Environmental Appraisal Of Projects

Environmental Appraisal of Projects

Session Outline • Environmental Appraisal – concept • Environmental Feasibility (Clearance) – Legal requirements – Environmental Impact Analysis (EIA) • • • •

Key concepts Process Developing an EIA report Assessing quality of EIA report

• Beyond Environmental Feasibility (Clearance) – Meeting higher standards (green rating, ISO 14000, LEED certification) – Eco-preneurship – Carbon financing

Environmental Appraisal of Projects • Feasibility Approach – Whether the proposed project will meet the minimum environmental standards (legal) of the country?

• Going beyond minimum standard – Whether it can go beyond minimum standards and achieve environmental certification such as ISO 14,000 (general) and LEED certification (building/ construction)? – Whether the project/company can demonstrate leadership in the field of environmental protection/ augmentation by making it part of its core business? (ecological entrepreneurship).

Approach to Environmental Feasibility • Reactive approach (majority) – EIA carried out with sole purpose of getting environmental clearance.

• Proactive approach (small minority) – EIA as a tool to improve planning process – EIA as an opportunity to internalize externalities and gain long term benefits: • • • • • •

Improved cost-effectiveness Earn carbon credits Recovery of resources from waste streams Better and safer work environment Less occupational hazards Better image as responsible citizen of the country

Environmental Feasibility: Legal Requirements and Procedures EIA Notifications EIA Process

Legal Requirements • 27th Jan 1994 Notification of MoEF, GoI under the Environmental (Protection) Act 1986 – making environmental clearance mandatory for expansion/ modernisation of any activity or setting up new projects listed under Schedule 1(29 industries) • 12 minor Amendments between 1994 to 2006 • 14th Sept. 2006 Notification in supersession of earlier notification of 1994. • 2007 – Notifications to constitute various state level Environment Impact Assessment authorities.

EIA Notification (1994) • 29 industries will need environmental clearance from MoF, GoI. • For expansion or new ventures with investment > Rs. 50 crores • MoEF to act as Impact Assessment Agency (IAA) – can appoint an expert committee if needed – May organise public hearing if needed

• Assessment within 90 daysof receiving documents or public hearing • Validity of clearance for 5 years • Site clearance in case of a few industries like mining etc. needed before project preparation

Amendments to 1994 Notification • Between 1994 to 2006 – 12 Amendments • 10th April 1999 – Process of environmental public hearing by SPCB introduced; Public hearing committee to ensure fair representation in hearinigs • 4th Aug. 2003 – Location sensitivity: projects located in critically polluted areas; within 15 kms. Of ecologically sensitive areas like sanctuaries, bio-reserves etc. need clearance from MoEF. • 7th July 2004 – environmental clearance made mandatory for construction and industrial estates.

EIA Notification (2006) • Partial Decentralization – Category A – clearance by MoEF – Category B – clearance by State regulatory authority (SPCB) • B 1- will require EIA • B2 – will not require

– Above categories based on size, capacity, area rather than investment level – Formation of Environmental Impact Assessment Agency and Environmental Expert Committee at Central and State levels • Introduction of Scoping process – TOR to be determined by Expert Appraisal Committees • • • •

Based on information provided by proponent May visit site if needed Within 60 days of application To be displayed on MoEF/ SPCB’s website

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Public consultation – Necessary for Category A, B1 except for 6 activities – SPCB to conduct public hearings for which procedure outlined – To ascertain view of local people – To gather written responses of interested parties like experts, NGOs etc. – MoEF to display summary of EIA on website; full draft in public reference place – Video-graphy of proceedings by SPCB • Appraisal – Of EIA to be done by Expert Committee at state or Central levels – Within 60 days, with recommendation to regulatory authority Decision making – Regulatory authority to give decision within 45 days i.e 105 days of receipt of final EIA/ application – Failing which, - default clearance Post-clearance monitoring – Bi-annual compliance reports to regulating authority – Latest report to be displayed on website of regulating authority

