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CONTENTS OIL, GAS & ENERGY : NEWS & VIEWS
Editorial Note Editor’s Choice • A Decoder Ring for a Jargon-Filled Event • A who's who among the COP21 commitments • Scientists welcome Paris climate pact but still alarmed
Editor's Pick • Why are oil and gas companies calling for more action on climate change? • Make in India Make it work • COP 21 PARIS
IndiScan • Govt proposes revenue-sharing model for future gas auctions • Mr Pradhan reviews CNG infrastructure status in Delhi • RIL faces 40% cut in marketing margin on KG-D6 gas
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• Cairn moves court on Barmer contract extension, oil price • India needs Rs 9 lakh crore energy investment annually till 2040 to meet demand: IEA • Govt advances roll out of BS-V, BS-VI norms for 4wheelers • Decrease dependence on dollar • Investor sues Oilex for holding back information • India O&G Statistics • Petroleum Minister addresses the 6th Asian Ministerial Energy Roundtable in Qatar • Challenge of low prices, an opportunity to upscale production: Dharmendra Pradhan • Petroleum Ministry to fix gas marketing margin • OVL might get rights to $5 billion Iran gas field • ONGC, OIL, Cairn ask govt to cut cess on crude • RIL Pips ONGC, regains top slot in Platts global ranking
GlobeScan • Collaboration needed to tackle Middle East's ageing structures • Iran offers 50 oil projects to foreign investors • BG starts commercial operations on second QCLNG train in Australia
TrendScan • Climate change a great challenge: ISRO chief
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TechScan • GAIL, ISRO launch satellite-based portal to monitor pipelines • SERVO HYVIS EE 46 long drain hydraulic oil launched at EXCON exhibition in Bengaluru • Humpback Whales Solve a Big Problem for Wind Turbines • Solar Sunrise • Regenerating Bones with Nanoparticles • Novel material has potential to soak up oil spills • Researchers push the limits of solar cells • Regenerating Bones with Nanoparticles • Will Endlessly Recyclable Plastics Soon Be a Reality? By: Jessica Lyons Hardcastle • COP21 PARIS Hurdles & Challenges
CLIMATE CHANGE, SUSTAINABILITY & HSE • • • • • • • • •
Thousands rally worldwide on climate change Paris Summit 2015: tackling climate change A Path for Climate Change, Beyond Paris Agreement Reached on Draft Climate Accord, U.N. Officials Say Hopes rise as UN adopts climate-savingBlueprint Shrinking Glaciers on Mount Everest, 28 per cent over the past 40 years due to climate change 139 Countries Could Get All of their Power from Renewable Sources Carbon capture analyst: “Coal should stay in the ground” Technologies that could transform how industries use energy 4
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• Experts say political will, access to capital are keys to combating water crisis • Saving the ocean from plastic waste • Phillips 66 updates earthquake protocols • Chennai Petroleum shuts 210,000 bpd refinery due to flooding • Bad air: Delhi races ahead of Beijing • Fire erupts at largest Pemex refinery in Mexico as workers suffer injuries • REFILE EXCLUSIVE-Partner in Canada's Energy East struggled with pollution controls
THE BANYAN TREE • • • • • •
Improving Capital Projects with Modularization 8 Qualitie of a Strong Mentor The power of hiring for values What Amazing Bosses Do Differently Economics of relationships Is your glass half full or half empty?
F2F • We’re working with the govt in areas it needs help: Nathealth President • Zero waste: An attainable goal? • Developed countries are backtracking on their commitments: Ajay Mathur
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Editorial Note
Dear Patrons of Petrotech, The month of November shall go down into the history for two reasons. One, the Govt. of India floated its plan for opening up its sedimentary basin for exploration, and the MoPNG asked for industry comments and suggestion on “New Fiscal & Contractual Regime for Awards of Hydrocarbon Acreages” by 30th of November. It was very heartening to find that every segment of the industry segment deliberated the subject in detail and sent their views by 30th November , the deadline to send the same. The Petrotech Veterans met on 24th November and after a prolonged deliberations, sent their suggestions on all 10 points the ministry had asked for, before the deadline of 30th November’15, to the MoPNG. The deliberations were moderated by Mr. Debasish Mishra, Partner, Deloitte, in which many serving industry experts , besides the industry veterans very actively participated. The recommendations of the Petrotech Veterans’ Forum are separately enclosed with this issue of PetroScan. 6
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Second, The Historic Agreement at COP 21 Paris. This landmark event at Paris on 30th November, which drew attention of entire world and to India, in particular, for its rational stand on halting the rise of global temperature by 2 deg C, a tough task, yet not impossible and that too with raising the quality of life of over 3 billion people, who are in various stages of development. After yearlong preparations and several rounds of the meeting of various working groups, finally representatives and heads of 195 countries converged in La Bourget, Paris on 30th November for a fortnight of deliberations for saving the earth and future generations from the adverse effects of Climate Change. The Paris Accord, embraced by 195 nations, aim to cap warming to “well below” two degree Celsius and to “pursue efforts” to limit the increase in global temperature to 1.5 deg C. According to IPCC, in order to limit the global warming with in 2 Deg C the global emissions would have to fall by 40 to 70 % by 2050. In view of this, the ambitious temperature limiting goal of the Paris Accord does not match with the ambitious mitigation goals. In fact, with the agreements arrived at, the net CO2 emission beyond 2050 has to be ZERO. Will it be possible? The Climate Scientists, however, have welcomed the outcome but also warned of a gaping hole – lack of a detailed roadmap for cutting greenhouse gases that cause and aggravate the problem. The effect of Climate Change has started showing in many ways. Besides erratic weather, one scientific study indicates that the days have become longer due to melting of glaciers near the poles resulting in rise in sea level, which in turn has partially slowed down the earth’s rotation, thereby increasing the length of days, though it is in milliseconds, yet significant in geotectonic terms. This is also an indication of how vulnerable the coastal areas, islands and almost one third of global population are.
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The Oil & Gas industry is seen as major contributor of GHG, It was heartening to find that the companies responsible for a fifth of the world's oil and gas supply, and who lead the Oil and Gas Climate Initiative (OGCI) wholeheartedly supported the new global agreement arrived at in Paris. It’s the issue of sustaining the business and their concern for the generations that the companies that produce oil and gas want to see more done to tackle climate change. The first reason is simply that everyone want the planet to be sustainable in the future. Everyone has the same hopes and fears for our children and grandchildren as anyone else. The second reason is being close to the issue, O&G industry has develop realistic and affordable ways to make the transition to a lower carbon economy. It is not for achieving sustainable competitive advantage but for sustaining the business itself. This is just a beginning of the structural and disruptive change in the fossil fuels industry, and we wish to see changes for better. We transit into 2016, on this hopeful note and pledge to work for a greener future. Wishing you and your family, Very Happy, Green and Glorious New Year,
(Anand Kumar) Director, Petrotech TOP
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Editor’s Choice A Decoder Ring for a Jargon-Filled Event December 3, 2015
LE BOURGET, France — There is a language barrier at the Paris climate talks, and it has nothing to do with the 195 countries that are participating. The barrier is between the technocrats and everyone else. For the uninitiated, the alphabet soup of acronyms can be impenetrable, even mind-numbing. Take, for example, this event scheduled for 4:40 p.m. on Thursday: “SBSTA contact group on the clarification of the text in section G (Article 3, paragraph 7 ter) of the Doha Amendment to the KP.” Here is a glossary of the most significant terms:
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ADP: Ad Hoc Working Group on the Durban Platform for Enhanced Action. Despite its abstruse name, this is the most important set of negotiations taking place this week. The working group is tasked with finalizing an international protocol to contain global warming. CMP11: One of the names for the Paris climate talks. It stands for 11th session of the Conference of the Parties “serving as the meeting of the parties to the Kyoto Protocol.” (See COP21, below.) Nearly all of the world’s countries are parties to the protocol, but there are two very important exceptions: The United States signed it in 1998, but President Clinton never submitted it to the Senate for ratification, and Canada, under its previous Conservative government, withdrew from the protocol in 2012. (The new Liberal Party prime minister, Justin Trudeau, has reversed course.) COP21: The primary name of the Paris climate talks. It stands for 21st session of the Conference of the Parties to the United Nations Framework Convention on Climate Change. GHG: Greenhouse gases. They are warming the planet. Especially carbon dioxide. G-77: Group of 77. A long-established bloc of developing nations that join together at United Nations meetings. (The actual number has grown to 134, but the original name has been kept for symbolic reasons.) Currently led by South Africa, the group, along with China, is pushing rich nations to carry out and expand their pledge to provide $100 billion a year in “climate finance” for emerging and developed countries by 2020. INDC: Intended Nationally Determined Contributions. These are the plans countries were asked to submit over the past year to detail how they would cut domestic emissions. So far, 183 plans have been submitted, representing 95 percent of the world’s emissions of greenhouse gases.
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KP: Kyoto Protocol. The 1997 accord that acknowledged that human activities were changing the climate and that called on developed countries to reduce emissions as they were historically responsible for the problem. Climate talks in Durban, South Africa, in 2011, ended with the aim that a legally binding deal covering all countries (not just developed ones) would be reached by the end of 2015. LDC: Least Developed Countries. The world’s poorest nations, most of which are in Africa or Asia. They are looking for aid to mitigate, and adapt to, the effects of climate change. LMDC: Like-Minded Developing Countries on Climate Change. A loose-knit but powerful bloc that has historically been a big obstacle in global climate talks. It includes not only China and India (major negotiating powers in their own right) but also oil producers like Saudi Arabia and Venezuela, as well as developing countries like Bolivia and Malaysia that accuse rich, high-consumption countries of hampering the economic development of poorer ones. LPAA: Lima-Paris Action Agenda. A set of events, bridging last year’s climate talks and this year’s, to inspire people to accelerate the shift to a low-carbon future. NAMA: Nationally Appropriate Mitigation Actions. At the climate talks in Bali, Indonesia, in 2007, developing countries agreed to take voluntary steps to mitigate emissions “in a manner commensurate with their capacity and in line with their national development goals.” Rich countries now want developing ones to agree to binding commitments. SBI: Subsidiary Board of Implementation. Gives policy advice to the COP. SBSTA: Subsidiary Board of Scientific and Technological Advice. Provides technical expertise to the COP. SIDS: Small Island Developing States. A politically weak but morally influential bloc of island countries, most of them in the South Pacific 11
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or the Caribbean. Some are at risk of being submerged by rising oceans. UNFCCC: United Nations Framework Convention on Climate Change. This treaty was signed in 1992 at the Earth Summit in New York, and it came into force in 1994. It is the parent treaty of the 1997 Kyoto Protocol. A who's who among the COP21 commitments Elsa Wenzel Monday, November 30, 2015 So, you support a strong global agreement at the U.N. Conference of the Parties? You wantbusiness, NGOs, policymakers and every stakeholder you forgot to mention to unite for once and for all to save the world. Of course you do. Put your name in lights in the City of Lights for what some see as an ultimate peace conference. Such multilateral, international, never-before-scale-level of U.N. events hold so much promise. This is no Kyoto. This time will be different. We can only hope so. New private-sector alliances are formed — the names, the number of names and their pledges grand enough for you to bet on alow-carbon future. Yet just as you may need a Ph.D in the subject to understand an IPCC climate report, you need some policy (or better, PR) chops to read between the lines. Behind the talk of "strong" and "binding" "science-based" commitments is a serious lack of teeth for business. Nevertheless, many corporations are stepping in where nations may fail, maybe wielding the might of nations themselves. Among hundreds of corporations backing COP21 climate actions, few are trekking to Paris, instead backing blockbuster commitments or coalitions to represent them. Here are some of the bulkiest groups, in random order.
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Breakthrough Energy Coalition and Mission Innovation Microsoft co-founder Bill Gates is teaming up with more than 20 other billionaires — including Mark Zuckerberg of Facebook, Jeff Bezos of Amazon, Jack Ma of Alibaba and Richard Branson of the Virgin Group — to support clean energy efforts in both industrialized and developing nations.Gates pointed out in a paper that for R&D, U.S. industries in 2010 invested .23 percent of revenue on energy, a speck against 15 percent spent on IT. News of the alliance, to kick off today in Paris, broke over the weekend on GreenWire. The group pledged to invest "early, broadly, boldly, wisely and together" on energy generation, storage and efficiency; transportation;"industrial use" and agriculture. Also Monday, a pack of 20 countries from Australia to the United States (and even Saudi Arabia and the United Arab Emirates) vowed as Mission Innovation to "reinvigorate and accelerate" innovation, doubling their investments in clean energy R&D. World Economic Forum CEOs letter Last week 78 CEOs stepped forward to encourage a strong COP deal and a price on carbon. With names including ABB, Dow Chemical, Microsoft, Suez and Wipro Limited, they total more than $2.1 trillion in 2014 revenue. They volunteered to reduce their footprints, "act as ambassadors for climate action" and incorporate climate risks into decisions. You'll recognize some of the names, including IKEA and Unilever, among other commitments below. Indeed, some are already members of the WBCSD and Prince of Wales' Corporate Leaders Group on Climate Change. American Business Act on Climate Pledge Eighty-one corporations standing for $3 trillion in revenue are onboard with the American Business Act on Climate Pledge, up from the original 13 that signed on in July at the White House. They have the same goal you've heard early and often: support a pact "toward a
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low-carbon, sustainable future." From Abengoa Bioenergy to Xerox, they vow to reduce greenhouse gas emissions by as much as 30 percent over the next decade. The aims vary from one business to the next, with some, such as AT&T and Monsanto, making new steps. Other brands you may see more frequently on GreenBiz, such as Autodesk and McDonald's, are broadening their efforts or shooting specific bullet points. Levi Strauss, for one, aims by 2020 to drop greenhouse gas emissions by 25 percent at all locations, and to phase out any materials from old-growth forests from its supply chain. This bunch stands out for its "all-American" icons such as Apple, Coca-Cola, General Motors, Google, Kellogg, PepsiCo, Starbucks and UPS. The list goes on, but conspicuously absent are oil and gas brands (see OGCI below for non-U.S. names in that sector). We Mean Business This coalition trumpeted the support of 6 million companies in September. To narrow this down a bit, 412 companies and investors have committed to specific climate action ahead of COP. The list runs from 505-JUNK to Zenith Bank, with everyything from Honda to Salesforce in between. They must commit to one of seven big pledges: Science-based emissions goals; a price on carbon; 100-percent renewable energy; "responsible corporate engagement in climate policy"; reporting climate change details "in mainstream reports as part of fiduciary duty"; removing deforestation from supply chains by 2020; and reducing "short-lived climate pollution emissions." We Mean Business last week lobbied COP negotiators with eight demands for a climate compact. These include an international framework for carbon pricing, a requirement for nations to ratchet up commitments every five years and a net-zero emissions goal. RE100 What do we want? Renewable energy, 100 percent! When do we want it? By 2020! This goal to get 100 businesses onboard is led by the Climate Group and CDP. Le voilĂ , a firm goal and deadline!
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A dozen companies initially joined this pledge during Climate Week in September, sparked by IKEA and Swiss Re: BT; Commerzbank; FIA Formula E; H&M; KPN; Mars; Nestle; Philips; Reed Elsevier; and J. Safra Sarasin. The count is up to 39. (Notable exceptions are Apple and Google, which started down their own 100-percent renewables paths long ago.) Renewable Energy Buyers' Principles Within this partnership backed by the World Resources Institute and World Wildlife Fund, 43 companies ranging alphabetically from Amazon to Etsy to Volvo have joined since July 2014. Those signing the Renewable Energy Buyers' Principles invite utilities to help them achieve "30 million MWh of renewable energy demand" by 2020. In September these two groups inked an MOU to advance a strong COP21 deal and "build momentum for the transition to a low-carbon economy." GeSI stands for Global e-Sustainability Initiative and represents 30 information technology companies from Amdocs to ZTE.
GeSI and WBCSD
The World Business Council on Sustainable Development, formed around the 1992 Rio Earth Summit, is a CEO-led membership group
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of 200 companies, from 3M to Yokohama, and a heavyweight at COP21. Ceres Nonprofit Ceres is flexing some of the more muscular pre-COP21 announcements. It directs Business for Innovative Climate & Energy Policy (BICEP) and the Investor Network on Climate Risk. In May, with other groups, it released the Investor Platform for Climate Actions, which tracks progress by institutional investors (400+ so far, managing $25 trillion). In September Ceres got the biggest U.S. banks — Bank of America, Citi, Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo — to demand a strong COP21 deal and a price on carbon. In October it released a letter from 10 major food and beverage leaders, "pledging to accelerate business action on climate change and urging governments to do the same by forging a robust international agreement." They are Mars Inc., Unilever, Ben & Jerry's, General Mills, Dannon, Kellogg, Clif Bar, Nestle, Stonyfield Farms and New Belgium Brewing. Coca-Cola, The Hain Celestial Group, Hershey’s and PepsiCo piled on in November. American Sustainable Business Council This group speaking for 200,000 U.S. businesses says it fears that Congress will interfere when 192 countries meet in Paris. "Those in Congress who now oppose a binding agreement in Paris, might temper their position if a business-friendly scheme was on the table," the ASBC recently stated. It is sending Congress this letter to advocate binding emissions reductions goals with carbon pricing, as well as support for the American Clean Power Plan. The Climate Group — Compact of States and Regions This map of the Compact of States and Regions shows 20 governments promising to reduce enough carbon emissions by 2030
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to excel the 2012 output of the United States. The effort was assembled by the nonprofit Climate Group, which states, "It is exactly these 'non-state actors'— businesses, states and regions — that have a crucial role at COP21." The compact includes states from California to Catalonia, and various regions, with a population of 220 million around the world. C2ES Translate C2ES as the Center for Climate and Energy Solutions to find 14 big businesses calling for a climate pact that at minimum includes "all of the world’s major economies": Alcoa; Alstom; BHP Billiton; BP; Calpine; HP; Intel; Lafarge Holcim; National Grid; PG&E; Rio Tinto; Schneider Electric; Shell; and Siemens. C2ES called earlier in the fall for companies and countries to work together toward decarbonizing the world's economy and establishing a price on carbon. It also outlines these "essentials" to a climate agreement (PDF) that include "binding" international law. CEOS of OGCI: Helge Lund, BG Group; Bob Dudley, BP; Claudio Descalzi, Eni; Emilio Lozoya, Pemex; Josu Jon Imaz, Repsol; Amin Nasser, Saudi Aramco; EldarSætre, Statoil; and Patrick Pouyanné, Total. Oil and Gas Climate Initiative It's OGCI for short, and its 10 fossil fuel titans in October said they back an "effective" U.N. climate accord. It consists of BG Group, BP, Eni, PEMEX, Reliance Industries, Repsol, Saudi Aramco, Shell, Statoil and TOTAL. Who's missing? U.S. oil and gas companies. Does it matter? OGCI — which says it represents almost one-fifth of the world's oil and gas production and produces 10 percent of the world's energy — apparently thinks not. Additional goals: "Strengthen actions and investments" toward lowemissions energy and aid "clear stable policy frameworks" toward 2degrees Celsius. The CEO-led group aims to collaborate on R&D, efficiency and natural gas, as well as carbon capture and storage. There's no specific time frame, other than to "report regularly and consistently." 17
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International Council on Mining and Metals This London-based group of 23 mining CEOs issued a statement that they too, support a strong COP21 agreement and carbon pricing — as well as ramping up the use of renewables in operations, helping "our host communities" adapt to climate change, and integrating climate risks into planning. This seems to be uprooting the status quo, since it comes from the likes of Anglo-American, BHP Billiton, Glencore and Rio Tinto. Of course, they're not letting go of coal just yet, stating that the transition toward low-emissions coal technologies amid a low-carbon "energy mix...should recognise the importance of coal in the global economy, and particularly in the developing world." American Campus Act on Climate Pledge Colleges and universities can be mighty operations with supplychains, facilities and other sprawling sustainability concerns that parallel those of corporations and cities. In mid-November, 218 campuses across 40 states committed to encourage a strong COP21 climate deal, with more than half vowing to become carbon neutral. They run the gamut from Agnes Scott College to Yale University and total 3.3 million students. Want deeper details? Open this policy brief, "Climate Action outside the UNFCC," (PDF). Feel free to email me about this story at elsa@greenbiz.com.
Scientists welcome Paris climate pact but still alarmed PTI, Le Bourget (France), Dec 13, 2015
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ReutersThree environmentalists wear polar bear costumes as they take part in a demonstration near the Eiffel Tower in Paris, France Climate scientists have welcomed a pact to battle global warming as a major political advance, but warned of a gaping hole – the lack of a detailed roadmap for cutting greenhouse gases that cause the problem. The new accord, embraced by 195 nations, aims to cap warming to “well below” two degrees Celsius (3.6 degrees Fahrenheit) above preindustrial levels, and to “pursue efforts” to limit the increase to 1.5C. “This is an historic agreement,” said Steffen Kallbekken, director of the Centre for International Climate and Energy Policy. “But this ambitious temperature goal is not matched by an equally ambitious mitigation goal,” he said, using the scientific term for the drawing-down of heat-trapping gases. To have a two-thirds chance of limiting warming to two degrees, emissions would have to fall by 40-70 per cent by mid-century, according to the Intergovernmental Panel on Climate Change (IPCC), the UN’s climate science body. And to reach the 1.5C target also embraced in the newborn pact, those mid-century cuts would have to be even deeper: 70 to 95 per cent. Without these hard numbers – dropped from an earlier draft – the climate pact “does not send a clear signal about the level and timing of emissions cuts,” Kallbekken cautioned. Need to reduce CO2 output Many scientists highlighted the imbalance created by boosting the ambition of the temperature target on the one hand, while removing the yardsticks against which progress toward that goal could be measured, on the other. “How are we going to reach our objective unless we set out in the right direction?” asked Professor Bill Collins at the University of
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Reading in southern England, pointing to the need to slash CO2 output by 70 per cent before by mid-century. “Until governments accept this, we should restrain our optimism.” Keveh Madani, a professor at Imperial College London, said international summits were better at setting aspirational goals than laying out a pathway for achieving them. “What matters more is how to get to the target,” he noted. But scientific reality is unyielding, said Miles Allen at Oxford University. Stabilising greenhouse gases “in the second half of this century will require net carbon dioxide emissions to be reduced, in effect, to zero,” he said. “It seems governments understand this, even if they couldn’t quite bring themselves to say so.” Other scientists voiced concern about the fact that the new accord allows several years to pass before ramping up emissions reduction efforts. (This article was published on December 13, 2015
Editor’s Pick Why are oil and gas companies calling for more action on climate change? BY BOB DUDLEY, Wed Nov 11, 2015 This year many of us have increased our advocacy on this issue. And last month, companies responsible for a fifth of the world's oil and gas supply in the Oil and Gas Climate Initiative (OGCI) threw their support behind a new global agreement at the forthcoming UN talks in Paris.
