INTERNATIONAL ENVIRONMENTAL INTELLIGENCE BRIEF

• Document Type: FOIA
• Collection: FOIA Collection
• Document Number (FOIA) /ESDN (CREST): 0005284796
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 15
• Document Creation Date: June 24, 2015
• Document Release Date: May 27, 2011
• Case Number: F-2008-00831
• Publication Date: June 30, 1999

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International Environmental Intelligence Brief
Contents
GMO Debate Widening
Climate Change Meeting Ends on Positive Note
Finland in EU Presidency Will Be Restrained on Climate Change
Egyptian Megaprojects Pose Danger to Nile River Balance
Mexican Saltworks May Endanger World Heritage Site
Russian Atomic Energy Minister Lobbies To Import Spent Nuclear Fuel
Aral Sea Storm Breaches Earthen Dam
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APPROVED FOR RELEASEL
DATE: 17-May-2011
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GMO Debate Widening
The dispute over trade in genetically modified
organisms (GMOs) has revolved around US-EU
agricultural trade, but recent food safety scares in
Europe and the potential disruption of the
multibillion-dollar global trade in agricultural
commodities are causing concern among a wider
audience. The absence of harmonized trading
rules for genetically modified products is
prompting many countries to adopt a cautious
approach to products derived from biotechnology.
In Brazil-the second-largest soybean exporter,
in which an increasing percentage of land is
planted with genetically modified seeds-
legislators are debating bills that would regulate
the distance of GMO crops to water basins and
human development. Argentina-the third-
largest soybean exporter-is concerned about an
EU regulation requiring labeling of all GMO-
derived products, according to press reports.
Claims that processed foods now on the market
derived from genetically modified corn, soybean,
wheat, or rapeseed are harmful to humans are not
sound, according to a survey ofscient fic reports.
Nonetheless, the mishandling of recent food safety
scares in Europe-none of which are involved
GMOs-has exacerbated public skepticism there
about government assurances about the safety of
genetically mod ified food.
Following the G-8 leaders' endorsement of an
international inquiry into biotech and GMO
safety, the European environment ministers last
week agreed to press their governments to
suspend GMO approvals until EU legislation on
defining, testing, and labeling of GMOs is
completed, a process that could take 18 months,
Concerns over GMOs will hurt US exporters this
year. The US last year lost $200 million because
of canceled GMO corn export contracts to the EU,
Future of Biosafety Protocol Uncertain
Divergent positions on GMOs topped the agenda
in talks in Montreal in late June on the proposed
biosafety protocol and new plant technologies
under the auspices of the UN Convention on
Biological Diversity. Countries such as India,
Germany, Mexico, Norway, and the Philippines
oppose field testing of plant technologies-
including emerging "genetic use restriction
technologies" that can render GMO seeds
sterile-but Egypt is testing a newly discovered
strain of Bt, a popular organic pesticide, and
Australia announced it will fund $11.5 million in
biotech support in its 1999-2000 budget,
- Most developing countries still want the
protocol to include rules governing
access to genetic resources and
guarantees for benefit sharing and
technology transfer.
 Climate Change Meeting Ends on Positive
Note
After lengthy negotiations in mid-June in Bonn,
G-77 stalwarts China, India, the Philippines, and
Saudi Arabia dropped their opposition to the
development of a draft text on implementing the
flexible mechanisms under the Kyoto Protocol-
joint implementation, emissions trading, and the
Clean Development Mechanism (CDM).
this about-face most likely resulted
from pressure by the African caucus, Latin
American countries, and the Alliance of Small
Island States, which see significant advantages
accruing to them from implementation of the
mechanisms.
The Malaysian chair, the EU, and the
Umbrella Group-Australia, Canada,
Iceland, Japan, New Zealand, Norway,
Russia, Ukraine, and the US-held firm
on producing a draft text. .
the conference of parties to the climate
change convention in Bonn.
The G-77 used the talks to expand on their views
for the CDM as a vehicle for capacity building in
their countries. The group did not refer to
private-sector firms as the principal source of
funding for CDM project investments-only
Uganda noted that the CDM will be difficult to
implement with the limited public resources
available.
Talks Evoke Battles Ahead
Arguments in Bonn that may resurface in
October include one by the Philippines-based
on tortured legal reasoning-that emissions
trading will have to he outside the Kyoto
Protocol, and by Germany that developed-
country emissions targets carry an obligation to
make most of the emissions reductions
domestically rather than through the flexible
mechanisms. Some other EU members backed
Germany's view, but the UK, which had made a
bid for the London financial district to host
international trading between buyers and sellers
of emissions allowances, sat silently.
- The Marshall Islands advocated a "tax"
on the commercial earnings from all
three mechanisms to finance a so-called
adaptation fund to help vulnerable
island states address climate change.
