Social Impact Assessment (SIA) for Energy Projects in Mexico · Social Impact Assessment (SIA) for...

The world’s leading sustainability consultancy The world’s leading sustainability consultancy

Social Impact Assessment (SIA) for Energy Projects in Mexico

November 18, 2015

The world’s leading sustainability consultancy

Today’s Goals

2

• Introduce the Social Impact Assessment (SIA) requirements for energy projects in Mexico

• Provide an overview of the SIA-related aspects and issues companies will need to account for when developing an energy sector project in Mexico

• Create an opportunity for Q&A


Agenda

3

1. Health & Safety Moment

2. Introductions

3. Regulatory and Institutional Framework for Social Impact Assessments (SIAs)

• Institutions involved• Legislation• SIA guidelines• SIA review process flowchart

4. Land Tenure• Types of tenure• Key stakeholders• Land use within parcels

5. Indigenous Populations

6. Regulator Expectations

7. Questions and Answers


ERM Global Safety Day 2015

5

“Safety is about building skills and influencing behaviours, not simply about compliance.” Keryn James Global Director of Operations


Speakers

6

Alberto Sambartolomé – Oil & Gas Sector Lead, MexicoMexico DF

Manuel Morales – Team Lead, Social & Sustainability, MexicoMexico DF

Soli Sánchez – Principal Consultant, Social Services TeamBoston


Mexico’s SIA Regulatory & Institutional Framework


Key Legislation

8

• In accordance with: • Article 121 of Hydrocarbons Law (11 Aug 2014); and• Article 120 of Electricity Industry Act (11 Aug 2014)…

…those interested in obtaining a permit or authorization for the development in the energy sector shall submit a Social Impact Assessment (SIA) to the Secretariat of Energy (SENER)


Key Institutions Involved

9

Agency Abbreviation Agency Name English

Translation Responsibilities

SENER Secretaría de Energía Energy Secretariat Lead the country's energy policy

SEMARNAT

Secretaría de Medio Ambiente y Recursos Naturales

Ministry of Environment, Natural Resources, and Fisheries

Protects, restores and conserves the country’s ecosystems, natural resources, goods and environmental services.

ASEA

Agencia de Seguridad, Energía y Ambiente

Agency of Energy, Safety and Environment

Responsible for regulating and supervising industrial safety, operational safety, and environmental protection in the activities of the hydrocarbon sector.


Projects Requiring an SIA

10

• As of now, an SIA must be presented for the following types of projects:

• Distribution of Liquefied Natural Gas through a distribution plant• Sales of Liquefied Petroleum Gas to refueling stations• Pipeline transportation of natural gas, liquefied petroleum gas,

petroleum, petroleum products and petrochemicals• Storage and distribution of natural gas, liquefied petroleum gas,

petroleum, petroleum products and petrochemicals• Natural gas processing (compression, liquefaction, regasification,

decompression) • Oil refining• Offshore exploration (2D and 3D)• Onshore and offshore seismic exploration• Onshore and offshore exploration drilling• Development of onshore and offshore fields• Transmission and distribution of electric power


EIAs and SIAs

11

• EIAs and SIAs can be completed within parallel processes

• EIAs are under the jurisdiction of ASEA and SEMARNAT and reviews are designated to take up to 120 days

• SIAs are under the jurisdiction of SENER and reviews are designated to take up to 90 days

• SEMARNAT and ASEA do not need SIA approval for EIA submission

• CNH does need EIA and SIA to be submitted for permit processing


Social Impact Assessment Guidelines

12

Administrative Guidelines for SIAs in the Energy Sector

• Identify and map stakeholders (Chapter IV, Article 21)

• Define area of influence (Chapter III, Articles10 to 18)

• Complete a baseline (Chapter IV, Articles 19 and 20)

• Characterize Indigenous Populations (Chapter V, Articles 22)

• Assess impacts (Chapter VI, Articles 23 to 30)

• Management Plans (Chapter VII, Articles 31 to 38)

SENER has been working on a set of draft SIA guidelines which, when published, are expected to generate changes to some of the requirements.


Current SIA Review Process

Receipt of SIA by SENER

Does it meet

requirements?

Evaluation by SENER

Request for additional information

No

Yes

Maximum Period90 days

No

Yes Resolution: • Conditioned Authorization• Additional Recommendations (if any)

Submit SIA to SENER

Submit additional information

Is the SIA

robust enough?

Project Owner

SENER

Additional Information Request


Things to Consider

14

• As of now, the recommendations made by SENER after reviewing a SIA are not authoritative in nature.

