Environmental management

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Agenda 21 is a non-binding, voluntarily implemented action plan of the United Nations with regards to sustainable development. The document is a product of the UN Conference on Environment and Development (UNCED) which was held in Rio de Janeiro, Brazil, in 1992. It covers the main sustainability issues which were urgent 20 years ago and are still remain significant for the most countries in the world. The importance of the Agenda 21 was reaffirmed at the Rio Conferences in 1997, 2002 and 2012. Moreover they have recognized that with the advent of the globalization and the issues of poverty eradication, climate change, environmental protection, hazardous waste management, conservation of biodiversity, control over pollution, protection of the human rights and environmental (environmentally friendly) education and technologies are on the peak of importance.

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The project documentation for facilities (specifically including hazardous, technically complex and unique facilities and defense and security facilities) planned for construction, reconstruction and capital repair within specially protected natural areas of federal significance requires a positive report from the SEER.

Pay-to-Pollute

The Environmental Protection Law includes a “pay-to-pollute” provision that requires companies to obtain permits and pay the respective tariffs for such permits for adverse environmental impact caused by their activities, including:

  • emission of pollutants and other substances into the atmosphere;
  • discharge of pollutants, other substances and microorganisms into bodies of water, groundwater and watersheds;
  • pollution of subsoil and soil;
  • disposal of industrial and consumption waste;
  • environmental pollution caused by noise, heat, electromagnetic and ionizing radiation, and other types of pollution; and • other activities that may have an adverse environmental impact.

In addition to making the pay-to-pollute payments (which are considered a fiscal levy, rather than a fine or sanction, on a company that produces negative impact on the environment), a company must also remediate any environmental damage caused by its activities (regardless of the amount of pay-to pollute payments it has made).

Kyoto Protocol

The Kyoto Protocol went into effect on 16 February 2005 – 90 days after the submission of Russia’s ratification document to the United Nations.

  • Russia’s Commitment under the Kyoto Protocol - Russia is entitled to maintain its 1990 level of emissions during the Kyoto compliance period from 2008 through 2012.
  • Joint Implementation Projects - Article 6 of the Kyoto Protocol allows participating countries to transfer or acquire emission reduction units through joint implementation projects (the “II projects”). Sberbank, Russia’s largest state-owned bank, is authorized to select the applications submitted for the tender and to finance the transfer and acquisition of carbon units. The power to grant ultimate approval of JI projects is reserved by the Ministry of Economic Development and Trade.

 

  1. Give examples of energy and resource saving in your country

Taking into account the global financial crisis, global climate change and instability in the world, in terms of reforming municipal economy and energy sector, the implementation of energy and resource saving programs and technologies is becoming more relevant than ever. But the relevance is not limited to the sectors of the economy, to some extent controlled by the state. Energy conservation is important for large businesses, as it allows significantly alter the structure of fixed costs and send a free resources for investment in new production, capital construction, etc. Moreover, as it was mentioned in previous questions, the role of the business has changed and today companies and corporations became active players in all the fields of our life.

Although Russian legislation provides documents and programs on energy and resource conservation, we could hardly find any evidence of their implementation.

Regulatory framework for energy saving in Russia:

  • Federal Law on Energy Saving No.28-FZ dated April 4, 1996;
  • Russian Federation President Decree on Certain Measured Aimed at Enhancing Energy and Environmental Efficiency of the Russian Economy No.889 dated June 4, 2008;
  • Russia’s Energy Strategy to 2030 (Russian Government Resolution No.1715-r dated November 13, 2009);

According to current assessments, the technical potential of renewable energy in Russia amounts to at least 4.5 billion tons of coal equivalent per year. It mainly includes potential of solar and wind energy and exceeds the current energy consumption in the country by more than 4 times. Economic potential of renewable energy depends on existing economic conditions, cost, availability and quality of fossil fuels reserves, as well as on regional peculiarities. It changes in the course of time and must be specially assessed in the process of preparation and implementation of specific programs for an projects on development of renewable energy (taking into account the comprehensive assessment of their specific contribution into achievement of the stated strategic objectives).

