social life cycle impact assessment & s-lca of the ... · social life cycle impact assessment...
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Social Life Cycle Impact Assessment & S-LCA of the Nicaragua Canal Project
Dr. Andreas Ciroth, Franziska EisfeldtGreenDeltasLCA 2016, Cambridge MA, June 14, 2016
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Points for today
1. The case: Canal de Nicaragua
2. Environmental and Social Impact Assessment
3. A hybrid case: extending SIA with Social LCA
1. Scope
2. Inventory
3. Results
4. Interpretation
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The case: Canal de Nicaragua
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The case, Canal de Nicaragua
• „Canal de Nicaragua. Environmental and Social Impact Assessment“ (ESIA), study June 2015 by Environmental Resources Management (ERM)
• Comprehensive 11,000 pages study
• Commissioned by the main sponsor and planner HKND Group (Hong Kong Nicaragua Canal Development Investment Co., Limited)
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The case, Canal de Nicaragua
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• Purpose and need: significant benefit for Nicaraguan economy expected (increase of GDP per capita by almost 200% compared to projections without canal)
• Length: 275.5 km
• Projected construction time: from 2014 – end of 2019 (5 years)
• HKND, a privately-held infrastructure development firm, obtained a renewable 50-year concession to finance, construct, and operate the Canal
• Estimated costs: between 40 and 50 billion USD (however, experts expect much higher costs)
• Number of workers: 50,000 during construction, raises from 3700 in 2020 to 12,700 in 2050
The case: General facts
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• Nicaragua Grand Canal project consists of 6 sub-projects:
• Canal (including 2 locks)• 2 Ports• a Free Trade Zone• Holiday Resorts• International Airport • several roads• power station• cement factory • other related facilities
• considerable ecological and social impacts – both positive and negative – are expected
The case: General facts
ERM Executive summary (2015), p. 11
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Environmental and Social Impact Assessment study: approach
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• Project must comply with international good practice, external doubts about social and env. impacts
• HKND´s objective: to achieve a Net Positive Impact
• Impacts are potential (i.e. assumed, depending on strategy of the project and on mitigation procedures)
• Subcategories and impacts assessed for local communities, workers, government and national economy
• Assessment based on field studies
• Assessment only for construction and operation of the three canal segments (not for sub-projects)
ESIA study: Introduction
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ESIA: ESIA process
ERM Executive summary (2015), p. 25
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• ESIA evaluates Project against Equator Principles, i.e. compliance with relevant host country regulations, and permits: International Finance Corporation´s Performance Standards (PSs), World Bank Group´s Environmental, Health, and Safety Guidelines (WB EHS Guidelines)
ESIA: Impact Assessment
ERM Executive summary (2015), p. 26
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• ..as result of impact magnitude and receptor vulnerability
ESIA: Determination of impact significance
ERM Volume 4 (2015), p. 8.1-11
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• Magnitude reflects the size or degree of change caused by social and community health impacts
• Magnitude = function of four elements:
• Scale (minimal – large): degree of change to household level livelihood, individual or household level health status and quality of life
• Duration (temporary – permanent): timeframe over which an impact would be experienced
• Geographic extent (local - national): geographic reach of impact
• Frequency (remote – constant): constancy or periodicity of an impact
ESIA: Magnitude
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• Vulnerability or sensitivity is a pre-existing status independent of project
• Related to population´s resilience, i.e. capacity to cope with changes
• 3 levels of vulnerability
ESIA: Vulnerability
ERM Volume 4 (2015), p. 8.1-4
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Hybrid case: Scope
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• Compare and combine two worlds: a really large SIA / EIA study and social LCA, for a relevant case
• Compare results of social impact assessment with Social LCA:
• What are differences and similarities?
• What are benefits from each approach?
• Where are “blind spots”?
• How valid is additional information?
