Design considerations for financing a national trust to advance the deployment of geologic CO2 storage and motivate best practices

This paper explores how the widely held public policy view of the evolution of the risk profile associated with geologic carbon dioxide (CO₂) storage profoundly influences the public policy dialogue about how to best address the long-term risk profile for geologic storage. Evidence emerging from research and pilot scale field demonstrations of CO₂ storage demonstrates that, with proper site characterization and sound operating practices, retention of stored CO₂ will increase with time thus invalidating the premise of an ever growing risk. The authors focus on key issues of fit, interplay, and scalability associated with the ability of a trust fund funded by a hypothetical $1 per tonCO₂ tipping fee for each ton of CO₂ stored in the United States under WRE450 and WRE550 climate policies to manage such risks in an economically efficient and environmentally effective manner. The authors conclude there is no intrinsic value – in terms of risk management or risk reduction – in creating a trust fund predicated solely on collecting a universally applied tipping fee that does not take into account site-specific risk profiles. If left to grow unchecked, a trust fund that is predicated on a constant stream of payments unrelated to each contributing site's risk profile could result in the accumulation of hundreds of billions to more than a trillion dollars contributing to significant opportunity cost of capital. Further, rather than mitigating the financial consequences of long-term CCS risks, this analysis suggests a blanket $1 per tonCO₂ tipping fee, if combined with a concomitant limitation of liability may increase the probability and frequency of long-term risk by eliminating financial incentives for sound operating behavior and site selection criteria—contribute to moral hazard. At a minimum, effective use of a trust fund requires: (1) strong oversight regarding site selection and fund management, and (2) a clear process by which the fund is periodically valued and funds collected are mapped to the risk profile of the pool of covered CCS sites. Without appropriate checks and balances, there is no a priori reason to believe that the amount of funds held in trust will map to the actual amount of funds needed to address long-term care expenses and delimited compensatory damages. For this reason, the authors conclude that financing a trust fund or other risk management instrument should be based on a site delimited estimate of potential future expected financial consequences rather than on the random adoption of a fixed funding stream, e.g., a blanket $1 per ton, because it “sounds” reasonable.     

Lay perceptions of carbon capture and storage technology

The extent of social acceptance of carbon capture and storage (CCS) is likely to significantly influence the sustainable development of CO₂ storage projects. Acceptance of CCS by the key stakeholders (policy makers, the general public, the media and the local community), linked to specific projects, as well as how the technology is communicated about and perceived by the public, have become matters of interest for the social sciences. This article reports on an investigation of the public perception of CCS technology in Spain. Individuals’ views on CCS are analysed through focus groups with lay citizens using “stimulus materials”. As the analysis shows, lay views of CCS differ significantly from the views of decision-makers and experts. Public concerns and reactions to CCS technology and potential projects, as well as the degree of consensus on its acceptance or rejection are detailed. Implications for the future use of CCS are discussed.     

Five-wheel framework for system-based monitoring of heavy metal pollution in rivers

Sectorial approach for monitoring heavy metal pollution in rivers has failed to report realistic pollution status and associated ecological and human health risks. The increasing spread of heavy metals from different sources and emerging risks to human and environmental health call for reexamining heavy metal pollution monitoring frameworks. Also, the sources, spread, and load of heavy metals in the environment have changed significantly over time, requiring consequent modification in the monitoring frameworks. Therefore, studies on heavy metal monitoring in rivers conducted in the last decade were evaluated for experimental designs, research frameworks, and data presentations. Most studies (∼99%) (i) lacked inclusiveness of all environmental compartments; (ii) focused on “one pollutant – one/two compartment” or sometimes “one pollutant – one compartment – one effect” approach; and (iii) remained “data-rich but information poor.” An ecological approach with integrative system thinking is proposed to develop a holistic approach for monitoring river pollution. It is visualized that heavy metal monitoring, risk analyses, and water management must incorporate tracking pollutants in different environmental compartments of a river (water, sediment, and floodplain/bank soil) and consider correlating it with riverbank land use. The systems-based pollution monitoring and assessment studies will reveal the critical factors that drive heavy metals pollutant movement in ecosystems and associated potential risks to the environment, wildlife, and humans. Also, water quality and pollution indexing tools would help better communicate complex pollution data and associated risks among all stakeholders. Therefore, integrating systems approaches in scientific- and policy-based tools would help sustainably manage the health of rivers, wildlife, and humans.     

