Environmental Economics – Global Environment & Society Academy https://blogs.sps.ed.ac.uk/global-environment-society-academy Addressing global environmental challenges through teaching, research and outreach Tue, 30 Aug 2016 11:44:43 +0000 en-US hourly 1 Morocco’s path to solar energy https://blogs.sps.ed.ac.uk/global-environment-society-academy/2016/07/01/moroccos-path-to-solar-energy/ https://blogs.sps.ed.ac.uk/global-environment-society-academy/2016/07/01/moroccos-path-to-solar-energy/#respond Fri, 01 Jul 2016 11:32:20 +0000 http://blogs.sps.ed.ac.uk/global-environment-society-academy/?p=469 Continue reading ]]> Morocco ratified the Climate Convention in 1996 and was the first African country to host a Conference of the Parties of the United Nations Framework Convention on Climate Change (UNFCCC). In 2015, Morocco presented its INDC (Intended Nationally Determined Contribution under UNFCCC), where it is stated that Morocco’s main focus is on the energy sector and that it aims to reduce its GHG emissions by 32 % by 2030 compared to “business as usual” projected emissions, which translates into a projected cumulative reduction of 401 Mt CO2eq over the period 2020-2030. In practice, Morocco’s objective is to reach over 50 % of installed electricity production capacity from renewable sources by 2025.

The increase of percentage of renewable energy utilisation is based on both the increment of renewable energy production and the reduction of consumption as a whole. In particular, for solar energy, the target that Morocco has presented in its 2015 INDC refers to an increase in production of 14% until 2020.

Morocco has abundant wind and solar resources. According to a study by Dii (2013), wind, photovoltaic and concentrated solar thermal power industrial sectors could add up to 5% of GDP by 2030. However, as the same report suggests, this progress is dependent on the continuing financial support of the national and international organisations directly implicated in green energy investment. The use of more environmentally friendly sources of energy could halve the current  imports of fossil fuels by 2030, which currently represents 8% of the GDP, according to a study by Agénor et al (2015). The same study also indicated that fuel import costs as a proportion of the total value of exports have increased from 25% in 2003 to over 55% in 2012.

For Morocco, following the path of renewable energy is therefore a way to stay competitive and reducing their dependency on importations. This priority has been addressed by the National Government which developed “Solar Plan” as one of their seven base strategies in 2009. Solar Plan’s major objective if the creation of five major sites of solar energy production as well as “training, technical expertise, research and development, the promotion of an integrated solar industry and potentially the desalination of sea water”. (http://www.maroc.ma/en/content/solar-plan)

key sites

KWh

“Sunshine Map” (Source: http://masen.org.ma/index.php?Id=15&lang=en#/_)

As part of Solar Plan activties, in February 2016 a new milestone is reached with the inauguration of Ouarzazate Concentrated Solar Power with a capacity of 140 MW of power generation. (http://www.worldbank.org/projects/P122028/ma-ouarzazate-concentrated-solar-power?lang=en&tab=results)

The video bellow provides additional information on Ouarzazate Concentrated Solar Power, which is the first of the five sites of energy production to be inaugurated.

In 2010, the road to solar energy in Morocco was punctuated by the official beginning of Medgrid, which is a consortium of 21 industrial groups set up to promote the development of electricity networks in the Mediterranean basin with the purpose of exporting renewable energy to Europe.(http://pulse.edf.com/en/medgrid-mediterranean-electricity-network). The video bellow is an interview with Jean Kowal, Deputy Director General of Medgrid.

Since the climatic conditions of northern african countries allow for a cheaper solar energy production than in other countries in Europe, Medgrid can be an answer for both southern and northern shores of the Mediterranean in terms of clean energy. (http://pulse.edf.com/en/medgrid-mediterranean-electricity-network)

In practice, there is already in place a link for the transfer of 1,400 MW between Morocco and Spain using submarine cables along the Strait of Gibraltar, and the plan is to increase it by 4,000 MW. (http://blogs.worldbank.org/energy/renewable-energy-export-import-win-win-eu-and-north-africa) The transfer of energy between Morocco and the Iberian Energy market is already in place, and relies on the different peak times of production and demand.

For Morocco, solar energy is therefore not only a way to reduce the dependency of the importation of commodities for energy production, but also a potential source of revenue by exporting it to the countries in the northern shore of the mediterranean. In practice, the project involves major investment in not only solar production centres but also on electricity highways across continents.

Morocco seems to be looking at its own resources to feed growing demands in terms of energy. In a country particularly vulnerable to climate change such as Morocco but with strong potential for solar and wind energy production, taking the green energy road is the best way to face the future.

References

Agénor, P.-R., El Aynaoui, K. 2015. Morocco: Growth Strategy for 2025 in an Evolving International Environment. OCP Policy Center. Rabat.

Dii. 2013. Les énergies renouvelables au Maroc : Un secteur porteur de croissance et d’emplois. Report presented in Casablanca, 22 May.