 Se
Finland in EU Presidency Will Be
Restrained on Climate Change
Finland's EU presidency, which begins 1 July,
will be more reserved on climate change policy
than Germany's relatively unrestrained approach.
Germany in May drove a policy decision to cap
emissions trading through the EU Environment
Council that was difficult for non-EU parties to
the climate change convention to accept.
The new Finnish coalition government has a
Green Party environment minister, but a
government wide committee will determine
Finland's policy on climate change, according to
press reports. This will temper Minister Hassi's
recent personal endorsement of Germany's
proposal for a harmonized EU energy tax to limit
carbon emissions.
- Press reports suggest Finance Minister
Niinisto-who has become personally
involved in climate policy-will oppose
higher energy taxes
A balanced approach will help restrain the EU
Environment Council from taking more extreme-
positions on emissions trading or on carbon
taxes. Prime Minister Lipponen favors emissions
trading as a mechanism to reach the Kyoto
targets
- Finnish pragmatism will be welcomed
by Belgium, Ireland, the Netherlands,
Sweden, and the EU southern tier,
which opposed a number of German
environmental initiatives during Bonn's
presidency.
Promoting Policy Integration
Finland will strive to integrate environmental
concerns into economic policies. The Finns
argue that effective climate policy requires an
integrated approach for the energy, transport,
agricultural, and forestry sectors of the economy
to reduce greenhouse gas emissions.
- Climate policy integration, nonetheless,
is difficult for Finland, which depends
on imported coal and oil and on the
pulp and paper industry as its largest
industrial sector.
The so-called Millennium Declaration that the EU
summit at Helsinki will issue in December will be
consistent with pronouncements at the Vienna
summit last December and the Cologne summit
last month on environmental and climate policy
integratio
 Egyptian Megaprojects Pose Danger to
Nile River Balance
Egypt is highlighting progress on the South Valley
Development Project, the centerpiece of its desert
reclamation scheme to create economic
opportunity, boost GDP growth, and relieve
overcrowding along the Nile and in the Delta.
Hydrological analysis indicates that full
implementation of South Valley and several
smaller, planned reclamation areas along the Nile
would reduce the outflow to the Mediterranean to
well below the minimum required to control
salinity in the Delta, carry pollutants out to sea,
and maintain ecologically sound coastal estuaries.
- Cairo by 2017 plans to initiate export
oriented farming at Toshka, the main
South Valley site, as well as to develop
industrial, mining, tourism, and
transportation infrastructure, including
tow airports.
The government claims a variety of
water-saving techniques-increasing
groundwater pumping, reusing drainage
water, and using less water-reliant
crops-will compensate for water used
by these megaprojects.
these alternatives
would be prohibitively expensive to implement,
and they might increase salinity in the delta.
Major reductions in water use for irrigation
elsewhere in Egypt also could ensue, potentially
decreasing the amount of water available to farm
existing, more fertile, land that uses less water per
crop than the newly developed and area
In response to such concerns, the government has
scaled back the South Valley Development
Project. Recent statements by World Bank
officials indicate Egypt has shelved development
at Al-Kharja.
groundwater alone.
Moving ahead with Toshka could compel Cairo
to curtain development of the dozens of other
planned reclamation projects along the Nile.
Any large-scale diversion will strain Egypt's
relations with its upstream neighbors, principally
Ethiopia and Sudan.
- Both countries, however, suffer from
internal political and economic
dislocations that prevent them from
using Nile water to its fullest extent.
 Egyptian Reclamation Projec
South Valley Project areas
Other planned reclamation projects
Existing irrigated land
Indian
Ocean
EGYPT
Cairo's enthusiasm for the
Toshka Project-despite
domestic and foreign criticism
of its viability-in part may be
attributed to the high rainfall
in the upper Nile basin that
has led to an unprecedented
overfilling of lake Nasser
during the past two years.
The high storage volume
provides a significant cushion
of water supplies for the near
term.
East Oweinat
L Project
 Mexican Saltworks May Endanger World
Heritage Site
Alleged environmental violations within the El
Vizcaino Biosphere Reserve-at the largest solar
evaporation saltworks in the world-include two
releases of saturated brine, each about 4 million
gallons, according to press reports. The releases
can reach concentrations 300 times that of normal
seawater and may have originated from an
underwater outlet pipe;
The saltworks is managed
by Exportadora de Sal (ESSA) and is
a joint venture of the Mexican
Government and the Mitsubishi
Corporation.
ESSA and government scientists
dispute whether the first brine release
18 months ago was responsible for the
deaths of 94 sea turtles
ESSA has proposed a new saltworks within the
second lagoon at El Vizcaino, which is the last
undeveloped gray whale calving area on the Baja
Peninsula. Mexico's Environment Secretary
rejected ESSA's initial proposal for this
saltworks and will rely on an international
science advisory committee to determine if the
new proposal is compatible with the
environmental objectives of the protected area,
according to press reports.
