Unit 7 environmental management 1


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Over view of environmental impacts of industrial development. Environmental rules, laws, and regulations in India.

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Unit 7 environmental management 1

  1. 1. Unit 7 Emerging Environmental Challenges7-Mar-13 Prof. Prabha Panth 1
  2. 2. Market Failure• The Perfect Competition market is assumed to be the Best Market.• But it fails to maximise Benefits in the allocation of Environmental Goods and Services.• Market failure occurs when private decisions based on market prices, do not generate an efficient allocation of resources to society.• Leads to social and environmental problems – cannot be tackled by market forces7-Mar-13 Prof. Prabha Panth 2
  3. 3. Characteristics of Environmental Goods and Services1. Free Goods: All environmental goods and services provided freely by nature. No ownership, so there is no price for use or misuse. Common property resources.2. Pure Public Goods: * Non-excludable: One person cannot stop another from using it. E.g. oxygen, oceans * Non-rival: One person‟s use of the environment does not reduce the amount available for others. E.g. oxygen, oceans 37-Mar-13 Prof. Prabha Panth
  4. 4. 3. Externality:Externality or External Costs and Benefits: when one unit‟s action affects another outside the market price.Marginal Environmental Cost or Benefit  Private Cost or Benefit.o A firm‟s MC does not show the Environmental costs – e.g. cost of thermal electricity does not include cost of global warming.o Cost of paper does not include the costs of deforestation.o Cost of a car does not include the cost of vehicular pollution.7-Mar-13 Prof. Prabha Panth 4
  5. 5. Ten top environmental issues1. Climate Change 6. Air Pollution2. Energy 7. Waste Management3. Water 8. Ozone Layer4. Biodiversity and Depletion Land Use 9. Oceans and5. Chemicals, Toxics, Fisheries and Heavy Metals 10.Deforestation7-Mar-13 Prof. Prabha Panth 5
  6. 6. Environmental Impacts of Industries• Industrial development requires huge amounts of natural resources inputs.• Creates huge amounts of pollution,• Result: – Loss of forests, coastal areas, erosion, – Mining which affects soil, water and air, – Industrial emissions affect air quality, – Effluents affect water resources, agriculture – Medical and solid wastes, – Products themselves – environmentally harmful7-Mar-13 Prof. Prabha Panth 6
  7. 7. Environment Impacts and Business• Business cannot ignore environmentalism – Consumer awareness, Green consumerism, Good will through „greening‟ business. – Reaction by public affected by pollution and resource degradation, – Regulations and penalties – Ecological conservation programmes, – International controls – Environmental summits, Kyoto Protocol, Montreal Protocol, etc. – Cost effectiveness in “prevention” rather than “cure” – Greater efficiency though saving energy, and recycling7-Mar-13 Prof. Prabha Panth 7
  8. 8. Air Pollution• Chief sources: Industries, vehicles (in cities), burning wastes, natural causes.• Main Air Pollution problems: – Globally - Acid rain. Climate change and global warming, ozone layer depletion. – Locally – CO and SPM, photo chemical smog, smoke, dust, Impacts of local pollution: respiratory systems, eyes, lead poisoning, Children and older population more vulnerable.7-Mar-13 Prof. Prabha Panth 8
  9. 9. Acid Rain Sulphuric Acid Oil Refineries Plants 3% 2% Others 1% Steel 5% Thermal Power PlantsUsually it is SO2 that reacts with moisture in 89%the air, and causes Acid RainDestroys vegetation, buildings, andrespiratory systems of living creatures7-Mar-13 Prof. Prabha Panth 9
  10. 10. • CFCs released by coolants in ACs, refrigerators, fire fighting equipment.• Chemical reaction with ozone in upper stratosphere, depletes the ozone layer,• Ultraviolet rays enter the earth. – Can cause skin cancers, cataracts, – Affects plant growth, – Phytoplankton growth affected (6-8% decrease). – Biochemical cycles affected.7-Mar-13 Prof. Prabha Panth 10
  11. 11. Climate Change• Global warming, and climate change,• Affects: agriculture, forests,• Melting of snow and ice,• Rise in sea levels,• Inundation of coasts and small islands,• Spread of tropical diseases.7-Mar-13 Prof. Prabha Panth 11
  12. 12. Greenhouse GasesGreenhouse gases include:• Carbon dioxide: through burning fossil fuels.• Methane: agriculture, dairying,• CFCs: cooling agents in fire fighting equipment, air conditioners, refrigerators,• Nitrous oxides: industrial smoke and vehicular pollution.• Deforestation and Land use change: CO2 not converted to oxygen7-Mar-13 Prof. Prabha Panth 12
  13. 13. 7-Mar-13 Prof. Prabha Panth 13
  14. 14. Share of CO2 from various sources - India (2008-09) Wastes 3.60% Electricity Fugitive 3.90% 24.60% Other fuels 9.00% Industry 13.8% Land use change 18.20% Transport 13.50% Agriculture 13.50%7-Mar-13 Prof. Prabha Panth 14
  15. 15. 7518, Top six contributors - CO2 emissions 2008-09 8000 23% 6529, 7000 18.1% Top 6 are contributing 6000 more than 69% of world’s CO2 million tonnes 5000 4177, 14% 4000 3000 1609, 1539. 2000 5.3% 5.1% 1163, 4% 1000 0 China USA European Russia India Japan union7-Mar-13 Prof. Prabha Panth 15
  16. 16. Water Pollution • Point source: from a specific point – such as sewage, oil spills, industrial effluents from stationary sources such as factories, etc. • Non-point sources: carried over to different points from the main source: – Effluents from industries – agricultural chemicals from farmland, – nutrients and toxic materials from urban and suburban areas, – Oil spills This runoff finds its way into water bodies, and pollutes them7-Mar-13 Prof. Prabha Panth 16