EDF Pulse Official Webpage. Available in http://pulse.edf.com/en

Morocco’s INDC. 2015. Online. Available inhttp://www4.unfccc.int/submissions/INDC/Published%20Documents/Morocco/1/Morocco%20INDC%20submitted%20to%20UNFCCC%20-%205%20june%202015.pdf

Morocco’s Official Government Webpage. Available inhttp://www.maroc.ma/en

World Bank official webpage. Available in http://www.worldbank.org

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‘Brexit’ and Combating Climate Change in Scotland https://blogs.sps.ed.ac.uk/global-environment-society-academy/2016/06/10/brexit-and-combating-climate-change-in-scotland/ https://blogs.sps.ed.ac.uk/global-environment-society-academy/2016/06/10/brexit-and-combating-climate-change-in-scotland/#respond Fri, 10 Jun 2016 11:17:31 +0000 http://blogs.sps.ed.ac.uk/global-environment-society-academy/?p=462 Continue reading ]]>

By Joanna Wright

MSc Carbon Management 2015-2016

bojesen_brexit

[Source: http://www.voxeurop.eu/en/content/news-brief/4931129-brexit-would-put-europe-stake]

The front page of The Economist this week (February 27th-March 4th2016) proclaims “Brexit: Bad for Britain, Europe and the West”. Turn tothe Leader on page 9 and it is argued that not only would Brexit be damaging to the UK’s economy and security, it would also have wider European and global ramifications that “go beyond economics”.  Whilst examples of these wider impacts are given, the article makes no reference to Brexit and climate change.  There is, however, considerable debate, elsewhere.

Carbon Brief is a UK-based website currently tracking the opinions of key players in energy and climate change, in addition to other influential views that reference these topics in relation to the 23rd June vote. As of 27th February 2016, the tracker had twenty entries; four ‘leavers’ and sixteen arguing that Britain should stay in the EU.  Whilst the quotes from leavers focus on the perceived damage to the UK from EU energy policies, if challenged with regard to action on climate change, they may perhaps choose to focus on the fact that (in theory) the Climate Change Act 2008 commits the UK to reducing greenhouse gas emissions irrespective of EU membership status.

However, the ‘remainers’ are more vocal on this, with some interesting examples of cross-party consensus.  For example, Caroline Lucas, the Green Party MP, is quoted as saying “Of course it is the treatment of catastrophic climate change which hangs over everything else we’re doing to protect our environment….If we join forces with other countries, strengthening the EU-wide rules on carbon emissions that are already in place, then we have a chance of keeping future generations safe”.  Ed Miliband, MP and former leader of The Labour Party argues that “We are two per cent of global emissions, the EU is 20 per cent of global emissions. Let us not fall for the myth that somehow we will be more influential and more powerful outside the European Union”.

Whilst the arguments of those campaigning to stay in the EU are compelling, there is an interesting twist when considering the potential implications of Brexit for the continued unity of the UK.  Nicola Sturgeon, Scotland’s First Minister, has warned recently that a vote to leave the EU against Scotland’s wishes would “almost certainly” trigger another Independence referendum.  Writing in The Guardian, Martin Kettle is right to point out that even if Britain leaves the EU, there are many hurdles facing any renewed bid for Scottish Independence.  These include the fact that it is only the UK parliament that has the power to call a second referendum and whether or not it would be possible to retain the pound and not commit to the euro and the strict borrowing limits that go with eurozone membership.  However, it is interesting to consider what Brexit, and a successful subsequent campaign for Scottish Independence, might mean for climate change policy and action in Scotland.

Scotland has failed, so far, to meet its annual climate change targets.  Whilst the aspirational nature of the targets can still be applauded and progress reporting has been affected by changes in baseline data reporting, measures introduced by the Conservative government, since election in May 2015, including the ending of subsidies for onshore wind, are arguably exacerbating the challenge of achieving an annual target, which would hopefully provide an encouraging and motivating success story.

The Scottish Government has a target to deliver the equivalent of at least 100% of gross electricity consumption from renewables by 2020, with a significant expansion in onshore wind arguably an easy and early win in reducing greenhouse gas emissions in Scotland.  Representing the Scottish renewable energy industry, Scottish Renewables undertook an analysis in 2015 and concluded that Scotland will fall short of its 2020 target by 13 percent, unless new price guarantee contracts are awarded to onshore and offshore wind projects.  Speaking only last month, Nicola Sturgeon described the UK government’s cuts to renewable energy subsidies as “an absolute, total disgrace”.

In the short term, and subject to funding (a significant challenge even prior to the recent drop in oil revenues), Independence would enable the Scottish Government to override these decisions and to provide a greater level of support to renewable energy projects in Scotland.  However, looking longer term, beyond Scotland, and at the more challenging aspects of climate change mitigation, including the significant need for technological innovation, we are arguably ‘better together’ (Scotland in the UK and the UK in the EU).  To quote Julia Slingo, the Met Office’s Chief Scientist “The more we can be integrated in how we view what our science needs and our policy needs and our understanding of the risks that we face from climate change, the better our response will be”.