Delivering social sustainability in the inner-city: the transformation of South-West Montreal,Quebec (Canada)

ABSTRACT

This paper analyses how social sustainability is implemented in private-led regeneration processes and which understanding of the “social” foregrounds the implementation of sustainability in Montreal. The case studies are two new residential projects led by the private sector participating in the transformation of the Southwest Borough in Montreal. The analysis is based on six components used to evaluate the operationalisation of social sustainability for new residential projects as well on the analysis of opportunities to negotiate the “social” in the implementation of sustainability. The two case studies, Griffintown and the Bassins-du-Nouveau Havre projects are examples of brownfield regeneration in a former industrial area along the Lachine Canal known as the South West Borough. We have used semi-structured interviews with the stakeholders as the main source for data collection, a review of press articles and an analysis of the principal planning documents related to each project. If the second example is more convincing in regards to the operationalisation of social sustainability, there is a lack of incentives for developers to integrate social sustainability principles in their development in the Montreal context. Planning instruments should impose more constraints on developers and municipalities should have more financial resources to negotiate with developers what the “social” should be.     

Social licences to operate: for better not for worse; for richer not for poorer? The impacts of unplanned mining closure for “fence line” residential communities

Establishing “social licences to operate” with communities has become a significant corporate social responsibility agenda. The complex dynamics of these relationships can compound the impacts for communities when these contracts are not upheld. This article documents reflections from a rapid rural appraisal conducted in the Shire of Ravensthorpe in remote Western Australia after the Ravensthorpe Nickel Operation was “mothballed” 9 months into a projected 25-year lifespan. It captures how communication about the project and its time frames created a sense of consistency, predictability, certainty and trust – enabling social licence. The raising of hope and the emergence of mistrust underpin social, environmental and financial impacts of this event for the local community. Embedded in the theoretical dimensions of social licences, this case study highlights the problematic of social licences that engage with non-contractual stakeholders as partners in “booms” but have no legal responsibility towards them in times of “bust”.     

Infrastructure development through PPPs in India: criteria for sustainability assessment

Public private partnerships (PPPs) allow the Indian Government to leverage private capital for meeting the widening demand-supply gap in the provision of infrastructure services. The private sector, however, prefers to limit the participation to financially attractive projects only, thereby resulting in patterns of infrastructure creation impeding the progress towards sustainable development. In order to promote sustainable development, the PPP procurement process should focus on incentivising the private sector for sustainable infrastructure development rather than concentrating on ensuring financial sustainability only. This paper discusses the principles-based PPP-specific framework that has been developed to facilitate assessment of PPP projects' progress towards sustainable development. The framework development was based on a holistic approach to sustainability assessment and subsequently validated through questionnaire survey with key stakeholders in the Indian PPP programme. This framework will provide the decision makers with appropriate decision aid for integration of sustainable development principles in the PPP procurement process.     

Techno-environmental risks and ecological modernisation in “double-risk” societies: reconceptualising Ulrich Beck’s risk society thesis

By utilising a relatively underused framework developed by Maurie J. Cohen (1997. Risk society and ecological modernisation alternative visions for post-industrial nations. Futures, 29 (2), 105–119), this theoretical paper joins two of the most debated theories of environmental politics – ecological modernisation (EM) and Ulrich Beck’s risk society thesis – into a unified framework and problematises some of their implicit assumptions to theoretically introduce the notion of a “double-risk” society. In addition, it explains the differences between the traditional “Risk Society” theorised by the German sociologist Ulrich Beck and the newly introduced concept of a “double-risk” society. The arguments put forward in this paper provide some fresh perspectives facilitating the study of the techno-environmental risks and other ecological problems faced by “double-risk” societies. Theoretically, this paper adds to both EM theory and the risk society thesis as the generalisability of their existing versions is limited precisely because they fail to address some important social changes at the global structural level.     

A FRAMEWORK FOR QUANTITATIVE SMART GROWTH IN LAND DEVELOPMENT1

ABSTRACT: Increasing awareness about the problems brought on by urban sprawl has led to proactive measures to guide future development. Such efforts have largely been grouped under the term “Smart Growth.” Although not widely recognized as such, the “smart” in Smart Growth implies an optimization of some quantity or objective while undertaking new forms of urban development. In this study, we define Smart Growth as that development plan that leads to the optimal value of a precisely defined measure identified by a stakeholder or stakeholders. To illustrate a formal, quantitative framework for Smart Growth, this study develops definitions of optimal development from the perspectives of four different types of stakeholders: a government planner, a land developer, a hydrologist, and a conservationist subject to certain development constraints. Four different objective functions are posed that are consistent with each of these stakeholders’perspectives. We illustrate the differences in consequences on future development given these different objective functions in a stylized representation for Montgomery County, Maryland. Solutions to Smart Growth from the individual perspectives vary considerably. Tradeoff tables are presented that illustrate the consequences experienced by each stakeholder depending on the viewpoint that has been optimized. Although couched in the context of an illustrative example, this study emphasizes the need to apply rigorous, quantitative tools in a meaningful framework to address Smart Growth. The result is a tool that a range of parties can use to plan future development in ways that are environmentally and fiscally responsible and economically viable.     

