tag:theconversation.com,2011:/us/topics/regulations-28160/articlesRegulations – The Conversation2024-03-22T12:31:27Ztag:theconversation.com,2011:article/2249032024-03-22T12:31:27Z2024-03-22T12:31:27ZLab tests show THC potency inflated on retail marijuana in Colorado<figure><img src="https://images.theconversation.com/files/582213/original/file-20240315-18-4mmw21.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">An analysis of 23 cannabis samples from 10 dispensaries found a majority had at least 30% less THC than they were reported to have.</span> <span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/photo/selection-of-cannabis-and-legal-medical-royalty-free-image/1210433696">Zenkyphoto/iStock via Getty Images Plus</a></span></figcaption></figure><p>Cannabis flower sold in Colorado claims to contain much more tetrahydrocannabinol, or THC, than it actually does, according to <a href="https://doi.org/10.1371/journal.pone.0282396">my findings</a> published in the peer-reviewed journal Plos One. </p>
<p>THC is the psychoactive compound that is derived when cannabis flower – commonly referred to as “bud” – is heated through smoking or cooking.</p>
<h2>Why it matters</h2>
<p>Accurate THC reporting is a linchpin for medical patients, recreational consumers and the overall integrity of the cannabis industry. Medical and recreational flower is generally the same – the difference is in testing requirements, price, taxes and purchase limits. Misleading potency information can disrupt medical dosages, misguide recreational users and erode trust in an industry <a href="https://www.theguardian.com/business/2023/oct/08/cannabis-companies-us-financial-system-banking-safer-act">striving for legitimacy</a>. </p>
<p>Consumers often associate <a href="https://doi.org/10.1186/s42238-022-00117-0">higher THC levels in cannabis flower with superior quality</a>, potentially leading to overpayment for products that may not meet their expectations. This misconception can also create incentives for <a href="https://doi.org/10.3389/fpubh.2022.893009">cultivators, testing labs and dispensaries</a> to generate higher THC numbers – whether through cultivation techniques or through testing fraud.</p>
<p>Additionally, testing for <a href="https://www.cannabisbusinesstimes.com/news/state-testing-maine-medical-cannabis-samples-contain-contaminants/">toxins, pesticides and total yeast and mold</a> can also fall victim to falsification. Recent reports reveal instances where labs in <a href="https://www.syracuse.com/marijuana/2023/09/nys-testing-failures-expose-legal-weed-consumers-to-unsafe-cannabis-a-serious-health-threat.html">New York</a> and <a href="https://mjbizdaily.com/marijuana-lab-testing-analysis-finds-routine-thc-inflation-data-manipulation/">other states</a> have passed products that should have failed. This casts doubt on the credibility of the broader testing processes in place. </p>
<h2>How I did my work</h2>
<p>I gathered a total of 23 cannabis flower samples from 10 dispensaries across the northern Colorado Front Range, which includes Denver, Fort Collins and Garden City. The samples encompassed 12 strains, including indica, sativa and hybrid types, and varied in reported THC values. Some had ranges, such as 12.8%-19.3% on the lower end and 28.07%-31.28% on the higher end, while others had single values, such as 16.4% or 17.4%.</p>
<p>I sent the samples to a third-party testing lab that does <a href="https://chem.libretexts.org/Bookshelves/Analytical_Chemistry/Supplemental_Modules_(Analytical_Chemistry)/Instrumentation_and_Analysis/Chromatography/High_Performance_Liquid_Chromatography">high-performance liquid chromatography</a>, or HPLC. HPLC is a method to separate, identify and quantify components in mixtures based on their chemical properties. It is the most commonly used method in cannabis testing to analyze <a href="https://www.sciencedirect.com/topics/medicine-and-dentistry/cannabinoid">cannabinoids</a> and detect contaminants. This can ensure product potency, safety and quality.</p>
<p><a href="https://doi.org/10.1371/journal.pone.0282396">Approximately 70% of the labels</a> reported THC percentages more than 15% higher than what was quantified through the lab. </p>
<p>Among the 23 flower samples analyzed, 18 displayed lower THC levels than reported – with 16 falling below 15% of the stated value, 13 falling below 30% of the reported THC and three samples falling below half of the reported THC. Notably, only one sample had slightly higher THC than reported. Four were within the reported range.</p>
<p>The observed disparity was not due to aging. When THC ages and degrades, it turns into cannabinol, or CBN. CBN was not found in measurable amounts in any of the samples, however, and further testing indicated stable THC levels over time. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/582298/original/file-20240315-20-14twiy.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Cannabis buds in a miniature toy shopping cart" src="https://images.theconversation.com/files/582298/original/file-20240315-20-14twiy.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/582298/original/file-20240315-20-14twiy.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=401&fit=crop&dpr=1 600w, https://images.theconversation.com/files/582298/original/file-20240315-20-14twiy.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=401&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/582298/original/file-20240315-20-14twiy.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=401&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/582298/original/file-20240315-20-14twiy.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=504&fit=crop&dpr=1 754w, https://images.theconversation.com/files/582298/original/file-20240315-20-14twiy.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=504&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/582298/original/file-20240315-20-14twiy.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=504&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Cannabis shoppers often conflate high THC with superior quality.</span>
<span class="attribution"><a class="source" href="https://www.istockphoto.com/photo/purple-cannabis-buds-gm1297291078-390472048">Yarphoto/iStock</a></span>
</figcaption>
</figure>
<h2>What still isn’t known</h2>
<p>A fundamental query looms large: With advancements in cultivation techniques, including lighting, nutrients and selective breeding, has the potency of cannabis flower genuinely surged over the past 15 years? </p>
<p>THC levels <a href="https://doi.org/10.1016/j.bpsc.2020.12.016">averaged 9.75% back in 2009</a>, based on testing of DEA-seized cannabis flower. Today, levels reportedly <a href="https://doi.org/10.1186/s42238-024-00220-4">surpass 35%</a>, though they’re not as common as consumers have been led to believe. DEA-seized cannabis flower <a href="https://doi.org/10.1016/j.bpsc.2020.12.016">averaged 13.88% in 2019</a>, which is closer to my observed mean of 14.98% than the reported mean of my samples, which was 20.27%-24.10%.</p>
<p>We also do not know who is responsible for the misinformation regarding inflated THC potency for cannabis flower. It could be cultivators or dispensaries selecting the best flowers to test. Sampling guidelines differ by state, but all require a random sample from the entire batch. But there is little to no oversight when it comes to enforcing these guidelines. It could also be lab fraud. Facilities might manipulate the testing process or doctor numbers on the certificate of analysis to ensure repeat business from producers and distributors who set prices based on THC content, or to generate new customers.</p>
<h2>What’s next</h2>
<p>I believe a critical next step is for the cannabis industry to educate consumers on how to make more informed choices by looking beyond mere THC percentages. People generally do not shop for wine or beer based on alcohol content. Instead of focusing on THC content, a novice cannabis consumer might consider brands that are reputable or strains that have an aroma or flavor profile they enjoy. Eventually, they may move on to find a favorite breeder or grower, or a trusted dispensary that employs a knowledgeable budtender. A budtender is akin to a bartender in a dispensary setting, serving as a customer representative.</p>
<p>Cannabis consumers, industry players and the public must also continue to <a href="https://talkingjointsmemo.com/proving-the-biggest-mass-cannabis-story-of-2023/">advocate for better oversight</a> in sampling and testing to ensure <a href="https://commonwealthbeacon.org/marijuana/marijuana-content-labels-cant-be-trusted/">safety, transparency and accountability</a> and to foster trust from the cannabis community.</p><img src="https://counter.theconversation.com/content/224903/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Anna Schwabe is a board member for the Agricultural Genomics Foundation, not-for-profit group.
She also worked for Mile High Labs following post graduation, but was not involved in lab testing for this study.</span></em></p>Misleading potency labels can disrupt medical dosages, misguide recreational users and erode trust in the industry.Anna Schwabe, Associate Lecture Professor of Modern Cannabis Science, University of Colorado BoulderLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2249232024-03-06T21:23:18Z2024-03-06T21:23:18ZSEC approves first US climate disclosure rules: Why the requirements are much weaker than planned and what they mean for companies<figure><img src="https://images.theconversation.com/files/580240/original/file-20240306-25-rfxv2z.jpg?ixlib=rb-1.1.0&rect=1958%2C11%2C5185%2C3482&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Companies face new rules for disclosing their climate-related risks.</span> <span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/photo/panoramic-aerial-shot-of-steaming-oil-refinery-royalty-free-image/908141180">halbergman/E+ via Getty Images</a></span></figcaption></figure><p>After two years of intense public debate, the U.S. Securities and Exchange Commission approved the nation’s <a href="https://www.sec.gov/files/33-11275-fact-sheet.pdf">first national climate disclosure rules</a> on March 6, 2024, setting out requirements for publicly listed companies to report their climate-related risks and in some cases their greenhouse gas emissions.</p>
<p>The new rules are much weaker than <a href="https://theconversation.com/sec-proposes-far-reaching-climate-disclosure-rules-for-companies-heres-where-the-rules-may-be-vulnerable-to-legal-challenges-179534">those originally proposed</a>. Significantly, the SEC dropped a controversial plan to require companies to report Scope 3 emissions – emissions generated throughout the company’s supply chain and customers’ use of its products.</p>
<p>The rules do require larger companies to disclose Scope 1 and 2 emissions, which are emissions from their operations and energy use. But those disclosures are required only to the extent that the company believes the information would be financially “<a href="https://www.law.cornell.edu/cfr/text/17/240.12b-2#:%7E:text=The%20term%20%E2%80%9Cmaterial%2C%E2%80%9D%20when,or%20sell%20the%20securities%20registered.">material</a>” to a reasonable investor’s decision making.</p>
<p>More broadly, the new rules require publicly listed companies to disclose climate-related risks that are likely to have a material impact on their business, as well as disclose how they are managing those risks and any related corporate targets.</p>
<p><iframe id="0j9Uw" class="tc-infographic-datawrapper" src="https://datawrapper.dwcdn.net/0j9Uw/5/" height="400px" width="100%" style="border: none" frameborder="0"></iframe></p>
<p>After announcing its initial proposal in 2022, the SEC received a <a href="https://www.sec.gov/comments/climate-disclosure/cll12.htm">staggering number of comments</a> from experts, companies and the public – about 24,000 of them, the most ever received for an SEC rule. The comments reflected both strong public interest in being informed about corporate climate-risk exposures and greenhouse gas emissions and also significant pushback, particularly over how much the rules would cost companies. Several Republican state attorneys general <a href="https://ago.wv.gov/Documents/Q0658792.pdf">threatened to sue</a>. </p>
<p>In response to the comments, the commissioners took their time to adjust the disclosure requirements, but the <a href="https://thehill.com/business/4513407-nine-states-file-legal-challenge-to-sec-climate-disclosure-rule/">legal challenges may not be over</a>.</p>
<p>I <a href="https://warrington.ufl.edu/directory/person/7627/">specialize in sustainable finance and corporate governance</a> and have been following the SEC’s climate disclosure plans. Here are some of the major issues that led to this change and the implications of the new disclosure rules as they phase in starting in 2025.</p>
<h2>The rule’s unequal cost to companies</h2>
<p>The most important reason for adding climate disclosure rules, <a href="https://www.sec.gov/news/speech/gensler-remarks-ceres-investor-briefing-041222">as SEC Chairman Gary Gensler has noted</a>, is that climate-related risks and greenhouse gas emissions appear to be financially material information demanded by investors. </p>
<p>Indeed, for the past several years, large institutional investors have been vocal about the need for more transparency and consistency in corporate climate-risk disclosures.</p>
<p>As the SEC has often emphasized, most large companies already disclose some of this information voluntarily in their sustainability <a href="https://www.pwc.com/sk/en/environmental-social-and-corporate-governance-esg/esg-reporting.html">or ESG reports</a>, which often are published alongside their annual reports.</p>
<p><iframe id="RrVke" class="tc-infographic-datawrapper" src="https://datawrapper.dwcdn.net/RrVke/1/" height="400px" width="100%" style="border: none" frameborder="0"></iframe></p>
<p>Since investors seem to demand this information, and many companies are voluntarily providing it, the SEC and proponents argued that it would be <a href="https://www.sec.gov/news/speech/gensler-remarks-ceres-investor-briefing-041222">sensible to mandate some consistency</a> in disclosures.</p>
<p>However, much of the debate around the new disclosure rule has focused on whether it passes the cost-benefit smell test. In other words, would the compliance cost borne by firms potentially outweigh the financial benefits of mandated disclosures of climate risks and emissions that investors might value?</p>
<p>The compliance costs of federal disclosure requirements have been estimated to be substantial. When the SEC first proposed the rule in 2022, the commission’s own estimates implied that disclosure-related <a href="https://www.wsj.com/articles/fight-brews-over-cost-of-sec-climate-change-rules-11652779802">compliance costs would nearly double</a> for the average publicly listed company.</p>
<p>Comments on the rule have since pointed out that <a href="https://www.sec.gov/comments/s7-10-22/s71022-20132304-302836.pdf">there are also likely to be even greater indirect costs</a> related to adjustments that companies might have to make in how they conduct their operations. These costs might also have broader implications for employment in certain jobs and sectors.</p>
<p>Given that many smaller listed companies do not have voluntary disclosure practices in place, the burden is also expected to hit companies unequally, disproportionately affecting smaller companies while large corporations see little impact.</p>
<h2>Measuring greenhouse emissions isn’t simple</h2>
<p>Another practical problem lies in enforcing consistent measurement of emissions and climate-risk exposure.</p>
<p>International groups such as the <a href="https://www.fsb-tcfd.org/">Task Force on Climate-Related Financial Disclosures</a> and the <a href="https://www.ifrs.org/groups/international-sustainability-standards-board/">International Sustainability Standards Board</a> have provided reporting standards and guidelines. But the measurements themselves are still subject to estimation and collection problems that might vary across industries and activities.</p>
<p>Moreover, estimating Scope 1, 2 and 3 emissions separately presents significant challenges.</p>
<figure class="align-center ">
<img alt="Lists of examples of Scope 1, 2, 3 emissions sources with an illustration of a factory in the center" src="https://images.theconversation.com/files/450130/original/file-20220304-13-727hza.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/450130/original/file-20220304-13-727hza.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=509&fit=crop&dpr=1 600w, https://images.theconversation.com/files/450130/original/file-20220304-13-727hza.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=509&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/450130/original/file-20220304-13-727hza.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=509&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/450130/original/file-20220304-13-727hza.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=640&fit=crop&dpr=1 754w, https://images.theconversation.com/files/450130/original/file-20220304-13-727hza.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=640&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/450130/original/file-20220304-13-727hza.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=640&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">What Scope 1, 2 and 3 emissions involve.</span>
<span class="attribution"><a class="source" href="https://www.americanprogress.org/article/why-companies-should-be-required-to-disclose-their-scope-3-emissions/">Chester Hawkins/Center for American Progress</a></span>
</figcaption>
</figure>
<p>In particular, the difficulty of measuring a company’s indirect emissions from its supply chain – Scope 3 emissions – exponentially compounds the estimation problem. Reporting Scope 3 emissions also opens a floodgate of legal issues, as many smaller organizations in a large company’s value chain might have no legal obligation to disclose their own emissions.</p>
<p>The backlash over the challenges inherent in measuring Scope 3 emissions led to the commission’s decision to pare back that part of its proposed rules.</p>
<p>Many companies will also likely have to outsource the estimation and quantification of emissions and climate risks to third-party companies, where there have been concerns about higher costs, conflicts of interest and greenwashing.</p>
<h2>How SEC stacks up to California, EU rules</h2>
<p>The SEC is not the first to adopt climate disclosure rules.</p>
<p>A <a href="https://blogs.law.columbia.edu/climatechange/2023/12/15/a-comparative-analysis-of-the-secs-climate-disclosure-proposal/">similar rule went into effect in the European Union</a> in January 2024. </p>
<p>California has <a href="https://theconversation.com/exxon-apple-and-other-corporate-giants-will-have-to-disclose-all-their-emissions-under-californias-new-climate-laws-that-will-have-a-global-impact-214630">an even more stringent rule</a>, signed into law in October 2023. It will require both publicly listed and privately held firms to fully and unconditionally disclose all of Scope 1, 2 and 3 emissions when it goes into effect in 2026 and 2027. Since California is among the world’s largest economies, its regulations are already expected to have wide effects on corporations around the world.</p>
<figure>
<iframe width="440" height="260" src="https://www.youtube.com/embed/xjSk7wWJG6o?wmode=transparent&start=0" frameborder="0" allowfullscreen=""></iframe>
<figcaption><span class="caption">SEC Chairman Gary Gensler discusses what the SEC has to do with climate change.</span></figcaption>
</figure>
<p>Hardcore <a href="https://news.bloomberglaw.com/esg/sec-climate-rules-risk-legal-battle-with-environmental-groups">proponents of the SEC rule</a> who wanted California-level disclosures across the board argue that Scope 3 emissions need to be disclosed given that they compose the largest fraction of all carbon emissions.</p>
<p>Skeptics of the rule, including two of the five SEC commissioners, question whether there needs to be any rule at all if things are inevitably watered down anyway. </p>
<p>Given the recent conservative <a href="https://www.wsj.com/business/the-latest-dirty-word-in-corporate-america-esg-9c776003">backlash against companies focusing on ESG</a> issues and the ensuing <a href="https://www.ft.com/content/3ce06a6f-f0e3-4f70-a078-82a6c265ddc2">retrenchment by several institutional investors</a> from their previous climate commitments, it will be interesting to see how the new corporate climate disclosures will actually affect investors’ and corporations’ decisions.</p><img src="https://counter.theconversation.com/content/224923/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Sehoon Kim does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Climate disclosure rules are meant to help investors understand their risks, but they come with costs for companies, as a finance scholar explains.Sehoon Kim, Assistant Professor of Finance, University of FloridaLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2170262023-11-07T13:37:52Z2023-11-07T13:37:52ZSam Bankman-Fried was convicted of fraud following the collapse of the cryptocurrency exchange FTX. Here’s what investors need to know<figure><img src="https://images.theconversation.com/files/557517/original/file-20231103-19-37nlbl.jpg?ixlib=rb-1.1.0&rect=17%2C0%2C5973%2C3997&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Sam Bankman-Fried is no longer crypto's Robin Hood.</span> <span class="attribution"><a class="source" href="https://newsroom.ap.org/detail/FTXBankmanFried/2ed1f13907ad4c0d882eaaff69eac780/photo">Bebeto Matthews/Associated Press</a></span></figcaption></figure><p><em>In the fast-paced world of cryptocurrency, vast sums of money can be made or lost in the blink of an eye. In early November 2022, the crypto exchange FTX was valued at more than US$30 billion. By the middle of that month, <a href="https://www.cnn.com/2022/11/15/business/ftx-madoff-bankman-fried-bair/index.html">FTX was in bankruptcy proceedings</a>. And less than a year later, on Nov. 3, 2023, its founder, Sam Bankman-Fried, was found guilty of <a href="https://www.wired.com/story/sam-bankman-fried-trial-explained/">seven counts of money laundering and fraud</a>, following a trial that featured less than a month of <a href="https://www.wsj.com/finance/currencies/sam-bankman-fried-ftx-trial-news-updates-fbef824b">testimony</a> and only about four hours of jury deliberation.</em></p>
<p><em><a href="https://scholar.google.com/citations?user=VxWst50AAAAJ&hl=en&oi=ao">D. Brian Blank</a> and <a href="https://scholar.google.com/citations?user=FKJSqjEAAAAJ&hl=en&oi=ao">Brandy Hadley</a> are professors who study finance, <a href="https://onlinelibrary.wiley.com/doi/abs/10.1111/EUFM.12311">executives</a>, <a href="https://onlinelibrary.wiley.com/doi/abs/10.1111/fire.12274">firm governance</a> and fintech. They explain how and why this incredible collapse happened, what effect it might have on the traditional financial sector and whether you should care.</em></p>
<h2>1. What happened?</h2>
<p>A million years ago, back in <a href="https://inside.com/campaigns/inside-tech-2021-07-21-28706/sections/243700">2019</a>, Sam Bankman-Fried founded FTX, a company that ran one of the largest cryptocurrency exchanges.</p>
<p>FTX was where many crypto investors traded and held their cryptocurrency, similar to the New York Stock Exchange for stocks. Bankman-Fried also founded <a href="https://www.forbes.com/profile/alameda-research/?sh=563773816570">Alameda Research</a>, a hedge fund that invested in cryptocurrencies and crypto companies. </p>
<p>In the traditional financial sector, these two companies would be entirely separate firms, or at least have firewalls in place to avoid conflicts of interest. But in early November 2022, news outlets reported that a <a href="https://www.coindesk.com/business/2022/11/02/divisions-in-sam-bankman-frieds-crypto-empire-blur-on-his-trading-titan-alamedas-balance-sheet/">significant proportion of Alameda’s assets</a> were a type of cryptocurrency released by FTX itself. </p>
<p>A few days later, news broke that FTX had allegedly been loaning customer assets to Alameda for risky trades <a href="https://www.cnbc.com/2022/11/13/sam-bankman-frieds-alameda-quietly-used-ftx-customer-funds-without-raising-alarm-bells-say-sources.html">without customers’ consent</a> and also issuing its own FTX cryptocurrency for Alameda to use as <a href="https://www.cnbc.com/2022/11/13/sam-bankman-frieds-alameda-quietly-used-ftx-customer-funds-without-raising-alarm-bells-say-sources.html">collateral</a>. As a result, criminal and regulatory investigators began scrutinizing FTX for potentially <a href="https://www.law360.com/assetmanagement/articles/1549319?nl_pk=c7efe457-0cc1-4a20-9d63-ded5145502ae&utm_source=newsletter&utm_medium=email&utm_campaign=assetmanagement&utm_content=2022-11-15&read_more=1&nlsidx=0&nlaidx=0">violating securities law</a>.</p>
<p>These two pieces of news basically led to a bank run on FTX, and soon afterward, FTX, Alameda Research and 130 other affiliated companies founded by Bankman-Fried filed for bankruptcy. This left <a href="https://www.cnbc.com/2022/11/15/ftx-says-could-have-over-1-million-creditors-in-new-bankruptcy-filing.html">huge numbers</a> of investors who bought cryptocurrencies through the exchange with <a href="https://www.cnn.com/2022/11/14/business/ftx-customer-money-bankruptcy/index.html">no good way to get their money back</a>.</p>
<p>Within a month, Bankman-Fried was <a href="https://www.nytimes.com/2022/12/12/business/ftx-sam-bankman-fried-bahamas.html">arrested</a> and <a href="https://www.foxbusiness.com/politics/ftx-founder-sam-bankman-fried-arrested-bahamas-us-expected-request-extradition-authorities-say">charged with wire fraud, wire fraud conspiracy, securities fraud, securities fraud conspiracy and money laundering</a> by the Southern District of New York. In February 2023, <a href="https://www.reuters.com/legal/new-indictment-unsealed-against-bankman-fried-containing-12-charges-2023-02-23/">additional criminal charges</a> related to political donations were announced, followed by <a href="https://www.cnbc.com/2023/03/28/sam-bankman-fried-paid-over-40-million-to-bribe-at-least-one-chinese-official-doj-alleges-in-new-indictment.html">another indictment</a> in March related to bribery.</p>
<p>Bankman-Fried’s <a href="https://edition.cnn.com/2023/10/03/investing/sbf-trial-jury-selection/index.html">first trial began on Oct. 3, 2023</a>, and largely focused on the “<a href="https://www.bloomberg.com/news/live-blog/2023-10-26/sam-bankman-fried-testifies-at-fraud-trial">essentially unlimited</a>” access to capital Alameda had on the exchange through a secret line of credit. The trial ended on Nov. 3, with Bankman-Fried convicted of seven counts of fraud and money laundering. He is expected to appeal.</p>
<h2>2. Did a lack of oversight play a role?</h2>
<p>In traditional markets, corporations generally <a href="https://www.law360.com/bankruptcy/articles/1549089?nl_pk=6ef803a8-f435-44cb-93f5-de6a024ff206&read_more=1&nlsidx=0&nlaidx=3">limit the risk they expose themselves to</a> by maintaining liquidity and solvency. Liquidity is the ability of a firm to sell assets quickly without those assets losing much value. Solvency is the idea that a company’s assets are worth more than what that company owes to <a href="https://www.wsj.com/livecoverage/stock-market-news-today-11-15-2022/card/ftx-says-number-of-creditors-in-bankruptcy-could-top-1-million-LrfYrHxDtIoVBV42QDiG?mod=djemMoneyBeat_us">debtors and customers</a>.</p>
<p>But the crypto world has generally operated with much less caution than the traditional financial sector, and <a href="https://www.nytimes.com/2022/11/11/technology/ftx-investors-venture-capital.html?smid=tw-dealbook&smtyp=cur">FTX is no exception</a>. About <a href="https://www.bloomberg.com/opinion/articles/2022-11-14/ftx-s-balance-sheet-was-bad">two-thirds</a> of the money that FTX owed to the people who held cryptocurrency on its exchange – roughly $11.3 billion of $16 billion owed – was backed by illiquid coins created by FTX. FTX was taking its customers’ money, giving it to Alameda to make risky investments and then creating its own currency, known as FTT, as a replacement – cryptocurrency that it was unable to sell at a high enough price when it needed to.</p>
<p>In addition, nearly 40% of Alameda’s assets were in FTX’s own cryptocurrency – and remember, both companies were founded by the same person. </p>
<p>This all came to a head when investors decided to sell their coins on the exchange. FTX did not have enough <a href="https://www.bloomberg.com/opinion/articles/2022-11-10/ftx-is-still-looking-for-money">liquid</a> assets to meet those demands. This in turn drove the value of FTT from over $26 a coin at the beginning of November 2022 to under $2 by Nov. 13. By this point, FTX owed more money to its customers than <a href="https://www.bloomberg.com/opinion/articles/2022-11-09/bankman-fried-s-ftx-had-a-death-spiral-before-binance-deal">it was worth</a>.</p>
<p>In regulated exchanges, investing with customer funds is <a href="https://www.cnbc.com/2022/11/13/sam-bankman-frieds-alameda-quietly-used-ftx-customer-funds-without-raising-alarm-bells-say-sources.html">illegal</a>. Additionally, auditors validate financial statements, and firms must publish the amount of money they hold in reserve that is available to fund customer withdrawals. And even if things go wrong, the <a href="https://www.firstrepublic.com/insights-education/sipc-vs-fdic-insurance-protection-differences">Securities Investor Protection Corporation</a> – or SIPC – protects depositors against the loss of investments from an exchange failure or financially troubled brokerage firm. The crypto world lacks such guardrails.</p>
<h2>3. Why is this a big deal in crypto?</h2>
<p>While the collapse of FTX and Alameda – valued at more than $30 billion and now essentially worth nothing – was dramatic, the bigger implication is simply the potential <a href="https://apnews.com/article/sam-bankman-fried-ftx-crypto-downfall-a2eaec231027dfd9f18426ff8982bbf8">lost trust in crypto</a>. Bank runs are rare in traditional financial institutions, but they are <a href="https://www.wsj.com/articles/crypto-com-withdrawals-rise-after-ceo-admits-transaction-problem-11668350510">increasingly common</a> in the crypto space. Given that Bankman-Fried and FTX were seen as some of the biggest, most trusted figures in crypto, these events may lead more investors to think twice about putting money in crypto.</p>
<h2>4. If I don’t own crypto, should I care?</h2>
<p>Though investment in cryptocurrencies has grown rapidly, the entire crypto market – <a href="https://www.coindesk.com/markets/2021/10/21/crypto-market-cap-surges-to-new-record-27-trillion/">valued at over $3 trillion</a> at its peak – is much <a href="https://beincrypto.com/institutional-investment-in-crypto-experts-weigh-in-on-implications/">smaller</a> than the $120 trillion <a href="https://medium.com/ngrave/too-big-to-fail-crypto-market-size-vs-traditional-assets-eff4bb2ec529">traditional stock market</a>.</p>
<p>While investors and regulators are still evaluating the consequences of this fall, the impact on any person who doesn’t personally own crypto will be minuscule. It is true that many larger investment funds, like BlackRock and the Ontario Teachers Pension, held investments in FTX, but the estimated <a href="https://www.ai-cio.com/news/ontario-teachers-pension-could-lose-95-million-on-ftx-investment">$95 million the Ontario Teachers Pension lost</a> through the collapse of FTX is just 0.05% of the entire fund’s investments.</p>
<p>The takeaway for most individuals is not to invest in <a href="https://www.wsj.com/articles/ftx-sam-bankman-fried-sit-in-the-crosshairs-of-u-s-prosecutors-11668398012?mod=djem10point">unregulated</a> markets without understanding the risks. In high-risk environments like crypto, it’s possible to lose everything – a lesson investors in FTX learned the hard way.</p>
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<iframe width="440" height="260" src="https://www.youtube.com/embed/3QpdU9LS540?wmode=transparent&start=0" frameborder="0" allowfullscreen=""></iframe>
</figure>
<h2>5. What does the trial reveal about the regulatory environment for crypto?</h2>
<p>The trial of Bankman-Fried has brought attention to the ever-evolving and complex nature of cryptocurrency regulation and oversight. At the conclusion of the case, <a href="https://www.reuters.com/legal/bankman-fried-trial-poses-biggest-test-date-cryptos-top-cop-2023-09-29/">Damian Williams, the federal prosecutor for the U.S. Justice Department</a>, underlined the <a href="https://www.reuters.com/legal/ftx-founder-sam-bankman-fried-thought-rules-did-not-apply-him-prosecutor-says-2023-11-02/">department’s dedication to fighting fraud,</a> even in the relatively new crypto space.</p>
<p>This case shows that the U.S. is willing to assert broad jurisdiction over financial crimes targeting its citizens, regardless of where the perpetrating company is based – which in FTX’s case, was <a href="https://www.wired.com/story/sam-bankman-fried-crypto-paradise-bahamas/">the Bahamas</a>. Notably, this trial did not fall directly under the supervision of the Securities and Exchange Commission or other regulatory bodies, although pending civil cases from both <a href="https://www.sec.gov/news/press-release/2022-219">the SEC</a> and the <a href="https://www.coindesk.com/policy/2023/02/13/cftc-case-against-sam-bankman-fried-postponed-until-after-criminal-trial/">Commodity Futures Trading Commission</a>, <a href="https://news.bloomberglaw.com/securities-law/bankman-frieds-legal-woes-extend-far-beyond-criminal-trial">along with ongoing</a> class-action lawsuits, underscore the <a href="https://www.nri.com/-/media/Corporate/en/Files/PDF/knowledge/publication/lakyara/2023/09/lakyaravol376.pdf?la=en&hash=48DA9E99702BA223ACB48E1C378E1F6833C399EF">complexities in regulating the cryptocurrency sphere</a>. </p>
<p>Despite a recent crypto crackdown by the SEC, the U.S. continues to lag behind other nations in establishing comprehensive crypto regulations. This is evident in the <a href="https://www.cnbc.com/2023/10/30/uk-confirms-plans-to-regulate-crypto-industry-with-formal-legislation.html">formal regulatory frameworks introduced by places such as the U.K.</a> and the European Union. The International Monetary Fund’s <a href="https://www.imf.org/en/Blogs/Articles/2023/07/18/crypto-needs-comprehensive-policies-to-protect-economies-and-investors">call for comprehensive regulations</a> further underscores the necessity for more robust regulatory measures within the crypto industry, hinting at a widening gap between the U.S. and much of the rest of the world.</p>