Key Information Sources

The real danger of Brexithttp://www.economist.com/news/leaders/21693584-leaving-eu-would-hurt-britainand-would-also-deal-terrible-blow-west-real-danger

http://www.carbonbrief.org/eu-referendum-opinion-tracker-energy-and-climate-change

The Climate Change Act 2008http://www.legislation.gov.uk/ukpga/2008/27/contents

Oral Statement by Amber Rudd, Secretary of State for Energy and Climate Change on ending subsidies for onshore wind, 22 June 2015https://www.gov.uk/government/speeches/statement-on-ending-subsidies-for-onshore-wind

2020 Routemap for Renewable Energy in Scotland – Update 2015, Scottish Government http://www.gov.scot/Resource/0048/00485407.pdf

The Scottish Greenhouse Gas Emissions Annual Target 2013, Scottish Government, 2015 http://www.gov.scot/Resource/0048/00487828.pdf

Update on Scotland’s 2020 Renewable Electricity Target, Scottish Renewables, November 2015https://www.scottishrenewables.com/media/filer_public/97/53/9753d54b-72ac-4867-a474-347c636b94b0/sr_briefing_-_update_on_scotlands_2020_renewables_targets.pdf

Promoting Technological Innovation to Address Climate Change, OECD,http://www.oecd.org/env/cc/49076220.pdf

 

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Two sides of the climate change coin: climate science and policy after COP21 https://blogs.sps.ed.ac.uk/global-environment-society-academy/2016/01/20/the-paris-agreement-a-new-start-for-international-climate-governance/ https://blogs.sps.ed.ac.uk/global-environment-society-academy/2016/01/20/the-paris-agreement-a-new-start-for-international-climate-governance/#comments Wed, 20 Jan 2016 10:49:16 +0000 http://blogs.sps.ed.ac.uk/global-environment-society-academy/?p=434 Continue reading ]]> Dr Annalisa Savaresi

Dr Annalisa Savaresi

Overview

Since the first establishment of the scientific evidence for climate change, little progress has been made in reducing greenhouse gas (GHG) emissions to mitigate the problem. The pathways along which governments pass in gathering scientific evidence and negotiating climate change mitigation measures is tortuous and riddled with potholes. Assistance in this complex and often fraught process comes from the Intergovernmental Panel on Climate Change (IPCC). For several years, this body has gathered evidence aimed to support the Parties to the United Nations Framework Convention on Climate Change (UNFCCC) in identifying the causes and projected impacts of climate change, as well as possible action to avert it. In this discussion we will explore how effective the interplay between these institutions has been, and what is the outlook for the future, in the aftermath of the historical adoption of the Paris Agreement at the 21st Conference of the Parties to the UNFCCC (COP 21) held in December 2015.

The IPCC process

Since it published its first Assessment Report in 1995, the IPCC has been held up as a shining example of how a collective of scientists can inform policy debates affecting the global environment. The 4th Assessment report even won the IPCC the Nobel Peace prize, jointly with Al Gore. The Assessment reports are commissioned by governments worldwide (hence the Intergovernmental Panel title) to cover climate change science, impacts, adaptation and vulnerability to climate change and climate mitigation. The 4th Report whilst winning many plaudits, including the Peace prize, was held up to detailed scrutiny and criticism by some. The famous ‘climate-gate’ and ‘glazier-gate’ episodes, and personal attacks on the integrity of contributing scientists, left a stain on the IPCC’s reputation even though the supposed errors or dubious practices were largely subsequently disproven.

The hype and pressure put on the 2009 climate summit in Copenhagen raised awareness of the climate change debate considerably. The release of stolen emails from the Climatic Research Unit of the University of East Anglia in the run up to Copenhagen created huge media attention and provided ammunition for “sceptics” who caused mass doubt in the public about climate change science. Moreover, the IPCC fourth assessment report came under fire, notably for their claim, now shown to be wrong, that the Himalayan glaciers could melt by 2035. This corresponded with a large increase in “sceptics” speaking out against climate change in the media and on the web. This clearly had an effect on public opinion about the legitimacy of climate science and even the integrity of climate scientists. A poll conducted by the BBC between November 2009 and February 2010 showed a 10% increase in people who did not believe in climate change and a 6% increase in people who believe that it is happening, but only due to natural causes.

So, now that the 5th Assessment report has just been released (see web address), nearly 20 years after the first report, perhaps it’s time to take stock of the IPCC process itself. To what extent has the IPCC really contributed to climate mitigation policy? Is it still fit for purpose, or are there alternative models that might better achieve the ultimate aim of addressing the climate change problem? The IPCC is likely to continue in some shape or form, but what this should be in supporting the drive to limit the climate change problem is not so clear.

Questions:

To what extent has the IPCC really contributed to addressing the problem of climate change?

Is the IPCC still fit for purpose, or are there alternative models that might better achieve its goals?

To what extent do governmental climate negotiations take account of scientific evidence?

Background reading:

http://ipcc-wg2.gov/AR5/images/uploads/WG2AR5_SPM_FINAL.pdf The IPCC Summary for Policy makers of Working Group 2 of the 5th Assessment Report.

http://news.bbc.co.uk/1/hi/sci/tech/8388485.stm a viewpoint from Prof Mike Hulme (UEA) and Dr. Jerome Ravetz (Innovation and Society (InSIS) at Oxford University)

http://www.nature.com/news/2010/100202/full/463596a.html IPCC flooded by criticism

IPCC: Cherish, tweak or Scrap? Nature 463, 730-732 11 February 2010 (attached)

IPCC Seeks ‘Broader Community Engagement’ to Correct Errors Science 12 February 2010 (attached)

http://www.sciencemag.org/cgi/content/full/327/5967/780-a Stop Listening to Scientists?