  17. 17. Environmental Regulations in India• Indian Constitution: The right to clean and pollution free environment, is a Fundamental Right.• Directive Principles of State: “The State shall endeavour to protect and improve the environment and to safeguard the forests and wildlife of the country. (Article 48A).• Duty of citizens to protect and improve the natural environment including forests, lakes, rivers and wild life, and to have compassion for living creatures. (Article 51 A (g))7-Mar-13 Prof. Prabha Panth 17
  18. 18. Nodal Government Ministries Ministry of Environment and Forests Ministry of New Ministry of Ministry of Earth and Renewable Water sciences CPCB Energy Resources resources SPCB7-Mar-13 Prof. Prabha Panth 18
  19. 19. Environmental Laws in India • The Water (Prevention and Control of Pollution) Act, 1974. – Prevention and control of water pollution, – Mandatory Green Clearance, – CPCB and SPCBs were set up – – Provision to inspect and penalise polluting industries. – Take samples of effluent for analysis, – Can close down non-compliant factories, and cut off water and power supply. – Provides for criminal liabilities7-Mar-13 Prof. Prabha Panth 19
  20. 20. • The Water (Prevention and Control of Pollution) CESS Act, 1977.– Industries to pay for water use. Water cess.– Quantity specified per industry, over use penalised.– 25% rebate if ETPs installed• The Air (Prevention and Control of Pollution) Act, 1981. – Air quality standards, – Control of air pollution – industries, vehicles – Polluting units can be sued before a Metropolitan Magistrate or a Judicial Magistrate of the first class7-Mar-13 20 Prof. Prabha Panth
  21. 21. • The Environment (Protection) Act, 1986 – Umbrella legislation, – Industrial location, handling of hazardous material. – 5 years imprisonment, and 5 lakh Rs fine, and if not compliant, Rs.5000 for each day on non-compliance• National Environmental Policy 2006:  Conservation of critical natural resources,  Livelihood Security for the Poor.  Integration of Environmental Concerns in Economic and Social Development,  Efficiency in Environmental Resource Use,  Environmental Governance.7-Mar-13 Prof. Prabha Panth 21
  22. 22. Classification of polluting industries - 1991• Red Industries: ETP mandatory – Highly water polluting industries/activities, – 65 categories – thermal plants, chemical, drug, leather, nuclear, textiles, sugar, etc.• Orange Industries: ETP mandatory  Less polluting, 26 categories, includes ceramics, bricks, soap, wires, etc.• Green Industries: – Least or not polluting, 56 categories, e.g. power looms, paper pins, candles, ready made garments, etc.7-Mar-13 Prof. Prabha Panth 22
  23. 23. Environmental regulation in India1. Consent for operation and establishment (green licence)o Annual data to be submitted to State PCB, which will inspect and check if information is correct.o If non-compliance is detected, can close down the unit, or cut off power and water,o Or ask company to pay compensation to victims, until it is compliant.o If not satisfied, consent may not be given.o7-Mar-13 Prof. Prabha Panth 23
  24. 24. 2. Environmental Impact Assessment – Statutory for 29 different activities: – Industry, mining, irrigation, power plants, ports and harbours, atomic power plants, railways and road highways, bridges, airport and communications. – EIS to be submitted to Central Government. – Includes 1) Alternatives, 2) Scope, 3) Screening, 4) Public hearing, 5) Reporting 6) follow up.• Projects may be denied if they cause large environmental and social damages.7-Mar-13 Prof. Prabha Panth 24
  25. 25. 3. Environmental Audit:• Introduced in March 1992 by the Central Pollution Control Board (CPCB).• Applicable to 125 selected polluting industries.• Environmental auditing and submission of Annual Environmental Statements, mandatory for 125 industries  Objective: to minimise consumption of resources,  To promote use of clean technologies in industrial production  To minimise generation of wastes.7-Mar-13 Prof. Prabha Panth 25
  26. 26. 4. Corporate Social Responsibility (CSR):• CSR: voluntary initiative taken by business companies. Includes: – codes of conduct – ethics of behaviour, – improvements in working conditions of labour – environmental management systems – installation of ETP, air filters and chimneys, – community development projects - health programmes, education, water supply to locals, – corporate donations to worthy causes, and – company reporting on social and environmental issues.• Only 50% of major 1000 corporates in India were undertaking CSR in 2009.7-Mar-13 Prof. Prabha Panth 26
  27. 27. 5. ISO 14000: International Organisation for Standardisation: NGO, Geneva, Switzerland, 162 member countries international standard for business and industry in environmental management, in 1996. Bureau of Indian Standards (BIS) ISO 14001 registration requires a) an environmental management system, b) compliance with all local environmental laws wherever it operates, and c) a commitment to continuous improvement7-Mar-13 Prof. Prabha Panth 27
  28. 28. 6. Cleaner Production and Waste Minimisation Techniques:o Increase profits through CP.o National Productivity Council provides technology and training,o Includes: Textiles, dyes, rice mills, distilleries, paper mills and edible oil units, small and medium scale industrieso Example: a textile firm in Tirupur saves Rs.10 lakhs p.a. by changing its inputs, and reducing water inputs.o Most firms recover their costs between 6 months – 5 years depending on size and product.7-Mar-13 Prof. Prabha Panth 28
  29. 29. Economics of environmental protection by Industrial firms• For most firms, cost of compliance < cost of penalties of non-compliance.• Closure – loss of profits.• Power and water cuts: fall in production, and loss of profits.• Compensation to victims, adds to cost.• International pressure on environmental safety and pollution control. Affects exports.• Prevention is better than cure.7-Mar-13 Prof. Prabha Panth 29
  30. 30. 7-Mar-13 Prof. Prabha Panth 30