is to sequence, within a decade, the genomes of all 1.5m known species of eukaryotes. ..That is an ambitious timetable. The first part would require deciphering more than eight genomes a day; the second almost 140; the third, about 1,000. For comparison, the number of eukaryotic genomes sequenced so far is about 2,500…

Big sequencing centres like BGI in China, the Rockefeller University’s Genomic Resource Centre in America, and the Sanger Institute in Britain, as well as a host of smaller operations, are all eager for their share of this pot. For the later, cruder, stages of the project Complete Genomics, a Californian startup bought by BGI, thinks it can bring the cost of a rough-and-ready sequence down to $100. A hand-held sequencer made by Oxford Nanopore, a British company, may be able to match that and also make the technology portable…..It is an effort in danger of running into the Nagoya protocol. Permission will have to be sought from every government whose territory is sampled. That will be a bureaucratic nightmare. Indeed, John Kress of the Smithsonian, another of the EBP’s founders, says many previous sequencing ventures have foundered on the rock of such permission. And that is why those running the EBP are so keen to recruit Mr Castilla and his code bank.

The idea of the code bank is to build a database of biological information using a blockchain. Though blockchains are best known as the technology that underpins bitcoin and other crypto-currencies, they have other uses. In particular, they can be employed to create “smart contracts” that monitor and execute themselves. To obtain access to Mr Castilla’s code bank would mean entering into such a contract, which would track how the knowledge thus tapped was subsequently used. If such use was commercial, a payment would be transferred automatically to the designated owners of the downloaded data. Mr Castilla hopes for a proof-of-principle demonstration of his platform to be ready within a few months.

In theory, smart contracts of this sort would give governments wary of biopiracy peace of mind, while also encouraging people to experiment with the data. And genomic data are, in Mr Castilla’s vision, just the start. He sees the Amazon Bank of Codes eventually encompassing all manner of biological compounds—snake venoms of the sort used to create ACE inhibitors, for example—or even behavioural characteristics like the congestion-free movement of army-ant colonies, which has inspired algorithms for co-ordinating fleets of self-driving cars. His eventual goal is to venture beyond the Amazon itself, and combine his planned repository with similar ones in other parts of the world, creating an Earth Bank of Codes.

[I]f the EBP succeeds, be able to use the evolutionary connections between genomes to devise a definitive version of the tree of eukaryotic life. That would offer biologists what the periodic table offers chemists, namely a clear framework within which to operate. Mr Castilla, for his part, would have rewritten the rules of international trade by bringing the raw material of biotechnology into an orderly pattern of ownership. If, as many suspect, biology proves to be to future industries what physics and chemistry have been to industries past, that would be a feat of lasting value.

Excerpts from Genomics, Sequencing the World, Economist, Jan. 27, 2018

Old Continents, New Trees

In the 1920s, when Ireland became independent, it was thought to have just 220,000 acres (90,000 hectares) of woods, covering about 1% of the land. Once-extensive forests had been shrinking for centuries…In 2017, though, almost 11% of Ireland is covered with forest, and an unknown additional amount by small woods and scattered trees. The government’s target is to cover 18% of the land area with forests by 2046. Ireland is behind schedule. Still, about 6,000 hectares of new forest ought to be planted this year, while almost none will be lost. It is part of a broad trend: the foresting of the West.

Trees are spreading in almost every European country. Because many of these forests are young, the quantity of wood in them is growing faster than their extent. Europe’s planted forests put on a little more than 1.1m cubic metres of wood per day. For comparison, the iron in the Eiffel Tower is about 930 cubic metres. Russia’s forests spread more slowly in percentage terms between 2005 and 2015, but, because Russia is so big, more than in the entire European Union in absolute terms. Forests now occupy a third of America’s land, having grown by 2% in the past decade. They are even expanding in Australia, following a long decline.

Deforestation in South America and Africa rightly gets most of conservationists’ attention. That loss is huge—equivalent to about 4.8m hectares a year, which far outweighs gains elsewhere. Yet the foresting of rich countries is still one of the world’s great land-use changes. It seems just as unstoppable as the deforestation of poorer places. It has plenty of critics, too.

