Have International Sanctions Impacted Iran’s Environment?
Abstract
:1. Introduction
2. Research Objective and Scope
- This study does not examine if economic sanctions are effective in reaching their short-term and long-term design objectives. The discussion on the effectiveness of sanctions in altering Iran’s behavior in comparison with alternatives such as war and diplomacy is not the subject of this study.
- This study does not argue if economic sanctions against Iran must be lifted, continued, or tightened based on their environmental impacts. Such an argument requires a more comprehensive assessment of sanctions and is outside of the scope of this study. Impacts on the environment are among the several categories of the sanctions’ impacts. Making a judgement about the overall effectiveness of sanctions and their collateral damages must rely on simultaneous consideration of the impacts of sanctions on different sectors and their trade-offs.
- This study does not seek to determine which one of the parties to the sanction, i.e., the sanctioning states—sanctioner(s)—or the sanctioned state—sanctionee—is more liable for the environmental damages. Rather it argues that environmental damages have been unavoidable based on the current economic sanction practices and mechanisms.
- This study does not investigate the human rights implications of the environmental impacts of economic sanctions while acknowledging that human rights and the environment are interlinked and noting the fact that enjoying human rights without access to a safe, clean, and healthy environment is impossible [46,47].
- Iran’s environmental problems, reviewed in this study, have not arisen overnight, but after decades of unsustainable management based on short-sighted development policies [31,48]. Regardless of sanctions, Iran would have had major environmental problems today even in the absence of sanctions under its current environmental governance schemes.
- Economic sanctions have accelerated environmental degradation but must not be recognized as the main driver of the country’s short-sighted development policies, lack of determination to address its environmental problems, and prioritization of ideological objectives over sustainable development. Accordingly, the findings of this study must not be used for apologetic interpretations of the wrong decisions made by the Iranian decision makers and their environmental outcomes over the last decades.
- Iran sanctions have been evolving in terms of strength and scope. The impacts of sanctions accumulate and normally appear in the long run. The sanctioners and sanctionee, i.e., Iran, have been continuously revising their strategies for minimizing and maximizing the impacts of sanctions, respectively. Appreciating the evolving nature of the Iran sanctions problem and understanding the dynamics of the economic sanction enforcement-response games are necessary when interpreting the study findings. The analysis cannot determine how changes in sanction schemes, responses to sanctions, circumstances, or courses of actions in the past could have changed the status of the environment and the effectiveness of sanctions.
- Equating statistical correlations to causations in exploring the impacts of Iran sanctions can lead to very misleading conclusions. For example, an increase in the number polluted days in Tehran in a particular year cannot necessarily be attributed to the presence or absence of sanctions, as the number of polluted days can depend on other variables such as wind, precipitation, and temperature changes during the year. To be able to properly explain observations and identify the underlying causal mechanisms of the problem, one must be familiar with the historical and technical context, as well as the involved complexities.
