env-account-34-dec10 by xiuliliaofz

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									WISTA                                                                                                      DECEMBER 2010

   From the Desk of Chairman                                                     Environment Accounting:      Part 13 - 34
        The Export Credits Guarantee Department (ECGD) of UK is a small ministerial department operating under
   the Secretary of State for Business. Its main objective is to benefit the UK economy by underwriting guarantees
   and insurance policies with a view to providing protection to exporters against non-realization of payments and
   cover political risks to overseas investments. Established in 1919, ECGD has undergone various developments
   in its functioning and now most of its portfolio consists of covering defence and civil aerospace export deals. Since
   2000, ECGD has incorporated sustainable development considerations into its project screening procedures
   that provide a good framework for evaluating environmental and social impacts and ensure that sustainability
   aspects have been taken into account while approving requests for support.
        The Special Feature in the current issue of WISTA: Environment Accounting is based on the briefing
   prepared by the UK’s National Audit Office to assist the Environmental Audit Committee to ascertain how far
   ECGD has been able to integrate sustainable development and environmental aspects into its objectives.
        The ‘Case Study’ deals with the ExxonMobil’s corporate citizenship report for the year 2009, and traces the
   company’s progress in addressing the challenge of sustainability while continuing to meet the world’s ever increasing
   demand for energy. The report advocates an integrated approach to the current energy issues, including technology,
   energy efficiency, climate change, and development of economical energy sources in order to meet the
   existing needs and provide for future ones.
        ‘In Focus’ concerns the issue of climate change and global warming facing the would today, and how reversing
   global warming could start an ice age. It also covers its effect on meridional overturning circulation. Other features
   covered include: Perspective; Accounting for Air, Water, Waste; Legal Scene; Energy Scene; Green & Natevorthy;
   Experts Converge; and Knowledge Spreads.
        We welcome comments and suggestions.
                                                                                              Dr K V Swaminathan


   CONTENTS                                                                              RESEARCH & ANALYSIS TEAM
   •   From the Desk of Chairman [ P 2 ]                                                 Mr K N Julka           Jt Director
   •   Special Feature: Export Credits Guarantee and Sustainability.    [P3-5]           Mr Suresh Kumar        Jt Director
   •   Perspective: Climate Change Conference, Cancun. [P6-7]                            Mr D P Singh           Director

   •   In Focus: Climate Change and Global Warming. [P 8]
                                                                                         Mr S S Kalra          Director

   •   Case Study: ExxonMobil Corporate Citizenship Report-2009.       [P 9-10]
                                                                                         This     publication     aims    at
   •   Accounting for Air: Carbon Market Fund; Concern over GHG Emissions;               disseminating information on
       Shanghai Pollution at New High. [P 11]                                            pertinent developments in its
   •   Accounting for Water: Pollution Impacts Agri Produce; Rising Toxic Water;         specific field of coverage. The
       Water Pollution Impacts Birds. [P12]                                              information published does not,
                                                                                         therefore, imply endorsement of any
   •   Accounting for Waste: America Recycles Day; Food WasteCollection;                 product/process/producer         or
       Nuclear Waste Repository; Recovered Paper Collection Rates. [P 13]                technology by WITT.
   •   Legal Scene: EPA Sued; EU Sues Countries Over Air Quality; Environment
       Impact Report; Request to Close Waterways Denied. [P 14]                          Editor : Dr K V Swaminathan
                                                                                         Printed and Published by
   •   Energy Scene: US's Giant Solar Projects.   [P 15 ]                                Dr K V Swaminathan, on behalf of
   •   Green & Noteworthy: Coast Guard and Oil Spills (Canada); Boosting Green           Waterfalls Institute of Technology
       Industries (China); Polluted Holidays (Iran); Extending Kyoto Pact (Japan);       Transfer, J-29 South Extension Part I,
       Tiger Summit (UK). [P 16-17]                                                      New Delhi - 110 049.

   •   Experts Converge: EU Energy Law and Policy Conference; Municipal Solid            Printed at Sagar Printers,
       Waste to Biofuels Summit; Sustainability Conference 2011. [P 18]                  1880, Udaichand Marg,
   •   Knowledge Spreads: A Textbook of Environmental Science; Climbing                  Kotla Mubarakpur,
       Global CO2 Emissions; Tsunamis and Hurricanes. [P 19]                             New Delhi - 110 003.



VOL 12 ISSUE 6                                                   1                      ENVIRONMENT              ACCOUNTING
SEC 1
WISTA                                                                                         DECEMBER 2010

                                                          impact and ensuring that they are in compliance
                SPECIAL FEATURE                           with ECGD's Business Principles. It is staffed by
                                                          three full-time ECGD people each of whom holds
 EXPORT CREDITS GUARANTEE AND                             environmental qualifications. It has call-off
 SUSTAINABILITY                                           contracts with two environmental consultancy firms
                                                          to provide additional resources and specialist
 Introduction
                                                          expertise when required.
     The Export Credits Guarantee Department
                                                          Case Imapct Analysis
 (ECGD) is a ministerial department which reports
 to the Secretary of State for Business Enterprises &     Case impact analysis procedures are followed
 Regulatory Reform (BERR) and is responsible for          by ECGD in the following cases:
 assisting UK exporters by providing financial            •  Civil (non-aerospace) and defence applications
 guarantees and insurance for export contracts in the        where an export licence is not required;
 markets where commercial cover would normally            •  Defence applications where an export licence
 not be available. Since 2000, ECGD has done much            is required; and
 to incorporate policies and processes which seek         •  Civil aerospace applications
 to ensure that susainability considerations are taken    Defence Exports- Applications for defence exports
 into account in deciding whether or not to approve       which require an export licence from the Export
 applications for support.                                Control Organization are subject to an economic
     At the request of Environmetnal Audit                assessment of expenditure within developing
 Committee (EAC), the National Audit Office (NAO)         countries, and this will to some extent take into
 agreed to provide a briefing on the operations of        account social impacts. They are not subject to any
 ECGD. The briefing was primarily intended to             form of environmental impact appraisal, though in
 provide factual and descriptive information of the       practice it is difficult to envisage how such an
 operations of ECGD and the extent to which it has        assessment might be made.
 been able to incoporate sustainable development
 within its objectives.                                   Aerospace Cases- Civil aerospace exports are not
                                                          subject to ECGD case screening procedures on the
 Business Principles
                                                          grounds that new aircraft and engines are required
     ECGD had already introduced since 1999 an            to meet international environmental standards for
 environmental questionnaire as part of its application   emission and noise. Conformity with such standards
 process. However, in response to its Mission and         is ensured by the regulatory processes by which
 status review, ECGD developed a set of Business          certificates of airworthiness are issued, and ECGD
 Principles and created an internal Business              requires these certificates when it issues guarantees
 Principles Unit (BPU) to support their implementation.
                                                          and insurances for aerospace exports.
 The Business Principles were published in
 December 2000, and the Exports Guarantee                 Benchmarking Against Standards
 Advisory Council (EGAC) was charged with advising
 on the underlying policies and principles, in                In accordance with international guidelines for
 particular how ECGD should take account of wider         ECAs, ECGD compares the potential environmental
 impact of projects on overseas countries. In order       impact of projects against international standards
 to embed the principles within ECGD procedures,          published by the World Bank Group (WBG), including
 the BPU then developed a Case Impact Analysis            the International Finance Corporation (IFC), the
 Process (CIAP), the latest version of which was          World Health Organisation (WHO), and other
 published in 2004. The CIAP describes the                relevant bodies. ECGD always requires compliance
 procedures ECGD follows when it assesses all civil       with the host country's standards where these are
 non-aerospace applications for any potential             more stringent than international standards. While
 environmental and social impacts.                        ECGD does not, therefore, specify a single set of
    The BPU performs a key operational role in            international standards which it will use, its policy is
 assessing projects for potential environmental           to employ the highest standards that are available.