International climate change negotiations

Ever since 1992, Parties to the UNFCCC have attempted to agree on measures to deal with GHG emissions in a way to prevent dangerous human interference with the climate system. According to the IPCC, such a level requires keeping the increase in global average temperature below 2° C, as compared with pre-industrial times. The UNFCCC, however, has struggled to keep the world within the limits indicated by the IPCC. The main instrument adopted to stabilize GHG concentrations under the Convention, the 1997 Kyoto Protocol, imposed emission reduction targets only on developed countries. With growing emissions in developing countries, like China and India, however, scientists have warned that only reducing emissions in developed countries is not enough. Since 2007, therefore, UNFCCC Parties have been entangled in difficult negotiations on further measures to reduce global GHG emissions.

In December 2015, COP21 brought to a conclusion this long cycle of negotiations, by adopting a new climate treaty, the Paris Agreement. The agreement enshrines a reference to the 2°C goal identified by the IPCC, and even an aspirational reference to a 1,5°C goal. In order to achieve this outcome, the agreement requires all Parties, and not just developed ones, to make efforts to reduce their emissions and to submit information on the details. In doing so, the Paris Agreement consolidates a bottom-up pledge and review approach to climate change action. This approach entails that Parties unilaterally declare action they intend to undertake to reduce their emissions, to be subjected to an international review process, both at the individual and at the aggregate level. Implementation of the agreement will furthermore be assisted by an expert-based, facilitative compliance mechanism. And while it is already clear that Parties’ pledged action remain far from consistent with the 2° C goal, in theory at least there will be means to revise and increase the level of ambition.

Though not perfect, the Paris Agreement can be regarded as an expression of political will to tackle climate change in a way that brings together actors at all levels, in conformity with the all-encompassing nature of efforts required to address this epochal problem. In this regard, the Paris Agreement seemingly marks the emergence of a cooperative spirit that breaks away from the rancorous rhetoric that has long characterized international climate diplomacy. Whether the Paris Agreement will prove fit for purpose, and how it will be implemented, remains to be seen. In this regard, the adoption of the agreement is just the beginning of a new regulatory season in which States will flesh out the rules for its implementation. This new regulatory season will begin in 2016 and will reveal whether COP21 has indeed marked a new beginning. At least for the time being, however, the outlook for international climate governance is certainly the most hopeful it has been for quite some time.

 

Questions:

Is the Paris Agreement a success?

What are its main advantages and disadvantages?

What questions does it leave undressed?

Background reading:

Center for Climate and Energy Solutions, Outcomes of the UN Climate Change Conference in Paris (2015) http://www.c2es.org/docUploads/cop-21-paris-summary-12-2015-final.pdf

Daniel Bodansky Reflections on the Paris Conference (2015)

http://opiniojuris.org/2015/12/15/reflections-on-the-paris-conference/

The Economist, The Paris Agreement Marks an Unprecedented Political Recognition of the Risks of Climate Change (2015) http://www.economist.com/news/international/21683990-paris-agreement-climate-change-talks

UK Committee on Climate Change, The Good, the Bad and the Ugly of the Paris Agreement (2015) https://www.theccc.org.uk/2015/12/21/the-good-the-bad-and-the-ugly-of-the-paris-agreement/

David Victor, Why Paris Worked: A Different Approach to Climate Diplomacy (2015) http://teachingclimatelaw.org/compendium-of-commentary-on-the-paris-agreementcop21/

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Controversies surrounding mega Marine Protected Area https://blogs.sps.ed.ac.uk/global-environment-society-academy/2014/12/18/controversies-surrounding-mega-marine-protected-area/ https://blogs.sps.ed.ac.uk/global-environment-society-academy/2014/12/18/controversies-surrounding-mega-marine-protected-area/#respond Thu, 18 Dec 2014 15:10:02 +0000 http://blogs.sps.ed.ac.uk/global-environment-society-academy/?p=374 Continue reading ]]>

Dr Laura Jeffery

Dr Laura Jeffery

Until the end of the 20th century, most Marine Protected Areas (MPAs) were relatively small-scale conservation zones in coastal waters. The past decade has seen a proliferation in the designation of ever larger MPAs. Mega MPAs measuring over 100,000km² now already comprise the vast majority of the total area covered by MPAs worldwide. But why are the world’s powerful leaders – including Clinton, Bush, and Obama – competing to create ever larger MPAs?

The states party to the Convention on Biological Diversity (CBD) have agreed on a target to protect 10% of the world’s oceans by 2020. Mega MPAs clearly help governments as they seek to reach this (repeatedly deferred) target, but do they offer effective protection? Proponents argue that the smaller border-to-area ratio of mega MPAs means that the area of well-protected ocean in the middle is increased while the border zones exposed to external threats are reduced. But critics point to a range of problems associated with mega MPAs:

Challenges to surveillance and enforcement: Size and remoteness pose particular challenges for effective surveillance and enforcement of mega MPAs, where surveillance vessels cannot effectively patrol such large areas, and remote sensing technologies cannot track illegal fishing vessels that do not have satellite tags. Environmental NGOS (eNGOs) have reported widespread illegal fishing within numerous MPAs, including illegal shark fishing in the Galapagos Marine Reserve (Ecuador).