EIA – Concepts/ stages • Screening: determines whether the proposed project requires an EIA and if so, at what level of assessment? • Scoping: identifies the key issues and impacts that should be further investigated; defines the boundaries and time limit of study • Impact analysis: identifies and predicts likely environmental and social impacts and evaluates their significance • Mitigation: recommends the actions to reduce and avoid the potential adverse environmental consequences of the project • Reporting: presents the result of EIA in the form of a report to the decision making body and other interested parties • Review: examines the adequacy and effectiveness of the EIA report and provides information necessary for decision-making.

EIA report Non-technical executive summary 1) Introduction 2) Project description 3) Description of environment 4) Anticipated Environmental Impacts and mitigation measures 5) Analysis of alternatives (technology & site) 6) Environmental Monitoring programme 7) Additional studies (public consultation, risk assessment, Social Impact assessment, R &R action plans) 8) Project benefits 9) Environmental cost-benefit analysis 10)Environmental Management Plan 11)Summary and Conclusions 12)Disclosure of Consultants engaged

Beyond Environmental Feasiibility: Meeting higher standards Ecopreneurship Carbon financing

Meeting Higher Standards – ISO 14000 certification: • Provides environment management standards to help organisations minimize their negative impact on the environment • Environment Management System (EMS) mandatory • Certification carried out by third party • Focuses on process as in case of ISO 9000

– No of ISO 14000 certified companies in India • 275 in 2000 (Pegllan, October 2007) t • 2016 in 2006 (ISO, 2006)

– Economic benefits from ISO 14000 • • • • •

Arvind Mills (denim unit at Khatrej) in 1998 ISO led to several innovations Solid wastes down from from 6% to 2.5% Savings per year of Rs. 6.0 m Cost of EMS less than Rs. 3.5 m

Source: Pastakia (forthcoming) in M. Schafer, Making Ecoprenerus

Meeting Higher Standards – Green rating project of CSE • Supported by UNDP and MoEF • Rates environmental friendliness of industrial units in a given sector on five green leaf scale • Aims at encouraging better environment management practices • “Reputational incentive” to induce voluntary disclosure; those who don’t join rated the worst • Evaluation by Panel of Technical Experts • Pulp and paper(1999), automobile (2001),chlor-alkali (2002), paper second round (2004) cement sectors rated so far • Improvements in pulp and paper sector recorded (water consumption /ton declined, ISO 14000 companies increased)

Source: Down to Earth, past issues

Meeting Higher Standards • Global Reporting Initiative (GRI) with UNEP a partner • Critique of Green Rating Project – Extremely time intensive – Relies on network of volunteers for data collection – Comparison across sectors difficult since different criteria used – Qualitative evaluation – Investors need rapid and quantitative indicators, comparable across sectors • GRI Framework can be a starting point for starting such a rating system • Currently only 13 of 2600 sustainability reports on GRI from Indian companies • Indian Green Building Council Certification – “Green buildings use less energy, water and natural resources, create less waste and is healthier compared to standard buildings” Higher Standards - Building / Construction – 259 registered, 29 certified – As on date – 7th Green Building congress (International Conference & Exhibition) coming up in Sept. 2009 at Hyderabad – LEED training programme calendar on website (www.igbc.in)

Higher Standards - Building / Construction • LEED (Leadership in Energy and Environment Design): green building rating system of the US Green Bldg. Council. – Six domains: sustainable site; water efficiency; energy and atmosphere; material and resources; indoor environment quality and innovation in operations – Application on-line – 3 months data followed by 12 months of operation needed – Old buildings and new both can be certified – Guidelines provided on website of IGBC and USGBC – Ratings – • • • •

26-32 33-38 39-51 52-69

Certification Silver Gold Platinum

WIPRO’s Corporate office, Bangalore -Developing new LED lamps with 1/4th power consumption -Powered by solar panels on roof -14% reduction in average power consumption -Recycled water in restrooms and to water plants