ENVIRONMENT       ACCOUNTING                          2
WISTA                                                                                                DECEMBER 2010

     These international standards include, for example,       difference on sustainable development issues, both
 the environmental, health and safety guidance                 through its international business ventures and
 produced by the IFC in 2007-08, which sets out, within        internal operations. The Sustainable Development
 a comprehensive analysis of all industrial and business       Commission has categorised ECGD as ‘gaining
 sectors, the minimum standards to be obtained in
                                                               momentum’, a mid-ranking position.
 each different type of construction project or
 industrial process. The following example from this               Much of ECGD’s SDAP relates to its operational
 guidance illustrates how these standards can be used          management. As a very small organisation, its
 as a benchmark against which the BPU can assess               environmental footprint is small, but its SDAP contains
 a specific application.                                       comprehensive objectives and targets in this respect.
 Example of IFC Guidance                                       The SDAP also contains action points relating to the
                                                               nature of ECGD’s business. These cover the
     Environmental, Health and Safety (EH&S) Guidelines
                                                               application of the Case Impact Analysis Process
 for Liquefied Natural Gas (LNG) facilities, include:
                                                               (for which various process based measures are
 •   Threats to aquatic and shoreline environments             included in Appendix B of the Plan) and making
 •   Hazardous material management                             progress on sustainable development standards in
 •   Wastewater                                                international fora. But they do not seek to measure
 •   Air emissions                                             the overall environmental impact associated with
 •   Waste management                                          the guarantees and insurances that ECGD issues.
 •   Noise                                                     In relation to some of the wider objectives contained
 •   LNG transport                                             in the business principles of supporting the
      The EH&S guidelines describe the potential               government’s international policies, no specific
 risks and how the facilities should be designed to            targets are provided.
 minimise these risks. For gaseous emissions and liquid        Case Studies
 effluents, numeric limits are given. For example, hydrotest
 water that is to be discharged onto land must,                    There are many case studies on defence, civil
 amongst other limits, have a pH in the range 6 – 9 and        aerospace and civil cases which were selected by
 a total hydrocarbon content of less than 10 mg/l.             NAO to illustrate ECGD's screening procedures
     The guidelines set out industry benchmarks                in respect of which applications for support
 for energy and water consumption by LNG                       were received. Two such cases are being
 facilities against which individual facilities can be         reproduced below:
 compared; that individual projects should use these           Case Study-1:Blast Furnace (Dragon Steel
 benchmarks as points of reference and so as to                Corporation, Taiwan)
 target continual improvement in these areas.
                                                                   In September 2005, Siemens VAI Metals
     They also provide guidance on how to
                                                               Technology Ltd, a heavy engineering company,
 monitor the operation of LNG facilities - including the
                                                               submitted an application to ECGD in relation to a
 frequency of monitoring, the training of monitoring
                                                               contract it was negotiating for the supply, installation
 staff, record-keeping, and the review of monitoring
                                                               and commissioning of a new blast furnace at
 data so that any necessary corrective actions
                                                               Taichung Steel Works in Taiwan. The purchaser was
 can be taken.
                                                               the Dragon Steel Corporation of Taiwan.
 ECGD's Sustainable Development Action Plan
                                                                    In view of the nature of the project, Siemens VAI
    ECGD, like other departments, is subject
                                                               also submitted with the application an impact
 to various government initiatives to improve
 environmental performance in the operation of its             questionnaire. This provided estimates for the
 own estate, and to wider government initiatives to            consumption of metals, minerals, coal and gas, as well
 encourage sustainability in policy-making. ECGD               as technical details of the project (including the use of a
 produced a Sustainable Development Action Plan                turbine recovery system to generate electricity from
 (SDAP) in 2005 which was later updated in 2007.               surplus heat). The impact questionnaire also contained
 The SDAP outlines how ECGD would make a                       estimates for emissions of CO2, SOx, and NOx.

                                                               3                   ENVIRONMENT            ACCOUNTING
WISTA                                                                                              DECEMBER 2010

     The case was forewarded to the BPU, and the               each of the three countries. In view of the scale of the
 BPU completed its review by December 2005 after               project and its environmental and social impacts,
 obtaining some further information from the                   it was assessed by ECGD as a high potential impact
 exporter. It assessed the case as of 'medium                  case at an early stage. Over a period of two years,
 potential impact' but was statisfied that there were          the BPU reviewed the information available on the
 no significant negative environmental or social               project from a variety of sources including
 implications. It based this judgement on the fact             documentation from the project company itself, the
 that the blast furnace was to replace an existing             work of the indepent consultants and of the Lenders
 furnace and did not involve any expansion of the              Environmental Working Group, consultations with
 industrial site. The BPU also ensured that emissions          other financial institutions and ECAs, and a site visit
 met World Bank standards for this kind of project.            by the head of the BPU. On this basis of this
 No further appraisal was therefore deemed necessary.          information, it compiled a comprehensive assessment
     ECGD first indicated a willingness to offer an Export     of the project which was submitted to the Risk
 Insurance Policy (EXIP) to underwrite the Taiwanese           Committee in 2003. In it, the BPU advised that
 risk in October 2005. However, there was some                 the project complied in all material respects with the
 delay on the part of Siemens VAI, and the insurance           relevant guidelines and standards, and recommended
 was eventually only issued and accepted in January            that the offer of ECGD support should be subject to
 2007, some six months after Siemens VAI has                   compliance with certain conditions, including the
 actually signed the contract. ECGD's maximum                  full implementation of the ESAP.
 liability under the terms of the EXIP was for £ 70 million.       The process of constructive engagement with the
 Case Study-2: Baku-Tbilisi-Ceyhan Pipeline                    project company helped to ensure adherence to
                                                               international standards. Specific examples of this
     ECGD has been involved with the BTC pipeline
                                                               include the requirements that waste should be
 project since late 1990s. The project objective
                                                               handled in accordance with EU regualtions, and that
 was to construct a 1,760 kilometre pipeline to
                                                               arrangements for monitoring the resettlement
 transport oil from Azerbaijan through Georgia and
                                                               process in Turkey should be as effective as those
 to the Mediterranean coast of Turkey. Construction
                                                               proposed for the other two countries. The BPU, in
 work began in 2003, and the pipeline became
                                                               partnership with other ECAs and finacial institutions,
 operational in 2005, though it only reached its full
                                                               continues to monitor progress against such
 capacity of 1 million barrels per day in 2007.
                                                               commitments through reports from the project
     A consortium, in which BP was the lead company,           company and regular site visits by the independent
 was set up to develop the project. The total cost was         environmental consultant.
 US$ 4 billion, of which over 60% was debt provided            Summary of Case Studies
 by international financial institutions and commercial
 lenders. ECA-backed financing amounted to US $ 766                The above case studies illustrates how ECGD
 million, of which the ECGD guarantee constituted              works alongside other ECAs and financing
 US $ 106 million. The other major ECAs involved               institutions in large projects and how the process of
 were those of Japan, the US, Germany and France.              constructive engagement can be very lengthy but
 ECGD's guarantee was issued in February 2004.                 may result in improvements to the project
                                                               implementation. They also demonstrate how ECAs
     In accordance with standard practice, the project         can have a continuing role in monitoring projects
 consortium appointed an independent environmental             after completion.
 consultant, Mott McDonald prior to financial close and
 D' Appolonia after financial close, that owed its duty           This feature is based on the paper titled "ECGD
 of care to the financial institutions. The project            and Sustainability," the briefing prepared for the
 company produced extensive documentation,                     Environmental Audit Committee by the National
 including an Environmental and Social Impact                  Audit Office on operations of Export Credits
 Assessment (ESAP), a resettlement action plan for             Guarantee Department.

ENVIRONMENT         ACCOUNTING                             4
WISTA                                                                                           DECEMBER 2010

