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January 19, 2010 Taiwan Specification for Product Carbon Footprint Yuh-Ming Lee, Ph.D. Professor Institute of Natural Resource Management National Taipei.

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Presentation on theme: "January 19, 2010 Taiwan Specification for Product Carbon Footprint Yuh-Ming Lee, Ph.D. Professor Institute of Natural Resource Management National Taipei."— Presentation transcript:

1 January 19, 2010 Taiwan Specification for Product Carbon Footprint Yuh-Ming Lee, Ph.D. Professor Institute of Natural Resource Management National Taipei University Following Carbon Footprints: A New Road to Carbon Reduction International Forum

2 Following Carbon Footprints: A New Road to Carbon Reduction International Forum 2 Content International Standards for Product Carbon Footprint UK: PAS 2050 Japan: TS Q 0010 ISO 14040/14044 WRI/WBCSD Product Life Cycle Accounting ISO Product Carbon Footprint - Part 1 Taiwan Specification for Product Carbon Footprint Overview Background and Development Criteria, Procedure and Application Conclusion

3 Following Carbon Footprints: A New Road to Carbon Reduction International Forum 3 I. International Standards for Product Carbon Footprint Developed by: BSI, Carbon Trust, Defra... Date of Publication: October, 2008 A publicly available specification, not yet a British Standard (BS) Key Documents PAS 2050 Guide to PAS 2050 Code of Good Practice for Product GHG Emissions and Reduction Claims Overview PAS 2050 Forward, Introduction 1. Scope, 2. Normative References, 3.Terms and Definitions UK: PAS Specification for the assessment of the life cycle greenhouse gas emissions of goods and services 4. Principles and Implementation 5.Emission Sources, Offsetting and Unit of Analysis 6.System Boundary 7. Data 8.Allocation of Emissions 9.Calculation of the GHG emissions of products 10.Claims of Conformity

4 Following Carbon Footprints: A New Road to Carbon Reduction International Forum 4 1. Product Scope Key Elements 2. Accounting Gasses 3. Life Cycle 4. Reference Standard 5. Calculation 6. Data Quality 7. Allocation 8. Communication All goods and services Contents Gases listed in the latest version available from the IPCC: CO 2, CH 4, N 2 O, substances controlled by Montreal Protocol, hydrofluorocarbons, Perfluorinated compounds, Fluorinated ethers B2C (cradle to grave) and B2B(cradle to gate) ISO and ISO Carbon Footprint of an activity = activity data x emission factor x GWP (expressed as CO 2 e) Carbon Footprint of an activity = activity data x emission factor x GWP (expressed as CO 2 e) Time-related coverage, geographical specificity, technology coverage, accuracy, precision, completeness, consistency, consistency, reproducibility, data sources 1. Dividing the unit process 2. Expanding the product system 3. be allocated in proportion to economic value 1. Third Party Certification 2. Other Party 3. Self Verification I. International Standards for Product Carbon Footprint UK: PAS 2050

5 Following Carbon Footprints: A New Road to Carbon Reduction International Forum 5 Developed by: Japanese Standards Association (JSA) Date of Announcement: April, 2009 A Technical Specification (TS), not yet a Japan Standard Key Documents TS Q 0010: 2009 Product Category Rules Supportive documents under development to make sure the consistency of PCF quantification Japan: TS Q General principles for the assessment and labeling of Carbon Footprint of Products Overview 4. Quantification Method for CFP5. Communication Method for CFP 4.1 Subject of Quantification 4.2 Quantification Coverage 4.3 Quantification Method 4.4 Product Category Rules (PCR) 4.5 Calculations at Each Stage 5.1 Basic Communication Rules 5.2 Selective/Optional Actions TS Q 0010 Forward Introduction 1. Scope 2. Normative References 3.Terms and Definitions I. International Standards for Product Carbon Footprint Normative document to guide PCF quantification method and processes

6 Following Carbon Footprints: A New Road to Carbon Reduction International Forum 6 I. International Standards for Product Carbon Footprint Japan: TS Q Product Scope Key Elements 2. Accounting Gasses 3. Life Cycle 4. Reference Standard 5. Calculation 6. Data Quality 7. Allocation 8. Communication All goods and services Contents Six gases covered by Kyoto Protocol: CO 2, CH 4, N 2 O, HFCs, PFCs, SF 6 Six gases covered by Kyoto Protocol: CO 2, CH 4, N 2 O, HFCs, PFCs, SF 6 B2C (cradle to grave); B2B (national label cannot be issued) ISO and ISO GHG emissions = ( activity i x GHG emission factor i ), where i stands for a process Secondary data must clarify: stages and coverage of data to be collected, places of collection, and collection period Allocation methods to be established in PCRs Absolute value of CO 2 e of a product carbon footprint labeled