Diverting attention from real challenges: Most mega MPAs have been designated in remote areas with little human habitation, but this means they are not ideally located to address the real challenges facing the world’s oceans, such as overfishing, tourism, and pollution. A good example of this is the Papahānaumokuākea Marine National Monument designated around the uninhabited and relatively unexploited northwest Hawaiian Islands (USA).

Vulnerability to commercial interests: Seeking to meet ambitious targets without threatening economic growth, governments are likely to protect areas that already have low economic value. Australia’s Coral Sea Commonwealth Marine Reserve, for instance, covers deep water that sees little fishing activity at present, and leaves the most valuable commercial fishing areas unrestricted.

Undermining social justice: By banning resource use within vast areas, mega MPAs risk undermining social justice in terms of equitable access to economic livelihoods. The UK’s Chagos Marine Protected Area, for example, seems to have been designed to entrench UK sovereignty over an Indian Ocean territory also claimed by Mauritius, safeguard the security of the US military base on Diego Garcia, and harm the displaced islanders’ campaign for their right of return to the Chagos Archipelago.

Diverting resources from existing MPAs: Promoting mega MPAs may divert attention and resources from improving the management and effectiveness of existing or smaller MPAs. On the other hand, however, mega MPAs such as the Chagos MPA and South Georgia and Sandwich Islands (UK/Argentina) were designated alongside a network of smaller coastal MPAs around the UK mainland; Australia’s Coral Sea Commonwealth Marine Reserve was designated alongside smaller MPAs in areas of high resource use.

Discussion Questions

  • Can national solutions such as mega MPAs effectively address global challenges?
  • How can remote mega MPAs be effectively monitored and enforced?
  • Does vulnerability to commercial interests undermine mega MPAs?
  • Do remote mega MPAs divert attention from the real issues?
  • Do mega MPAs undermine social justice?
  • Do mega MPAs divert resources from smaller MPAs and MPA networks?
  • Can MPA networks and Marine Spatial Planning (MSP) offer effective solutions?

Indicative Readings:

Dr Laura Jeffery is Lecturer in Social Anthropology in the School of Social and Political Science at the University of Edinburgh, and has research interests in island ecologies, human–environment relations, and the politics of Marine Protected Areas (MPAs). She has recently published on WikiLeaks evidence in judicial review of the Chagos MPA, debates about environmental guardianship of the Chagos Archipelago, and ‘coconut chaos’ and the politics of restoration ecology.

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Towards Commercial Seabed Mining – Sustainable or Sacrilege? https://blogs.sps.ed.ac.uk/global-environment-society-academy/2014/12/18/towards-commercial-seabed-mining-sustainable-or-sacrilege/ https://blogs.sps.ed.ac.uk/global-environment-society-academy/2014/12/18/towards-commercial-seabed-mining-sustainable-or-sacrilege/#respond Thu, 18 Dec 2014 15:05:31 +0000 http://blogs.sps.ed.ac.uk/global-environment-society-academy/?p=371 Continue reading ]]> Dr James Harrison

Dr James HarrisonThe presence of minerals on the deep seabed was first discovered by the HMS Challenger expedition in 1873. Polymetallic nodules and other seabed resources (polymetallic sulphides and crusts) offer abundant supplies of valuable minerals, including manganese, cobalt, copper, gold, silver and several so-called rare earth elements.

Despite our knowledge of this (literal) goldmine at the bottom of the oceans, it was not possible to exploit these riches for almost 100 years due to their inaccessibility. Yet, the profits to be gained from mineral mining on the ocean floor have meant that millions of dollars have been invested in developing the technology to conduct deep seabed mining on a commercial scale. In the last few years, mining companies have announced technological breakthroughs and it is widely anticipated that deep seabed mining will become a reality within the next decade.

This development has a number of potential benefits. Firstly, it addresses concerns about the growing scarcity of many valuable minerals required for manufacturing items that are in increasing demand in modern society, particularly communications and computing equipment, as well as renewable energy technologies (components of wind turbines, solar panels and energy-saving light bulbs). There are also potential broader benefits of deep seabed mining. The legal regime for the regulation of deep seabed mining beyond national jurisdiction, contained in the 1982 United Nations Convention for the Law of the Sea, declares that the mineral resources of the deep seabed are the “common heritage of mankind”. Thus, the profits to be obtained from seabed mining are to be equitably distributed amongst the international community, taking into particular consideration the interests and needs of developing countries.

Yet, not everyone is thrilled at the prospect of deep seabed mining. Critics point out that we know very little about the marine environment on the ocean floor and therefore we should proceed with caution before authorizing commercial activities. It has been suggested that deep seabed mining poses unacceptable risks, including direct damage to vulnerable deep seabed ecosystems, as well as noise, light and other forms of pollution from mining activities. As a result, groups such as Greenpeace and Friends of the Earth have called for a moratorium on deep seabed mining. They argue that a precautionary approach[1] is required and this activity should not be permitted to commence until independently verified research has been conducted in order to demonstrate that ecosystems will not suffer long-term negative impacts.