<p><em>This is an updated version of a story that was <a href="https://theconversation.com/dramatic-collapse-of-the-cryptocurrency-exchange-ftx-contains-lessons-for-investors-but-wont-affect-most-people-194692">originally published</a> on Nov. 17, 2022.</em></p><img src="https://counter.theconversation.com/content/217026/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>The authors do not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.</span></em></p>The downfall of the onetime multibillionaire holds lessons for investors and regulators alike.D. Brian Blank, Associate Professor of Finance, Mississippi State UniversityBrandy Hadley, Associate Professor of Finance and the David A. Thompson Distinguished Scholar of Applied Investments, Appalachian State UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2143862023-10-13T04:04:03Z2023-10-13T04:04:03ZCars are a ‘privacy nightmare on wheels’. Here’s how they get away with collecting and sharing your data<figure><img src="https://images.theconversation.com/files/553601/original/file-20231013-21-l5gaka.jpg?ixlib=rb-1.1.0&rect=89%2C71%2C5901%2C3916&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>Cars with internet-connected features are fast becoming all-seeing data-harvesting machines – a so-called “privacy nightmare on wheels”, <a href="https://foundation.mozilla.org/en/blog/privacy-nightmare-on-wheels-every-car-brand-reviewed-by-mozilla-including-ford-volkswagen-and-toyota-flunks-privacy-test/">according to</a> US-based research conducted by the <a href="https://foundation.mozilla.org/en/insights/open-research/">Mozilla Foundation</a>.</p>
<p>The researchers looked at the privacy terms of 25 car brands, which were found to collect a range of customer data, from facial expressions, to sexual activity, to when, where and how people drive. </p>
<p>They also found terms that allowed this information to be passed on to third parties. Cars were “the official worst category of products for privacy” they had ever reviewed, <a href="https://foundation.mozilla.org/nl/privacynotincluded/articles/its-official-cars-are-the-worst-product-category-we-have-ever-reviewed-for-privacy/">they concluded</a>.</p>
<p>Australia’s privacy laws aren’t up to the task of protecting the vast amount of personal information collected and shared by car companies. And since our privacy laws don’t demand the specific disclosures required by some US states, we have much less information about what car companies are doing with our data.</p>
<p>Australia’s privacy laws need urgent reform. We also need international cooperation on enforcing privacy regulation for car manufacturers.</p>
<h2>How do cars collect sensitive data?</h2>
<p>Apart from data entered directly into a car’s “infotainment” system, many cars can collect data in the background via cameras, microphones, sensors and connected phones and apps. </p>
<p>These data include:</p>
<ul>
<li>speed</li>
<li>steering, brake and accelerator pedal use</li>
<li>seat belt use</li>
<li>infotainment settings</li>
<li>phone contacts</li>
<li>navigation destinations</li>
<li>voice data</li>
<li>your location and surroundings</li>
<li>and even footage of you and your family outside your car. (Between 2019 and 2022, Tesla employees internally circulated <a href="https://www.abc.net.au/news/2023-04-08/tesla-workers-shared-sensitive-images-recorded-by-customer-cars/102202382">intimate footage</a> collected from people’s private cars for their own amusement, according to reports.)</li>
</ul>
<p>A lot of these data are used, at least in part, for legitimate purposes such as making driving more enjoyable and safer for the driver, passengers and pedestrians.</p>
<p>But they can also be supplemented with data collected from other sources and used for other purposes. For instance, data may be collected from your website visit, your test drive at a dealership, or from third parties including “<a href="https://www.toyota.com.au/privacy-policy">marketing agencies</a>” and “providers of data-collecting devices, products or systems that you use”.</p>
<p>The latter is very broad since our TVs, fridges and even our baby monitors can collect data about us.</p>
<p>Mozilla points out these combined data can be used “to develop inferences about a driver’s intelligence, abilities, characteristics, preferences and more”.</p>
<h2>Connected cars transmit data in real time</h2>
<p>While cars have been collecting large amounts of information since they became “<a href="https://www.toyota.com.au/privacy-policy">computers on wheels</a>”, this information has generally been stored in modules in the vehicle and accessed only when the car is physically connected to diagnostic equipment. </p>
<p>Now, however, vehicles are being sold with <a href="https://www.ag.gov.au/sites/default/files/2021-01/federal-chamber-of-automotive-industries.PDF">connected features</a> “in the sense that they can exchange information wirelessly with the vehicle manufacturer, third party service providers, users, infrastructure operators and other vehicles”. </p>
<p>This means your connected car can transmit data about you and your activities, generally via the internet, to various other companies as you go about your life. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/553621/original/file-20231013-23-olsqna.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/553621/original/file-20231013-23-olsqna.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/553621/original/file-20231013-23-olsqna.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/553621/original/file-20231013-23-olsqna.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/553621/original/file-20231013-23-olsqna.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/553621/original/file-20231013-23-olsqna.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/553621/original/file-20231013-23-olsqna.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/553621/original/file-20231013-23-olsqna.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Your internet-connected car can collect a range of data about you.</span>
<span class="attribution"><span class="source">Shutterstock</span></span>
</figcaption>
</figure>
<h2>Where do the data go?</h2>
<p>In Australia, we have little information about how our information can be used and by whom.</p>
<p>In its US-based study, Mozilla found data from consumers’ cars was being disclosed to other companies for marketing and targeted advertising purposes. It was also sold to data brokers. </p>
<p>Mozilla was able to uncover highly detailed information, largely because the laws of <a href="https://www.oag.ca.gov/privacy/ccpa#sectionc">California</a> and <a href="https://pro.bloomberglaw.com/brief/virginia-consumer-data-protection-act-vcdpa/#:%7E:text=The%E2%80%AFVCDPA%20gives%20consumers%20the%20right%20to%20access%20their,personal%20data%20for%20targeted%20advertising%20and%20sales%20purposes.">Virginia</a> require specific disclosures about who personal data is disclosed to and for what purposes (among other higher privacy standards). </p>
<p>Australian privacy law doesn’t require such specific disclosures. This is one reason car brands often have separate privacy policies for Australia. </p>
<p>A look at the privacy policies of various companies supplying connected cars in Australia reveals several vague, broad statements. Aside from using your data to provide you with connected services, these companies will:</p>
<ul>
<li>disclose it to others for “<a href="https://www.audi.com.au/au/web/en/audi-connect-plus.html#layer=/au/web/en/privacy-policy.html">customer research</a>”</li>
<li>use it to “<a href="https://www.kia.com/au/util/privacy.html">profile</a>” the type of person interested in their products </li>
<li>use it, along with “related companies” around the world, for vague “<a href="https://www.toyota.com.au/privacy-policy">data analysis</a>” and “<a href="https://www.toyota.com.au/privacy-connected">research and development purposes</a>” or </li>
<li>provide the data to unspecified “<a href="https://www.hyundai.com/au/en/privacy/bluelink-privacy-collection-notice">third parties</a> in connection with” developing new “marketing strategies”.</li>
</ul>
<p>Some may disclose your information to law enforcement or the government even when not required by law, such as when they believe “the use or disclosure is <a href="https://www.kia.com/au/util/privacy.html">reasonably necessary to assist</a> a law enforcement agency”.</p>
<h2>Trust us – we invented a ‘voluntary code’</h2>
<p>It’s safe to say car manufacturers generally don’t want privacy laws tightened. The <a href="https://www.fcai.com.au/about">Federal Chamber of Automotive Industries</a> (FCAI) represents companies distributing 68 brands of various types of vehicles in Australia.</p>
<p>During the recent review of our privacy legislation, the FCAI made a submission to the Attorney General’s department arguing against many of the privacy <a href="https://www.ag.gov.au/sites/default/files/2021-01/federal-chamber-of-automotive-industries.PDF">law reforms under consideration</a>. </p>
<p>Instead, it promoted its own <a href="https://www.fcai.com.au/news/codes-of-practice/view/publication/172#:%7E:text=The%20FCAI%20members%20have%20voluntarily%20agreed%20that%20the,and%20use%20of%20vehicle%20data%20and%20personal%20information.">Voluntary Code of Conduct for Automotive Data and Privacy Protection</a>. This weak document seems designed to comfort consumers without adding any privacy protections beyond existing legal obligations. </p>
<p>For example, signatories don’t say they’re bound by the code. Nor do they promise to follow its terms. They only say its principles will “drive their approach to treatment of vehicle-generated data and associated personal information”. There are no penalties for ignoring the code. </p>
<p>It even states signatories will “voluntarily notify” consumers of certain matters when the Privacy Act already requires this as a matter of law.</p>
<p>The code also notes third parties are increasingly interested in accessing and using consumers’ data to provide services, including insurance companies, parking garage operators, entertainment providers, social networks and search engine operators. </p>
<p>It says companies making data available to such third parties “will strive to inform you” about this.</p>
<h2>We need privacy law reform</h2>
<p>The government recently proposed important and <a href="https://www.ag.gov.au/rights-and-protections/publications/government-response-privacy-act-review-report">wide-ranging privacy law reforms</a>, following the Privacy Act Review which began in 2020. These changes are long overdue. </p>
<p>Proposals such as an updated definition of “personal information” and higher standards for “consent” could help protect consumers from intrusive and manipulative data practices.</p>
<p>The proposed “fair and reasonable test” would also assess whether a practice is substantively fair. This would help avoid claims data practices are lawful just because consumers had to provide consent.</p>
<p>The FCAI points out many cars aren’t specifically designed for Australia’s relatively small market, so increased privacy standards might result in some vehicles not being released here. But this isn’t a reason to carve out vehicles from privacy law reform.</p>
<p>Privacy laws are also being upgraded in numerous jurisdictions overseas. Australia’s government agencies should coordinate with their international counterparts to protect drivers’ privacy. </p>
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<em>
<strong>
Read more:
<a href="https://theconversation.com/to-steal-todays-computerized-cars-thieves-go-high-tech-210358">To steal today's computerized cars, thieves go high-tech</a>
</strong>
</em>
</p>
<hr>
<img src="https://counter.theconversation.com/content/214386/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Katharine Kemp receives funding from the UNSW Allens Hub for Technology, Law and Innovation. She is a Member of the Expert Panel of the Consumer Policy Research Centre, and the Australian Privacy Foundation.</span></em></p>Cars can collect data via cameras, microphones, sensors, and connected phones and apps. Our privacy laws need urgent reform if these data are to be kept safe.Katharine Kemp, Associate Professor, Faculty of Law & Justice, and Deputy Director, Allens Hub for Technology, Law & Innovation, UNSW SydneyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2110202023-09-07T12:22:12Z2023-09-07T12:22:12ZNanoparticles will change the world, but whether it’s for the better depends on decisions made now<figure><img src="https://images.theconversation.com/files/546538/original/file-20230905-24-72bk24.jpg?ixlib=rb-1.1.0&rect=2%2C4%2C1595%2C1192&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Nanoparticles are a thousand times smaller than a human hair. </span> <span class="attribution"><span class="source">Illustration by Stephanie King, Pacific Northwest National Laboratory</span></span></figcaption></figure><p>Technologies based on nanoscale materials – for example, particles that are more than 10,000 times smaller than the period at the end of this sentence – play a growing role in our world. </p>
<p>Carbon nanofibers <a href="https://www.me.washington.edu/news/article/2021-03-22/how-washington-became-global-epicenter-advanced-carbon-fiber">strengthen airplanes and bicycle frames</a>, silver nanoparticles <a href="https://www.scientificamerican.com/article/silver-nanoparticles-in-clothing-pose-no-new-risk/">make bacteria-resistant fabrics</a>, and moisturizing nanoparticles called nanoliposomes are <a href="https://doi.org/10.3390/gels8030173">used in cosmetics</a>.</p>
<p>Nanotechnology is also revolutionizing medicine and pushing the boundaries of human performance. If you received a COVID-19 vaccine in the United States, <a href="https://doi.org/10.1038/s41565-021-00946-9">it contained nanoparticles</a>. </p>
<p>In the future, nanotechnology may allow doctors to better <a href="https://doi.org/10.3390/jcm7120490">treat brain diseases and disorders</a> like cancer and dementia because nanoparticles pass easily through the blood-brain barrier. </p>
<p><a href="https://www.jpost.com/health-science/new-eyedrops-could-repair-corneas-make-glasses-unneccessary-543344">Nanoparticles in eye drops</a> may temporarily correct vision. And strategically implanted nanoparticles in the eyes, ears or brain may enable <a href="https://doi.org/10.1016/j.cell.2019.01.038">night vision</a> or hearing that’s <a href="https://doi.org/10.1021/nl4007744">as good as a dog’s</a>. Nanoparticles could even allow people to control their smart homes and cars <a href="https://doi.org/10.3389%2Ffnins.2018.00843">with their brains</a>. </p>
<p>This isn’t science fiction. These are all active areas of research.</p>
<p>But frameworks for assessing the safety and ethics of nanoparticles have not kept pace with research. As <a href="https://www.pnnl.gov/people/kristin-omberg-phd">a chemist</a> working in bioscience, I am worried by this limited oversight. Without updated frameworks, it’s hard to tell whether nanotechnology will make the world a better place.</p>
<h2>Nano – what and why?</h2>
<p>Any particle or material <a href="https://www.nano.gov/about-nanotechnology/just-how-small-is-nano">between 1 and 100 nanometers</a> in one dimension can be classified as “nano.” The period at the end of this sentence is 1,000,000 nanometers, and a human hair is about 100,000 nm in diameter. Both are much too large to be considered “nano.” A single coronavirus is about 100 nanometers in diameter, and soot particles from forest fires can be <a href="https://doi.org/10.3389/fmats.2021.695485">as small as 10 nanometers in diameter</a> – two examples of naturally occurring nanoparticles.</p>
<figure>
<iframe width="440" height="260" src="https://www.youtube.com/embed/38Vi8Dm0kdY?wmode=transparent&start=0" frameborder="0" allowfullscreen=""></iframe>
<figcaption><span class="caption">This video shows how small nanoparticles are, compared with other objects.</span></figcaption>
</figure>
<p>Nanoparticles can also be produced in a laboratory. The adenovirus vectors, nanolipoparticles and mRNA <a href="https://doi.org/10.1038/s41565-021-00946-9">used in COVID-19 vaccines</a> are engineered nanoparticles. The zinc oxide and titanium dioxide used in <a href="https://www.racgp.org.au/afp/2016/june/the-safety-of-nanoparticles-in-sunscreens-an-updat">sheer mineral sunscreens</a> are also engineered nanoparticles, as is the <a href="https://doi.org/10.3390/ma12152493">carbon nanofiber in airplanes and bicycle frames</a>.</p>
<p>Nanoparticles are useful because they have different properties than larger materials, even when they have <a href="https://www.nano.gov/about-nanotechnology/what-is-so-special-about-nano">the same chemical composition</a>. For example, large particles of zinc oxide can’t be dissolved in water and are used as pigment in white paint. </p>
<p>Nanoscale zinc oxide is used in sunscreen, where it looks nearly transparent but reflects sunlight away from your skin to prevent sunburn. </p>
<p>Nanoscale zinc oxide also exhibits <a href="https://doi.org/10.1186/s11671-018-2532-3">antifungal and antibacterial properties</a> that could be useful for making antimicrobial surfaces, but the reason for its antimicrobial properties is not completely understood. </p>
<p>And therein lies the problem. While many scientists are interested in exploiting the positive properties of nanomaterials, my colleagues and I are concerned that scientists still <a href="https://doi.org/10.1089/hs.2022.0014">don’t know enough about their behavior</a>.</p>
<h2>Nanotechnology safety</h2>
<p>Nanoparticles are attractive to biomedical researchers because they can <a href="https://doi.org/10.1038/nbt.3330">slip through cell membranes</a>. The antimicrobial properties of nanoscale zinc oxide are probably related to their ability to cross bacterial cell membranes. But these nanoparticles can <a href="https://doi.org/10.1002/jat.4216">cross human cell membranes</a> as well.</p>
<p>In the United States, zinc oxide is “<a href="https://www.fda.gov/drugs/news-events-human-drugs/update-sunscreen-requirements-deemed-final-order-and-proposed-order">generally recognized as safe and effective</a>” by the Food and Drug Administration for products like sunscreen because it’s unlikely – in sunscreen – to be toxic to humans. </p>
<p>However, although scientists understand the health effects of large particles of zinc oxide fairly well, they <a href="https://theconversation.com/nanomedicines-for-various-diseases-are-in-development-but-research-facilities-produce-vastly-inconsistent-results-on-how-the-body-will-react-to-them-196652">don’t fully understand</a> the health effects of nanoscale zinc oxide. Laboratory studies using human cells have produced conflicting results, <a href="https://doi.org/10.3390%2Fijms21176305">ranging from inflammation to cell death</a>.</p>
<p>I’m a big believer in sunscreen. But I also worry about the environmental effects of particles that are <a href="https://oceanservice.noaa.gov/news/sunscreen-corals.html">known to cross cell membranes</a>. </p>
<p>Hundreds of tons of nano-zinc oxide are produced each year, and it doesn’t degrade easily. If we don’t understand its behavior better, there’s no way to predict whether it will eventually become a problem – though increasing evidence suggests nano-zinc oxide from sunscreen is <a href="https://www.smithsonianmag.com/science-nature/scientists-are-unraveling-new-dangers-sunscreen-coral-reefs-180969627/">damaging coral reefs</a>.</p>
<h2>Nanotechnology ethics</h2>
<p>Nanoparticles’ ability to cross cell membranes does make them effective in therapeutics like vaccines. Nanoparticles show promise for <a href="https://doi.org/10.1186%2Fs12951-023-01994-0">regenerating skeletal muscles</a>, and they could one day treat muscular dystrophy, or the natural atrophy that comes with age.</p>
<p>But COVID-19 vaccines provide a cautionary tale – nanoparticle-enabled COVID-19 vaccines were quickly adopted by the United States and Europe, but lower income countries had <a href="https://doi.org/10.2217%2Fnnm-2021-0024">far less access</a> due to patent protections on the vaccine and a lack of production and storage infrastructure. </p>
<p>Nanoparticles may also allow for human performance enhancements, ranging from <a href="https://www.jpost.com/health-science/new-eyedrops-could-repair-corneas-make-glasses-unneccessary-543344">better eyesight</a> to soldiers engineered to be <a href="https://doi.org/10.1016/j.medntd.2021.100095">more effective in combat</a>. </p>
<p>Without an ethical framework for their use, performance-enhancing nanotechnologies that are accessible only in certain places could deepen wealth gaps between high- and low-income countries.</p>
<h2>Emerging oversight</h2>
<p>Today, different countries treat nanoparticles differently. For example, the European Union’s <a href="https://health.ec.europa.eu/scientific-committees/scientific-committee-consumer-safety-sccs_en">Scientific Committee on Consumer Safety</a> has banned the use of nanoscale zinc oxide in aerosol sunscreens across the E.U., citing their potential to get into lung cells and, from there, move to other parts of the body. The United States has not taken similar action.</p>
<p>The European Union has established a <a href="https://joint-research-centre.ec.europa.eu/laboratories-and-facilities/jrc-nanobiotechnology-laboratory_en">nanobiotechnology laboratory</a> to study the health and environmental effects of nanoparticles. </p>
<figure>
<iframe width="440" height="260" src="https://www.youtube.com/embed/HauMN49GAIg?wmode=transparent&start=0" frameborder="0" allowfullscreen=""></iframe>
<figcaption><span class="caption">The EU’s nanobiotechnology laboratory is working to improve understanding of nanoparticles and their effects on larger biological systems.</span></figcaption>
</figure>
<p>In the United States, the <a href="https://www.nano.gov/about-nni">National Nanotechnology Initiative</a>, a coordinated government-sponsored research and development effort, is working to bring legal and ethical experts <a href="https://www.nano.gov/you/ethical-legal-issues">together with scientists</a>. They’ll weigh the benefits and risks of nanotechnologies and disseminate information to other scientists and the public. </p>
<p>Overcoming the disparity in nanoparticle-enabled vaccine distribution is another issue altogether. The World Health Organization’s COVAX program sought to ensure <a href="https://www.who.int/initiatives/act-accelerator/covax">fair and equitable access</a> to COVID-related therapeutics. Similar measures should be considered for all nanotechnology-enabled medicine so everyone can benefit.</p>
<p>Synthetic biology is a field that is experiencing similarly rapid growth. For the past 20 years, the nonprofit <a href="https://igem.org/">iGEM Foundation</a> has held an annual worldwide student competition, which it uses as a platform to teach young scientists to think about the broader implications of their work. </p>
<p>The iGEM Foundation requires participants to consider safety, security and whether their project is “<a href="https://responsibility.igem.org/human-practices/what-is-human-practices">good for the world</a>.” The nanotechnology research community would benefit greatly from adopting a similar model. Nanotechnologies that change the world for the better require coordinating science and ethics to shape how they are used and controlled long after we create them.</p><img src="https://counter.theconversation.com/content/211020/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Kristin Omberg has received funding from the Departments of Energy and Defense for research at the intersection of biology and nanotechnology. She is a Fellow of the American Association for the Advancement of Science, and a Fellow of and active volunteer in the American Chemical Society.</span></em></p>Nanoparticles have contributed to profound medical advances like the COVID-19 vaccine, but without oversight, they pose ethical and environmental issues.Kristin Omberg, Group Leader, Chemical and Biological Signatures, Pacific Northwest National LaboratoryLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2099562023-07-30T12:42:03Z2023-07-30T12:42:03ZOil and gas sector’s low compliance with methane regulations jeopardizes Canada’s net-zero goals<figure><img src="https://images.theconversation.com/files/539324/original/file-20230725-30-lynqd3.jpg?ixlib=rb-1.1.0&rect=0%2C0%2C5650%2C3763&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Chronic issues in methane emissions enforcement and measuring threatens the prospects of a net-zero future.</span> <span class="attribution"><span class="source">(AP Photo/David Goldman)</span></span></figcaption></figure><iframe style="width: 100%; height: 100px; border: none; position: relative; z-index: 1;" allowtransparency="" allow="clipboard-read; clipboard-write" src="https://narrations.ad-auris.com/widget/the-conversation-canada/oil-and-gas-sectors-low-compliance-with-methane-regulations-jeopardizes-canadas-net-zero-goals" width="100%" height="400"></iframe>
<p>Regulating greenhouse gas (GHG) emissions is an important part of Canada’s strategy to achieve net-zero emissions by 2050. However, a <a href="https://www.tandfonline.com/doi/full/10.1080/14693062.2023.2229295">newly published study</a> by our team of researchers at St. Francis Xavier University illustrates why regulation is only a first step.</p>
<p>When it comes to climate change, carbon dioxide gets the media attention. However, <a href="https://www.edf.org/climate/methane-crucial-opportunity-climate-fight">methane has 80 times more warming power within its first 20 years of reaching the atmosphere</a>. Targeting methane is an efficient way of reaching Canada’s emissions reduction goals.</p>
<p>Along with <a href="https://www.canada.ca/en/environment-climate-change/news/2021/10/canada-confirms-its-support-for-the-global-methane-pledge-and-announces-ambitious-domestic-actions-to-slash-methane-emissions.html">signing the Global Methane Pledge</a>, Canada has also <a href="https://www.canada.ca/en/environment-climate-change/news/2022/09/canada-releases-faster-and-further-canadas-methane-strategy2.html">introduced methane reduction targets</a> for its oil and gas sector. And while these developments would seem to indicate that Canada is progressing toward its emission reduction targets, our study highlights the importance of not just creating regulation but <em>enforcing</em> it.</p>
<h2>Low compliance decreases the certainty of achieving net-zero by 2050</h2>
<p>In 2020, new methane regulations came into effect in British Columbia’s oil and gas sector. <a href="https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/282_2010">The regulation</a> requires periodic leak detection and repair (LDAR) surveys at oil and gas facilities to reduce unintentional methane emissions caused by leaking infrastructure.</p>
<p>While it is worth acknowledging that our data is from the first year of regulation, which inevitably involves several challenges, the results were nonetheless disappointing. We found that, in 2020, B.C. oil and gas companies demonstrated <a href="https://www.tandfonline.com/doi/full/10.1080/14693062.2023.2229295">only 62 per cent compliance</a> with the provincial regulation.</p>
<figure class="align-center ">
<img alt="Methane leaks from a well in front of a line of trees." src="https://images.theconversation.com/files/539546/original/file-20230726-17-tgwt8l.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/539546/original/file-20230726-17-tgwt8l.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/539546/original/file-20230726-17-tgwt8l.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/539546/original/file-20230726-17-tgwt8l.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/539546/original/file-20230726-17-tgwt8l.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/539546/original/file-20230726-17-tgwt8l.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/539546/original/file-20230726-17-tgwt8l.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Methane leaks are a major source of greenhouse gas emissions.</span>
<span class="attribution"><span class="source">(Pennsylvania Department of Environmental Protection via AP)</span></span>
</figcaption>
</figure>
<p>Optimistic readers may see these compliance figures as positive; the glass is more than half full given most producers complied. However, the modelling on which emissions reduction regulations are based <a href="https://www.tandfonline.com/doi/full/10.1080/14693062.2023.2229295">assumes 100 per cent compliance</a>. </p>
<p>This means that 100 per cent compliance is required to achieve the outcomes that the regulations were designed to promote. </p>
<p>So, if 95 per cent wouldn’t be good enough to reach emissions reduction targets, 62 per cent <em>really</em> isn’t good enough. The gap between regulatory modelling and actual emissions reductions is a major barrier to reaching net-zero.</p>
<p>In 2020, compliance was likely impacted by the pandemic. However, the BC Energy Regulator <a href="https://www.bcogc.ca/news/bc-oil-and-gas-commission-covid-19-response-for-industry/">did not suspend its LDAR requirements in 2020</a> and producers were still expected to follow regulations. While the situation seems to have improved from 2020, compliance gaps remain.</p>
<h2>Policy lessons</h2>
<p>Data from the first year of methane regulation in B.C. has provided several important insights.</p>
<p>Principally, a 62 per cent compliance rate tells us that not enough is being done to enforce regulations. Canada needs to introduce enforcement mechanisms if it wants to achieve meaningful emission reductions from all producers.</p>
<p>One example of strong enforcement is in New Mexico where, only days after failing to report methane emissions, <a href="https://www.currentargus.com/story/news/2022/03/17/new-mexico-oil-gas-companies-fined-methane-violations-air-pollution/6999036001/">five oil and gas producers were fined a total of US$275,000</a>. </p>
<p>Fines aren’t the only option. A stricter permit renewal process, royalty rate variances, or restrictions on development can also help enforce regulation. If Canada introduced enforcement mechanisms, the gap between federal models and actual emissions should begin to close, putting us on a surer path to net-zero.</p>
<p>The second lesson from the study relates to LDAR methodology. Regulation requires that most facility types be surveyed with instruments. However, some facility types can be screened without the use of instruments, using only the senses of hearing, sight and smell. Our study showed that screening surveys are <a href="https://www.tandfonline.com/doi/full/10.1080/14693062.2023.2229295">overwhelmingly ineffective <em>and</em> more expensive</a>. </p>
<p>This conclusion is consistent with industry’s own <a href="https://methaneguidingprinciples.org/">Methane Guiding Principles</a>, which recommends that all LDAR surveying be done with instruments.</p>
<p>Another issue we found was that surveys conducted by oil and gas producers internally tended to report <a href="https://www.tandfonline.com/doi/full/10.1080/14693062.2023.2229295">unrealistic or sometimes very high values of methane</a> compared to surveys conducted by a third party. Where good measurements help us track the efficacy of methane regulations, inaccurate data clouds our picture of progress. Third-party verification would be a good idea.</p>
<figure class="align-center ">
<img alt="A flare burning off methane and other hydrocarbons is detected in the background next to an oil pumpjack as a cow walks through a field." src="https://images.theconversation.com/files/539548/original/file-20230726-25-o1kw5l.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/539548/original/file-20230726-25-o1kw5l.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/539548/original/file-20230726-25-o1kw5l.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/539548/original/file-20230726-25-o1kw5l.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/539548/original/file-20230726-25-o1kw5l.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=502&fit=crop&dpr=1 754w, https://images.theconversation.com/files/539548/original/file-20230726-25-o1kw5l.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=502&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/539548/original/file-20230726-25-o1kw5l.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=502&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">A number of precise instruments are available to measure methane emissions, including the Optical Gas Thermal Imaging Camera.</span>
<span class="attribution"><span class="source">(AP Photo/David Goldman)</span></span>
</figcaption>
</figure>
<p>Lastly, our study was possible because the relevant LDAR data was accessible. Currently, British Columbia is <a href="https://www.tandfonline.com/doi/full/10.1080/14693062.2023.2229295">the only province to publish LDAR data</a> associated with methane regulations. </p>
<p>Increasing the efficacy of our regulations requires publicly available data, but it’s also important that regulators improve <a href="https://www.tandfonline.com/doi/full/10.1080/14693062.2023.2229295">the lack of clarity surrounding the number and type of facilities in operation</a>. </p>
<p>Improved datasets would increase our ability to evaluate regulatory effectiveness. </p>
<h2>Changes to regulation must be implemented now</h2>
<p>With the impacts of climate change blazing across the country, it’s clear we must keep pushing forward. In studies like this one we learn how to maximize regulatory effectiveness. We can only achieve net zero if we act on these lessons.</p>
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Read more:
<a href="https://theconversation.com/methane-must-fall-to-slow-global-heating-but-only-13-of-emissions-are-actually-regulated-205941">Methane must fall to slow global heating – but only 13% of emissions are actually regulated</a>
</strong>
</em>
</p>
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<img src="https://counter.theconversation.com/content/209956/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>David Risk receives funding from the Natural Sciences and Engineering Research Council, Environment and Climate Change Canada, Natural Resources Canada, McCall MacBain Foundation, Petroleum Technology Research Centre, Petroleum Technology Alliance of Canada, Maritime Launch Services, Brian Mulroney Institute of Government, and annually conducts several small field measurement projects for oil and gas producers.</span></em></p><p class="fine-print"><em><span>Elise Canning and Martin Lavoie do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Regulating greenhouse gas emissions is an important part of Canada’s strategy to achieve net-zero emissions by 2050. However, a newly published study illustrates why enforcing regulation is key.David Risk, Brian Mulroney Institute of Government Research Chair in Climate Science and Policy, St. Francis Xavier UniversityElise Canning, FluxLab Researcher, St. Francis Xavier UniversityMartin Lavoie, Research Scientist and Data Analyst, St. Francis Xavier UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1989782023-02-09T13:35:35Z2023-02-09T13:35:35ZMedication abortion could get harder to obtain – or easier: There’s a new wave of post-Dobbs lawsuits on abortion pills<figure><img src="https://images.theconversation.com/files/508726/original/file-20230207-28-4ztdo9.jpg?ixlib=rb-1.1.0&rect=287%2C23%2C3706%2C2502&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Legal battles are being waged over mifepristone, one of two drugs used in medication abortion.</span> <span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/news-photo/mifepristone-and-misoprostol-the-two-drugs-used-in-a-news-photo/1241524154?adppopup=true">Robyn Beck/AFP via Getty Images</a></span></figcaption></figure><p>Medication abortion now accounts for <a href="https://www.cdc.gov/reproductivehealth/data_stats/abortion.htm">more than half of all abortions</a> in the United States.</p>
