Valuation of the Environment for COMAH Cost-Benefit Analysis

About this presentation

Following on from a COMAH environmental risk assessment, it is often found that the risk is tolerable if As Low As Reasonably Practicable (ALARP).  A study is therefore required to demonstrate the risk is ALARP.  This should include potential further risk reduction measures and determine which of these are reasonable to implement.  The decision is often based on engineering judgement and operational feasibility.  Where this is not possible, a cost benefit analysis (CBA) can be used in support of a decision.  One element of a CBA is the cost of environmental damage (or value of preventing it), which requires assigning an economic value to the environment. There is currently no guidance or consistency regarding how to go about assigning monetary values to Major Accidents to the Environment (MATTEs).  Therefore, the Energy Institute has commissioned a project aimed at defining a set of values (e.g. for different MATTE level consequences to different environmental receptors).  Ultimately, a guidance document will be produced for risk assessors, to inform and justify decisions on any financial values used in cost benefit analyses focussing on the environment.  This presentation provides background to and an overview of progress on this project.

Speaker Bio

Managing Director of RAS Limited, Carolyn is an MIChemE Professional Process Safety Engineer, and has been in the risk and hazard management industry for over seventeen years.

Carolyn leads the RAS team of risk and hazard management consultants and has been instrumental in creating the company’s assessment methodologies. Carolyn has experience of working with a large number of UK COMAH sites to develop safety reports, perform hazardous area classification and provide support in all aspects of risk management, in particular consequence analysis and risk assessment, and evaluating the economic impact of improvement measures. Working in the areas of safety to people and environment equally.