Environmental Issues and Strategies for the Oil and Gas Industry Programa de las Naciones Unidas para el Medio Ambiente Programme des Nations Unies pour.

Environmental Issues and Environmental Issues and Strategies for the Oil and Strategies for the Oil and Gas IndustryGas Industry

Programa de las Naciones Unidaspara el Medio Ambiente

Programme des Nations Unies pour l’EnvironnementUnited Nations Environment ProgrammePrograma das Naçoes Unidas o Meio Ambiente

Oficina Regional para América Latina y el CaribeOficina Regional para América Latina y el CaribeRegional Office for Latin America and the CaribbeanRegional Office for Latin America and the Caribbean

Brazil, May 2002Brazil, May 2002

Dr. Diego MaseraRegional Co-ordinator of the Industry Programme

Major environmentalchallenges

Major environmentalchallenges

• climate change and air pollution• freshwater and water management• depletion of biological resources• land degradation• environmental disasters and vulnerability• awareness raising, education• oceans and regional seas• chemicals management• waste management

Environmental degradation:Environmental degradation:

- In México, 600,000 ha per year

- In Central America, 200,000 per year

• Loss of forests 4.5 million ha of forests lost annually

• Degraded soil 243 million ha in South America, and 65 million ha in Mesoamerica

• Biodiversity Thousands of endangered species and many extinct

Root causes ofenvironmental degradation

Root causes ofenvironmental degradation

- In México, is $160 billion dollars- In Central America is $17 billion dollars

•Economic growth of 3.2% annually• Poverty Growth: 224 million of persons in 1999 (12%)• Increased inequity: 20% > income 20% < income• Increased unemployment• Lower salary value• 500,000 professionals left the region•Economic Model based on the intensive use of natural resources• Increased External Debt

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ResponsesResponses

• integration of environmental considerations in mainstream decision making

• life cycle economy• precautionary approach• environmental compliance, enforcement• liability• knowledge building, sharing of

information• awareness raising, education• voluntary initiatives/partnership with

accountability

Role of the oil industryRole of the oil industry

Responsibility, accountability, transparency

• technology innovation– renewable energy– processes (from the well to

the wheel)• management systems

– supply chain management• transfer of “best practices”• develop and maintain an

international standard

Role of the oil industry (cont’d)Role of the oil industry (cont’d)

• voluntary initiatives• assist in local development• full support to conventions

– UNFCCC– biodiversity– transboundary air pollution

• be part of the UN Secretary-General’s Global Compact

Environment issues in offshore sector

Environment issues in offshore sector

• chemicals release and pollution• greenhouse gas releases • waste disposal, incl. drilling

muds• decommissioning of platforms• transport accidents, and risk of

blow-outs• on-shore impacts (eg. waste

disposal, ..)

Some causal factorsSome causal factors

• limited company environmental programmes• inadequate or outdated regulatory

frameworks• lack of life-cycle approach• environmental approach is not ‘prevention’

based• inefficient (polluting) production technologies• unsustainable consumption of products and

resources• lack of environmental awareness of

professionals• financial mechanisms ignore environment

Recent management responsesRecent management responses

• standardization of EMS/EHS systems• greater corporate responsibility and

ethics• increase in industry sector codes

and initiatives• social partnerships • environment and social reporting• supply chain management • technology development• green product development

But is it enough?

Recent institutional responsesRecent institutional responses

• systematic environmental assessment regimes

• updated regulatory frameworks• use of economic instruments• some acceptance of voluntary mechanisms• establishment of international conventions• educational reform in engineeringBut has progress been sufficiently widespread?

Oil & Gas - UNEP’s ObjectiveOil & Gas - UNEP’s Objective

• to work with strategic sector partners to improve availability of information about environmental impacts and management options

UNEP approachUNEP approach

• synthesize practical information to assist environmental decision-making by all stakeholders

• develop and maintain information systems

• encourage training and raise awareness of key issues and response options

Some UN responsesSome UN responses

• CSD debate (industry, production and consumption)

• Regional Seas programmes• international conventions - FCCC, ...• Global compact and GRI• corporate environmental benchmarking • stakeholder dialogue - annual UNEP meeting• management guidelines• financial and insurance institutions initiatives• sustainable consumption patterns• information systems - OEF

UNEP’s energy programmeUNEP’s energy programme

• focus on strategic aspects• environmental focus• aims to support FCCC, and Kyoto

implementation mechanisms• supports national dialogue on

implementation options• renewable energy policies via Riso• energy management in CP

Gobal compactGobal compact

• Initiative of the Un Secretary General

• Purpose is to bring private sector participation in UN debate

• 3 compact conditions:– human rights– labour rights– Agenda 21

Offshore Environment ForumOffshore Environment Forum

• OEF is an Internet site to improve global access to environmental information

• established as partnership project after Rijswijk conference in 1997 (CSD initiative)

• operated by UNEP and UNCTAD for E&PForum, Govts of Norway and the Netherlandds, WWF

• interactive, user-oriented

www.oilandgasforum.net

What is the OEF ?What is the OEF ?

• The OEF site is an internet roadmap to guide web users with different backgrounds and needs to existing information sources on offshore activities.

• Interaction: The OEF Site is structured as an interactive forum.

• Information: Users can obtain information and at the same time, they can provide information, by publishing their own documents.

• Discussion: OEF Forum aims to encourage and keep up a meaningful discussion among the users

Offshore Environment ForumOffshore Environment Forum

Management of the OEFManagement of the OEF

• multi-stakeholder management - industry, govt, public groups, UN

• financially supported by partners• operated by UNEP in Paris• neutral information system - not

campaigning• option of associate partners for sub-

sections of site

OEF as a news serviceOEF as a news service

• news on offshore companies, environment

• events calendar• new publications• changes in legislation

OEF as a programme promotion tool

OEF as a programme promotion tool

• awareness of your programme• and your publications• and your conferences• linking with your constituents

OEF as a project support toolOEF as a project support tool

• surveys, eg reporting• expert meetings• debate on issues, eg decommissioning• communications link

Examples of OEF partner groupsExamples of OEF partner groups

UNEP & the petroleum sectorReporting

UNEP & the petroleum sectorReporting

• The Social Reporting publication

• The Oil Sector Report• Accountability,

companies requested to report

• Global Reporting Initiative

UNEP & the petroleum sectorSharing information

UNEP & the petroleum sectorSharing information

• Other reports

Some conclusionsSome conclusions

• Many useful initiatives, but insufficient when seen in context of the problem

• witnessing increasing action by companies, but insufficient concerted co-operative action in sectors

• action needs to focus on causal factors as well as internal change

• needs a more preventive, life-cycle approach

• needs more focus on professional education• stronger partnership with UN and

governments

Oficina Regional para América Latina y el Caribe

Blvd. de los Virreyes 155, Lomas de VirreyesCP 11000 México, D.F., MEXICO

http://www.rolac.unep.mxhttp://www.rolac.unep.mxhttp://www.uneptie.orghttp://www.uneptie.org http://http://www.oilandgasforum.netwww.oilandgasforum.net