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Greenhouse Gas Accounting: GHG Protocol Initiative and ISO

World Resources Institute. Greenhouse Gas Accounting: GHG Protocol Initiative and ISO. GHG Protocol/ISO Comparison. GHG Protocol/ISO Comparison. Key messages. Avoid creating competing standards Don’t reinvent the wheel! Base organization/project parts on GHG Protocol

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Greenhouse Gas Accounting: GHG Protocol Initiative and ISO

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  1. World Resources Institute Greenhouse Gas Accounting: GHG Protocol Initiative and ISO

  2. GHG Protocol/ISO Comparison

  3. GHG Protocol/ISO Comparison

  4. Key messages • Avoid creating competing standards • Don’t reinvent the wheel! • Base organization/project parts on GHG Protocol • Use GHG Protocol terminology to avoid confusion • Form follows function • Define the purpose of the standards first and design accordingly

  5. Key messages • Separate project, corporate & verification standards • Verification standard should be stand-alone • Project standard needs to be on a slower track • A good process is crucial • Get the balance of participants/decision makers right e.g., business, NGO’s, governments, North/South, others • Understanding of issues and concepts is a pre-requisite for informed decision making - this is an iterative process • Keep communication channels open with GHGP

  6. GHG Protocol Corporate Standard GHGP Project Standard Adoption of the Corporate Standard The GHG Protocol’s impact on GHG accounting practice California Climate Action Registry French REGES Protocol Carbon Disclosure Project Chicago Climate Exchange Dow Jones Sustainability Index EU- ETS GRI METI, Japan Northeast Registry (NESCAUM) Respect Europe Business Leaders Initiative for Climate Change (BLICC) Industry Associations (Aluminum, IPIECA, ICFPA, Cement, Iron and Steel) UK-ETS U.S. EPA Climate Leaders Initiative World Wildlife Fund Climate Savers World Economic Forum Global GHG Register ISO 14064 is on a good track… Setting the scene

  7. Adoption by businesses (those that we know of…) Adoption by businesses Automobile ManufacturersFord Motor Company, USAVolkswagen, Germany CementCemex, MexicoCimpor, BrazilHeidelberger Cement, GermanyHolcim, USA (and worldwide Holcim facilities)Italcementi, ItalyLafarge, France and North AmericaRMC, UKSt. Lawrence Cement Inc., CanadaSiam Cement, ThailandTaiheiyo, JapanVotorantim, Brazil Consumer Goods ManufacturersBank of AmericaBody Shop, UKCargill, USAEastman Kodak, USAFetzer Vineyards, USA IBM, USAIKEA International, SwedenJohnson & Johnson, USAMiller Brewing Company, USANike, USANorm Thompson Outfitters, USAPfizer Inc., USARaytheon, USASC Johnson, USASony Electronics, JapanStarbucks Coffee, USAStaples Inc., USASun MicrosystemsTarget Corporation, USA Unilever HPC, USAUnited Technologies Corporation, USA Energy ServicesBirka Energi, SwedenCinergy, USAEdison Mission Energy, USAENDESA, SpainExelon Corporation, USAFPL Group, Inc., USAGeneral Electric, USAGreen Mountain Energy, USAKansai Electric Power, JapanMirant, USA N.V. Nuon Renewable Energy, NetherlandsPSEG, USASeattle City Light, USATokyo Gas, JapanWisconsin Electric, USAWe Energies, USA Oil and GasBP, USANorsk Hydro, Norway Shell Canada, CanadaSuncor, USA Industrial Manufacturers/ MiningAir Products and Chemicals, Inc. Alcan Aluminum Corporation, USAAlcoa, USABall Corporation, USABaltimore Aircoil, USABaxter International, USABethlehem Steel Corporation, USACODELCO, Chile DuPont, Inc. Interface, Inc., USA International Paper, USAITC Inc., India Lockheed Martin Corporation, USAPhilips & Yaming, ChinaSimplex Paper & Pulp, IndiaSTMicroelectronics, SwitzerlandStoraEnso, FinlandTata Steel, IndiaUnited States Steel Corporation Non-Government OrganizationsWorld Business Council for Sustainable Development, SwitzerlandWorld Resources Institute, USA Services500 PPM GmbH, GermanyAstraZeneca, UKCasella Waste Systems, Inc., USADHL, USA European Bank for Reconstruction & DevelopmentPE Europe, GermanyPowerComm, CanadaPrice Waterhouse Coopers, New ZealandVerizon Communications, USA

  8. Standards • OrganizationalBoundaries • Operational Boundaries • Historic Datum • Reporting GHG emissions Guidance • Business goals and inventory design • Accounting for GHG reductions • Identifying GHG sources • Managing inventory quality • Verification of GHG emissions Corporate Standard: what’s in it? Calculation tools • Web-based, user-friendly, step-by-step guidance • Build on IPCC methodologies • Sector-specific tools developed in industry-led efforts (e.g. cement, pulp & paper, aluminum) www.ghgprotocol.org

  9. Revised edition of Corporate Standard • To be published early next year, now in final review and design stage • The water is cleaner, and the baby is still in the bath! • Main changes to the first edition • More verification-friendly language (“shall”), which also aims to increase clarity as to what is required to produce a report “in accordance with” GHG Protocol (this does not affect the structure of the document) • Increased flexibility in choosing Organizational Boundaries • More specificity for indirect emissions from purchased electricity (still a required category) • Improved guidance • New case studies reflect how accounting practice has advanced in the meantime • New guidance chapter: Voluntary Corporate GHG targets • New Appendix: Issue piece for companies wishing to account for sequestered carbon

  10. Project standard: what is it? Tool to help project developers to account for GHG reductions made by means of specific reduction projects (offsets/credits)

  11. Project Accounting Principles 1. Relevance 2. Completeness 3. Consistency 4. Transparency 5. Accuracy 6. Conservatism

  12. The Project Quantification Standard Consists of: Introduction to GHG accounting Quantification steps Baseline procedures Annexes Glossary References List of contributors Project Typology – sector-specific guidance

  13. II: Eight Quantification Steps 1: Describe the project and primary effect(s) 2: Check the eligibility of the primary effect 3: Check the primary effect is additional to legal requirements 4: Undertake a preliminary evaluation of secondary effects 5: Select the baseline scenario 6: Identify and assess the relevance of secondary effects 7: Calculate project reduction and classify based on ownership 8: Develop a monitoring plan (still to come)

  14. III: Baseline Procedures Three Baseline Procedures Project Specific Performance Standard Retrofit Procedure Procedure Procedure

  15. Additionality Uses a three-fold approach Additional Initial ‘Additional to Legal Requirements’ Screen 1. Tests: Barriers, Investment Ranking 2. Project specific Stringency level Performance Standard Retrofits Only remaining life of equipment 3. Project GHG Emission less than Baseline GHG Emissions

  16. GHG Protocol Initiative Thank You www.ghgprotocol.org

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