Measuring GHG Emissions Energizing Cleaner Production Management Course

1. Measuring GHG Emissions Energizing Cleaner Production Management Course

2. Session Agenda: GHG types and sources GHG Indicator to calculate emissions GHG accounting and reporting

3. But first… In what step(s) of the methodology is (energy and) GHG measurement relevant?

4. GHG types and sources:Greenhouse Gases

5. GHG types and sources:GHG sources • Industrial sources • Fuel use • Electricity use • Industrial processes • Transport • Non-industry and natural sources • Volcanoes • Cattle • Forest fires • Others

6. Sources of GHG: industrial processes

7. GHG Indicator • Based on UNEP/IPCC methodology for GHG emission calculations • Provides common method for reporting GHG emissions • Used by organizations to calculate GHG emissions from energy use and other sources • Used by Governments to translate national GHG targets (e.g. Kyoto Protocol) to industrial targets

8. GHG Indicator:Methodology Raw data Conversion Aggregation Normalisation 1. Fuel use 2. Electricity use Total GHG emissions Normalised GHG emissions GHG emission factor 3. Industrial processes 4. Transport

9. GHG Indicator:1. Fuel Use

10. GHG Indicator:2. Electricity Use Exported electricity is not included in the total

11. GHG Indicator:3. Industrial Processes CO2 is released when lime is burned

12. GHG Indicator:4. Transport

13. GHG Indicator:Aggregation

14. GHG Indicator:Normalisation

15. 2.9% 43.8% GHG Indicator:Reporting

16. GHG Indicator:GHG Indicators by sector

17. GHG Indicator Quiz Let’s test what you have learnt!

18. GHG Accounting and Reporting Reasons for GHG accounting and reporting • Internal reporting to measure progress against targets & identify EE opportunities • Legal requirement to report • Voluntary reporting under programs • Public environmental / CSR reports • Emissions trading schemes • CDM or JI • Other…

19. GHG Accounting and Reporting The GHG Protocol lists 5 accounting & reporting principles: • Relevance • Completeness • Consistency • Transparency • Accuracy

20. GHG Accounting and Reporting:Relevance Define boundaries: • Organizational structures • Operational boundaries • Business context • Specific inclusions / exclusions A multinational operates a plant but owns only 60% of shares Do you count 100% or 60% of emissions?

21. GHG Accounting and Reporting:Completeness Include all GHG sources & activities • Fuel use • Electricity use • Industrial processes • Transport Sometimes companies do not include all emission sources / activities Can you think of reasons why?

22. GHG Accounting and Reporting:Completeness (cont.) • # Direct and Indirect Emissions of a Company Source: GHG Protocol, www.ghgprotocol.org, adapted from NZBSCD

23. GHG Accounting and Reporting:Consistency Meaningful comparison of emissions over time • Production changes • Process changes • Acquisitions, mergers, sales • Outsourcing Why is it important that GHG emissions be compared between different years?

24. GHG Accounting and Reporting:Transparency It is clear how emissions were calculated (“audit trail”) • Measurements • Assumptions • Calculation methods • References • Exclusions or inclusions Who makes use of the “audit trail” of data?

25. GHG Accounting and Reporting:Transparency (cont.) • Independent External Auditors • Review of inventory • Provide assurance on data quality & accuracy • Corporate Team • Check quality of incoming data • Compile data • Analyze emission inventory and forecast against BP’s GHG target • 320 Reporting Units: • Complete standard pro-forma spreadsheet every quarter: emissions & forecasts • Account for variances • Use BP’s GHG Reporting Guidelines

26. GHG Accounting and Reporting:Accuracy Data must be “materially” accurate • Measurement methods • Calculation methods • Aggregation and reporting What can a company do to improve data accuracy?

27. GHG Accounting and Reporting:Reporting Emissions Minimum information to be reported • Company and inventory boundary • Organizational boundaries • Operational boundaries • Reporting period

28. GHG Accounting and Reporting:Reporting Emissions (cont.) Minimum information to be reported • Information on emissions • Direct (scope 1) and indirect (scope 2) emissions – total and separate • Emissions for 6 GHGs • Current and base year emissions • Significant changes since base year • Direct CO2 emissions from biologically sequestered carbon • Methodologies for calculation/ measurement • Specific exclusions

29. GHG Accounting and Reporting:Verification of GHG Emissions • Verification is objective assessment of • Accuracy and completeness of GHG information • Conformity to GHG accounting and reporting principles • Why verification? • Increased credibility of reported emissions • Increased senior management confidence • Improved accounting & reporting • Preparation for mandatory verification requirements

30. Summary • GHG emission accounting and reporting increasingly important • GHG Indicator useful tool to calculate GHG emissions • Don’t assume data company gives you are accurate and complete!! (think of the 5 principles) • Verification improves the credibility / reliability of GHG data

31. Measuring GHG Emissions Thank you for your attention!

32. Acknowledgements • This training session was prepared as part of the development and delivery of the course “Energizing Cleaner Production” funded by InWent, Internationale Weiterbildung und Entwicklung (Capacity Building International, Germany)and carried out by the United Nations Environment Programme (UNEP) • The session is based on UNEP’s “The GHG Indicator” (www.uneptie.org/energy/tools/ghgin/index.htm) and the WBCSD/WRI’s “The GHG Protocol - A Corporate Accounting and Reporting Standard, revised edition” (www.ghgprotocol.org)