Plantations, poverty and power - Critical Information Collective

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85 Under carbon financing, Pöyry offers development of Joint Implementation and Clean Development Mechanism projects, estimation of project additionality, preparation of project documents and a purchasing strategy for companies looking to buy carbon credits to allow them to carry on polluting. Another company in the Pöyry Group, Econ Pöyry, has teamed up with IDEAcarbon to produce “The Global Carbon Report”, which is a subscription based report aimed at informing “carbon market participants on key fundamentals and policy developments”. In January 2008, Econ Pöyry and IDEAcarbon held a seminar in London titled “After Bali – What’s Next”. The seminar included a presentation by the Vice Chairman of the IDEAglobal Group, Sir Nicholas Stern. 432 Pöyry’s connections in high places are well illustrated by the role of Harald Dovland, who headed Norway’s climate negotiations team for 12 years. 433 Dovland is an advisor to Econ Pöyry. He is also the chair of the Ad Hoc Working Group on Further Commitments for Annex I Parties under the Kyoto Protocol (AWG), which has been meeting since 2006. According to Dovland, what is needed now is “acceptance of long-term goals on a high political level, further development of markets, and innovative financing solutions”. 434 An article on Econ Pöyry’s website about the 2007 Bali climate conference states that “Carbon trading is instrumental to achieve sufficient reduction [in greenhouse gas emissions]”. 435 As Nicola Bullard of Focus on the Global South points out, it is “rather strange that one of the most important negotiating forums on climate change is under the gavel of an employee of a firm which makes money out of promoting carbon trading.” 436 In January 2008, Econ Pöyry produced a report commissioned by the Nordic Council of Ministers looking at how Nordic countries might contribute to the Copenhagen Conference of Parties which will take place at the end of 2009. Econ Pöyry’s report recommends expanding the carbon market, encouraging “more countries to establish [carbon] trading systems” and financing avoided deforestation through a carbon market. 437 Harald Dovland is the contact person on Econ Pöyry’s website for more information on this report. 438 Pöyry has worked on several Joint Implementation and Clean Development Mechanism projects. The company describes itself as “well equipped to evaluate project eligibility and additionality,” adding that “Pöyry has also established close contacts with buyers in the carbon market and can provide the best buyer candidates and carbon finance structuring for each specific CDM and JI project.” 439 432 “After Bali – What’s Next”, Know-How Wire, Pöyry Client Magazine, 2/2008. http://www.poyry.com/linked/en/press/KnowhowWire22008.pdf 433 Nicola Bullard (2008) “Who is Harald”, New Internationalist, Issue 412, June 2008. http://www.newint.org/columns/currents/2008/06/01/climate-negotiations/ 434 “After Bali – What’s Next”, Econ Pöyry website: http://www.econ.no/modules/module_123/proxy.aspI=2648&C=13&D=2&mnusel=a185a253a 435 “After Bali – What’s Next”, Econ Pöyry website: http://www.econ.no/modules/module_123/proxy.aspI=2648&C=13&D=2&mnusel=a185a253a 436 Nicola Bullard (2008) “Who is Harald”, New Internationalist, Issue 412, June 2008. http://www.newint.org/columns/currents/2008/06/01/climate-negotiations/ 437 “Possible activities to support negotiations on a post-2012 climate change regime”, Econ Pöyry, Report 2007-118, 9 January 2008. http://www.econ.no/stream_file.aspiEntityId=3720 438 “Climate negotiations post-2012”, Econ Pöyry website: http://www.econ.no/modules/module_123/proxy.aspI=2894&C=9&D=2&mnusel=a185a253a277a 439 Sari Siitonen and Michael Haslinger (2007) “Global Carbon Market”, Know-How Wire, Pöyry Client Magazine 1/2007.