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For oil and gas companies to take such a stance has been described as "unusual" -- and even "unprecedented". However, in fact, in BP we have publicly acknowledged the risk and have been working to address it since the 1990s. So why do companies that produce oil and gas want to see more done to tackle climate change? The first reason is simply that we want the planet to be sustainable in the future. We have the same hopes and fears for our children and grandchildren as anyone else. The second reason for our stance is that, being close to the issue, we have views on the realistic and affordable ways to make the transition to a lower carbon economy. And we can see that oil and gas are part of that transition. With the UN-led conference on climate change in Paris approaching, it's important that we explain our view. In BP, as we and several other companies made clear in a letter to the UN in June, we believe the best mechanism to drive a shift to a lower carbon future is to put a price on carbon. That can be done via taxes or by cap-and-trade systems. Either can be effective if wellconstructed. There are many ways to reduce carbon emissions: greater energy efficiency, renewable energy, gas displacing coal, carbon capture and storage, nuclear power and many others. Of these, energy efficiency is generally viewed as being "good for all seasons", whereas the rest have their supporters and their detractors. The benefit of a broad-based, well-designed carbon price is that it encourages improvements in energy efficiency as well as shifts in the fuel mix. In terms of the fuel mix, a carbon price makes all of the lower carbon alternatives more competitive -- and in each particular situation the most economical options will emerge. This is vital when the technologies need to be deployed at massive scale and affordability is key. 21
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KEEN TO COMPETE A price that treats all carbon emissions equally, whether from a refinery smokestack or car tailpipe, will make our operations and products more costly in some cases. We accept that. If it has the same impact on everyone, we are keen to compete. A carbon price creates opportunities as well as risks. Others take different views. Some call for the rapid phasing out of fossil fuels now. Some ask shareholders to sell their fossil fuel holdings, arguing that some reserves are effectively "unburnable" or some company assets "stranded" if the world is to limit the global temperature rise to the widely recognized goal of 2 degrees Celsius on pre-industrial times. Others ask us to switch investment wholesale from oil and gas to renewable energy. These are passionately held views that deserve a response. To start on common ground, we agree that if all the world's fossil fuel resources were burned, the temperature rise would exceed the 2 degrees threshold. To put the resource issue into perspective, society has so far consumed the equivalent of around two trillion barrels of oil and gas and we estimate that there are still more than 40 trillion barrels worth in the world's reservoirs. So there is clearly far more oil and gas out there than we can burn if we are to have a sustainable future. As Sheikh Yamani famously observed, the Stone Age did not end because we ran out of stones and it will be the same with fossil fuels. However this does not mean that we should stop using all fossil fuels now, even if we could. STARTING POINT To devise a workable route forward we need to understand the starting point -- and particularly the scale of the world's reliance on fossil fuels. Today the world uses the equivalent of around a quarter of a billion barrels of energy every day. Of that, 32 percent of energy comes from 22
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oil, 30 percent from coal, and 24 percent from gas -- so 87 percent from fossil fuels in total. That means, 7 percent comes from hydroelectricity, 4 percent from nuclear power and 3 percent from other renewables, including wind and solar power. This global energy system, with its huge reliance on hydrocarbons, has evolved over two centuries as societies have used fossil fuels to support the world's growing population and raise global living standards. Global energy needs to continue to play that role over the next 50 years, as some of the world's poorest countries grow and hundreds of millions of people are lifted out of fuel poverty, but it needs to do so in a sustainable and safe manner. This energy system which underpins modern life and human development cannot be dismantled overnight. Fortunately, that's not only impossible, but unnecessary. Studies such as the widely cited International Energy Agency's '450 scenario' show that oil and gas can and will be part of the journey to a more sustainable future. That scenario envisages a future energy mix where the concentration of greenhouse gases in the atmosphere stabilizes at 450 parts per million and the global temperature rise is kept to 2 degrees and emissions in 2040 are around 40 percent down on 2013. However, in that scenario the total consumption of energy still grows, by 12 percent to 2040, and oil and gas still make up almost half of the energy used. AFFORDABLE TRANSITION While we cannot be complacent, the world can make an orderly and affordable transition to a low-carbon economy. And there are several means to that end. The road to sustainability has several lanes. The first is energy efficiency -- reducing emissions by using energy more effectively. A carbon price would encourage smart buildings, 23
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advanced industrial plant, home insulation, higher fuel economy and the myriad of other ways to use energy more efficiently. There is plenty of potential here. Europe has been a leader in energy efficiency but the U.S., China and others are catching up. This can account for around half of the emissions reduction required, according to the International Energy Agency. Our industry has an important part to play in this, particularly by providing products that promote fuel economy in vehicles. Second, gas is very much part of the solution because it emits around half the carbon of coal when used to generate power. So replacing coal with gas in power stations can make a massive difference, given that coal is the largest source of energy-related emissions. Switching just 1 percent of power generation from coal-fired plants to gas-fired ones would cut global CO2 emissions as much as increasing renewable energy capacity by 11 percent -- and do so rapidly and economically. A tonne of emissions saved by switching from coal to gas is just as effective as one saved by switching from fossil fuels to renewables. A third route towards lower emissions is of course renewable energy. For the future, it is important to build the renewable sector from today's low level. The issues to overcome are that renewables are starting from a low base and currently cost more than energy from fossil fuels. Renewables are growing fast, but where they have been deployed in large volumes, it has largely been thanks to government subsidy. Again, a carbon price would change the picture -- it would narrow the gap between costs of renewables and fossil fuels and stimulate companies to invest in the research and development needed to make renewables more competitive.
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ENERGY MIX So the transition to a more sustainable future is one where the energy usage shifts over time towards a lower carbon blend. It will involve greater energy efficiency, significant growth in use of renewables and gas gaining share from coal in the power sector. Fossil fuels have driven our economies and built prosperity in societies for two centuries in which we have seen life expectancy double, living standards rise and technology change and enhance our lives. They provide the energy that fuels our vehicles, powers our homes and lifts millions out of poverty. Everyday objects from plastics to fabrics are derived from the petroleum chain. While we do need to make the transition to a lower-carbon world, it can be an orderly transition; and many oil and gas companies are keen to work with governments and others to help make that transition happen. It is also worth noting that oil and gas companies' reserves are typically produced over around 10-15 years, a timeframe within which we can respond to changes in policy to avoid any assets being "stranded". In BP we want to be part of a solution that will work. Already, we are increasing the ratio of gas to oil in our portfolio from 50/50 towards 60/40. We have a large biofuels business in Brazil and enough wind turbines to power a city the size of Munich. We are pursuing greater energy efficiency in operations and providing increasingly energy-efficient products to customers. We want to do more and a carbon price would enable us to do that. 25
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We all share a responsibility to solve this problem together -- every one of us who drives a car, heats a home or uses a mobile phone. We look forward to the conference in Paris, and to the opportunity to work together as a society to build a sustainable future. (Bob Dudley is Chief Executive of BP. Ahead of a critical conference on climate change in Paris at the end of the month, Dudley explains the role oil and gas companies can play in the transition to a lower carbon future. The opinions expressed here are his own.) (Editing by Karolin Schaps and David Evans)
Make in India Make it work Dec 04 2015, FC Make in India makes sense if it delivers benefits to citizens, not companies Even as we celebrate the increasing commitment of several multinational companies and foreign firms to engage with ‘Make in India’, we need to centre stage some basic truths that get lost in our enthusiasm. One, ‘Make in India’ only makes sense if it delivers benefits not to the companies that make, but to the citizens for whom it is made. Two, ‘Make in India’ really implies that we develop indigenous capacity to solve most of our problems, if not that of others, as well. For this to happen, ‘Make in India’ has to conceptually evolve from its present focus on isolated product production to designing mature ecosystems. A good illustration of this is offered in the medical sector. ‘Make in India’ talks about biotechnology and wellness, but the two are not related and the idea of health care simply does not exist. ‘Make in India’ is an opportunity to encourage local manufacturing of medical devices, a large bulk of which is imported, especially that which is critical for patient treatment and survival.
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But the benefit of making medical equipment in India will accrue to the patient only if itscontextualised, affordable and if it is supported by appropriate infrastructure, human resources and skills. Consider life support systems, like ventilators. It is important to make them in India, but it is equally important to design health infrastructure with proper protocols that support the functioning of ventilators, which otherwise can cause problems like ventilator-associated pneumonia that can be fatal. There is also the need for skilled human resources and ‘Make in India’ needs to couple closely with skilling India. ‘Make in India’ also means taking pride in what we have made indigenously. This can only happen if independent regulatory authorities enforce quality standards. The health sector again highlights the problems of making in India, as in the absence of an independent regulatory authority, substandard equipment ‘made in India’ can get foisted on unsuspecting patients. It also argues for moving from the present level of simply assembling locally to tapping opportunities for more customised R&D and incentivising research through increased investments. The example from the health sector highlights the need for nudging ‘Make in India’ from a bouquet of schemes focussing solely on individual product manufacturing to becoming a platform for sectoral and more importantly intersectoral integration and convergence of resources into ecosystems. ‘Make in India’ has to try to make health systems that make India healthy, not just make health equipment where the real stakes are held by a healthily profiting company.
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Govt proposes revenue-sharing model for future gas auctions It has also provided pricing and marketing freedom for the natural gas Press Trust of India | New Delhi November 16, 2015 L A technician opens a pressure gas valve inside the Oil and Natural Gas Corp (ONGC) group gathering station on the outskirts of Ahmedabad With current rates considered too low to support exploration and production cost, the government today proposed to free natural gas pricing as well as replace the controversial Production Sharing Contract (PSC) with simpler revenue-sharing regime for all future field auctions.
In September, the government had allowed pricing freedom for the gas produced from 69 small and marginal fields it plans to auction shortly. "In the recently announced marginal field policy, the government has provided pricing and marketing freedom for the natural gas. On similar lines, it is proposed to provide pricing and marketing freedom for the natural gas to be produced from the areas to be awarded under the new contractual and fiscal regime in order to incentivise production from these areas," the Oil Ministry said today. 29
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Seeking to revive interest in oil and gas exploration by simplifying rules, the ministry today invited comments from stakeholders on a consultation paper on new fiscal and contractual regime for award of hydrocarbon acreages. International players like BP and private operators including Reliance Industries as well as state-owned Oil and Natural Gas Corp (ONGC) have been seeking pricing freedom as the current rates make new investments unviable. The BJP-led government had in October last year approved a new pricing formula for all domestically produced natural gas. As a result, rates rose by about 33% to $5.61 per million British thermal unit for a period up to March 31 from the long-standing price of $4.2. The rates, on net calorific value (NCV) basis, dropped to $5.05 per mmBtu for six month period beginning April 1, 2015. From October 1 rates fell to $4.24. "Government of India has been reviewing policies from time to time for exploration activity and investment there in. Over the years, there has been a shift in the E&P policy, from nomination acreage to competitive bidding... Recently government has approved policy for auctioning of 69 marginal fields of ONGC/OIL. Government has attempted many reforms in the E&P management through this policy in tune with government's goal of 'ease of doing business'," the notice said. The ministry proposed a Uniform Licensing Policy that will allow exploitation of all forms of hydrocarbons - conventional oil and gas as well as unconventional shale oil and gas and coal-bed methane (CBM) under one permit. At present, conventional oil and gas exploration is covered by the New Exploration Licensing Policy (NELP) while CBM exploration and production is governed by a separate regime. There is no licensing regime for shale oil and gas. 30
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It also proposed Open Acreage Licensing Policy (OALP) allowing companies to choose the area for exploration rather than government identifying blocks and offering them in bid rounds.
Mr Pradhan reviews CNG infrastructure status in Delhi BY BUSINESSLINENEW DELHI, DECEMBER 5: Minister of State (Independent Charge) for Petroleum and Natural Gas Dharmendra Pradhan has directed officials to coordinate with land owning agencies of the Central Government to set up more CNG stations in New Delhi. Pradhan also directed the Petroleum and Natural Gas officials to take up the issue of rationalising excise duty on CNG with the Ministry of Finance immediately. Pradhan, chaired a meeting on Saturday to review the current status of CNG infrastructure in Delhi. During the discussions, Indraprastha Gas Ltd apprised the Minister that IGL has adequate capacity to immediately cater to an additional demand for CNG upto the extent of 100 per cent of the existing supply. Pradhan also asked IGL to explore all options to further promote usage of CNG in all segments to curb down emissions and bring down pollution levels, such as increasing the number of CNG stations, incentivising CNG refueling during non-peak hours and to explore various possibilities for incentivising CNG kit conversion.
RIL faces 40% cut in marketing margin on KG-D6 gas Oil Ministry has issued a Gazette notification fixing the levy at a maximum of Rs 200 per thousand scm Press Trust of India | New Delhi November 29, 2015
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Reliance Industries is facing a 40 per cent cut in the marketing margin it charges on selling its KG-D6 gas to fertiliser and LPG plants after the government notified a ceiling of Rs 200 per thousand standard cubic meters (scm). RIL was charging $0.135 per million British thermal unit (mmBtu) as margin to hedge marketing risks on sale of its eastern offshore KG-D6 gas. This is over and above the gas price of $4.24 per mmBtu. Pursuant to the Cabinet decision of November 18, fixing a maximum marketing margin that firms can charge on selling all domestically produced natural gas to fertilizer and LPG plants, the Oil Ministry has issued a Gazette notification fixing the levy at "a maximum of Rs 200 per thousand scm (on Net Calorific Value of 10,000 Kcal/scm)." The marketing margin being fixed at NCV basis on 10,000 kilocalorie (Kcal) will at current foreign exchange rate translate into a levy of $0.79-0.8 per mmBtu, ministry officials said. Had the government fixed the margin at 8,300 Kcal, the margin would have come to $0.85 per mmBtu. Marketing margin charged on gas produced from state-owned Oil and Natural Gas Corp's (ONGC) fields is Rs 200 per thousand scm and will not be changed following the notification. But for RIL, there will be a 40 per cent cut as all of its 11-12 million standard cubic meters per day of KG-D6 gas is sold to fertiliser plants.
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The "decision will be effective from the date of Cabinet approval, that is, November 18, 2015," the notification said. The Oil Ministry had in December 2013, gave freedom to gas retailers including RIL and GAIL (India) to fix the marketing margin they want to charge on sale of natural gas to consumers other than urea manufacturing units and LPG plants. It had decided that the government needs to regulate the marketing margin for supply of domestic gas to urea and LPG producers, as the same had implications on the government's subsidy outgo. Both urea and LPG are subsidised. GAIL markets gas produced from ONGC fields. Sector regulator Petroleum and Natural Gas Regulatory Board (PNGRB) was asked to suggest the marketing margin for the same. PNGRB recommended the range of Rs 150-200 per thousand scm. "In future, escalation in the limit of marketing margin up to Wholesale Price Index (WPI) may be done by the Ministry of Petroleum and Natural Gas itself. The escalation would be subject to the upper limit of WPI inflation prevailing at relevant point of time," the notification said. For escalating the marketing margin beyond this limit, the Ministry "would require the approval of Cabinet through Department of Expenditure," it added.
Cairn moves court on Barmer contract extension, oil price NAVADHA PANDEY, BL, December 15 2015 MAYANK ASHAR, MD & CEO, Cairn India Cairn India has approached the Delhi High Court seeking early decisions on the extension of its Rajasthan block (RJ-ON-90/1) production sharing contract (PSC). It has also sought fair pricing for its 33
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crude. Both these issues are presently pending with the government. Said Cairn India CFO Sudhir Mathur: “At present, we are only going ahead with investments which are feasible till 2020. Making investments for stakeholders does not make sense without PSC extension.” He added that shareholders will not approve investments beyond 2020 unless there is clarity on the PSC extension, as oil and gas is a capital intensive business and returns happen over six-seven years. Cairn is carrying out 3D seismic activity and finishing appraisals but not taking up new exploration, Mathur told reporters in Barmer. The Rajasthan block is an acreage awarded prior to licensing rounds. The contract was signed in 1995, and Cairn acquired 100 per cent in the block from Shell in 2002. After the first oil discovery was made in 2004, ONGC came in as a partner. Today, Cairn holds 70 per cent and ONGC, 30 per cent. In April 2013, Cairn made an application to the Petroleum Ministry for PSC extension. The existing contract expires on May 14, 2020. Though the PSC of the block clearly mandates unconditional extension for five years, and 10 years in case of expected production of natural gas, it also says the extension will be on terms mutually agreed upon between the two parties. While the Ministry is inclined towards an extension it wants the PSC to be tweaked at least where financial benefits are concerned. However, Cairn is clear that the mutually agreed terms cater to how the joint venture partners will classify reserves and means to increase production. “It does not mean changing the terms of the PSC, if the extension is for up to 10 years. The contractor is also eligible for subsequent indefinite extension on mutually agreed terms,” a Cairn official said. Cairn has also been pushing the government to review the Rajasthan oil fields price formula. Said Cairn India MD & CEO Mayank Ashar: “The crude that we make is of very good quality. It can be sold at a much higher price in the market.”
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India needs Rs 9 lakh crore energy investment annually till 2040 to meet demand: IEA ET Bureau Nov 28, 2015 NEW DELHI: India needs more than Rs 9 lakh croreinenergy investment annually for the next 25 years to meet the nation's energy demand, which will be the largest contributor to the global demand by 2040, International Energy Agency (IEA) has said. "India's energy transformation requires three things: investment, investment and investment," said IEAexecutive director FatihBirol, while launching the India Energy Outlook 2015. "A lot is being done already to overhaul the energy regulatory system and get the incentives in place; this is vital, as India will need to call upon a wider range of investors and sources of finance than it has in the past."
Govt advances roll out of BS-V, BS-VI norms for 4-wheelers The Ministry of Road Transport & Highways has issued a draft notification advancing the date by 3 years for implementation of BS-V and BS-VI norms for four wheeler category. NEW DELHI, NOV 28: The government today said it has advanced the date for implementation of the roll out of Bharat Stage (BS) stage V and VI norms for four-wheelers by 3 years. “Ministry of Road Transport & Highways has issued a draft notification for implementation of BS—V and BS—VI norms for the automobile sector, covering four wheeler category. The ministry has decided to 35
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advance date for implementation of the higher level emission standards,” an official statement said. According to the roadmap earlier laid down by the Auto Fuel Policy, BS-V norms were to implemented from April 1, 2022 and BS-VI from April 1, 2024, it added. “However the Minister of Road Transport & Highways is keen that the road transport sector should take a lead role in reducing the harmful effects of emissions on environment and climate change,” the statement said. Accordingly, the ministry has decided to implement BS-V norms from April 1, 2019. BS-VI norms, which aim at substantial reduction in NOx/4C level will be implemented from April 1, 2021, it added. This reflects a firm commitment to play a major role in reducing vehicular emissions. Draft norms for two- and three-wheeler categories will be notified shortly with advanced timeline similar to the four wheeler category, it added.
Decrease dependence on dollar By Businessline, 16 November, 2015 LOKESHWARRI SK Invoicing for external trade and borrowings must move to rupee The rupee has been losing ground rapidly against the greenback in recent times, much to the dismay of all. But while the Indian currency is down close to 8 per cent against the dollar since last Diwali in 2014, it has gained almost 9 per cent against the euro and 6 per cent against the Japanese yen in the same period. In fact, in the early part of 2015, the Reserve Bank of India had a tough time keeping the rupee from 36
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appreciating too much. The currency had been a beneficiary of falling crude prices, improving current account deficit and falling inflation. But despite the fundamental strength in the rupee, it has been weaker against the dollar that has been racing higher on hopes of a Fed rate hike. This relative weakness of rupee against the dollar has been hurting our economy due to the predominance of the dollar in our external transactions. Latest data on external debt shows that 58 per cent of the country’s borrowing is denominated in US dollar. The share of dollar denominated debt has increased close to 5 percentage points since the end of 2010. Loans in yen account for a meagre 4 per cent of the country’s borrowing and euro loans have an even smaller share at just 2.4 per cent. If we consider currency-wise invoicing of external trade, the numbers are even worse. Latest data available from the RBI shows that more than 80 per cent of the invoicing for the country’s imports and exports is done in US dollars. There is no doubt that the country needs to increase non-dollar invoicing in external trade and shift borrowings to currencies other than the dollar, preferably the rupee. Policy-makers are aware of this need and the share of debt denominated in rupee is up from 19 per cent towards the end of 2010 to 27 per cent now. Moving away from dollar to rupee denominated transactions not only helps dealing with currency risk but also takes the country one step further towards internationalising the currency.
Investor sues Oilex for holding back information By PTI | 16 Nov, 2015, NEW DELHI: Oil firm Oilex has been sued by one of its investors over the Australian firm's failure to disclose default by Gujarat government firm GSPC in paying its share of expenses in the Cambay oil and gas block. Zeta Resources last week filed a case in the Federal Court of Australia, claiming that Oilex failed to disclose that its Indian joint venture partner Gujarat State Petroleum Corp (GSPC) has been in default in paying cash calls, the Australian firm said in a regulatory filin ..
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Read more at: http://economictimes.indiatimes.com/articleshow/49802764.cms?prtp age=1&utm_source=contentofinterest&utm_medium=text&utm_camp aign=cppst
India O&G Statistics
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Petroleum Minister addresses the 6th Asian Ministerial Energy Roundtable in Qatar Shri Pradhan addressing the 6th Asian Ministerial Energy Roundtable The Minister of State (I/C) for Petroleum and Natural Gas, Shri Dharmendra Pradhan visited Doha, Qatar on November 9-10, 2015 to attend the 6th Asian Ministerial Energy Roundtable, which was organized by Governments of Qatar and Thailand in association with the International Energy Forum. The Roundtable was attended by Energy Ministers and highlevel delegations from twenty Asian countries and Heads of six international organizations. Addressing the roundtable on “Oil markets: a new normal or just another cycle, and what it means for Asia”, Shri Pradhan emphasised upon the need for Oil suppliers to make serious efforts for a sustainable Responsible & Reasonable Pricing, so that “Energy Poverty” gives way to “Energy Justice” in countries like India. He also shed light upon the need for transparency and balance to make that fiscal positions are not unduly stretched due to rising prices for a country like India. Restating the demand to end charging “Asian Premium” and provide “Asian Dividend” instead, he also suggested developing mutual investment linkages for large market buyers and seller for greater stability in the Oil Market.