Environmental groups have petitioned
UNESCO to place El Vizcaino on the
"World Heritage in Danger" list an
action that is likely because of the
increased threat to the site if the
Mexican Government accepts the
proposal
 Russian Atomic Energy Minister Lobbies
To Import Spent Nuclear Fuel
An official press report in late June said Minatom
has offered the government a $5 billion loan
repayable over 20 years if it will support a
legislative amendment that would allow Russia to
import spent nuclear fuel for storage and
reprocessing. This article noted that the loan
would provide an alternative to IMF credits and
would help the government resolve wage and
pension arrears before the legislative and
presidential elections.
- If the Duma were to pass the legislative
amendment early in its fall schedule,
proceeds for fuel reprocessing could
begin to flow to the federal budget
before the presidential election.
Minister Adamov first announced in February that
Minatom would seek changes in existing
legislation that would permit Russia to import as
much as 1,000 tons of spent nuclear fuel for
management and reprocessing. In a letter
addressed to then Premier Primakov, Adamov
estimated that the venture potentially could
generate $10-15 billion a year in revenue-a
figure that is unrealistically high.
- In a televised interview, Adamov touted
the commercial and environmental
benefits of reprocessing spent fuel.
Environmentalists and other Adamov critics, led
by Most Media executive Gusinskiy, charge that
Minatom lacks the capacity to reprocess the fuel
and merely intends to obtain the reprocessing fees
up front and then store the spent fuel indefinitely.
In addition, Adamov's critics allege that Minatom
is "lobbying" the Duma to the tune of $20 million
to get the amendment passed.
The Communist, Agrarian, and
People's Power factions are supporting
Adamov's initiative, according to the media.
- At the same time, Adamov's supporters
charge that Gusinskiy is financing
environmental groups and the Duma's
environmental committee, who oppose
The debate over Minatom's plan to import and
reprocess spent nuclear fuel is the latest political
battle to rage over Minatom. Adamov is
supported by Kremlin insiders Berezovskiy and
Abramovich, who expect to profit from the trade
in nuclear fuel. Adamov's strongest critic is
Gusinskiy, who couches his opposition in terms
of Adamov's cooperation with Iran and
environmental protectionism, but financial
matters may be the root cause.
- Gusinskiy suffered financially last fall
when Adamov withdrew some
Minatom accounts from Most Bank,
according to numerous press accounts.
- According to press reports, Gusinskiy is
trying to secure the reappointment of
Adamov's predecessor, Viktor
Mikhaylov.
 Aral Sea Storm Breaches Earthen Dam
earthen dam, built to replenish the Northern Aral
Sea, was breached in several locations by a
powerful storm in late April.
- Kazakhstan's economic turmoil
probably will delay dam restoration
efforts.
The dam is located north of the Uzbekistan
border but south of the Syrdariya River and cuts
off the river's flow to Uzbekistan and the lower
Aral Sea.
Uzbekistan officials have not publicly
protested the dam's construction but are unhappy
about it.
-- If the Kazakhstanis decide to rebuild
the earthen dam or replace it with a
permanent structure, tension with
Uzbekistan could arise over water
allocation
Local Kazakhstanis in mid-1997 began
constructing the earthen dam at the initiative of
the mayor of Aral, a former northern Aral Sea
port town stranded 36 km from the sea today.
The dam was intended to bring the shore of the
Aral Sea back to the town, thereby reviving the
local economy and improving environmental
conditions for human habitation and biodiversity.
replenishing the northern Aral Sea.
Western press reports say water levels
had risen 3 meters and spits of the sea
had crept to within 12 km of Aral
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 In Brief
 Selected International Environment-Related Meetings
14-16 July
28-30 July
30 August
6-11 September
9-13 September
Workshop on Destruction Technologies for Moscow
Persistent Organic Pollutants
FAO Negotiating Committee for a Legally Rome
Binding Instrument on Prior Informed
Consent (PIC) for Hazardous Chemicals
in International Trade
Meeting of the Executive Committee of Montreal
The Montreal Protocol Multilateral Fund
Hemispheric Energy Ministerial:
Clean Energy Initiatives
Basel Convention Ad Hoc Working Group on
Liability
Third Session of the POPs
Intergovernmental Negotiation Committee
Geneva
Geneva
APEC Senior Officials Meeting Auckland
4-8 October Biodiversity Convention Expert Panel TBD
on Access and Benefit Sharing
25 October - 5 November Fifth Session of the Conference of Parties Bonn
to the Climate Change Convention
Third Session of the Conference of Parties Recife
to the UN Convention to Combat
Desertification
6-10 December Fifth Conference of Parties to the Basel Basel
Convention
10-16 December Sixth International Conference on Tsukuba,
Acid Rain Deposition: Acid Rain 2000 Japan
31 January - 4 February 2000 Subsidiary Body for Scientific
Technical, and Technological Advice to
the Biodiversity Convention