86 One of Pöyry’s carbon service projects is Botnia’s CDM project in Uruguay, which enables the company to profit from selling electricity to the Uruguayan state utility and selling CDM registered carbon credits from its Biomass Power Generation Project. 440 In 2005, Pöyry completed an expansion of Mondi’s Richards Bay pulp mill in South Africa. Pöyry has had a close relationship with the Richards Bay mill, being involved from the start of the project. The mill was commissioned in 1984, since when Pöyry has worked on a series of rebuilds and in 2002 carried out a feasibility study for the Richards Bay mill expansion, followed by pre-engineering studies. Pöyry subsequently won the contract to carry out project management and detailed engineering services, together with the engineering group Murray & Roberts. Under the project, the capacity of the pulp mill increased from 575,000 tons per year to 720,000 tons per year. Meanwhile, water consumption was reduced by 42 per cent and the amount of coal used was almost halved, down from 562 tons a day to 234 tons a day. 441 While this amounts to a reduction in greenhouse gas emissions, it raises several questions. Why did Pöyry not install a closed loop system, reducing the amount of water used and the pollution from the mill even further Why didn’t Pöyry redesign the mill so that it used no coal at all In May 2007, the Richards Bay mill was registered as a Clean Development Mechanism project. 442 Carbon credits sold from the project mean that any greenhouse gas emission reductions achieved at Richards Bay were transferred somewhere else. A year before the Richards Bay project was completed, an article in Pöyry’s magazine Know-How Wire claimed that Pöyry aims for “integrated pulp and paper mills that operate totally without auxiliary fuels, producing a net surplus of electricity from 100% biomass fuels.” Not at Richards Bay, though. The pulp mill will use more than 70,000 tons of coal a year, resulting in emissions of almost 200,000 tons of carbon dioxide emissions each year. 443 “The pulp and paper industry is facing a new era,” states Pöyry’s article. “It is not enough only to reduce emissions. Pulp and paper mills should maximize their bioenergy potential and minimize their electricity consumption.” 444 This sounds good, perhaps, but the biomass has to come from somewhere. In a world where it is cheaper to grow trees in Brazil than in Sweden, this means that the biomass raw material, along with the pulp raw material will come from the global South. 445 440 Sari Siitonen (2006) “Innovative Clean Energy Solutions in Practice , Carbon Consultancy and Emissions Reductions ”, Pöyry Energy Oy company presentation, Nairobi, 12 November 2006. 441 Graham Ferreira (2005) “Richards Bay expansion: Higher capacity, improved environmental performance”, Know- How Wire, Jaakko Pöyry Client Magazine, June 2005. 442 “Project 0966 : Mondi Richards Bay Biomass Project” UNFCCC website: http://cdm.unfccc.int/Projects/DB/SGS- UKL1172139189.07 443 One tonne of coal contains 746 kg carbon (see http://bioenergy.ornl.gov/papers/misc/energy_conv.html). The molecular weight of carbon dioxide is 3.667 times that of carbon. Therefore the amount of carbon dioxide emitted from the Richards Bay pulp mill is 70,000 x 0.746 x 3.667 = 191490.74. (This calculation method came from George Monbiot’s article, “Leave It In The Ground“, The Guardian, 11 December 2007, footnote 5. http://www.monbiot.com/archives/2007/12/11/rigged/) 444 Sebastian Kankkonen, Esa Vakkilainen and Jukka Suutela (2004) “More bioenergy and electricity from pulp mills”, Know-How Wire, Jaakko Pöyry Client Magazine, June 2004. 445 Chris Lang (2006) “The pulp industry and the biofuels boom”, World Rainforest Movement Bulletin 112, November 2006. http://chrislang.org/2006/11/29/the-pulp-industry-and-the-biofuels-boom/
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1 Plantations, poverty and power: E
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3 CONTENTS Introduction 1. Plantati
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5 New investors have emerged recent
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7 1. Plantations do not plant thems
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9 plantations established on grassl
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11 Nations Food and Agriculture Org