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Towards the end, Shri Pradhan invited the participating nations to invest in the Indian Oil & Gas sector and expressed India’s willingness to invest the entire value chain of oil and gas in their countries. Shri Pradhan was accompanied by Ambassador of India to Qatar, senior officials of MoPNG and CMDs/MDs of IOC, GAIL, EIL and Petronet LNG Limited.
Challenge of low prices, an opportunity to upscale production: Dharmendra Pradhan Petroleum Minister Shri Dharmendra Pradhan inaugurated the three day SPE Oil and Gas International Conference organized by the Society of Petroleum Engineers in Mumbai on November 24th, 2015. Addressing the gathering Shri Pradhan talked about turning the challenge of low oil prices into an opportunity to upscale production, as the low oil prices have also resulted in decreasing the cost of exploration. He talked about various policy initiatives of the Government like uniform licensing policy, pricing and marketing freedom and easy to administer revenue sharing models, in reference to the conference theme of “Converting Resources into Production”. Shri Pradhan also laid emphasis on taking exploration of sedimentary basins as top priority as only half of India’s sedimentary basins have been explored and the remaining half hold great potential. This would greatly contribute towards honourable Prime Minister’s vision of curbing India’s imports by 10% by 2022. Other dignitaries at the event included Mr. K.D.Tripathi, Secretary MoPNG who spoke about usage of unconventional sources like shale oil and gas, CBM, Gas Hydrates etc and Mr. U.P.Singh Additional Secretary MoPNG who shared the interventions of the government in increasing the exploration activity like Pre NELP, NELP and subsequent new formula for gas pricing, policy on marginal fields, 40
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uniform licensing policy, freedom of pricing, open acreage policy and the active role of Maximum Government and Minimum Governance. Also present at the event, Shri D.K. Sarraf CMD, ONGC, emphasized on the need for resilience in financial, operational and portfolio management to stay afloat in the current market scenario. He stressed on the need for innovative approach and stressed on the need to monetize the marginal fields, managing the deepwater, and reversing the tide.
Petroleum Ministry to fix gas marketing margin The Union Cabinet chaired by Honourable Prime Minister Shri Narendra Modi has taken a major step forward in reforming the Oil & Gas Sector by allowing the Ministry of Petroleum & Natural Gas to determine marketing margins for supply of domestic gas to Urea and LPG producers. Marketing Margin is the charge levied by gas marketing company on its consumers over and above the cost of gas for taking on the additional risk and cost associated with marketing gas. Currently, different transporters are charging different marketing margins for supply of natural gas. As an outcome of this decision, there would be homogeneity in the marketing margin on domestic gases charged by gas marketers for the regulated sectors, namely, Urea and LPG. Further, there would be a reduction in marketing margin paid by Urea and LPG producers and the new rate would be fixed on “non-discretionary basis�. The issues regarding variations in marketing margins were looked into by the Petroleum & Natural Gas Regulatory Board (PNGRB) and the marketing margin finalized on November18, was based on the recommendations of PNGRB. This decision aims to bring clarity in the process and build a platform for future investments in gas infrastructure sector.
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OVL might get rights to $5 billion Iran gas field By Subhash Narayan Dec 07 2015 , New Delhi Iran not expected to invite fresh bids for Farzad-B gas field disregarding OV's claim The ONGC Videsh-led consortium of Indian companies may finally get the $ 5-billion worth rights to develop Farzad-B gas field in Iran, located in offshore Farsi block that holds about 12.8 trillion cubic feet of recoverable gas reserves. Production of gas from this block would go a long way in addressing energy shortage in India as the reserves could be brought through shipping lines as LNG (liquefied natural gas). Sources privy to the development said India’s continuous engagement with Iran has changed things positively as the latter is now inclined to offer the block to OVL-led consortium. “We can close a deal with Indians if the two sides agree on a contractual model and the method of gas supply or marketing,” Saeed Hafezi, managing director of the Iranian Offshore Oil Company, was quoted as saying by Mehr News Agency of Iran. ONGC chairman & MD DK Sarraf said that Iran was not expected to invite fresh global bids for Farzad-B gas field disregarding OVL’s claim and indicated positive outcome from ongoing talks. A consortium of ONGC Videsh (OVL), Oil India (OIL) and Indian Oil Corp (IOC) had discovered 12.8 trillion cubic feet of gas reserves in the Farsi block in 2008. The discovery was named Farzad-B. While OVL and IOC hold 40 per cent interest each in the block, the remaining 20 per cent is with OIL. But the Indians firms were forced to put the project on backburner after the US and the EU imposed sanctions against Iran. But the pact between Iran and the six world powers last July has cleared the way 42
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for easing of sanctions and India getting back the project. Iran had asked for a plan for developing the field as well as options for taking the gas. In the absence of a concrete development plan, Iran last year listed the block to be put under auction. There were reports that the Iranian reserves are attracting big oil firms like Total SA, Eni, BP and Royal Dutch Shell. But Iran again showed its interest of working with India last month as it didn’t list Farzad-B gas field among the 52 projects introduced to international firms at a major conference in Tehran. Moreover, OVL led consortium could further pump in investments in the field. The companies have already spent $90 million on exploration of the gas field.
ONGC, OIL, Cairn ask govt to cut cess on crude By PTI , New Delhi State-owned oil producers ONGC and Oil India as well as private sector player Cairn India have asked the government to cut cess on crude oil they have to pay in view of slump in prices. The producers want the government to levy ad-valorem rate of cess which will result in higher payouts when prices are high and lower payout when rates fall. Currently, ONGC and OIL pay a cess of Rs 4,500 per ton on crude oil they produce from fields given to them on nomination basis. Cairn has to pay the same cess for oil from Rajasthan block. Their association, PetroFed last week wrote to Revenue Secretary Hasmukh Adhia and Oil Secretary KD Tripathi seeking levy of 8 per cent cess on price of crude oil realised. The Oil Industry (Development) Act, 1974 provides for collection of cess as a duty of excise on indigenous crude oil. Cess incurred by 43
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producers is not recoverable from refineries and thus forms part of cost of production of crude oil. The cess was levied at Rs 60 per tone in July 1974 and subsequently revised from time to time. "During 2005-06, when the crude oil prices had increased from an average of $40 per barrel to $60 per barrel, OID Cess was increased from Rs 1,800 to Rs 2,500 per ton from March 1, 2006. "Again, when the crude oil prices increased to over $100 per barrel, the rate of cess was increased by Government to Rs 4,500 per ton ($10 per barrel) with effect from March 17, 2012," PetroFed wrote. It said the government had effectively linked the cess rate to prevailing crude oil prices in the past. "The crude oil prices have not been for sometime around $40 to 50 per barrel while the cess continues at the same rate as prevailing when crude oil was around $100 per barrel. In a low crude oil price regime, cess imposes a significant economic burden on producers," it said. The producers said the current cess rate constitutes about 20 per cent of the oil price, which has severely impacted several small discoveries and marginal fields making many of the projects unviable. In the low oil price environment several countries including UK, US, Colombia, Russia and China have changed fiscal systems to increase production and promote investments. "It is, therefore, submitted that there is an urgent need to reduce the rate of cess in parity with prevailing crude oil prices. Keeping in view the volatility in crude prices, it would be prudent that OID Cess may be levied at ad-valorem basis linking it to the realised crude oil prices which would be about 8 per cent of the same," PetroFed said. This, it said, would provide some predictability to oil producers and 44
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would also be in line with the historically followed policy by the government. Most of crude oil produced in India comes from pre-NELP and nomination blocks and is liable for payment of cess. While New Exploration Licensing Policy (NELP) blocks like Reliance Industries' KG-D6 area are exempt from payment of cess, pre-NELP discovered blocks like Panna/Mukta and Tapti and Ravva pay a fixed rate of cess of Rs 900 per ton.
RIL Pips ONGC, regains top slot in Platts global ranking By PTI Oct 28 2015 , New Delhi Reliance Industries has regained the top slot among Indian energy companies on the Platts global list by surpassing state-owned Oil and Natural Gas Corp (ONGC) in the rankings for this year. In all, 14 Indian energy companies made it to the 2015 Platts Top 250 Global Energy Company Rankings, a financial performance roster of publicly traded companies with assets greater than $5 billion. State-owned hydroelectric power generator NHPC Ltd was a new entrant from India at rank 221, Platts said in a statement. "RIL, which was pushed to the No. 2 position in 2014 by ONGC, not only regained its premier slot among Indian energy performers, but has also moved significantly higher relative to its overall global ranking last year," it said. The company improved its overall ranking to 14 from 22 in 2014. ONGC too improved its position to 17 from 21 previously. "The largest pure coal mining company in the world, Coal India, has climbed to 38th place in the rankings this year from 47th place last year. "The state miner's challenge has been keeping up with strong internal demand and achieving the coal ministry's ambitious extraction
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targets. Coal India replaced Indian Oil Corp for the No. 3 position this year, among India companies," it said. NTPC was the fourth highest ranked Indian company at number 56, followed by Bharat Petroleum Corp Ltd (59) and Indian Oil Corp (66). IOC was ranked 43rd in 2014. Gas utility GAIL India Ltd which was ranked 97 in 2014, slipped to 120th position, while Cairn India Ltd slipped to 139 from 104. "With the first-time showing of NHPC Ltd in the Top 250 Rankings, India scored a personal best in representation, with 14 energy companies on 2015 list, versus 13 a year ago," the statement said. Rankings are based on assets, revenues, profits and return on invested capital for the prior fiscal year. Global giants Exxon Mobil Corp, Chevron Corp and Royal Dutch Shell plc occupied the top three slots while Chinese firm CNOOC Ltd for the first time broke into top five at No.4. PetroChina was a close fifth. "Not one, but two Chinese energy giants, CNOOC Ltd and PetroChina Company Ltd, moved into the Top 5 for the first time since the rankings began in 2002. The state-backed companies have rivalled Big Oil of the West for years, with PetroChina having appeared in the Top 10 for 11 years, and CNOOC Ltd hovering in the 13th and 12th spots for the last several years," Platts said. India, the second largest Asian demand powerhouse, saw its energy consumption hit an all-time high. With the fastest growth in energy consumption for the last five years, more coal, LNG and oil were required. "However, most Indian energy companies saw their growth rates ebb. Only two firms - Power Grid Corp and Essar Oil - placed on the list of top 50 fastest growing companies this year, down from seven a year ago," Platts said. Power Grid Corp of India, ranked 129th globally, is the fastest growing Indian energy company and over the last two years (No. 142 in 2014, No. 139 in 2013) has made significant gains in their rankings.
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GlobeScan
Collaboration needed to tackle Middle East's ageing structures Adapted from a press release by Louise Mulhall Published on 11/11/2015 Constraining operational expenditure (opex) is vital to economically viable operations, according to AnupamGhosal, newly appointed regional manager for Middle East and India, DNV GL - Oil & Gas. “Of the 700 to 800 fixed platforms and bridges in the region, we believe more than 70% are older than 25 years and some even exceed 40 years. The United Arab Emirates (UAE) alone has about 450.” The structural integrity management challenge is complex and critical for many operators seeking to extend the economic life of assets. Life extension of ageing structures needs to ensure continued operation within regulatory requirements, and to limit future opex. Life extension a priority “Life extension of ageing structures and assets is moving firmly up the agenda for oil and gas operators in the Middle East,” says Ghosal. “Collaboration, joint innovation, best practice sharing and research, such as for CO2 injection for enhanced oil recovery, are prerequisites for smarter lifetime extension projects.” AnupamGhosal joined DNV GL’s Abu Dhabi office in April 2010. He brings more than 23 years of industry experience and led the Verification and Asset Integrity Management unit with Noble Denton marine assurance and advisory services up until the DNV GL merger in September 2013.
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DNV GL is engaged with several customers in the region to implement controlled approaches to asset integrity management and structural integrity management systems. The company’s software, database, quantitative and qualitative approaches, and other expertise in capturing, analyzing and managing information for structural integrity management assists customers to scope, design and implement effective life extension strategies. The company’s ‘missing data methodology’ addresses the absence of historic documentation, a common challenge for operators in the region. “We persistently endeavor to understand the challenges of our industry in this region and we are already playing a central role with a number of major operators,” adds Ghosal. “Our aim is to develop cohesive and cost-effective strategies to attain life extension of ageing assets and secure the economic benefits it brings.” Benchmarker in industry practice “In our 38 year presence in the region, we have built a strong position in the market founded on trust and competent delivery, while setting the benchmark in industry best practice and offering access to more than 300 standards and recommended practices.” In the oil and gas sector, DNV GL has advanced from having the majority of the offshore pipelines in the UAE being designed and certified to DNV GL standards to currently being engaged in ALL the major offshore projects in Abu Dhabi. The company is currently working with a number of major operators to provide Technical Integrity Verification services and in-service inspection. DNV GL will be exhibiting and presenting at ADIPEC at Stand 8921 in Hall 8.
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Iran offers 50 oil projects to foreign investors By BusinesslineDUBAI, NOV 28: Iran offered on Saturday about 50 oil and gas projects to be developed by foreign investors with local partners under a new scheme it hopes will initially generate $25 billion in investments, state media reported. Iran reached a deal with world powers in July, under which sanctions will be lifted in return for it scaling down its nuclear programme. It has outlined plans to rebuild its main industries and trade relationships following the agreement, targeting oil and gas projects worth $185 billion by 2020. Some 135 energy companies attended a conference in Tehran to hear the terms of a new energy contract - which it calls its integrated petroleum contract (IPC). "The estimate is that if we can draw about $25 billion (in foreign investments) in a first phase, that would be a very good figure," Oil Minister BijanZanganeh told reporters in remarks carried by state television. Iran needs Western oil companies to help revive its aging oilfields and develop new oil and gas projects and the new oil contracts are part of its drive to attract Western investors. British Petroleum, France's Total, Norway's Statoil, China's Sinopec, Shell, Italy's Eni and Spanish oil major Repsol were among companies attending the conference, the oil ministry's website Shana reported. Zanganeh repeated that U.S. companies would also be allowed to participate in IPCs, under which foreign investors should have local partners and commit to technology transfer.
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"The current (crude oil) prices and even less will not create a problem for the projects' reimbursement or profits because of low finished cost in our industry," Shana quoted Zanganeh as saying, adding that Iran's production cost was $10 per barrel. The price of oil has fallen to around $45 per barrel from as much as $115 in the middle of last year. Iran's output is down one million barrels per day at 2.7 million bpd since the start of 2012 when sanctions were imposed.
BG starts commercial operations on second QCLNG train in Australia BG Group has started commercial operations from the second train at its Queensland Curtis LNG (QCLNG) plant. QGC, BG Group's Australian subsidiary, has also assumed control of Train 2 from Bechtel Australia, which built the facility. BG Group now has full control of both LNG trains and associated facilities at QCLNG. By mid-2016, the integrated project is expected to reach plateau production, producing enough LNG to load around 10 vessels per month combined, which is equivalent to exporting around 8 MMtpy. Since starting production in December 2014, 71 cargoes have been shipped. The partners in Train 2 are BG Group (97.5%) and Tokyo Gas (2.5%), which is also a foundation customer. "As we assume full control of the entire QCLNG plant, we remain focused on managing the facility safely and responsibly,” said Helge Lund, BG Group’s chief executive. “The QGC and Bechtel team deserve great credit for the completion of the project, and I would also like to thank our partners, contractors, government authorities including the State of Queensland, together with the landholders and the communities from across the Surat Basin to Curtis Island for their support. "They all helped us to not only connect QCLNG to more wells than any liquefaction plant in the world, but establish a new LNG industry based on natural gas in coal seams.”
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TrendScan Climate change a great challenge: ISRO chief A.S. Kiran Kumar, Chairman, ISRO JORHAT (ASSAM), NOV 28: Climate change is a major issue which is impacting environment and economy and is a great challenge facing the world, ISRO Chairman A S Kiran Kumar said today. “Climatic change is no longer a scientific curiosity but a great challenge facing us as an environmental issue impacting economy, livelihood, health safety, agriculture, food production and many other dimensions,” Kumar said at the second convocation of Assam Kaziranga University here. Shifting weather patterns threaten food production through increased unpredictability of precipitation, rising sea levels, contaminated coastal fresh water and reserves, and increase the risk of catastrophic flooding and a warming atmosphere, the space scientist said. The North-eastern region is prone to natural disasters like flood, landslide, thunderstorm, drought and forest fire, he said. In order to improve weather forecast services, including flood forecast and thunderstorms, ISRO’s North Eastern Space Application Centre at Shillong has developed innovative techniques under its Flood Early Warning System project involving the regional climate modelingcentre, Guwahati. 51
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The scope of this project has been extended to flood-prone areas in the North-eastern states and it has proved very helpful in managing floods in Assam. Kaziranga University conferred honorary doctorate degrees to the ISRO Chairman and Sarod maestro UstadAmjad Ali Khan. Analysts: US, Iraq won't increase crude oil output in 2016 Neither the US nor Iraq will boost crude oil output next year, according to analysts. "The US and Iraq have been two of the biggest contributors to the global oil surplus, and when we look at 2016, production in both will be challenged," DNB ASA analyst TorbjoernKjus said. Barclays Managing Director of Commodities Research Kevin Norrish said the oil market will continue "the long, slow process of rebalancing" next year. Bloomberg (11/20) To understand what the oil price crash will mean for global crude supplies next year, look no further than the two nations that added more barrels to world markets in 2015 than anyone else. The U.S. and Iraq, whose extra crude this year equates to about 80 percent of the global surplus, will fail to boost output in 2016, according to the world’s biggest forecasters. While the U.S. curtailment is mainly because prices are too low to spur fresh supply, the Middle East country’s ability to boost output is also being crimped by a need to fund its battle with Islamic State. Slowing output in the the two fastest-growing producers signals the global glut, which has depressed oil prices to near $40 a barrel, may begin to dissipate next year, according to Barclays Plc. While that would start to fulfill Saudi Arabia’s plan to re-balance world crude markets, Iraq’s struggles show that producers in OPEC are also suffering as that strategy takes effect. “The U.S. and Iraq have been two of the biggest contributors to the global oil surplus and when we look at 2016, production in both will be challenged,” TorbjoernKjus, an analyst at DNB ASA in Oslo, said by e-mail. “Accelerating decline rates and reduced investment will lead 52
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to falling U.S. output, while Iraq is unlikely to see much growth from further levels.” The two nations are now pumping the equivalent of 4.88 billion barrels a year, an increase of 1.77 billion barrels, or almost 60 percent, compared with their output rates at the start of 2012. To put that in context, oil inventories in Organization for Economic Cooperation and Development nations expanded by 314 million barrels, or 12 percent, in the corresponding period.
U.S. shale production, which has driven a six-year boom in the nation’s oil output, will decline by 600,000 barrels a day next year, according to the International Energy Agency. Total U.S. oil supply is set to surge by 830,000 barrels a day this year, powered by shale formations in Texas and North Dakota. Oil traded at $40.39 a barrel in New York at 9:49 a.m. New York time. Iraqi production “is likely to remain broadly flat” next year as the OPEC member “is struggling with the stress of $50-a-barrel oil and a costly battle” with Islamic State militants, the IEA said in a report on Nov. 13. Baghdad is also straining to reimburse international oil companies for investments in southern fields. BP Plc cut this year’s operations budget by 60 percent to $1 billion. As oil prices halved, 53
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Iraq has had to pay twice the amount of crude to foreign firms who receive per-barrel fees in the form of cargoes.
In the north, the semi-autonomous Kurdish region is struggling to pay partners amid a budget dispute with Baghdad. DNO ASA, the Norwegian operator of the Tawke field, and Gulf Keystone, which operates Shaikan, have said their plans are on hold until they receive overdue payments for output from the government. The Kurdistan Regional Government began making regular monthly transfers to companies in September, although DNO says it’s only receiving half of what it is owed for monthly exports and nothing towards reducing accumulated arrears. With output gains in jeopardy, “there are signs that the supply glut is easing,” said Kevin Norrish, managing director for commodities research at Barclays in London. “U.S. shale oil growth measured over last year’s levels is now coming to an end at last and given the infrastructure constraints in Iraq, plus an end to the upward trend in Saudi output it seems the phase of steadily rising OPEC production may be pausing for now as well,” he said. “The long, slow process of re-balancing the oil market continues.”