<p>Typically, patients take a <a href="https://theconversation.com/what-is-a-medication-or-medical-abortion-5-questions-answered-by-3-doctors-182646">two different pills</a>: first mifepristone, then misoprostol. </p>
<p>Even though this option has been legally available for more than two decades, two recent events have raised legal questions about it. First, the Supreme Court’s <a href="https://www.oyez.org/cases/2021/19-1392">Dobbs v. Jackson Women’s Health</a> ruling overturned the constitutional right to abortion recognized in 1973 in <a href="https://www.oyez.org/cases/1971/70-18">Roe v. Wade</a>. Second, in January 2023, the Food and Drug Administration decided that <a href="https://theconversation.com/what-the-fdas-rule-changes-allowing-the-abortion-pill-mifepristone-to-be-dispensed-by-pharmacies-mean-in-practice-5-questions-answered-197339">certified U.S. pharmacies could sell mifepristone</a> <a href="https://www.fda.gov/drugs/postmarket-drug-safety-information-patients-and-providers/questions-and-answers-mifepristone-medical-termination-pregnancy-through-ten-weeks-gestation">by prescription</a>.</p>
<p>The result is a raft of new legal battles over access to medication abortion.</p>
<p>Some <a href="https://www.smith.senate.gov/u-s-senator-tina-smith-and-rep-cori-bush-re-introduce-legislation-to-protect-access-to-medication-abortion/">congressional lawmakers seek</a> to protect the right to access the pills through pharmacies and telehealth in states where abortion remains legal. At least <a href="https://www.nytimes.com/2023/01/25/health/abortion-pills-ban-genbiopro.html">three lawsuits are pending</a>, and some states that have banned abortion altogether or have restricted access to it are vowing to block the new federal rules. South Dakota Governor Kristi Noem, for example, has <a href="https://apnews.com/article/abortion-health-sd-state-wire-south-dakota-medication-21146e96236c67244331a8cfe64e84d3">threatened to prosecute any pharmacist</a> who sells the pills in her state.</p>
<p><a href="https://www.law.virginia.edu/faculty/profile/nrc8g/2915359">As experts</a> on <a href="https://www.law.gwu.edu/sonia-m-suter">reproductive health and justice</a>, we’re trying to untangle when and where mifepristone might be available and what these contradictory trends signal.</p>
<figure>
<iframe width="440" height="260" src="https://www.youtube.com/embed/kzd4ABInBio?wmode=transparent&start=0" frameborder="0" allowfullscreen=""></iframe>
<figcaption><span class="caption">Mifepristone and misoprostol work in tandem to terminate a pregnancy.</span></figcaption>
</figure>
<h2>Prescribing abortion drugs</h2>
<p>Who has the authority to determine when, how or whether abortion medication can be prescribed and sold?</p>
<p>Under its long-held, congressionally granted authority to regulate pharmaceutical products, <a href="https://www.fda.gov/drugs/postmarket-drug-safety-information-patients-and-providers/information-about-mifepristone-medical-termination-pregnancy-through-ten-weeks-gestation">the FDA approved mifepristone in 2000</a> after an extensive review demonstrated that the drug was safe and effective for early pregnancy termination.</p>
<p>From the beginning, the sale of mifepristone was tied to several safety requirements known as a risk evaluation and mitigation strategy. Initially, the drug had to be dispensed by <a href="https://www.acog.org/news/news-articles/2022/03/understanding-the-practical-implications-of-the-fdas-december-2021-mifepristone-rems-decision">certified medical providers in person</a>.</p>
<p>But in late 2021, the FDA concluded that was no longer necessary for patient safety. Today, the pill, in its original or generic form, is approved for use up to 10 weeks’ gestation and can be <a href="https://www.fda.gov/drugs/postmarket-drug-safety-information-patients-and-providers/information-about-mifepristone-medical-termination-pregnancy-through-ten-weeks-gestation">dispensed by a certified prescriber or pharmacy</a>.</p>
<p>Recent lawsuits challenge the scope of the FDA’s authority to regulate the sale of mifepristone.</p>
<p>In one, GenBioPro, a drug company that makes generic mifepristone, <a href="https://www.courtlistener.com/docket/66756764/genbiopro-inc-v-sorsaia/">sued officials in West Virginia</a>, claiming that the state’s abortion ban impedes its sales. GenBioPro argues that the ban contradicts FDA’s approval of and safety requirements for mifepristone, setting up a conflict between federal and state law.</p>
<p>In short, the drugmaker argues that the federal regulations override West Virginia’s abortion restrictions. West Virginia Attorney General Patrick Morrisey, however, <a href="https://www.nytimes.com/2023/01/25/health/abortion-pills-ban-genbiopro.html">plans to defend the abortion ban vigorously because</a> “the U.S. Supreme Court has made it clear that regulating abortion is a state issue.”</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/508729/original/file-20230207-28-3c0zky.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Young women protest restrictions on access to abortion." src="https://images.theconversation.com/files/508729/original/file-20230207-28-3c0zky.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/508729/original/file-20230207-28-3c0zky.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=423&fit=crop&dpr=1 600w, https://images.theconversation.com/files/508729/original/file-20230207-28-3c0zky.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=423&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/508729/original/file-20230207-28-3c0zky.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=423&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/508729/original/file-20230207-28-3c0zky.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=532&fit=crop&dpr=1 754w, https://images.theconversation.com/files/508729/original/file-20230207-28-3c0zky.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=532&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/508729/original/file-20230207-28-3c0zky.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=532&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Protesters in Raleigh, N.C., object to the Supreme Court’s Dobbs ruling on June 25, 2022.</span>
<span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/news-photo/abortion-rights-demonstrators-gather-to-protest-against-the-news-photo/1241513344?phrase=north%20carolina%20abortion&adppopup=true">Peter Zay/Anadolu Agency via Getty Images</a></span>
</figcaption>
</figure>
<p>In another pending lawsuit, <a href="https://www.courtlistener.com/docket/66756666/bryant-v-stein/">Bryant v. Stein</a>, obstetrician-gynecologist Amy Bryant sued officials in North Carolina on similar grounds. Although North Carolina has not banned abortion, it imposes a number of restrictions, including a 72-hour waiting period before accessing medical or surgical abortions. </p>
<p>Bryant argues that the restrictions exceed the FDA requirements for dispensing mifepristone and are therefore preempted by federal law.</p>
<p>There is limited precedent in this area.</p>
<p>In one case, the manufacturer of an opioid – Zohydro – challenged a Massachusetts ban of the drug, even though the FDA had approved it. The federal court ruled for the manufacturer because the ban would “<a href="https://casetext.com/case/zogenix-inc-v-patrick">obstruct the FDA’s Congressionally-given charge</a>.”</p>
<p>That 2014 opinion might suggest that GenBioPro will succeed. On the other hand, a court might distinguish the two cases: Massachusetts banned Zohydro on public health grounds, which is squarely within the FDA’s authority, while West Virginia bans abortions on moral grounds – to protect fetal life – which is outside the FDA’s purview.</p>
<p>In the North Carolina case, the state does not ban mifepristone; it just imposes more restrictions than the FDA requires. Therefore, it is uncertain whether the Zohydro reasoning would be adopted. </p>
<p>A 2008 Supreme Court case, however, might be relevant.</p>
<p>In <a href="https://www.oyez.org/cases/2008/06-1249">Wyeth v. Levine</a>, a drugmaker claimed that FDA labeling requirements for a drug made by Wyeth, which was used to prevent allergies and motion sickness, preempted Vermont’s stricter labeling requirements. The Supreme Court rejected that argument. It concluded instead that allowing states to require stronger warnings didn’t interfere with Congress’ purpose in entrusting the FDA with drug labeling decisions.</p>
<p>Wyeth is not precisely like Bryant, however.</p>
<p>Whereas Wyeth dealt with labeling requirements, Bryant deals with regulations that affect access to a drug. Nevertheless, the Wyeth precedent could allow a court to permit states to impose stronger restrictions on access to mifepristone – as long as they fall short of banning the drug outright.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/509026/original/file-20230208-31-4ocqoh.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="A woman in scrubs gives a pill to a woman in black leggings and pink Crocs" src="https://images.theconversation.com/files/509026/original/file-20230208-31-4ocqoh.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/509026/original/file-20230208-31-4ocqoh.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=404&fit=crop&dpr=1 600w, https://images.theconversation.com/files/509026/original/file-20230208-31-4ocqoh.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=404&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/509026/original/file-20230208-31-4ocqoh.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=404&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/509026/original/file-20230208-31-4ocqoh.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=508&fit=crop&dpr=1 754w, https://images.theconversation.com/files/509026/original/file-20230208-31-4ocqoh.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=508&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/509026/original/file-20230208-31-4ocqoh.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=508&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Until now, most abortion drugs have been dispensed in person at clinics.</span>
<span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/news-photo/resident-gives-a-25-year-old-woman-medication-to-terminate-news-photo/1241513931">Gina Ferazzi / Los Angeles Times via Getty Images</a></span>
</figcaption>
</figure>
<h2>Banning mifepristone</h2>
<p>Another pending lawsuit may threaten the FDA’s authority to authorize any sales of mifepristone in the United States. </p>
<p>In <a href="https://adflegal.org/sites/default/files/2022-11/Alliance-for-Hippocratic-Medicine-v-FDA-2022-11-18-Complaint.pdf">Alliance for Hippocratic Medicine v. FDA</a>, a <a href="https://www.nytimes.com/2023/02/05/opinion/republicans-judges-biden.html">group of abortion opponents</a> asked a U.S. district court in November 2022 to force the FDA to stop allowing mifepristone sales anywhere in the United States. The lawsuit argues that the FDA “chose politics over science” and “exceeded its regulatory authority” in various ways, including allegedly disregarding “substantial evidence” that medication abortion is riskier than surgical abortions.</p>
<p>The <a href="https://www.guttmacher.org/2023/02/10-us-states-would-be-hit-especially-hard-nationwide-ban-medication-abortion-using?utm_source=substack&utm_medium=email">consequences could be quite significant</a>, and the issue <a href="https://www.washingtonpost.com/politics/2023/02/05/abortion-pills-texas-lawsuit">could even end up on the Supreme Court’s docket</a> in the future. Nevertheless, there are compelling legal reasons why this lawsuit should fail. </p>
<p><a href="https://www.bloomberglaw.com/public/desktop/document/AllianceforHippocraticMedicineetalvUSFoodandDrugAdministrationeta/1?doc_id=X5HTS5K5059AJ9KRB669CPR0KQ">Some of the same organizations have tried</a> to challenge the FDA’s approval of mifepristone before – without success. And in 2008, <a href="https://www.gao.gov/assets/gao-08-751.pdf">the Government Accountability Office found no irregularities</a> in the FDA’s approval and oversight of mifepristone. </p>
<p>In contradiction to the plaintiffs’ safety argument, <a href="https://doi.org/10.1016/j.contraception.2015.01.005">numerous studies have shown</a> <a href="https://nap.nationalacademies.org/read/24950/chapter/4#53">mifepristone</a> to <a href="https://www.ipas.org/clinical-update/english/recommendations-for-abortion-before-13-weeks-gestation/medical-abortion/safety-and-effectiveness/">be a safe</a> <a href="https://doi.org/10.1097/aog.0000000000000897">and effective</a> <a href="https://doi.org/10.1016/j.jogc.2020.04.006">drug</a>.</p>
<p>Nevertheless, <a href="https://www.vox.com/policy-and-politics/2022/12/17/23512766/supreme-court-matthew-kacsmaryk-judge-trump-abortion-immigration-birth-control">U.S. District Court Judge Matthew Kacsmaryk</a>, who sits in Amarillo, Texas, and is hearing this case regarding whether the FDA should rescind its approval of mifepristone, has not been supportive of reproductive rights in the past. Thus, it is possible that the court could try to stop the FDA from allowing mifepristone to be sold in that part of Texas or even, possibly, across the entire nation.</p>
<p>If the court prevents the sale of mifepristone nationwide, medication abortions would only be possible with the other pill, misoprostol, which is also <a href="https://www.ncbi.nlm.nih.gov/books/NBK539873/#:%7E:text=Currently%2C%20misoprostol%20is%20FDA%20approved,at%20high%20risk%20for%20ulceration">approved for other purposes</a>. Recent data suggests that this one-drug approach to medication abortions may <a href="https://www.theatlantic.com/health/archive/2022/09/abortion-pill-misoprostol-effectiveness/671465/">safely and effectively induce abortion</a>. </p>
<h2>Pills in interstate commerce</h2>
<p>In addition to questions of whether the FDA’s authority can override state-imposed abortion restrictions, there’s a second issue concerning the ability to sell the pills through interstate commerce. </p>
<p>As the <a href="https://perma.cc/M6BA-2ZFZ">Supreme Court has explained</a>, the Constitution <a href="https://www.oyez.org/cases/2011/11-393">grants Congress the authority to regulate</a> “things in interstate commerce,” as well as “those activities that substantially affect interstate commerce.”</p>
<p>Thus, in the GenBioPrio lawsuit pending in West Virginia, the company argues that <a href="https://www.documentcloud.org/documents/23586762-genbiopro-wv-lawsuit">state efforts to restrict sale of the pill are unconstitutional</a>.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/508731/original/file-20230207-16-u1jg3u.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Large beige building with a bright green lawn" src="https://images.theconversation.com/files/508731/original/file-20230207-16-u1jg3u.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/508731/original/file-20230207-16-u1jg3u.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/508731/original/file-20230207-16-u1jg3u.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/508731/original/file-20230207-16-u1jg3u.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/508731/original/file-20230207-16-u1jg3u.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/508731/original/file-20230207-16-u1jg3u.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/508731/original/file-20230207-16-u1jg3u.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">An organization that opposes abortion filed a lawsuit in a court located in Amarillo, Texas, that seeks to revoke the FDA’s approval of mifepristone.</span>
<span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/news-photo/potter-county-courthouse-in-downtown-amarillo-texas-news-photo/1178112126?phrase=amarillo%20district%20court&adppopup=true">Don & Melinda Crawford/Education Images/Universal Images Group via Getty Images</a></span>
</figcaption>
</figure>
<h2>Mailing abortion pills</h2>
<p>Many people are also taking <a href="https://www.plancpills.org/guide-how-to-get-abortion-pills">abortion pills they get through the mail</a>. In response to that trend, <a href="https://www.axios.com/2023/02/01/attorney-general-letter-cvs-walgreens-abortion">20 Republican state attorneys general recently threatened</a>
pharmacies with “legal consequences” if they mail and distribute mifepristone. </p>
<p>An 1873 law, the <a href="https://www.law.cornell.edu/uscode/text/18/1461">Comstock Act</a>, is central to the issue of whether it is legal to mail abortion pills. That law makes it a crime to use the mail for any “lewd, lascivious, indecent, filthy or vile article” as well as any “article, instrument, substance, drug, medicine or thing which is advertised or described in a manner calculated to lead another to use of apply it for producing abortion.”</p>
<p>When the <a href="https://theconversation.com/proposed-federal-abortion-ban-evokes-19th-century-comstock-act-a-law-so-unpopular-it-triggered-the-centurylong-backlash-that-led-to-roe-188681">Comstock Act</a> was enacted, of course, modern delivery services like FedEx and UPS did not exist. But the law also prohibits any “express company” from engaging in the same acts. </p>
<p>The U.S. Postal Service asked the Justice Department whether abortion pills can be mailed under the Comstock Act, and it responded with a <a href="https://www.justice.gov/olc/opinion/file/1560596/download">carefully worded 21-page opinion</a> in late December 2022. The opinion concludes that mailing the abortion pills is not illegal so long as the sender “lacks the intent that the recipient of the drugs will use them unlawfully.” </p>
<p>As the opinion pointed out, recipients could use the drugs for a variety of reasons that would be legal in every state. For example, the combination can “treat a miscarriage,” and misoprostol can prevent and treat <a href="https://www.mayoclinic.org/drugs-supplements/misoprostol-oral-route/side-effects/drg-20064805">gastric ulcers</a>.</p>
<p>Regardless of how Judge Kacsmaryk rules, we expect to see medication abortion remain available in states that don’t have abortion bans. But we also are certain that legal challenges over abortion access will continue.</p><img src="https://counter.theconversation.com/content/198978/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>The authors do not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.</span></em></p>A rash of pending lawsuits raises questions about the FDA’s approval of mifepristone two decades ago, whether the drug can be legally mailed and the constitutional right to interstate commerce.Naomi Cahn, Professor of Law, University of VirginiaSonia Suter, Professor of Law, George Washington UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1947792022-11-25T07:42:35Z2022-11-25T07:42:35ZWhy the UK needs to stop exporting plastic waste<figure><img src="https://images.theconversation.com/files/495846/original/file-20221117-22-wv1tzw.jpg?ixlib=rb-1.1.0&rect=8%2C0%2C5960%2C3964&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">The mismanagement of plastic waste is one of the main causes of plastic pollution in nature.</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/spilled-garbage-on-beach-big-city-1060330253">Larina Marina/Shutterstock</a></span></figcaption></figure><p>The world produces a vast amount of plastic. Global plastic production <a href="https://www.pewtrusts.org/-/media/assets/2020/07/breakingtheplasticwave_report.pdf">increased</a> from 2 million metric tons in 1950 to 348 million metric tons in 2017. Yet much of this plastic is wasted: <a href="https://www.pewtrusts.org/-/media/assets/2020/10/breakingtheplasticwave_mainreport.pdf">86%</a> of the world’s plastic waste in 2016 was either incinerated, sent to landfill or leaked into nature. </p>
<p>Many countries use international trade to manage their plastic waste. The justification for this is that plastic waste can be treated in destinations with better capacity for waste treatment. The UK, lacking capacity itself, <a href="https://wrap.org.uk/sites/default/files/2020-12/PackFlow%20COVID-19%20Plastic%20Phase%20I%20Report%20FINAL%20v2.pdf">exports 60%</a> of its plastic waste abroad. But in a recent <a href="https://committees.parliament.uk/publications/31509/documents/176742/default/">report</a>, the House of Commons Environment, Food and Rural Affairs Committee – the group of MPs responsible for improving and protecting the environment – have called on the government to stop the export of UK plastic waste by the end of 2027. </p>
<p>The movement of hazardous waste is controlled by an international agreement called the <a href="http://www.basel.int/">Basel Convention</a>. It requires the consent of the receiving country, accurate labelling of waste, and notification when plastic waste has been treated for waste to be exported legally. The Convention has recently increased the range of plastics that fall within its remit.</p>
<p>China has long been the <a href="https://www.nature.com/articles/s41467-020-20741-9">world’s leading</a> plastic waste importer. But in 2017 its government banned plastic waste imports, citing concerns over the low quality of material received. This has displaced vast quantities of plastic waste. The UK now exports <a href="https://wrap.org.uk/sites/default/files/2021-10/WRAP-Plastics-Market-Situation-Report-2021.pdf">most of its plastic waste</a> to Turkey, Indonesia, Vietnam, Malaysia and the Netherlands. </p>
<h2>Passing the burden</h2>
<p>The import of plastic waste is a valuable source of foreign exchange for many countries. But these countries often have limited waste treatment infrastructure.</p>
<p>Uncontrolled imports can therefore lead to the volume of plastic waste received exceeding the capacity of a country to cope with it. It also displaces its ability to treat its own domestic waste. The result is more plastic waste than can be safely handled and high levels of mismanagement. </p>
<p>Once a country has received the waste, monitoring of the treatment process is also scarce. A <a href="https://www.greenpeace.org/international/press-release/47759/investigation-finds-plastic-from-the-uk-and-germany-illegally-dumped-in-turkey/">Greenpeace investigation</a> in 2021 found evidence of plastic waste from the UK and Germany dumped illegally across 10 sites in southwestern Turkey.</p>
<p><div data-react-class="Tweet" data-react-props="{"tweetId":"1492560606364377095"}"></div></p>
<p>But mismanaged plastic waste is one of the main causes of plastic pollution in nature. One <a href="https://www.pewtrusts.org/-/media/assets/2020/10/breakingtheplasticwave_mainreport.pdf">report</a> estimates that 56% (239 million metric tonnes) of global annual plastic waste production by 2040 will be subject to mismanagement.</p>
<p>Exporting plastic waste also raises ethical questions. It allows exporting nations to forgo their responsibility to deal with their own plastic waste while claiming to be managing their waste responsibly.</p>
<h2>Upstream solutions</h2>
<p>A more systemic and responsible way of dealing with plastic waste is to reduce plastic consumption. The Committee’s report recommends measures that focus on reducing plastic waste at source, rather than improving the ability of waste treatment infrastructure to manage a greater capacity of waste. </p>
<figure class="align-center ">
<img alt="A brown paper bag with the text 100% recyclable and reusable printed on the bottom." src="https://images.theconversation.com/files/495851/original/file-20221117-17-5g7jto.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/495851/original/file-20221117-17-5g7jto.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/495851/original/file-20221117-17-5g7jto.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/495851/original/file-20221117-17-5g7jto.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/495851/original/file-20221117-17-5g7jto.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/495851/original/file-20221117-17-5g7jto.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/495851/original/file-20221117-17-5g7jto.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">The Committee of MPs recommend solutions that reduce plastic use at source.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/brown-paper-bag-that-100-recyclable-1506701819">Dr. Victor Wong/Shutterstock</a></span>
</figcaption>
</figure>
<p>The key suggestion was to accelerate the introduction of <a href="https://www.oecd.org/env/tools-evaluation/extendedproducerresponsibility.htm">Extended Producer Responsibility schemes</a>. Extended Producer Responsibility is an approach that aims to make companies bear a greater proportion of the cost of disposing the plastic they use for products put on the market. These schemes will apply to all companies in the UK who put at least 1 tonne of plastic packaging on the market each year by 2030, encouraging them to reduce their production of plastic waste. This can be achieved through innovations to “design out” plastics or by transitioning to a <a href="https://wrap.org.uk/taking-action/climate-change/circular-economy">circular economy</a> where plastic materials are reused or fully recycled. </p>
<p>The Committee’s report recommends the establishment of a plastic reuse task force, composed of representatives from industry and consumer groups. The group would coordinate strategies including incentives to adopt business models that encourage the reuse of plastic materials, single-use plastic charges, mandatory reporting on a company’s plastic footprint, and public campaigns to raise the profile of reuse schemes.</p>
<p>Deposit-return schemes also help and are already in progress in the UK. In 2023, <a href="https://depositreturnscheme.zerowastescotland.org.uk/">Scotland</a> will launch a national programme where people will pay a 20p deposit when they buy a drink in a plastic bottle or can, which will be repaid when the empty container is returned.</p>
<h2>Plastic waste is a global problem</h2>
<p>The recommendations made by the Committee are a positive step forward and would place the UK in a position of international leadership on tackling plastic pollution. But plastic value chains are transnational and waste is generated at each stage. This reduces the effectiveness of isolated national action. </p>
<p>National policies often do not have the reach or influence to tackle the global causes of plastic pollution. <a href="https://plasticspolicy.port.ac.uk/wp-content/uploads/2022/10/GPPC-Report.pdf">Research</a> that I co-authored found that isolated policies including national bans on plastic products are ineffective in reducing the generation of plastic waste. Fragmented national policies can also create loopholes in international policy that inadvertently reroutes plastic waste towards the destinations least equipped to deal with it. </p>
<p>But earlier this year, 173 countries formally adopted a <a href="https://wedocs.unep.org/xmlui/bitstream/handle/20.500.11822/39764/END%20PLASTIC%20POLLUTION%20-%20TOWARDS%20AN%20INTERNATIONAL%20LEGALLY%20BINDING%20INSTRUMENT%20-%20English.pdf?sequence=1&isAllowed=y">UN resolution</a> to start negotiations for a global legally binding agreement to end plastic pollution by the end of 2024. The <a href="https://www.wto.org/english/tratop_e/ppesp_e/ppesp_e.htm">World Trade Organisation</a> has also launched an initiative to explore how trade policies can be used to reduce plastic pollution. International cooperation over plastic waste policy, along with the legal power of the Basel Convention, <a href="https://www.nature.com/articles/s43017-022-00361-1">offers hope</a> of a coordinated global response to plastic pollution that avoids policy fragmentation. </p>
<p>Environmental groups are critical of the trade in plastic waste. The Committee’s recommendation to ban UK plastic waste exports by 2027 is therefore an ambitious and welcome step forwards in tackling plastic pollution. But without global action, isolated national policies will not deliver change on the scale required to end this controversial trade.</p><img src="https://counter.theconversation.com/content/194779/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Steve Fletcher has received funding from the UN Environment Programme. He is a member of the UN International Resource Panel. </span></em></p>Many countries export their plastic waste abroad – but the mismanagement of this plastic waste is one of the leading causes of plastic pollution in nature.Steve Fletcher, Professor of Ocean Policy and Economy, University of PortsmouthLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1927042022-10-20T13:14:12Z2022-10-20T13:14:12ZCorporate spending in state politics and elections can affect everything from your wallet to your health<figure><img src="https://images.theconversation.com/files/490190/original/file-20221017-7289-9wr57o.jpeg?ixlib=rb-1.1.0&rect=0%2C4%2C2916%2C2004&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">From Alaska to Alabama, corporations spend money to shape their local business environments, resources and regulations. </span> <span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/photo/campaign-donations-royalty-free-image/1398882607?phrase=political%20donations&adppopup=true">Douglas Rissing/ iStock / Getty Images Plus</a></span></figcaption></figure><p>Political spending by corporations is big business. </p>
<p>As one corporate executive with experience in business-government relations says, “A company that is dependent on government that does not donate to politicians is engaging in corporate malpractice.” </p>
<p>Our research group heard that statement during a series of interviews with industry insiders that we conducted for <a href="https://journals.aom.org/doi/abs/10.5465/amj.2017.1258">a study on corporate political strategy and involvement</a> in U.S. state politics. </p>
<p>In the 2020 election cycle, private interests spent <a href="https://www.opensecrets.org/political-action-committees-pacs/2022">US$486 million on campaign contributions</a> to U.S. federal election candidates and over <a href="https://www.opensecrets.org/federal-lobbying">$7 billion</a> to lobby Congress and federal agencies.</p>
<p>The 2022 cycle could be a record period if recent trends are any indication. At the federal level, <a href="https://www.opensecrets.org/news/2020/12/most-expensive-races-of-all-time-senate2020/">nine of the 10 most expensive Senate races to date happened during the 2020 election cycle</a>. Notably, Georgia was home to the <a href="https://www.opensecrets.org/news/2021/01/georgia-senate-races-shatter-records/">two most expensive Senate contests of all time in 2020</a>, with candidates and outside groups spending over $800 million on the two races combined.</p>
<p>Data from campaign finance monitor the <a href="https://www.opensecrets.org/federal-lobbying/top-spenders">Center for Responsive Politics</a> shows that those companies most affected by government regulation spend more. The operations of Facebook owner Meta, for example, could be heavily affected by government legislation, whether from laws concerning <a href="https://www.bbc.com/news/technology-42096185">net neutrality</a>, <a href="https://gdpr.eu/the-gdpr-meets-its-first-challenge-facebook/">data privacy</a> or <a href="https://www.abajournal.com/magazine/article/social-clashes-digital-free-speech">censorship</a>. Meta spent nearly $7.8 million in contributions and $36.4 million in lobbying <a href="https://www.opensecrets.org/orgs/summary?toprecipcycle=2020&contribcycle=2020&lobcycle=2020&outspendcycle=2020&id=D000033563&topnumcycle=2020">during the 2020 cycle</a>. </p>
<p>This kind of political spending is also common across state governments. From Alaska to Alabama, <a href="https://www.followthemoney.org/">corporations spend huge sums of money</a> to influence policymaking because they depend on their local business environments, resources and regulations. </p>
<p>Contributions to gubernatorial and state legislative candidates <a href="https://www.followthemoney.org/research/institute-reports/joint-report-reveals-record-donations-in-2020-state-and-federal-races">set records during the 2020 cycle</a>, nearing $1.9 billion. That was up from $1.57 billion during the 2016 cycle and $1.4 billion during the 2012 cycle. Contributions in the 2020 cycle represented a nearly 21% increase from 2016. Both major political parties tend to receive roughly the same level of contributions, though the numbers can vary from year to year.</p>
<p>As the next election approaches, corporate involvement in state politics is vital to understand. </p>
<p>Companies’ attempts to manage state regulations have important effects on their operations directly as well as on state revenues and on the lives of state residents. Corporations can affect <a href="https://academic.oup.com/sf/article-abstract/90/3/947/2235830">the air that you breathe, the water you drink</a> and <a href="https://apnews.com/bd8a878c5fe84ea48ffbcf05b4edba0e">the taxes you pay</a>. </p>
<h2>External forces spark donations</h2>
<p>A <a href="https://journals.aom.org/doi/abs/10.5465/amj.2017.1258">study we conducted</a> with colleagues <a href="https://robins.richmond.edu/faculty/asutton/">Trey Sutton</a> and <a href="https://business.fsu.edu/person/bruce-lamont">Bruce Lamont</a> provides insight into the details of when and why corporations contribute to state gubernatorial and legislative candidates. </p>
<p>We examined political contributions by publicly traded companies in elections for governor and the legislature across the 50 U.S. states. The companies we studied (e.g., ExxonMobil and 3M) all operate in environmentally intensive industries – oil and gas, chemical, energy and manufacturing industries. Specifically, the companies in these industries have industrial manufacturing processes <a href="https://www.forbes.com/sites/christopherhelman/2013/06/10/americas-20-worst-corporate-air-polluters/#403cf82d41c6">that create toxic releases</a>. </p>
<p>We also interviewed industry insiders, political affairs consultants and lobbyists to complement our empirical findings. </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/343567/original/file-20200623-188882-1tzlhzd.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/343567/original/file-20200623-188882-1tzlhzd.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=374&fit=crop&dpr=1 600w, https://images.theconversation.com/files/343567/original/file-20200623-188882-1tzlhzd.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=374&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/343567/original/file-20200623-188882-1tzlhzd.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=374&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/343567/original/file-20200623-188882-1tzlhzd.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=470&fit=crop&dpr=1 754w, https://images.theconversation.com/files/343567/original/file-20200623-188882-1tzlhzd.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=470&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/343567/original/file-20200623-188882-1tzlhzd.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=470&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">ExxonMobil is one of many companies that will likely spend a lot of money on upcoming elections.</span>
