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41. Responsible Change: How Governments Can Address Environmental, Social and Governance Challenges When Petroleum Assets Change Hands

Author:
Nicola Woodroffe
Publication Date:
02-2024
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
As the world moves toward a future beyond oil and gas, petroleum assets will change hands, with different kinds of companies replacing others. Since 2014, around USD 88 billion in assets have moved from publicly listed to private companies. The roles of sub-Saharan African and Latin American companies in their home countries have expanded. Globally, the role of national oil companies (NOCs) is growing. NOCs have acquired around $24 billion in assets from non-NOCs since 2014. The growing role of private and local companies and NOCs potentially gives producer countries greater control over their petroleum sectors, including the pace of an eventual phaseout. However, these companies often have less capacity and fewer transparency, environmental, social and governance commitments than publicly listed international companies. This increases the risk that these companies’ operations will negatively impact the environment and communities, and that they will be unable to pay for decommissioning when production ends. Many assets that sub-Saharan African and Latin American NOCs have acquired appear vulnerable to energy transition risks. Governments should exercise approval rights over asset transfers to ensure buyers have requisite capacity to operate with high standards. They should ensure transparency to allow host communities and the public to better understand transfer impacts and how the government and/or companies will manage them, and strengthen regulations to address key issues arising from transfers including emissions management and reporting, and decommissioning funding. Governments should require NOCs to make adequate disclosures about their acquisitions to ensure NOCs manage risks to the public purse.
Topic:
Environment, Oil, Governance, and Energy Transition
Political Geography:
Global Focus

42. Responsible Exit Principles for Oil and Gas Companies

Author:
Nicola Woodroffe and Erica Westenberg
Publication Date:
09-2024
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
Asset transfers in the oil and gas industry are not new. Yet, as the energy transition accelerates, there is a growing risk that oil and gas companies sell assets in response to pressures to decarbonize. However, transferring assets to operators with lower standards can lead to higher emissions and increased risks. This briefing offers a framework to guide these transactions and ensure that environmental and operational integrity is upheld. Designed for use by a range of stakeholders, these principles set out best practices to help companies manage financial, legal, environmental and reputational risks during asset transfers. They were developed with input from representatives of the oil and gas industry; investors, the financial, legal and accounting professions; the insurance industry; standard-setting bodies; academia; and civil society. All stakeholders can adopt and refine these standards to support a responsible, low-emissions future and harmonize regulatory practices across the industry.
Topic:
Corruption, Environment, Oil, Gas, Accountability, Fossil Fuels, and Energy Transition
Political Geography:
Global Focus

43. Behind the Schemes: Anticorruption Gaps in Mining Sector Certifications

Author:
Susannah Fitzgerald, Robert Pitman, Matthieu Salomon, and Phesheya Nxumalo
Publication Date:
11-2024
Content Type:
Special Report
Institution:
Natural Resource Governance Institute
Abstract:
Decisionmakers are increasingly looking to certification schemes to provide information on the sustainability of mining operations, yet these schemes have significant room for improvement regarding how they address corruption in their standards. The report assesses the content of the performance standards used by the Aluminium Stewardship Initiative (ASI), the International Council on Mining and Metals (ICMM), the Initiative for Responsible Mining Assurance (IRMA), The Copper Mark, and Towards Sustainable Mining (TSM). Schemes address some topics, such as revenue and payments and anticorruption procedures, relatively well; this may reflect the extent to which legislation and regulations address these topics. Schemes’ standards less frequently covered other issues, such as beneficial ownership and allegations of corruption. Many schemes, and the mining companies that use them, are missing an opportunity to assess the implementation of corporate-level anticorruption policies in mine-site assessments. The quality of certification schemes’ governance and assurance processes is essential to their effectiveness, yet many fall short of best practice. This undermines their credibility. Key governance challenges include the unbalanced representation of different interests within schemes and the risk of conflicts of interest in the auditing process. Decisionmakers risk becoming overreliant on certification schemes as indicators of responsible business conduct, which may be facilitated in part by industry influence over policymaking processes. Certification schemes are not a replacement for ongoing, robust due diligence into the environmental, social, and governance impacts of mining operations, including corruption, and the design and enforcement of robust regulatory frameworks. In a shifting standards landscape where there are efforts to both consolidate and review existing certification schemes, and a moment where the risk of corruption is heightened by growing demand for transition minerals, governments, mining companies, and certification schemes themselves must do more to address the topic of corruption. To do so effectively, they should focus their attention on solutions that will have the most impact in addressing this issue.
Topic:
Corruption, Environment, Governance, Accountability, Mining, Transparency, and Minerals
Political Geography:
Global Focus