Even the International Seabed Authority, which is responsible for overseeing the deep seabed mining regime beyond national jurisdiction, has admitted that seabed mining will cause “inevitable environmental damage.” Yet, a precautionary approach to deep seabed mining does not necessarily entail a full-scale moratorium until there is evidence that no harm will be caused. The international regime for deep seabed mining beyond national jurisdiction already requires mining companies to conduct environmental impact assessment and continuous monitoring of mining operations. Moreover, the International Seabed Authority is empowered to oversee the activities of commercial mining companies and to step in if serious damage is caused to the marine environment. The International Seabed Authority has also provisionally established nine protected areas in the central Pacific where no mining will be allowed to take place and it can require mining companies to establish additional “preservation references zones” within their mining areas. Supporters of the commercial seabed mining argue that these measures are sufficient to prevent the type of long-term negative impacts that worry environmental campaigners. Furthermore, such an approach is arguably in accordance with the concept of sustainable development, which requires a balance between economic development and environmental protection, ensuring that resources can be exploited for the benefit of both present and future generations.[2]

Discussion Questions

  • Is sustainable development a useful concept for managing seabed resources?
  • In what circumstances should environmental protection take priority over economic development?
  • What is meant by the precautionary approach in the context of seabed mining? Who should bear the burden of demonstrating that the environmental risks of an activity are acceptable or not?
  • Who should be responsible for monitoring the effects of seabed mining on the environment?
  • How much of the seabed should be designated as a protected area and who should decide?

 

Indicative Readings:

 

  • International Seabed Authority, Environmental Management Needs for Exploration and Exploitation of Deep Sea Minerals, ISA Technical Study No. 10 (2012) 29-33, available at:

http://www.isa.org.jm/files/documents/EN/Pubs/TS10/TS10-Final.pdf

 

  • Greenpeace International, Deep Seabed Mining: An Urgent Wake-up Call to Protect our Oceans (July 2013) 3-16, available at:

http://www.greenpeace.org/international/Global/international/publications/oceans/2013/Deep-Seabed-Mining.pdf

 

Dr James Harrison is Lecturer in International Law in the School of Law at the University of Edinburgh and he has research interests in International Law of the Sea and International Environmental Law. He has written widely on these subjects, including Making the Law of the Sea: A Case Study in the Development of International Law (Cambridge University Pr

[1] Principle 15 of the Rio Declaration on Environment and Development on the precautionary approach says that “where there are threats of serious or irreversible damage, lack of full scientific certainty shall not be used as a reason for postponing cost-effective measures to prevent environmental degradation.”

[2] The Brundtland Commission defined sustainable development as “Development that meets the needs of the present without compromising the ability of future generations to meet their own needs”; The World Commission on Environment and Development, Our Common Future (Oxford University Press, 1987) 43.

 

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A Perspective on Responsible Investment in Times of Global Change https://blogs.sps.ed.ac.uk/global-environment-society-academy/2014/01/23/divestment/ https://blogs.sps.ed.ac.uk/global-environment-society-academy/2014/01/23/divestment/#respond Thu, 23 Jan 2014 15:19:59 +0000 http://blogs.sps.ed.ac.uk/global-environment-society-academy/?p=224 Continue reading ]]> In this article, Stephen Porter examines some of the arguments arStephen Porteround the issue of responsible investment – and raises provocative and pertinent questions about the risks of divestment in relation to personal pensions and charity endowment funds.  He challenges us to carefully consider if divestment from our major sources of fuel really is ‘responsible’ if we leave future generations without the ability to meet the energy gap for at least half a century! In this sense does divestment really align with the principles of Sustainable Development?

As far as winters go, Edinburgh’s this year has so far been rather mild.  The mercury has fallen below zero in the city only a handful of times, and even then just at night.  The gas company should be getting less of my hard-earned dosh than may have otherwise been the case (price-rises excepted, of course).  Global warming? Bring it on and hand me the sun-cream! Turn this pasty Northerner into an olive-skinned Mediterranean type.

However, if I were with our friends across the pond, perhaps I might see things a bit differently – at least at the moment.  As I sit here writing at the end of January 2014, yet another cold snap and snowstorm are hitting the East Coast of the US.  And this is after even Hell froze over (well, Hell, Michigan anyway) in the midst of the Artic Vortex that gripped North America over Christmas and New Years.  Global warming? What global warming?  Thank heavens for cheap shale gas to keep the frostbite away by turning the heating up without busting the bank.  Drill, baby, drill!  Or has this year merely been a typical winter that seems cold relative to recent, mild ones? Our memories are sometimes rather short…..

Those in many parts of Africa and Asia may have yet a different perspective on this global warming business.  Failing monsoons, droughts, floods, rising sea levels.  While this may be “weather”, the longer-term climate patterns are changing, becoming less reliable and more extreme.  People living (or trying to live…) in these regions are likely to feel the effects of changing weather patterns much more profoundly that I am, sitting here on a hill in Edinburgh (which may become beachfront if Antarctic ice-sheets melt – the irony, living on a tropical island in a world destroyed).  These countries and regions are less able to adapt to and/or combat these changes – the simply don’t have the same level of resources as, for example, the EU does.  To paraphrase: It’s the climate, stupid!