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13 Another reason for the move to t
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15 In his book, “Khor Jor Kor, Fo
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17 Between 1991 and 2006, the numbe
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19 are asking for”, notes WWF. 60
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21 consume fewer goods. Less advert
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23 credit crunch, unstable oil pric
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25 Investment in plantations in the
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27 possible price. Subsidies, linke
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29 2. The anatomy of five pulp proj
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31 However, while the Bank confirme
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33 make way for its tree plantation
Page 36 and 37: 35 In April 2004, about 2,000 famil
Page 38 and 39: 37 Sappi, Swaziland: 50 years of in
Page 40 and 41: 39 after an assessment by the Soil
Page 42 and 43: 41 impact of the plantations on wat
Page 44 and 45: 43 Advance Agro, Thailand: Deforest
Page 46 and 47: 45 confiscation and liquidation of
Page 48 and 49: 47 management was facing a bankrupt
Page 50 and 51: 49 Indah Kiat, Asia Pulp and Paper,
Page 52 and 53: 51 company owners want profits to b
Page 54 and 55: 53 • US$4.5 billion owed by APP i
Page 56 and 57: 55 explained that “association wi
Page 58 and 59: 57 Indah Kiat faces a series of lan
Page 60 and 61: 59 logging. While the investigation
Page 62 and 63: 61 experimental areas and not from
Page 64 and 65: 63 Staples and Office Depot in the
Page 66 and 67: 65 “the exhaustive studies have c
Page 68 and 69: 67 CEDHA has also filed complaints
Page 70 and 71: 69 of converting grasslands to indu
Page 72 and 73: 71 3. Pulp Inc. Profiles of seven p
Page 74 and 75: 73 Thailand, a power plant for a Ne
Page 76 and 77: 75 Management’s experts the possi
Page 78 and 79: 77 A year after Aracruz’s third p
Page 80 and 81: 79 In January 2003, Pöyry announce
Page 82 and 83: 81 Bank in the early 1990s. Groome
Page 84 and 85: 83 Pöyry’s role in the Baikal Pu
Page 88 and 89: 87 Pöyry is working on second gene
Page 90 and 91: 89 The Confederation of European Pa
Page 92 and 93: 91 CEPI Eurokraft states that “it
Page 94 and 95: 93 sectors need to reduce by 21% co
Page 96 and 97: 95 The ADB’s report notes that th
Page 98 and 99: 97 Nepal In Nepal, the target area
Page 100 and 101: 99 loan for the second plantations
Page 102 and 103: 101 International Finance Corporati
Page 104 and 105: 103 •In December 2000, IFC approv
Page 106 and 107: 105 firm’s activities. After his
Page 108 and 109: 107 safeguards are in practice.
Page 110 and 111: 109 Bank projects are approved by a
Page 112 and 113: 111 •€80 million to Portucel to
Page 114 and 115: 113 The Food and Agriculture Organi
Page 116 and 117: 115 Nevertheless, Poore and Fries n
Page 118 and 119: 117 failure to define industrial tr
Page 120 and 121: 119 FAO’s guidelines recommend th
Page 122 and 123: 121 Rosengren did not reply to my e
Page 124 and 125: 123 Forest Stewardship Council: Mis
Page 126 and 127: 125 body that rubber stamps operati
Page 128 and 129: 127 Criterion 1.6, for example, sta
Page 130 and 131: 129 fast wood plantations have take
Page 132 and 133: 131 Principle 10.8 should prevent t
Page 134 and 135: 133 By April 2004, FSC had, at last
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135 plantations, because it creates
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137 integrated set of common Princi
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139 for clearing areas of Atlantic
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141 Colombia were certified by SGS.
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143 The dissociation became necessa
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145 4. Future planned pulp mills As
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147 Planned pulp projects: 698 Comp
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149 UPM and Sveza Group Vologda Rus
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151 paper industry along ecological
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