44. From Conflict to Collaboration: Co-funding Environmental Peacebuilding in South-central Somalia

Author:
Kheira Tarif
Publication Date:
09-2024
Content Type:
Policy Brief
Institution:
Stockholm International Peace Research Institute (SIPRI)
Abstract:
Somalia is experiencing significant impacts of climate change. Its climate-related vulnerabilities are exacerbated by the enduring effects of more than three decades of violent conflict and fragmented governance. As the effects of climate change become more pronounced, their interaction with social, economic and political realities threatens to create challenges that are complex and difficult to address. There is a need for policies and programmes that tackle climate change and conflict in tandem, but gaps persist in knowledge and evidence to inform actions under such policies and programmes. This SIPRI Policy Brief explores how the International Organization for Migration (IOM) in Somalia uses a co-funding mechanism for facilitating collaboration between groups in conflict on addressing shared local priorities. In south-central Somalia, IOM has applied the co-funding mechanism to projects that aim to address local climate-related vulnerabilities, build relationships between communities in conflict and strengthen the role of district councils. This policy brief finds that elements of this approach to project design can support environmental peacebuilding in contexts exposed to climate change and affected by conflict and offers recommendations for organizations and other donors with relevant mandates.
Topic:
Environment, Conflict, Peacebuilding, and International Organization for Migration (IOM)
Political Geography:
Africa and Somalia

45. The Global Impact of China’s Water and Related Environmental Problems

Author:
Thomas J. Duesterberg
Publication Date:
03-2024
Content Type:
Policy Brief
Institution:
Hudson Institute
Abstract:
The quantity, location, and quality of water resources in China have long been a distinguishing and even defining characteristic of its history. Records at least as far back as the Ch’in era in the third century BC note the presence of massive waterworks such as irrigation and transportation canals. Terraced rice fields in hilly areas in central and southern China remain iconic images of Chinese civilization. During a contentious and important debate in the mid-twentieth century, geographers and political scientists asked whether the erection of a “hydraulic society” was the explanation for what political scientist Karl Wittfogel identified as “oriental despotism.”1 The German-trained academic argued that the existential requirement to contain endemic flooding and move water from the massive rivers of central and southern China to agricultural areas necessitated an authoritarian system for deploying labor on the scale required for hydraulic engineering projects spanning the continent. Chairman Mao Zedong drily noted at the beginning of his reign that “there is a lot of water in the south and not much water in the north . . . borrowing some water would be good.”2 Mao was soon to unleash the massive workforce of China to renew and expand efforts over the centuries to get water to farmland, control flooding, and reengineer the landscape of modern China. Even without exaggerating the centrality of water issues for historical China, in the modern era water resources are clearly still vital to the country’s economic and ecological health. And hydraulic engineering projects have become increasingly important, both to China’s Asian neighbors and to the global environment. An important new survey of the “ecological history” of modern China concludes that “in growing from impoverished giant to wealthy superpower in seventy years, China has sacrificed whatever resilience its ecosystem once possessed. It has polluted and poisoned its air, water, and soil . . . it has turned forests into plantations and seen deserts expand . . . and has seen lakes come to resemble green paint.”3 Unfortunately, China’s ecological problems have increasingly had negative impacts outside its borders. China’s unprecedented geoengineering to move water from the south to the north is now imperiling both the water resources available downstream from Tibet and the Hindu-Kush mountains, and the economy and ways of living of literally billions of people. China needs ever more land to grow higher quality food and produce higher yields, which frees up land for housing its population. These efforts have led to deforestation not only in China but also in South America and South Asia. And the consistent choice of Beijing’s leadership to drive economic growth at the expense of environmental health has led to dangerous levels of water pollution and poor soil health in China. Environmental degradation has become a growing political issue in China, and its export of this problem has incited considerable international concern. This study explores these issues with a focus on water resources, and it outlines the regional and global impacts of Chinese policy. The study concludes with a discussion of China’s ability and ambition to address these problems as well as how affected countries can help move Chinese leadership toward a more constructive and cooperative effort to develop a solution.
Topic:
Economics, Environment, and Water
Political Geography:
China and Asia

46. Green Soft Power? Checking in on China as a Responsible Stakeholder

Author:
Agnieszka Nitza-Makowska, Kerry Anne Longhurst, and Katarzyna Skiert-Andrzejuk
Publication Date:
01-2024
Content Type:
Journal Article
Journal:
Polish Political Science Yearbook
Institution:
Polish Political Science Association (PPSA)
Abstract:
By assuming a proactive role in international environmental regimes and extending the ‘green’ dimensions of its Belt and Road Initiative (BRI), China has been seeking to promote itself as a leader and responsible stakeholder in global environmental governance. This article examines this development concerning the notion of China’s ‘soft power’ and, more specifically, the notion of ‘green soft power’ – which aims to bridge the traditional concept of soft power with a state’s behavior on environmental and climate issues. China presents an interesting case since it has accrued a considerable amount of green soft power through its multilateral environmental diplomacy practiced at the Conferences of the Parties (COPs), the high-profile annual United Nations Climate Change Conferences, but its patchy deployment of environmental standards in the bilateral engagements under the BRI highlights the contradictions in referring to China as a green soft power. With these ideas in mind, this article holds that in the search to understand the evolving nature of China’s responsible stakeholder role, attention should be given to exploring the notion of green soft power.
Topic:
Foreign Policy, Diplomacy, Environment, Soft Power, and Belt and Road Initiative (BRI)
Political Geography:
China and Asia