-Waste-paper used as scribbling pads

-Waste-food converted to vermicompost

-Eco-eye: dedicated team to develop ideas Source: PC Quest ( October 2008)

Delta Green Factory, Rudrapur (16,650 sq m) -.Uses eco-friendly materials like fly-ash, gypsum, brick cova in construction -Low Volatile oxide compounds (VOC) paints to lower toxic emissions

-Linear panel polymer insulation saves energy for forced cooling -AC uses R407 eco-friendly gas -0.97 power factor instead of 0.85 saves 15% electric energy

-Natural light harvesting -Turbo ventilation – 215 turbo fans on roof to lower temp. by 2-3 deg. C. -Solar panels -Storm water harvesting system -Sewage treatment plant with anaerobic bacteria

Source: PC Quest ( October 2008)

Patni Green Knowledge Center -BPO center at Noida – 5 acres land – 175 crore investment -Has applied for LEED platinum certification -75% area gets sunlight : reduced electric consumption -Zero discharge – 100% recycling of sewage -CO2 to monitor air quality: fresh air pumped to maintain it -Solar water heating -Drip irrigation in gardens -Lighting system based on motion detection -Use of low VOC paints Source: PC Quest ( October 2008)

Carbon Financing • Problem of Global Warming and Climate Change • Global community's response: Kyoto Protocol (16th Feb 2005 in force; 166 countries including India) • Carbon Trading – opportunity for commercial entities in developing countries to earn carbon credits (CERs and VERs) • Case of brick-kiln manufacturers supported by Development Alternatives Source: Based on material provided by Developmental Alternatives, New Delhi

Global warming and CC Kyoto Protocol covers six greenhouse gases (GHGs) that are: • carbon dioxide (CO2),(GWP-1) • methane (CH4) (GWP-21) • nitrous oxide (N2O) (GWP-310) • hydrofluorocarbons (HFCs) (GWP-1000s) • perfluorocarbons (PFCs), (GWP-1000s) and • sulphur hexafluoride (SF6) (GWP-239000). Source: Developmental Alternatives

Global warming and CC

eedbacks push climate change higher; brupt changes much more likely; massive impacts to humans Loss of Greenland ice sheet Large biodiversity loss; coral reefs disappear

5 4 3

2

IPCC Projections 2100 AD Global Temperature (°C)

Earth System moves to a new state; modern civilisation collapses

6

N.H. Temperature (°C)

“Committed” Climate Change 1

1

0.5 0

-0.5 1000 1200 1400 1600 1800 2000

0 Source: Developmental Alternatives

Why Carbon Trading?

Why Carbon Trading? •Key feature of the Kyoto Protocol: – Provide flexibility as to the location of emission reductions

•Rationale: – Impact of CO2 emissions and/or reductions insensitive to location – Cost and opportunities to reduce CO2 vary between companies, sectors, and countries

Market instruments enable meeting GHG targets costeffectively – Taking advantage of differences in marginal abatement costs across different emission sources Source: Developmental Alternatives

Development Alternatives

What is CDM?

Emissions to be reduced

Carb on C Tons redit of C O2 e s mis

ssion redu ced/ avoi ded

Developing Country Total GHG Emissions

Total GHG Emissions

Developed Country

No emission reduction commitments

Source: Developmental Alternatives

Carbon Trading  39

Developed Countries and Economies in transition: • Agreed to “differentiated” and binding emission limitations • Reduction of greenhouse gases by 5.2 % below 1990 levels in the commitment period 2008-2012

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A new financial asset – Certified Emission Reduction (1 CER = 1 tonne of CO2eq)

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Priced in US Dollars or Euros or Yen

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Current prices – between 12 to 16 US $

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UNFCC – clearing house for Carbon trading Source: Developmental Alternatives