<span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/news-photo/anastasia-hinchsliff-fuels-her-suv-at-an-exxon-mobile-gas-news-photo/103157613?adppopup=true">John Gress/Getty Images</a></span>
</figcaption>
</figure>
<p>At the core, companies spend when they are dependent on states, meaning that they have vested interests and operations in a state that are subject to regulation. Regulation creates uncertainty for managers – which they don’t like. Spending helps alleviate the uncertainty by influencing what regulation may be imposed. </p>
<p>Our study went beyond this observation, and had four major insights:</p>
<p><strong>1. Corporations spend when they are worried about negative media coverage prompting what they perceive to be potentially harmful regulations.</strong></p>
<p>As one executive told us, “We spend a lot of time tracking media and local advocacy groups. We track [them] on a daily basis, and I get a report each week.” </p>
<p>Media coverage can drive public perceptions of corporations and influence politicians’ views. In particular, media coverage can amplify misdeeds of companies across states, which worries managers who do not want to see new regulations. In line with this, we found that the companies spent 70% more in states they operated in when national media coverage was more negative rather than less negative. </p>
<p>We found that this effect was exclusive to national media coverage as opposed to local media coverage. Specifically, when local media coverage was more negative, it did not appear to affect political spending. </p>
<p><strong>2. Corporations spend when there are powerful social movement organizations – for example, environmental protection groups – within a state.</strong></p>
<p>“Public relations firms are routinely engaged to monitor activists and the media, because if you don’t watch them, they can create regulatory change. You have to get ahead of it,” an executive said. </p>
<p>Social movement organizations (e.g., Sierra Club and the Rainforest Action Network) help <a href="https://www.jstor.org/stable/3312913?casa_token=5XA3RUoopBYAAAAA%3Agc06Z6cwRA6ODbgPUOkHwk2Ea7XB43KocZhFtMZjaTyH0UlKbOim5uAZS9QniQ1k9hXjtwGYyCEbovm__npFAuKOb467j57cqa12omJC4o1tzHJrUl--&seq=1#metadata_info_tab_contents">shape public opinion on important issues, pursue institutional change and can prompt legal reform</a> as well, which is a concern to corporations. Our research indicated that in states where they had operations, companies spent 102% more when facing greater opposition from social movement organizations than they would have on average. </p>
<p><strong>3. Corporations spend to gain a seat at the legislative table to communicate their interests.</strong></p>
<p>A political affairs consultant and lobbyist said, “Regulations are a negotiation, there is not a logic, no rule of law, lobbyists come in here…” In essence, legislators rely on policy experts and analysts, among others, when crafting new legislation, but often, solutions can be unclear with competing demands and interests. </p>
<p>Our interviewees shared with us that companies spread their contributions around to those politicians who they believe will listen to their causes and concerns – regardless of party. </p>
<p>They described themselves as wanting their voices heard on particular issues and as important players in the states in which they operate due to the employment and tax base they bring to states. </p>
<p>Boeing, for example, was the <a href="https://www.bizjournals.com/seattle/news/2021/10/06/amazon-microsoft-boeing-largest-employers.html">largest private employer in Washington state for decades</a> and has been able to <a href="https://www.reuters.com/article/us-boeing-incentives/boeing-lobby-group-team-up-to-defend-8-7-billion-in-state-tax-breaks-idUSKBN14U23V">secure tax breaks</a> as a result. This is despite <a href="https://www.seattletimes.com/seattle-news/environment/boeing-discharge-to-duwamish-violates-pcb-standards/">documented environmental problems that Boeing’s operations have had in the state.</a> </p>
<p><strong>4. Corporations spend because they see it as <a href="https://www.businessroundtable.org/about-us">consistent with their responsibility to stakeholders</a>.</strong> </p>
<p>“Companies mostly want certainty, they want to know the bottom line, and engagement can create opportunities,” said one political affairs consultant. </p>
<p>Corporations have a legal and ethical responsibility to their stakeholders. Company leaders often believe they are upholding their responsibilities to shareholders, employees, communities, customers and suppliers by participating in the political process. </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/343565/original/file-20200623-188936-v56a1n.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/343565/original/file-20200623-188936-v56a1n.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/343565/original/file-20200623-188936-v56a1n.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/343565/original/file-20200623-188936-v56a1n.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/343565/original/file-20200623-188936-v56a1n.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/343565/original/file-20200623-188936-v56a1n.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/343565/original/file-20200623-188936-v56a1n.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">California lawmakers often set more stringent environmental policies than most other states.</span>
<span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/news-photo/state-capitol-building-sacramento-california-news-photo/661870070?adppopup=true">Education Images/Universal Images Group via Getty Images</a></span>
</figcaption>
</figure>
<h2>What are the stakes?</h2>
<p>There can be huge repercussions for companies in state regulation. As one political affairs consultant told us, “[Regulation] is the pot at the end of the rainbow that could create endless possibilities of profit. It’s the only thing that stands between them and unending profits …” </p>
<p>Ride hailing service Uber, for example, mounted <a href="https://www.theregreview.org/2018/06/28/schriever-uber-lyft-lobby-deregulation-preemption/">protracted political campaigns</a> aimed at state legislatures and local governments to protect the company’s interests. One result: The ride hailing service has been able to get independent contractor status for their drivers in many states, which means the company does not have to provide unemployment insurance, workers’ compensation and other benefits. </p>
<p>Passage of regulations in large states like California, for example, can have nearly as much impact as a national regulation, making their passage far more significant for companies working nationally. </p>
<p>Since California sets more <a href="https://theconversation.com/why-california-gets-to-write-its-own-auto-emissions-standards-5-questions-answered-94379">stringent emissions standards</a> for vehicles than most other states, manufacturers designing cars for the U.S. market must make sure their vehicles can pass these standards. In this way, California and other states <a href="https://www.latimes.com/politics/story/2020-06-22/nevada-will-adopt-californias-car-pollution-standards">following its lead</a> pose a larger regulatory hurdle for auto manufacturers. </p>
<h2>Where does this leave us?</h2>
<p>Corporate involvement in state politics is an important phenomenon. Corporations provide needed products and services, and also bring jobs and increased investment to states, which can strengthen communities and state economies. Their operations also can bring health and environmental problems for state residents.</p>
<p><a href="https://fivethirtyeight.com/features/where-are-georgias-senate-candidates-getting-all-that-cash-from/">As the 2020 Georgia U.S. Senate races suggest</a>, campaign donations for candidates for federal office increasingly come from outside the state. <a href="https://www.followthemoney.org/research/institute-reports/joint-report-reveals-record-donations-in-2020-state-and-federal-races">While this pattern does not pervade state elections yet</a>, it raises questions about politicians’ responsiveness to the issues most relevant to their local constituencies.</p>
<p>Given the changed business landscape – <a href="https://www.wsj.com/articles/how-much-covid-19-cost-those-businesses-that-stayed-open-11592910575">and increased operating costs</a> – caused by the coronavirus pandemic, we expect that businesses across the country will continue to be interested in influencing policies ranging from workplace safety to local and state tax breaks. This interest will likely translate into significant spending in the upcoming election, to both major parties and their candidates.</p>
<p>And that political spending will affect everything from your wallet to your health.</p>
<p><em>This is an updated version of a <a href="https://theconversation.com/money-talks-big-business-political-strategy-and-corporate-involvement-in-us-state-politics-140686">story originally published on June 29, 2020</a>.</em></p><img src="https://counter.theconversation.com/content/192704/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>The authors do not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Businesses can spend huge amounts of money to influence Congress. But sizable lobbyist and campaign donations also go to state campaigns and lawmakers to influence policymaking.Richard A. Devine, Assistant Professor of Management, DePaul UniversityR. Michael Holmes Jr., Jim Moran Professor of Strategic Management, Florida State UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1885662022-08-28T08:06:02Z2022-08-28T08:06:02ZForeign banks are absent in Nigeria. We tracked down why<figure><img src="https://images.theconversation.com/files/479163/original/file-20220815-15-kn4fyv.jpeg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Central Bank of Nigeria, Ibadan zonal office. </span> <span class="attribution"><span class="source">Wikimedia Commons</span></span></figcaption></figure><p>Privately owned Nigerian banks hold <a href="https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&cad=rja&uact=8&ved=2ahUKEwj3uenNlsv5AhXJbMAKHUSyCiEQFnoECAYQAw&url=https%3A%2F%2Fpapers.ssrn.com%2Fsol3%2FDelivery.cfm%3Fabstractid%3D3001552%23%3A%7E%3Atext%3DWith%252094%2525%2520of%2520banking%2520assets%2Conly%2520of%2520Israel%2520with%252097%2525.&usg=AOvVaw2R4DoupOa-TJpp5NDa-jU-">94% of Nigerian banking assets</a>. Only <a href="https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&ved=2ahUKEwiGk-fvlsv5AhWkQUEAHUGFBCEQFnoECBUQAw&url=https%3A%2F%2Fwww.bis.org%2Fpubl%2Fbppdf%2Fbispap54n.pdf&usg=AOvVaw0CyQekrDcjPn4Y0zBqugXl">one other country</a> in the world – Israel – has a higher share of ownership by local banks. The share of banking assets is the most reliable way to measure market power and competitive position. </p>
<p>Some of the world’s largest banks are active in other parts of Africa. But they are either not present in Nigeria or have minimal activity in the country. </p>
<p>This competitive dynamic is unlike other countries’ banking industries. It’s also unlike other industries in Nigeria, which are dominated by foreign firms. </p>
<p>One theory about the reason is that foreign firms experience challenges outside their own countries simply because they are foreign. Another is that local banks have an easier time since they’re rooted in the country. </p>
<p>But these theories don’t hold water in Nigeria. It is Africa’s largest and most populous country. It has the <a href="https://www.worldbank.org/en/publication/gfdr/data/global-financial-development-database">second largest financial sector</a> in sub-Saharan Africa. And with annual average GDP growth since independence <a href="https://databank.worldbank.org/source/world-development-indicators">above 4%</a>, Nigeria is on par with the fastest growing African economies. Its <a href="https://databank.worldbank.org/source/world-development-indicators">per capita GDP growth</a> has been ahead of all except Egypt. Overall, Nigeria offers attractive opportunities for foreign banks.</p>
<p>For decades, the country has been among Africa’s <a href="https://unctad.org/topic/investment/investment-statistics-and-trends">major recipients of foreign direct investment</a> in other industries. </p>
<p>But, in contrast to the market position and competitive prowess of foreign banks in most other African countries, their activity in Nigeria is tiny. They focus on serving the cross border transactions of large foreign multinationals investing in Nigeria. Vast opportunities in this market are left untapped.</p>
<p>Our in-depth <a href="https://www.tandfonline.com/doi/full/10.1080/23322373.2019.1648999">study</a> of the Nigerian banking industry, published in 2019, offers some clues as to why.</p>
<h2>The drivers</h2>
<p>The paper was based on interviews with industry experts and practitioners. We also reviewed published and unpublished documents on the industry and its historical development.</p>
<p>Common explanations for the superior performance of local firms focus on government’s support via subsidies, taxes and the like. Less attention has been paid to government policies in shaping market structure and creating a competitive environment that is conducive to developing competitive strength. This study demonstrates how such regulation enables Nigerian banks to dominate the market and arrest the growth of foreign banks.</p>
<p>Policy makers in other countries may want to emulate this approach to upgrade their local banking industry based on indigenous capabilities.</p>
<h2>What is different about Nigeria’s banking industry?</h2>
<p>Nigeria’s regulatory approach towards both foreign and indigenous banks has been a unique one since independence. It created a balanced market structure which allows banks to innovate and upgrade their capabilities. </p>
<p>A liberal approach towards foreign entry, combined with firm regulation of local banks, spurred healthy competition and created constant pressure for improvement. </p>
<p>This regulatory approach encouraged the emergence of banks large enough to develop competitive strength and to invest in capability development.</p>
<p>The three largest banks in Nigeria account for about 40% of total banking assets in the country. This is half that of South Africa and the average for sub-Saharan Africa. It is also considerably lower than the averages of all other emerging regions.</p>
<p>This suggests the industry has been sufficiently fragmented to prevent strong market players from reducing incentives for capacity development. This fragmentation created competitive pressure that forced the banks to upgrade capability in order to survive and succeed. </p>
<p>By the end of the 2010s, there were over <a href="https://www.cbn.gov.ng/Supervision/Inst-DM.asp">20 banks in Nigeria</a> licensed to provide banking services. The number had been declining continually since independence in a consolidation process imposed by a series of regulatory interventions. These raised the minimum capital requirements for entry to the industry and for continuous operation in order to ensure adequate capitalisation. </p>
<p>A strict governance code imposed corporate governance standards that conform to international best practices, with high levels of transparency and accountability. A revised capital-base requirement introduced in response to the <a href="https://www.cbn.gov.ng/OUT/2012/PUBLICATIONS/REPORTS/STD/GLOBAL%20FINANCIAL%20MELTDOWN%20AND%20THE%20REFORMS%20IN%20THE%20NIGERIAN%20BANKING%20SECTOR.PDF">2008 financial crisis</a> set the capital base level at 15% of common equity, far above the 4.5% required by <a href="https://www.bis.org/bcbs/basel3.htm">international standards</a>.</p>
<p>These moves aimed to secure the strength of local banks and the stability of the industry. </p>
<p>Our study demonstrates that an open and liberal environment that does not shield local firms from foreign competition can lead to positive outcomes. </p>
<h2>An example for all</h2>
<p>Government policies have long been recognised as a decisive factor for the competitive strength of national firms in a global world. Most times, however, the focus has been on governments prohibiting foreign entry and setting up the terms of foreign firms’ local activity. </p>
<p>Our study offers important lessons for policy makers: it draws attention to market structure as a determinant of indigenous capability development. Policy makers in other African countries and elsewhere should consider this as they design banking industry policies. </p>
<p>The balance between firms’ size (which provides the means for capability development) and competitive intensity (which offers incentives to do so) is the critical aspect of market structure that requires regulatory attention. Policy makers should shape this balance in a manner that maximises capability development.</p><img src="https://counter.theconversation.com/content/188566/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Nigeria’s banking sector is dominated by local players born out of state policy.Lilac Nachum, Professor of International Business, City University New York; Fulbright scholar to Africa, Visiting Professor at Strathmore Business School, City University of New YorkChris Ogbechie, Professor of Strategic Management, Pan Atlantic UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1890822022-08-23T15:52:47Z2022-08-23T15:52:47ZChina property crisis: why the housing market is collapsing – and the risks to the wider economy<figure><img src="https://images.theconversation.com/files/480377/original/file-20220822-38135-ap12k7.jpg?ixlib=rb-1.1.0&rect=5%2C11%2C3876%2C2572&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Homebuyers in China have been refusing to make mortgage payments.</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/house-on-chinese-currency-china-real-109057304">Svilen G / Shutterstock</a></span></figcaption></figure><p>China has been <a href="https://www.cnbc.com/2022/08/22/china-slashes-lending-rates-one-week-after-surprise-cuts-in-key-rates.html">trimming interest rates</a> recently – in contrast to <a href="https://www.ecb.europa.eu/press/pr/date/2022/html/ecb.mp220721%7E53e5bdd317.en.html#:%7E:text=Key%20ECB%20interest%20rates,-The%20Governing%20Council&text=Accordingly%2C%20the%20interest%20rate%20on,effect%20from%2027%20July%202022.">other</a> <a href="https://www.bankofengland.co.uk/monetary-policy-summary-and-minutes/2022/august-2022">major</a> <a href="https://www.cnbc.com/2022/07/27/fed-decision-july-2022-.html#:%7E:text=Federal%20Reserve-,Fed%20hikes%20interest%20rates%20by%200.75%20percentage%20point,consecutive%20time%20to%20fight%20inflation&text=The%20Federal%20Reserve%20on%20Wednesday,range%20of%202.25%25%2D2.5%25.">economies</a> – as it tries to stem the economic effects of its zero-COVID policy and address a growing property crisis. The country’s traditionally strong housing market has been affected by a funding crisis that has seen development paused and led to buyers refusing to pay their mortgages. </p>
<p>The recent spate of mortgage strikes by homebuyers across China has exposed the risk that has accumulated in the market as it has developed over the past two decades. The mortgage strikes started earlier this year among a group of people that bought homes in an Evergrande development in Jingdezhen city, Jiangxi province, but protests have since spread to buyers of other developments throughout China. </p>
<p>To date, <a href="https://www.economist.com/finance-and-economics/2022/07/21/fresh-woe-for-chinas-property-sector-mortgage-boycotts">more than 300</a> groups of homeowners are believed to be refusing to pay between <a href="https://www.wsj.com/amp/articles/china-seeks-to-quell-mortgage-revolt-among-frustrated-home-buyers-11658148117">US$150 billion (£127 billion) and US$370 billion</a> in homeloans, according to informal surveys published online.</p>
<p>These protesters all have one thing in common: they have been paying mortgages, often at a rate of 5%-6%, on homes they have never lived in. These properties were sold before they were built under what’s called the presale system, which is a <a href="https://www.economist.com/finance-and-economics/2022/07/21/fresh-woe-for-chinas-property-sector-mortgage-boycotts">common way</a> to buy property in China. </p>
<p>The trigger for the buyers’ strikes is a widespread belief among these protesters that the funds homeowners have paid in advance to the builders of these property developments have been misused. </p>
<p>Under the presale system, buyers deposit money in an account before the property is built. Chinese banks and local authorities are obligated to monitor developers’ use of these funds. Developers are not supposed to have access to all of the money until they have hit certain pre-agreed milestones during the building process. </p>
<p>But buyers have <a href="http://www.21jingji.com/article/20220714/herald/1b59066926b9309d0808cb2845018b7c.html">recently complained</a> that many banks –- whether or not local authorities are aware is unclear –- have been providing loans to developers <a href="http://www.ce.cn/cysc/newmain/yc/jsxw/202207/13/t20220713_37865048.shtml">before the required stage</a> of work has been reached.</p>
<p>Buyers have also complained that, although these funds should have been kept in designated escrow accounts that regulators can monitor, sometimes they are not, enabling developers to <a href="https://www.bjnews.com.cn/detail/1657723110168073.html">evade regulations</a>. Overall, these buyers believe loose regulation of funds has provided some developers with both the temptation and ability to keep investing in new projects, by borrowing more before current projects are completed.</p>
<p>Indeed, a <a href="http://finance.sina.com.cn/zl/china/2020-09-18/zl-iivhuipp5010716.shtml">commonly observed pattern</a> in China’s property development industry is for developers to purchase lands, pledge them to banks to get loans, start projects, begin the presale process with buyers and then use these funds to purchase lands for other projects. </p>
<p>In such situations, only a portion of a buyer’s funds might go towards the construction of their own property. As a result, a recent liquidity crisis in the sector has stalled many projects because the developers involved can’t afford to continue building. </p>
<h2>The rise and fall of the Chinese property market</h2>
<p>Today’s situation follows a <a href="https://doi.org/10.1002/ijfe.1962">boom in the Chinese property market</a>. The housing market had been enjoying a long rise since the early 2000s, which reached a peak in 2018 before a gradual cooling that ended in a sharp decline in sales in early 2022. </p>
<p>The chart below (figure 1) shows the change in China’s Real Estate Climate index, which measures aggregate business activity in land sales and real estate. New house sales have slumped substantially this year, with values dropping by 22% compared to the same time last year.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/480381/original/file-20220822-38135-6pp0x7.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/480381/original/file-20220822-38135-6pp0x7.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/480381/original/file-20220822-38135-6pp0x7.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=388&fit=crop&dpr=1 600w, https://images.theconversation.com/files/480381/original/file-20220822-38135-6pp0x7.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=388&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/480381/original/file-20220822-38135-6pp0x7.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=388&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/480381/original/file-20220822-38135-6pp0x7.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=487&fit=crop&dpr=1 754w, https://images.theconversation.com/files/480381/original/file-20220822-38135-6pp0x7.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=487&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/480381/original/file-20220822-38135-6pp0x7.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=487&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption"></span>
<span class="attribution"><a class="source" href="http://www.stats.gov.cn/english/">Author's chart based on figures from National Bureau of Statistics of China</a></span>
</figcaption>
</figure>
<p>The weak market has substantially reduced the funding available to developers, as figure 2 below shows. This is the root cause of the current situation in which developers have paused building, causing homeowners to strike by refusing to pay their mortgages.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/480382/original/file-20220822-64444-heba4m.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/480382/original/file-20220822-64444-heba4m.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/480382/original/file-20220822-64444-heba4m.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=390&fit=crop&dpr=1 600w, https://images.theconversation.com/files/480382/original/file-20220822-64444-heba4m.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=390&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/480382/original/file-20220822-64444-heba4m.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=390&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/480382/original/file-20220822-64444-heba4m.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=490&fit=crop&dpr=1 754w, https://images.theconversation.com/files/480382/original/file-20220822-64444-heba4m.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=490&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/480382/original/file-20220822-64444-heba4m.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=490&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption"></span>
<span class="attribution"><a class="source" href="http://www.stats.gov.cn/english/">Author's chart based on figures from National Bureau of Statistics of China</a></span>
</figcaption>
</figure>
<p>Tightening credit conditions also play an important role. Among other things, a key policy change is the government’s <a href="https://supchina.com/2022/06/13/chinas-three-red-lines-policy-to-safeguard-the-property-sector-isnt-working-yet/#:%7E:text=This%20policy%20is%20known%20as,must%20be%20less%20than%20100%25">“three red lines”</a> regulation, <a href="http://www.xinhuanet.com/fortune/2021-07/23/c_1127685565.htm">introduced</a> in August 2020. It categorises developers according to how much debt they hold, which then determines how much more they can borrow annually. </p>
<p>More than 60% of developers have hit at least one of the debt thresholds set by regulators in 2021, as shown in figure 3 below. Around 10% – crisis-hit <a href="https://www.bbc.com/news/business-62287685">Evergrande</a> included – have breached all three. When this happens, developers are not allowed to raise new borrowing for that year. The resulting credit crunch has pushed many developers into a stressed position, with some even defaulting.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/480383/original/file-20220822-70873-rms2jq.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/480383/original/file-20220822-70873-rms2jq.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/480383/original/file-20220822-70873-rms2jq.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=314&fit=crop&dpr=1 600w, https://images.theconversation.com/files/480383/original/file-20220822-70873-rms2jq.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=314&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/480383/original/file-20220822-70873-rms2jq.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=314&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/480383/original/file-20220822-70873-rms2jq.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=395&fit=crop&dpr=1 754w, https://images.theconversation.com/files/480383/original/file-20220822-70873-rms2jq.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=395&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/480383/original/file-20220822-70873-rms2jq.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=395&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Red: no new interest-bearing debt is allowed. Orange: new interest-bearing debt growth must not exceed 5%. Yellow: new interest-bearing debt growth must not exceed 10%. Green: new interest-bearing debt growth must not exceed 15%.</span>
<span class="attribution"><a class="source" href="http://www.zfsj.org/shownew.asp?id=3168">Author's chart based on reports from China Real Estate Data Academy.</a></span>
</figcaption>
</figure>
<h2>The wider effects</h2>
<p>The potential for a wave of developer bankruptcies is the biggest risk to China’s housing market at the moment and could result in a large number of unfinished properties. </p>
<p>This is not alarmism: Chinese developers generally borrow a lot of money to fund ongoing construction. While the industry average debt-to-asset ratio is around 65%, some of the leading companies are even more indebted (see figure 4 below).</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/480385/original/file-20220822-76838-icpinc.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/480385/original/file-20220822-76838-icpinc.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/480385/original/file-20220822-76838-icpinc.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=369&fit=crop&dpr=1 600w, https://images.theconversation.com/files/480385/original/file-20220822-76838-icpinc.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=369&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/480385/original/file-20220822-76838-icpinc.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=369&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/480385/original/file-20220822-76838-icpinc.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=464&fit=crop&dpr=1 754w, https://images.theconversation.com/files/480385/original/file-20220822-76838-icpinc.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=464&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/480385/original/file-20220822-76838-icpinc.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=464&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption"></span>
<span class="attribution"><a class="source" href="https://us.gtadata.com/">Author's chart based on figures from China Stock Market & Accounting Research (CSMAR) Database.</a></span>
</figcaption>
</figure>
<p>The industry has also seen a gradual fall in developers’ current ratios (their ability to repay short-term debts, see figure 5 below), which indicates lower overall liquidity and leaves the industry vulnerable to financial shocks.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/480387/original/file-20220822-64771-romcve.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/480387/original/file-20220822-64771-romcve.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=371&fit=crop&dpr=1 600w, https://images.theconversation.com/files/480387/original/file-20220822-64771-romcve.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=371&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/480387/original/file-20220822-64771-romcve.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=371&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/480387/original/file-20220822-64771-romcve.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=467&fit=crop&dpr=1 754w, https://images.theconversation.com/files/480387/original/file-20220822-64771-romcve.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=467&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/480387/original/file-20220822-64771-romcve.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=467&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">The current ratio is a liquidity measure, calculated by dividing a company’s total current assets by its total current liabilities. A falling ratio indicates less protection from short-term financial problems.</span>
<span class="attribution"><a class="source" href="https://us.gtadata.com/">Author's chart based on figures from China Stock Market & Accounting Research (CSMAR) Database.</a></span>
</figcaption>
</figure>
<p>The risk from the real estate sector could also spill into the wider economy via banks and local governments, which are the two biggest entities supporting China’s growth. </p>
<p>Banks lend both to buyers and developers and so could face a surge in bad debts if the housing market collapsed. The good news is that these loans are a relatively small proportion of the banks’ total lending. According to my own calculations based on government figures, mortgage loans comprised just under <a href="http://www.gov.cn/shuju/2022-05/07/content_5689014.htm">20%</a> of banks’ total lending by the end of 2021, while, as declared by the major banks, only about <a href="https://finance.sina.com.cn/money/bank/bank_hydt/2022-07-14/doc-imizmscv1545838.shtml">0.01%</a> of those loans are affected by the current strikes. </p>
<p>On the other hand, real estate developments comprise only <a href="http://www.gov.cn/shuju/2022-05/07/content_5689014.htm">6.2%</a> of Chinese banks’ total loan books. Even so, major defaults could lead banks to tighten lending conditions, causing market liquidity to fall even further.</p>
<p>Local governments are <a href="https://doi.org/10.1111/manc.12397">a different story</a>. They often rely heavily on selling land for income and so failing to secure a stable flow of proceeds from land sales could affect their investment and urbanisation projects. This would be a further drag on China’s recovery from the pandemic at a time when it is <a href="https://www.scmp.com/economy/china-economy/article/3189511/chinas-zero-covid-strategy-tumbling-tax-revenue-put-local">already struggling</a> due to the government’s ongoing zero-COVID policy.</p>
<p>When it comes to global implications, it’s worth remembering China’s “closed” capital account policy restricts movement of money in and out of the country. This largely isolates China’s financial market from the international market. </p>
<p>So, unlike during the 2007-8 global financial crisis, these defaults would be unlikely to directly affect the world economy, although countries that trade with China may see a modest fall in demand from their Chinese consumers.</p><img src="https://counter.theconversation.com/content/189082/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Zhirong Ou does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>China’s mortgage strikes are affecting its economy but won’t cause global contagion.Zhirong Ou, Senior Lecturer in Economics, Cardiff Business School, Cardiff UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1881122022-08-16T14:41:41Z2022-08-16T14:41:41ZSouth Africa’s proposed fracking regulations should do more to protect groundwater<figure><img src="https://images.theconversation.com/files/479402/original/file-20220816-9763-z7u5be.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">The Karoo landscape, a water-scarce area near potential shale gas sites.