47. Nationalism, Capitalism and Hostility Towards Environmental Policies: A Theoretical Study

Author:
Piotr Walwicz
Publication Date:
01-2024
Content Type:
Journal Article
Journal:
Polish Political Science Yearbook
Institution:
Polish Political Science Association (PPSA)
Abstract:
The article explores a possible connection between nationalism, capitalism, and nationalist movements’ common hostility towards environmental policies. It draws from materialist assertions about the capitalogenic nature of ecological degradation and modernist theories of nationalism, which explain it as a product or by-product of capitalist modernization. By employing theories of nationalism’s instrumentality in preserving the existing social hierarchies, the article proposes that this approach might be extrapolated onto socioecological hierarchies, which are contested or have their fundamental rules challenged by many environmental policies. Nationalism may then be seen as an instrument of capital – personified by the privileged elites – taking advantage of an ideology that appeals to those ‘left behind’ by modernization and globalization to thwart or delay changes to the socioecological status quo. An identity-based movement is thus utilized to protect the continuing exploitation and appropriation of nature. This proposed connection underscores the need for further empirical research, which is crucial for a comprehensive understanding of the topic and its potential impact on environmental policies.
Topic:
Environment, Nationalism, Capitalism, and Modernity
Political Geography:
Global Focus

48. Enhancing Plastic Reuse and Recycling with a Full Life-Cycle Approach

Author:
Aulia Salsabella Suwarno and Ivana Suradja
Publication Date:
11-2024
Content Type:
Policy Brief
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Plastic pollution poses both environmental and economic challenges for Southeast Asia, underscoring the urgent need for a transition to a circular plastics economy driven by reuse and recycling strategies. Although AMS have incorporated these strategies within their National Action Plans, they are struggling to achieve the scale necessary to counteract rising plastic waste. This policy brief identifies key barriers hindering the growth of plastic reuse and recycling initiatives in the region and provides targeted recommendations based on a full life-cycle approach. By adopting this approach, AMS can maximise the economic potential associated with effective plastic waste management and pollution mitigation.
Topic:
Environment, Pollution, Recycling, ASEAN, and Plastic
Political Geography:
Asia

49. Blue Economy in Myanmar

Author:
Zaw Oo and Ngu Wah Win
Publication Date:
01-2024
Content Type:
Policy Brief
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Myanmar’s commitment to the Blue Economy is driven by the Sustainable Development Goals, and it has developed a long-term plan to guide its efforts in reaching these goals. Myanmar’s vision of a Blue Economy involves various sectors, such as fisheries, tourism, and energy. However, the sustainable development of these sectors is facing many challenges, such as conflicts in coastal townships and the departure of foreign businesses. Myanmar must actively seek international cooperation with neighbouring countries and organisations such as the Association of Southeast Asian Nations (ASEAN) to form a stronger framework for sustainable use of ocean resources; invest in research, data collection, and capacity building; and strengthen the governance of Marine Protected Areas.
Topic:
Environment, ASEAN, Blue Economy, and Sustainable Development
Political Geography:
Asia, Southeast Asia, and Myanmar

50. Lebanon’s Solar Rollout: In What Ways Has It Been an Unjust Energy Transition?

Author:
Yusra Bitar
Publication Date:
06-2024
Content Type:
Special Report
Institution:
Arab Reform Initiative (ARI)
Abstract:
Lebanon’s national electricity supply has nearly collapsed, with the country’s residents experiencing constant power cuts over the past three decades and total blackouts since 2020.1 This has led residents across the country to find their “coping strategies” - which have become somewhat normalized - to deal with the national shortages, including purchasing or subscribing to diesel generators.2 More recently, these coping strategies have started to include solar energy installations, which have been deemed revolutionary for Lebanon,3 although in reality, the story is much more complex. As the climate crisis worsens and global institutions start to advocate and fund just transitions,4 it is imperative to reflect on what this means to prevent the repetition of collective injustices. This paper briefly outlines the solar energy landscape in Lebanon and asks some questions about the country’s solar rollout, including who benefits from it and how, as well as how this process repeats past energy injustices. It then presents some case studies of initiatives that have addressed some community energy needs while offering lessons for future energy planning. The paper concludes with recommendations to policymakers, civil society organizations, and the private sector as they transition to solar energy.
Topic:
Environment, Solar Power, and Energy Transition
Political Geography:
Middle East and Lebanon