Environmental Issues and Strategies for the Oil and Gas Industry Programa de las Naciones Unidas para el Medio Ambiente Programme des Nations Unies pour l’Environnement United Nations Environment Programme Programa das Naçoes Unidas o Meio Ambiente Oficina Regional para América Latina y el Caribe Regional Office for Latin America and the Caribbean Brazil, May 2002 Dr. Diego Masera Regional Co-ordinator of the Industry Programme

Major environmental challenges 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: - 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 of environmental 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 = 19 1

Responses 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 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) 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 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 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 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 responses systematic environmental assessment regimes updated regulatory frameworks use of economic instruments some acceptance of voluntary mechanisms establishment of international conventions educational reform in engineering But has progress been sufficiently widespread?

Oil & Gas - UNEP’s Objective to work with strategic sector partners to improve availability of information about environmental impacts and management options

UNEP 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 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 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 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 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

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 Forum

Management 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 service news on offshore companies, environment events calendar new publications changes in legislation

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

Examples of OEF partner groups

UNEP & the petroleum sector Reporting The Social Reporting publication The Oil Sector Report Accountability, companies requested to report Global Reporting Initiative

UNEP & the petroleum sector Sharing information Other reports

Some 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 Virreyes CP México, D.F., MEXICO