• Is this combination useful, especially for the assessment of large infrastructure projects
Idea/ Purpose
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Product system and system boundaries
Canal constructionand operation
Operation ofdifferent segments
Construction ofdifferent segments
Maintenance ofassociated facilities
Constr. ofassociated facilities
Construction ofHoliday Resorts
Construction oflocks Operation of
Holiday Resorts
Electricity
Excavation of canalfoundation
Production of const. machinery
Production of Pre-Products
Production of Basic Materials
Extraction of rawmaterials
Administration ofcanal
Maintenance ofcanal
Water Transport
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PSILCA for the social LCA “extension”
(comprehensive database for social LCA, for 196 countries, > 50 indicators, almost 16,000 sectors, reference year 2013 for IO model, 2015 for social LCA data, created by GreenDelta 2013-2016, released beginning of 2016:
- Transparent social information, pre-risk assessment
- Data quality assessment for each indicator value)
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Model graph taken from openLCA, foreground
Modelled product system
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Model graph taken from openLCA, part
Modelled product system
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• Foreground and background processes
Modelled product system
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• Case study “indicators” are assigned to PSILCA impact categories (and not overwritten)
Considered impacts/ indicators
Original impact(=indicator)
Process Impact category in PSILCA
Effects on Community Access to Potable Water
Construction and Operation of West Canal Segment; Construction andOperation of East Canal Segment
Industrial Water depletion
Effects on Potable Water Quality
Construction and Operation of Lago de Nicaragua Segment
Industrial Water depletion
Effects on the NahoaIndigenous Peoples
Construction and Operation of West Canal Segment
Indigenous rights
Effects on the Rama-Kriol Indigenous Peoples
Construction and Operation of East Canal Segment
Indigenous rights
Effects on Indigenous Peoples
Construction and Operation of Lago de Nicaragua Segment
Indigenous rights
Increase in personal income
Construction and operation of whole canal
Fair Salary
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Impact Assessment Method
Screenshot from openLCA
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Hybrid case: Inventory
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Adaptation to PSILCA scheme:
Risk/ opportunity level: Combination of Scale, Geographic extendand Vulnerability adapted designation of magnitude, e.g.
Approach: Risk level
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Adaptation to PSILCA scheme:
Activity variable = weighted working time: Factor of weightedDuration and Frequency and Worker hours of process
= Nb of workers in the segment * 160 hours * 11 months * process duration
With:
• Nb of workers in the segment: scaled by length of canal segment
• Process duration: for construction provided in study; for operation = 50 yearsassumed
Approach: Activity variable
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- Effect: Worker hours may be different within one process depending on the indicator!
Approach: Activity variable
Screenshot from openLCA
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Adaptation to PSILCA scheme:
• Connection of foreground processes via items
• Connection to generic processes via prices (for operation: assumption: similar to Panama Canal, scaled by length and investment costs)
Approach: Connecting processes
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Example: Effects on Community Access to Potable Water in Construction of West Canal Segment
Indicators
Indicator Risk Assessment Weighted worker hours
Original PSILCA (Impactcategory)
Original PSILCA Original PSILCA
Effects on Commu-nity Access to Potable Water
Level of industrial water use (related to renewable water resources)
Extend: Sub-regionalScale: LargeVulnerability:Medium;
Magnitude:LargeSignificance:Major
Adapted Magnitude(without duration and frequency): medium
Risk assessment: high risk
Duration: Short-term (whole construction phase)Frequency:Constant
Number of workers: 2958Duration of west segment: 1s/2015 –2s/2019 = 5 years
5.206.080 hrs per year
5.206.080 hrs *5 years*0.01 (dur.)*1800 (frequ.)= 468.5472 Mill hrs
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Example: Construction of West Canal Segment
Indicators
Screenshots from openLCA
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Example: Increase in personal income in Overall Canal Constructionand Operation
- Positive impact!
Indicators
Screenshots from openLCA
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Hybrid case: Preliminary results
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Impacts: Foreground vs. background system
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Impact hotspot: Indigenous rights
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Impact hotspot: Indigenous rights
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Impact contributions: forced labour
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Locations
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Hybrid case: Interpretation
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- Combining SIA & EIA and S-LCA is possible, and requires:- Alignment of indicators
- Alignment of the activity variable(s)
- Alignment of the interpretation (in SIA: mitigation; vulnerability considered)
- Compared to the effort for the „IA“ study, effort for S-LCA is small when using a database
- The combination adds a life cycle perspective to the case, and provides new insights:
- For some indicators, the hot spot impact may be in the supply chain
- On site mitigation can address these hot spots
- LC information is typically more generic than the information provided by IA
(Preliminary) conclusions & interpretation
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- Quantitative assessment
- Entire Life cycle can be included
- Social Hotspots and impact contributions in foreground as wellas in background processes can be detected (other countries andsectors)
Social LCIA