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TechScan GAIL, ISRO launch satellite-based portal to monitor pipelines V Rishi Kumar, BL, Hyderabad, Dec 4:
Mobile app uploads pictures of untoward incidents GAIL (India) Limited in collaboration with National Remote Sensing Centre, a unit of Indian Space Research Organization (ISRO), has launched a surveillance geo-portal – ‘Bhuvan-GAIL Portal’ – that utilises space technology for its pipeline safety application. The launch took place in the presence of B.C. Tripathi, Chairman GAIL (India) Ltd, V.K. Dadhwal, Director NRSC, ISRO and senior officials from GAIL and ISRO, according to a statement issued here. GAIL is deploying space technology to monitor the pipeline’s Right of Use (RoU). It has more than 13,000 km of pipeline network, wherein monthly monitoring of pipeline is presently done via helicopter surveys. By January 2016, GAIL will begin live satellite monitoring of its pipeline RoU. It is also seeking alternative methods such as advanced Unmanned Aerial Vehicles (UAV), which can be integrated with this system. The company has developed a mobile application from which pictures of untoward incidents taken locally from any mobile showing the actual scenario can be uploaded instantly to the portal. A report system integrated with the Bhuvan-GAIL portal can send alerts to relevant executives via SMS and
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email regarding the changes noted along the pipeline as well as the arrival of any new satellite photos. To establish the technical feasibility of utilising space technology for its pipeline applications, GAIL began the study with imageries from Indian satellites and later shifted to very high-resolution foreign satellites. With recent progress in satellite-sensing technology, availability of new high-resolution satellites, object-oriented image analysis, there is the possibility to introduce space technology for pipeline monitoring applications. This R&D pilot project for monitoring of the 610-km-long Dahej窶天ijaipur pipeline is one such effort to keep pace with technological advancements enabling time and cost-effective solutions. The Bhuvan-GAIL portal is operated via manual as well as auto-change analysis options to monitor changes along the natural gas pipeline SERVO HYVIS EE 46 long drain hydraulic oil launched at EXCON exhibition in Bengaluru
Officials during the launch of SERVO HYVIS EE 46 long drain hydraulic oil at EXCON exhibition in Bengaluru. 56
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Mr. T.S.R. Gopalarao, GM (ILS), HO, launched the long drain hydraulic oil SERVO HYVIS EE 46 at CII event EXCON in the presence of Dr.S.K.Majumdar, GM (IL & Tribology), R&D, at Bengaluru on November 26, 2015. This premium product from IndianOil will use a patented technology of Evonik Additives, Gmbh which would give benefits of lower fuel economy & productivity gains to customers in the mining & construction sector. During the event, documents pertaining to marketing cooperation & trademark license agreement were also exchanged between the two companies. Indian Oil is their only licensee in India. The niche hydraulic oil developed for excavators will be marketed in 20 ltrs , 50 ltrs& 210 ltrs barrels Humpback Whales Solve a Big Problem for Wind Turbines Nov 19, 2015, Smartbreif on Sustainability Source:http://www.wired.com/2015/11/whales-wind-turbines/ IMAGINE YOU’RE DRIVING your car on a clear day. You idly stick your hand out of the window, and tilt your hand, playing airplane as the wind pushes your hand upwards. That’s lift—the same lift that allows an airplane to stay aloft or a windmill blade to turn. To help these man-made technologies increase maneuverability in the air, scientists took a tip from one of the lift experts of the ocean: the humpback whale. Unlike many of their whale brethren, the humpback doesn’t survive solely on krill, captured by opening their mouths and swimming straight ahead towards the shrimp-like crustaceans. Instead, 57
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humpbacks maneuver to catch fish. And to do so, they’ve got to make some tight turns. To make those fast course corrections, the humpback has to prevent its flipper from stalling. “If a whale wants to make a tight turn, it’ll need more lift, from a higher angle of attack,” explains Frank Fish, a biologist at West Chester University. “But if that angle of attack is too great when it’s trying to make that circle, it’ll stall”—just like a stomach-dropping moment in an airplane, or skidding on black ice in a car. Humpbacks can maneuver their flippers to a sharp angle of attack before they start to stall, which lets them develop more lift and make those fish-catching turns. That’s thanks to tubercles, bumps that create scalloped edges on the leading side of their flippers. Professor Fish and his team engineered flippers with tubercles and without, and tested them in a wind tunnel at the Naval Academy. They found that the tubercles did delay stall, increasing the angle of attack up to 42 percent. Affixing tubercles to blades has shown similar effects with windmills, fans, surfboard fins, and even a hydroplane. “Because you can go to a higher angle of attack, there’s an increase in the amount of lift that can be generated,” says Fish. That’s especially important for wind turbines: Gusts from two different directions can stall the blade of a windmill, to the point where it’ll actually blow up. “You have to engineer windmills at fairly low angles of attack, so you aren’t getting that much lift and energy in the process,” says Fish. With tubercles, engineers can design windmills with a higher angle, enabling them to get more lift, spin faster, and gather more energy—while (mostly) safely assured that they won’t blow up.
Solar Sunrise By BusinessLine, November 27, 2015 With solar tariffs already at grid parity, India is on the cusp of a renewable energy revolution
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Solar power tariffs have hit a new low. US-headquartered ₹4.63 SunEdison’s winning bid of Andhra Pradesh, has evoked comparisons with the e-commerce industry, where critics have mockingly dubbed the business model as ‘scale-up and trust to luck’. It has also deepened the cleft between the believers and cynics, with the former pointing out that as long as two years back, global renewable energy consultancy GTM Research had predicted solar module prices to fall to 36 cents a Watt by 2017, roughly half of the then prevalent prices. Also, the fact that nine of the 28 bidders had quoted tariffs below ₹5 should question charges of irrational exuberance. Creditworthiness of the power buyer — the power will be bought by the state-owned NTPC for the next 25 years — has also been cited as a cost-dipping factor. Recent headwinds faced by SunEdison, the world’s largest renewable energy company — it called off a previously announced bid to acquire Continuum’s wind energy assets, and has reportedly put some of its operational solar assets in India on the block — have cast a shadow on the future of the Andhra Pradesh project. However, SunEdison has said the sell-offs will release cash for new projects. The key question is whether the rock bottom prices quoted by SunEdison and others are a one-off, or part of a larger downward trend. Past trends cannot be used as a guide, as solar tariffs have been declining far faster than any chart-based prediction. When the Indian solar story began in 2010, tariffs were around ₹18 per kWh. Now, against the new benchmark of SunEdison’s bid, solar has reached parity with conventional power even without having to wait for conventional power costs to rise to meet solar’s downward glidepath. A confluence of factors such as technology, scale, finance and growing maturity of the industry, have helped drive costs down. It also helps that the world of finance is frowning upon coal and oil, owing to climate change fears.
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In fact, a recent study by KPMG estimates tariffs to fall to ₚ4.20 2020 and further to ₚ3.59 offered by the Indian government’s massive solar programme of 100,000 MW by 2022. By 2020, KPMG estimates solar power prices to be 10 per cent lower than coal power. However, long-term sustainability of renewable power is critically dependent not on the tariff charged by power producers, but that paid by consumers. Financial revival of bust state power distribution utilities, as well as tariff and subsidy reforms are essential for the long-term survival of the power sector, regardless of whether the energy source is renewable or fossil fuel-based. Massive investment is also required in transmission infrastructure to wheel power from production to consumption centers. If the government bites the reforms bullet in power, India can well become a global powerhouse in renewable energy. Regenerating Bones with Nanoparticles Nov22, 2015 The Hindu Arrangement of cells in 3D scaffolds is similar to what is seen inside bone tissue A degradable polymer, with a tinge of a new-age carbon nanomaterial, can perhaps one day be used to mend broken bones. A recent study by scientists at the Indian Institute of Science (IISc), Bengaluru suggests that 3D scaffolds of graphene composites can be used for bone tissue regeneration as they mimic the environment of the bone. The researchers from the department of Materials Engineering went about strengthening Polycaprolactone (PCL) a biodegradable polymer by adding graphene, a two-dimensional hexagonal lattice of carbon atoms. Though PCL is biodegradable, it is considered too soft to be used as a bone template. However, graphene has a strength that is more than 200 times that of steel.
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The addition of graphene dioxide was found to have increased the strength of PCL by 22 per cent and its capacity to resist deformation by 44 per cent enough to sustain bone growth, while also being biodegradable. The purpose of the scaffold is to provide only a temporary home for the regenerating cells. The scaffold should degrade slowly over time allowing for healthy tissue to eventually replace the scaffold, says Sachin Kumar, the lead author of the study published in the Journal of Biomedical Materials Research. The researchers viewed the response of osteoblast cells (bone precursors) to grapheme-based polymer that was made as a 2-D structure (a plane surface) and a 3D structure with protruding nanoparticles. In 2-D scaffolds, the osteoblast cells spread at least 15 per cent more on the composite, and were spread across the sheet in a random pattern, than if one were to use a regular PCL. However, in 3D scaffolds, the cells have a compact arrangement similar to what is seen inside bone tissue. Also, bone mineralization (process needed for strengthening the bone) was found to be higher in 3-D scaffolds as compared with 2-D substrates. And in these observations, lie the opportunity for research into nanocomposites for medical sciences. While the study demonstrates the suitability of using the composite for bone regeneration, the researchers believe either of the two structures could be used depending on the type of bone tissue damage. According to Dr. Kumar, while 3-D scaffolds are better for bone tissue engineering, 2-D scaffolds may find use in bone tissue repair.
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Novel material has potential to soak up oil spills Tue, 12/01/2015 - Britt Faulstick, Drexel Univ. This is a boron nitride nanosheet next to spike of a plant. Image: DeakinUniv. In hopes of limiting the disastrous environmental effects of massive oil spills, materials scientists from Drexel Univ. and Deakin Univ., in Australia, have teamed up to manufacture and test a new material, called a boron nitride nanosheet, that can absorb up to 33 times its weight in oils and organic solvents—a trait that could make it an important technology for quickly mitigating these costly accidents. The material, which literally absorbs the oil like a sponge, is the result of support from the Australian Research Council and is now ready to be tested by industry after two years of refinement in the laboratory at Deakin's Institute for Frontier Materials (IFM). Alfred Deakin Professor Ying (Ian) Chen, PhD, the lead author of a paper, recently published in Nature Communications, said the material is the most exciting advancement in oil spill remediation technology in decades. "Oil spills are a global problem and wreak havoc on our aquatic ecosystems, not to mention cost billions of dollars in damage," Chen said. "Everyone remembers the Gulf Coast disaster, but here in Australia they are a regular problem, and not just in our waters. Oil spills from trucks and other vehicles can close freeways for an entire day, again amounting to large economic losses," Chen said. The Australian Research Council supported the development of the boron nitride nanosheets, because, according to Chen, current methods of cleaning up oil spills are inefficient and unsophisticated— taking too long and causing ongoing and expensive damage. The nanosheet is made up of flakes, which are just several nanometers (one billionth of a meter) in thickness with tiny holes. This
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form enables the nanosheet to, in effect, increase its surface area per gram to the size of five and a half tennis courts. According to lead author, Weiwei Lei, PhD, an IFM scientist and an Australian Research Council Discovery Early Career Research Awardee, turning the powder into a sponge was a big challenge—but an essential step in the process. "In 2013 we developed the first stage of the material, but it was simply a powder. This powder had absorption capabilities, but you cannot simply throw powder onto oil—you need to be able to bind that powder into a sponge so that we can soak the oil up, and also separate it from water," Wei said. "The pores in the nanosheets provide the surface area to absorb oils and organic solvents up to 33 times its own weight." Researchers from Drexel's College of Engineering helped to study and functionalize the material, which started as boron nitride powder, commonly called "white graphite." By forming the powder in to atomically thin sheets, the material could be made into a sponge. "The mechanochemical technique developed meant it was possible to produce high-concentration stable aqueous colloidal solutions of boron nitride sheets, which could then be transformed into the ultralight porous aerogels and membranes for oil clean-up," said VadymMochalin, PhD, a co-author of the paper, who was a research associate professor at Drexel while working on the project, and is now an associate professor at Missouri Univ. of Science and Technology. The Drexel team used computational modeling to help understand the intimate details of how the material was formed. In the process, the team learned that the boron nitride nanosheets are flame resistant— which means they could also find applications in electrical and heat insulation. "We are delighted that support from the Australian Research Council allowed us to participate in this interesting study and we could help our IFM colleagues to model and better understand this wonderful material, " said YuryGogotsi, PhD, Distinguished University and 63
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Trustee Chair professor in Drexel's College of Engineering, and director of the A.J. Drexel Nanomaterials Institute. The nanotechnology team at Deakin's Institute for Frontier Materials has been working on boron nitride nanomaterials for two decades and has been internationally recognized for its work in the development of boron nitride nanotubes and nanosheets. This project is the next step in the IFM's continued research to discover new uses for the material. "We are so excited to have finally got to this stage after two years of trying to work out how to turn what we knew was a good material into something that could be practically used," Chen said. Source: Drexel Univ. Researchers push the limits of solar cells Thu, 12/03/2015 - Kathleen Haughney, Florida State Univ. Researchers used a selfassembly process where molecules work in concert to preform photon upconversion, combining two low energy, green photons to generate a higher energy, blue photon, which can then be used to generate electricity.Florida State Univ. researchers are striving to make solar cells more effective at trapping and using light. They're one step closer. In a new paper in the Journal of Physical Chemistry Letters, Asst. Prof. of Chemistry and Biochemistry Kenneth Hanson and his team have introduced a new strategy for generating more efficient solar cells. The team is composed of post-doctoral researcher Tanmay Banerjee and graduate students Sean Hill and Tristan Dilbeck. "We're looking not only for new materials but also new light harvesting processes to make solar cells better," Hanson said. 64
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Though solar cells have grown in popularity, they are still not widely used by the general public as an energy source due to their high cost and low efficiency. A typical solar cell, at maximum, converts less than 33% of light into electricity, so researchers have been working to find ways to surpass this limit and make cells more efficient. In the past, scientists have put an extra photon upconversion filter before or after the cell to catch the low energy, unused light and convert it into usable, high-energy light. But, Hanson wanted to integrate this process directly into the cell. The researchers were able to do that by using self-assembly. Through a soaking procedure, they assembled two molecules, an acceptor and sensitizer, on a surface. Once assembled, these molecules work in concert to perform photon upconverion, combining two low energy, green photons to generate a higher energy, blue photon, which can then be used to generate electricity. Using this process in an optimized solar cell can increase the maximum efficiency from 33% to more than 45%. The team is also confident they can generate even better numbers in the future. "It's definitely a stepping stone toward making more efficient solar cells," Hanson said. "Our current work demonstrates a feasible method." Scientists worldwide have been working on how to make more efficient solar cells through a variety of mechanisms and different materials. The solar market has grown considerably over the past few years, and as emphasis on clean energy grows, more resources will likely be devoted to creating better solar options. A recent Dept. of Energy study estimates that solar energy, which is 0.05 of the current power supply, will grow to 14% by 2030 and 27 percent by 2050.
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Hanson is a part of the Energy and Materials Strategic Initiative with the mission of producing high tech materials for new generation, energy sustainable technology. Members of the initiative are working on a variety of high-tech materials including solar cells, light emitting diodes and photoactive molecules. Source: Florida State Univ. Regenerating Bones with Nanoparticles Nov22, 2015 The Hindu Arrangement of cells in 3D scaffolds is similar to what is seen inside bone tissue A degradable polymer, with a tinge of a new-age carbon nanomaterial, can perhaps one day be used to mend broken bones. A recent study by scientists at the Indian Institute of Science (IISc), Bengaluru suggests that 3D scaffolds of graphene composites can be used for bone tissue regeneration as they mimic the environment of the bone. The researchers from the department of Materials Engineering went about strengthening Polycaprolactone (PCL) a biodegradable polymer by adding graphene, a two-dimensional hexagonal lattice of carbon atoms. Though PCL is biodegradable, it is considered too soft to be used as a bone template. However, graphene has a strength that is more than 200 times that of steel. The addition of graphene dioxide was found to have increased the strength of PCL by 22 per cent and its capacity to resist deformation by 44 per cent enough to sustain bone growth, while also being biodegradable. The purpose of the scaffold is to provide only a temporary home for the regenerating cells. The scaffold should degrade slowly over time allowing for healthy tissue to eventually replace the scaffold, says Sachin Kumar, the lead author of the study published in the Journal of Biomedical Materials Research. The researchers viewed the response of osteoblast cells (bone precursors) to grapheme-based polymer that was made as a 2-D 66
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structure (a plane surface) and a 3D structure with protruding nanoparticles. In 2-D scaffolds, the osteoblast cells spread at least 15 per cent more on the composite, and were spread across the sheet in a random pattern, than if one were to use a regular PCL. However, in 3D scaffolds, the cells have a compact arrangement similar to what is seen inside bone tissue. Also, bone mineralization (process needed for strengthening the bone) was found to be higher in 3-D scaffolds as compared with 2-D substrates. And in these observations, lie the opportunity for research into nanocomposites for medical sciences. While the study demonstrates the suitability of using the composite for bone regeneration, the researchers believe either of the two structures could be used depending on the type of bone tissue damage. According to Dr. Kumar, while 3-D scaffolds are better for bone tissue engineering, 2-D scaffolds may find use in bone tissue repair. Will Endlessly Recyclable Plastics Soon Be a Reality? By: Jessica Lyons Hardcastle December 3, 2015. As the COP21 climate talks are underway in Paris, and government leaders work to hammer out a deal to limit global warming, French company Carbios has announced a technology that may pave the way to infinite plastic recycling — eliminating plastic waste and its impact on climate change. Yesterday Carbios announced that it has taken a major step forward in the development of its enzymatic depolimerization process of polyesters making it applicable to PET (polyethylene terephthalate), one of the most commonly used polymers. Carbios’ recycling process enabled for the first time the depolymerization of 100 percent amorphous PET-based commercial products into its original monomers, TPA (terephthalic acid) and EG (ethylene glycol).
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The company says the process allows the monomers to maintain the same quality and physicochemical properties as their petroleum-based counterparts. After separation and purification, the monomers extracted from the enzymatic recycling process could then be used for the synthesis of virgin PET — avoiding any loss in value of the recycled material and producing durable, sustainable plastics. Carbios CEO Jean-Claude Lumaret says the company is working with “major players” to bring the recycling process to industrial scale. “These new progresses will enable us to pursue our efforts and undertake the development at the pilot scale of our PET recycling process and adapt this technology to the recycling of other plastic polymers,” Lumaret says. Developing endlessly recyclable, durable plastics is the holy grail of polymers. Innovative chemistry companies and scientists are moving closer to making this dream a reality. “Every day polymer scientists amaze us with new research and innovations in plastics that contribute to our safety, quality of life and ability to live more sustainably,” says Steve Russell, vice president of plastics for the American Chemistry Council. Recyclable and Durable In a recent IBM blog, IBM research scientist Jamie Garcia details how her “chance discovery sparked a quest for plastics that are both strong and recyclable.” She says she hopes her work in ploymers will result in plastics that are endlessly recyclable, longer lasting and more durable. Her breakthrough makes even previously un-recyclable plastics, recyclable hundreds of times over because of a unique thermoset. As Garcia explains in the blog: “The crosslinking chemical motif, the part that makes this polymer a strong network, has a special property that allows it to be hydrolyzed (the breakdown of a 68
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compound by chemical reaction with water) only at very low pH (pH ~ 0). We used computational chemistry alongside experiments to help guide us to the best synthetic method to make these materials, including cure conditions (this is absolutely critical!) and choice of monomer (also critical!) to access materials with the best properties. Usually you don’t get both properties in one material: this thermoset is both strong and revertible.” But to produce and recycle these ploymers on an industrial scale, Garcia needs a chemical company and its equipment to scale up the process, plus an industrial-scale plant dedicated to chemical recycling for polymers. She says most plastics are recycled with an inexpensive melt-and-remold approach and the infrastructure isn’t in place for chemical recycling methods. “That said, I still think that in the long run it would be worth it — we could recover more of our materials, and implementing chemical recycling for polymers would ultimately save on energy, resources, and landfill space,” Garcia says in the blog. Plastics Recycling Increases Meanwhile plastics recycling in the US continues to increase. Americans have increased the pounds of plastic bottles recycled every year since 1990, according to joint report by the Association of Plastic Recyclers and the American Chemistry Council. Waste Management World says the report found plastic bottle recycling in the US grew by 3.3 percent or 97 million pounds (44,000 metric tons) in 2014, with the new total surpassing 3 billion pounds (1.36 million metric tons). Additionally, high-density polyethylene (HDPE, #2) bottle collection grew to nearly 1.1 billion pounds (500,000 metric tons), an increase of more than 62 million pounds (28,100 metric tons) from 2013. “Plastics recycling has grown significantly in recent years thanks to the collaborative efforts of materials suppliers, researchers, retailers, brand owners, and the recyclers themselves,” Russell told Environmental Leader. “Together, we’ve built a foundation that will allow us to recover and use more of these valuable materials.” 69
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Waste and Emissions Reductions Carbios estimates demand for PET-based virgin plastics in Europe hit 3.2 million tons in 2013, of which 1.8 million tons (57 percent) are recycled. Applying the company’s biorecycling process to PET would allow for treatment of 100 percent of PET waste, equal to an addition volume of 1.4 million tons in Europe that is landfilled or burned for energy, instead of being recycled, the company says. Carbios says by creating a circular economy model, its biorecycling processes would prevent the emission of 4.6 million tons of CO2e in Europe alone. Says Russell: “Plastics’ light weight, strength and durability make possible environmental benefits ranging from waste reduction to energy savings and lower emissions — and those benefits can be enhanced when we recycle plastics.” Read more: http://www.environmentalleader.com/2015/12/03/will-endlessly-recyclableplastics-soon-be-a-reality/#ixzz3tplhMqnh
COP21 PARIS Hurdles & Challenges
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CLIMATE CHANGE, SUSTAINABILITY & HSE
Climate Change COP21 Thousands rally worldwide on climate change Paris group defies ban on marches; 174 face charges By Elaine Ganley ASSOCIATED PRESS NOVEMBER 30, 2015 PARIS — Hundreds of thousands of people took part in rallies around the world Sunday, calling on leaders to halt climate change on the eve of a major environmental summit in Paris. The nearly two-week conference comes more than two weeks after the Paris terrorist attacks. A state of emergency was imposed in France after the carnage, and marches have been banned. But violence erupted Sunday between French riot police and a group of several hundred at a major square in Paris that was the site of a peaceful demonstration earlier. Police fired tear gas to disperse protesters throwing projectiles. France’s interior minister, Bernard Cazeneuve, said 174 protesters are facing possible charges after clashing with riot police on the eve of the conference. He said a total of 208 people were arrested after the clashes, but some were later released. President Francois Hollande of France said the violence was “scandalous” both because the clashes were caused by “disruptive elements” that have nothing to do with environmental defenders and because they occurred at Place de la Republique, which has been a memorial square for the 130 victims of the Nov. 13 Paris massacre. An organizer of the global rallies, Avaaz, said early estimates of marchers around the globe show 570,000 people marched in 175 countries. A known environmental group, 350.org, said the protesters were unaffiliated with the climate movement and broke “the 71
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nonviolent pledge that every group involved in the climate coalition� signed off on. More than 140 world leaders at the summit, including President Obama and President Xi Jinping of China, are hoping to reach the first truly global deal to cut greenhouse gases. A key goal is a longterm framework for more emissions reductions, with each nation setting targets that other countries can verify.
CLIMATE CHANGE COP21 Paris Summit 2015: tackling climate change Road to curb temperature rises The goal of the 2015 Paris Climate Conference, COP21, is to achieve a legally binding, international agreement to keep average global temperatures no more than 2°C above pre-industrial temperatures* In a bid to achieve the goal to curb temperature rise,
nations have submitted their Intended Nationally Determined Contributions (INDCs) to the UNFCCC. Pledges from 148 countries to cut greenhouse gas emissions by 2030 are insufficient to limit global 72
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warming to 2 degree Celsius above pre-industrial levels, according to the U.N. Framework Convention on Climate Change. Here is a look at the INDCs of some of the major emitters.
CLIMATE CHANGE COP21 A Path for Climate Change, Beyond Paris By JUSTIN GILLIS DEC. 1, 2015
Progress is being made in the use of, from left, wind turbines, solar panels and water treatment to create energy savings. But one energy analyst, Jesse Jenkins, says, “I just don’t see a World War II-style mobilization happening for anything other than a world war.”CreditFrom left, Francis Joseph Dean/Rex Features, via Associated Press; Carlos Barria, via Reuters; Stuart Palley for The New York Times The pledges that countries have signaled they will make in Paris over the next two weeks to cut emissions will inevitably fall short of what is needed to solve the problem of climate change. But many political leaders gathering there — including governors, mayors, and provincial cabinet secretaries — are pushing for more aggressive cuts. By the dozen, they are signing a voluntary agreement committing their jurisdictions to faster and deeper reductions in emissions of greenhouse gases than their national governments have promised. “We are not moving fast enough,” Gov. Jerry Brown of California, who is helping to lead the effort, said in an interview. “We’ve got to do more.”