The growth of forests is partly a result of changes to food markets. As the best farming areas have become more productive, and as rich countries have imported more of their food, marginal land has become unusable for ordinary agriculture…Forests are also growing because governments have favored them through laws and subsidies….Since the 1990s environmental considerations have weighed more heavily. Forests are increasingly valued as sponges for heavy rain, as wildlife habitats and as carbon sinks…

Planted forests are far from universally popular, though. Between June and October 2017, forest fires in Spain and Portugal killed more than 100 people and darkened Europe’s skies. The fires were partly blamed on the spread of non-native trees, especially eucalyptus. That Australian import, which was planted with support from the World Bank, among others, grows so quickly that trees can be harvested for pulp when less than ten years old. It also burns readily, scattering embers far afield. Portugal’s government has begun to restrict planting, in an effort to prevent the country from turning into what one green group calls “Eucalyptugal”.

The eucalyptus tree is a scapegoat for a bigger problem, argues Marc Castellnou, a fire analyst in Spain. The real trouble is that forests in Portugal and Spain have expanded quickly, with little thought for the consequences. Well-managed eucalyptus plantations are not the biggest danger—much worse are ill-managed ones with lots of underbrush and fallen wood, and the impromptu forests that grow on abandoned farms. The fires that get going in such forests jump to the treetops and burn so energetically that they cannot be stopped.

In Ireland, the criticisms are different. The country’s default tree is the sitka spruce, a fast-growing, damp-tolerant conifer from America’s Pacific Northwest. Spruce plantations are said to be devoid of life—vertical deserts of dark green. They are accused of wrecking rural communities and driving farmers off the land….

The first charge is false. Mark Wilson of the British Trust for Ornithology says that conifer plantations support more bird life per hectare than farmland, largely because they harbour more insects. Inevitably, some birds benefit more than others. The march of conifers across Britain and Ireland has increased the numbers of pine-loving birds such as siskins and crossbills. Conifers are also loved by crows—which is less obviously good, because crows raid the nests of rare birds such as curlews.

The second accusation, that trees push out other kinds of agriculture, is only partly true. Forestry subsidies and regulations have indeed distorted Ireland’s land market.

Excerpts from The Foresting of the West, Economist, Dec. 2, 2017,at 51

The Good News: no forest loss for cocoa production

child labor in cocoa production. Image from wikipedia

At the UN Climate Change Conference (COP23) in Bonn in November 2017 top cocoa-producing countries Côte d’Ivoire and Ghana with leading chocolate and cocoa companies have announced far-reaching Frameworks for Action to end deforestation and restore forest areas.  Central to the Frameworks is a commitment to no further conversion of any forest land for cocoa production.  The companies and governments pledged to eliminate illegal cocoa production in national parks, in line with stronger enforcement of national forest policies and development of alternative livelihoods for affected farmers. Côte d’Ivoire and Ghana combined produce nearly two-thirds of the world’s annual supply of cocoa, the main ingredient in chocolate and a range of other consumer products…

Up-to-date maps on forest cover and land-use, as well as socio-economic data on cocoa farmers and their communities will be developed and publicly shared by the governments. Chocolate and cocoa industry agree to put in place verifiable monitoring systems for traceability from farm to the first purchase point for their own purchases of cocoa, and will work with the governments of Côte d’Ivoire and Ghana to ensure an effective national framework for traceability for all traders in the supply chain.

The two governments and companies agree through the Frameworks to accelerate investment in long-term sustainable production of cocoa, with an emphasis on “growing more cocoa on less land,”. Key actions include provision of improved planting materials, training in good agricultural practices, and development and capacity-building of farmers’ organizations.  Sustainable livelihoods and income diversification for cocoa farmers will be accelerated through food crop diversification, agricultural inter-cropping, development of mixed agro-forestry systems, and other income generating activities designed to boost and diversify household income while protecting forests.

The governments and companies, which represent and estimated 80+ percent of global cocoa usage, commit to full and effective consultation and participation of cocoa farmers in the process…The governments and companies have committed to a comprehensive monitoring process, including a satellite-based monitoring system to track progress on the overall deforestation target, and annual publicly disclosed reporting on progress and outcomes related to the specific actions in each Framework.

Excerpts from Cocoa and Forests Initiative

Companies that have joined the initiative include; Cargill, General Mills, Godiva, Hershey, Mars, Mondelēz, and Nestlé.