3. State of the Environment in Iran: Did Sanctions Cause Iran’s Environmental Problems?
4. The Environmental Impacts of Sanctions
4.1. Restricting Access to Technology, Service, and Know-How
- Completely disregarding its need to acquire specific GTKSFor example, the South Pars refineries use a specific type of absorbent for mercury removal from natural gas. The manufacturers of this type of absorbent, such as Johnson Matthey (JM) and Axens, have refused to sell it to Iran. As a result, mercury is not being properly removed from natural gas, damaging the environment (with major public health implications) both at the production point (refineries) as well as the consumption points (houses, offices, schools, hospitals, factories, etc., (indoor and outdoor)).In some industries, the companies that have sold equipment to Iran in the past are reluctant to provide spare parts and the needed service (repair, operation, inspection, and maintenance). Many companies that had long-term contracts for providing various technical services (e.g., software updates, operation optimization, new knowledge delivery, training, instrumentation, and inspection) have suspended their contracts and stopped their service under sanctions without any penalty to their service buyers. These issues have resulted in Iran’s restricted access to the best available technology and know-how, subsequently reducing the resource use efficiency and increasing the ecological footprints of different sectors in the country.Numerous examples of this kind have occurred in the vehicle manufacturing and transportation industry with major environmental implications in terms of emissions. Major Iranian car manufacturers have continuously postponed of the adoption of the Euro 5 emission standard while blaming sanctions as the cause of their limited access to required technologies. In 2018, the Construction and Transportation Commission of the Tehran’s City Council suspended the budget for installing diesel particulate filters (DPFs) on the 700 old buses (defined as buses that are more than 8 years old) used by the Tehran Bus Company (a subsidiary of Tehran Municipality, which is overseen by the Islamic City Council of Tehran) for public transport. (More than half of about 6000 buses used by the Tehran Bus Company run on diesel. The average age of the company’s bus fleet is 11 years old. More than half of the buses belong to the “old” category. By 2023, almost 90% the company’s bus fleet will be “old” if there is no fleet retrofit). In 2019, upon the request of Iran Khodro Company (one of the major vehicle manufacturers in Iran and the Middle East), Senior Vice President Eshaq Jahangiri ordered the Minister of Industry, Mines, and Business and the Head of Iran’s Department of Environment to waive the requirement for installing diesel particulate filters on diesel trucks under the sanctions (Figure 1). These decisions, made under the economic sanctions, have a direct impact on the level of air pollution with significant socio-economic, health, and environmental implications.In addition to the limited and costly access to DPFs under sanctions, it has been argued that the diesel produced in Iran does not meet the required quality standards, making DPFs dysfunctional and redundant. This argument has been rejected by Iran’s Department of Environment. Nevertheless, even if the argument is valid, sanctions have been introduced as the major obstacle to improving the quality of the fuels produced in Iran. Therefore, regardless of the validity of the claim, one can conclude that the economic sanctions have directly impacted air quality in Tehran (as a catalyst that has intensified air pollution).
- Settling for cheaper but lower quality (e.g., used, outdated/not state-of-the art, and not meeting environmental quality standards) GTKS provided by foreign or domestic suppliersFor example, after the re-imposition of US sanctions in 2018, Siemens refused to ship the syngas compressors it had produced for the Zanjan Fertilizer Project (ZFP) under an old purchase agreement in fear of targeted retaliation from the US. Indeed, Siemens did not risk losing its 20 billion USD a year revenue (about 20% of its global sales) in the United States where it employs about 50,000 workers [141] to make a very small revenue in Iran (similarly, many other companies with a strong presence in the US have refused to do business with Iran, in fear of losing their share from the US market). ZFP ended up purchasing Chinese compressors with lower environmental standards, leading to higher emissions.Similar stories have occurred in Iran’s methanol industry. Iran has the potential to become one of the leading producers of methanol. Yet, its access to state-of-the-art technologies has been cut by the sanctions. JM and Haldor Topsoe have refused to provide autothermal reforming technology (ATR) to the Eslamabad-e Gharb refinery in Iran. Thus, Iran is in the process of launching this refinery using older technologies, leading to higher water use and carbon footprints (in 2020, Iran’s neighbor, Turkmenistan, successfully operationalized the world’s largest ATR-based methanol plant with the help of Haldor Topsoe [142]). In another methanol project in south Iran, the international licensor of the project, Haldor Topsoe, did not respect its contractual obligations after the re-imposition of sanctions and refused to deliver three critical equipment parts. These parts were subsequently replaced by their Iranian alternatives