ASSEMBLY OF MAP‐BASED STREAM NARRATIVES TO FACILITATE STAKEHOLDER INVOLVEMENT IN WATERSHED MANAGEMENT1

ABSTRACT: Watershed stewardship activities throughout North America have evolved into a process that requires more involvement in planning and decision making by community stakeholders. Active involvement of all stakeholders in the process of watershed stewardship is dependent on effective exchange of information among participants, and active involvement of a wide range of stakeholders from “communities of place” as well as those from “communities of interest.” We developed a map‐based stream narrative tool as a means to: (a) assemble a wealth of incompletely documented, “traditional” ecological or natural history observations for rivers or streams; and (b) promote a higher level of active involvement by community stakeholders in contributing to information‐based, watershed management. Creation of stream narratives is intended for use as a tool to actively engage local stakeholders in the development of a more comprehensive information system to improve management for multiple stewardship objectives in watersheds. Completion of map‐based stream narrative atlases provides a valuable supplement to other independent efforts to assemble observations and knowledge about land‐based natural resources covering entire watersheds. We are confident that completion of stream narrative projects will make a valuable addition to the information and decision making tools that are currently available to the public and resource agencies interested in advancing the cause of community‐based approaches to watershed and ecosystem management.     

Public risk perspectives on the geologic storage of carbon dioxide

Carbon Dioxide Capture and Storage (CCS) technology has the potential to enable large reductions in global greenhouse gas emissions, but one of the unanswered questions about CCS is to what extent it will be accepted by the public. To provide insight regarding risk perception as an important component that will influence the public acceptance of CCS, this study discusses different notions of risk and their varying uses by the public, who generally use a social constructivist risk perspective, and risk experts, who generally use a realist perspective. Previous studies discussing the public acceptance of CCS have relied on survey response data and/or focus groups. This study instead uses the psychometric theory of public risk perception to postulate how the public is likely to respond to efforts to use geologic storage of CO₂, a component of the CCS architecture. Additionally this paper proposes further actions that could favorably impact the public's perception of risk from geologic storage projects. Through the psychometric analysis this study concludes that the risks of geologic storage are likely to eventually be considered no worse than existing fossil fuel energy technologies. However, since geologic storage of CO₂ is a new technology with little operational experience, additional field tests and a demonstrated ability to mitigate problems should they arise will be necessary to improve the public's perception of risk from CCS technologies.     

Environmental bonds and the challenge of long-term carbon sequestration

The potential to capture carbon from industrial sources and dispose of it for the long-term, known as carbon capture and sequestration (CCS), is widely recognized as an important option to reduce atmospheric carbon dioxide emissions. Specifically, CCS has the potential to provide emissions cuts sufficient to stabilize greenhouse gas levels, while still allowing for the continued use of fossil fuels. In addition, CCS is both technologically-feasible and commercially viable compared with alternatives with the same emissions profile. Although the concept appears to be solid from a technical perspective, initial public perceptions of the technology are uncertain. Moreover, little attention has been paid to developing an understanding of the social and political institutional infrastructure necessary to implement CCS projects. In this paper we explore a particularly dicey issue--how to ensure adequate long-term monitoring and maintenance of the carbon sequestration sites. Bonding mechanisms have been suggested as a potential mechanism to reduce these problems (where bonding refers to financial instruments used to ensure regulatory or contractual commitments). Such mechanisms have been successfully applied in a number of settings (e.g., to ensure court appearances, completion of construction projects, and payment of taxes). The paper examines the use of bonding to address environmental problems and looks at its possible application to nascent CCS projects. We also present evidence on the use of bonding for other projects involving deep underground injection of materials for the purpose of long-term storage or disposal.     

