Measuring GHG Emissions

Energizing Cleaner Production

Management Course

Session Agenda:

GHG types and sources GHG Indicator to calculate emissions GHG accounting and reporting

Step 1: Planning and Organization

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

task 1a: Meeting with top management task 1b: Form a Team and inform staff task 1c: Pre-assessment to collect general information task 1d: Select focus areas task 1e: Prepare assessment proposal for top management approval

Step 2: Assessment
task 2a: Staff meeting and training task 2b: Prepare focus area flow charts task 2c: Walkthrough of focus areas task 2d: Quantify inputs and outputs and costs to establish a baseline task 2e: Quantify losses through a material and energy balance

Step 3: Identification of Options

task 3a: Determine causes of losses task 3b: Identify possible options task 3c: Screen options for feasibility analysis

Step 4: Feasibility Analysis of Options

task 4a: Technical, economic and environmental evaluation of options task 4b: Rank feasible options for implementation task 4c: Prepare implementation and monitoring proposal for top management approval

Step 5: Implementation and Monitoring of Options

task 5a: Implement options and monitor results task 5b: Evaluation meeting with top management

Step 6: Continuous Improvement

task 6a: Prepare proposal to continue with energy efficiency for top management approval

GHG types and sources:

Greenhouse Gases

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
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Sources of GHG: industrial processes

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

GHG Indicator:

Methodology
Raw data Conversion Aggregation Normalisation

1. Fuel use 2. Electricity use 3. Industrial processes 4. Transport

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GHG emissio n factor

Total GHG emission s

Normalised GHG emissions

GHG Indicator:

1. Fuel Use
Fuel Annual Fuel Consumption (Tons) 500 3502 Emission Factor t CO2 X 1.85 X 3.25 X 3.09 = = = t CO2equivalent

Coal Refinery stock

925 11382 139 12446

Petroleum 45 coke TOTAL 4047

GHG Indicator:

2. Electricity Use
Electricity Annual electricity consumption (kWh) 1,000,000 100,000 900,000 Emission Factor t CO2 X 0.000618 X 0.000618 = = t CO2
equivalent

Imported Exported TOTAL

61.80 6.18 55.62

Exported electricity is not included in the total

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GHG Indicator:

3. Industrial Processes
Emission source CFC 11 Lime TOTAL Annual consumption (tonnes) 0.1 10,000 Emission Factor t CO2 X 3400 X 0.396 = = t CO2
equivalent

340 3960 4300

CO2 is released when lime is burned

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GHG Indicator:

4. Transport
Transport mode Car Petrol Car Diesel Train Annual travel (km) 20,000 100,000 EF tCO2 / km 0.00019 0.00016 = = t CO2
equivalent

3.8 16

150,000

0.00034

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TOTAL

270,000

70.8

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GHG Indicator:

Aggregation
Source
1 2 3 4 Fuel use Electricity use Industrial process Transport

t CO2
equivalent

12446 55.62 4300 70.8

TOTAL

16872
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GHG Indicator:

Normalisation
Normalising Annual t CO2 Normalised factor figures t CO2 Turnover $ 20,000,000 16872 0.000844 Added value $ 500,000 16872 Employees Units of production 500 1,350,000 tonnes 16872 16872 33.744 0.012498
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0.033744

GHG Indicator:

Reporting
Year 1990 1991 . 2002 24267
43.8%

Total t CO2 16872 18823

Production Normalised (tonnes) t CO2 1,350,000 0.012498 1,500,000 0.012549

2,000,000

0.012134
2.9%

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GHG Indicator:

GHG Indicators by sector

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GHG Indicator Quiz

Lets test what you have learnt!

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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 18 Other

GHG Accounting and Reporting

The GHG Protocol lists 5 accounting & reporting principles: Relevance Completeness Consistency Transparency Accuracy
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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?
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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?
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GHG Accounting and Reporting: Completeness (cont.)

Direct and Indirect Emissions of a Company

Source: GHG Protocol, www.ghgprotocol.org, adapted from NZBSCD
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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?
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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?
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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 BPs GHG target

320 Reporting Units:

Complete standard pro-forma spreadsheet every quarter: emissions & forecasts Account for variances Use BPs GHG Reporting Guidelines

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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?

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GHG Accounting and Reporting: Reporting Emissions

Minimum information to be reported
Company and inventory boundary
Organizational boundaries Operational boundaries Reporting period

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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

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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

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Summary
GHG emission accounting and reporting increasingly important
GHG Indicator useful tool to calculate GHG emissions Dont assume data company gives you are accurate and complete!! (think of the 5 principles) Verification improves the credibility / reliability of GHG data
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Measuring GHG Emissions

Thank you for your attention!

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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 UNEPs The GHG Indicator (www.uneptie.org/energy/tools/ghgin/index.htm) and the WBCSD/WRIs The GHG Protocol - A Corporate Accounting and Reporting Standard, revised edition (www.ghgprotocol.org)
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