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All of which raises a provocative question: What would a truly ambitious plan to tackle climate change look like? Despite the intensity of the debate around global warming, the question has long been considered theoretical, and few people have spent much time studying potential steps to “deep decarbonization� — certainly not at the level of detail needed for a concrete plan. Lately, that has started to change. But the recent analyses make clear just how difficult a worldwide transition to a clean energy system is likely to be.
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“The arithmetic is really brutal,” said Jeffrey D. Sachs, a prominent Columbia University economist. “We’re in such a dreadful situation that every country has to make this transformation, or else this isn’t going to work.” Dr. Sachs helped start what is perhaps the most serious effort to draw up a detailed road map for the energy transition: the Deep Decarbonization Pathways Project, based in Paris and New York. Over the past couple of years, the effort enlisted teams from 16 countries, which account for the large majority of global emissions, to devise such plans. The analysts used conservative assumptions about current technologies and their costs. They also presumed that developed countries would not be willing to make big changes in their way of life — that people would continue to insist on transportation, refrigerators, electric lights and so forth — and that poor countries would keep striving to reach higher standards of living, requiring more energy. The experts also made a point of ruling out energy miracles, such as technologies like nuclear fusion that could help enormously if they became available but are still largely on the drawing board. “If we couldn’t put on a hard hat and go visit a technology in the field, at least in pilot stage, then we didn’t include it in our analysis,” said Ben Haley, a senior consultant at Energy and Environmental Economics, a consulting firm involved in the work. With those assumptions, the experts focused on a specific question: Can emissions be cut enough from now to 2050 to meet an international target designed to head off the worst effects of climate change? “It can still be done — barely,” said Guido Schmidt-Traub, the executive director of the Sustainable Development Solutions Network, which helped organize the effort. Technologies Fall Short
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Perhaps the single most crucial finding of the project is that the technologies available today, while good enough to get a running start on the transition, are probably not good enough to finish it. That means experts who have long argued for a more intensive research program on clean energy have a point. The 16-country analysis suggests that many technologies, like electric cars and offshore wind turbines, have to become cheaper and better. Bill Gates, the Microsoft founder and philanthropist, has long argued for a more intensive focus in energy innovation, and on Monday he
announced in Paris that he had corralled a group of billionaires to invest huge sums in developing new technologies. Twenty countries, including the United States, also pledged to double their own investment in basic energy research.
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In an interview, Mr. Gates said that poor countries would be reluctant to switch to clean energy technology unless it becomes better and cheaper, “and the only answer to that is innovation.”
From left, some of the major climate change challenges include protecting Antarctica, reducing automobile emissions, and dealing with water shortages in some places and water excesses in others.CreditFrom Left, John B. Weller/Agence France-Presse — Getty Images; Frederic J. Brown, via Agence France-Presse — Getty Images; Ruth Fremson, via The New York Times Yet the new research on decarbonization also suggests that the environmentalists who have long called for a rapid expansion of existing clean-energy technologies also have a point: The very process of rolling them out helps to spur innovation, and as they spread beyond niche markets, economies of scale drive down the costs. Solar power offers a stunning example, with costs of the panels plunging 80 percent in the last decade, a direct result of subsidies and other policies meant to create a larger market. In many places, solar power is still more expensive than power produced from fossil fuels, but the difference has narrowed considerably. Wind turbines have been a big winner, too, in recent years. They supply almost 5 percent of the electric power in the United States, and in a handful of American states and some smaller countries, that figure has moved into double digits. Wind power is so abundant in Texas that one company there is giving away electricity at night. The good news about wind and solar power has inspired claims that they could carry the entire load of the energy transition. Mark Z. Jacobson, an engineer at Stanford University, has drawn attention with a finding that the entire world could operate on 100 percent renewable power by 2050.
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Yet such scenarios would involve an extraordinary push. Dr. Jacobson’s plans would require, among many other actions, that 156,000 wind turbines be built off American coasts in the next 35 years, and twice as many on land. In 20 years of effort, European countries have managed to build about 3,000 offshore turbines. In an interview, Dr. Jacobson cited a scientific paper that calculated the oiland gas industry has been building 50,000 new wells a year in North America since 2000. Each of those, he said, is as complicated as erecting a wind turbine, and building tens of thousands of turbines a year would be well within the nation’s industrial capability. “We think it’s technically and economically feasible,” Dr. Jacobson said. “It ultimately does come down to political will. If people don’t want to do it, it’s not going to happen by itself.” Dr. Jacobson has often cited the United States’ mobilization during World War II as an example of what can be done by a determined society. But to some other experts, that very argument speaks to the political and economic impracticality of his plans. “I just don’t see a World War II-style mobilization happening for anything other than a world war,” said Jesse Jenkins, an energy analyst at the Massachusetts Institute of Technology. “We’re not going to do that. So the question is, what are we going to do?” The scenarios laid out by the Deep Decarbonization Pathways Project echo Dr. Jacobson’s plans to a degree, in that they call for substantial amounts of renewable power. But these scenarios also suggest that the energy transition would be easier and cheaper with additional technology options, including some that are disliked by the environmental movement. For instance, in some countries with growing power demands, like China, the research found that nuclear power would be essential for staying within a strict emissions budget. Mr. Jenkins said that new
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nuclear plants would also be needed in some American states that had few other options. And many experts believe the United States, even if it does not build many new nuclear plants, would be foolish to shut down the ones it has, given that they supply 19 percent of the country’s electric power with minimal emissions. Yet some of them have shut down lately, occasionally because of safety fears but mainly because of low power prices prompted by the abundance of natural gas. The research also suggests that to meet strict targets, some countries might need to keep burning coal or natural gas to generate power while capturing the carbon dioxide emerging from smokestacks, compressing it and injecting it deep underground. Governments have discussed the need for this technology, known as carbon capture and storage, for decades. But they have putlittle effort into developing it, and it has not advanced much beyond the demonstration scale, though a few projects are starting to come online. Environmental groups have been wary of the technology, and Germany,among the most determined countries in battling global warming, has largely decided not to pursue it. Most fossil-fuel companies do not appear to be putting much effort into the approach, either, even though it may be the only way for some of them to stay in business over the long haul. “It is a highly contested technology, but if they want to save their industry, they should be investing like crazy in proving the technology,� Dr. Sachs said. Perhaps the most compelling finding of the Deep Decarbonization Pathways Project is that governments could easily flub the energy transition by failing to plan far enough ahead. Most countries are setting 10- and 15-year targets that can be met with incremental changes.
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Yet that almost guarantees that the toughest problems, like perfecting the carbon-capturing technology, will be tackled too late to meet the long-term goal of zero emissions, the researchers found. “By the time you get to the hard things, you’ve lost too much time,” Mr. Schmidt-Traub said. Instead, governments have to figure out where they want to be in 2050, he said, and then work backward to plot the necessary technological path, while remaining open to new inventions. Shared Themes While the best technology mix varies by state or country — wind is a good option in Iowa, solar power in Arizona or Australia — the researchers found some themes across all the countries they examined. To achieve the emissions goals, the entire economy, including transportation, needs to be electrified as much as possible. That might mean cars’ running on batteries, but it could also mean cars’ running on hydrogen, created by using nighttime electricity from nuclear reactors or wind turbines to split water molecules. Either way, the implication is that the internal-combustion engine that has powered cars since the 19th century is a technological dead end in the 21st. So countries like the United States that are spending a lot of effort trying to make gasoline cars more efficient may be going down a blind alley. The scenarios for the United States, according to the Deep Decarbonization project, do not envision broad adoption of electric cars until the 2030s. But that is only 14 years away, suggesting an urgent need to make the cars better and cheaper, and to roll out charging stations by the millions. Another potential dead end, the research suggests, would be an overreliance on natural gas. Gas is a lower-carbon fuel than coal, and switching power plants to run on gas can achieve big emission 80
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reductions in the short run. The Obama administration, with its Clean Power Plan, is trying to lock in such a switch in the United States. But the deep-decarbonization research suggests that gas has to go away within a few decades, which means that heavy investment in natural gas pipelines and power plants now could wind up undermining the long-term goals. What Government Can Do If it is mayors and city councilors and governors who are most determined to move forward — as the pledge they are signing before and during the Paris conference makes clear — what effect can they have on their own, without much support at the national level? Some answers are fairly obvious, experts said. In some countries, including the United States, state and local governments control the building codes, many of which still do not include tough requirements for reducing energy demand in new buildings. Cities like Austin, Tex., have shown how to set strict codes and enforce them.
CLIMATE CHANGE COP21
Agreement Reached on Draft Climate Accord, U.N. Officials Say By CORAL DAVENPORTDEC. 11, 2015
Ban Ki-moon, left, the secretary general of the United Nations, with Laurent Fabius, the foreign minister of France, at the talks. CreditJacky Naegelen/Reuters 81
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LE BOURGET, France — After almost two weeks of marathon negotiations, the lines for food and coffee on Friday night snaked through the temporary tent city here that has been home to the global climate talks. People made final bets in a five-euro pool on the precise hour the talks might conclude. Others, needing to recharge for the final stretch of negotiations, jockeyed for spots on couches in the lounges. The goal here is a daunting one: to get 195 countries plus the European Union to agree, for the first time, on a deal that would start reducing the risks of climate change by cutting their use of fossil fuels that create dangerous greenhouse gas emissions. The previous draft, released Thursday night, had left some important players unhappy. The language of crucial provisions remained the focus of contentious negotiations, and where the diplomats ended up — using the word “shall” versus “should,” for example — could carry enormous consequences. The diplomats were working through sharp divides between rich and poor countries, including the idea that only rich, developed economies such as the United States should take action to cut emissions, while developing economies, such as India and China, should be exempt. One crucial question is how emissions cuts will be monitored and verified. The United States, the European Union and wealthy countries have pushed for an aggressive system that would apply to all countries. Developing countries like India have insisted on a less stringent system. Developing nations were also pushing for language that would require rich countries to ramp up spending to help poor countries adapt to the ravages of climate change, including increased floods, droughts and devastating storms. “What we are striving for is a just and equitable accord from Paris,” said Prakash Javadekar, the Indian environment minister, who has 82
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been a vocal opponent of the United States’ push for aggressive transparency measures. “But unfortunately, the developed world is not accommodating and is not showing flexibility,” he added. “There is need that they should show more flexibility and that they should be more accommodating to the concerns of the developing world and poor countries.” The draft released Thursday night included a number of tough environmental provisions, including a requirement that countries reconvene in 2020 and every five years after that with new plans that would ratchet up the stringency of their emissions reductions. Environmental groups praised that provision, which is seen by many as the core of the document, since it would create a permanent system for reducing emissions over coming decades. It represents a crucial compromise, since many developing nations had pushed for a longer, 10-year cycle. But after diplomats worked through Thursday night and early Friday morning until about 5:45, Mr. Fabius said the group could not meet a Friday afternoon deadline to complete the pact. He said he would release a proposed final text on Saturday morning, which was likely to mean an all-night negotiating session on Friday to complete the text. Diplomats — many of whom were operating on about three hours of sleep after Thursday’s negotiations — shuttled between temporary delegation offices for bilateral meetings. Mr. Fabius was meeting with dozens of diplomats personally, and was brokering one-on-one meetings between adversaries, such as oil states like Saudi Arabia and vulnerable nations like the Marshall Islands. The United States was putting its shoulder to the effort to complete an ambitious climate change deal. Both President Obama and Secretary 83
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of State John Kerry, who has led the American negotiators, hope to make climate-change policy a cornerstone of their legacies. While home in Washington and focused on the deadly terrorist attack in California, Mr. Obama has nonetheless tracked the talks closely. He spoke by phone with President Xi Jinping of China on Friday, and the leaders, whose countries have the two most polluting economies, committed to pushing their negotiating teams to work closely together, according to White House officials. Mr. Obama also talked by phone this week with Prime Minister Narendra Modi of India and President Dilma Rousseff of Brazil. But late this week some negotiators expressed concern about the pact as drafted. At a packed news conference with ministers from Germany, Guatemala, Luxembourg, Norway and other countries, Tony de Brum, the foreign minister of the Marshall Islands and the leader of an informal “high-ambition coalition” that includes the United States and the European Union, announced that certain countries — he would not specify which — were trying to water down provisions on monitoring, reporting and verifying emissions targets. Mr. de Brum said: “We come again to sound a clarion call to the world, to raise our voices and say: We will not accept deletions. We are not here to accept a minimalist agreement. This is our red line.” The support of every nation, no matter how small or poor, is required for approval of the pact. When a final text of the proposed accord is brought before the plenary session, now called for Saturday afternoon, the presiding official will present it to the delegates for consent. If a single country objects, the deal will die. That is exactly what happened in 2009 in Copenhagen, when a handful of countries objected to a deal that had the approval of most of the world.
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Despite the current disagreements, negotiators say they are hopeful these climate talks will be the first to end in success. “There are many challenges. There are things I don’t think are wise to put in the text. But there can still be flexibility,” said Zou Ji, a Chinese negotiator. “But I am optimistic — more optimistic than I have been in the past. We will reach a deal.” Ban Ki-moon, the secretary general of the United Nations, has organized climate talks each year and sees this session as by far the most important. “I am urging and appealing to all the state parties to take the final decision for humanity,” he said. Sewell Chan and Melissa Eddy contributed reporting.
CLIMATE CHANGE COP21 Hopes rise as UN adopts climate-savingBlueprint AFP | Dec 5, 2015, LE BOURGET, France: Negotiators from 195 nations delivered a blueprint on Saturday for a pact to save mankind from disastrous global warming, raising hopes that decades of arguments will finally end with a historic agreement in Paris. The planned deal would aim to break the world's dependence on fossil fuels for energy, slashing the greenhouse gas emissions from burning oil, coal and gas that are causing temperatures to rise dangerously. Tortuous UN negotiations dating back to the early 1990s have failed to forge unity between rich and poor nations, and the Paris talks are being described as the "last, best chance" to save mankind.
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Negotiators finalized the draft following an often tense week of talks at a conference centre in Le Bourget. They began on Monday with a record-breaking gathering of 150 world leaders who sought to energize the process, and the next crucial phase ended Saturday with the adoption of a draft text of an agreement. Negotiators finalized the draft following an often tense week of talks at a conference centre in Le Bourget on the northern outskirts of Paris. And while many extremely contentious points still have to be resolved by ministers during a scheduled five days of talks starting Monday, delegates said they felt the foundations had been laid for success. "We are very happy to have this progress. The political will is there from all parties," China's chief climate envoy, Su Wei, told reporters. After the draft was adopted to loud applause, South African negotiator NoziphoMxakato-Diseko drew on her nation's revered democracy icon in a bid to inspire others.
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"In the words of Nelson Mandela, it always seems impossible until it is done," she said. More than 50 personalities committed to fighting climate change, from US actor Sean Penn to Chinese internet tycoon Jack Ma, also gathered at the conference Saturday to help build momentum. "Perhaps this is the most exciting time in human history," Penn told a special event at the conference. "Those illusions of having too many difficult choices have always created chaos. Now we live in a time where there are no choices. We have certainty." Scientists warn our planet will become increasingly hostile for mankind as it warms, with rising sea levels that will consume islands and populated coastal areas, as well as catastrophic storms and severe droughts. Small island nations most vulnerable to rising sea levels and stronger storms, which are often railroaded by the powerful in the UN talks, also expressed cautious optimism about the draft agreement. "We would have wished to be further along than we are at this point, but the text being forwarded so far reflects our key priorities," said Thoriq Ibrahim from the Maldives and chair of the Alliance of Small Island States. But no-one in Le Bourget is under the illusion that a December 11 deal is guaranteed. There are vivid memories of the spectacular failure at the 2009 climate talks in Copenhagen, the last time the world tried to create a global warming pact. "At this point in Copenhagen we were dealing with a 300-page text 87
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and a pervasive sense of despair. In Paris we're down to a slim 21 pages and the atmosphere remains constructive," Greenpeace climate expert Martin Kaiser said. "But that doesn't guarantee a decent deal. Right now the oilproducing nations and the fossil fuel industry will be plotting how to crash these talks." One of the keys to success in Paris is the submission by most countries of voluntary plans to curb their emissions from 2020, when the pact would come into force. Scientists say these pledges, if fulfilled, would still fall far short of what is needed to cap warming at 2.0 degrees Celsius (3.6 degrees Fahrenheit) below pre-Industrial Revolution levels. Also crucial to the Paris accord, environment campaigners and many delegates say, will be agreement on a review every five years at which nations' commitments may be strengthened. But there are major points of dispute on this issue, such as when the stocktakes would happen and if they should actually seek to strengthen countries' commitments or just review them. There is also still no agreement on other fundamental issues such as what temperature limit to aim for. A majority of nations, mostly the smaller ones, want to aim for 1.5 degrees C. But the United States, China, India and some of the other biggest polluting nations want to enshrine 2 degrees C as the goal, which would allow them to emit more gases for longer. Money has long been one of the biggest sticking points in the UN negotiations, and it remains so in Paris. Poorer countries are demanding finance to pay for the costly shift to renewable technologies, as well as to cope with the impact of climate change.
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At stake is hundreds of billions of dollars that would need to start flowing from 2020. But developing nations are complaining that rich countries are refusing to honour previous commitments to mobilise the cash. CLIMATE CHANGE
Shrinking Glaciers on Mount Everest, 28 per cent over the past 40 years due to climate change Glaciers on Mount Everest, source of major Asian rivers like Brahmaputra, have shrunk by 28 per cent over the past 40 years due to climate change, according to a report. The glacial shrinkage area is compared to the measurements taken in the 1970s in the report released by the Chinese Academy of Sciences (CAS), Hunan University of Science and Technology, and Mount Qomolangma Snow Leopard Conservation Centre. The glacier area on the south slope of the worlds highest mountain, in Nepal, has decreased 26 per cent since the 1980s, the report said. Part of the report, which was released yesterday, also said Mt Everest, known as Mount Qomolangma in Tibet, has been getting warmer for the past 50 years. Kang Shichang, a researcher with the State Key Laboratory of Cryospheric Sciences under the CAS, said the data was based on longterm remote sensing and onsite monitoring. At present, there are 1,476 glaciers in Chinas Mt Qomolangma national nature reserve, covering 2,030 square kilometres, staterun Xinhua news agency reported. The shrinking glaciers have resulted in swelling glacial lakes and higher river levels downstream, Kang, who has led several glacier inspection teams said. Remote sensing data showed that the area of a glacial lake in Mt Everest nature reserve increased from about 100 square kilometres in 1990 to 114 square kilometres in 2013, Kang said. 89
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Mt Everest is the source of a number of major Asian rivers including Brahmaputra and the Ganges. Earlier in May, a group of international researchers had warned that the estimated 5,500 glaciers in the Hindu Kush Himalayan (HKH) region site of many of the worlds tallest peaks including Mount Everest could reduce their volume by 70-99 per cent by 2100, with dire consequences for farming and hydropower generation downstream. SUSTAINABILITY
139 Countries Could Get All of their Power from Renewable Sources Energy from wind, water and sun would eliminate nuclear and fossil fuels By Mark Fischetti | November 19, 2015 American Scientific Mark Jacobson and Mark Delucchi have done it again. This time they’ve spelled out how 139 countries can each generate all the energy needed for homes, businesses, industry, transportation, agriculture—everything—from wind, solar and water power technologies, by 2050. Their national blueprints, released Nov. 18, follow similar plans they have published in the past few years to run each of the 50 U.S. states on renewables, as well as the entire world. (Have a look for yourself, at your country, using the interactive map below.) The plans, which list exact numbers of wind turbines, solar farms, hydroelectric dams and such, have been heralded as transformational, and criticized as starry eyed or even nutty. Determined, Jacobson will take his case to leaders of the 195 nations that will meet at the U.N. climate talks, known as COP 21, which begin in Paris on Nov. 29. His point to them: Although international agreements to reduce carbon dioxide emissions are worthwhile, they would not even be needed if countries switched wholesale to renewable energy, ending the combustion of coal, natural gas and oil
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that creates the vast majority of those emissions, and without any nuclear power. “The people there are just not aware of what’s possible,” says Jacobson, a civil and environmental engineering professor at Stanford University and director of the school’s Atmosphere and Energy Program. He is already scheduled to speak twice at the meeting, and will spend the rest of his time trying to talk one on one with national leaders and their aids. Click here for a larger version of the visualiztion Jacobson thinks the 139 national plans will get traction not only because they offer a path to lower emissions, but because in total, they would create 24 million construction jobs and 26.5 million operational jobs, all spanning 35 years, offsetting 28.4 million jobs lost in the fossil fuel industries. That would leave a net gain of about 22 million jobs. Going 100 percent renewable would also prevent 3.3 to 4.6 million premature deaths a year through 2050 that would have happened because of air pollution from those fossil fuels. “These numbers are what gets people’s attention,” Jacobson says. Jacobson and Delucchi, a research scientist at the University of California at Davis, presented their “100 percent renewables” construct to the public for the first time in a 2009 feature article in Scientific American. It explained how the world could derive all of its power, including for transportation, from 1.7 billion rooftop solar systems, 40,000 photovoltaic power plants, 3.8 million wind turbines, 900 hydroelectric plants, 490,000 tidal turbines and so on. “The whole idea originated with the Scientific American article,” Jacobson says. “Now there are five or six nonprofit organizations that use ‘100 percent’ in their name. Walmart, Google and Starbucks have said they want to go to 100 percent renewable energy. So have a number of cities. The goal of our plans for U.S. states and the 139 countries is to have places set their own ‘100 percent’ goals.” SEE ALSO: Some have. AS a first step, New York and California have both passed legislation calling for about 60 percent of their power to come
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from a renewable energy mix by 2030. Hillary Clinton has endorsed a 100 percent goal for the U.S. by 2050. Energy demand across the 139 nations by 2050 would be met with a broad set of wind, water and solar technologies: 19.4 percent onshore wind farms, 12.9 percent offshore wind farms, 42.2 percent utilityscale photovoltaic arrays, 5.6 percent rooftop solar panels, 6.0 percent commercial rooftop solar panels, 7.7 percent concentrated solar power arrays, 4.8 percent hydroelectricity, and 1.47 percent geothermal, wave and tidal power. Jacobson, Delucchi and more than a dozen colleagues from around the world have posted the details, country by country, in a self-published paper they released online. Hoping to make it available for COP, they have yet to publish it in a journal, but they intend to, Jacobson says. The previous plans have all been published. The big knock against renewables such as wind and solar is that they are intermittent; the wind doesn't always blow and the sun doesn't always shine. That means large amounts of energy storage are needed to save up excess power generated when these technologies are going full bore, which can then be tapped when they are low. Storage adds substantial cost and complexity to a renewable energy system. But Jacobson has an answer. By using a smart mix of technologies that complement one another during different parts of the day and different weather conditions, storage can be kept to a minimum. He, Delucchi and two colleagues explain how this can work across the U.S. in a paper in the Proceedings of the National Academy of Sciences that will be published Nov. 23. The engineering detail in all these papers and plans is staggering. The document released for the 139 countries provides an itemized mix of technologies and costs for every nation, as well as how much land and rooftop area would be required. Since 2009 the two researchers, working with many others, have honed the numbers again and again. Now what is needed most, Jacobson says, is exposure. “We have talked to hundreds of expert and politicians. Now we need to reach hundreds of millions of people,� in hopes that they will see the possibilities and begin to call for them.