Green financing,interrupted. Potential directions for sustainable finance in Luxembourg

ABSTRACT

This paper has a quintessentially explorative character. It aims at identifying existing as well as potential (yet missing) links between the finance industry and local businesses that aspire to more sustainable economic practices. Building on the observation that green investments have been gaining weight in global investors’ strategies, we analyse how sustainable – in the most comprehensive sense of the word – green investments could ultimately be(come), when green assets are still managed according to the logic of “financialised finance”. This latter’s technologies of commodification, securitisation and derivatives-trading allegedly oppose alternative economic practices that pursue economic sustainability through social and environmental gains. In contrast, we investigate how the finance industry relates to alternative financial practices, products and organisations that offer sustainability-oriented financing services, – for example, regional banks, cooperatives and the like, – with a specific focus on green, social and solidarity businesses. Both approaches subscribe to apparently contradictory ideologies. We establish a beneficial dialogue between the opposing models of “green capitalism” and “alternative economies” so as to identify potential points of intersection. The context of Luxembourg’s local/regional economies provides a great opportunity to empirically access three levels of investigation: the private sector, the public sector and an international financial centre, a key facilitator for green finance, thus utilising insights from the concept of bricolage. Whilst supporters of Luxembourg’s emerging green finance profile recognise its positive impact on the small country’s national branding, in combination with economic stimuli, more critical commentators point to pure “green washing” effects.     

Anil Agarwal (1947-2002) From Rio to Rio + 10: An appreciation

This article explores how the geographic boundaries of who could participate in the decision processes of two community-owned wind energy projects (WEPs) was evaluated in terms of their fairness by project leaders and local residents. In particular, it analyses the varying ways that the justice principle of “those affected by a decision have a right to be involved in making that decision” was utilised to make claims about the fairness of each boundary. In both case studies, even though this justice principle was often shared by local stakeholders, defining exactly what a “fair” boundary encompassed was problematic and strong disagreements emerged. Three factors that contributed to this disagreement are highlighted, and the significance of the findings for the implementation of community WEPs is reflected upon.     

Effective EU and Member State policies for stimulating CCS

Although CO₂ capture and storage (CCS) is widely recognised as an option to mitigate climate change, consistent and effective EU policies to advance CCS are still absent. This paper discusses policy instruments for advancing large-scale deployment of CCS in the European Union, and evaluates them in a multi-criteria analysis. The EU Emissions Trading Scheme (EU-ETS) is a cost-effective instrument for limiting greenhouse gas emissions, but it is questionable whether its currently limited time horizon and short-trading periods will lead to substantial CCS diffusion. Complementary policies at the EU and the Member State level may repair this and provide sufficient incentives for CCS. Potential policies include financial instruments such as investment subsidies, a feed-in scheme, or a CO₂ price guarantee, as well as a CCS mandate or a low-carbon portfolio. These policy options differ with respect to their environmental effectiveness, possible interaction with the EU-ETS, costs and financial risk involved, and their competition with other mitigation options. Interactions between Member State policies and the EU-ETS are smaller in scope than those of EU-wide policies, but they are more likely to lead to displacement of financial resources from other low-carbon technologies. In addition, national policies may pose a significant part of the financial risk of CCS operations with Member States, reducing the operator's incentive to innovate. Overall, structural policies at the EU level, such as a mandate or a low-carbon portfolio standard would be more conducive for realising large-scale deployment of CCS across the EU as well as more acceptable to environmental organisations.     

OPTIMIZING WELL PLACEMENT IN A COASTAL AQUIFER: OUTER CAPE COD,MASSACHUSETTS1

ABSTRACT: An inverse‐simulation approach is used to determine optimal strategies for developing public water‐supply systems in a shallow, coastal aquifer on the outermost arm of the Cape Cod peninsula in Massachusetts. Typically a forward simulation (or “trial and error”) approach is used to find best pumping strategies, but the chances of finding success with this tact diminish as the number of potential options grows large. Well locations and pumping rates are optimized with respect to: (1) providing sufficient water to areas of water‐quality impairment, (2) minimizing impacts to nearby surface waters, (3) preventing saltwater contamination due to overpumping, and (4) minimizing financial cost of well development. Potential well sites and water‐supply scenarios are separated into “politically‐based” and “resource‐based” categories to gain insight into the degree that pre‐existing political boundaries hinder best management practices. The approach provides a promising tool in transboundary water‐resources settings because it allows stakeholders to find solutions that best meet everyone's goals, as opposed to pursuing options that will create conflict, or are less than optimal.     