that did not meet the environmental standards specified in the Process Design Package (PDP) and approved by the original licensor.In 2006, INPEX Corporation, Japan’s largest oil and gas exploration and production company, pulled out of the oil extraction project in the Iranian part of Hoor Al-Azim, a major transboundary wetland in southwestern Iran, overlying large oil fields. The implementation of the project was pursued and completed by Chinese and Iranian companies. Yet, the original design specifications that were suitable for oil drilling in wetlands (wet environments) were not pursued. The implemented project and installed oil rig and equipment that are in operation today are suitable for dry environments. As a result, not only was the wetland area kept dry during the implementation of the project, but also releasing large volumes of water into some parts of this highly manipulated wetland (both Iran and Iraq have substantially modified the natural conditions of the Hoor Al-Azim wetland by installing a series of dikes, culvers, and roads) has become prohibitive given the damages it can cause to the installed equipment. The drying up of Hoor Al-Azim reduced the implementation cost of the project under sanctions, but in the long run, it has caused significant ecosystem damage and turned the wetland into a major dust source in the region, affecting the lives and health of people in the Khuzestan Province during long episodes of dust storms that have been unprecedented in the region.In 2010, when the economic sanctions on Iran’s gasoline imports were signed into law, Iran was importing 40% of its gasoline. President Barack Obama had projected that penalizing Iran’s gasoline suppliers and increasing pressure on the international banking system to stop working with Iran would make it harder for the country to buy refined petroleum and the required goods and services to modernize its oil and gas sector, the backbone of its economy [143]. This projection was somewhat correct. Iran’s petrol imports dropped by 75% [17], but Iran immediately responded to the new sanctions by increasing its local refining capacity, producing lethal, but cheap, petroleum that could run vehicle engines but was highly destructive to the environment. Iran’s locally produced petroleum at the time contained 10 times the level of contaminants compared to imported fuel and the sulfur level in diesel gas sold in Tehran was 8000 parts per million (ppm) [144,145], 800 times greater than the US Environmental Protection Agency (EPA) standard. Similar to the other examples above, Iran tried to withstand the sanctions’ pressure on the oil and natural gas sectors by making choices that had major costs for the environment but could help the country survive in the short run.In some cases, relying on domestic GTKS delivery is not necessarily more economically effective for the sanctionee, but it can help reduce the national insecurity risks. For example, while domestic wheat production can be costlier than importing wheat, the fear of sanctioned food access and national security problems might justify the continuation of conventional and inefficient domestic food production for the country leaders. Given the tensions and international conflicts that Iran has experienced since the 1979 Islamic Revolution, food security has been a significant public policy agenda for the country’s leaders. The experiences of other under sanction countries and observing their vulnerability to food import reductions have turned food insecurity into a major phobia. As a result, Iran has seriously pursued the ambitious goal of self-sufficiency in food production [31,33]. This policy has had major negative impacts on the country’s water and environment. Despite these impacts, the country leaders consider this policy a necessity given their national security concerns that drastically intensified under sanctions and extreme international pressure. (Creating job opportunities has been another motivator for expanding the agricultural sector. The dependency of a significant portion of the country’s population on the agricultural sector for their jobs [31] creates another national security concern as reducing the size of this sector could cause unemployment for the weaker economic groups of the society). Although food export to Iran is supposedly free of sanctions and importing at least part of the needed food can decrease the economic and environmental costs of food production for Iran, the country sees food-dependency as a major vulnerability that can be targeted by its enemies and by sanctions. Similarly, sanctions have promoted self-sufficiency and minimal international dependency policies in other sectors (e.g., car manufacturing, gasoline, and pharmaceuticals) despite their long-term environmental costs for the country.
4.2. Blocking Interntional Aid for the Environment
4.3. Increasing the Natural Resource-Intensity of Iran’s Economy
5. Conclusions
Funding
Data Availability Statement
Conflicts of Interest
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Madani, K. Have International Sanctions Impacted Iran’s Environment? World 2021, 2, 231-252. https://doi.org/10.3390/world2020015
Madani K. Have International Sanctions Impacted Iran’s Environment? World. 2021; 2(2):231-252. https://doi.org/10.3390/world2020015
Chicago/Turabian StyleMadani, Kaveh. 2021. "Have International Sanctions Impacted Iran’s Environment?" World 2, no. 2: 231-252. https://doi.org/10.3390/world2020015