</span> <span class="attribution"><span class="source">Photo courtesy Surina Esterhuyse</span></span></figcaption></figure><p>South Africa is extremely water scarce, and water supply will become more challenging in the future. The <a href="https://www.africaportal.org/publications/delicate-balance-water-scarcity-south-africa/">population and economy are growing</a>, increasing demand. Rainfall is variable and more extreme and prolonged droughts are expected because of <a href="https://www.sciencedirect.com/science/article/pii/B9780128183397000059">climate change</a>. More than 80% of South Africa’s available surface water resources are already <a href="https://www.dws.gov.za/Groundwater/Documents/NGS_Draft-Final_04012017.pdf">allocated for use</a>. Groundwater resources will therefore become more important in South Africa.</p>
<p>There is, however, a potential threat to those groundwater resources. South Africa depends heavily on <a href="https://cdn.sei.org/wp-content/uploads/2019/02/planning-a-just-transition-in-south-africa.pdf">coal for energy</a> but its coal resources are being <a href="https://www.statista.com/statistics/265445/proved-coal-reserves-in-south-africa/">depleted</a>. The country may turn to unconventional oil and gas resources to augment energy supply. And methods to extract oil and gas can <a href="https://www.sciencedirect.com/science/article/pii/S0301479716307289">contaminate and deplete groundwater</a>. </p>
<p>Hydraulic fracturing, also known as fracking, is used to extract trapped oil and gas from underground geological formations. A mixture of water, chemicals and sand is injected into these formations under high pressure. This opens up micro-fractures in the rock to release the trapped oil and gas, but it can also disturb the deep geological formations and aquifers. Groundwater can be contaminated if deep saline groundwater migrates to potable groundwater resources via hydraulic connections.</p>
<p>In addition to migration of saline groundwater, the chemicals used during fracking can contaminate groundwater. Wastewater may also get into groundwater via spills and leaks. And the hydraulic fracturing process requires large volumes of water. </p>
<p>Regulations that are properly developed and enforced are therefore vital to protect groundwater resources in South Africa when <a href="https://www.nature.com/articles/s41545-021-00145-y">extracting unconventional oil and gas</a>.</p>
<h2>Regulations to protect groundwater</h2>
<p>On 7 May 2021, the Department of Water and Sanitation published <a href="https://www.gov.za/sites/default/files/gcis_document/202105/44545gon406.pdf">regulations on the use of water in oil and gas extraction</a>. And on 11 July 2022, the Department of Forestry, Fisheries and the Environment published <a href="https://cer.org.za/wp-content/uploads/2022/07/Proposed-Regulations-pertaining-to-the-Exploration-and-Production-of-Onshore-Oil-and-Gas-Requiring-Hydraulic-Fracturing.pdf">proposed regulations for the exploration and production of onshore oil and gas</a> for public comment. These regulations aim to protect the environment during oil and gas development. </p>
<p>The environment department also published a document for comment specifying what <a href="https://cer.org.za/wp-content/uploads/2022/07/NEMA-Intention-to-prescribe-minimum-conditions-for-onshore-exploration-of-oil-and-gas-intending-to-frack-8-July-2022.pdf">information must be supplied</a> when applying for a licence to produce oil and gas. The two departments’ regulations should be read together since both protect groundwater resources. </p>
<p>Based on a <a href="https://www.nature.com/articles/s41545-021-00145-y">survey</a> of South African groundwater experts that my colleagues and I conducted, I’ve reviewed the proposed regulations and identified aspects that need attention.</p>
<p>A strength of the regulations is that they list penalties for contraventions, which will help with enforcement. However, there are gaps in the regulations. Some extraction methods and related processes are not regulated. </p>
<h2>Gaps in fracking regulations</h2>
<p>The environment department’s regulations only address unconventional oil and gas development that requires hydraulic fracturing. Other techniques are also used to free those resources. For example, depressurisation can be used to liberate coalbed methane. All the extraction methods should be included in the regulations.</p>
<p>The regulations say that water sources and fracking wells at the extraction site should be at least 2km apart. This is not far enough. Based on what the survey of experts found, fracking wells should be at least 10km away from municipal wellfields, aquifers and water supply boreholes. They should be at least 5km away from seismically active springs. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/479226/original/file-20220815-16003-8q5rsz.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Karoo landscape with windpumps" src="https://images.theconversation.com/files/479226/original/file-20220815-16003-8q5rsz.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/479226/original/file-20220815-16003-8q5rsz.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=337&fit=crop&dpr=1 600w, https://images.theconversation.com/files/479226/original/file-20220815-16003-8q5rsz.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=337&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/479226/original/file-20220815-16003-8q5rsz.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=337&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/479226/original/file-20220815-16003-8q5rsz.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=424&fit=crop&dpr=1 754w, https://images.theconversation.com/files/479226/original/file-20220815-16003-8q5rsz.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=424&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/479226/original/file-20220815-16003-8q5rsz.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=424&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Putsonderwater, meaning ‘well without water’ in the extremely water-scarce area between Marydale and Groblershoop.</span>
<span class="attribution"><span class="source">Photo courtesy Danita Hohne</span></span>
</figcaption>
</figure>
<p>These minimum distances, known as setbacks, are also needed where there are <a href="https://www.nature.com/articles/s41545-021-00145-y">other geological and groundwater features</a> that increase the risk of groundwater contamination. </p>
<p>The regulations do not address specific measures to contain fractures to the production zone, or to prevent fluids from migrating beyond this area. Operators should have to monitor these risks and report to the regulator. If monitoring shows that fluid is moving outside the production zone, operations must stop until the situation is corrected. </p>
<p>The proposed regulations don’t address fracturing fluid management. The water department regulations require that a list of chemicals planned for use in the fracturing fluids be submitted to the department for approval, but this alone is insufficient to protect groundwater. A risk management plan for each well that is to be fractured must be submitted to the regulator. It must identify the chemical ingredients and the volume and concentration of the fluid additives. The plan must assess the potential environmental and health risks of the fracturing fluids and additives – and show how operations will minimise risk. </p>
<p>The regulations require a waste management plan. It should be more comprehensive, by considering both solid waste and wastewater. The plan should include transport, storage and management of wastewater and other substances used, and procedures for preventing and addressing spills. It should monitor and report on the actual volume of recovered fluids, the chemical composition of these fluids, and any radioactive fluids that were identified. </p>
<p>The information disclosure regulations are inadequate. They require that various information sources be uploaded onto the website of the holder. They do not require public access to this information. It would be better to load the data onto a centralised website run by an independent institution, where it is available and in a usable form.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/how-fracking-plans-could-affect-shared-water-resources-in-southern-africa-147684">How fracking plans could affect shared water resources in southern Africa</a>
</strong>
</em>
</p>
<hr>
<p>The well decommissioning regulations do not specify how long decommissioned wells should be monitored. The risk of well leakage <a href="https://gisera.csiro.au/wp-content/uploads/2022/05/Final-Report-GISERA-W20-Monitoring-of-Decommissioned-Wells.pdf">over the long term</a> means that a monitoring timeframe of <a href="https://seasgd.csir.co.za/wp-content/uploads/2016/11/Ch-5_Water_13Nov2016_LR.pdf">50 years or more may be necessary</a>. The regulations should consider who will be responsible and carry the associated costs. </p>
<p>Ancillary activities are not regulated. For example, there’s no mention of pipeline management or monitoring. Pipelines could leak and contaminate groundwater resources, especially if they are buried. </p>
<p>The minimum information requirements document also needs revision. Information about where wells will be located should be publicly available. For the groundwater baseline (the groundwater quality and quantity before fracking), both shallow and deep aquifers should be assessed, and possible fluid migration pathways should be identified.</p>
<p>If these aspects are addressed and the regulations properly enforced, the regulations will do a better job of protecting groundwater resources.</p><img src="https://counter.theconversation.com/content/188112/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Surina Esterhuyse does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>New regulations for protecting water resources during oil exploration are inadequate and should be reviewed.Surina Esterhuyse, Senior Lecturer Centre for Environmental Management, University of the Free StateLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1875802022-08-02T12:57:37Z2022-08-02T12:57:37ZWhat are automotive ‘over-the-air’ updates? A marketing professor explains<figure><img src="https://images.theconversation.com/files/476587/original/file-20220728-8625-ig2sgx.jpg?ixlib=rb-1.1.0&rect=0%2C0%2C3000%2C1998&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Most EV recalls don't require a mechanic.</span> <span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/news-photo/the-inside-of-a-tesla-vehicle-is-viewed-as-it-sits-parked-news-photo/545144650?adppopup=true">Spencer Platt/Getty Images</a></span></figcaption></figure><p>Whenever <a href="https://www.sundevilauto.com/recall-recall-recall/">automakers discover that a vehicle has a defect</a> or does not comply with U.S. laws, they must notify the National Highway Traffic Safety Administration and mail a notice to each customer who owns or leases the affected vehicles. Automakers must also recall those cars, trucks or SUVs – which means they have to fix the defect across the entire fleet.</p>
<p>People with recalled vehicles usually have to schedule a visit to an authorized dealership, where a mechanic repairs the car.</p>
<p>But vehicles are increasingly high-tech contraptions. Although most recalls still require the replacement or repair of auto parts, such as air bags or brakes, a growing number of issues are resolved without any help from a mechanic.</p>
<p>All they require is an “<a href="https://www.pathpartnertech.com/understanding-automotive-ota-over-the-air-update/">over-the-air update</a>.” That’s the technical term for what happens when you <a href="https://www.devicechronicle.com/digital-health/">update any software program used by a device</a>, whether’s it’s a smartphone or a sedan.</p>
<p>Over-the-air updates are <a href="https://www.caranddriver.com/features/a15091460/the-auto-industrys-future-is-software-not-machinery-column/">especially common</a> for vehicles that run fully or partially on <a href="https://electrek.co/2022/06/07/over-the-air-updates-how-does-each-ev-automaker-compare/">electricity instead of gasoline or another fuel</a>. These digital recalls require little or no effort. For example, <a href="https://static.nhtsa.gov/odi/rcl/2022/RCONL-22V037-8566.pdf">Tesla regularly fixes</a> its cars by updating its software. Its drivers often don’t have to do a thing. In other cases, a <a href="https://static.nhtsa.gov/odi/rcl/2022/RCONL-22V037-8566.pdf">Tesla owner simply has to tap</a> a few buttons on the car’s touchscreen.</p>
<p>According to the law, it doesn’t matter if safety-related fixes demand a software upgrade or a trip to the dealership. Either way, notifying the National Highway Traffic Safety Administration and all affected drivers is mandatory.</p>
<h2>Why over-the-air updates matter</h2>
<p><a href="https://www.energy.gov/energysaver/articles/new-plug-electric-vehicle-sales-united-states-nearly-doubled-2020-2021">Electric vehicle sales nearly doubled</a> from about 300,000 in 2020 to more than 600,000 in 2021. EV sales <a href="https://insideclimatenews.org/news/28042022/inside-clean-energy-electric-vehicles-elon-musk-tesla-ford/">rose another 76% in first quarter of 2022</a> even as sales of all new vehicles dropped by 15.7%.</p>
<p>U.S. EV sales could <a href="https://www.fortunebusinessinsights.com/u-s-electric-vehicle-market-106396">be on the verge of far more growth</a>, which would make over-the-air updates increasingly common. But <a href="https://www.cnn.com/2021/09/18/cars/chevrolet-bolt-buybacks/index.html">drivers</a> and <a href="https://www.cnbc.com/2021/08/19/fires-probes-recalls-automakers-spend-billions-in-shift-to-evs.html">investors</a> are raising an array of safety concerns that could put the brakes on the EV market’s expansion.</p>
<p>Serious problems have included <a href="https://www.cnbc.com/2021/08/19/fires-probes-recalls-automakers-spend-billions-in-shift-to-evs.html">electric vehicles failing to start</a>, <a href="https://www.cnbc.com/2021/08/19/fires-probes-recalls-automakers-spend-billions-in-shift-to-evs.html">losing power</a> and <a href="https://www.cnn.com/2021/09/18/cars/chevrolet-bolt-buybacks/index.html">catching fire because of battery defects</a>.</p>
<h2>Musk objects to the word ‘recall’</h2>
<p>Tesla has <a href="https://www.cnn.com/2022/03/23/business/over-the-air-recalls/index.html">pushed harder than its competitors</a> to rely primarily on over-the-air updates to fix problems with its electric vehicles. Its CEO, <a href="https://www.motorbiscuit.com/tesla-recall-elon-musk-doesnt-like-the-r-word/">Elon Musk, has for years publicly questioned</a> the wisdom of calling over-the-air updates “recalls.” </p>
<figure class="align-center ">
<img alt="A crumpled Tesla after a car crash" src="https://images.theconversation.com/files/476588/original/file-20220728-8625-gjoqkm.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/476588/original/file-20220728-8625-gjoqkm.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=346&fit=crop&dpr=1 600w, https://images.theconversation.com/files/476588/original/file-20220728-8625-gjoqkm.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=346&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/476588/original/file-20220728-8625-gjoqkm.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=346&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/476588/original/file-20220728-8625-gjoqkm.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=435&fit=crop&dpr=1 754w, https://images.theconversation.com/files/476588/original/file-20220728-8625-gjoqkm.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=435&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/476588/original/file-20220728-8625-gjoqkm.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=435&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">The government is investigating whether Tesla’s software is contributing to collisions.</span>
<span class="attribution"><a class="source" href="https://newsroom.ap.org/detail/Tesla-FatalCrash/26dda5bf43f14225b51e470416d7ea6a/photo?Query=self-driving%20car%20accident&mediaType=photo&sortBy=&dateRange=Anytime&totalCount=39&currentItemNo=14">AP Photos/Florida Highway Patrol</a></span>
</figcaption>
</figure>
<p>In some cases, Tesla has conducted over-the-air updates to resolve safety defects without notifying the <a href="https://www.cnbc.com/2021/10/13/nhtsa-asks-tesla-why-it-didnt-initiate-a-recall-after-safety-related-software-update.html">National Highway Traffic Safety Administration or Tesla owners</a> that a recall was underway.</p>
<p>Because that’s <a href="https://www.nytimes.com/2021/10/13/business/tesla-autopilot-recall-safety.html">against the law</a>, the agency has ordered Tesla to provide those details.</p>
<p>Tesla has used over-the-air updates to resolve, for example, issues with its <a href="https://static.nhtsa.gov/odi/rcl/2022/RCLRPT-22V050-5142.PDF">windshield wipers</a> and <a href="https://static.nhtsa.gov/odi/rcl/2022/RCLRPT-22V045-3599.PDF">seat belt chimes</a>. It has also used <a href="https://static.nhtsa.gov/odi/rcl/2022/RCONL-22V037-8566.pdf">over-the-air updates</a> to address <a href="https://www.autoblog.com/2021/09/14/tesla-autopilot-nhtsa-probe-other-automakers/">problems with</a> its partially <a href="https://www.tesla.com/support/autopilot">automated driving systems</a>. Those features are the subject of a government investigation because of a spate of <a href="https://www.cbsnews.com/news/tesla-cars-crashes-emergency-vehicles/">crashes with parked emergency vehicles</a> in which first responders were using warning signs, such as flashing lights or flares.</p><img src="https://counter.theconversation.com/content/187580/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Vivek Astvansh does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Whether safety-related fixes demand a software upgrade or a trip to the dealership, carmakers must notify the National Highway Traffic Safety Administration and all affected driversVivek Astvansh, Professor of Marketing and Data Science, Indiana UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1858672022-06-29T05:42:35Z2022-06-29T05:42:35ZHow can we reverse the vaping crisis among young Australians? Enforce the rules<figure><img src="https://images.theconversation.com/files/471498/original/file-20220629-14-emka1y.jpg?ixlib=rb-1.1.0&rect=1%2C4%2C997%2C661&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">E-cigarettes and vape products are illegally imported into Australia. Some claim not to contain nicotine, but do.</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/suffolk-uk-may-18-2019-new-1613347117">Simon Collins/Shutterstock</a></span></figcaption></figure><p>ABC TV’s Four Corners this week <a href="https://www.abc.net.au/4corners/vape-haze:-the-new-addiction-of-vaping/13948226">reported</a> how unlawful sale of e-cigarettes in Australia is out of control. </p>
<p>The program highlighted the effects on young people, in particular, including how easy it is for them to buy the products.</p>
<p><div data-react-class="Tweet" data-react-props="{"tweetId":"1539762788876181505"}"></div></p>
<p>How did this slow-moving public health train wreck unfold in broad daylight, almost a <a href="https://www.cancer.org.au/blog/extreme-caution-needed-on-electronic-cigarettes">decade after</a> the Cancer Council warned it was coming?</p>
<p>The answer is poor or non-existent enforcement of good laws.</p>
<h2>A growing problem</h2>
<p>The use of all harmful substances in young Australians is <a href="https://www.aihw.gov.au/reports/children-youth/alcohol-tobacco-and-other-drugs">declining</a> – except for e-cigarettes and <a href="https://www.aihw.gov.au/reports/illicit-use-of-drugs/national-drug-strategy-household-survey-2019/data">smoking in men</a> aged 18-24.</p>
<p>Lifetime use of e-cigarettes <a href="https://www.aihw.gov.au/reports/illicit-use-of-drugs/national-drug-strategy-household-survey-2019/data">increased</a> by 46% between 2016 and 2019 in non-smokers aged 18-24 – a huge spike in the use of a harmful substance in just three years.</p>
<p>Last week, an updated statement from the National Health and Medical Research Council <a href="https://www.nhmrc.gov.au/health-advice/all-topics/electronic-cigarettes/ceo-statement">reflected</a> increasing concerns from public health officials about the growing uptake of e-cigarettes, particularly by young people.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/471496/original/file-20220629-16-zlvpua.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="E-cigarettes: get the facts, public health campaign" src="https://images.theconversation.com/files/471496/original/file-20220629-16-zlvpua.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/471496/original/file-20220629-16-zlvpua.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=534&fit=crop&dpr=1 600w, https://images.theconversation.com/files/471496/original/file-20220629-16-zlvpua.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=534&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/471496/original/file-20220629-16-zlvpua.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=534&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/471496/original/file-20220629-16-zlvpua.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=672&fit=crop&dpr=1 754w, https://images.theconversation.com/files/471496/original/file-20220629-16-zlvpua.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=672&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/471496/original/file-20220629-16-zlvpua.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=672&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Public health officials are concerned about the growing use of e-cigarettes.</span>
<span class="attribution"><a class="source" href="https://www.nhmrc.gov.au/health-advice/all-topics/electronic-cigarettes/ceo-statement">NHMRC</a></span>
</figcaption>
</figure>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/a-damning-review-of-e-cigarettes-shows-vaping-leads-to-smoking-the-opposite-of-what-supporters-claim-180675">A damning review of e-cigarettes shows vaping leads to smoking, the opposite of what supporters claim</a>
</strong>
</em>
</p>
<hr>
<h2>But aren’t these illegal?</h2>
<p>Anyone using a nicotine e-cigarette without a valid doctor’s prescription has obtained the product unlawfully. Its importation was unlawful, as was its storage, sale and promotion.</p>
<p>Yet, as the Four Corners program showed, this is happening on an industrial scale. Merchants with a profit motive are promoting <a href="https://theconversation.com/a-damning-review-of-e-cigarettes-shows-vaping-leads-to-smoking-the-opposite-of-what-supporters-claim-180675">addictive products</a>, with no regard for the health of young people. </p>
<p>Retailers and online entrepreneurs are clearly not complying with current laws. And these laws are not being enforced.</p>
<h2>We need to target importation</h2>
<p>E-cigarettes are <a href="https://www.tobaccoinaustralia.org.au/chapter-18-harm-reduction/indepth-18b-e-cigarettes/18b-1-the-ecigarettemarket">not manufactured</a> in Australia. If their destination is not a pharmacy or someone with a valid prescription, their importation is <a href="https://www.tga.gov.au/nicotine-vaping-products-compliance-and-enforcement">unlawful</a>.</p>
<p>But it is clear, from the number of illegal e-cigarettes available in Australia, the federal government is not enforcing its own importation rules.</p>
<p>Attempts to amend <a href="http://www5.austlii.edu.au/au/legis/cth/num_reg_es/cianr2020202000791723.html">regulations</a> to further restrict imports were proposed in 2020. This would have enabled the Australian Border Force to intercept illegal e-cigarette imports.</p>
<p>However, the government assured the community that requiring all
non-tobacco nicotine products to only be available on prescription (<a href="https://www.tga.gov.au/nicotine-vaping-product-access">schedule 4 of the Poisons Standard</a>) would achieve the same result. It <a href="https://www.tga.gov.au/nicotine-vaping-product-access">said</a> this would protect young people from e-cigarettes.</p>
<p>It’s almost nine months since this came into effect in October 2021. Yet young people, in increasing numbers, are accessing e-cigarettes.</p>
<p>The scheduling standard and the rules underpinning it are clearly being ignored. The federal government must revisit proposals to allow interception of illegal e-cigarettes at the border or find another mechanism to block them.</p>
<h2>We need to target their sale</h2>
<p>Retailers and wholesalers are also breaking rules set out in <a href="https://www.tga.gov.au/media-release/tga-confirms-nicotine-e-cigarette-access-prescription-only">official advice</a> from the Therapeutic Goods Administration and corresponding information on state government <a href="https://www.health.nsw.gov.au/tobacco/Pages/e-cigarettes.aspx">websites</a>. </p>
<p>New South Wales Chief Health Officer Kerry Chant <a href="https://www.health.nsw.gov.au/news/Pages/20220516_00.aspx">has warned</a> that nicotine e-cigarette traders, other than pharmacies, could face prosecution, heavy fines and even jail.</p>
<p>Yet tobacconists, convenience stores and vape shops are still breaking the rules.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/471510/original/file-20220629-22-quxfkz.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Rows of e-cigarettes for sale" src="https://images.theconversation.com/files/471510/original/file-20220629-22-quxfkz.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/471510/original/file-20220629-22-quxfkz.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=394&fit=crop&dpr=1 600w, https://images.theconversation.com/files/471510/original/file-20220629-22-quxfkz.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=394&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/471510/original/file-20220629-22-quxfkz.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=394&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/471510/original/file-20220629-22-quxfkz.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=495&fit=crop&dpr=1 754w, https://images.theconversation.com/files/471510/original/file-20220629-22-quxfkz.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=495&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/471510/original/file-20220629-22-quxfkz.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=495&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">E-cigarettes and vaping products can be sold in plain view.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/kievukraine27-october2018-buy-new-vape-juice-1217375503">hurricane hank/Shutterstock</a></span>
</figcaption>
</figure>
<p>State and territory governments must enforce their laws, especially those being broken in plain view. Authorities can impose substantial fines for offenders, which would not only deter unlawful trade, it would fund additional enforcement.</p>
<p>There are also laws for the bulk storage and transport of schedule 4 poisons, such as nicotine. Four Corners showed how readily a film crew could expose breaches of these laws.</p>
<h2>If young people can find them, so can the authorities</h2>
<p>Young people told Four Corners they can access products without a prescription from online entrepreneurs importing, storing and selling nicotine e-cigarettes. </p>
<p>Seizing illegal imports will eventually dry up their supply, but there will be stockpiles. </p>
<p>If school children can access these suppliers and their products with a quick search on their smartphones, authorities can also find them and put them out of business.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/vaping-is-glamourised-on-social-media-putting-youth-in-harms-way-159436">Vaping is glamourised on social media, putting youth in harm's way</a>
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<h2>What needs to happen next?</h2>
<p>E-cigarette use in young Australians is a crisis, but is fixable. The federal government must stop illegal imports, the states and territories must end the unlawful retail, wholesale and interstate trade.</p>
<p>The <a href="https://theconversation.com/a-damning-review-of-e-cigarettes-shows-vaping-leads-to-smoking-the-opposite-of-what-supporters-claim-180675">harms of e-cigarettes</a> are severe and far outweigh any modest benefits; there are laws to protect young people from them. </p>
<p>If the crisis worsens, more people will ask, how did this happen? The answer will be simple: governments made good laws, but they did not enforce them.</p>
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<em>
<strong>
Read more:
<a href="https://theconversation.com/its-safest-to-avoid-e-cigarettes-altogether-unless-vaping-is-helping-you-quit-smoking-123274">It's safest to avoid e-cigarettes altogether – unless vaping is helping you quit smoking</a>
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<img src="https://counter.theconversation.com/content/185867/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Paul Grogan is employed by the Daffodil Centre, a joint cancer research venture between Cancer Council NSW and the University of Sydney. He is an investigator on a current research project on e-cigarette use in young people jointly funded by the NSW Government and the Minderoo Foundation, with in-kind support from Cancer Council NSW.</span></em></p>If the crisis worsens, more people will ask, how did this happen? The answer will be simple: governments made good laws, but they did not enforce them.Paul Grogan, Adjunct Senior Lecturer, The Daffodil Centre, University of SydneyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1855102022-06-27T02:32:16Z2022-06-27T02:32:16ZFacial recognition is on the rise – but the law is lagging a long way behind<figure><img src="https://images.theconversation.com/files/471008/original/file-20220627-14-q7vf1z.jpg?ixlib=rb-1.1.0&rect=0%2C0%2C4481%2C3216&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/iot-machine-learning-human-object-recognition-794528230">Shutterstock</a></span></figcaption></figure><p>Private companies and public authorities are quietly using facial recognition systems around Australia. </p>
<p>Despite the growing use of this controversial technology, there is little in the way of specific regulations and guidelines to govern its use.</p>
<h2>Spying on shoppers</h2>
<p>We were reminded of this fact recently when consumer advocates at CHOICE <a href="https://www.choice.com.au/consumers-and-data/data-collection-and-use/how-your-data-is-used/articles/kmart-bunnings-and-the-good-guys-using-facial-recognition-technology-in-store">revealed</a> that major retailers in Australia are using the technology to identify people claimed to be thieves and troublemakers. </p>
<p>There is no dispute about the goal of reducing harm and theft. But there is also little transparency about how this technology is being used. </p>
<p>CHOICE found that most people have no idea their faces are being scanned and matched to stored images in a database. Nor do they know how these databases are created, how accurate they are, and how secure the data they collect is. </p>
<p>As CHOICE discovered, the notification to customers is inadequate. It comes in the form of small, hard-to-notice signs in some cases. In others, the use of the technology is announced in online notices rarely read by customers. </p>
<p>The companies clearly don’t want to draw attention to their use of the technology or to account for how it is being deployed.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/bunnings-kmart-and-the-good-guys-say-they-use-facial-recognition-for-loss-prevention-an-expert-explains-what-it-might-mean-for-you-185126">Bunnings, Kmart and The Good Guys say they use facial recognition for 'loss prevention'. An expert explains what it might mean for you</a>
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<h2>Police are eager</h2>
<p>Something similar is happening with the use of the technology by Australian police. Police in New South Wales, for example, have embarked on a “low-volume” <a href="https://www.theguardian.com/australia-news/2021/jul/01/calls-to-stop-nsw-police-trial-of-national-facial-recognition-system-over-lack-of-legal-safeguards">trial</a> of a nationwide face-recognition database. This trial took place despite the fact that the enabling legislation for the national database has not yet been passed.</p>
<p>In South Australia, controversy over Adelaide’s plans to upgrade its CCTV system with face-recognition capability led the city council to <a href="https://www.abc.net.au/news/2022-06-22/adelaide-city-council-votes-no-to-facial-recognition-in-cctv/101172924?utm_source=pocket_mylist">vote</a> not to purchase the necessary software. The council has also asked South Australia Police not to use face-recognition technology until legislation is in place to govern its use. </p>
<p><div data-react-class="Tweet" data-react-props="{"tweetId":"1540320043052826624"}"></div></p>
<p>However, SA Police have <a href="https://www.abc.net.au/news/2022-06-22/adelaide-city-council-votes-no-to-facial-recognition-in-cctv/101172924?utm_source=pocket_mylist">indicated</a> an interest in using the technology. </p>
<p>In a public <a href="https://www.itnews.com.au/news/sa-police-ignore-adelaide-council-plea-for-facial-recognition-ban-on-cctv-581559">statement</a>, the police described the technology as a potentially useful tool for criminal investigations. The statement also noted: </p>
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<p>There is no legislative restriction on the use of facial recognition technology in South Australia for investigations. </p>
</blockquote>
<h2>A controversial tool</h2>
<p>Adelaide City Council’s call for regulation is a necessary response to the expanding use of automated facial recognition. </p>
<p>This is a powerful technology that promises to fundamentally change our experience of privacy and anonymity. There is already a large gap between the amount of personal information collected about us every day and our own knowledge of how this information is being used, and facial recognition will only make the gap bigger.</p>
<p>Recent events suggest a reluctance on the part of retail outlets and public authorities alike to publicise their use of the technology. </p>
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<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/large-scale-facial-recognition-is-incompatible-with-a-free-society-126282">Large-scale facial recognition is incompatible with a free society</a>
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<p>Although it is seen as a potentially useful tool, it can be a controversial one. A world in which remote cameras can identify and track people as they move through public space seems alarmingly Orwellian. </p>
<p>The technology has also been criticised for being invasive and, in some cases, <a href="https://www.marketplace.org/shows/marketplace-tech/bias-in-facial-recognition-isnt-hard-to-discover-but-its-hard-to-get-rid-of/">biased</a> and inaccurate. In the US, for example, people have already been <a href="https://www.wired.com/story/wrongful-arrests-ai-derailed-3-mens-lives/">wrongly arrested</a> based on matches made by face-recognition systems.</p>
<h2>Public pushback</h2>
<p>There has also been widespread public opposition to the use of the technology in some cities and states in the US, which have gone so far as to impose <a href="https://www.wired.com/story/face-recognition-banned-but-everywhere/">bans</a> on its use.</p>
<p>Surveys show the Australian public have <a href="https://securitybrief.com.au/story/australians-uneasy-about-facial-recognition-tech-report">concerns</a> about the invasiveness of the technology, but that there is also support for its potential use to increase public safety and security.</p>
<p>Facial-recognition technology isn’t going away. It’s likely to become less expensive and more accurate and powerful in the near future. Instead of implementing it piecemeal, under the radar, we need to directly confront both the potential harms and benefits of the technology, and to provide clear rules for its use.</p>
<h2>What would regulations look like?</h2>
<p>Last year, then human rights commissioner Ed Santow called for <a href="https://www.itnews.com.au/news/human-rights-commission-calls-for-temporary-ban-on-high-risk-govt-facial-recognition-565173">a partial ban</a> on the use of facial-recognition technology. He is now developing model legislation for how it might be regulated in Australia. </p>
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<p>Any regulation of the technology will need to consider both the potential benefits of its use and the risks to privacy rights and civic life. </p>
<p>It will also need to consider enforceable standards for its proper use. These could include the right to correct inaccurate information, the need to provide human confirmation for automated forms of identification, and the setting of minimum standards of accuracy. </p>
<p>They could also entail improving public consultation and consent around the use of the technology, and a requirement for the performance of systems to be accountable to an independent authority and to those researching the technology.</p>
<p>As the reach of facial recognition expands, we need more public and parliamentary debate to develop appropriate regulations for governing its use.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/darwins-smart-city-project-is-about-surveillance-and-control-127118">Darwin's 'smart city' project is about surveillance and control</a>
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<p><em>If you’re in Adelaide, there will be a public forum on regulating facial recognition technology at the Town Hall <a href="https://www.eventbrite.com.au/e/regulating-facial-recognition-technology-in-adelaideand-beyond-tickets-360120358687">tonight</a> (Monday, June 27). Ed Santow and his colleague Lauren Perry will present their model legislation, and they will be joined in discussion by South Australian parliamentarian Tammy Franks and Law Society of South Australia president Justin Stewart-Rattray.</em></p><img src="https://counter.theconversation.com/content/185510/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Mark Andrejevic receives funding from the Australian Research Council.</span></em></p><p class="fine-print"><em><span>Gavin JD Smith receives funding from the Australian Research Council. </span></em></p>Private companies and public authorities are beginning to implement facial recognition technology, even without rules to govern what they can do.Mark Andrejevic, Professor, School of Media, Film, and Journalism, Monash University, Monash UniversityGavin JD Smith, Associate Professor in Sociology, Australian National UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1850152022-06-21T11:50:00Z2022-06-21T11:50:00ZWhat are PFAS, the ‘forever chemicals’ showing up in drinking water? An environmental health scientist explains<figure><img src="https://images.theconversation.com/files/469402/original/file-20220617-15-3xnpo.jpg?ixlib=rb-1.1.0&rect=8%2C16%2C5599%2C3715&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">PFAS, often used in water-resistant gear, also find their way into drinking water and human bodies.</span> <span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/photo/scientist-ecologist-taking-a-water-sample-in-the-royalty-free-image/1125152554">CasarsaGuru via Getty Images</a></span></figcaption></figure><p>You’ve probably been hearing the term PFAS in the news lately as states and the U.S. government consider <a href="https://www.whitehouse.gov/briefing-room/statements-releases/2022/06/15/fact-sheet-biden-harris-administration-combatting-pfas-pollution-to-safeguard-clean-drinking-water-for-all-americans/">rules and guidelines</a> for managing these “forever chemicals.” </p>
<p>Even if the term is new to you, chances are good that you’re familiar with what PFAS do. That’s because they’re found in everything from nonstick cookware to carpets to ski wax.</p>
<p>PFAS stands for per- and polyfluoroalkyl substances, which are a large group of human-made chemicals – currently estimated to be around 9,000 individual chemical compounds – that are <a href="https://doi.org/10.1039/D0EM00291G">used widely</a> in consumer products and industry. They can make products resistant to water, grease and stains and protect against fire. </p>
<p>Waterproof outdoor apparel and cosmetics, stain-resistant upholstery and carpets, food packaging that is designed to prevent liquid or grease from leaking through, and certain firefighting equipment often contain PFAS. In fact, <a href="https://toxicfreefuture.org/pfas-in-stain-water-resistant-products-study/">one recent study</a> found that most products labeled stain- or water-resistant contained PFAS, and <a href="https://doi.org/10.1021/acs.est.1c05175">another study</a> found that this is even true among products labeled as “nontoxic” or “green.” PFAS are also found in unexpected places like high-performance ski and snowboard waxes, floor waxes and medical devices.</p>
<p>At first glance, PFAS sound pretty useful, so you might be wondering “what’s the big deal?”</p>
<p>The short answer is that PFAS are harmful to human health and the environment. </p>