                                                           for decades.” Jun Arima, deputy director-general for
                  PERSPECTIVE                              environmental affairs at Japan’s Ministry of Economy,
                                                           Trade and Industry said in the open session of the
                                                           Conference that “Japan will not inscribe its target under
 CLIMATE CHANGE CONFERENCE, CANCUN                         the Kyoto Protocol on any conditions or under any
                                                           circumstances.” The Kyoto Protocol was adopted in
      UN Conference on Climate Change (COP 16) held
                                                           Japan in 1992 by major emitting countries, who
 in the Mexican resort of Cancun between November 29
                                                           committed themselves to cutting greenhouse gas
 to December 10, 2010, aimed at finding solutions to
                                                           emissions by 5.2 percent from 1990 baseline levels
 global climate change. Attendees included about 25,000
                                                           by 2012. However, the US Congress refused to
 government officials, businessmen as well as members
                                                           ratify the Protocol.
 of non-governmental organizations and research
 institutions from almost 200 countries. This year’s            Mexican Foreign Minister Patricia Espinosa told
 conference opened with the same set of issues that        a planning session that she was asking environment
 the participants left on the table when meeting in        ministers, acting in pairs from rich and poor nations
 Copenhagen broke up a year ago and the same               for help to reach a broad and balanced package of
 flawed document, the Copenhagen Accord                    decisions. Britain and Brazil would try to resolve the
 before them.                                              deepest split over the Kyoto Protocol. Sweden and
                                                           Grenada would work on a long-term global goals
     Despite a year of preliminary meetings, delegate
                                                           for slowing climate change, and Spain and Algeria would
 remained far apart on the two biggest questions:
                                                           try to bridge gaps on how to help developing countries
 how much and how quickly nations will reduce their
                                                           adapt a climate change. Australia and Bangladesh
 emissions of climate - altering gases and what sort of
                                                           would work on finance and technology, while
 international monitoring can be established to ensure
                                                           New Zealand and Indonesia would seek to workout
 that countries are meeting their targets. However,
                                                           other issues about curbing greenhouse gases.
 there has been some progress on the other four
 major points of discussion at the talks that involved         Japan, Russia and Canada refused to extend
 slowing the destruction of forests, sharing technology    Kyoto without the participation of the world’s two top
 to produce energy in less-destructive ways, helping       polluters - China, which has no requirements as a
 poor countries adapt to the inevitable changes to         developing country, and the United States, which
 the climate, and building a multibillion-dollar fund      rejected the treaty in 2001. Together, China and the
 to further these goals.                                   US emit about 40 percent of the world’s greenhouse
                                                           gases. Japan, Russia and Canada want a separate
     At the last year’s climate talks in Copenhagen, US
                                                           agreement regulating all nations.
 President Barack Obama pledged the United
 States would cut emissions in a range of 17 percent           In a move which could potentially save the climate
 below 2005 levels by 2020. “We must stand behind          talks, China announced in the Conference that it
 the underpinnings of what our leaders agreed to last      would be prepared to make emissions reduction
 year,” Jonathan Pershing, the head of the US              binding. “We can create a resolution and that
 delegation, told reporters on the first day of the        resolution can be binding on China,” said Huang
 Conference. “We are not going to solve the whole          Huikang, the Chinese foreign ministry’s envoy for
 problem this year, but we can lock in bigger and better   climate change talks. China’s intensity (the amount
 arrangements every year,” said Christiana Figueres, the   of CO2 emitted for each dollar of economic growth)
 Costa Rican diplomat who took over this year as           binding under a UN resolution is a compromise it
 executive secretary of the United Nations Framework       hopes will encourage developed countries to
 Convention on Climate Change (UNFCCC).                    continue the existing Kyoto Protocol. China’s target
 He added, “Multilateral negotiations such as this one     would still be voluntary, stressed China’s chief
 involve not just solving an environmental problem but     negotiator Xie Zhentuam in contrast to developed
 actually involve the transformation of economic           national targets under Kyoto. Targets for developed
 patterns and the economic structure we have lived with    countries are imposed by the international community,

                                                           5                  ENVIRONMENT            ACCOUNTING
WISTA                                                                                         DECEMBER 2010

 but Beijing’s targets would be offered to the            ii)To Cut Carbon Emissions- The world needs to
 community by China.                                      make “deep cuts” in carbon emissions. But developed
                                                          countries must “take the lead” and poor countries
     In a dramatic move that will alter India’s climate   need more time to develop. Developed countries
 change policy irrevocably and have potentially very      will consider extending the Kyoto Protocol, but only
 deep impact on the economy, Jairam Ramesh, the           as a part of a wider agreement that commits all
 Indian Environment Minister, declared in the Cancun      countries to making emissions cuts. Poor nations
 Conference that India was willing to commit to legally   must also report on emission cuts against international
 binding commitments as part of an international          standards, but only after funding has been delivered
 climate deal. Under the UNFCCC and Kyoto                 to help build the appropriate mechanisms. The
 Protocol, neither India nor any other developing         emerging economies like India and China would
                                                          only have their GHG mitigation action subject to
 country is required to undertake any legally binding
                                                          international consultation and analysis, while
 commitments to reduce their emissions.                   their measurement, reporting and verification (MVR)
     India’s move came as a surprise as the Cancun        would be domestic.
 meeting had been struck in deadlock for three
                                                          iii) To Help Poor Countries Cut Carbon and Adapt
 days running over the possible death of Kyoto
                                                          to Climate Change- To pay developing countries
 Protocol. The pressure and focus has shifted away from
                                                          £ 60 million ($ 100 million) per annum by
 India to countries like Japan and Association of
                                                          2020 to adapt to climate change and develop green
 Small Island States that had held the negotiations
                                                          technology. Also to consider “a climate risk insurance
 ransom with their demands.
                                                          facility” to help poor countries cope with extreme
     "Climate financing is one of the most important      weather impacts and to share green technology.
 aspects of our efforts to address the climate change,”
 Mr Ban Ki-moon, UN Secretary General told a side         Post Conference Views
 event related to the High-Level Advisory Group on             "The Cancun decision creates an opportunity
 Climate Change Financing. The Group was constituted      for the world to raise the collective level of emission-
 by the Secretary-General and is co-chaired by            reduction targets in the months and years ahead,"said
 Prime Ministers Meles Zenawi of Ethiopia and Jens        Alden Meyer, policy director for the Washington-
 Stoltenberg of Norway, to look into mobilizing           based Union of Concerned Scientists. "But it doesn't
 financing to help developing nations deal with           guarantee success, and there is no more agreement
 climate change.                                          on how much should be done and by which countries
     At the UNFCCC in Copenhagen, Denmark, last           than there was when negotiators arrived in Cancun."
 December, developed nations pledged $ 30 billion of          The major emitters like the United States and China,
 fast-track funding for developing countries through
                                                          the emission-reduction commitments are voluntary,
 2012 and committed to jointly raise $ 100 billion
 annually by 2020. In the report submitted by the         made under the political deal reached last year in
 Advisory Group on Financing stated that                  Copenhagen, an agreement that many developing
 challenging goal of raising $ 100 billion annually       countries bitterly denounced. The Cancun offers no
 by 2020 is feasible.                                     clear vision as to how these pledges will become
                                                          part of a binding accord.
 Cancun Climate Agreement
 i)To Fight Climate Change-Climate Change is “one             The conclusion of the Cancun talks was no small
 of the greatest challenges of our time.” Countries       achievement, as countries yielded on deeply held
 should take urgent action to hold the rise in average    convictions and perceived national interest to prevent
 temperatures below 20C (3.6F). It would be worth-        the total collapse of the international effort to
 while to reconsider in 2015 whether the goal for         comabt cliamte change.
 global average temperature rise should be decreased          To avoid a train wreck, the negotiators
 to 1.5 0C. Fighting climate change requires a paradigm   esentially agreed to disagree at Cancun, but it will be
 shift that requires more sustainable production,         difficult to avoid a showdown at next year's submit
 consumption and lifestyles.                              in Durban.

ENVIRONMENT       ACCOUNTING                          6
WISTA                                                                                              DECEMBER 2010


                      IN FOCUS



 CLIMATE           CHANGE           AND       GLOBAL
 WARMING
     Global warming is the biggest issue facing the
 world today. Almost all scientists now agree that quick
 action is required to reduce carbon emissions and this
 has been well recognized by the governments around
 the world. In case of delay, air temperatures are
 likely to rise by 2 degree Celeius by 2050 or sooner
 which could threaten upto 40% of species with                    are completely stopped. That means no matter how
 extinction and up to 200 million people could                    much we curb our emissions today, we may not be
 become refugees through flooding or drought.                     able to undo the damage that has already been
 Global Warming and Ice age                                       done anytime soon.

      In the early 1970s, there were several frigid winters       Global Warming and Atlantic Ocean
 in a row but by the end of that decade, predictions had              The Atlantic Ocean circulation (termed meridional
 swung the other way and experts began worrying about             overturning circulation, MOC) is an important
 rising temperatures. Since then, governments and                 component of the climate system. Warm currents,
 environmental groups have been pushing for regulations           such as the Gulf Stream, transport energy from the
 and changes in public energy consumption to reduce               tropics to the subpolar North Atlantic and
 greenhouse gases and help reverse global warming.                influence regional weather and climate patterns.
     According to one school of thought, a warming                Once they arrive in the North and currents cool,
 planet is one that's less likely to wind up in an ice age.       their waters sink and with them they transfer
 Because the Earth is always going through warming                carbon from the atmosphere to the abyss. These
 and cooling cycles, and it has been in one of the                processes are important for climate but the way the
 warming cycles for about 12,000 years now, scientists            Atlantic MOC responds to climate change is not
 say it's inevitable that we all hit another chill                well known yet.
 sometime in the next 10,000 to 100,000 years.                        A new study shows that the Atlantic MOC in
     Another school of thought makes the opposite                 the past was very sensitive to changes in the salt
 prediction,ie, global warming might actually lead to             balance of Atlantic Ocean currents. Similar changes
 another ice age. According to this theory, warming               in seawater salt concentration are expected to
                                                                  occur in the North Atlantic in the course of climate
 temperatures disrupt ocean currents, particularly
                                                                  warming over the next 100 years. Therefore, the
 the Gulf Stream, the flow that redistributes warm
                                                                  data to be published in the journal "Nature" offer
 water from the Gulf of Mexico to northern Europe.                the climate modelling community the opportunity
 As the Gulf Stream makes its deposits of warm                    to calibrate their models and improve their
 water along the coasts of Great Britain and                      capacity to predict reliably future ocean and
 northwestern Europe, it keeps the temperature                    climate change.
 there warmer than they would be otherwise.
                                                                  Conclusion
     According to a study by the National Oceanic
 and Atmospheric Administration (NOAA), the                           Climate experts haven't even come to a
 changes in ocean surface temperature, rainfall, and              consensus about the cause and effects of global
 sea level that have already occurred are irreversible            warming, let alone whether it might prevent or
 for a thousand years after carbon dioxide emissions              trigger the next ice age.