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That's why Jacobson and several high-profile businesspeople and entertainers started the Solutions Project to educate the public, business owners and policy makers about the roadmaps. Support comes from the Elon Musk Foundation, the Leonardo DiCaprio Foundation and others. “We are tying to find a way to combine business and culture and science to get the information out—to engage, to tell stories,” Jacobson says. He himself scored a spot on David Letterman’s Late Night show in 2013. He says DiCaprio is planning to visit COP 21 while he is there. “We want to translate the benefits of the plans for people everywhere,” Jacobson says. “That's when good things will happen.”
SUSTAINABILITY Carbon capture analyst: “Coal should stay in the ground” Thu, 12/03/2015 -Nicole Casal Moore, Univ. of Michigan Serious flaws have been found in a decade's worth of studies about the best way to reduce greenhouse gas emissions and stabilize the climate. The findings, from the Univ. of Michigan, are released as world leaders at COP21 attempt to negotiate the globe's first internationally binding climate agreement. The U-M researchers have found that most economic analysis of carbon capture and storage, or CCS, technology for coal-fired power plants severely underestimates the technique's costs and overestimates its energy efficiency. CCS involves sucking carbon out of coal-fired power plants' flue gases, compressing it and then injecting it deep underground. The new analysis puts the cost of reducing carbon emissions with CCS-equipped coal plants higher than any previous study—and most importantly, higher than wind and comparable to solar power. It's the first study to confront the so-called "energy loop" inherent in the CCS process. Beyond a one-time "energy penalty" these plants pay because they have to burn more coal to power devices that capture carbon, the 93
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researchers say the disadvantage compounds until fuel costs leap to four times today's accepted estimates. "The conclusion is that renewables will be a cheaper alternative to reducing carbon emissions from coal, at least in the U.S. and likely globally," said Steve Skerlos, U-M professor of mechanical engineering, and civil and environmental engineering. "To us, this means policymakers need to stop wasting time hoping for technological silver bullets to sustain the status quo in the electric sector and quickly accelerate the transition from coal to renewables, or possibly, natural gas power plants with CCS." Coal-fired power plants produce nearly a third of the world's electricity. Today, they also emit more than half of the world's energysector carbon dioxide—the primary driver of climate change. Scientists recommend reducing CO2 emissions dramatically to keep the planet from warming more than 2 C (3.6 F) over its pre-Industrial average. CCS has seemed like a viable way to do that. Coal is a relatively cheap fuel and the infrastructure to use it already exists—both in the U.S. and in growing economies like China and India. While CCS is still in the research phase, and not commercially used today, it figures prominently into maps of tomorrow's cleaner energy landscape. "Every major technological, economic and policy study published in the last decade on how to meet the internationally determined target of 80% greenhouse gas reduction by 2050 has relied on the largescale deployment of carbon capture and sequestration (storage)," Skerlos said. Reports from 2005 and 2012 by the International Panel on Climate Change suggests that CCS could enable between 10% and 55% of the nation's total carbon reduction by 2100, for example. And just this year, an international study published in PNAS projects that nearly 85 percent of emission reductions by 2050 could come from coal CCS. These reports and many more like it don't capture the full picture. The current, flawed projections peg the fuel costs of a CCS-equipped coal plant at $29 million per year more than a conventional plant. The new 94
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U-M research calculates the additional fuel cost at closer to $126 million, said SarangSupekar, a postdoctoral researcher in mechanical engineering and first author of the new study. "Current energy policy studies are based on cost estimates that greatly underestimate the full energy penalty and costs of CCS for coal-fired power plants," Supekar said. "Therefore, they overpredict the role of CCS going forward." Why the discrepancy? Turns out the studies that recommend CCS be a key piece of the world's future energy portfolio rely on numbers from a 1991 pilot study that doesn't completely account for what Supekar calls feedback effects. "To capture the CO2, you need to generate more energy," Supekar said. "To get this energy, you burn more coal, which creates more CO2 that needs to be captured. So there's this loop that's happening that needs to be accounted for." The important number, Supekar said, is a plant's overall "thermal efficiency." That's the total amount of heat from coal burning that is converted to useful electricity. The '91 study, by a researcher at the Electric Power Research Institute in Palo Alto, evaluated the engineering and economic feasibility of using CCS to reduce carbon emissions. It concluded that the process was expensive. It also made clear that implementing CCS would require a choice between accepting lower useful power output and, as Skerlos says "confronting the energy loop"—burning more fuel to keep the power output stable. The early study opted for lower power output. But later studies that cite it didn't interpret that drop appropriately, nor did they mention the energy loop. To get a sense of the impact of this omission, a new coal plant's typical thermal efficiency is about 38%. Current literature—which largely ignores the energy loop—estimates CCS would decrease thermal efficiency to 26%. But the U-M researchers say it's more like 16%. This efficiency reduction is the cause of the cost increase. 95
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As more CCS test projects have come online, the community has noticed higher-than-expected energy penalties, Supekar said. His study is the first to quantify what those plants are experiencing. Quantifying it is an important step toward figuring out if the technique makes sense from both economic and environmental perspectives. The researchers say it doesn't. "The one-line conclusion is that coal should stay in the ground," Supekar said. "It's not efficient to take it out, burn it and put it back. Renewables, and possibly natural gas power plants with CCS technology, will be much cheaper and more efficient." A paper on the findings is published in Environmental Science and Technology. SUSTAINABILITY
Technologies that could transform how industries use energy Energy accounts for a sizable share of company operating costs. Our new report details 33 technologies to improve energy efficiency—and your bottom line. November 2015 | byHarsh Choudhry, Mads Lauritzen, Ken Somers, and Joris Van Niel As the world grows, in both wealth and population, so will the demand for energy: global primary-energy consumption is on course to increase by 25 percent between now and 2030. At the same time, concerns over pollution and climate change are forcing businesses and governments to think hard about how they produce and use energy. Energy efficiency, which is sometimes called the “fifth fuel� (after coal, gas, nuclear, and renewables), can play an important role in helping the world meet its demand for power and mobility. Since the turn of the 21st century, energy costs have risen steadily. Even when prices have fallen, as happened most dramatically with oil from 2014 to 2015, such rapid swings can be difficult for companies
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to cope with. Moreover, when costs are low, there is a tendency to question whether energy-efficiency measures are worth the effort. The answer is yes, many are—and not just because energy efficiency offers protection against price volatility. Energy forms a sizable share of operating costs (Exhibit 1). Globally, the chemical, cement, and metals and mining sectors, for example, spend about one-third of their operating budget on energy. Those figures are typically higher in developing regions, where the cost of labor is lower. Exhibit 1
Our research shows that while operational improvements can reduce energy consumption by 10 to 20 percent, investment in energyefficiency technologies can boost that to 50 percent or more. For example, the cost of clean-room-environment control could be reduced from 50 percent of energy consumption to a fifth of that, and there are also sizable gains to be made in cement, refining, and steel. We have identified real-life examples in multiple industries where companies have significantly reduced energy costs and recouped their investment in three years or less (Exhibit 2). 97
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Exhibit 2
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In short, it is not an impossible dream for manufacturing, which accounts for half of global energy consumption, to meet energy demand in a way that is both economically and environmentally efficient. Innovative technologies could significantly reduce energy consumption and save industry more than $600 billion a year. Our report, Greening the future: New technologies that could transform how industry uses energy, details 33 innovations that could help industry significantly improve energy use. These innovations span nine categories: advanced industries, cement, consumer goods, mining, oil refining and chemicals, power, pulp and paper, steel, and those that can be used generally. Most of these technologies are already available—the challenge for companies is to figure out which ones to use, how to put them into practice, and how to renew them so that they continue to work year in and year out. Our five core principles of resource productivity are used to help make sense of what technologies to use and how to put them into long-term practice: Think lean. Build a resource-productivity strategy within the organization. Lean thinking and green thinking are based on the same fundamentals and work together well. For instance, an Indonesian power plant reduced its cost per megawatt by 7 percent in four months by creating performance indicators and then tracking them systematically.
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Think limits. Use the theoretical-limit concept—an analysis that identifies the lowest amount of energy required for a given process— to set ambitious but realistic goals. This fosters the kind of creative thinking that can deliver substantial resource-productivity improvements. One Chinese iron-and-steel enterprise reviewed its theoretical limits and analyzed its key sources of operational loss; on that basis, it changed its operations to use waste heat to generate additional power, significantly cutting its production costs. Think profit per hour. Review the full profit equation when making changes. Evaluate trade-offs such as throughput, yield, energy, and the environment as a whole—changes in one will likely affect the others. Profit should be the main factor in making final decisions. By applying advanced statistical analysis, a pharmaceutical company was able to increase its yield by 20 percent while using the same amount of energy. Think holistic. Making and sustaining change is not only a matter of technical improvement; it also means changing mind-sets, behaviors, and the management system throughout the organization. Think circular. Consider your product as a future resource that can be used repeatedly, moving from the usual linear supply chain toward supply circles. A global data-services company applied the “think circular” principle by using analytics to design a facility that streamlined energy to its most important function. This resulted in more capacity and less capital expenditure. Around the world, and across sectors, getting smart about energy should be seen as a strategic imperative. The chance to do better is there for the taking. This article is an edited extract from Greening the future: New technologies that could transform how industry uses energy (PDF– 7.50MB). About the authors Harsh Choudhry is a consultant in McKinsey’s Singapore office, where Joris Van Niel is a specialist; Mads Lauritzen is a principal in the Bangkok office, and Ken Somers is a master expert in the Antwerp office.
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The authors wish to thank Sharmeen Alam, Valerie Chan, Markus Hammer, Pieter Hoek, Jochen Latz, David Lee, Carlos Mendes, Azam Mohammad, Jonathan Ng, Abby Phung, Mrinalini Reddy, Khoon Tee Tan, and Oliver Tonby for their contributions to this article.
SUSTAINABILITY
Experts say political will, access to capital are keys to combating water crisis By Sean McMahon on November 19th, 2015 Schwarzenegger, Mycoskie and White say finance a factor in solving water crisis Arnold Schwarzenegger says a lack of political will to back key infrastructure projects is holding back efforts to address water shortages in California and around the globe. Water.org CEO and cofounder Gary White and TOMS founder Blake Mycoskie said even small microfinance efforts totaling hundreds of dollars, not millions, can help alleviate water problems in developing countries. SmartBrief/SmartBlog on Access to capital – in both large and small amounts – plays a huge role in the global water crisis. If you don’t believe that, then go ask the Terminator. Actor and former California Governor Arnold Schwarzenegger took the stage at CME Group’s 8th annual Global Financial Leadership Conference this week and ticked off numerous examples of how a lack of political will and the accompanying infrastructure capital is stifling efforts to solve the water crisis affecting California and other regions around the world. “We need our leaders to develop the political will to invest in projects that won’t be ready for photo ops or the next election cycle, but will be ready for the next generation,” Schwarzenegger said. Schwarzenegger said the way California infrastructure is designed to deal with rain water is one example of outdated infrastructure that 100
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can’t be updated without capital commitments. Right now, the system is designed to funnel water back into the ocean. “The one place that doesn’t need more water is the ocean,” Schwarzenegger explained. Yet a new system that would collect rain water and store it for future use would be a massive infrastructure project with a hefty price tag. However, not every aspect of the water crisis requires a multi-billion dollar solution. Schwarzenegger’s speech at the event was followed by a panel discussion where he was joined by Water.org CEO and co-founder Gary White and TOMS Founder Blake Mycoskie. White and Mycoskie help lead initiatives in developing parts of the world where access to water is a daily challenge. In some places, the poor have little choice but to pay the local “water mafia” small fees every day for access to water sources. “It is expensive to be poor,” White noted. “You can afford a dollar a day to the ‘water mafia’ but can’t afford the $200 to install toilet.” This is where small amounts of capital, also known as microfinance, can make a huge difference in safe and sound access to water. White added that the ability to “unleash the capital markets” can compliment the work of charities and “nudge” the expansion of microfinance initiatives. When most people think of the “water crisis,” they think of water access and security as developing countries. However, all three panelists addressed the pricing of water in the developed world also contributes to the crisis. If water is cheap, people will use more of it. Schwarzenegger explained that water is twice as expensive in Sydney, Australia as it is in San Diego, California. Not surprisingly, people in San Diego use more water per capita than their peers in Sydney. Solving the water crisis might mean charging more for water in places where it is already readily accessible. “It is a question of whether we are going to pay more now, or a lot more later,” Mycoskie said.
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SUSTAINABILITY
Saving the ocean from plastic waste An estimated eight million metric tons of plastic waste leaks into the ocean every year. Action in just five countries could stem that tide. November 2015 Source: http://www.mckinsey.com/insights/sustainability/saving_the_oce an_from_plastic_waste?cid=other-eml-alt-mip-mck-oth-1511
The amount of unmanaged plastic waste entering the ocean has reached crisis levels. On current trends, the global quantity of plastic in the ocean could nearly double to 250 million metric tons by 20251 —or one ton of plastic for every three tons of fish. Yet a collective response by ocean states, especially by the handful of Asian countries with particularly high volumes of unmanaged plastic waste, could almost halve this total, mitigating the mounting environmental and economic damage (exhibit). This is the critical finding of a joint report by the Ocean Conservancy and the McKinsey Center for Business and Environment, Stemming the tide: Land-based strategies for a plastic-free ocean. Our comprehensive investigation found that more than 80 percent of ocean plastic comes from land-based sources rather than oceanbased sources such as fisheries and fishing vessels. Of that 80 percent, three-quarters comes from uncollected waste, and the remainder from leaks from within the waste-management system itself. Critically, our research found that more than half of the plastic leaking into the ocean comes from just five countries: China, Indonesia, the Philippines, Thailand, and Vietnam. As an immediate priority, we believe there is an opportunity to reduce plastic-waste leakage by 65 percent in these five countries—resulting in a 45 percent reduction globally—through measures including closing leakage points within the collection system, increasing waste-collection rates, using a
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variety of technologies to treat waste, and manually sorting high-value plastic waste. Our report identified six cornerstones of a concerted program to stem global plastic-waste leakage: 1. obtaining real and meaningful commitments from national governments, governors, and mayors to set and achieve ambitious waste-management targets 2. providing local “proofs of concept� for integrated wastemanagement approaches in a number of carefully selected pilot cities 3. building a best-practice transfer mechanism of global expertise to high-priority cities 4. ensuring required project-investment conditions are in place 5. facilitating technology implementation by equipping technology providers with detailed data 6. bringing leadership and a strategic focus on solutions as part of the global policy agenda on the ocean The total cost of implementing measures to reduce plastic-waste leakage is estimated at $5 billion a year and would, to a significant degree, be covered by existing commitments to build wastemanagement systems. Additional funding requirements could be met through typical project-financing mechanisms involving the public, private, and multilateral sectors. Plastic-waste leakage is an enormous (and unintended) consequence of our attempt to provide a better material existence to millions of people through a constant series of innovations. But no one feels untouched by the sight of ocean litter, its impact on fauna, and the facts emerging research has brought to light. We believe there is a path forward that can generate significant benefits to communities, preserve the bioproductivity of the ocean, and de-risk industry. The time to act is now.
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HSE Phillips 66 updates earthquake protocols U.S. oil company shakes up quake plans after Oklahoma temblors HOUSTON | BY LIZ HAMPTON Read more at Reutershttp://www.reuters.com/article/2015/11/24/us-oklahoma-quakesidUSKBN0TD18X20151124#qKxSCM8LBTiGChef.99
Phillips 66 has added protocols for crude oil tank inspections, earthquake alert monitoring and possible pauses in operations after tremors following rising seismic activity near Cushing, Okla. Phillips' "seismic response protocol was developed as part of our enhanced geohazard program, which addresses geotechnical, hydro technical and seismic hazards," the company said. Reuters (11/24)
Phillips 66 has overhauled how it plans for earthquakes, a sign U.S. energy companies are starting to react to rising seismicity around the world's largest crude hub in Cushing, Oklahoma. The changes include new protocols for inspecting the health of crude tanks, potentially halting operations after temblors, and monitoring quake alerts. The revisions, fully implemented in 2015 and first detailed to Reuters this past week, appear to mark the most significant acknowledgement by a major energy company that its seismic procedures were recently updated.
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They also come as some researchers say tougher standards for energy infrastructure such as pipelines and tanks could be needed to handle an uptick in quakes since 2009 in Oklahoma. Scientists have tied a sharp increase in the intensity and frequency of quakes in Oklahoma to the disposal of saltwater, a normal byproduct of oil and gas extraction work, into deep wells. Oil fields have boomed in Oklahoma over the past decade thanks to advances in hydraulic fracturing and horizontal drilling. A 4.7 magnitude quake struck in Oklahoma on Thursday, the strongest temblor there since 2011. About a month earlier, a 4.5 magnitude quake hit near Cushing. Regulators responded by calling for nearby disposal wells to shut or curb intakes. Phillips, a refiner, has 167,000 barrels per day of pipeline capacity and 700,000 barrels of storage tanks at Cushing, home to about 57 million barrels of crude and a nexus for U.S. supply, according to a 2015 investor presentation. Though its new protocols apply to all its U.S. infrastructure, when asked specifically about potential Cushing risks, Phillips said its "seismic response protocol was developed as part of our enhanced geohazard program, which addresses geotechnical, hydrotechnical and seismic hazards." To be sure, most oil companies test the integrity of tanks on an ongoing basis and many told Reuters their tanks are built to the latest construction standards and building codes. But some scientists are questioning whether standards should be tightened. Geologists led by D.E. McNamara of the USGS said in a September academic paper that including human-caused quakes in the National Seismic Hazard Model, a reference for engineers, "would result in serious implications for design standards." Currently, man-made quakes are also not accounted for in tank standards published by the American Petroleum Institute (API), an
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industry group, and design loads from the American Society of Civil Engineers. Strong quakes in regions outside Oklahoma have split steel as rolling ground motion puts the weight from the liquids on one side of the tank, known as "elephant footing," said Thomas Heaton, a professor at California Institute of Technology. Engineers told Reuters most tanks in Cushing rank in Seismic Use Group 1, the weakest classification in API standards. TransCanada Corp said its seven Cushing tanks are in SUG 1.The largest quake in Oklahoma was 5.6, a level with potential to damage tanks. Tanks normally have containment berms to catch leaking oil. "Anything more than a 5.0 you have to worry about a little more," according to MuraleeMuraleetharan, a civil engineering professor at the University of Oklahoma. (Reporting By Liz Hampton; Editing by Terry Wade and Christian Plumb)
HSE Chennai Petroleum shuts 210,000 bpd refinery due to flooding By Reuters | 3 Dec, 2015, NEW DELHI: Chennai Petroleum Corp Ltd shut its 210,000 barrels per day (bpd) Manali refinery on Wednesday night due to heavy flooding in the southern state of Tamil Nadu, Managing Director Gautam Roy told Reuters on Thursday. "We have shut down the entire refinery from last night due to heavy rains and floods," Roy said, adding the smaller 20,000 bpd Nagapattinam refinery was operating normally. Chennai Petroleum is a unit of the country's biggest refiner, Indian Oil Corp... Source: http://economictimes.indiatimes.com/
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HSE Bad air: Delhi races ahead of Beijing Jayashree Nandi, TNN | Dec 4, 2015, 03.39AM IST NEW DELHI: After a neck-and-neck race with Beijing over the past few winters, Delhi may soon find itself without a rival for the 'most-polluted-city' crown. The Chinese city is doing its best to fall behind although, as happened last week, it sometimes nudges ahead with a wind-aided spurt. A recent assessment by Beijing-based Greenpeace East Asia shows that between August 2014 and August 2015, Delhi's levels of PM2.5 (fine, respirable pollution particles) were far higher than those in Beijing.
HSE Fire erupts at largest Pemex refinery in Mexico as workers suffer injuries 11.25.2015 | A Pemex spokesman said the fire was controlled and that the refinery, which supplies fuel for Mexico, was operating normally except for an alkylation unit. The refinery has 330,000-bpd of capacity. Keywords: A fire erupted at Mexico's biggest oil refinery on Tuesday and some staff were evacuated, a spokesman for state-run oil company Pemex told news agency Reuters. This week's fire at the Salina Cruz refinery is the latest in a string of incidents to hit the company's refineries.
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The Red Cross said nine people were injured. Meanwhile, Pemex said eight people suffered minor injuries and were being treated, according to the Reuters report. A Pemex spokesman said the fire had been controlled and that the refinery, which supplies fuel for Mexico's domestic market, was operating normally except for an alkylation unit. The refinery has 330,000-bpd of capacity. Photographs taken by emergency services workers showed a blazing fireball and a thick black plume of smoke rising up into the sky from the facility located in the city of Salina Cruz in the southern state of Oaxaca. The cause of the fire was not yet known. Luis Velazquez, a civil protection agency official in Oaxaca, told Reuters that nearby schools were evacuated and that local hospitals were on red alert to treat any injured. "This is a highly populated zone," he said, according to Reuters. Earlier this month, Pemex said that it had reduced its annual accident rate by more than 33%. However, aReuters investigation earlier this year found that Pemex was reducing its accident rate by including hours worked by office staff in its calculations, the news agency reported. There have been a series of recent fires at Pemex facilities including refineries and oil platforms, which comes as Mexico seeks to lure private investors to its domestic energy industry. In 2013, at least 37 people were killed in an explosion at Pemex's Mexico City headquarters, and another 26 people died in a fire at a Pemex natural gas facility in northern Mexico in September 2012.