<p>Some of the very same chemical properties that make PFAS attractive in products also mean these chemicals will persist in the environment for generations. Because of the widespread use of PFAS, these chemicals are now present in water, soil and living organisms and can be found across almost every part of the planet, including <a href="https://doi.org/10.1016/j.scitotenv.2012.10.091">Arctic glaciers</a>, <a href="https://doi.org/10.1021/es9003894">marine mammals</a>, remote communities living on subsistence diets, and in <a href="https://doi.org/10.1289/ehp.10598">98% of the American</a> public. </p>
<p>The U.S. Geological Survey estimates common types of PFAS are now in <a href="https://www.usgs.gov/news/national-news-release/tap-water-study-detects-pfas-forever-chemicals-across-us">at least 45%</a> of the country’s tap water. PFAS maker 3M, facing lawsuits, announced a <a href="https://www.prnewswire.com/news-releases/3m-resolves-claims-by-public-water-suppliers-supports-drinking-water-solutions-for-vast-majority-of-americans-301858581.html">$10.3 billion settlement in June 2023</a> with public water systems to pay for PFAS testing <a href="https://theconversation.com/3m-offers-10-3b-settlement-over-pfas-contamination-in-water-systems-now-how-do-you-destroy-a-forever-chemical-208362">and treatment</a>.</p>
<h2>Health risks from PFAS exposure</h2>
<p>Once people are exposed to PFAS, the chemicals remain in their bodies for a long time – months to years, depending on the specific compound – and they can accumulate over time.</p>
<p>Research consistently demonstrates that PFAS are associated with a variety of adverse health effects. A <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7906952/">recent review by a panel of experts</a> looking at research on PFAS toxicity concluded with a high degree of certainty that PFAS contribute to thyroid disease, elevated cholesterol, liver damage and kidney and testicular cancer.</p>
<figure class="align-center ">
<img alt="A woman lying on her back on white carpet holds up a little girl who is pretending to fly. A white couch is behind them." src="https://images.theconversation.com/files/469403/original/file-20220617-26-wyxgn.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/469403/original/file-20220617-26-wyxgn.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/469403/original/file-20220617-26-wyxgn.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/469403/original/file-20220617-26-wyxgn.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/469403/original/file-20220617-26-wyxgn.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/469403/original/file-20220617-26-wyxgn.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/469403/original/file-20220617-26-wyxgn.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="caption">Stain-resistant fabrics and carpets often contain PFAS.</span>
<span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/photo/photo-of-pretty-funny-little-girl-young-mommy-royalty-free-image/1215183791">Deagreez via Getty Images</a></span>
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<p>Further, they concluded with a high degree of certainty that PFAS <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7906952/">also affect babies</a> exposed in utero by increasing their likelihood of being born at a lower birth weight and responding less effectively to vaccines, while impairing women’s mammary gland development, which may adversely impact a mom’s ability to breastfeed.</p>
<p>The review also found evidence that PFAS <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7906952/">may contribute to a number of other disorders</a>, though further research is needed to confirm existing findings: inflammatory bowel disease, reduced fertility, breast cancer and an increased likelihood of miscarriage and developing high blood pressure and preeclampsia during pregnancy. Additionally, current research suggests that babies exposed prenatally are at higher risk of experiencing obesity, early-onset puberty and reduced fertility later in life. </p>
<p>Collectively, this is a formidable list of diseases and disorders.</p>
<h2>Who’s regulating PFAS?</h2>
<p>PFAS chemicals have been around since the late 1930s, when <a href="https://www.aps.org/publications/apsnews/202104/history.cfm">a DuPont scientist created one by accident</a> during a lab experiment. DuPont called it Teflon, which eventually became a household name for its use on nonstick pans. </p>
<p>Decades later, in 1998, Scotchgard maker 3M <a href="https://www.ewg.org/research/20-plus-years-epa-has-failed-regulate-forever-chemicals">notified the Environmental Protection Agency</a> that a PFAS chemical was showing up in human blood samples. At the time, 3M said low levels of the manufactured chemical had been detected in people’s blood as <a href="https://static.ewg.org/reports/2020/pfas-epa-timeline/1998_3M-Alerts-EPA.pdf">early as the 1970s</a>. </p>
<p>Despite the lengthy list of serious health risks linked to PFAS and a tremendous amount of federal investment in PFAS-related research in recent years, PFAS haven’t been regulated at the federal level in the United States.</p>
<p>The EPA has <a href="https://www.epa.gov/newsreleases/epa-announces-new-drinking-water-health-advisories-pfas-chemicals-1-billion-bipartisan">issued advisories</a> and health-based guidelines for two PFAS compounds – PFOA and PFOS – in drinking water, though these guidelines are not legally enforceable standards. And the Agency for Toxic Substances and Disease Registry has a <a href="https://www.atsdr.cdc.gov/pfas/resources/info-for-health-professionals.html">toxicological profile</a> for PFAS. </p>
<p>Federal rules could be coming. The EPA has a <a href="https://www.epa.gov/pfas/pfas-strategic-roadmap-epas-commitments-action-2021-2024">road map for PFAS regulations</a> it is considering, including regulations involving drinking water. The Biden administration has said it also <a href="https://www.whitehouse.gov/briefing-room/statements-releases/2022/06/15/fact-sheet-biden-harris-administration-combatting-pfas-pollution-to-safeguard-clean-drinking-water-for-all-americans/">expects to list PFOA and PFOS as hazardous substances</a> under the Superfund law, a move <a href="https://www.enr.com/articles/54206-utilities-voice-pfas-liability-fear-as-chemicals-head-to-superfund-list">that worries utilities</a> and businesses that use PFAS-containing products or processes because of the expense of cleanup. </p>
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<p>States, meanwhile, have been <a href="https://images.theconversation.com/files/528650/original/file-20230526-27-z9wg9e.png">taking their own actions</a> to protect residents against the risk of PFAS exposure. </p>
<p><a href="https://www.saferstates.com/toxic-chemicals/pfas/">At least 25 states</a> have laws targeting PFAS in various uses, such as in <a href="http://www.mainelegislature.org/legis/bills/display_ps.asp?ld=1433&PID=1456&snum=129">food packaging</a> and <a href="https://leg.colorado.gov/bills/hb22-1345">carpets</a>. But relying on <a href="https://www.saferstates.org/toxic-chemicals/pfas/">state laws</a> places burdens on state agencies responsible for enforcing them and creates a patchwork of regulations which, in turn, place burdens on business and consumers to navigate regulatory nuances across state lines.</p>
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<h2>So, what can you do about PFAS?</h2>
<p>Based on current scientific understanding, most people are exposed to PFAS primarily through their diet, though drinking water and airborne exposures may be significant among some people, especially if they live near known PFAS-related industries or contamination.</p>
<p>The best ways to protect yourself and your family from risks associated with PFAS are to educate yourself about potential sources of exposures.</p>
<p>Products labeled as water- or stain-resistant have a good chance of containing PFAS. Check the ingredients on products you buy and watch for chemical names containing “fluor-.” Specific trade names, such as Teflon and Gore-Tex, are also likely to contain PFAS. </p>
<p>Check whether there are sources of contamination near you, <a href="https://www.ewg.org/interactive-maps/pfas_contamination/map/">such as in drinking water</a> or PFAS-related industries in the area. Some states don’t test or report PFAS contamination, so the absence of readily available information does not necessarily mean the region is free of PFAS problems.</p>
<p>For additional information about PFAS, check out the <a href="https://www.atsdr.cdc.gov/pfas/index.html">Agency for Toxic Substances and Disease Registry</a>, <a href="https://www.epa.gov/pfas">EPA</a> and <a href="https://www.cdc.gov/biomonitoring/PFAS_FactSheet.html">U.S. Centers for Disease Control and Prevention</a> websites or contact your state or local public health department. </p>
<p>If you believe you have been exposed to PFAS and are concerned about your health, contact your health care provider. The Agency for Toxic Substances and Disease Registry has a succinct report to help health care professionals understand the <a href="https://www.atsdr.cdc.gov/pfas/activities/assessments.html">clinical implications of PFAS exposure</a>.</p>
<p><em>This article was updated July 11, 2023, with the USGS study on PFAS in drinking water.</em></p><img src="https://counter.theconversation.com/content/185015/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Kathryn Crawford has received funding from the National Institute of Environmental Health Sciences and the National Institute of General Medical Sciences.</span></em></p>These chemicals are now present in water, soil and living organisms and can be found across almost every part of the planet – including 98% of the American public.Kathryn Crawford, Assistant Professor of Environmental Health, MiddleburyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1827502022-06-01T19:29:19Z2022-06-01T19:29:19ZTo prevent disasters like Lac-Mégantic, private interests cannot be allowed to affect regulations<figure><img src="https://images.theconversation.com/files/466417/original/file-20220531-12-upxzmj.jpg?ixlib=rb-1.1.0&rect=4%2C0%2C2982%2C1836&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">A policy decision to allow the Montreal, Maine & Atlantic Railway — a company with a poor safety record – to run its trains through a town in Québec with single person crews resulted the fourth deadliest railway disaster in Canadian history in 2013. Eight years later, Transport Canada is still suffering from safety issues.</span> <span class="attribution"><span class="source">THE CANADIAN PRESS/Graham Hughes</span></span></figcaption></figure><p>On July 6, 2013, the <a href="https://www.chapters.indigo.ca/en-ca/books/the-lac-m%c3%a9gantic-rail-disaster/9781459413412-item.html">fourth deadliest railway disaster</a> in Canadian history took place. A train hauling 72 tankers filled with crude oil derailed in Lac-Mégantic, Que., killing 47 people.</p>
<p>The roots of the Lac-Mégantic rail disaster can be traced to a combination of corporate negligence and regulatory failure. It is what spurred the publication of my <a href="https://www.chapters.indigo.ca/en-ca/books/corporate-rules-the-real-world/9781459416956-item.html">recently edited volume</a> about how Canadian corporations have co-opted government agencies for private interests.</p>
<p>Just prior to the disaster, the Canadian railway lobby had redrafted the <a href="https://tc.canada.ca/en/rail-transportation/rules/2021-2022/canadian-rail-operating-rules">Canadian Rail Operating Rules</a>, permitting freight trains to operate with a single-person crew. </p>
<p>Transport Canada then granted permission to the Montreal, Maine & Atlantic Railway — <a href="https://www.thestar.com/news/canada/2013/07/10/lac_megantic_disaster_mma_railway_had_poor_safety_record_in_us.html">a company with a poor safety record</a> — <a href="https://montrealgazette.com/news/montreal/railway-companies-scaling-down-to-single-crew-member-on-some-lines">to run its trains through Lac-Mégantic with single-person crews</a>.</p>
<p>This policy change was a significant contributing factor to the disaster. It exemplifies why regulatory capture is so dangerous and why it needs to be stopped.</p>
<h2>Defining regulatory capture</h2>
<p>Regulatory capture occurs when regulations are taken over, or captured, by the <a href="https://www.investopedia.com/terms/r/regulatory-capture.asp">private interests of an industry</a>, instead of being used to <a href="https://www.canada.ca/en/government/system/laws/developing-improving-federal-regulations/requirements-developing-managing-reviewing-regulations/guidelines-tools/cabinet-directive-regulation.html#toc3">protect citizens’ health and safety, and the environment</a>.</p>
<p>This primarily occurs when industries are the ones shaping policy, legislation and regulations, instead of the government. Industries often frame regulations as being <a href="https://www.hsa.ie/eng/topics/health_and_safety_myths/myth_3_red_tape_hindering_business/">detrimental to job and wealth creation</a>. This enables them to block or delay new regulations, and exert pressure to remove or dilute existing ones.</p>
<p>The increase in regulatory capture can be traced back to Prime Minister Stephen Harper’s 2012 <a href="https://www.canada.ca/en/government/system/laws/developing-improving-federal-regulations/requirements-developing-managing-reviewing-regulations/guidelines-tools/cabinet-directive-regulatory-management.html">Cabinet Directive on Regulatory Management</a> policy that framed regulations as an administrative burden and a business cost that needed to be “streamlined.”</p>
<p>The policy’s centrepiece was the <a href="https://www.cbc.ca/news/politics/red-tape-report-touts-one-for-one-regulatory-rule-1.1261264">“one-for-one” rule</a>, which mandated regulatory agencies to offset each new or amended regulation by removing at least one existing regulation. </p>
<figure class="align-center ">
<img alt="A man in a suit gesturing while he speaks" src="https://images.theconversation.com/files/466414/original/file-20220531-20-uq2ner.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/466414/original/file-20220531-20-uq2ner.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=439&fit=crop&dpr=1 600w, https://images.theconversation.com/files/466414/original/file-20220531-20-uq2ner.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=439&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/466414/original/file-20220531-20-uq2ner.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=439&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/466414/original/file-20220531-20-uq2ner.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=551&fit=crop&dpr=1 754w, https://images.theconversation.com/files/466414/original/file-20220531-20-uq2ner.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=551&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/466414/original/file-20220531-20-uq2ner.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=551&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Stephen Harper’s Cabinet Directive on Regulatory Management policy involved the ‘one-for-one’ rule which mandated regulatory agencies to offset each proposed new or amended regulation by removing at least one existing regulation.</span>
<span class="attribution"><span class="source">THE CANADIAN PRESS/Graham Hughes</span></span>
</figcaption>
</figure>
<p>The one-for-one rule put regulators in an awkward — and potentially dangerous — position. If regulators want to propose new regulations, they have to remove an already existing regulation, with potentially dangerous health and safety consequences. Unsurprisingly, this policy has resulted in catastrophic accidents and is in desperate need of reform. </p>
<p>Since the introduction of Harper’s policy, regulatory capture has spread far and wide in Canada. Experts in my edited volume illustrate how embedded it has become in various areas, from the pharmaceutical industry, as illustrated by pediatrician and clinical pharmacologist <a href="https://cfe.ryerson.ca/people/mich%C3%A8le-brill-edwards">Michèle Brill Edwards</a>, to the petroleum industry, as illustrated by the <a href="https://www.corporatemapping.ca/">Corporate Mapping Project</a>’s co-ordinator, <a href="https://www.sfu.ca/sustainabledevelopment/People/william-k-carroll.html">William Carroll</a>.</p>
<h2>Confronting and overcoming regulatory capture</h2>
<p>Until the Cabinet Directive on Regulatory Management is reformed, regulators need to take the necessary steps to offset regulatory capture. My book offers <a href="https://www.chapters.indigo.ca/en-ca/books/corporate-rules-the-real-world/9781459416956-item.html">concrete suggestions that regulators can follow</a> to ensure regulations are once again made in the public interest.</p>
<p>As a result of regulatory resources being defunded over the years, many agencies have been forced to become dependent on corporations to develop and manage their own safety oversight regimes. To overcome this issue, regulatory agency resources must be bolstered, including hiring more personnel and increasing research capacity.</p>
<figure class="align-center ">
<img alt="Two oil pumps silhouetted against the sky as the sun sets" src="https://images.theconversation.com/files/466415/original/file-20220531-22-qsckx8.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/466415/original/file-20220531-22-qsckx8.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/466415/original/file-20220531-22-qsckx8.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/466415/original/file-20220531-22-qsckx8.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/466415/original/file-20220531-22-qsckx8.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=502&fit=crop&dpr=1 754w, https://images.theconversation.com/files/466415/original/file-20220531-22-qsckx8.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=502&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/466415/original/file-20220531-22-qsckx8.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=502&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Pump jacks extract oil from beneath the ground east of New Town, N.D., in May 2021. Regulatory capture has spread to a number of industries, including the petroleum industry.</span>
<span class="attribution"><span class="source">(AP Photo/Matthew Brown)</span></span>
</figcaption>
</figure>
<p>Regulators must also develop <a href="https://www.ourcommons.ca/Content/Committee/412/ETHI/Reports/RP6365946/ethirp01/ethirp01-e.pdf">more robust conflict-of-interest provisions</a> <a href="https://www.mqup.ca/too-critical-to-fail-products-9780773551619.php">to clear up oversights</a>, along with whistleblower protections. </p>
<p>In 2021, two international bodies <a href="https://whistleblower.org/wp-content/uploads/2021/03/Are-Whistleblowing-laws-working-REPORT_02March21.pdf">ranked Canada in last place</a> among 37 countries for the effectiveness of its whistleblowing frameworks. It is clear that we need to do better as a country.</p>
<p>Similarly, law professors <a href="https://uniweb.uottawa.ca/members/1009">Steven Bittle</a> and <a href="https://uniweb.uottawa.ca/members/404">Jennifer Quaid</a> found that regulatory enforcement and accountability provisions have been hollowed out in Canada, allowing corporations to avoid serious legal liability — including criminal wrongdoing and corruption. </p>
<p>To counteract this, civil and criminal liability regimes must be reformed to hold senior government officials, corporate executives, directors and owners accountable for actions that result in accidents, destruction, illness and death.</p>
<h2>Citizens must be involved</h2>
<p>The vast majority of citizens expect their governments to take the necessary measures to protect their health, safety and environment. Understandably, opinion polls regularly indicate that the <a href="http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.582.613&rep=rep1&type=pdf">public does not trust corporations to regulate themselves</a>.</p>
<p>Regulatory capture is likely to happen in a <a href="https://doi.org/10.1111/capa.12412">revolving door fashion</a>, where people move seamlessly between private and public sector jobs and influence policies to suit the interests of both parties. </p>
<p>One way to stop the revolving door is by improving <a href="https://ottawacitizen.com/opinion/beeby-world-press-freedom-day-its-time-canadas-access-to-information-law-was-enforced">public access to information legislation</a>. This would ensure that information shared between corporations and regulators under the veil of “<a href="https://www.priv.gc.ca/en/privacy-topics/privacy-laws-in-canada/the-personal-information-protection-and-electronic-documents-act-pipeda/pipeda_brief/">commercial confidentiality</a>” would publicly accessible.</p>
<p>Citizens should also be involved in the regulatory process, since regulations are supposed to be created to protect them. <a href="https://www.ohchr.org/sites/default/files/Documents/Issues/ToxicWaste/RightToInformation/AarhusConventionUNECE2.pdf">Effective public participation</a> means the right to know, the right to participate in decision-making and the right to remedy or compensation for regulatory breakdowns.</p>
<p>Regulators should improve mechanisms for public participation in regulation-making processes, including <a href="https://www.bangthetable.com/public-engagement-software/">online engagement</a>. </p>
<figure class="align-center ">
<img alt="A man looking at a bulletin board covered in photos and scraps of writing" src="https://images.theconversation.com/files/466416/original/file-20220531-26-o97rim.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/466416/original/file-20220531-26-o97rim.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=379&fit=crop&dpr=1 600w, https://images.theconversation.com/files/466416/original/file-20220531-26-o97rim.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=379&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/466416/original/file-20220531-26-o97rim.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=379&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/466416/original/file-20220531-26-o97rim.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=476&fit=crop&dpr=1 754w, https://images.theconversation.com/files/466416/original/file-20220531-26-o97rim.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=476&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/466416/original/file-20220531-26-o97rim.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=476&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">A man looks at photos of some of the victims of the Lac-Mégantic rail disaster in 2014. Corporate negligence and regulatory failure has lead to a number of fatal disasters in Canada.</span>
<span class="attribution"><span class="source">THE CANADIAN PRESS/Ryan Remiorz</span></span>
</figcaption>
</figure>
<p>Overcoming regulatory capture will require widespread mobilization, from citizens to members of industry alike. It will require a broad toolbox of collective actions from the public, including non-violent protest, advocacy, campaigns and more. Courageous parliamentary and bureaucratic leadership is also vital to achieving fundamental change. </p>
<p>At a time when the threat of potential disaster looms on the horizon, the stakes could not be higher. Last year — eight years after the Lac-Mégantic disaster — <a href="https://www.thestar.com/opinion/contributors/2021/07/05/eight-years-after-the-lac-mgantic-disaster-the-window-for-a-recurrence-is-still-open.html">an auditor general report on railway safety expressed serious concern</a> about defects in Transport Canada’s safety oversight regime. If we are to prevent future disasters from happening, regulatory capture must be overcome.</p><img src="https://counter.theconversation.com/content/182750/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Bruce Campbell is affiliated with
The Group of 78; the Canadian Centre for Policy Alternatives; the Polaris Institute; Rideau Institute for International Affairs</span></em></p>Industries have blocked or delayed new regulations and pushed to remove or dilute existing regulations by framing regulations as detrimental to creating jobs and wealth.Bruce Campbell, Adjunct Professor, Faculty of Environmental and Urban Change, York University, CanadaLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1764342022-02-15T13:24:07Z2022-02-15T13:24:07ZHow poisonous mercury gets from coal-fired power plants into the fish you eat<figure><img src="https://images.theconversation.com/files/446121/original/file-20220213-17-gt0hty.jpg?ixlib=rb-1.1.0&rect=0%2C17%2C3000%2C2110&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Coal-fired power plants are a source of mercury that people can ingest by eating fish.</span> <span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/news-photo/danielle-gross-casts-his-fishing-line-into-the-potomac-news-photo/478998730">Mark Wilson/Getty Images</a></span></figcaption></figure><p>People fishing along the banks of the White River as it winds through Indianapolis sometimes pass by ominous signs warning about eating the fish they catch. </p>
<p><a href="https://extension.wsu.edu/foodsafety/content/risks-of-mercury-in-fish">One of the risks</a> they have faced is mercury poisoning.</p>
<p>Mercury is a neurotoxic metal that can cause irreparable harm to human health – especially the brain development of young children. It is <a href="https://doi.org/10.1289/ehp.7743">tied to lower IQ</a> and results in decreased earning potential, as well as higher health costs. Lost productivity from mercury alone was calculated in 2005 to reach <a href="https://doi.org/10.1289/ehp.7743">almost $9 billion per year</a>. </p>
<p>One way mercury gets into river fish is with the gases that rise up the smokestacks of coal-burning power plants. </p>
<p><iframe id="FW8zH" class="tc-infographic-datawrapper" src="https://datawrapper.dwcdn.net/FW8zH/6/" height="400px" width="100%" style="border: none" frameborder="0"></iframe></p>
<p>The Environmental Protection Agency has had a rule since 2012 limiting mercury emissions from coal-fired power plants. But the Trump administration <a href="https://eelp.law.harvard.edu/2019/03/rolling-back-the-mercury-and-air-toxics-standards-proposed-withdrawal-of-appropriate-and-necessary/">stopped enforcing it</a>, <a href="https://www.reuters.com/article/us-usa-epa-coal-mercury/trump-administration-weakens-mercury-rule-for-coal-plants-idUSKCN21Y1IW">arguing that the costs</a> to industry outweighed the health benefit.</p>
<p>Now, the Biden administration is <a href="https://www.epa.gov/newsreleases/epa-reaffirms-scientific-economic-and-legal-underpinnings-limits-toxic-emissions">moving to reassert it</a>.</p>
<p>I study mercury and its sources as a <a href="https://scholar.google.com/citations?user=MEp4948AAAAJ&hl=en">biogeochemist</a> at Indiana University-Purdue University Indianapolis. Before the EPA’s original mercury rule went into effect, my students and I launched a project to track how Indianapolis-area power plants were increasing mercury in the rivers and soil.</p>
<h2>Mercury bioaccumulates in the food chain</h2>
<p>The risks from eating a fish from a river downwind from a coal-burning power plant depends on both the type of fish caught and the age and condition of the person consuming it.</p>
<p>Mercury is a <a href="https://www.usgs.gov/special-topics/water-science-school/science/mercury-contamination-aquatic-environments">bioaccumulative toxin</a>, meaning that it increasingly concentrates in the flesh of organisms as it makes its way up the food chain.</p>
<figure class="align-center ">
<img alt="A person's hands old a smallmouth bass, with the fish's mouth open" src="https://images.theconversation.com/files/446123/original/file-20220213-87622-e0wm9c.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/446123/original/file-20220213-87622-e0wm9c.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=450&fit=crop&dpr=1 600w, https://images.theconversation.com/files/446123/original/file-20220213-87622-e0wm9c.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=450&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/446123/original/file-20220213-87622-e0wm9c.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=450&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/446123/original/file-20220213-87622-e0wm9c.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=566&fit=crop&dpr=1 754w, https://images.theconversation.com/files/446123/original/file-20220213-87622-e0wm9c.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=566&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/446123/original/file-20220213-87622-e0wm9c.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=566&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Mercury accumulates as it moves up the food chain.</span>
<span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/photo/holding-a-smallmouth-bass-royalty-free-image/123084571">doug4537 via Getty Images</a></span>
</figcaption>
</figure>
<p>The mercury emitted from coal-burning power plants falls onto soils and washes into waterways. There, the moderately benign mercury is transformed by bacteria into a toxic organic form called methylmercury.</p>
<p>Each bacterium might contain only one unit of toxic methylmercury, but a worm chewing through sediment and eating 1,000 of those bacteria now contains 1,000 doses of mercury. The catfish that eats the worm then get more doses, and so on up the food chain to humans.</p>
<p>In this way, top-level predator fishes, such as smallmouth bass, walleye, largemouth bass, lake trout and Northern pike, typically contain the highest amounts of mercury in aquatic ecosystems. On average, one of these fish contains enough to make eating only <a href="https://www.epa.gov/fish-tech/epa-fda-fish-advice-technical-information">one serving of them per month dangerous</a> for the developing fetuses of pregnant women and for children.</p>
<h2>How coal plant mercury rains down</h2>
<p>In our study, we wanted to answer a simple question: Did the local coal-burning power plants, known to be <a href="https://www.purdue.edu/discoverypark/energy/assets/pdfs/cctr/outreach/Basics2-Mercury-Mar07.pdf">major emitters of toxic mercury</a>, have an impact on the local environment?</p>
<p>The obvious answer seems to be yes, they do. But in fact, quite a bit of research – and coal industry advertising – noted that mercury is a “<a href="https://doi.org/10.1002/etc.1980">global pollutant</a>” and could not necessarily be traced to a local source. A recurring argument is that mercury deposited on the landscape came from coal-burning power plants <a href="https://doi.org/10.1021/es062707c">in China</a>, so why regulate local emissions if others were still burning coal?</p>
<p>That justification was based on the unique chemistry of this element. It is the only metal that is liquid at room temperature, and when heated just to a moderate level, will evaporate into mercury vapor. Thus, when coal is burned in a power plant, the mercury that is present in it is released through the smokestacks as a gas and dilutes as it travels. Low levels of mercury also <a href="https://www.epa.gov/international-cooperation/mercury-emissions-global-context">occur naturally</a>.</p>
<p>Although this argument was technically true, we found it obscured the bigger picture.</p>
<figure class="align-center ">
<img alt="A view of the river with a bridge and the city in the background." src="https://images.theconversation.com/files/446383/original/file-20220214-19-t52yt9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/446383/original/file-20220214-19-t52yt9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/446383/original/file-20220214-19-t52yt9.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/446383/original/file-20220214-19-t52yt9.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/446383/original/file-20220214-19-t52yt9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/446383/original/file-20220214-19-t52yt9.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/446383/original/file-20220214-19-t52yt9.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">People sometimes fish along the White River where it flows through Indianapolis.</span>
<span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/photo/indianapolis-royalty-free-image/520980871?adppopup=true">alexeys via Getty Images</a></span>
</figcaption>
</figure>
<p>We found the overwhelming source of mercury was within sight of the White River fishermen – a large coal-burning power plant on the edge of the city.</p>
<p>This power plant emitted vaporous mercury at the time, though it has since <a href="https://www.transmissionhub.com/articles/2016/02/indianapolis-powers-harding-street-plant-burns-its-last-coal.html">switched to natural gas</a>. We found that much of the plant’s mercury rapidly reacted with other atmospheric constituents and water vapor to <a href="https://doi.org/10.1007/s11270-010-0703-7">“wash out” over the city</a>. It was <a href="https://agupubs.onlinelibrary.wiley.com/doi/full/10.1002/gbc.20040">raining down mercury on the landscape</a>.</p>
<h2>Traveling by air and water, miles from the source</h2>
<p>Mercury emitted from the smokestacks of coal-fired power plants can fall from the atmosphere with rain, mist or chemical reactions. Several studies have shown <a href="https://doi.org/10.1016/j.jhazmat.2016.01.026">elevated levels of mercury in soils and plants near power plants</a>, with much of the mercury <a href="https://doi.org/10.1038/srep46545">falling within about 9 miles</a> (15 kilometers) of the smokestack.</p>
<p>When we surveyed hundreds of surface soils ranging from about 1 to 31 miles (2 to 50 km) from the coal-fired power plant, then the single largest emitter of mercury in central Indiana, we were shocked. We found <a href="https://doi.org/10.12952/journal.elementa.000059">a clear “plume” of elevated mercury</a> in Indianapolis, with much higher values near the power plant tailing off to almost background values 31 miles downwind. </p>
<p>The White River flows from the northeast to the southwest through Indianapolis, opposite the wind patterns. When we sampled sediments from most of its course through central Indiana, we found that mercury levels started low well upstream of Indianapolis, but <a href="https://doi.org/10.1007/s11270-010-0703-7">increased substantially</a> as the river flowed through downtown, apparently accumulating deposited mercury along its flow path. </p>
<p>[<em>Understand developments in science, health and technology, each week.</em> <a href="https://memberservices.theconversation.com/newsletters/?nl=science&source=inline-science-understand">Subscribe to The Conversation’s science newsletter</a>.]</p>
<p>We also found high levels well downstream of the city. Thus a fisherman out in the countryside, far away from the city, was still <a href="https://doi.org/10.12952/journal.elementa.000059">at significant risk</a> of catching, and eating, high-mercury fish.</p>
<p>The region’s <a href="https://www.in.gov/health/files/Marion_sensitive_fishadvisory.pdf">fish advisories</a> still recommend sharply limiting the amount of fish eaten from the White River. In Indianapolis, for example, pregnant women are advised to <a href="https://www.in.gov/health/files/Marion_sensitive_fishadvisory.pdf">avoid eating some fish</a> from the river altogether.</p>
<h2>Reviving the MATS rule</h2>
<p>The EPA announced the Mercury and Air Toxic Standards rule in 2011 to deal with the exact health risk Indianapolis was facing. </p>
<p>The <a href="https://eelp.law.harvard.edu/2017/09/mercury-and-air-toxics-standards/">rule stipulated</a> that mercury sources had to be sharply reduced. For coal-fired power plants, this meant either installing costly mercury-capturing filters in the smokestacks or converting to another energy source. <a href="https://www.eia.gov/totalenergy/data/monthly/">Many converted to natural gas</a>, which reduces the mercury risk but still contributes to health problems and global warming.</p>
<p>The MATS rule helped tilt the national energy playing field away from coal, until the Trump Administration <a href="https://www.epa.gov/mats/proposed-revised-supplemental-finding-and-results-residual-risk-and-technology-review">attempted to weaken the rule</a> in 2020 to try to bolster the <a href="https://www.eia.gov/todayinenergy/detail.php?id=44155">declining U.S. coal industry</a>. The administration rescinded a “supplemental finding” that determined it is “appropriate and necessary” to regulate mercury from power plants.</p>
<p>On Jan. 31, 2022, the Biden Administration <a href="https://www.epa.gov/stationary-sources-air-pollution/proposed-revocation-2020-reconsideration-and-affirmation">moved to reaffirm that supplemental finding</a> and effectively restore the standards.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/446071/original/file-20220213-15-aw2lhh.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/446071/original/file-20220213-15-aw2lhh.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=277&fit=crop&dpr=1 600w, https://images.theconversation.com/files/446071/original/file-20220213-15-aw2lhh.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=277&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/446071/original/file-20220213-15-aw2lhh.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=277&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/446071/original/file-20220213-15-aw2lhh.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=348&fit=crop&dpr=1 754w, https://images.theconversation.com/files/446071/original/file-20220213-15-aw2lhh.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=348&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/446071/original/file-20220213-15-aw2lhh.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=348&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">More than a quarter of U.S. coal-fired power plants currently operating were scheduled as of 2021 to be retired by 2035.</span>
<span class="attribution"><a class="source" href="https://www.eia.gov/todayinenergy/detail.php?id=50658">EIA</a></span>
</figcaption>
</figure>
<p>Some economists have calculated the net cost of the MATS rule to the U.S. electricity sector to be about <a href="https://www.nera.com/content/dam/nera/publications/archive2/PUB_MATS_Rule_0312.pdf">$9.6 billion per year</a>. This is roughly equal to the earlier estimates of productivity loss from the harm mercury emissions cause.</p>
<p>To a public health expert, this math problem is a no-brainer, and I am pleased to see the rule back in place, protecting the health of generations of future Americans.</p><img src="https://counter.theconversation.com/content/176434/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Gabriel Filippelli does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>The Biden administration is moving to revive mercury limits for coal-fired power plants. A scientist explains mercury’s health risks and the role power plants play.Gabriel Filippelli, Chancellor's Professor of Earth Sciences and Executive Director, Indiana University Environmental Resilience Institute, IUPUILicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1749382022-01-19T17:13:21Z2022-01-19T17:13:21ZEveryone should be concerned if the federal government bypasses the Canada Gazette<figure><img src="https://images.theconversation.com/files/441162/original/file-20220117-27-pvmez0.JPG?ixlib=rb-1.1.0&rect=54%2C0%2C6122%2C3831&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">People gather to protest COVID-19 vaccine mandates and masking measures during a rally in Kingston, Ont., in November 2021. Ottawa's proposals to bypass publishing vaccine mandate guidelines goes against the principles of good governance.</span> <span class="attribution"><span class="source"> THE CANADIAN PRESS/Lars Hagberg </span></span></figcaption></figure><iframe style="width: 100%; height: 175px; border: none; position: relative; z-index: 1;" allowtransparency="" src="https://narrations.ad-auris.com/widget/the-conversation-canada/everyone-should-be-concerned-if-the-federal-government-bypasses-the-canada-gazette" width="100%" height="400"></iframe>
<p>In late 2021, Labour Minister Seamus O'Regan signalled that his department would skip publication in the <a href="https://www.gazette.gc.ca/accueil-home-eng.html"><em>Canada Gazette</em></a> of any new regulations on enforcing the federal government’s vaccine mandate for the core public service. </p>
<p><div data-react-class="Tweet" data-react-props="{"tweetId":"1479451001564418048"}"></div></p>
<p>The Canada Gazette is the official publication of the Canadian government that publishes notices of statutes, regulations, proclamations and other business of government and Parliament. </p>
<p><a href="https://www.hilltimes.com/2022/01/07/politics-this-morning-dont-forget-the-gazette-says-ex-director/336842?utm_source=Subscriber+-++Hill+Times+Publishing&utm_campaign=878e995b18-Politics-This-Morning&utm_medium=email&utm_term=0_8edecd9364-878e995b18-90945061&mc_cid=878e995b18&mc_eid=695ca95ee3">As reported in the subscription-only <em>Hill Times</em></a>, O'Regan’s proposal to bypass the <em>Gazette</em> was apparently aimed at making good on Prime Minister Justin Trudeau’s <a href="https://www.cbc.ca/news/politics/trudeau-post-election-press-conference-1.6192325">October 2021 promise to ensure the well-being of Canadians</a> by making sure public servants were vaccinated.</p>