Sustainable Water Resources Management in a Conflict Resolution Framework1

Abstract: A decision support system for sustainable water resources management in a water conflict resolution framework is developed to identify and evaluate a range of acceptable alternatives for the Geum River Basin in Korea and to facilitate strategies that will result in sustainable water resource management. Working with stakeholders in a “shared vision modeling” framework, sustainable management strategies are created to illustrate system tradeoffs as well as long‐term system planning. A multi‐criterion decision‐making (MCDM) approach using subjective scales is utilized to evaluate the complex water resource allocation and management tradeoffs between stakeholders and system objectives. The procedures used in this study include the development of a “shared vision model,” a simulated decision‐making support system (as a tool for sustainable water management strategies associated with water conflicts, management options, and planning criteria), and the application of MCDM techniques for evaluating alternatives provided by the model. The research results demonstrate the utility of the sustainable water resource management model in aid of MCDM techniques in facilitating flexibility during initial stages of alternative identification and evaluation in a basin suffering from severe water conflicts.     

Ecological Feasibility Studies in Restoration Decision Making

The restoration of degraded systems is essential for maintaining the provision of valuable ecosystem services, including the maintenance of aesthetic values. However, restoration projects often fail to reach desired goals for a variety of ecologic, financial, and social reasons. Feasibility studies that evaluate whether a restoration effort should even be attempted can enhance restoration success by highlighting potential pitfalls and gaps in knowledge before the design phase of a restoration. Feasibility studies also can bring stakeholders together before a restoration project is designed to discuss potential disagreements. For these reasons, a feasibility study was conducted to evaluate the efficacy of restoring a tidal freshwater marsh in the Potomac River near Alexandria, Virginia. The study focused on science rather than engineering questions, and thus differed in approach from other feasibility studies that are mostly engineering driven. The authors report the framework they used to conduct a feasibility study to inform other potential restoration projects with similar goals. The seven steps of the framework encompass (1) initiation of a feasibility study, (2) compilation of existing data, (3) collection of current site information, (4) examination of case studies, (5) synthesis of information in a handbook, (6) meeting with selected stakeholders, and (7) evaluation of meeting outcomes. By conducting a feasibility study using the seven-step framework, the authors set the stage for conducting future compliance studies and enhancing the chance of a successful restoration.     

THE ENHANCED ROLE OF WATER CONSERVATION IN THE COST-BENEFIT ANALYSIS OF WATER PROJECTS1

The concept of water conservation has increased in importance because of revisions in the rules and procedures for performing cost-benefit analyses of federal water projects. These revisions include a requirement that nonstructural and water conservation measures be incorporated into economic assessments of projects. Project analyses will now proceed as if water supplies were allocated “most effectively,” that is, to their highest valued uses. A related requirement provides that the net benefits of any project should now be valued using willingness to pay measures. A specific cost-benefit methodology accommodating the revisions is constructed and discussed. Informational requirements for applying this methodology are identified. In addition to being consistent with federal mandates, this technique offers important advantages over the traditional “requirements” approach to water supply planning.     

Understanding the links between urban regeneration and climate-friendly urban development: lessons from two case studies in Japan

Urban regeneration policy and projects could facilitate the implementation of spatial policy responses to mitigate climate change and adapt to its consequences in cities. However, the potential role of urban regeneration in creating climate-friendly urban environments is not sufficiently evaluated and understood. Considering this gap, the paper aims to explore the potential linkage between urban regeneration and climate change. The case study analysis focuses on two urban regeneration projects, representing two major approaches of regeneration practices in Japanese cities, namely “project-based” and “plan-based” approaches. Research findings demonstrate that urban regeneration could help in reorganising existing urban areas in a climate-friendly manner. As a cross-cutting field of urban policy, urban regeneration could also help in creating synergies between mitigation and adaptation goals. Yet, achievement of such outcomes via regeneration projects necessitates the existence of an overriding urban development vision, political commitment, and willingness to implement binding and structural measures.     

A LAW AND ECONOMICS APPROACH TO RESOLVING RESERVOIR SEDIMENT MANAGEMENT CONFLICTS1

The loss of the world's reservoir capacity to sedimentation can be mitigated by altering dam operations to release sediment downstream. However, legal uncertainty regarding whether dam owners are liable for damages to surrounding landowners due to altered operations provides a significant disincentive for sustainable sediment management. Past work recommends that courts apply a “rule of reasonableness” in assessing liability: dam owners should be held liable for damages only if they act unreasonably in altering operations, and surrounding landowners should take reasonable measures to mitigate foreseeable damage. Based on past cases, judicial determinations of reasonable reservoir management and reasonable precautionary measures by landowners are generally highly speculative, controversial, and based on limited information. Courts can ease the future burden of making these difficult determinations with rulings that create economic incentives for parties to act reasonably. For example, courts might entitle landowners to be free from sediment related damages, and protect the entitlement with a liability rule. This gives dam owners an economic incentive to release sediment only if the benefits of doing so outweigh court ordered damages to landowners. Past judicial decisions are largely consistent with this legal regime.