                                                              7                    ENVIRONMENT          ACCOUNTING
WISTA                                                                                             DECEMBER 2010

                                                            ExxonMobil works with the United Nations World
                   CASE STUDY                               Conservation Monitoring Centre (WCMC) on a
                                                            Proteus Partnership, a project designed to provide
 EXXONMOBIL : CORPORATE CITIZENSHIP                         ready access to comprehensive, high quality information
 REPORT - 2009                                              and data on worldwide environmental conservation
                                                            activities and biodiversity. Company conducts
 Introduction                                               environmental, socio-economic, and health impact
     ExxonMobil is the world's largest publicly             assessments (ESHIAs) and integrates the results into
 traded integrated petroleum and natural gas company.       project evaluation, planning and decision - making.
 The company operates facilities and markets products       These early decisions help to reduce a project's
                                                            environmental footprint by addressing energy needs,
 globally, and explores for oil and natural gas on six
                                                            water use, land use, air emissions, impacts on sensitive
 continents. ExxonMobil uses innovation and
                                                            environments, effects on local communities and
 technology to deliver energy to meet world's growing
                                                            biodiversity protection.
 demand. Extensive research programs of the company
 support operations, enable continuous improvement             ExxonMobil is actively involved in a worldwide,
 in each of the business lines, and explore new and         multi - year industry research effort on the effects of
 emerging energy sources and technologies.                  exploration and production sound on marine life. This
                                                            program has improved research by characterizing
     The 2009 Corporate Citizenship Report describes
                                                            industry sound sources; developing PAM GAURD, a
 company's efforts in six focus areas, namely corporate
                                                            marine mammal identification software; and
 governance, safety and health, environmental
                                                            improving satellite tags for animal tracking.
 performance, managing climate change risks,
 economic development, and human rights and                 ii) Designing Facilities and Operations-
 security. It describes the progress made by the            ExxonMobil complies with all applicable host-country
                                                            regulatory requirements and, where there are none, the
 company and opportunities for improvement in order         company performs to standards that are protective of
 to meet the world's growing energy demand. The             the environment. The ExxonMobil's 'Environmental
 activities undertaken and efforts made by the              Standards' set the basis for responsible environmental
 company for protection and preservation of                 performance in regions of the world that do not have
 environment are discussed hereunder.                       comprehensive environmental protection requirements.
                                                            Standards include control of NOx emissions, flare and
 Environmental Performance
                                                            vent reduction, energy efficiency, drill cuttings discharge,
      ExxonMobil is committed to conducting business in     water, waste, land use, and socio - economic
 a manner that protects the environment. Environmental      management. Standards for air emissions (sulphur
 improvement is integrated in company's business            oxides, VOCs, and particulate matter) were developed
 strategies and address key environmental issues            in 2009, and a marine geophysical operations
 specific to each business. Integrating environmental       standard is being developed in 2010.
 considerations during the development of a project         iii) Operating with Integrity-Operations Integrity
 improves design and operational reliability and            Management System (OIMS) is the cornerstone of the
 reduces costs over the life of the project. Operating in   company's approach to communicating expectations,
 an environmentally sound manner helps to maintain          measuring progress, and striving for continuously
 license to operate, enhance local community                improve environmental performance.
 relationships, and creates competitive advantage for       a) Spill Prevention-In 2009, there were
 the company.                                               approximately 27,000 marine vessel voyages, and
     A sustainable approach adopted by the                  there was only one leak of trace amounts of oil from a
 company to environmental protection involves the           long-term leased vessel. There were no spills from
 following four key steps:                                  ExxonMobil marine affiliate owned and operated
                                                            vessels or barges. This can be attributed in part to
 i) Assessing Surroundings - Access to sound data           rigorous screening process for all marine vessels,
 on environmental aspects and biodiversity is an            which examines hundreds of technical, operational,
 important input to the assessment process.                 and other non-commercial factors.

ENVIRONMENT        ACCOUNTING                           8
WISTA                                                                                         DECEMBER 2010

 b)Air Emissions from Operations - In 2009, company's     with local regulations. Since 2005, company has
 combined emissions of volatile organic compounds         successfully reused or recycled on average about
 (VOCs), sulphur dioxide (SO2), and nitrogen oxides       37 percent of the hazardous waste generated from
 (NOx) decreased by 14 percent from 2008 and 36           various operations.
 percent from 2005 levels. By year-end 2009,
                                                          e)Regulatory Compliance and Expenditure-
 company's US refining facilities achieved a more
                                                          Worldwide environmental expenditure by the
 than 65 percent reduction of combined NOx and
                                                          company in 2009 totaled about $ 5.1 billion. This
 SO2 emissions compared to 2005. Since 2005,
                                                          included about $ 2.5 billion in capital expenditure
 company's global chemical operations have been
                                                          and about $ 2.6 billion in operating expense. Fines and
 averaging a reduction of 7 percent per year for
                                                          settlements paid in 2009 account for less than
 VOCs and 5 percent per year for NOx per unit of
                                                          one-tenth of 1 percent of total environmental
 production.
                                                          expenditures.
 c)Fresh Water Management- In 2009, the net
 consumption of fresh water at company's operations       iv) Restoring the Environment-Remediation and
 was 2150 million barrels, representing a 3-percent       restoration activities are a critical step in reducing
 reduction from 2008. Since 2005, company has             company's overall environmental impact and are a
 recycled over 50 percent of fresh water used, which      commitment to company's environmental policy.
 aids in effectively managing the consumption.            Company-wide remediation results have improved
                                                          through the execution of a disciplined, globally
 d)Waste Management-ExxonMobil uses a tiered
                                                          consistent approach to manage a portfolio
 approach to reduce both hazardous and non - hazardous
                                                          of projects.
 waste. The company attemps to reduce waste at its
 source, thereafter recycles or reuses materials where         The performance data related to environmental
 possible. Any remaining waste is either treated to       performance of company's operations and facilities
 render it non-hazardous or disposed of in compliance     is given in Table1 below.


                                                TABLE-1
                                        Environmental Performance
  S . No   D e scr ip t io n                                                       20 06 2 007    20 08   2 009
  1        M ar ine ve ssel spills ( ow ne d/ope r ate d a nd long -te rm               0      0      0       0
           le a sed ), num b er of h ydro ca r bon sp ills > 1 ba r re l
  2        O the r spills ( not f ro m m ar ine ve sse ls), nu m be r of oil,        2 95   252    2 11     241
           c he m ic a l, an d dr illin g fluid sp ills > 1 ba rr e l
  3        H yd roc a rb ons spille d, thous and s of ba r re ls                       40      8     20      18
  4        C o ntr olled      hyd roc a rb on     d isch ar ge s    to   wa ter ,     1.9   1 .7    1.8     1 .4
           th ousa nd s o f tonn es
  5        S u lfur dioxid e ( SO 2 )e m itte d, m illio ns of m e tric tons        0.24   0.21    0.19    0.16
  6        N itro ge n oxid es ( NO x) e m itte d, m illio ns of tonn es            0.18   0.16    0.15    0.13
  7        V ola tile o rga nic c om p ound s (V O C s) e m itte d,                 0.18   0.16    0.15    0.13
           m illions of ton nes
  8        V O C s em itte d, m etr ic ton ne s per 100 tonn es of t hro ughp ut or pr od uctio n:
  8 .1     U pstr e am                                                            0 .0 71 0.073 0 .0 71   0.069
  8 .2     R e f ining                                                            0 .0 16 0.015 0 .0 13   0.011
  8 .3     C h em ica l                                                           0 .0 43 0.039 0 .0 43   0.036
  9        T ota l ha z ar do us w a ste dispo sed f rom ope r atio ns,              1 22   117    3 86     816
           th ousa nd s o f to nne s
  10       E nvir onm en tal e xpe nd itu re s, b illio ns of d ollar s               3.2   3 .8    5.2     5 .1
   