“In the future it is planned to provide rational and economically justified growth of various types of renewable energy use for electricity and heat production, as well as to expand the use of alternative kinds of fuel in transportation and energy sector.”  – Russian Energy Strategy says, the question only remains when this “future” starts, because a lot of developed countries already use alternative resources and implement energy saving technologies on governmental level, thus we have stopped in the past.10

However Russian business is already in the future and I will prove it with the example of Gazprom again.

The company consistently pursues the energy saving and energy efficiency enhancement policy in industrial operations. Such efforts are taken in each and every field of activity. Gazprom’s energy saving measures enhance energy efficiency of operations and mitigate the adverse environmental impact. In 2010 the Gazprom Energy Saving Program for 2007–2010 was successfully completed. The energy saving procedures provided for in the Program saved about 2.7 million tons of fuel equivalent in 2010.

With a view to enhance energy efficiency Gazprom updates the monitoring system at its facilities, promotes introduction of energy saving technologies and equipment, certifies equipment for compliance to energy consumption regulations, regularly inspects production sites and develops new technologies.

Gazprom achieves energy resource saving due to extensive innovations. Gas transmission stipulates the use of process, repair and maintenance equipment allowing no gas losses and the remote control of gas leakages. Innovative technologies for well testing and repair, advanced pumping units, efficient gas treatment plants and gas utilization technologies are applied in gas, condensate and oil production operations. Energy saving procedures, energy efficient technologies and equipment allowed to reduce process gas consumption standards by 23 per cent in 2010 versus the previous values.

In 2010 Gazprom for the first time ever applied energy saving procedures in its subsidiary companies, experts who actively participated in the fuel and energy resource saving procedures were paid bonuses according to the achieved results. Gazprom approved a number of documents regulating the energy saving sector, including the Energy Saving and Energy Efficiency Concept for 2011–2020 and the Energy Saving Program for 2011–2013.

The Concept stipulates that in 2011 process gas consumption and gas losses in major activities are to be reduced by at least 11.4 per cent, and greenhouse gas emissions – by at least 48.6 million tons of CО2equivalent. According to the Concept, the possible energy saving potential until 2020 stands at 28.2 million tons of fuel equivalent (including 25.7 billion cubic meters of natural gas). According to the Energy Saving Program for 2011–2013, Gazprom may save 6.4 million tons of fuel equivalents in total.

I would like to describe also a governmental energy saving measure which was implemented in Russia in 2011 and obtained disapproval and criticism in the society which is still not ready to invest in the sustainable future. It is a ban for incandescent lamp usage. According to this document, the production and sales of 100 watts lamps or more is stopped since 2011, since 2013 - of 75 watts or more, and since 2014 - 25 watts.11

The ban also prescribes measures to stimulate business transition to energy efficient technologies. In particular, it deals with the application of high coefficients of accelerated depreciation, investment tax credit, as well as reimbursement of interest on loans for the implementation of energy conservation projects. Under the bill, by 2011 the owners of all buildings must have completed their equipment with water meters, gas and electricity.

It was previously reported that the ministry estimated the shift to energy-saving lamps in Russia 100 billion rubles. Now saving lamps that are based on light-emitting diodes, are ten times more expensive than incandescent bulbs, but in the coming years the price will drop by 2-3 times. In addition, by reducing energy consumption and longer life, these lamps are ultimately more cost-effective. However it is still a long-term investment.

1 http://www.stakeholderforum.org “Review of implementation of Agenda 21 and the Rio Principles”, by the Stakeholder Forum for a Sustainable Future, January 2012

2 http://www.kommersant.ru

3 http://www.gazprom.com/social/children/

4 http://www.gazprom.com/nature/kioto/

5 Ruggie John Gerard “Reconstituting the Global Public Domain” SCR Initiative Working paper, 2004

6 http://infoeco.ru/ecomobile/

7 www.vodokanal.spb

8 http://www.sony.net/SonyInfo/csr_report/environment/management

9 7-FZ, “On Environmental Protection,” 10 January 2001

10 Energy Strategy of Russia for the period up to 2030, Moscow, November 2009

11 http://www.lenta.ru/news/2009/11/11/lampen/ 


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