Whilst I’m certainly no historian, I ask you: where we might be today if we had not discovered the uses of wood, charcoal and coal to create heat, and through heat create work, and through work initiate the Industrial Revolution?   And we still use a heap of coal today for generating energy (in addition to other fossil fuels).  I might also argue that the Industrial Revolution continues – it’s merely moved South and East.  If it weren’t for the abundance such energy-rich compounds, what would our life be like today? Would it be better or worse?  I don’t have an answer to such a philosophical question.  Hmm, where can I get my hands on Dr. Who’s Tardis to pose that to Aristotle?

What does seem to be evident, however, is that change won’t happen overnight – likely not this decade or even the next.  According to an article in Scientific American the major global energy transitions (from wood to coal to oil) have each taken between 50 to 60 years. Developed economies are “locked-in” to certain technologies and infrastructure that are tried and tested. These economies are also (still) the largest portion of the global economy.  In a mad-dash catch-up exercise to narrow the wealth gap between the Developed and Emerging worlds, Western dominance over the global economy is beginning to ebb away.  In terms of GDP, China is now the world’s second-largest economy, Brazil is 7th and India is 10th; but their growth has largely been fuelled by fossil fuels, coal in particular.  Unless an unexpected technological advancement occurs that changes the economics of non-fossil fuel energy generation (not to mention storage), worms may have feasted upon my remains (or at least be eyeing up this old bag-of-bones in anticipation) before renewable energy reaches a meaningful share.  So, what do we do about it?

The “Responsible Investing” movement – such as the United Nations Principles for Responsible Investing, to which the University of Edinburgh is only the second higher education institute to be a signatory – has gathered pace over recent years.  But who wouldn’t invest responsibly? Or put another way, how should we define responsible? And then how do we implement that definition?

For some, such as Bill McKibben and http://350.org/, “responsible” is about divesting from fossil fuels, on environmental as well as financial grounds.  McKibben’s article in Rolling Stone of a couple of years ago, and that of “Unburnable Carbon” from the Carbon Tracker Initiative, remain thought-provoking reading.

But is divestment today, or even within the next five years, “responsible” if the transition to world where renewable energy finally provides the majority of energy generation is indeed 50-60 years away?  Is the opportunity cost of not having a voice that company management may listen to or not participating in the earnings fossil fuel companies will generate for the foreseeable future an acceptable risk for our pension funds (state, personal and/or corporate), universities’ endowment funds or charity and foundation funds?  The unintended as well as intended consequences of actions must be weighed up before action is taken – if such consequences are desirable, go for it!

Finally, I pose a question wrapped in hope.  With the immense annual revenues they generate from you and I consuming their product (in one form or another), could fossil-fuel companies actually become an engine of change?  Is a culture shift from “Big Oil” that knows only about drilling to “Big Energy” that knows how to develop viable, non-finite alternatives possible?

A pipedream perhaps – but without dreams, and the fortitude to try to turn dreams into reality, we will live in a much poorer place.

 

Stephen Porter is a tree-hugger come investor.  He worked in the institutional investment management industry for nearly 20 at some of the leading global firms, engaging with the senior leaders of asset owners such as sovereign wealth funds, public pension funds and charitable foundations to create custom solutions to meet their specific requirements.  To atone for such “sins”, in 2012 Stephen embarked upon a rather different path – enrolling in Edinburgh’s MSc in Carbon Management.  Stephen has also begun part-time PhD studies at the University of Edinburgh’s School of GeoScience, exploring the links between climate change mitigation and losses across the food supply chain.  Helping to fund his further student excesses, Stephen joined with two Edinburgh PGT peers to found a (currently) small sustainability consultancy. Oh, and he’s also a husband and a father to three boys under eight – so please excuse the grey hair!

References

http://www.scientificamerican.com/article/polar-vortex-chill-fails-to-make-history/

http://www.nature.com/scientificamerican/journal/v310/n1/full/scientificamerican0114-52.html

http://www.carbontracker.org/wp-content/uploads/downloads/2011/07/Unburnable-Carbon-Full-rev2.pdf)

http://www.rollingstone.com/politics/news/global-warmings-terrifying-new-math-20120719

http://www.docs.sasg.ed.ac.uk/GaSP/Governance/SociallyResponsibleInvestment.pdf

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Perspectives on Global Environmental Change: What does it mean for the University of Edinburgh to be a Responsible Investor? https://blogs.sps.ed.ac.uk/global-environment-society-academy/2014/01/17/responsible-investment/ https://blogs.sps.ed.ac.uk/global-environment-society-academy/2014/01/17/responsible-investment/#comments Fri, 17 Jan 2014 11:23:31 +0000 http://blogs.sps.ed.ac.uk/global-environment-society-academy/?p=221 Continue reading ]]> “One is not born into the world to do everything but to do something.”
Henry David Thoreau

 

The University of Edinburgh has a long and proud history of taking action to address environmental challenges and social concerns, and our latest opportunity is responsible investing.

This is not something new- students and student groups such as People and Planet have been campaigning for many years on these issues, and the University has had a socially responsible investment policy in place since 2003. None the less, it is timely to consider what more we can do.

The University’s strategic plan contains a clear commitment to ‘make a significant, sustainable and socially responsible commitment to Scotland, the UK and the world’. In response, we already have a social responsibility and sustainability strategy and a climate action plan. We want to manage our own impacts, teach our students about the big global challenges of the twenty-first century, and apply our knowledge and research to making a real contribution to solving these issues. Those strategies are now being complemented by the development of a socially responsible investment approach.