                                                         9                   ENVIRONMENT           ACCOUNTING
WISTA                                                                                             DECEMBER 2010

                                                              positive radiative forcing tends to warm the surface
            ACCOUNTING FOR AIR                                of the Earth, negative forcing tends to cool it.
                                                                   (World Meteorological Organisation, Nov 29,
 Carbon Market Fund                                                                                     2010)
     To help the emerging countries set up their              Shanghai Pollution at New High
 own carbon markets, the World Bank (WB) is
 launching a new multi-million dollar fund in                     China’s largest metropolis Shanghai has suffered
 Mexico. WB president Rebert Zocellick will launch            from high levels of pollution since early November
 the fund in Caucun shortly, where countries are              when its pollution index figured far higher than the one
 involved in global climate negotiations to                   recorded during the six months of the World Expo.
 toughen existing pledges to cut carbon emissions.            The city's air pollution index crossed 100 for eight
     He said, “While (developing) countries would             days during the month.
 like to see a comprehensive global accord on climate            China’s environmental standard rates a reading
 change, they are not waiting for one.” Adding further,       from 50 to 100 as ‘good’ and above 100 as ‘polluted’.
 the president said, “They are acting now and
 acting differently to shift from being climate vulnerable       The latest pollution that occurred on a November
 to being climate smart.”                                     day reached 107, when on November 13 it had
                                                              touched 370, the highest level in the past decade.
     Technical and other support to developing
 countries to develop their own carbon markets, will              The index exceeding 300 makes even healthy
 be extended by the fund which could reach up                 people experience reduced endurance during
 to $ 100 million.                                            physical activities as they suffer strong irritations
      “We know that the poorest countries will suffer         and other such symptoms. Poor air was reported on
 the earliest and the most from climate change,” Zoellick     a day after the World Expo finished when the
 added. “They will bear the brunt of changing weather         index hit 156.
 patterns, water shortages, and rising sea levels even            The recent pollution data stood in sharp contrast
 though they are the least equipped to deal with them.”       to figures recorded during the multibillion-yuan
                                  (Reuter, Dec 8, 2010)       fair, when more than 98% of the days were
                                                              recorded as ’good’.
 Concern over GHG Emissions
                                                                  The city’s air-monitoring center blamed
     The World Meteorological Organization’s 2009             worsening air conditions on sandstorms sweeping
 Greenhouse Gas Bulletin, has disclosed that greenhouse
                                                              across northern China on Nov 11. Shanghai also
 gases have reached their highest levels recorded
 since pre-industrial times. The total radiative forcing      experiences higher risk of air pollution during
 of all long-lived greenhouse gases has increased by          winter due to cold wave bringing polluted air from
 27.5% from 1990 to 2009 and by1.0% from 2008                 inland provinces.
 to 2009, reflecting the rising atmospheric burdens               People believed           the resumption of
 of carbon dioxide, methane and nitrous oxide.                construction work after the Expo and the easing of
     Greenhouse gas concentrations have reached               pollution controls in suburban and rural areas
 record levels despite the economic slowdown.                 contributed to the recent increase in pollution. Many
 These would have been even higher without the                construction sites in the city were told to stop work
 international action taken to reduce them. Not only          during the Expo to ensure smooth traffic flow and
 that, potential methane release from northern                good air quality. The government prohibited
 permafrost, and wetlands, under future climate               straw-burning and launched clampdown on
 change is of great concern and is becoming the               heavily polluting trucks.
 focus of intensive research and observations.                    Although there were ‘outside influences’ on the
     Carbon dioxide (CO2) is the single most important        recent surge in air pollutants, the government still
 anthropogenic greenhouse gas in the atmosphere               needed a long-term environmental protection
 and contributes 63.5% to the overall global radiative        mechanism.
 forcing by long-lived greenhouse gases. While                                        (China Daily, Nov 25, 2010)

ENVIRONMENT         ACCOUNTING                           10
WISTA                                                                                           DECEMBER 2010

                                                             soon. Tunnels for electrical cables and underground
         ACCOUNTING FOR WATER                                railway stations will get flooded and unnatural
                                                             crimson streams will spring from the ground across
                                                             the suburbs to the east of Johannesburg as the
 Pollution Impacts Agri Produce                              rising water escapes.
     Paper mills and fabric dye companies in Herbei              The government has had acid mine drainage on
 Province in China, have made the farmers worried            its urgent agenda since 2009 but has yet to act,
 about potential contamination. They dare not eat            according to University of the Witwatersrand
 their own produce.                                          geology professor Terry McCarthy, who released a
                                                             study on the problem in Johannesburg. “We have
     This is the case of Yeqiao village, located about       to do something. We can’t let things take their
 500 metres to the west of the Hengli dyeing plant. The      natural course.”
 fabric dye business flourishing in Rongcheng County             Johannesburg exploded in a gold rush after the
 in Hebei Province has brought severe water pollution        metal was discovered in 1886. Gold mines operated
 to the region. The Yanzhao Metropolitan News                along a 25-mile strip from Roodepoort to the west of
 revealed that water in Yeqiao village well is all black     Johannesburg to Boksburg to the east, as hundreds
 due to pollution. During rainy season, the wastewater       of mining companies gouged out a gigantic hole
 from the canal spills over into the crops, and all the      under the city and its suburbs.
 crops within the flooded area die with water probably           When rain falls, water runs off the hills and
 containing stuff like acid and caustic soda.                much of it is absorbed by the earth. The water turns
     Further to the south, there is another deeper,          toxic when it reacts with heavy metals underground.
 canal next to a small workshop and two large trash piles        McCarthy warned that current mining operations
 nearby. A stream of dirty water is flowing out from an      in other parts of South Africa were doing even more
 opening under the building, which used to be                damage, and would eventually pollute some of
 another paper mill, but now serves as an illegal            Johannesburg’s main drinking water sources, the Vaal
 recycling and reprocessing plant for the leftover           dam and Vaal River, posing greater costs for future
                                                             generations. Some of the toxic water from the mines is
 plastic from the paper mill.
                                                             polluted with uranium. Water resources around
                          (Epoch Times, Dec 3, 2010)         Johannesburg are grossly contaminated by mining.
 Rising Toxic Water                                          Another scientist disclosed that water through the
                                                             reserve had extremely high sulphate concentrations.
     Toxic water is rapidly filling a huge pit caused
                                                                             (Los Angeles Times, Nov 26, 2010)
 by mining below the South African city, Johannesburg.
 A spring just over 20 miles northwest of Johannesburg       Water Pollution Impacts Birds
 is oozing blood-red water. The experts have                    Water pollution is threatening the bird population
 warned that it would soon be too late to build the          go gay. Researchers believe that poisonous metal
 pumps and treatment plants needed.                          compounds entering the food chain can affect bird
     The water is toxic, highly acidic and full of           sexuality, causing a reduction in offsprings.
 heavy metals, so nasty that newly weaned impala and              Even relatively low levels of methyl
 other animals in the Krugersdorp Game Reserve               mercury in the diet of male white ibises caused the
 downstream dare not drink it for fear of death.             birds to pair up with each other, snubbing females.
                                                             Methylmercury is a form of mercury, the metal which
      The water, a poisonous legacy of the gold mining       is liquid at room temperature and is better known as
 industry, is dead. Not one living organism survives         quicksilver. It has been seeping into groundwater
 in it. Millions of gallons of the same kind of toxic        from industry for years.
 water lie underneath Johannesburg, a city of nearly             Mercury in their food can depress their
 4 million people, and it’s rising 50 feet a moth.           testosterone levels. In the worst scenario, the
    The blood - red water, technically named as acid         production of young would fall by 50%. Other
 mine drainage, will fill the subterranean parking           birds would probably be similarly affected.
 garages in about two years’ time if nothing is done                           (Asian Times News, Dec 2, 2010)

                                                            11                 ENVIRONMENT           ACCOUNTING
WISTA                                                                                             DECEMBER 2010