<p><a href="https://www.cer-rec.gc.ca/en/about/news-room/whats-new/2021/labour-canada-launches-consultation-on-mandatory-vaccination-for-federally-regulated-workplaces.html">While the government consulted with select stakeholders on the measures</a>, bypassing publication in the <em>Gazette</em> — an important first stage in the regulation process — undercuts good governance principles of transparency, accountability and public trust.</p>
<p>The Trudeau cabinet’s directive allowing for this exception is consistent with recent moves by the federal government away from traditional values of procedural fairness and caution in order to act swiftly during the pandemic.</p>
<p>In his <a href="https://publications.gc.ca/collections/collection_2020/bcp-pco/CP1-1-2020-eng.pdf">2020 report to the prime minister</a>, the clerk of the Privy Council, who is the head of the public service and the body that supports cabinet in its work, stated:</p>
<blockquote>
<p>“Agility is our mindset: as this global pandemic quickly evolves, so too will our response.” </p>
</blockquote>
<p>In June 2021, <a href="https://pm.gc.ca/en/news/statements/2021/06/13/statement-prime-minister-national-public-service-week">Trudeau praised the public service</a> for “finding innovative ways to support the government’s efforts” to mitigate the pandemic’s impact.</p>
<p>Quick government responses have been necessary during the pandemic. However, government agility and immediate responsiveness at the expense of procedural safeguards can have significant consequences. Dispensing with democratic checks is a step to be taken with caution and eyes wide open.</p>
<h2>Statutes and regulations</h2>
<p>A vital component of the rule of law is that governments can act only within the authority granted to them by national constitutions. Statutory power is the most important instrument governments possess to convert policy choices into action.</p>
<p>Statutes are formal exercises of government policy decisions that are passed by Parliament before implementation by the public service. Parliamentary scrutiny ensures elected governments are held to account, and that their actions are brought into public light.</p>
<p>In contrast, regulations are cabinet decisions taken in accordance with statutes to implement laws, and aren’t subject to the same level of parliamentary scrutiny. </p>
<p>Under the <a href="https://laws-lois.justice.gc.ca/eng/acts/S-22/">Statutory Instruments Act</a>, regulations are examined by the clerk of the Privy Council and the deputy justice minister, not Parliament, to ensure compliance with Canada’s Constitution and Parliament’s statutory authority prior to taking effect. Regulations become public when published in the <em>Canada Gazette</em>.</p>
<figure class="align-center ">
<img alt="People wearing masks stand in an outdoor lineup with a Christmas tree in the background." src="https://images.theconversation.com/files/441168/original/file-20220117-27-xcrrvs.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/441168/original/file-20220117-27-xcrrvs.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=454&fit=crop&dpr=1 600w, https://images.theconversation.com/files/441168/original/file-20220117-27-xcrrvs.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=454&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/441168/original/file-20220117-27-xcrrvs.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=454&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/441168/original/file-20220117-27-xcrrvs.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=571&fit=crop&dpr=1 754w, https://images.theconversation.com/files/441168/original/file-20220117-27-xcrrvs.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=571&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/441168/original/file-20220117-27-xcrrvs.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=571&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">People line up for their vaccination appointments outside an ice hockey arena to receive their COVID-19 booster shots at Jabapalooza, a pop-up vaccine clinic, in Ottawa in December 2021.</span>
<span class="attribution"><span class="source">THE CANADIAN PRESS/Justin Tang</span></span>
</figcaption>
</figure>
<h2>Importance of Gazette publication</h2>
<p><em>Canada Gazette</em> publication of regulations before they take effect evolved as a standard and recognized system of announcing these decisions to the public and inviting input on them. Although there are exceptions to this process, it’s the accepted convention.</p>
<figure class="align-left zoomable">
<a href="https://images.theconversation.com/files/441170/original/file-20220117-23-2x9jmh.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="A copy of the Canada Gazette. Masthead reads The Canada Gazette, publish by authority." src="https://images.theconversation.com/files/441170/original/file-20220117-23-2x9jmh.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/441170/original/file-20220117-23-2x9jmh.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=1019&fit=crop&dpr=1 600w, https://images.theconversation.com/files/441170/original/file-20220117-23-2x9jmh.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=1019&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/441170/original/file-20220117-23-2x9jmh.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=1019&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/441170/original/file-20220117-23-2x9jmh.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=1281&fit=crop&dpr=1 754w, https://images.theconversation.com/files/441170/original/file-20220117-23-2x9jmh.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=1281&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/441170/original/file-20220117-23-2x9jmh.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=1281&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">A 1901 edition of the Canada Gazette.</span>
<span class="attribution"><span class="source">Government of Canada</span></span>
</figcaption>
</figure>
<p>The government must respond to the public input before registering the regulations with the clerk of the Privy Council and posting the regulations and response in the Gazette. The regulations are publicly distributed after approval by the governor general.</p>
<p>After coming into force, regulations are reviewed by a parliamentary committee that may recommend changes to the regulatory authority if a problem is found. If the two bodies cannot agree on a solution, Parliament can recommend disallowance of the regulation. However, revoking regulations can be difficult.</p>
<p>Skipping publication in the <em>Canada Gazette</em> dispenses with a time-honoured procedural safeguard that allows these decisions to be known to both Parliament and the public. </p>
<p>This leads to an interesting twist of potential relevance here. If regulations aren’t published in the <em>Gazette</em>, they’re still valid. </p>
<p>But they’re also in violation of the democratic principle that all laws must be knowable to the public. Violating that principle means that members of public cannot be subject to penalty for failure to comply.</p>
<p>In essence, they’re not enforceable because citizens don’t know about their responsibilities under the regulations if they aren’t first published in the <em>Gazette</em>.</p>
<h2>Questions, consequences for democracy</h2>
<p>Canadian democratic practices have developed over hundreds of years to prevent the misuse of government power and to build public trust. They ensure that expediency does not override transparency, accountability and good governance. </p>
<p>The question for Canadians is whether expediency warrants the avoidance of process and democratic safeguards.</p>
<figure class="align-left zoomable">
<a href="https://images.theconversation.com/files/441171/original/file-20220117-23-59oiap.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Justin Trudeau in a black T-shirt with his sleeve rolled up getting vaccinated." src="https://images.theconversation.com/files/441171/original/file-20220117-23-59oiap.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/441171/original/file-20220117-23-59oiap.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=384&fit=crop&dpr=1 600w, https://images.theconversation.com/files/441171/original/file-20220117-23-59oiap.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=384&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/441171/original/file-20220117-23-59oiap.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=384&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/441171/original/file-20220117-23-59oiap.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=483&fit=crop&dpr=1 754w, https://images.theconversation.com/files/441171/original/file-20220117-23-59oiap.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=483&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/441171/original/file-20220117-23-59oiap.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=483&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Prime Minister Justin Trudeau receives his COVID-19 vaccine booster shot at a pharmacy in Ottawa.</span>
<span class="attribution"><span class="source">THE CANADIAN PRESS/Sean Kilpatrick</span></span>
</figcaption>
</figure>
<p>The current proposal to go around the <em>Gazette</em> may appear necessary for the government to act quickly to ensure vaccine mandates are observed. But is such urgency really warranted given the government promise has already been delayed for more than two months?</p>
<p>Is there a compelling reason not to publish the regulations and receive public input when the government has proclaimed loudly to its workforce that everyone must be vaccinated or face consequences? Or is it engaging in meaningless action if the regulations aren’t enforceable, thereby taking public credit for tough action but evading responsibility for actual enforcement?</p>
<p>The most important implications of this proposal are for the longer term because dispensing with safeguards in our system can open the door to future government actions being taken without regard for checks on the use of power. </p>
<p>In our view, bypassing the <em>Canada Gazette</em> for such important regulations is contrary to good governance and could erode public trust in government.</p><img src="https://counter.theconversation.com/content/174938/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.</span></em></p>In a time-honoured tradition of Canadian democracy, government regulations become public when they appear in the Canada Gazette. That’s why Ottawa’s proposal to bypass that step is so troublesome.Kathy L. Brock, Professor, Policy Studies, Queen's University, OntarioRobert P. Shepherd, Associate Professor, Public Policy, Carleton UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1524192021-01-12T13:23:33Z2021-01-12T13:23:33ZBiden plans to fight climate change in a way no U.S. president has done before<figure><img src="https://images.theconversation.com/files/378202/original/file-20210112-21-1tazwaa.jpg?ixlib=rb-1.1.0&rect=175%2C0%2C2081%2C1224&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Managing climate change requires a systems approach, with strategic coordination across all sectors.</span> <span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/illustration/innovative-green-technologies-smart-systems-royalty-free-illustration/1164502175">Elenabs via Getty Images</a></span></figcaption></figure><p>Joe Biden is preparing to deal with climate change in a way no U.S. president has done before – by mobilizing his entire administration to take on the challenge from every angle in a strategic, integrated way. </p>
<p>The strategy is evident in the people Biden has chosen for his <a href="https://buildbackbetter.gov/nominees-and-appointees/">Cabinet and senior leadership roles</a>: Most have track records for incorporating climate change concerns into a wide range of policies, and they have experience partnering across agencies and levels of government. </p>
<p>Those skills are crucial, because slowing climate change will require a comprehensive and coordinated “all hands on deck” approach.</p>
<p>We did that with energy when I was governor of Colorado, and I can tell you it isn’t simple. Energy policy isn’t just about electricity. It’s about how homes are built, how they generate power and feed it into the grid and how the transportation, industrial and agriculture sectors evolve. It’s about regulations, trade rules, government purchases and funding for research for innovation. Coordination and collaboration among agencies and different levels of government is crucial.</p>
<figure class="align-center ">
<img alt="Gina McCarthy at the event where Biden introduced his climate policy leaders." src="https://images.theconversation.com/files/378211/original/file-20210112-17-1ismxr2.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/378211/original/file-20210112-17-1ismxr2.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/378211/original/file-20210112-17-1ismxr2.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/378211/original/file-20210112-17-1ismxr2.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/378211/original/file-20210112-17-1ismxr2.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/378211/original/file-20210112-17-1ismxr2.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/378211/original/file-20210112-17-1ismxr2.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">The task of coordinating climate actions across the government falls to Gina McCarthy, a former EPA administrator who will be Biden’s national climate advisor.</span>
<span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/news-photo/appointee-for-national-climate-advisor-gina-mccarthy-speaks-news-photo/1230219937">Joshua Roberts/Getty Images</a></span>
</figcaption>
</figure>
<p>A coordinated approach also helps ensure that vulnerable populations aren’t overlooked. Biden has committed to <a href="https://joebiden.com/environmental-justice-plan/">help disadvantaged communities</a> that have too often borne the brunt of fossil fuel industry pollution, as well as those that have been losing fossil fuel jobs.</p>
<p>The <a href="https://buildbackbetter.gov/nominees-and-appointees/">Biden-Harris team’s</a> depth of experience will be vital as they take over from a Trump administration that has been <a href="https://www.ucsusa.org/resources/science-under-trump">stripping government agencies of their expertise</a> and eliminating environmental protections. With Democrats gaining <a href="https://www.politico.com/news/2021/01/11/democrats-biden-executive-orders-456676">control of both the House and Senate</a>, the Biden administration may also have a better chance of overhauling laws, funding and tax incentives in ways that could fundamentally transform the U.S. approach to climate change.</p>
<p>Here are some of the biggest challenges ahead and what “all hands on deck” might mean.</p>
<h2>Dealing with all those climate policy rollbacks</h2>
<p>From its first days, the Trump administration began trying to nullify or weaken U.S. environmental regulations. It had <a href="https://www.nytimes.com/interactive/2020/climate/trump-environment-rollbacks-list.html">rolled back 84 environmental rules</a> by November 2020, including <a href="https://rhg.com/research/the-rollback-of-us-climate-policy/">major climate policies</a>, and more rollbacks were being pursued, according to a New York Times analysis of research from Harvard and Columbia law schools.</p>
<p>Many of these rules had been designed to reduce climate-warming pollution from power plants, cars and trucks. Several <a href="https://eelp.law.harvard.edu/2017/09/bam-methane-waste-prevention-rule/">reduced emissions of methane</a>, a potent greenhouse gas, from oil and gas production. The Trump administration <a href="https://www.reuters.com/article/us-usa-mining-resolution-trump/trump-moves-to-loosen-mining-regulations-approve-projects-as-he-exits-idUSKBN29D1AD?ct=t(RSS_EMAIL_CAMPAIGN)">also moved</a> to <a href="https://www.theguardian.com/environment/ng-interactive/2020/oct/26/revealed-trump-public-lands-oil-drilling">open more land</a> to more drilling, mining and <a href="https://www.npr.org/2019/04/11/712121425/trump-signs-executive-orders-in-push-to-make-it-easier-to-build-oil-and-gas-pipe">pipelines</a>.</p>
<p>Some rollbacks have been challenged in court and the rules then reinstated. Others are still being litigated. Many will require going through government rule-making processes that take years to reverse.</p>
<figure class="align-center ">
<img alt="Michael Regan during Biden's announcement" src="https://images.theconversation.com/files/377713/original/file-20210108-15-33r60b.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/377713/original/file-20210108-15-33r60b.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/377713/original/file-20210108-15-33r60b.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/377713/original/file-20210108-15-33r60b.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/377713/original/file-20210108-15-33r60b.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/377713/original/file-20210108-15-33r60b.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/377713/original/file-20210108-15-33r60b.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Michael Regan will contend with many of the Trump administration’s rollbacks as Biden’s choice to head the EPA.</span>
<span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/news-photo/michael-regan-delivers-remarks-after-being-introduced-as-us-news-photo/1230219513">Alex Edelman/Getty Images</a></span>
</figcaption>
</figure>
<h2>Pressuring other countries to take action</h2>
<p>Biden can quickly bring the U.S. back into the international Paris climate agreement, through which countries worldwide agreed to reduce the greenhouse gas emissions driving global warming. But <a href="https://theconversation.com/how-biden-and-kerry-could-rebuild-americas-global-climate-leadership-150120">reestablishing the nation’s leadership</a> role with the international climate community is a much longer haul.</p>
<p>Former Secretary of State John Kerry will lead this effort as special envoy for climate change, a new Cabinet-level position with a seat on the National Security Council. Other parts of the government can also pressure countries to take action. International development funding can encourage climate-friendly actions, and trade agreements and tariffs can establish rules of conduct.</p>
<figure class="align-center ">
<img alt="Kerry, Stern and Deese walking." src="https://images.theconversation.com/files/377715/original/file-20210108-19-q0yqk.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/377715/original/file-20210108-19-q0yqk.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=435&fit=crop&dpr=1 600w, https://images.theconversation.com/files/377715/original/file-20210108-19-q0yqk.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=435&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/377715/original/file-20210108-19-q0yqk.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=435&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/377715/original/file-20210108-19-q0yqk.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=547&fit=crop&dpr=1 754w, https://images.theconversation.com/files/377715/original/file-20210108-19-q0yqk.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=547&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/377715/original/file-20210108-19-q0yqk.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=547&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Then-Secretary of State John Kerry (right), with climate envoy Todd Stern and Brian Deese while negotiating the Paris climate agreement in 2015. Deese (left) is Biden’s choice to head the National Economic Council.</span>
<span class="attribution"><a class="source" href="https://newsroom.ap.org/home/search?query=779859822657">Mandel Ngan, Pool photo via AP</a></span>
</figcaption>
</figure>
<h2>Cleaning up the power sector</h2>
<p>The Biden-Harris <a href="https://joebiden.com/climate-plan/">climate plan</a> aims to cut greenhouse gas emissions from the power sector to net zero by 2035. </p>
<p>While <a href="https://sepapower.org/utility-transformation-challenge/utility-carbon-reduction-tracker/">62 major utilities</a> in the U.S. have set their own emission reduction goals, most leaders in that sector would argue that requiring net zero emissions by 2035 is too much too fast.</p>
<p>One problem is that states are often more involved in regulating the power sector than the federal government. And, when federal regulations are passed, they are <a href="https://policyintegrity.org/trump-court-roundup">often challenged in court</a>, meaning they can take years to implement.</p>
<p>Reducing greenhouse gases also requires modernizing the electricity transmission grid. The federal government can streamline the permitting process to allow more clean energy, like wind and solar power, onto the grid. Without that intervention, it could take a decade or more to permit a single transmission line.</p>
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<h2>What to do about vehicles, buildings and ag</h2>
<p>The power sector may be the easiest sector to “decarbonize.” The transportation sector is another story. </p>
<p>Transportation is now the nation’s <a href="https://www.wri.org/blog/2019/10/everything-you-need-know-about-fastest-growing-source-global-emissions-transport">leading emitter of carbon dioxide</a>. Decarbonizing it will require a transition away from the internal combustion engine in a relatively short amount of time. </p>
<p>Again, this is a challenge that requires many parts and levels of government working toward the same goal. It will require expanding carbon-free transportation, including more electric vehicles, charging stations, better battery technology and clean energy. That involves regulations and funding for research and development from multiple departments, as well as trade agreements, tax incentives for electric vehicles and a shift in how government agencies buy vehicles. The EPA can facilitate these efforts or hamstring them, as happened when the Trump EPA <a href="https://www.resourcesmag.org/resources-radio/waive-goodbye-history-and-future-california-waiver-emily-wimberger/">revoked California’s ability to set higher emissions standards</a> – something the Biden administration is likely to quickly restore. </p>
<p>The other “hard to decarbonize” sectors – buildings, industry and agriculture – will require sophistication and collaboration among all federal departments and agencies unlike any previous efforts across government.</p>
<h2>A new comprehensive climate bill</h2>
<p>The best way to tackle these sectors would be a comprehensive climate bill that uses some mechanism, like a <a href="https://www.rff.org/publications/issue-briefs/clean-energy-standards">clean energy standard</a>, that sets a cap, or limit, on emissions and tightens it over time. Here, the problem lies more in the politics of the moment than anything else. Biden and his team will have to convince lawmakers from fossil fuel-producing states to work on these efforts. </p>
<p>Democratic control of the Senate raises the chances that Congress could pass comprehensive climate legislation, but that isn’t a given. Until that happens, Biden will have to rely on agencies issuing new rules, which are vulnerable to being revoked by future administrations. It’s a little like playing chess without a queen or rooks. </p>
<p>Years of delays have allowed global warming to progress so far that many of its impacts may soon become irreversible. To meet its ambitious goals, the administration will need everyone, progressives and conservatives, state and local leaders, and the private sector, to work with them.</p>
<p><iframe id="n7hIL" class="tc-infographic-datawrapper" src="https://datawrapper.dwcdn.net/n7hIL/5/" height="400px" width="100%" style="border: none" frameborder="0"></iframe></p><img src="https://counter.theconversation.com/content/152419/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>
Bill Ritter, Jr. is a former Governor of Colorado and is the Director of the Center for the New Energy Economy at Colorado State University. The Center is funded by various foundations.</span></em></p>Former Colorado Gov. Bill Ritter explains what Biden’s “all hands on deck” approach could look like as the new administration takes on five big climate challenges.Bill Ritter Jr., Director, Center for the New Energy Economy, Colorado State UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1507512021-01-06T19:05:45Z2021-01-06T19:05:45ZSolar panel fire season is all year round and it’s getting more intense in Australia<figure><img src="https://images.theconversation.com/files/377143/original/file-20210105-23-1u0olrg.jpg?ixlib=rb-1.1.0&rect=5%2C0%2C1732%2C1054&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">FRNSW</span>, <span class="license">Author provided</span></span></figcaption></figure><p>2020 was a bumper year for solar power in Australia. <a href="https://www.sunwiz.com.au/end-of-year-forecast-for-the-australian-pv-solar-market-2020/">More solar PV systems were installed</a> in the first nine months than in all of any previous year. </p>
<p>Almost <a href="https://www.energycouncil.com.au/media/18275/australian-energy-council-solar-report_q1-2020_final%20.pdf">one in four</a> Australian houses now have rooftop solar panels. But the number of solar panel incidents reported by fire and emergency services has increased too. </p>
<p><a href="https://www.fire.nsw.gov.au/">Fire and Rescue NSW</a> reportedly <a href="https://www.9news.com.au/national/solar-panel-related-fires-increasing-in-nsw/81f9bf6e-db28-4eb5-ab83-446801e0137a">put out 30 blazes</a> sparked by panels in just three months late last year.</p>
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Read more:
<a href="https://theconversation.com/australian-building-codes-dont-expect-houses-to-be-fire-proof-and-thats-by-design-129540">Australian building codes don't expect houses to be fire-proof – and that's by design</a>
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<p>The exponential growth in solar PV and associated problems has attracted <a href="https://www.abc.net.au/radionational/programs/lifematters/the-highs-and-lows-of-our-love-affair-with-solar/11762482">media</a> and political attention. </p>
<p>In 2018, federal Energy Minister Angus Taylor <a href="https://www.solarquotes.com.au/blog/taylor-solar-safety-mb0873/">warned</a> his state counterparts lives were at risk from substandard solar panel installations. An <a href="https://www.anao.gov.au/work/performance-audit/administration-renewable-energy-target">audit</a> of the <a href="http://www.cleanenergyregulator.gov.au/">Clean Energy Regulator</a> by the Australian National Audit Office found there were potentially tens of thousands of badly installed and even unsafe rooftop systems. The regulator had inspected just 1.2% of rooftop installations. </p>
<h2>It’s a nationwide problem</h2>
<p>State and territory regulators are responsible for electrical safety. Only Victoria mandates an inspection of each installed system. </p>
<p>Taylor <a href="https://www.abc.net.au/news/2020-08-24/rooftop-solar-faces-inquiry-over-reports-of-dodgy-practices/12589886">announced an inquiry</a> into the industry last August. </p>
<p>Last October, Fire and Rescue NSW Superintendent Graham Kingland <a href="https://www.fire.nsw.gov.au/incident.php?record=927#:%7E:text=%22Over%20the%20last%20five%20years,you%20can%20prevent%20a%20tragedy%E2%80%9D.">said</a>:</p>
<blockquote>
<p>Over the last five years we have seen solar panel related fires increase five-fold. It is not uncommon to see solar panels cause house and building fires.</p>
</blockquote>
<p>On Christmas day, <a href="https://esa.act.gov.au/fire-rescue">ACT Fire & Rescue</a> attended a fire at a home in Theodore where the solar panels caught alight. Coincidentally, the location was Christmas Street!</p>
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<p>Last month, Energy Safe Victoria <a href="https://esv.vic.gov.au/news/solar-safety-with-servicing/">warned</a> the public to get solar systems serviced.</p>
<p>And <a href="https://www.qfes.qld.gov.au/Pages/default.aspx">Queensland Fire and Emergency Services</a> attended at least <a href="https://www.theaustralian.com.au/business/mining-energy/solar-panel-fires-rise-amid-warnings-over-battery-use/news-story/7dbb44c7c0703028d14aa27cd7435246">16 incidents caused by solar panels</a> in the first half of 2017 and 33 in 2016.</p>
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<iframe width="440" height="260" src="https://www.youtube.com/embed/0lYghXxxXRg?wmode=transparent&start=0" frameborder="0" allowfullscreen=""></iframe>
<figcaption><span class="caption">9 News reports on the fire risks of poorly installed solar panel systems in Queensland.</span></figcaption>
</figure>
<p>Components such as DC isolators and inverters, rather than the actual panels, are the cause of most solar-related fires. A DC isolator is a manually operated switch next to a solar panel array that shuts off DC current between the array and the inverter. It was intended as an extra safety mechanism, but the switches have caused more problems than they have solved – particularly when not installed correctly or when poor-quality components are used. </p>
<h2>Solar is cheaper in Australia but poorly regulated</h2>
<p><a href="https://www.pv-magazine.com/2020/11/20/australian-rooftop-pv-safety-standards-under-fire-in-new-report/">A recent report</a> rated Australia as one of the cheapest per kilowatt for solar PV, but it questioned our safety standards. Most solar systems sold in Australia use DC voltages that can pose a serious fire risk. </p>
<p>Unfortunately, Australia has been slow to adopt safer solar regulations. In contrast, the United States has had <a href="https://safersolar.com.au/#:%7E:text=Some%20solar%20systems%20are%20safer%20than%20others&text=For%20example%2C%20in%20the%20United,since%20as%20early%20as%202014.">safety standards</a> preventing the installation of conventional DC solar systems since as early as 2014. </p>
<p>It’s more difficult for lower-voltage, microinverter-based systems (requiring no DC isolator switch) to catch fire, but it’s not impossible.</p>
<p>An amendment to the DC isolator standard (<a href="https://www.standards.org.au/standards-catalogue/sa-snz/electrotechnology/el-042/as-slash-nzs--5033-colon-2014--amd--2-colon-2018">AS/NZS 5033:2014</a>) to improve product datasheets and ensure isolators can withstand the harsh Australian climate took effect on June 28 2019. By then, over 2 million systems had been installed on Australian rooftops.</p>
<p>Added to issues such as flammable cladding, dodgy electrical cable and other “<a href="https://www.accc.gov.au/consumers/sales-delivery/buying-parallel-imports">grey imports</a>” (products not sourced from approved manufacturers) in the building industry, we are now playing a game of catch-up. </p>
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<em>
<strong>
Read more:
<a href="https://theconversation.com/cladding-fires-expose-gaps-in-building-material-safety-checks-heres-a-solution-111073">Cladding fires expose gaps in building material safety checks. Here's a solution</a>
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<p>Poor-quality solar rooftop components have led to an <a href="https://www.productsafety.gov.au/recalls/browse-all-recalls?search=dc+isolators&f%5B0%5D=field_accc_psa_product_category%3A4798&sort_by=accc_solr_date&items_per_page=25">expanding list of product recalls</a>. The latest Australian Competition and Consumer Commission (ACCC) recall list includes installations managed by industry giants such as Origin and AGL. </p>
<p>One <a href="https://www.productsafety.gov.au/recall/blue-line-solar-pty-ltd-avanco-dc-solar-isolator-switches">notable recall</a> in 2014 reported a risk of “arcing” and “eventual catastrophic failure, resulting in fire”. It listed no fewer than nine traders operating nationally as having used this failed product. The recall noted that the product supplier, Blueline Solar Pty Ltd, was insolvent. </p>
<p>What should consumers do? The ACCC said:</p>
<blockquote>
<p>Owners should immediately shut down the PV system following the standard shutdown procedure.</p>
<p>If a consumer suspects they have one of the affected units, they should have an electrician inspect and replace the DC isolators. </p>
</blockquote>
<p>Solar systems do not fall under the National Construction Code unless an ancillary structure is being created. Most systems are simply fixed with rails to an existing roof. If the code covered rooftop solar, this would require private certification and a compliance check on any system, as is the case overseas. </p>
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<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/australia-has-a-new-national-construction-code-but-its-still-not-good-enough-113729">Australia has a new National Construction Code, but it's still not good enough</a>
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<h2>Know what is on your roof</h2>
<p><a href="https://link.springer.com/chapter/10.1007%2F978-3-030-04293-6_40">Research</a> has shown consumers’ knowledge of solar systems is poor. Many owners have little idea if their system is working properly, or even at all.</p>
<p>And how would a consumer know what kind of DC isolator is on their roof or how to shut down the system in the event of a fire? </p>
<p>Solar panel systems are a growing incident category for firefighters. Yet even among firefighters there is <a href="https://www.firerescue1.com/fire-attack/articles/solar-safety-for-firefighters-the-myths-and-the-facts-ioFp2MGuWg0KgCa5/">some confusion</a> on procedures to deal with a fire on live solar panels. </p>
<figure class="align-center ">
<img alt="Firefighters put out a solar panel fire" src="https://images.theconversation.com/files/377132/original/file-20210105-13-w1h4vr.jpg?ixlib=rb-1.1.0&rect=0%2C0%2C2710%2C1841&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/377132/original/file-20210105-13-w1h4vr.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/377132/original/file-20210105-13-w1h4vr.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/377132/original/file-20210105-13-w1h4vr.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/377132/original/file-20210105-13-w1h4vr.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/377132/original/file-20210105-13-w1h4vr.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/377132/original/file-20210105-13-w1h4vr.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="caption">Even some firefighters aren’t clear about how to deal with fires on live solar panels.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/firefighters-solar-roof-panels-photovoltaic-on-454561861">riopatuca/Shutterstock</a></span>
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<p>Solar panel fires have yet to make it onto a top 10 list of domestic fire causes (statistically, your Christmas tree lights are a greater risk). But the sheer volume of installations and ageing components in uninspected older systems are increasing the risks.</p>
<p>One Aussie inventor has developed a product <a href="http://www.pvstop.com.au/solar-panel-risks/">PVStop</a> — “a spray-on solution to mitigate solar panel risks by reducing DC output to safe levels to offer homeowners and emergency personnel peace of mind”. </p>
<p>The latest <a href="http://www.cleanenergyregulator.gov.au/RET/Scheme-participants-and-industry/Agents-and-installers/Small-scale-Renewable-Energy-Scheme-inspections">update</a> on Clean Energy Regulator inspections completed to June 30 2020 shows a negligible 0.05% decrease in substandard systems. Roughly one in 30 systems (3.1%) have been deemed unsafe and another 17.9% substandard. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/377150/original/file-20210105-23-2dqxse.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Chart showing causes of unsafe and potentially unsafe solar PV installations" src="https://images.theconversation.com/files/377150/original/file-20210105-23-2dqxse.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/377150/original/file-20210105-23-2dqxse.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/377150/original/file-20210105-23-2dqxse.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/377150/original/file-20210105-23-2dqxse.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/377150/original/file-20210105-23-2dqxse.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/377150/original/file-20210105-23-2dqxse.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/377150/original/file-20210105-23-2dqxse.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption"></span>
<span class="attribution"><a class="source" href="http://www.cleanenergyregulator.gov.au/DocumentAssets/Documents/Analysis%20of%20SRES%20Inspection%20Data%20to%20Assess%20Photovoltaic%20System%20Residual%20Systemic%20Electrical%20Safety%20Risks.pdf">The Conversation. Data: Clean Energy Regulator SRES report</a></span>
</figcaption>
</figure>
<p>Without adequate solar PV industry standards, tools, inspection regimes, procedures or training, dangerous scenarios may increasingly put lives at risk. The high uptake of solar is very good news for reducing household electricity bills and carbon emissions, but safety issues undermine these positives.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/making-every-building-count-in-meeting-australias-emission-targets-126930">Making every building count in meeting Australia's emission targets</a>
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</em>
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<hr>
<p>The surge in installations, the introduction of batteries, the ageing of panels and components together with more extreme weather events mean solar panel incidents are likely to continue increasing. </p>
<p>Australia prides itself on being a world leader in household solar but until now we have not fully appreciated the safety risks. Fire authorities would do well to update fire safety guides that omit specific information on solar. And system owners should ensure they understand the risks and shut-down procedures.</p><img src="https://counter.theconversation.com/content/150751/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Dr Timothy O'Leary has received past funding from the Australian Research Council and the State Government of South Australia for research in housing energy performance, energy disclosure and housing lifetime affordability. Dr O' Leary holds an unpaid position as a Program Advisory Group member of the Victorian Government, Residential Efficiency Scorecard and contributes in a non paid advisory role to the National Energy Efficient Buildings Project (NEPP), stakeholder reference group convened by the Australian Department of Environment and Energy.</span></em></p><p class="fine-print"><em><span>David Michael Whaley has previously received funding from various organisations including the Cooperative Research Centre for Low Carbon Living and Government of South Australia.</span></em></p>Weak regulation and a lack of mandatory inspections have increased fire risks for the one in four homes with rooftop PV panels. Here’s what we need to do to be safer.Timothy O'Leary, Lecturer in Construction and Property, The University of MelbourneDavid Michael Whaley, Lecturer, University of South AustraliaLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1487712020-11-02T13:24:25Z2020-11-02T13:24:25ZHow tech firms have tried to stop disinformation and voter intimidation – and come up short<figure><img src="https://images.theconversation.com/files/366799/original/file-20201030-13-dof1wt.jpg?ixlib=rb-1.1.0&rect=0%2C8%2C5559%2C3384&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Facebook and the other social media platform companies are facing a reckoning for their handling of disinformation.</span> <span class="attribution"><a class="source" href="https://newsroom.ap.org/detail/FacebookDisinformation/a535212ff2c341da999eb969a3e74cda/photo">AP Photo/Noah Berger</a></span></figcaption></figure><p>Neither disinformation nor voter intimidation is anything new. But tools developed by leading tech companies including Twitter, Facebook and Google now allow these tactics to <a href="https://www.usatoday.com/story/opinion/2020/10/27/voter-intimidation-surging-2020-protect-minority-voters-column/6043955002/">scale up</a> dramatically.</p>
<p>As a scholar of <a href="https://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=1195469">cybersecurity</a> and <a href="https://www.csmonitor.com/World/Passcode/Passcode-Voices/2016/0729/Opinion-How-to-make-democracy-harder-to-hack">election security</a>, I have <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3548670">argued</a> that these firms must do more to rein in disinformation, digital repression and voter suppression on their platforms, including by treating these issues as a matter of <a href="https://theconversation.com/notpetya-ransomware-attack-shows-corporate-social-responsibility-should-include-cybersecurity-79810">corporate social responsibility</a>. </p>