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HSE REFILE EXCLUSIVE-Partner in Canada's Energy East struggled with pollution controls By Dave Sherwood and Richard Valdmanis, Reuters Mechanical problems making it hard for Irving Oil to limit pollution
Irving Oil's marine terminal in New Brunswick has had difficulty controlling air pollution due to mechanical problems with its vapor recovery unit, according to company records. The records indicate the equipment was shut down about 37% of the time from December 2012 to March 2015, although a company spokesman said the VRU's performance has been available 96% of the time since June. Research commissioned by the Conservation Council of New Brunswick in 2009 showed lung cancer rates in the city 50 percent higher than in the capital Fredericton, though the research was unable to identify a cause. Reuters (11/11/2015) Irving Oil, the company seeking to become the gatekeeper for a new crude oil pipeline from western Canada to the Atlantic Ocean, has struggled to control air pollution at its existing marine terminal in Saint John, New Brunswick. Irving Oil records reviewed by Reuters show the vapour recovery equipment at the terminal on the edge of the province's largest city was shut 37 percent of the time between December2012 and March 2015 due to near-constant mechanical problems, as millions of barrels of gasoline were loaded onto ships mainly bound for New England. Official data on the unit's operations after March 31, 2015, were not immediately available, but an Irving Oil spokesman said the vapour recovery unit's (VRU) performance had been nearly flawless since June. "The VRU has routinely met and surpassed our operational and performance goals," spokesman Andrew Carson said. "For 109
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example, since June 2015 the VRU's availability has exceeded 96 percent and over the same timeframe has shown an average vapour recovery rate above 93 percent." The terminal handles fuels from the company's 300,000-barrel perday Saint John oil refinery, Canada's largest, and is thesource of about one in three gallons of gasoline imported into the U.S. Northeast. Vapours can escape during ship loading when fuels are briefly exposed to open air. Scrutiny of family-owned Irving's environmental record has intensified as it seeks approvals to build a new, larger export terminal and tank farm nearby to serve TransCanada's Energy East, now broadly seen as the most viable Canadian oil sands pipeline project after its Keystone XL pipeline to the United States was rejected by the Obama Administration last week. Energy East would carry some 1.1 million barrels of western Canadian crude per day more than 2,800 miles (4,600-km) to New Brunswick by 2020, for the first time linking trillions of dollars worth of oil reserves with overseas markets. Irving plans to build and operate a C$300 million ($226 million)storage tank facility capable of serving more than 100ocean-going tankers per year. Newly elected Canadian Prime Minister Justin Trudeau has promised to continue to support development of Canada's oil sands riches but has emphasized the importance of rigorous environmental review, and of building community support. MECHANICAL BREAKDOWN
The C$26 million vapour recovery unit, installed at the East Saint John terminal by Irving in 2011, is designed to reduce air pollutants such as volatile organic compounds (VOCs), some of which have been shown to increase the risk of cancer. Irving said it expected the unit to recover up to 90 percent of VOC emissions during gasoline loading.
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But the equipment suffered mechanical issues within months of start-up. They started worsening in 2012, particularly during winter months, according to the records. In the first three months of 2015 the unit was offline 78 percent of the time, compared with 38 percent in 2014 and 25 percent in 2013. Carson, the Irving spokesman, did not address questions about the unit's mechanical problems between late 2012 and early2015. But he said the unit's installation had cut pollution from the terminal sharply from 2010 levels, and added that Irving believed its long-term environmental and safety record positions the company well to operate a new terminal for Energy East. In 2012, the first full year the equipment was in operation, VOC emissions from the East Saint John terminal dropped to 156tonnes, from 623 tonnes in 2010. They have since risen, to 181tonnes in 2013 and 265 tonnes in 2014, according to data compiled by Environment Canada. Irving detailed the mechanical issues in monthly reports issued to the New Brunswick Department of Environment and Local Government. The company's provincial permit for the terminal, signed in December 2012, lists maintaining the vapour recovery unit as a requirement to operate, and says Irving must "ensure consistent and effective VOC recovery operations with minimal downtimes." A spokeswoman for the department of environment said it was working with Irving to address "challenges" with the unit but said it had received very few local complaints since it was installed. She did not respond to questions about whether Irving had violated its permit, or whether officials had informed residents about the equipment failures. ENERGY EAST GATEKEEPER
Air quality is a touchy issue in Saint John, where Irving-owned businesses dominate the skyline - Irving's Atlantic Wallboard, Irving 111
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Tissue, Irving Pulp and Paper, Irving Canaport, the Irving refinery many of them belching white exhaust into the air around downtown. Research commissioned by the Conservation Council of New Brunswick in 2009 showed lung cancer rates in the city 50percent higher than in the capital Fredericton, though the research was unable to identify a cause. InkaMilewski, a New Brunswick-based scientist who advises the Conservation Council and authored the peer-reviewed study, said the problems at the East Saint John terminal should cast doubt on Irving's Energy East partnership. "With the company unable to manage the existing problems and the province unwilling to be more proactive in their enforcement of operating approvals, any talk of building a new 18-tankstorage facility and marine terminal is simply irresponsible, "she said. Environmental fears over the project have mainly focused on the risk of pipeline spills, but critics have also raised concerns about the safety of storage and shipping. Irving has logged at least 19 accidents classified by regulators as "environmental emergencies" at its facilities since 2012, according to documents previously detailed by Reuters. Irving said at the time that its refinery is one of the lowest sulfur dioxide emitters in North America and that the company had invested more than C$300 million over the last decade to enhance its environmental performance.($1 = 1.3250 Canadian dollars) (Editing by Alden Bentley and Ken Wills)
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THE BANYAN TREE
Improving Capital Projects with Modularization November 13, 2015 Capital projects drive growth in the oil and gas industry and, yet, are plagued by cost and schedule overruns. In 2015 there were an estimated 800 oil and gas projects costing over $500 billion and onethird will end up facing delays. Operators are constantly searching for ways to improve performance, meet schedules, and reduce costs. This is particularly important in the low-oil price environment that companies are facing today. Modularization and standardization can help improve the delivery and cost performance of capital projects in the oil and gas industry. These terms refer to the practice of using standardized methods and equipment with the aim of reducing redundancy and thereby time and costs across projects. Modularization and standardization are often used in tandem, but are different from each other. Modularization is the practice of using similar components and equipment, often prefabricated at an off-site location, to reduce time and costs. Standardization is the practice of using methods across many different projects. There benefits from implementing both modularization and standardization: There is a significant amount of opportunity for companies to implement modularization and standardization. It is estimated that the correct implementation of standardization and modularization can reduce overall time by 20% as well as costs by up to 15%. For example, BP has estimated that $10-$15 million dollars
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are spent per project on recreating procurement specifications. Streamlining this process would be an example of standardization. Even though companies like BP have identified areas where modularization and standardization can be applied, there has been limited application of these practices across the industry. Figure 1 shows the percentage range of projects where standardization can be applied across the oil and gas value chain.
Figure 1 Modularization has grown and is now having a large impact on capital projects:Although there has been a lot of talk about standardization and the cost and scheduling benefits are well understood, there has been limited application until now. This is reinforced in a recent comment by the CEO of FMC Technology, John Gremp, and some insight he offered at the 2015 Offshore Technology Conference, when he said, “I think if I hear the word standardization (again) I am probably going to go nuts. We have been talking about this for at least three decades, and yet the ability to truly standardize our industry has eluded us – until maybe now.� Modularization has expanded from being centered around processes and engineering to encompassing almost all aspects of capital projects. Further, a number of projects of varying types have reported the use of modularization. Figure 2 shows how modularization has expanded over multiple project and technological cycles. 114
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Figure 2 For example, both Shell and BP have successfully deployed modularization in their recent capital projects. Shell has chosen to modularize subsea tree platforms and the result has been a reduction in delivery times by as much as 12 months. Additionally, a CO2 recovery project in Canada, Quest, was not economical during the planning stages due primarily to high labor costs from construction workers. However, after the EPC contractor, Fluor, applied its third generation of modularization practices, the project it became economical. The project was recently completed under budget and on time. As another example, BP chose to modularize a delayed coking unit in Whiting, IN. The $1.3 billion dollar project included 93 modules weighing over 17,000 tons. The modules were constructed in the Philippines and shipped to the United States via the Panama Canal and then ultimately though Lake Michigan. Figure 3 shows several examples of how BP and Shell have implemented modularization.
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Figure 3
Modularization can lead to issues if done incorrectly or managed poorly: There are several hurdles that an operator must address to successfully deploy and benefit from modularization. For example, an operator must manage two different work sites: the main project site and the fabrication site for the modularized pieces. This can lead to communication and logistical gaps if not managed properly. Transporting the modules themselves can be difficult if they are too large or heavy to be transported by road. This leads to a need for greater logistical planning preceding a capital project. Once the modules are delivered to the site there must also be a greater level of coordination to ensure that the facility is constructed properly. Lastly, with most of the work being done before the modules are assembled, there is a need for a large amount of front end engineering. Although there are some hurdles that must be overcome before an operator can successfully implement standardization and modularization into a project, the benefits of a reduced construction time, lower overall cost, and successful implementation from major players in the industry suggest it is growing more attractive. 116
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-Tyler Wilson and UdayTuraga
8 QUALITIE OF A STRONG MENTOR “Mentoring is a brain to pick, an ear to listen, and a push in the right direction.” ~ John C. Crosby One of the most important roles of a leader is to provide workplace supervision. It is our duty to manage others in their work – particularly those who are newer and/or less experienced — and ensure that they perform their duties correctly and on schedule. Without such supervision, it is generally assumed that workers will slack and underperform. But if we want our people to grow in their positions and achieve optimal job satisfaction and retention then we need to also provide mentorship. (A 2013 Vestrics study found that employee-retention rates in their sample group of mentors and mentees climbed 69% for the mentors and 72% for the mentees over a seven-year period.) Mentorship is a relationship that is created between an experienced professional and a less experienced mentee or protege. Its primary purpose is to build a support system that allows for the natural exchange of ideas, a forum for constructive advice, and a recipe for success.
Credit: Behappy.me Superior mentors possess most if not all of the following qualities: 1.
Skilled and knowledgeable. Good mentors possess current and relevant knowledge, expertise, and/or skills.
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2.
Trust builder. The mentor establishes a high level of trust. He/she indicates that their relationship is about building capacity and offering support, not “zapping” the mentee for poor decisions or performances. 3. Active listener. A strong mentor knows how to listen. This includes using eyes and body posture to convey interest and attention. More about strong listening skills can be found here. 4. Strong analyst. Mentors must be able to analyze what needs to get done and then help the mentee create an action plan for success. They also need to be able to see how the worker’s abilities align with the task and help him/her optimize his/her strengths towards that end. 5. Honest, clear communicator. It is important for mentors to be super clear about what the job entails as well as what they are observing. Be honest and specific about what is or is not working and use measurable criteria to assess performance. 6. Committed and reliable. Mentees should know that they can trust their mentor to be there for them and help them through until the very end. On a related note, good mentors are sincerely interested in helping someone else without any “official” reward. They do it because they genuinely want to see someone else succeed. 7. Role model. Ideally, the mentor should be everything that the mentee needs to become, as an employee and as a person. Realize that the mentee will be studying you closely and will draw deeply from your actions and values. 8. Cheerleader. This is perhaps the most important quality of all. Mentors need to be a source of inspiration for their mentees, especially when the pressure to perform mounts. Guidance coupled with a healthy dose of encouragement can be the magic formula to ensure a mentee’s short and long-term success. 9.
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Naphtali Hoff (@impactfulcoach) became an executive coach and consultant following a 15 year career as an educator and school administrator. Read his blog at impactfulcoaching.com/blog.
The power of hiring for values HBR NOV15 Southwest Airlines hires less than 2% of applicants, citing a determination to hire people for the right values, writes Julie Weber, the company's vice president of people. Doing so is the only way to build a respectful, ambitious and passionate workforce, Weber argues. "We often talk about how we can evolve to compete to attract and retain the best talent, and we always agree that hiring and promoting for values is something we can't ever change," she writes.Harvard Business Review online (tiered subscription model) Southwest Airlines receives a job application every two seconds. Given the talent shortage facing our industry, you’d think we’d be tempted to snap up many of those candidates, particularly ones with backgrounds in engineering and technology. But, since the company was founded, even before our first flight on June 18, 1971, we’ve been extremely selective in our hiring. So far this year, for example, we’ve reviewed 287,422 resumes, chosen 102,112 candidates to interview, and hired only 6,582 people, or less than 2% of all applicants. 119
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That’s because we view engagement as a two-way street. Yes, an employer must work to keep employees engaged by offering good pay and benefits, opportunities for development and advancement and a collaborative, mission-driven culture. But you also have to hire people who are engaged from the start, whose values are in sync with the organization’s. At Southwest, for example, we talk about hiring not for skills but three attributes: a warrior spirit (that is, a desire to excel, act with courage, persevere and innovate); a servant’s heart (the ability to put others first, treat everyone with respect and proactively serve customers); and a fun-loving attitude (passion, joy and an aversion to taking oneself too seriously.) We’ve found that it’s important to clearly define these expectations — they’re listed on every job description — and build our interviewing methodology around them. The mentality isn’t “We’ll know it when we see it.” It’s “Does this person already live the way we do?” We use behavioral interview questions to determine whether candidates have those key attributes. For example, to determine someone’s ability to be a passionate team player, we will ask him or her to describe a time when he or she went above and beyond to help a co-worker succeed. We also conduct what we call a career motivation interview to determine if the candidate really understands the job he or she is applying for and if it is aligned with his or her career goals.
How to Make a Company That People Love It takes a careful mix of mission, management, and culture. Obviously, certain positions require specific skillsets. We’re not going to hire a pilot who has a great attitude but can’t fly a plane!
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But, if it comes down to two equally qualified candidates, the one with Southwest values will receive the offer. And, more importantly, when we’re faced with a qualified candidate who doesn’t have the right values, we won’t make an offer — no matter how long the job has gone unfilled. Our development and promotion practices are also tied to our company values. In annual performance appraisals and 360-degree reviews, employees are measured not just on results but on how they get results (they get actual ratings for their warrior spirit, servant’s heart and fun-loving attitude) and the people who rise to leadership roles are those who display those attributes in spades. Anyone being considered for a position at director level or above has a final interview with either me or Jeff Lamb, executive vice-president of corporate services. It’s time consuming, but that’s how committed we are to making sure that Southwest’s leaders serve as diligent, selfless, passionate role models for everybody else. We often talk about how we can evolve to compete to attract and retain the best talent, and we always agree that hiring and promoting for values is something we can’t ever change. In a 2014 employee survey, when we asked whether people felt like their job was “just a job,” “a stepping stone,” or “a calling,” nearly 75% selected, “a calling,” and 86% said they were proud to work for Southwest. So hiring for values seems to be working from our employees’ perspective as well as ours.
What Amazing Bosses Do Differently Sydney FinkelsteinNOVEMBER 27, 2015 HBR We all know that job satisfaction often hinges on the quality of the relationships we have with our bosses. Yet in today’s rapidly evolving, 24/7 workplaces, it’s not always clear what managers should do to 121
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create the most satisfying work experiences and the happiest employees. My research into the world’s most successful bosses has unearthed some common practices that make work much more meaningful and enjoyable. If you supervise others, make sure you do the following: Manage individuals, not teams. When you’re under pressure, it’s easy to forget that employees are unique individuals, with varying interests, abilities, goals, and styles of learning. But it’s important to customize your interactions with them. Ensure you understand what makes them tick. Be available and accessible for one-on-one conversations. Deliver lessons cued to individual developmental needs. And when it comes to promotion, look past rigid competency models and career ladders for growth opportunities tailored to the ambitions, talents, and capacities of each person. Dr. Paul Batalden, a professor emeritus at Dartmouth College’s Geisel School of Medicine, who previously worked under Tommy Frist at healthcare giant HCA, told me that his former boss was “such an unusual CEO” of a company that size. “You could always get to see him. He always had time.” Samuel Howard, another Frist protégé who is now CEO of Xantus Corp, added, “when you asked him to do something, he would roll up his sleeves” and work with you to get it done. Go big on meaning. Most employees value jobs that let them contribute and make a difference, and many organizations now emphasize meaning and purpose in the hopes of fostering engagement. But this is also the manager’s responsibility. You can’t rely on incentives like bonuses, stock options, or raises. You’ve got to inspire them with a vision, set challenging goals and pump up their confidence so they believe they can actually win. Articulate a clear purpose that fires your team up, set expectations high, and convey to the group that you think they’re capable of virtually anything. 122
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Legendary bosses like Bill Sanders in real estate, Julian Robertson in hedge funds, and Bill Walsh in professional football all communicated visions that entranced employees and left them hell-bent on success. Scot Sellers, a protégé of Sanders who went on to become CEO of Archstone before retiring in 2013, recalled that his former boss “would lay out his vision and say, ‘I would like you to be a part of it.’ You were so honored to be asked… that you just wanted to jump in and say, ‘Sign me up!’” Focus on feedback. A 2013 Society for Human Resource Management survey of managers in the U.S. found that “only 2% provide ongoing feedback to their employees.” Just 2%! Many bosses limit themselves to the dreaded “performance review” and often mingle developmental feedback with discussions about compensation and promotion, rendering the former much less effective. As I’ve written elsewhere, some organizations are changing their ways, but even if yours sticks with traditional reviews, you can still supplement that with the kind of continuous, personalized feedback that the best bosses employ. Use regular—at least weekly—one-onone conversations to give lots of coaching. Make the feedback clear, honest and constructive, and frame it so that it promotes independence and initiative. Hedge fund manager Chase Coleman remembered that his former boss and backer, Tiger Management founder Julian Robertson, was “very good at understanding what motivated people and how to extract maximum performance out of [them]. . . . For some, that [meant] encouraging them, and for others, it [meant] making them feel less comfortable. He would adjust his feedback.” Don’t just talk… listen. Employees tend to be happiest when they feel free to contribute new ideas and take initiative, and most managers claim they want people who do just that. So why doesn’t it happen more often? Usually the problem is that bosses promote their own views too strongly.
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Employees wonder: “Why bother taking risks with new ideas when my boss’s views are already so fixed?” The best leaders spend a great deal of time listening. They pose problems and challenges, then ask questions to enlist the entire team in generating solutions. They reward innovation and initiative, and encourage everyone in the group to do the same. Football coach Walsh went out of his way to encourage input not only from his assistant coaches, but also from the players themselves. He did this before the game, during the game, and afterwards when watching game film. This more collaborative approach probably had something to do with his track record with the San Francisco 49ers: six division titles, three NFC Championship titles and three Super Bowl wins. Be consistent. Who could be happy with a boss who does one thing one day and another thing the next? It’s hard to feel motivated when the bar is always shifting in unpredictable ways and you never know what to expect or how to get ahead. So be consistent in your management style, vision, expectations, feedback and openness to new ideas. If change becomes necessary, acknowledge it openly and quickly. Kyle Craig, who worked with restaurant impresario Norman Brinker at Burger King in the 1980s, remembered his boss’s consistent humility. “He was never unwilling to admit his failures and mistakes, which puts people around him very much at ease.” Bill Walsh, meanwhile, came across as consistently confident. As former 49ers wide receiver Dwight Clark remarked, “There was just an attitude. He walked with a strut almost—not cocky, just very confident.” These superbosses had dramatically different approaches, yet both worked well because they were consistent. No behavior a boss adopts will guarantee happy employees, but managers who follow these five key practices will find that they will help improve well-being, engagement, and productivity on any team. 124
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The common denominator is attentiveness. Pay close attention to your employees as individuals. Take that extra bit of time to build their confidence and articulate a vision; to provide constant, ongoing, high quality feedback; and to listen to their ideas. And ensure that your own messages are consistent. Is it hard work? Yes. But it’s worth it.
Economics of relationships Dec 02 2015, Financial Chronicle It’s funny how the laws of economics can be alternately applicable to transactions and relationships. You could call it irony — every relationship is somewhat transactional — or you could call it universal synchronisation. Economics is, after all a social science, and so mirrors the intricate network of society. The Law of Variable Proportions, also referred to as diminishing returns, takes into account the relation between factors of production and changes in returns experienced when one factor is increased while holding all the other factors constant. The law states that as more and more units of one factor are added, the addition to net yield keeps diminishing. It is important to remember that the yield itself does not diminish, but the increment diminishes with additional inputs. Of course, beyond a point the yield itself may also become negative. For instance, adding more fertiliser inputs increases crop yield per unit of land but additional inputs would not cause a proportionate
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increase in crop yield and excessive addition might cause the crop output to become negative. Relations between people function much the same way: between friends, colleagues, siblings or spouse. People are factors in a ‘productive’ relationship — and all relationships are meant to be so, producing companionship, joy, care, comfort as well as mutual growth. When one factor remains ‘fixed’ even as the other keeps putting in added inputs, the relationship must necessarily experience ‘diminishing returns. That is to say, one person remains uncompromising and rigidly adheres to a narrowly defined course of thought and action while the other is forced to make all the adjustments to keep it going. When the second person assumes a perennially submissive role, giving in each time there is a conflict of opinion, the relationship will, over time, experience a declining curve of emotional fulfilment and quality of life. The declining curve might occur in an unhealthy professional relationship: colleagues in senior and subordinate positions or the employee-employer tie; or it might be more personal such as that of siblings. The chances of snapping of ties accelerate in such scenarios, but even without that, an unfulfilling relationship is a mockery of itself. Spousal relationships tend to suffer heavily from prolonged ‘diminishing returns’ that get scarce attention, particularly in places where the snapping of spousal ties is frowned heavily upon. On the surface the relationship might be unbroken but if one partner is expected to change his or her behaviour every time to accommodate the other, the happiness level would steadily decline, with psychological suffocation setting in. If that doesn’t result in overt quarrels and confrontations, it would result in emotional withdrawal. Unfortunately, these diminishing returns are non-quantifiable. On the other hand, using ‘returns to scale’, the entire curve can be pushed upward. When both factors become variable, production process experiences returns to scale instead of returns to factor. Now returns to scale are also classified as increasing, constant and 126
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diminishing, but there is no actual negative yield here. If double the input produces double the output, the returns are constant; if double input produces more than double output the returns would be increasing; and if double input produces less than double output, the returns would be diminishing. Put simply in relationship terms, when both partners assume flexibility, the fulfilment curve shifts upwards, creating a happier, healthier, synchronised connection. (The writer loves to write) Columnist: Zehra Naqvi
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Is your glass half full or half empty? Abundance theory in the workplace By Naphtali Hoff on December 9th, 2015 “He who wishes to secure the good of others has already secured his own.” ~ Confucius Leaders should start embracing "abundance theory," which claims that every glass is at least half full, and there's plenty to go around, writes Naphtali Hoff. That optimistic, non-zero-sum approach is a smart way to avoid turf wars, to fuel workplace collaboration, and to unite teams around common solutions, Hoff writes. "Abundance thinkers understand that with the victory -- measured by their ability to work together and support each other -- comes the spoils," he argues.