                                                              heritage area, will look into particular waste
         ACCOUNTING FOR WASTE                                 solutions best suited to their properties.
                                                                  Food waste will be collected weekly and there
                                                              will be more opportunity to recycle other household
 America Recycles Day
                                                              items. Lowering the amount of rubbish that is sent
     The plastics industries of the American Chemistry        to landfills, reduces waste, helps the environment
 Council (ACC) celebrated the America Recycles Day            and saves money.
 in a novel way. They placed recycling bins in key
                                                                                   (edie newsroom, Nov 19, 2010)
 spots along California’s coastline to divert over 45 tons
 of plastic from the waste stream this year and over          Nuclear Waste Reporitory
 105 tons of other materials.                                     A bill seeking to force the Nuclear Regulatory
                                                              Commission to carry out the licensing process for
     America Recycles Day is the only nationally
                                                              the Yucca Mountain nuclear waste repository, has
 recognized day dedicated to encouraging Americans
                                                              been signed by several Republican Congressmen.
 to recycle. Its purpose is to promote the social,
 environmental, and economic benefits of recycling                The bill was introduced by Rep. Mark Simpson
 and encourage more people to join the movement               of Idaho in response to statements made by NRC
 to protect the environment for future generations.           Chairman Gregory Jaczko advocating for the closure
                                                              of licensing activities based on the guidance of
     The mutual partnership throughout the state is
                                                              the Obama Administration’s 2011 proposed budget.
 helping to keep plastics out of the natural
 environment and getting them into recycling bins                The Congress has repeatedly supported
 where they belong. ACC has initiated a number of             Yucca Mountain as the only option for a long term
 creative programs to educate California youth about          nuclear storage site, but the proposal was rejected.
 recycling and the environment. Its GoH2O program
                                                                      (Waste and Recycling News, Nov 24, 2010)
 encourages students in the LA’s BEST after school
 program to use reusable, recyclable plastic water            Recovered Paper Collection Rates
 bottles to help them drink more water, and the Recycle           Recovered paper collection in Asia is on
 Goal program that encourages youth soccer                    increase and some countries are even considering
 teams to recycle. Alliance FC recycled 197 pounds of         legislation to induce higher collection rates, according
 plastic and 425 pounds of material overall.                  to the Bureau of International Recycling (BIR).
        (American Chemistry Council, Nov 16,2010)             However, exporters to the region need to focus on
                                                              quality if they want to sustain their volumes. In the
 Food Waste Collections                                       European market, most countries are witnessing
                                                              “good” mill demand but “weak” collection
     The Edinburg City Council, that ran recycling
                                                              volume, particularly among the mechanical deink
 collections for many years, has been omitting
                                                              and woodfree grades. Europe achieved a world
 plastic bottles and food that make the most
                                                              record paper recycling rate of 72.2% in 2009 as
 of the waste going to landfills.
                                                              collected volumes fell 3.2% to 58 million tones.
     But now with inclusion of plastic bottles and                RSBaxi of J&H Sales International predicted
 food, it is expanding its recycling collection in            that China will import around 24 million tonnes of
 the Scottish capital. Accordingly, plastic bottles           recovered paper from all sources this year, compared
 collection will commence early in 2011 while food            to more than 27.6 million tonnes in 2009 and 24.15
 waste collections will begin on a trial basis.               million tonnes in 2008. Recovered paper supply has
                                                              been more stable in Germany but the new mill
      It is estimated that 20,000 tonnes of food waste
                                                              capacity of the east has continued to apply upward
 is thrown out every year in Edinburgh. If the trial is
                                                              pressure on prices.
 successful, it will be expanded to around 250,000
 houses. A consultation with residents in the world           (Bureau of International Recycling, Nov 26, 2010)

ENVIRONMENT         ACCOUNTING                           12
WISTA                                                                                            DECEMBER 2010

                                                             Environment Impact Report
                  LEGAL SCENE
                                                                 High Court of Himachal Pradesh, India, has
                                                             directed the Advocate General of the state and
 EPA Sued                                                    Assistant Solicitor General of India to place the report
                                                             before the Chief Minister of the state and Union
     A lawsuit was filed in the US District Court in         Minister for Environment and Forest respectively
 Washington by the Center for Biological Diversity           that the Additional Chief Secretary (Forest) Ajay
 and two other groups suing the Environmental                Shukla has filed on the issue of damage caused
 Protection Agency to try to force it to prevent lead        to environment in the state due to execution of
 poisoning of wildlife from spent ammunition                 hydro - electric projects.
 and lost fishing tackle.                                        While perusing the report, a division bench
     The case was filed when their petition to ban           comprising Justice Deepak Gupta and Justice Sanjay
 lead ammunition and tackle, which the groups say            Karol observed that the Shukla committee has
 kills 10 million to 20 million birds and other animals a    submitted in its report that the state policy of
 year by lead poisoning, was denied by EPA.                  allotment of the hydel projects is short-sighted,
                                                             unplanned and could result in serious depletion of
      The EPA has said it does not have the legal            state’s natural resources in the long run. The court
 authority to ban lead in ammunition and that the            observed that as per the committee the state has not
 group did not demonstrate a ban for fishing tackle
                                                             made any study about the impact of construction in
 was necessary to protect against unreasonable risk
                                                             the river basins of the state.
 of injury to health or the enviroment.
                                                                 The court has directed forest ministry, government
                       (Business Week, Nov 30,2010)          of India, state pollution board and all parties
 EU Sues Countries Over Air Quality                          executing projects of Karcham Wangtoo Parvti II &
                                                             III Alin Dhuhangan , Uhl III, Kol Dam, Sara Kuddu,
     Directive 2008/50/EC on ambient air quality and         Sorang, Chamera III, Tidong and Rampur impleaded
 cleaner air for Europe, requires member states to limit     as respondents to the petition to study the report and
 the exposure of citizens to the tiny particles known as     submit their reply thereto by October 1. The court
 PM10. The legislation sets limit values for exposure        added that in case parties do not file response to the
 which were to be met by 2005, covering both an              report, it shall be presumed that parties executing
 annual concentration value (40 μg/m3), and a daily          project do not want to file the reply.
 concentration value (50 μg/m3) that must not be
 exceeded more than 35 times in any calendar year.                                (Law et al News, Aug 11, 2010)
                                                             Request to Close Waterways Denied
     Though there is a provision for seeking exemption
 from PM10 limit value until 2011,but these exemptions           A request by five US states to close the manmade
 are subject to a number of conditions. A member             waterways that connect the Great Lakes to inland
 state must demonstrate that it has taken steps to           rivers, was denied by the US district court on the
 achieve compliance by the extended deadline and             grounds that there was no imminent threat of
 that it is implementing an air quality plan setting out     Asian carp entering the lakes.
 the relevant abatement actions for each air
 quality zone.                                                   Five states bordering the lakes, led by Michigan,
                                                             had sought a preliminary injunction that would have
     On the recommendation of Environment
 Commissioner Janez Potoènik, the Commission has             required the USArmy Corps of Engineers to
 therefore decided to take Cyprus, Italy, Portugal and       immediately shut off the waterways, arguing action
 Spain to European Court of Justice.                         was necessary to head off a disaster for the lakes’
                                                             $7 billion fishery.
    While all four member states have applied for
 time extensions, the Commission considers that the              The judge said the states were unlikely to win
 conditions for granting them extesion have not been         their lawsuit against the Army Corps and had not
 met for several non-compliant air quality zones.            proved the threat of a carp invasion was imminent.
                 (Europe Press Room, Nov 24, 2010)                                (PlanetArk News, Dec 3, 2010)

                                                            13                  ENVIRONMENT           ACCOUNTING
WISTA                                                                                             DECEMBER 2010

