Green Business Forum Embrace Sustainability Luan Shllaku

Eco - Development Resource Management Evolution of environment – development paradigms Classical Production Economies Deep Ecology Environmental Protection

Classical Production Economics – Exploitation of “infinite” natural resources – Unregulated waste disposal – Humans strive to dominate nature Environmental Protection – Ecology legalized as economic externality – End-of-pipe clean up or cleaner production – Human and nature separated Resource management – Ecology economized – sustainability – Global efficiency (energy, raw materials) recovery – EIA, risk management, polluter pays – Interdependence of humans and nature Eco development – Economy apologized, industrial ecology – Pollution prevention pays, resource cycling, Eco engineer. – Humans and nature co-developing, sophisticated symbiosis

Traditional approach: environmental protection is viewed as necessary evil, and is carried out only to meet legislation and public interests the emphasis is on eliminating pollution after the production process, the company predominantly focused on single stakeholder - the owners.

Responsible approach: Protection of the environment a source of competitive advantage and success of the company the emphasis is on prevention of pollution … and increased productivity, the company is focused on multiple interest groups (stakeholders).

The Governments Approach “Prometheans”: – Lignite(fossil fuels)should be explored as much as possible in order to be able to develop the country – The country destiny is to become energy power in a region – We can not survive without extensive use of the fossil fuels

What are the economic benefits from the 2100 MW TPP? TPP“Kosovo C” case (2009): (Taken from MEM project “Energy from Lignite”) The value of the energy annual sales after completion of Kosovo would benefit 150 million Euros a year: –Royalty fees (3 Euro/t)..………………..………………. 48 mil Euros –Corporate profit tax ……………..……………………… 10 mil Euros –Land lease ……………...…..………………………….. 2 mil Euros –National company tax… ……..………………………… 10 mil Euros –Annual electricity transfer tax....…...… mil Euros –Employee salaries..…………………………………… 25 mil Euros –Maintenance services (national companies)..……….. 25 mil Euros

What is the Environmental ? Externalities The midpoint estimate of the annual cost of the environmental degradation in Kosovo is 221 million Euros: Pollution estimateAnnual cost% of GDP 2010 Outdoor air Lead Solid Waste Forests Water sanitation Water from heavy metals Total220.8 million5.3%

Sustainability of the mineral exploitation is determined by: Physical factors: The country size Population density Available water resources The quality of the ore/minerals Development issues: Actual economic situation (GDP) The size and structure of the ore mines and related industrial plants Pollution abatement and control equipment (BAT) Location of the large plants

GDP Vs air pollution Kosovo

Environmental forces that encourage responsible approach to business: State, (economic instruments and other measures to raise the standards and requirements to protect the environment), Media (information and education of the public), Numerous organizations promoting environmental protection, Insurance companies - increasing number of environmental accidents excluded from the risks, while others reduce cover in case of pollution, Green investors - investing funds exclusively in companies with good environmental performance, Banks - a growing number of banks positively considers the client performance in environmental protection Environmentally educated consumers - in many developed countries, environmental features become one of the important determinants of buying behavior, Standardization (international standards group ISO and EMAS) and eco-labels.

Surface: km2 Population: cca 2 million Population density : cca 200/km2

Settlements in Kosovo (according to the registre of formal settlements)

Rivers’ network in Kosovo

The thermal power plants’ and open- cast mines’ broad impact zone

Surface: 1050 km2 Number of settlements: 138 Number of edifices: Number of residents: Population density cca 500/km2

The thermal power-plant narrow impact zone

Narrow-impact zone – Formal dwellings Zhilivodë Sibofc Hade Kastriot Ceravadicë Leshkoshiq Graboc i poshtëm Lismir Kuzmin Bardh i madh Pomazotin Shipitullë Krushec Fushë Kosovë

The narrow impact zone of the thermal-power plants Surface: km2 Number of dwellings: 24 Number of edifices: 7526 Population: Population density: cca 700/km2