A few years back, I made the decision to shift careers from school leadership to that of executive coach and consultant. To that end, I enrolled in a doctoral program studying human and organizational psychology. In my first course, I was told to interview someone who was in the same field that I sought to pursue and ask that person a series of questions relating to their career path. After doing some research, I found two successful women who fit the bill. While both were pleasant to speak with and generous with their time, one in particular, a coach and trainer, shared some things that really made an impression on me. She said that she had benefited from others’ expertise when she had gotten started and was always looking for ways to “pay it forward” to other aspiring professionals. The fact that I was planning to move to her general area and serve similar clients did not deter her from freely giving advice. She even met me on another occasion over lunch to talk further about how to help me transition and grow my business.
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This woman’s behavior not only helped me to get started but she also inspired me to rethink a lifelong script that had become part of my inner thinking and attitude. I refer specifically to scarcity theory.
Scarcity theory, a term coined by Stephen Covey, suggests that everything in life has its limit. Whether that thing is a spot on the team roster, a scholarship, a job, customers, funding, promotions or something else, we need to hoard as much as possible for ourselves because there is simply not enough to go around. This same theory also says that there are limited ways to achieve success, and that anyone who wishes to make it must follow the same path and prescription that others have done previously. To the abundance theorist, there will always be room on the bench for one more player, and that the new guy will not detract from their ability to earn a livelihood or achieve other professional or personal goals. The world offers plenty; our job is to know how to go out and find it, then share some of it with others. Moreover, to the abundance practitioner, the more is often the merrier. Consider coaching. Not only does the presence of more coaches not detract from individual coaches’ underlying ability to engage and support sufficient clients, but it also generates added awareness about the importance of coaching as a service and lends
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credibility to the field by increasing the number of qualified practitioners. In addition, the more minds that are applied to solving issues and creating solutions, the better for everyone. If one coach develops tools that help clients, he or she can share that success with others and raise the collective coaching standard. The benefits of abundance thinking extend to leaders as well. Teams and organizations that think “we first” tend to outperform their competition. They are less consumed with internal territorialism and personal recognition and focus instead on finding solutions and improving performance. Abundance thinkers understand that with the victory — measured by their ability to work together and support each other — comes the spoils. Some leaders may find abundance theory to be a tough sell. We noted above that most folks have been taught at one point or another that there are finite limits to many of the things that they desire. Leaders, for their part, may have also adopted a scarcity mindset as they moved along their educational and professional pathways. How can they now turn around and preach abundance? The following strategies may help: 1. Describe the merits. For many, abundance thinking is foreign. In order for leaders to rewrite their people’s thinking, they must list the many benefits of abundance theory, such as the ones listed above. 2. Recognize and reward those who are inclusive. Leaders should note examples of abundance thinking and action in the workplace and shine attention on them. If they can reinforce such actions with some form of reward, all the better.
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3. Create opportunities for idea sharing. Model AT by giving people a chance to provide input and wrap their heads around issues. Emphasize how good ideas from one will benefit the entire group and possibly more. 4. Remind yourself that there is more than enough. Leaders who are not scripted in AT need to continually remind themselves of it and its implications. When considering options and making decisions, place a reminder squarely in front of you to ensure that you are being mindful of it when it matters most. 5. Make it a workplace competency. As with other job-related qualifications, leaders should look for evidence of AT when hiring new personnel. Certainly, it would be a good quality for team leaders to possess. 6. Get out of the rat race. Spend less time just doing and more time in reflection. This will offer you a deeper perspective and slow things down a bit. The end result will typically be some bigger picture thinking. 7. Give more of what you want. One of the best ways to increase your abundance is to give. People appreciate generosity and often find ways to give back. Naphtali HoffNaphtali Hoff (@impactfulcoach) became an executive coach and consultant following a 15-year career as an educator and school administrator. Read his blog at impactfulcoaching.com/blog.
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F2F We’re working with the govt in areas it needs help: Nathealth President JESSU JOHN Sushobhan Dasgupta, Managing Director, Johnson & Johnson Medical India and President, Nat health. ‘We are focusing on training and skilling of physicians, nurses, assistants and technicians’ A couple of years ago, Healthcare Federation of India (Nathealth) signed anMoU with Nasscom to deliver remote healthcare services across the country. And since the Federation’s inception three years ago, Nathealth reports beefing up its objectives across a range of pillars. According to Sushobhan Dasgupta, Managing Director, Johnson & Johnson Medical India and President, Nathealth, the Federation is committed to the ‘Make in India’ movement and has focused keenly on skill development to bridge the talent gap in healthcare. In a conversation with Business Line, Dasgupta addressed the need for building the industry’s image through Nathealth while also elaborating on J&J Medical India’s involvement with communities and government. Edited excerpts: If the idea is to replicate the impact that Nasscom has had in India, what exactly has Nathealth set out to achieve? Nathealth was formed to provide a credible voice to healthcare in India along with working towards accessibility and affordability of healthcare across every segment of the country. We’re focusing on four-five pillars, which include ethics and image building. So, whether it is bridging those trust deficits between the government and private healthcare providers or talking about the good things that are happening in the industry, Nathealth will drive that. We’ve also tied up
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with the Indian Medical Association and are working on a Code of Ethics that will encompass every player in the sector. How much of Nathealth’s mandate is taken up by skilling for the healthcare sector? The current reality is that there are only 0.6 doctors and one nurse available for a population of a 1,000. We’re working towards anMoU with the Healthcare Sector Skill Council (HSSC), which is part of the National Skill Development Corporation, to help them take their skilling agenda forward. HSSC is developing curriculums, platforms and accreditations, while Nathealth’s governing councils will take on training and skilling of physicians, nurses, assistants and technicians. I definitely want us to train 60,000 clinicians a year. Outside the scope of Nathealth, how is Johnson & Johnson in India working with the government? We work with the government where it needs help. Diabetes, cardiovascular and lung diseases are all areas of opportunity, where the government already has a focus. We’ve partnered with the Public Healthcare Federation of India. In gestational diabetes, we’ve built a module for obstetricians, gynaecologists and general practitioners to understand the issue and test for it in pregnant women. We’ve trained 2,500 doctors on that and there’s a lot of progress there. Our work with the Governments of Delhi, Haryana and Himachal Pradesh involves training adolescent girls on feminine hygiene. There are several other things we could do. ‘Make in India’ is an opportunity for us too. What’s happening on ‘Make in India’? Is it a focus area for Nathealth too? As far as Johnson and Johnson’s Medical Devices business goes, 30 per cent of the manufacturing happens in India. We’ve got plants in Mulund, Aurangabad and Baddi. Across Aurangabad and Baddi, we employ close to 700 people. The $100 million we’ve invested in Telangana will cater to our consumer business, but potentially it can serve the medical devices business too. As Nathealth, we’re already looking at how we can work 133
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with government to enable policies that will make ‘Make in India’ more attractive, raise domestic consumption and be able to generate more employment. How’s the partnership with Nasscom playing out? The Nathealth-Nasscom Joint Council is involved in identifying areas where we can create IT infrastructure, enable digitisation of health records and deliver remote healthcare services. What opportunity do you see for private healthcare players in rural India? In rural areas, we work through our company Johnson and Johnson Hospital Supplies, currently catering to 18,000-20,000 nursing homes across Tier-2 and Tier-3 towns. You could consider them semi-urban or rural. But is that enough? No, the real opportunity lies in primary and secondary healthcare centres. The government is focusing on producing tertiary care (AIIMS-like institutions) but there’s a big gap in the primary and secondary care segment. Nathealth has scope here as well for member companies to get together and develop infrastructure for rural India.
Zero waste: An attainable goal? Q&A with Elemental Impact Founder Holly Elmore By Arlene Karidis | November 18, 2015 Source: http://www.wastedive.com/news/zero-waste-an-attainablegoal/409441/ Around the globe, we have echoed a decades-old mantra: reduce, reuse, recycle. For years, this meant making the effort to compost the food, recycle the bottle, or reuse the plastic bag. But through the evolution of the recycling industry, the bar has been raised to attain a higher goal: zero waste.
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It is a philosophy that contends every ounce of salvageable trash — that which can still serve a purpose — can be turned into valued commodities. In embracing this philosophy, its proponents say, we can capitalize on resources while taking some of the load off our landfills. Holly Elmore, Atlanta GA-based Elemental Impact founder and CEO, works with the industry on creating sustainable best practices. Among her work to reach zero waste, she developed Zero Waste Zones, which was acquired by the National Restaurant Association. While the idea has its merits, one may wonder: is zero waste really achievable? If so, how do you convince a "throw-away" society of this lifestyle? And what are ways to get zero waste to make sense from a logistics and economic perspective? Waste Dive caught up with Elmore to address these questions and more. WASTE DIVE: Is Zero Waste attainable? And if so, how do we get there? HOLLY ELMORE: I do think zero waste is attainable. To get to zero waste, you must recognize which materials have value. Set up a system to recycle it. And reduce … If you are a corporation, begin for instance by asking yourself, are you printing more than you have to? Then you replace. An example: with shipments, tell companies you purchase from you want recyclable packaging. There is power in consumer demand. Once you have reduced and replaced, separate valuable material and find a local recycling option. What is key to getting the public to buy into zero waste? ELMORE: You need to cultivate a culture. That culture has to come from the top management down in the case of large organizations. In the community it has to start with the mayor and city council …There should be green team leaders or sustainability leaders who have zero waste responsibilities written in their job descriptions. It should be tied to their compensation and evaluations … There should be good signage and recycling bins. Their use and why we use them should be in newspaper articles. And community leaders should be talking 135
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about this … The Georgia World Congress Center is the world’s largest LEED certified conference center. They were one of the nation’s pioneers in the commercial collection of food waste for composting in 2009. You can’t tell me most people are busier than them. But they make the time because this is in their culture. Can you speak to the role of education in changing a culture? ELMORE: Education is crucial. Charlotte, NC has an MRF that had low contamination rates, but the community spent mega time educating and rewarding residents on clean recycling. The MRF got great material. When they started accepting from other communities, who had not been educated and did not have comprehensive programs with government support, contamination increased. What are the biggest roadblocks to obtaining zero waste? "As long as we view it as trash it will end up in the landfill. We must recognize it as valuable material." ELMORE: It is that mentality that waste is trash. As long as we view it as trash it will end up in the landfill. We must recognize it as valuable material … determining what is trash and separating it once you have reduced and replaced is where challenges happen … Single-stream recycling is a big problem leading to contamination. According to the Container Recycling Institute, about 25% of material sent to MRFs ends up in landfills due to contamination. And one person or corporation can contaminate an entire single-stream load, with two main contaminants being food and glass. How do you address this road block? ELMORE: First know that according to US Zero Waste Business Council, you can only claim 100% zero waste if the entire value chain is zero waste, which includes suppliers, manufacturers and consumers … It’s important to get manufacturers to understand their responsibility for packaging. Packaging should be reusable or recyclable, and labeled as recyclable with clear instructions. Those instructions should include if items need to be separated … If caps are a different plastic than bottles; well, tell us …Consumers can
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avoid contamination by removing food, and if packer trucks are crushing materials, remove glass. What is the MRF’s role in working toward zero waste? The MRFs "should not be there to clean, but to separate." ELMORE: First, they should not be there to clean, but to separate. The MRF is simply the destination. Haulers, citizens, and government should take responsibility for clean material. So for MRFs to be affective, consumers [and organizations] must put only clean material into the stream … I think MRFs should fine haulers. Or reject dirty loads. The hauler would have to go to landfills and pay tipping fees. Can you speak of "benefit of scale" to justify investments made to reach for zero waste? ELMORE: You need scale for zero waste efforts to make economic sense. It’s expensive to put trucks out there, so you need route density. Cluster pickup places where there are generators of material in a zone. Haulers have to fill that truck to justify overall cost of their routes. Bales of waste to be sold to end markets must be large enough to fill tractor trailers of materials sold by weight … If you travel outside your community, especially, you have to have volume. How do you get corporations and other business entities to support zero waste goals? ELMORE: Look at what material is generated in the community, corporations, universities, government and other organizations. If a significant amount of material is generated in the community, for instance, but you don’t have an end market, look at who would use the “commodities." And attract businesses that could capitalize on it … keep dollars in your community to build a vital local economy, create jobs and new products … and remember, it’s a team effort between businesses, government, citizens … As far as trash collectors, they have to tell municipalities, your citizens are sending contaminated stuff ... Let’s work together: the government, businesses, citizens, haulers and MRFs.
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Developed countries are backtracking on their commitments: Ajay Mathur Interview with Member of the Prime Minister's Council on Climate Change Nitin Sethi | New Delhi November 28, 2015 Ajay Mathur, member of the Prime Minister’s Council on Climate Change, director general of the Bureau of Energy Efficiency and India’s principal media interface on the Paris climate change talks, speaks to Nitin Sethi on India’s interests in the negotiations. What are India’s objectives at the Paris talks? There are two. The whole world should start moving on a path that shall ultimately take us to a world in which the temperature increase is not more than 2 degree centigrade above the industrial era. And at the same time we do this in a manner that we are able to provide the benefits of energy and therefore carbon space to peoples’ lives, whether it is lighting their homes or from moving from point A to point B or whether it is machinery, all of that would need energy. Those are the two broad objectives. We therefore think, a system that is based on countries pledging – what is called nationally determined contributions – is a good way ahead. It allows countries to do what they can. It allows them to meet those goals and get the confidence that they can do that much and more. It helps countries to build up the trust that everyone shall deliver. This virtuous cycle of trust and confidence is a good way to move ahead. But if this virtuous cycle does not produce adequate effort from the world to keep temperature rise below 2 degree Celsius. Then, there is the suggested review process and subsequent ratcheting up of pledges and there is the stock-take proposal. How does India see this happen? We see that each country would be reporting – we already have the biennial update report – these would be done in a manner that we have already agreed to. The monitoring reporting and verification is
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happening according to the ICA (International Consultation and Analysis) for developing countries and IAR (international assessment and review) for developed countries – this is how we see it. So the world comes to know what is happening. What the global stock take does is see where everyone’s effort collectively takes us. We therefore would like that global stock-take be an indicator that provides a measure or signal of what countries need to do more and not just on mitigation but also on finance, technology. So it’s a global stock take on both mitigation as well as means of implementation. This would provide the information that is needed for countries themselves and for groups within countries and then decide how they want to do more. We agree that each country should do more every time they make a nationally determined contribution. So this time if you say India has said India’s emission intensity would be reduced by 33-35% below 2005 levels by 2030, we certainly expect that when we give our next target it would be even greater, we won’t slide back. So if I understood you right, you said the targets would be nationally determined and not internationally? That is right. If nationally determined numbers of countries collectively don’t add up to what is needed, and not just on mitigation but on finance and technology, then what happens? One of the things we have learnt over last so many years of working together is that what works is public opinion. Therefore I think what is most important is that there is a periodic and transparent mechanism by which countries actions as well as the resources that are provided are put out in the public domain. We believe that is the best driver for each country to not only do what they have promised but even do better than what they have promised. Did you also suggest differentiation between developed and developing countries in the review process? Please explain what is meant by operationalization of the principle of differentiation in the Paris agreement? We are looking at differentiation across all elements. When we are giving our INDCs (Intended Nationally Determined Contributions) there 139
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is a kind of self-differentiation that is already occurred. Countries that are early in their development are promising that the carbon intensity of their economies will become less. Those countries that are already developed are pledging that their emissions will reduce by absolute levels. So, what we are seeing is that there is a self-differentiation that has occurred. This is in the mitigation goals. Similarly in the measurement reporting and verification or MRV we would like to see a differentiation occur in the way the monitoring and review system is set up in developed and developing countries. So this is the particular way we want to move the concept of differentiation. Another place where we would like to see differentiation occur is on commitments to provide resources. The commitment is that of Annexe I countries and that is what should be included in the agreement. So you are against ideas that countries willing to do so or with the capacity to do so, besides the developed countries, should also contribute to climate finance? You know the phrases like capacity to do so it means someone else is making a judgement whether you have the capacity to do so or not – that seems very strange. Willing to do so – what does that mean? Is it a pressure tactic? So I think you have to stay true to the intent of the UN Framework Convention on Climate Change which is that there is a historical responsibility and obligation of the countries which have this historical responsibility to provide this support. Beyond this what the countries want to do they can do it but that is outside the agreement. Is this one of the key differences between India and the US as we saw with the sabre-rattling between the US secretary for state John Kerry and Indian environment minister Prakash Javadekar? Is differentiation the key problem between the two countries? We see that developed and developing countries are very different and they are different from variety of reasons. As the famous and often noted phrase says: common but differentiated responsibilities and respective capabilities – there are a huge amount of differences between these countries. To paper over them that would just mean that in the future that paper would be ruptured.
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Are you indirectly saying that the US is trying to breach the firewall of differentiation and you don’t want that to happen? The differentiation was done for a very specific purpose. It was to make differentiation between those who are responsible for historic emissions and those who are not. That calculus and those numbers haven’t really changed. We don’t see why that concept should be swept under the carpet. Do you think Paris can deliver a road-map for climate finance from the developed countries and is it essential for India? In Copenhagen and Cancun the annexe I countries committed – it is their commitment – that they would enable flows of up to US $100 billion a year annually by 2020. We are nowhere near those numbers. You know the Green Climate Fund numbers. So if we want to have a good chance of 2030 goals be met there would need to be a game-plan as to how this is reached. This is always an urgent issue for us. Not just for Paris, it was urgent in Lima and it was urgent in Warsaw. It will always be urgent. Why? Because a backsliding of commitments has been happening. There has been a backsliding of commitments in mitigation – many countries have not met their targets. There has been a backsliding of commitments in finance. In technology you can’t say there has been backsliding but there is nothing that has happened. So in this context there is an urgency to address the issues in every COP. If at Paris US says we are blocking the negotiations because we can’t give you a roadmap on finance. Then what happens? As I said, this is an issue which has been important for many years. We will keep insisting that we need a way forward. Individual countries may have their own problems but it is the collective response that matters and it is the collective commitment that we seek. Can it come out as a political statement or would it necessarily have to be part of the legally binding core Paris agreement for you to accept it? You know, we are going to Paris to negotiate, you cannot say it has to be my way and no other way. Yes we are going with some ideas about the issue but the point of getting together to negotiate is to get to an
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agreement that is agreeable to you, to me and to the other 190 odd countries in the room. Indian environment minister Prakash Javadekar has said ‘let us not bring in new phrases and terminology at this time of negotiations’? He refers to phrases like decarbonisation and climate neutral. What do these phrases mean and what are its implications? That’s the point, what do they mean? When phrases are introduced at a very late moment they mean different things to different people. The one who introduced it may have one meaning, those who are reading it have a second and then others who want to hijack it to have a completely different meaning. It takes time to all of these phrases to stabilise for all to have at least a similar understanding if not exactly the same meaning. That is why the minister would like that let us focus on the kinds of at least terminology whose meaning we already have. If we start negotiating everything from scratch then two weeks is too short a time. The other thing the minister talked of was pledging of pre-2020 targets by developed countries at Paris and its review in 2018. Can you elaborate on it? Are pre-2020 discussions back on the table at Paris? As far as we are concerned pre-2020 never went off the table for us. We want the developed countries not only to take of ambition in terms of 2030 – we certainly like it – but also think of ambition in terms of 2020. Why is it so important? Because we have five years. The kinds of institutional reforms, signals that the economies require to move are needed upfront. It’s like this. You have a stream of water coming out of the water pipe and you want to change its trajectory, you need to put the finger on the outlet of the pipe to redirect the water from the start where it is coming from. You can’t change the direction of the flow of water if you put your finger when it’s already half way across the lawn. Similarly in the case of carbon emission reductions, these trajectories are now being drawn so early achievement of action is a reflection that it is possible to achieve
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the final outcome. Otherwise what will happen is that when 2030 comes we will find the goals have not been met. How likely is it that at Paris they will do so, considering developed countries have refused to ramp up their pre-2020 commitments so far? It is something India has been saying consistently. The challenge is most important that Annexe I countries have to be brought to agree that the need for 2020 targets is serious and that they can be enhanced. Again, this is about negotiations. Our point of view is enhanced 2020 targets would signal to us that you are serious. And these targets include the US $100 billion dollar goal which we are very far from. My own feeling is that if developed countries are able to do so it would be a very strong signal that they are serious and they shall find us to be serious too. Can an ex-ante review of the first round of pledges take place before 2020? Doing an ex-ante review of INDCs is in a sense meaningless because are you asking people to change their INDCs even before they have started on them? I think the more important issue would be to judge countries by their 2020 goals. We start judging people after we are past 2020-2030 targets after we have passed it for their 2030 INDCs. We don’t know what an ex-ante review achieves except naming and shaming and pointing fingers. What else does it do? It doesn’t do anything useful in moving us forward to the less than 2 degree centigrade path. On several issues I find India has similar views as that of the US. You seem further away from EU on this, which is also not willing to provide finance and technologies but wants a more strictly binding regime. Is it a fair assessment of the state of play? What you have done is bundled various things in to baskets. Again, in a negotiation, by its very definition we will see there are areas of commonalities between different groups on something and with others on something else. In itself I don’t find anything surprising about it. You
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can make these basket of these commonalities but I wouldn’t draw anything much out of it. Tell me more about how do you see the differences between EU and US at climate negotiations and not lump them together as just developed countries? The differences reflect a very long historical tradition of very sturdy personal independence in the US which is based on an ever expanding frontier that they have and a very community-based experience that the Europe has had. But, both have huge caveats or provisos. While Europe is community-based, as EU has expanded we have seen we see differences of opinions between different EU states. As migrants comes in to Europe that has become a very contentious issue – again pointing fingers to how homogeneous those communities have be or want to achieve to be. And, these differences also flow in to the climate talks. Remember EU is a very large number of countries who negotiate together. This is both a strength but it is also a little bit painful in as much as they have to first negotiate amongst themselves so on the international negotiating table with other countries they are a lot more inflexible than the US.
On India’s membership in the Like-Minded Developing Countries, what is the cohesive force that keep the group together? There are two factors that taken together put them in the same position. One is that they are large enough in terms of population and second that they are all at stages where their population still need more energy in order to have decent quality of life. When you multiply the both it means their growth in future is going to be substantial. Consequently, they have an interest in how we can meet the climate goals while also ensuring that their citizens get the energy that we need.
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