                                                                 When the concentrated sunlight strikes the boiler’s
                ENERGY SCENE                                 pipes, it heats the water inside to more than 1000F.
                                                             This creates superheated steam which is piped from
 US's Giant Solar Projects                                   the boiler to a standard turbine that generates
                                                             electricity. Nothing is wasted in the process. To conserve
      The United States administration is moving fast        precious desert water, the steam is aircooled and
 to develop solar power on public land, particularly in      piped back into the system in a closed loop
 California. Federal and California state officials and      environmentally-friendly process. The project will
 executives from ‘Bright Source Energy’ in the Mojave        use only 100 acre feet of water per year.
 Desert recently assembled for a groundbreaking event
 for the world's largest solar-power facility at Ivanpah.        The low-impact environmental design uses
                                                             mirrors mounted on individual poles that are placed
     The Invanpah Solar Electric Generating System with
                                                             directly into the ground. The design also allows
 three solar power towers surrounded by thousands of
                                                             for vegetation to co-exist within the solar field.
 mirrors, was approved earlier for a 3500 acre site
 on public land in Ivanpah Valley in Southeastern
                                                                 The government has also approved another big
 California’s San Bernardino County. Such types of
                                                             solar energy project, Blyth Solar Power Project,187
 projects can help meet the county’s long-term
                                                             miles to the north. It would not be “the largest in the
 energy and environmental goals besides generating
                                                             world but largest one ever built on the US public land.
 jobs and pushing the county towards a cleaner,
                                                             It will produce 1000 mw of solar power, enough
 and more sustainable future.
                                                             to power up to 7,50,000 homes. Proposed by Palo
                                                             Verde Solar I, a subsidiary of Solar Millennium, LLC,
    Ivanpah is an outstanding example of the
                                                             it will cover 7025 acres of public land eight miles
 progress made in building a renewable energy
                                                             west of Blythe in Riverside County, California, near
 economy. The ground breaking of the Ivanpah Solar
                                                             the Nevada border.
 Electric Generating System represents a historic
 moment in the county’s move to a clean energy
                                                                 The Blyth Solar Power Project is a major
 economy.
                                                             milestone in America’s renewable energy economy
                                                             showing USA's interest in competing and
     The US can boast of becoming leader in the
                                                             leading in the technologies of the future. The project
 clean energy race by building the largest solar plant in
                                                             also shows how harnessing renewable resources can
 the world at Ivanpah. Bright Source announced
                                                             help solve unemployment problem at home. The
 that power generation company NRG Energy, has
                                                             project uses parabolic trough technology with rows
 purchased the largest ownership stake in the project
                                                             of parabolic mirrors focusing solar energy on
 with an investment of up to $ 300 m. It has also
                                                             collector tubes.
 received a conditional commitment from the US
 Department of Energy for $ 1.37 billion in loan                 A new 230 kV transmission line will be
 guarantees to support the financing of the                  constructed to connect the Blythe Solar Project to
 Ivanpah project.                                            the Devers-Polo Verde # 2500 kV line at the
     The power generated at Ivanpah will be sold             Colorado River substation. With the approval of the
 under separate contracts with Pacific Gas and               Blythe Project, the sixth solar project approved on
 Electric, and Southern California Edison. Ivanpah           BLM public land, shall have the potential to generate
 will reduce CO2 emissions by more than 400,000              up to 2800 mw of renewable energy that would
 tons annually, the equivalent of taking more than           suffice the demand of two million homes.
 70,000 cars off the road.
                                                                  The Blythe project is expected to create 1066 jobs
     To generate power at the Ivanpah power tower,           at the peak of construction and 295 permanent jobs.
 thousands of mirrors will track the sun and reflect
 the sunlight to a boiler that is mounted atop a tower.               (Environment News Service, Oct 27, 2010)

ENVIRONMENT        ACCOUNTING                           14
WISTA                                                                                            DECEMBER 2010


         GREEN & NOTEWORTHY                                 Polluted Holidays
                                                               The authorities in Tehran were forced to declare
                                                            two days holiday because of air pollution. This
 Coast Guard and Oil Spills
                                                            occurred for a second time in a period of one month.
     An internal audit has found that the Canadian Coast         In Tehran, most of the pollution comes from
 Guard lacks the training, equipment and management         vehicles on the congested roads of the rapidly
 systems to fulfil its duties to respond to offshore        growing metropolis of more than 12 million people,
 pollution incidents, such as oil spills. As such,          and the level of pollutants far exceeds World Health
 assurance cannot be provided that the conditions           Organization standards. Each year 1.4 million vehicles
 exist to enable (environmental-response) services to
 be provided in a national consistent manner.               in the city pump an estimated 5 million tons of CO2
                                                            into the air.
     The Coast Guard’s “environmental-response” unit
                                                                 The geographical position of Tehran is similar to
 deals with roughly 1,300 reported pollution incidents
 each year, despite having only about 80 staff and a        the city of Los Angeles and Mexico City, with mountains
 modest budget of $9.8 million. The agency has              ringing the Iranian capital on three sides and the warm
 12 staffed depots, with equipment spread across            air rising from the other, which trap the pollution, and
 the country at 70 additional locations.                    there is little wind to clear it. A similar effect occurs
                                                            for Mexico City and Los Angeles, though their
     The audit describes Coast Guard as an agency           condition is not as extreme as that of Tehran.
 that operates more like a loose alliance of regional
 offices than a national organization.                         The ministry is trying to reduce pollution and is
                                                            converting heating systems in residential and
     A spokeswoman for the Department of Fisheries                  VISIT OUR WEBSITE
 and Oceans, which is responsible for the Coast             FOR ENVIRONMENT RELATED PROBLEMS
 Guard, said that the audit’s recommendations                      AND ALSO WIN A PRIZE
 have been “incorporated into the environmental-
 response work plan."                                       WITT ENVIS WEBSITE is a national repository and
                                                            dissemination centre on Environment Audit & Accounting.
                         (Canada - PostMedia News)          It parks compilations of Environment Audit Reports,
                                                            Guides, news items, books, periodicals, as also lists of
 Boasting Green Industries
                                                            Environmental Experts, Institutions and other ENVIS
     China plans to develop energy saving and               Centres. It also contains two bimonthly updates
 environmental protection industries in the next            published by WITT, ie, WISTA: Environment Audit
 five years. On November 25, the state council              and WISTA: Environment Accounting, as also the
 approved a plan to this effect. The plan covers three      monthly ENVIS Newsletter.
 industries – energy saving, environmental protection       The Website facilitates meeting the emerging
 and resource recycling.                                    information needs of industries and institutions for
      Wu Xiaoqing vice-minister of environmental            managing environmental, social and business issues
 protection said, "China’s environmental protection         and securing eco-friendly sustainable development.
 market will become one of the biggest in the world
 with an annual growth rate of 15 percent to                The WITT ENVIS Centre also provides information
 20 percent. China’s environmental protection               and guidance to industries concerning environmental/
 spending is expected to top 3 trillion yuan ($450          pollution problems.
 billion) during the 12th Five-Year Plan (2011-2015)."      Contact us on Email:           witt@envis.nic.in,
     Companies in energy-saving or environmental            info@wittsenvis.org
 protection industries are enjoying preferential            We will appreciate receiving your feedback. It will
 policies according to the current tax regulations and      help us make our services more user-friendly; and
 policy makers are considering further cutting their        you may win a prize too.
 income taxes by 50 percent, as per certain reports.                               So Visit
                (China - Green China, Nov 26, 2010)                       http://www.wittsenvis.org

                                                           15                   ENVIRONMENT            ACCOUNTING
WISTA                                                                                           DECEMBER 2010

 commercial buildings to natural gas. Authorities are
 also expanding public transport, requiring vehicle
 emission inspections and developing more green spaces.
 (Iran - Environmental News Network, Dec 1, 2010)
 Extending Kyoto Pact
     Cancun summit in Mexico will try to find a
 successor to the existing Kyoto Protocol (KP) which
 limits emission of rich nations until 2012.
      However, Japan opposes extending the Kyoto
 Protocol binding only for rich nations to limit carbon          Spokesman Dmitry Peskov of Russia said that a
 emissions and will fight for a broader deal even if         program to double the number of free-roaming tigers
 it finds itself isolated at UN talks.                       by 2022 has been approved.
     Hideki Minamikawa, vice - minister for global               Initially, $350 million will be spent over the next
 environmental affairs at Japan’s environment ministry       five years, according to the World Bank and
 said, "Simply extending a pact that excludes China          conservation organization WWF.
 and the United States, the world’s two top emitters,
 would be meaningless and inappropriate.                         Peskvo also referred to a quote by Mahatma Gandhi,
                                                             “The greatness of a nation and its moral progress
    Minamikawa at a news conference, said “European          can be judged by the way its animals are treated.”
 countries from this year have proposed that it could
 be okay to extend the commitment period of the               (Russia - World Environment News Nov 25,2010)
 Kyoto Protocol if it is joined by major emitters, but       Attaining Energy Self-Sufficiency
 we have made clear that this is not acceptable.”               The climate change minister of UK, Greg Barker
     Japan would not sign new commitments if                 urged communities to come together to create their
 the Kyoto Pact were to be extended, although it             own renewable energy projects.
 would not pull out of the framework altogether,                 While delivering the keynote address at the
 he added.                                                   Combined Heat and Power Association’s annual
     “Under the current circumstances, it is                 conference, he said the plan epitomised the vision
 inconceivable that Japan would submit its consent           of the Big Society.
 in writing, so in that case...the agreement would               Mr Barker also launched a new website called
 not apply to Japan.”                                        'Community Energy Online' to help communities find
             (Japan - Planetark News, Nov 26,2010)           out more about how to generate their own energy.
 Tiger Summit                                                    The scheme follows the Department of Energy
                                                             and Climate Change’s move earlier this year to scrap a
      Russia is one of the 13 countries home to world's      ban on local councils selling electricity back to the
 last wild tigers. It hosted a “tiger summit” attended by    national grid and aims to continue energy market
 Chinese Premier Wen Jiabao and representatives              reforms.
 from other Asian countries, the highest level meeting
 ever held to try to save a single species.                      He expressed the hope that low carbon energy
                                                             like combined heat and power plants (CHP), wind
     Russia’s Prime Minister Vladimir Putin said,            and water turbines or district heating networks,
 “It is very important to save this wonderful, imperial      would be taken up at local levels.
 creature for future generations,” adding that its
                                                                “They can generate their own heat and electricity,
 situation worldwide was approaching “catastrophe.”
                                                             and their own profits, and as a by-product, help the
 Putin and Wern agreed with other Asian nations to
                                                             UK to save energy and help cut carbon emissions.”
 try to double the world’s wild tiger population by
 2022 and save it from extinction.                                                (UK- edie news, Nov 25, 2010)