I joined this University six months ago both because it convinced me that it wanted to be amongst the world’s best when thinking about social responsibility and sustainability, and because I saw a great opportunity for us to improve and to make changes for the better.

One of my first tasks has therefore been to help the university figure out exactly what being a responsible investor means, having been the first University in Europe to have signed the United Nations Principles for Responsible Investment in early 2013.

What Should We Do?

The University has significant endowment funds, that is, monies donated by alumni and others for specific reasons to advance learning, education or other socially valuable activities.  The funds are a key component of the University’s ability to meet our objectives and ensure generations to come have the opportunity to learn, grow and research. So, our focus has been working out how we can continue to manage and protect these funds, whilst being a responsible investor.

My dictionary says the following:

Responsible                       

re·spon·si·ble 

adj.

Liable to be required to give account, as of one’s actions or of the discharge of a duty or trust…

Able to make moral or rational decisions on one’s own and therefore answerable for one’s behaviour…

Able to be trusted or depended upon; reliable…

Based on or characterized by good judgment or sound thinking..

Required to render account; answerable..

Investment

noun: investment; plural noun: investments

1. the action or process of investing money for profit.

I think these two definitions capture the central issues and tensions rather nicely. The University has responsibilities, to the people who have donated the endowment monies, to current and future staff and students, but also has a responsibility to the current generation and to our environmental, ethical and social obligations and expectations. And investment, of its very nature, tries to find ways to make a profit on money given to us, in order to allow a body such as ours to meet its other objectives.

But what are those expectations and objectives? In classic university parlance, that question is ‘contested’ i.e. at the moment it’s not completely clear what we mean and how we should proceed. There are quite a few views, inside and outside the university, on what to do and how to do it. For example, see this from People and Planet or this post from Edinburgh University academic Tim Hayward or this counter-view from Harvard.

With that in mind, we decided to undertake a wide ranging consultation with the staff and student community on how to take forward responsible investment in a way that commands widespread support, protects the endowment funds we have, but allows us to make a significant contribution to environmental and social issues.

One final point on context. To me and you, £280+ million is a lot of money, but of course as a fraction of the total amount of money invested in the world, or even in the UK, it is very small. That said, the sum is large enough to make a difference if targeted in a smart way, and our reputation as a leading university does mean we can expect our actions to have knock-on impacts not just for investment and companies directly, but across the value chain of impact from investment, through companies’ actions, to the decisions company board make on corporate responsibility issues and the impact of the signal we send about our beliefs and our values.

The Consultation

You can find a copy of the consultation document here. We are running our consultation to 7th March 2014 and will afterwards put forward a revised policy for investments, plus a follow up action plan.

Our consultation sets out 12 questions for consideration, in the following areas:

Principles to inform investment

The UNPRI commitment is all about trying to show both what investment decisions an organisation has made, and just as importantly, why and how those decisions are made. The University feels that its commitment to responsible investment would be strengthened if stakeholders were clearer about the principles underpinning the investment decisions that it makes.

Strategic approach to investment

It is important to recognise that in seeking to be a responsible investor, the University has a range of strategic options that it can consider, each of which would appear to have a range of advantages and disadvantages.

1. Investment in companies and funds which contribute to a wealthier and fairer, smarter and healthier, greener and safer and stronger global society

2. Direct investment in university activities and objectives e.g. renewable energy generation- on –site or off-site, climate emissions reduction, energy efficiency etc.

3. Direct investment in a range of ‘start-up’ innovative companies or social investments linked to identified social responsibility themes, perhaps using concepts such as social impact bonds

4. Avoid investment in sectors or companies failing to reach recognised standards

Avoidance of Investment ‘In-Principle’

Circumstances may arise where it is felt that investment activities are simply incompatible with the ethos and values of the university. For example, the University has taken the decision to divest from tobacco. The consultation asks by what process or methodology do you consider that the University should consider these questions?

Organisational and policy changes

The consultation also considers the range of practical matters that the University will need to address in order to fully discharge its responsibilities under the UNPRI – in published principles, guidance to investment managers, transparency and reporting.

Closing

These are difficult issues and we want to make sure we as gain as many views as we can prior to coming to a decision. Just a flavour of what we need to consider:

–        What is the right balance between protecting investment returns and avoiding investing in certain areas? What should those areas be and why? Do these decisions have a disproportionate impact on our ability to meet our investment objectives (and hence a knock on impact on the viability of the university)?

–        Who decides and how do they decide which issues our investment managers should consider?

–        How should the balance be struck between engaging with companies to ensure they meet our standards, and avoiding investment if they continue to fail? How long do companies get before we want to take action?

–        Even though we have £284m of investment funds, our influence in the grand scheme of things is limited, so how should we choose wisely to maximise our impact?

–        If we should avoid investing in certain activities because they are not in line with the values and aims of the University, then what exactly are those values and aims? How do we decide and who gets to say?

 

I look forward to hearing your views.

 

Dave Gorman is the University’s first Director for Social Responsibility and Sustainability. You can find out more about the Department for Social Responsibility and Sustainability here. You can give us your views via the online form here

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