<p>Earlier this fall, Twitter announced <a href="https://www.nbcnews.com/tech/tech-news/twitter-launches-pre-bunks-get-ahead-voting-misinformation-n1244777?mc_cid=a06a29e8a5&mc_eid=5953720dd6">new measures to tackle disinformation</a>, including false claims about the risks of voting by mail. Facebook has likewise vowed to crack down on disinformation and voter intimidation on its platform, including by removing posts that encourage people to <a href="https://www.npr.org/2020/10/07/921287946/facebook-vows-to-crack-down-on-voter-intimidation-in-election">monitor polling places</a>. </p>
<p>Google has <a href="https://www.washingtonpost.com/technology/2020/10/20/proud-boys-emails-florida/">dropped the Proud Boys domain</a> that Iran allegedly used to send messages to some 25,000 registered Democrats that <a href="https://www.businessinsider.com/google-voter-intimidation-emails-iran-proud-boys-john-ratcliffe-election-2020-10">threatened them</a> if they did not change parties and vote for Trump. </p>
<p>But such <a href="https://theconversation.com/companies-self-regulation-doesnt-have-to-be-bad-for-the-public-117565">self-regulation</a>, while helpful, can go only so far. The time has come for the U.S. to learn from the experiences of other nations and hold tech firms accountable for ensuring that their platforms are not misused to undermine the country’s democratic foundations.</p>
<h2>Voter intimidation</h2>
<p>On Oct. 20, registered Democrats in Florida, a crucial swing state, and Alaska began receiving emails purportedly from the far-right group Proud Boys. The messages were <a href="https://www.businessinsider.com/google-voter-intimidation-emails-iran-proud-boys-john-ratcliffe-election-2020-10">filled with threats</a> up to and including violent reprisals if the receiver did not vote for President Trump and change their party affiliation to Republican. </p>
<p>Less than 24 hours later, on Oct. 21, U.S. Director of National Intelligence John Ratcliffe and FBI Director Christopher Wray gave a briefing in which they <a href="https://www.cyberscoop.com/ratcliffe-fbi-iran-proud-boys-voting-email/">publicly attributed</a> this attempt at voter intimidation to Iran. This verdict was later <a href="https://www.businessinsider.com/google-voter-intimidation-emails-iran-proud-boys-john-ratcliffe-election-2020-10">corroborated</a> by Google, which has also claimed that more than 90% of these messages were blocked by spam filters. </p>
<p>The <a href="https://www.washingtonpost.com/technology/2020/10/20/proud-boys-emails-florida/">rapid timing</a> of the attribution was reportedly the result of the foreign nature of the threat and the fact that it was coming so close to Election Day. But it is important to note that this is just the latest example of such voter intimidation. Other recent incidents include a <a href="https://www.usatoday.com/story/opinion/2020/10/27/voter-intimidation-surging-2020-protect-minority-voters-column/6043955002/">robo-call scheme</a> targeting largely African American cities such as Detroit and Cleveland. </p>
<p>It remains unclear how many of these messages actually reached voters and how in turn these threats changed voter behavior. There is some evidence that <a href="https://nymag.com/intelligencer/2020/10/is-republican-voter-suppression-starting-to-backfire.html">such tactics can backfire</a> and lead to higher turnout rates in the targeted population.</p>
<h2>Disinformation on social media</h2>
<p>Effective disinformation campaigns typically have <a href="https://www.nbcnews.com/business/consumer/factory-lies-russia-s-disinformation-playbook-exposed-n910316">three components</a>:
</p><ul>
<li>A state-sponsored news outlet to originate the fabrication
</li><li>Alternative media sources willing to spread the disinformation without adequately checking the underlying facts
</li><li>Witting or unwitting “agents of influence”: that is, people to advance the story in other outlets
</li></ul><p></p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/366798/original/file-20201030-18-5oke3a.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Pages from the U.S. State Department's Global Engagement Center report released on Aug. 5, 2020" src="https://images.theconversation.com/files/366798/original/file-20201030-18-5oke3a.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/366798/original/file-20201030-18-5oke3a.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/366798/original/file-20201030-18-5oke3a.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/366798/original/file-20201030-18-5oke3a.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/366798/original/file-20201030-18-5oke3a.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/366798/original/file-20201030-18-5oke3a.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/366798/original/file-20201030-18-5oke3a.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Russia is using a well-developed online operation to spread disinformation, according to the U.S. State Department.</span>
<span class="attribution"><a class="source" href="https://newsroom.ap.org/detail/RussianDisinformation/32b868d4d7464a819b55315107e7cce3/photo">AP Photo/Jon Elswick</a></span>
</figcaption>
</figure>
<p>The advent of cyberspace has put the disinformation process into overdrive, both speeding the viral spread of stories across national boundaries and platforms with ease and causing a proliferation in the types of traditional and social media willing to run with fake stories.</p>
<p>To date, the major social media firms have taken a largely piecemeal and fractured approach to managing this complex issue. Twitter announced a <a href="https://www.nytimes.com/2019/10/30/technology/twitter-political-ads-ban.html">ban on political ads</a> during the 2020 U.S. election season, in part over concerns about enabling the spread of misinformation. Facebook opted for a more <a href="https://www.npr.org/2020/10/27/928120956/facebook-stops-new-political-ads-to-try-to-limit-misinformation">limited ban on new political ads</a> one week before the election. </p>
<p>The U.S. has no equivalent of the <a href="https://www.cnbc.com/2017/05/06/frances-election-laws-mean-near-silence-on-massive-campaign-hack.html">French law</a> barring any influencing speech on the day before an election.</p>
<h2>Effects and constraints</h2>
<p>The impacts of these efforts have been muted, in part due to the prevalence of <a href="https://doi.org/10.1038/s41467-018-06930-7">social bots</a> that spread low-credibility information virally across these platforms. No comprehensive data exists on the total amount of disinformation or how it is affecting users. </p>
<p>Some recent studies do shed light, though. For example, one <a href="https://www.doi.org/10.1126/science.aau2706">2019 study</a> found that a very small number of Twitter users accounted for the vast majority of exposure to disinformation. </p>
<p>Tech platforms are constrained from doing more by several forces. These include fear of perceived <a href="https://www.politico.com/news/2020/09/26/facebook-conservatives-2020-421146">political bias</a> and a strong belief among many, including Mark Zuckerberg, in a robust interpretation of <a href="https://apnews.com/article/c3291531831d19ff0eaf8d91aa1415a0">free speech</a>. A related concern of the platform companies is that the more they’re perceived as media gatekeepers, the more likely they will be to face new regulation. </p>
<p>The platform companies are also limited by the technologies and procedures they use to combat disinformation and voter intimidation. For example, Facebook staff reportedly <a href="https://www.theguardian.com/technology/2020/oct/30/facebook-leak-reveals-policies-restricting-new-york-post-biden-story">had to manually intervene</a> to limit the spread of a New York Post article about Hunter Biden’s laptop computer that <a href="https://www.businessinsider.com/new-york-post-hunter-joe-biden-giuliani-red-flags-disinformation-2020-10">could be part of a disinformation campaign</a>. This highlights how the platform companies are playing catch-up in countering disinformation and need to devote more resources to the effort.</p>
<h2>Regulatory options</h2>
<p>There is a growing bipartisan consensus that more must be done to rein in social media excesses and to better manage the dual issues of voter intimidation and disinformation. In recent weeks, we have already seen the U.S. Department of Justice open a new <a href="https://www.latimes.com/business/story/2020-10-25/google-lawsuit-antitrust">antitrust case</a> against Google, which, although it is unrelated to disinformation, can be understood as part of a larger campaign to regulate these behemoths. </p>
<p>[<em>Deep knowledge, daily.</em> <a href="https://theconversation.com/us/newsletters/the-daily-3?utm_source=TCUS&utm_medium=inline-link&utm_campaign=newsletter-text&utm_content=deepknowledge">Sign up for The Conversation’s newsletter</a>.]</p>
<p>Another tool at the U.S. government’s disposal is <a href="https://www.technologyreview.com/2020/09/09/1008223/section-230-internet-law-policy-social-media-misinformation/">revising</a>, or even revoking, <a href="https://theconversation.com/the-law-that-made-facebook-what-it-is-today-93931">Section 230</a> of the 1990s-era Communications Decency Act. This law was designed to protect tech firms as they developed from liability for the content that users post to their sites. Many, including former Vice President Joe Biden, <a href="https://www.technologyreview.com/2020/09/09/1008223/section-230-internet-law-policy-social-media-misinformation/">argue that it has outlived its usefulness</a>.</p>
<p>Another option to consider is learning from the EU’s approach. In 2018, the European Commission was successful in getting tech firms to adopt the “Code of Practice on Disinformation,” which committed these companies to boost “transparency around political and issue-based advertising.” However, these measures to fight disinformation, and the related EU’s Rapid Alert System, have so far not been able to stem the tide of these threats.</p>
<p>Instead, there are growing calls to pass a host of reforms to ensure that the platforms publicize accurate information, protect sources of accurate information through enhanced cybersecurity requirements and monitor disinformation more effectively. Tech firms in particular could be doing more to make it easier to report disinformation, contact users who have interacted with such content with a warning and take down false information about voting, as Facebook and Twitter have begun to do. </p>
<p>Such steps are just a beginning. Everyone has a role in making democracy harder to hack, but the tech platforms that have done so much to contribute to this problem have an outsized duty to address it.</p><img src="https://counter.theconversation.com/content/148771/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Scott Shackelford is a principal investigator on grants from the Hewlett Foundation, Indiana Economic Development Corporation, and the Microsoft Corporation supporting both the Ostrom Workshop Program on Cybersecurity and Internet Governance and the Indiana University Cybersecurity Clinic.</span></em></p>The major social media firms have taken a largely piecemeal and fractured approach to managing the problem.Scott Shackelford, Associate Professor of Business Law and Ethics; Executive Director, Ostrom Workshop; Cybersecurity Program Chair, IU-Bloomington, Indiana UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1471572020-10-01T12:24:16Z2020-10-01T12:24:16ZThe 737 MAX is ready to fly again, but plane certification still needs to be fixed – here’s how<figure><img src="https://images.theconversation.com/files/360638/original/file-20200929-22-12u1blg.jpg?ixlib=rb-1.1.0&rect=0%2C0%2C3594%2C2392&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">The Boeing 737 MAX is expected to take to the skies again following a review of the MCAS system which was responsible for two crashes in 2019.</span> <span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/news-photo/boeing-737-max-jet-comes-in-for-a-landing-following-a-news-photo/1223465937">Jason Redmond / Getty Images</a></span></figcaption></figure><p><em>After being grounded in March 2019 following two fatal crashes, the Boeing 737 MAX is expected to be certified by the Federal Aviation Administration to fly again later this fall. Investigations pointed to a problem with the aircraft’s Maneuvering Characteristics Augmentation System, or MCAS. This <a href="https://theconversation.com/automated-control-system-caused-ethiopia-crash-flight-data-suggests-113688">automated control system</a> was designed to stabilize the plane and compensate for the more powerful engines used on the 737 MAX compared to previous versions.</em> </p>
<p><em>The <a href="https://www.wsj.com/articles/internal-faa-review-saw-high-risk-of-737-max-crashes-11576069202?mod=searchresults&page=2&pos=2">FAA’s certification</a> of the plane has <a href="https://komonews.com/news/nation-world/lawmakers-upset-over-boeing-max-approval-propose-new-rules">come under fire</a> because manufacturers can speed up the process by having only enhancements to a preapproved aircraft reviewed and certified. Ronnie R. Gipson Jr., an expert in aviation law and visiting professor at the University of Memphis Cecil C. Humphreys School of Law, whose work was cited in the House Committee on transportation and infrastructure’s report on this issue, explains what happened and ways to improve these safety regulations.</em></p>
<figure>
<iframe width="440" height="260" src="https://www.youtube.com/embed/N_7s01_gDk4?wmode=transparent&start=0" frameborder="0" allowfullscreen=""></iframe>
</figure>
<h2>What are the criticisms of the FAA certification process stemming from the 737 MAX crashes?</h2>
<p>The process for the certification of a transport category aircraft is a very involved and costly process. The aircraft manufacturers that go down this path have to be committed to spending hundreds of millions of dollars. It starts with an initial design, and the aircraft that is produced is then subjected to dynamic flight testing for compliance with all of the Federal Aviation Administration regulations. Once the airplane satisfies all those requirements, the aircraft is given an original type certificate by the FAA. The aircraft manufacturer is then allowed to produce aircraft and sell them.</p>
<p>As time goes on, technology advances and the manufacturer identifies ways to improve on that original design. So the manufacturer goes back to the FAA and says, “We want to take this initial design that we have and amend it because we made some changes.” At this point, the aircraft manufacturer files what’s called an amended type certificate application for a derivative aircraft from the baseline aircraft. For example, the original type certificate for the first 737 design was submitted to the FAA in 1967. That original design has had multiple derivative aircraft approved by the FAA, with the 737 MAX being the 13th version. </p>
<figure class="align-center ">
<img alt="a timeline showing the certification approval dates and models of the original 737 design and its derivatives." src="https://images.theconversation.com/files/360883/original/file-20200930-24-h3w89e.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/360883/original/file-20200930-24-h3w89e.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=191&fit=crop&dpr=1 600w, https://images.theconversation.com/files/360883/original/file-20200930-24-h3w89e.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=191&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/360883/original/file-20200930-24-h3w89e.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=191&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/360883/original/file-20200930-24-h3w89e.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=240&fit=crop&dpr=1 754w, https://images.theconversation.com/files/360883/original/file-20200930-24-h3w89e.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=240&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/360883/original/file-20200930-24-h3w89e.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=240&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Certification timeline of the Boeing 737 series of aircraft.</span>
<span class="attribution"><a class="source" href="https://www.oig.dot.gov/sites/default/files/FAA%20Oversight%20of%20Boeing%20737%20MAX%20Certification%20Timeline%20Final%20Report.pdf">US Department of Transportation, Office of Inspector General</a></span>
</figcaption>
</figure>
<p>In the amended type certification process, the regulatory authority focuses only on what’s changed. Another thing to keep in mind is that the FAA just doesn’t have the manpower to oversee all the tests that go with an amended type certificate approval. Therefore, the FAA reviews most of the critical changes related to safety and delegates the noncritical changes for review to the manufacturers – in this case to <a href="https://www.faa.gov/news/media/attachments/Final_JATR_Submittal_to_FAA_Oct_2019.pdf">a body in Boeing</a> which consists essentially of Boeing employees. </p>
<p>And that’s what happened here. MCAS wasn’t necessarily presented as a change in the design impacting control in flight. As a result, the MCAS was not a priority for the FAA in the amended certificate approval process. The MCAS capabilities and what it was supposed to control <a href="https://www.oig.dot.gov/sites/default/files/FAA%20Oversight%20of%20Boeing%20737%20MAX%20Certification%20Timeline%20Final%20Report.pdf">were never fully revealed</a>. That’s really where the problem started. It was with the narrative that was being presented to the FAA, and <a href="https://www.wsj.com/articles/faas-handling-of-boeing-737-max-issues-faulted-in-transportation-department-review-11593619195?mod=searchresults&page=2&pos=12">the lack of oversight in the amended type certificate process</a>. The result was that the MCAS system that was initially presented to the FAA at the beginning of the amended type certificate process was not the same system that ended up in the aircraft.</p>
<figure class="align-center ">
<img alt="A diagram showing how the MCAS system forces the nose of the aircraft downwards." src="https://images.theconversation.com/files/360881/original/file-20200930-16-11w9416.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/360881/original/file-20200930-16-11w9416.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=341&fit=crop&dpr=1 600w, https://images.theconversation.com/files/360881/original/file-20200930-16-11w9416.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=341&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/360881/original/file-20200930-16-11w9416.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=341&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/360881/original/file-20200930-16-11w9416.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=428&fit=crop&dpr=1 754w, https://images.theconversation.com/files/360881/original/file-20200930-16-11w9416.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=428&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/360881/original/file-20200930-16-11w9416.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=428&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">A diagram showing how the MCAS system forces the nose of the aircraft downwards.</span>
<span class="attribution"><a class="source" href="https://www.oig.dot.gov/sites/default/files/FAA%20Oversight%20of%20Boeing%20737%20MAX%20Certification%20Timeline%20Final%20Report.pdf">US Department of Transportation, Office of Inspector General</a></span>
</figcaption>
</figure>
<h2>How will the recent recertification for the 737 MAX ensure that the model is now safe?</h2>
<p>The FAA has had to backtrack and give the MCAS system the intense level of scrutiny that it deserved. The FAA has required the manufacturer to go back and make significant adjustments to the software, in addition to changes to the operator’s manual, which is what the pilots would see.</p>
<h2>How can the certification process be improved?</h2>
<p>I see two paths to take. First, for a transport category aircraft, regulations are changed so that the manufacturer can receive amended type certificates for only 20 years after the original type certificate has been issued by the FAA.</p>
<p>Here’s how that would work: An aircraft manufacturer designs an aircraft for certification in the transport category and applies for the original type certificate in 2020. Once the original type certification is awarded in, say, 2025, then the manufacturer should have 20 years. That means that the manufacturer would have until the year 2045 to seek an amendment to that original type certificate. Beginning in 2046, if the aircraft manufacturer wants to make subsequent design changes, they have to start over and get a new original type certificate.</p>
<p>The second component to resolving this problem would be to step in and review what areas the FAA can delegate oversight authority for system changes in an amended aircraft certification application review.</p>
<h2>What are the obstacles to making these changes?</h2>
<p>One would be money. The FAA has a budget, and these are very costly measures because the FAA will need more engineers and administrators. And for that to happen, Congress has to be prepared to spend the money to make that happen by increasing the FAA’s budget.</p>
<p>There’s also going to be a cost to the industry. Implementing the proposal of a 20-year cap on the validity of that original type certificate is going to impose a greater financial cost on the aircraft manufacturers of transport category aircraft. They’re not going to have as much time to get a return on their investment for the aircraft that they produce. So the aircraft are going to end up costing more, which means the airlines are going to end up paying more for those planes. And that cost is going to trickle down to the flying public in those seats.</p><img src="https://counter.theconversation.com/content/147157/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Ronnie R. Gipson Jr. provides policy advice to the Experimental Aircraft Association as a member of this organization's Legal Advisory Council. </span></em></p>The Boeing 737 MAX, which has been grounded since 2019 following two fatal crashes, is expected to be cleared to fly again. An aviation law expert proposes a way to improve the certification process.Ronnie R. Gipson Jr., Visiting Assistant Professor of Law, University of MemphisLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1443792020-09-14T15:05:43Z2020-09-14T15:05:43ZHow Nigeria’s new competition law will benefit the economy - and what to watch for<figure><img src="https://images.theconversation.com/files/357454/original/file-20200910-24-xtd4iu.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">An unregulated economy leaves the economically disadvantaged at the mercy of the rich and powerful </span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-illustration/judges-gavel-block-against-flag-nigeria-1344673268">Novikov Aleksey/Shutterstock </a></span></figcaption></figure><p>Competition laws protect consumers and create <a href="https://www.academia.edu/8822080/The_Need_and_the_Challenges_to_the_Establishment_of_a_Competition_Law_Regime_in_Nigeria">confidence</a> in an economy. It’s a signal to investors and entrepreneurs that a market is fair and open. And the reward for countries that regulate competition is that on average they <a href="https://pdfs.semanticscholar.org/b5a0/f7df84ba435d90e5565225ae3db00e93c387.pdf">produce more</a> value per capita than others.</p>
<p>In Nigeria the competition law regime has been inadequate compared with its economy’s size and complexity. It hasn’t had a comprehensive law addressing anti-competitive trade practices like monopoly, price regulation and abuse of dominance.</p>
<p>The government previously had a monopoly over certain key sectors of the economy, such as telecommunications and electric power. After these were largely privatised, anti-competitive activities remained evident. These raised entry barriers, limited innovation and reduced quality in the market.</p>
<p>After <a href="https://pdfs.semanticscholar.org/2b89/5cf06379dfec95e8447e93e3b1b34eb02867.pdf">earlier unsuccessful attempts</a>, the Nigerian government has now enacted a national competition law, <a href="http://fccpc.gov.ng/guidelines/documents/">the Federal Competition and Consumer Protection Act 2018</a>. Our <a href="https://www.tandfonline.com/doi/full/10.1080/03050718.2020.1770617?scroll=top&needAccess=true">research</a> looks at how effective this is likely to be in creating a fair and efficient market that benefits Nigerian businesses and consumers alike. </p>
<h2>A few dominant players</h2>
<p>Lack of competition regulation created outright dominance of a few players in some industries.</p>
<p>In television, for example, DStv Nigeria was able to control pricing mechanisms. <a href="https://medium.com/@ayokunleojelade/competition-law-and-the-control-of-monopoly-in-nigeria-853f6d57886b">Between 2009 and 2017</a>, prices increased eight times. </p>
<p>A major cement producer, <a href="https://www.dangotecement.com/">Dangote Cement</a>, is said to have <a href="https://medium.com/@ayokunleojelade/competition-law-and-the-control-of-monopoly-in-nigeria-853f6d57886b">forced the market cement price</a> up in 2017. </p>
<p>Similarly in telecommunications, MTN has been accused of <a href="https://www.bloomberg.com/news/articles/2019-10-22/nigeria-mulls-action-to-boost-competition-in-telecoms-industry">undermining competition.</a>.</p>
<p>President Muhammadu Buhari <a href="http://fccpc.gov.ng/news-events/releases/2019/02/06/federal-competition-and-consumer-protection-bill/">assented</a> to the Federal Competition and Consumer Protection Act in February 2019. It established the <a href="http://fccpc.gov.ng/">Federal Competition and Consumer Protection Commission</a>, which oversees consumer protection and competition issues in all entities in Nigeria. These include commercial and government bodies or agencies. </p>
<h2>Powers and potential problems</h2>
<p>Competition exists when no single buyer or seller can control the price in the market. This occurs when there are enough agents active in the market. New agents can enter the market if they want to and price is thus <a href="http://cpparesearch.org/nu-en-pl/competition-policy-nigerian-commercial-governance/">determined by the market</a> as a whole. </p>
<p>The <a href="http://fccpc.gov.ng/guidelines/documents/">Act</a> provides rules to minimise market distortions across all sectors. It also ensures that fair play is respected. It prohibits unfair business practices that are likely to reduce competition and lead to higher prices, reduced quality or levels of service, or less innovation. </p>
<p>But there are some issues that could affect the new act’s efficiency. One is the domination of the Act over sector specific competition legislation. The advantage is that it brings a uniform perspective and jurisprudence to competition issues in Nigeria. On the other hand, some competition issues are sector based. This is why various government agencies have standards and laws for regulating competition in their specific sectors. </p>
<p><a href="https://www.tandfonline.com/doi/abs/10.1080/03050718.2020.1770617?af=R&journalCode=rclb20">For example</a> the <a href="https://nerc.gov.ng/">Nigerian Electricity Regulatory Commission</a> regulates the electricity sector while the <a href="https://www.ncc.gov.ng/">Nigerian Communications Commission</a> deals with the telecommunication sector. The <a href="https://sec.gov.ng/">Securities and Exchange Commission</a> regulates the capital market and the <a href="https://www.cbn.gov.ng/">Central Bank of Nigeria</a> oversees banking. The domination of the Act over sector specific legislation has the tendency to create an overlap and interfere with the roles and functions of these agencies.</p>
<p>To guard against this power tussle, the Act allows for negotiation of agreements with sector specific regulators. It’s also possible to harmonise regulations to resolve any inconsistencies in enforcement.</p>
<p>The <a href="http://fccpc.gov.ng/">Federal Competition and Consumer Protection Commission</a> was set up to administer and enforce the Act. It can also conduct quality tests on consumer goods as it deems necessary. It can compel makers and suppliers to certify that they have met all standards for goods and services, and warn of any health hazards. These powers are similar to those of the Standards Organisation of Nigeria and the National Agency for Food and Drug Administration and Control. There is an overlap of function and authority, so all these agencies will have to work together. </p>
<p>Another issue is funding of the new regulatory regime. Rather than depending exclusively on budgetary allocation, a better way of funding could have been through a combination of different sources such as general revenues, fees or fines. This would <a href="https://www.tandfonline.com/doi/abs/10.1080/03050718.2020.1770617?af=R&journalCode=rclb20">make it more difficult</a> for any single source of funding to dominate the budget and influence the Commission’s activities.</p>
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Read more:
<a href="https://theconversation.com/how-a-lack-of-competition-in-south-africas-private-health-sector-hurts-consumers-125380">How a lack of competition in South Africa's private health sector hurts consumers</a>
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<p>The new Act is applicable to certain conduct outside Nigeria. This could bring up questions about whose laws apply. To clear up any ambiguity, Nigeria should publish the procedure for applying its competition law internationally.</p>
<p>In addition, the powers of the president of Nigeria to regulate prices are at variance with the power of the Price Control Board to fix prices of commodities as provided in the Price Control Act. </p>
<p>The new competition law has given a lot of powers to the new, untested Commission. It will have to be staffed by professionals who are knowledgeable in antitrust laws, economics and intellectual property and representatives of the various sectors of production.</p>
<p>The importance of the legal framework for competition regulation in Nigeria cannot be over emphasised. An unregulated economy leaves the economically disadvantaged at the mercy of the rich and powerful. </p>
<p>That is not only dangerous to the economy but also dangerous to democracy. This is the case in Nigeria today as the nation is sliding into a two-class society: <a href="https://www.kitsapdailynews.com/letters/the-dangers-of-unregulated-laissez-faire-capitalism/">rich wealth hoarders and impoverished workers</a>.</p><img src="https://counter.theconversation.com/content/144379/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Oluchukwu Precious Obioma does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Lack of competition regulation created outright dominance of a few players in some industries.Oluchukwu Precious Obioma, PhD candidate, Department of Commercial and Corporate Law, Faculty of Law, University of NigeriaLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1387032020-06-10T12:17:08Z2020-06-10T12:17:08ZWhy some nursing homes are better than others at protecting residents and staff from COVID-19<figure><img src="https://images.theconversation.com/files/340618/original/file-20200609-21191-1k6d3gy.jpg?ixlib=rb-1.1.0&rect=116%2C85%2C2002%2C1438&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Life Care Center in Washington state was at the center of the U.S. outbreak back in early March. </span> <span class="attribution"><span class="source">AP Photo/Ted S. Warren</span>, <a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></span></figcaption></figure><p>The coronavirus pandemic <a href="https://www.theguardian.com/world/2020/may/16/across-the-world-figures-reveal-horrific-covid-19-toll-of-care-home-deaths">has posed a serious threat</a> to the U.S. long-term care industry. A <a href="https://www.nytimes.com/interactive/2020/05/09/us/coronavirus-cases-nursing-homes-us.html">third of all deaths</a> have been nursing home residents or workers – in some states it’s more than half. </p>
<p>Yet some long-term care facilities have managed to keep the virus at bay. For example, <a href="https://www.latimes.com/california/story/2020-05-10/coronavirus-california-veterans-safe-homes">veterans’ homes in California</a> have seen only a handful of cases among roughly 2,100 residents. And preliminary results of our research on COVID-19 cases and deaths in nursing homes also support the idea that some homes are doing better than others at protecting clients and staff from COVID-19. </p>
<p>Why might this be?</p>
<p>As <a href="https://scholar.google.com/citations?user=07GtNFsAAAAJ&hl=en&oi=ao">scholars</a> of <a href="https://scholar.google.com/citations?user=uNjxGccAAAAJ&hl=en&oi=ao">public</a> <a href="https://scholar.google.com/citations?user=aH0e0H4AAAAJ&hl=en&oi=ao">management</a>, we have found that three factors likely play the biggest role in determining how well a nursing home responds to a disease outbreak: whether it operates for profit, the degree of government regulation and the quality of management.</p>
<h2>Profit versus quality care</h2>
<p>More than 15,000 nursing homes currently operate in the U.S. Most of them <a href="https://doi.org/10.1093/jopart/mux003">are for-profit facilities</a> backed by private investors, but a small share are operated by nonprofits or government. </p>
<p>For-profit companies selling the same product or service typically perform optimally in <a href="https://www.investopedia.com/terms/p/perfectcompetition.asp">what’s known as a perfect market</a> in which there’s plenty of competition and consumers have comprehensive information. More importantly, consumers are able to act on the information.</p>
<p>The nursing home industry, however, is <a href="https://doi.org/10.1111/j.1540-6210.2008.00906.x">far from a perfect market</a>. Residents – who require constant assistance due to serious physical and cognitive limitations – are often unable to differentiate between good and bad care, advocate for themselves or choose a better facility. Their care is often arranged and paid by others. </p>
<p>As a result, for-profit homes, which are <a href="https://doi.org/10.1097/01.MLR.0000100586.33970.58">motivated to keep costs low and profits high</a>, tend to be understaffed and, on average, <a href="https://doi.org/10.2190/EBCN-WECV-C0NT-676R">provide lower-quality care</a> compared with public and nonprofit homes. </p>
<p>In contrast, nonprofit and public homes <a href="https://doi.org/10.1002/pam.20327">tend to put higher emphasis on patient-centered care</a> and reinvest their profits into better physical spaces, equipment and responsiveness to clients’ needs. </p>
<p>The numbers back this up. Our ongoing research shows that government inspection of for-profit homes found nine violations in an average regulatory inspection cycle, compared with 6.4 at nonprofit homes and 6.8 at government homes. These trends have largely remained constant during the past <a href="https://doi.org/10.1111/j.1540-6210.2008.00906.x">two decades</a>. </p>
<p>As we examine the data on COVID-19 cases in nursing homes reported by states in real time and link them to the federal data on regulatory violations, we are observing more COVID-19 cases per capita in for-profit than nonprofit or public homes. So far, we’ve looked at homes in Illinois, Nevada, Colorado, South Carolina, Oklahoma and Oregon.</p>
<p>While it is too early to draw firm conclusions, it appears likely that fewer regulatory violations will correlate with success in managing the outbreak.</p>
<h2>Government regulation is critical</h2>
<p>Federal and state government regulation aimed at protecting residents is another critical factor that influences nursing homes’ ability to combat infection. </p>
<p>All nursing homes that accept Medicare or Medicaid must comply with federal regulations, while states are able to set their own rules for all facilities in addition to the federal minimums. A closer look at the variation among states offers strong evidence that more stringent regulation leads to better care quality. </p>
<p>That is a key finding of <a href="http://dx.doi.org/10.2139/ssrn.3604523">our recent study</a> on a voluntary federal program that provides <a href="https://help.checkr.com/hc/en-us/articles/360001910267-What-s-the-role-of-fingerprinting-or-biometrics-in-background-checks-">biometric</a> criminal background checks of front-line care workers such as nurses and health care aides. About half of U.S. states have signed on to the <a href="https://oig.hhs.gov/oei/reports/oei-07-16-00160.asp">National Background Check Program</a>. Nursing homes in those states have fewer deficiencies and higher 5-star ratings. </p>
<p>Staffing requirements in nursing homes are regulated too. <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3604822">We looked at the impact</a> of having more high-skilled nurses on the quality of care in counties hit hard by Hurricane Katrina in 2005. Facilities with a higher share of registered nurses on staff experienced little to no impact on <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3604822">residents’ health outcomes, such as mobility or personal hygiene, as well as on the number of regulatory violations</a>, while most that witnessed significant evacuations saw a large increase in violations and deteriorating health. </p>
<p>The federal government <a href="https://theconsumervoice.org/uploads/files/issues/Federal-Law-Regulations-Final.pdf">sets a minimum requirement</a> of one registered nurse on staff at least eight hours a day. States are allowed to set their own higher standards – yet even these <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4833431/pdf/hsi-9-2016-013.pdf">are considered insufficient</a> by experts. </p>
<p>One key problem is that many state regulations emphasize staffing levels, rather than staffing mix, which means there is little incentive for homes to hire more skilled and expensive personnel. While federal rules <a href="https://www.cms.gov/newsroom/press-releases/cms-finalizes-improvements-care-safety-and-consumer-protections-long-term-care-facility-residents">issued in 2016</a> would have strengthened staffing requirements, including one that required homes to have an infection specialist on staff, they have yet to take effect, and the Trump administration <a href="https://www.nytimes.com/2020/03/14/business/trump-administration-nursing-homes.html">has taken steps to weaken them</a>. </p>
<h2>Better management</h2>
<p>Our research also suggests that management plays a critical role in determining the level of care quality – and ultimately a facility’s ability to withstand COVID-19. Specifically, we have identified several key factors that make a meaningful difference and are certainly worth considering by those looking for a home for their loved one.</p>
<p>For example, nursing home administrators who are more innovative and constantly <a href="https://doi.org/10.1007/s10916-014-0022-4">looking for new ideas</a> <a href="https://doi.org/10.1093/jopart/mux003">tend to run better homes</a>, <a href="https://spaef.org/article.php?id=564">keep costs lower</a> and address organizational flaws. In addition, homes with managers who have been around for longer periods of time <a href="http://www.doi.org/10.1177/0095399719874755">usually deliver better quality of care</a> because this makes it easier to buffer external threats – such as a disease outbreak. </p>
<p>We’ve also found that homes that engage residents and their families and apply their feedback in decision-making <a href="https://doi.org/10.1177/0275074019854172">boast higher ratings</a> and fewer health violations. </p>
<h2>Understanding the pitfalls</h2>
<p>Billionaire investor and philanthropist Warren Buffet is <a href="https://www.forbes.com/sites/zackfriedman/2018/10/04/warren-buffett-best-quotes/#f85d0bc42616">credited with saying</a> that it is only when the tide goes out that you discover who has been swimming naked.</p>
<p>COVID-19 seems to be having this kind of effect on nursing homes, exposing which ones were in a better position to handle a pandemic. And that’s why it’s essential for more states that are <a href="https://www.aarp.org/caregiving/health/info-2020/coronavirus-nursing-home-cases-deaths.html">not publicly sharing their COVID-19 cases or deaths in nursing homes</a> – such as Alaska, Hawaii and Idaho – to begin doing so.</p>
<p>This will allow more research to be done and ensure that the U.S. nursing home industry is adequately prepared for the next pandemic when it inevitably comes. </p>
<p>[<em>Get facts about coronavirus and the latest research.</em> <a href="https://theconversation.com/us/newsletters?utm_source=TCUS&utm_medium=inline-link&utm_campaign=newsletter-text&utm_content=upper-coronavirus-facts">Sign up for The Conversation’s newsletter.</a>]</p><img src="https://counter.theconversation.com/content/138703/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>The authors do not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.</span></em></p>While nursing homes have accounted for more than half of COVID-19 deaths in some states, they’ve barely been a factor in others. Three experts explain why.Anna Amirkhanyan, Associate Professor of Public Administration and Policy, American University School of Public AffairsAustin McCrea, Ph.D. Student, American UniversityKenneth J Meier, Distinguished Scholar in Residence Department of Public Administration and Policy, American UniversityLicensed as Creative Commons – attribution, no derivatives.