ENVIRONMENT        ACCOUNTING                           16
WISTA                                                                                              DECEMBER 2010

                                                             Municipal Solid Waste to Biofuels Summit
             EXPERTS CONVERGE                                    More than 120 experienced professionals are
                                                             gathering in Chiago, Illinois, on February 10-11, 2011
 EU Energy Law and Policy Conference                         to discuss a profitable future in the ground breaking
    The 6th Annual Conference of EU Energy Law               area of Municipal Sold Waste to Biofuels.
 and Policy will be held on 19-20 January 2011 at               The biofuels industry will converge at the
 Radisson Blue Royal Hotel, Brussels. It is being            summit to identify, discuss and overcome the key
 organized by Claey &Casteels.                               hurdles to a profitable, productive and cost efficient
     The end of 2010 is shaping up to be another             waste to biofuels strategy.
 key year for European energy policy. Under the new              Biofuels from MSW can replace more than 50% of
 Commissioner Oettinger, in addition to reaching             gasoline fuels by 2020 with every citizen producing
 agreement on the new Gas Security of Supply                 over five pounds of garbage per day. There is a surge in
 Directive which implements major new obligations on         interest for a low carbon economy, reduced
 EU gas companies, a whole series of new initiatives         capacity for landfilling and government strategy.
 are planned towards the end of this year, including:
                                                                 EyeforEnergy has provided the municipal Solid
 •    The “Energy Action Plan for 2011-2020”, laying out     Waste (MSW) to Biofuel Summit 2011 extensive
      the priority action points for 2011-2020               research inputs.
 • The “Roadmap for low carbon energy system by                  The delegates attending the summit with extensive
      2050”                                                  knowledge will disclose how to turn trash into the
 • The “European Infrastructure Package”, covering           profitable fuel feedstock of the future.
      the 10-year ENTSO plans for European                       Over 2 action packed days of industry
      infrastructure needs, priorities for infrastructure    keynotes, operator case studies, public and private
      development and funding and a communication            sector insights, and industry roundtables, and group of
      on offshore grids.                                     over 20 expert speakers will guide through the key
 • The new “EU Energy Efficiency Action Plan”,               challenges affecting biofuels in the USA.
      outlining the additional practical measures needed                                                     (PRWeb)
      to achieve the 20% savings targets agreed in the
                                                             Sustainability Conference 2011
      20-20-20 package.
                                                                The Seventh International Conference on
 • The "Proposal on transparency and integrity of
                                                             Environmental, Cultural, Economic, and Social
      wholesale market trading”, which will establish
                                                             Sustainability 2011, is scheduled to be held at the
      proper market conduct rules and a regulatory           University of Waikato, Hamilton, New Zealand from
      framework for monitoring and surveillance of           January 5-7, 2011. It will work in a multidisciplinary
      energy markets.                                        way across the various fields and perspectives.
 • The “Communication on implementing the biofuel                Plenary speakers will include some leading
      sustainability scheme.                                 thinkers in these areas, as well as numerous paper,
 • The “Commission Communication on Regional                 colloquium and workshop presentations. Parallel
      Initiatives”, which will propose how to further        sessions are loosely grouped into streams reflecting
      achieve progress within the regional initiatives.      different perspectives or disciplines. Each stream
                                                             also has its own talking circle, a forum for focused
 • A “Legislative proposal for a regulatory                  discussion of issues. Virtual participation also available.
      framework for smart grids”, which will address
      issues such as data protection, electric vehicles          Participants may choose to submit written papers
                                                             before or after the Conference for possible publication
      and open access to grids.
                                                             in The International Journal of Environmental,
      Understanding these new proposals will be vital        Cultural, Economic and Social Sustainability, a fully
 for all those involved in the EU’s energy markets.          refereed academic journal.
                                   (Claeys & Casteels)                                     (Conference Secretariat)

                                                            17                   ENVIRONMENT            ACCOUNTING
WISTA                                                                                           DECEMBER 2010

                                                                 The study projects that if the global economy
           KNOWLEDGE SPREADS                                 grows as expected, global fossil fuel emissions will
                                                             increase by more than three percent in 2010,
                                                             approaching the high emissions growth rates
 A Textbook of Environmental Science                         observed through 2000 to 2008.
 Prabhat Patnaik authored, 340-page book titled ‘A               Another co-author of the paper, CSIRO’s
 Textbook of Environmental Science,’ is an extremely         Dr Michael Raupach, said that despite the estimates
 well-structured and engaging book for the students          of carbon emissions having some uncertainties, climate
 and teachers of environmental science, physical             scientists agree that CO2 generated by human
 science and biology. It maintains the right balance         activity is the main contributor to human-induced
 between covering the core theoretical and                   climate change.
 conceptual issues associated with the subject.                 Accumulation of atmospheric CO2 is the most
     The publication presents a comprehensive                accurately measured quantity in the global carbon
 introductory treatment, ideally edited and structured       budget with an uncertainty of about four
 in an informal yet substantive style and provides an in-    percent, according to the Global Carbon Project.
 depth introduction to the concepts of environmental         Tsunamis and Hurricanes
 science. The focus is on clarity, accessibility,
 and the needs of the students and teachers.                      This book presents new research on the
                                                             mathematical description of tsunamis and hurricanes.
 Climbing Global CO2 Emissions                               The description includes dissipative terms and does
     A research led by the University of Exeter, and         not contain singularities or two valued functions.
 published in the journal ‘Nature Geosciences’, reveals      The book uses the equivalence principle of solutions
 that global emissions of the greenhouse gas carbon          of nonlinear large gas dynamic waves and of solutions
                                                             of water wave equations. An extension of the
 dioxide, are likely to reach record levels in 2010.         continuity equation by a source term due to
    The study, which also involved the University of         evaporation rates of salt seawater help to understand
 East Anglia, Australia’s Commonwealth Scientific and        hurricanes. Detailed formula, tables, and results
 Industrial Research Organisation (CSIRO) and                of the calculations are given. Contents include:
 other institutions, is part of the annual carbon            •   Introduction to wave physics
 budget update by the Global Carbon Project.
                                                             •   Types of waves
     The global CO2 emissions from the burning of
 fossil fuels in 2009 were only1.3% below the record         •   Linear wave equations
 2008 figure despite the financial crisis that hit           •   Solutions of linear wave equations
 the world last year.
                                                             •   Nonlinear wave equations
     The global financial crisis affected western
 economies, leading to large reductions in CO2               •   Physics of nonlinear wave equations
 emissions. Emissions in the United Kingdom were             •   Basic flow equations
 8.6 percent lower in 2009 than in 2008. Similar
                                                             •   Units and properties of substances
 figures apply to the United States, Japan, France,
 Germany, and most other industrialized nations.             •   Conservation of mass
 However performance of emerging economies was               •   The equation of motion
 strong despite the financial crisis, and they recorded
 substantial increases in CO2 emissions.                     •   Conservation of energy
     Professor Pierre Friedlingstein, lead author of         •   Thermodynamics
 the study, said, “The 2009 drop in CO2 emissions is         •   Vorticity theorems
 less than half that anticipated a year ago. This is
 because the drop in world Gross Domestic Product            •   Potential flow in incompressible fluids
 was less than anticipated.”                                 •   Potential flow in compressible fluids

ENVIRONMENT        ACCOUNTING                           18

								
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