• Recommendations by SENER will be stated in a resolution document known as a “resolutivo”.


Land Tenure


Land Tenure – Types of Land Tenure

16

Mexican Law identifies 3 land tenure levels:

1. Public

2. Private

3. Social (agrarian core)

■ Ejidal land (ejidatarios)

■ Communal land (comuneros)


Social Land General Structure

17


Decision Making Process and Key Stakeholders

18

General Assembly

Landowners Committee

Supervisory Board

Decision Making Bodies Stakeholders

Ejidatarios

Vecinos

Family of ejidatarios


Land Use within Ejidos

19

Land in ejidos can have different uses:

• Land for human settlement

• Fractioned land

• Land of common use


Things to Keep in Mind

20

• Around 51% of the land in Mexico is social land or agrarian cores.

• Publically available database showing all agrarian cores in the Mexico.

• Land destined for human settlement can house, not only ejidatarios or comuneros, but also people with no land deeds, referred to as vecinos.


Example and Issues to Consider

21

Example:

• 900km pipeline that crosses two states.

Things to ask:

• How many types of land ownership there are in the Project area?

• How many agrarian cores?

• Does all land have land title deeds?


How to Minimize Risks

22

• Engage with all stakeholders:

• Authorities• General Assembly• Vecinos

• Know informal community leaders


Indigenous Populations


Indigenous Communities

24

• 18.3 million indigenous people in Mexico

• 15% of the country population belongs to an indigenous groupERM Analysis of UNDP Report on IP in Mexico, 2015

Population density of indigenous people by state


Indigenous Communities

25

• International Labor Organization’s Convention 169 (ILO 169) on the Rights of Indigenous and Tribal Peoples (1989)

• United Nations Declaration on the Rights of Indigenous Peoples (UN DRIP) in 2007

• Protocol for the implementation of consultation with indigenous peoples and communities in conformity with the standards of Convention 169 of the International Labor Organization, February of 2013

• Article 120 of Hydrocarbons Law and Article 119 of the Law of Electrical Industry require an indigenous engagement process. (2013)

• Article 22, Chapter V of SENER Disposiciones Administrativas requires a detailed description of indigenous communities. (2013)


Things to Keep in Mind

26

• Mexico has a long-standing history of indigenous people opposition to energy projects (e.g., wind development)

• The consultation with indigenous communities is responsibility of SENER together with institutions from the three levels of government (e.g., municipal, state and federal)

• SENER might ask project developers for their support when conducting consultation


Examples and Issues to Consider

27

Example:

• Onshore exploration of O&G

Things to ask:

• Is there any recognized or self-identified IP population in the area of influence?

• Have there been conflicts in the past with previous operators or energy generation projects?

• Are there any areas of cultural importance for IP in the project area or routes to areas of cultural importance?

• Even if the area is empty, is there any IP group that fishes or hunts in the area?


Examples and Issues to Consider

28

Things to ask:

• How much time do I need to input in my project schedule to allow for the engagement process?

• How can I support SENER in the engagement process?

• Is it necessary to organize engagement activities beyond what SENER has planned?

• Is there any intangible cultural heritage such as pilgrimage trails or festivals?


How to Minimize Risks

29

• Submit to SENER the location of the project prior to submitting the SIA so SENER can confirm the presence of indigenous communities.

• Ascertain the presence of indigenous communities using the list of localities published by the National Commission for Indigenous People Development (CDI in Spanish).

• Early engagement with key leaders and indigenous people organizations.

• Make available all information about the project in the indigenous language.

• Conduct a rapid field assessment in the company of an experienced and INAH-certified archaeologist to geta broad sense of the possibleexistence of cultural vestiges.


In conclusion…


What Matters for the Regulator

31

Based on our experience, SENER will be particularly interested in:

• Stakeholder & Indigenous People identification and engagement

• Baseline primary data collection

• Robust impact assessment methodology

• Robust social management plans

• Alignment with international best practices


Discussion

32


Contact Information

For further details on how ERM can help, please contact:

Alberto SambartoloméMexico DF+52 55 5000 [email protected]

Manuel MoralesMexico DF+52 55 5000 [email protected]

Soli SánchezBoston+1 617 646 [email protected]

Social Impact Assessment (SIA) for Energy Projects in Mexico · Social Impact Assessment (SIA) for...

Documents

Transcript of Social Impact Assessment (SIA) for Energy Projects in Mexico · Social Impact Assessment (SIA) for...