7 Following Carbon Footprints: A New Road to Carbon Reduction International Forum 7 Key Documents ISO Environmental management – Life cycle assessment Principles and framework ISO Overview 4. Methodological framework for LCA 5.Reporting 4.1 General Requirements 4.2 Goal and Scope Definition 4.3 Life Cycle Inventory Analysis (LCI) 4.4 Life Cycle Impact Assessment (LCIA) 4.5 Life Cycle Interpretation 5.1 General 5.2 Third-Party Report 5.3 Disclose to the Public 6.Critical Review 6.1 General 6.2 Review by Experts 6.3 Review by Panel of Interested Parties ISO Forward, Introduction 1. Scope, 2. Normative References 3.Terms and Definitions I. International Standards for Product Carbon Footprint CNS ISO 14040/ Environmental management -- Life Cycle Assessment Developed by: International Organization for Standardization (ISO) Date of Publication: July, 2006 Adopted as Taiwan Standard (CNS) Environmental management – Life cycle assessment Requirements and guidelines

8 Following Carbon Footprints: A New Road to Carbon Reduction International Forum 8 1. Product Scope Key Elements 2. Subjects of Assessment 3. Life Cycle 4. Reference Standard 5. Calculation 6. Data Quality 7. Allocation 8. Communication All goods and services Contents Any environmental issues of concern or impact category B2C (cradle to grave), B2B (cradle to gate) and others ISO or ISO No specific formulae Time-related coverage, geographical specificity, technology coverage, accuracy, precision, completeness, consistency, consistency, reproducibility, data sources 1. Dividing the unit process 2. Expanding the product system 3. be allocated in proportion to economic value Third-party Reports I. International Standards for Product Carbon Footprint ISO 14040/14044

9 Following Carbon Footprints: A New Road to Carbon Reduction International Forum 9 Overview 1. Introduction 2. Principles of Product GHG Accounting 3. Overview of Product GHG Accounting 4. Establishing the Methodology 5. Defining the Functional Unit 6.Boundary Setting 7.Collocting Data 8.Allocation 9.Assessing Data Quality and Uncertainty 10. Calculating GHG Emissions 11.Assurance 12.Reporting 13.Accounting for GHG Emission Reductions Appendix A-F Documents in the Pipeline Scope 3 Accounting and Reporting Standard Product Life Cycle Accounting and Reporting Standard I. International Standards for Product Carbon Footprint WRI/WBCSD -- Product Life Cycle Accounting and Reporting Standard Developed by: WRI/WBCSD Date of Publication: December, 2010 Review draft for Stakeholder Advisory Group: Nov., 2009 Quantify and report major GHG emissions in the value chain at the company/organization level (scope 3) Quantify and report product - level emissions

10 Following Carbon Footprints: A New Road to Carbon Reduction International Forum 10 ISO Carbon Footprint of Products --Part 1: Quantification Developed by: International Organization for Standardization (ISO) Estimated Date of Publication: March, 2010 I. International Standards for Product Carbon Footprint ISO14040 Overview Development of ISO ISO ISO Labelling: based on ISO GHG Emission Inventory : based on ISO Life Cycle Assessment: based on ISO ISO14040/ Part 1 Part 2 Labelling GHG LCA ISO include: Part 1Quantification Part 2Communication ISO/TC 207 (Environmental Management) SC1 SC2 SC7 SC5 SC4 SC3 GHG Management SC 7: Greenhouse Gas Management and Related Activities SC 7 First Meeting: WG 2 was formed to study GHG management in the value or supply chain SC 7 First Meeting: WG 2 was formed to study GHG management in the value or supply chain WG 2 First Meeting: a new standard for Product Caron Footprint recommended WG 2 First Meeting: a new standard for Product Caron Footprint recommended 2008/1 2008/4 ISO/TC 207 Bogota/Cairo Meeting: working draft of ISO /6~2009/6 2007/6 ISO & ISO to be released in Mar. 2010

11 Following Carbon Footprints: A New Road to Carbon Reduction International Forum Product Scope Key Elements 2. Accounting Gases 3. Life Cycle 4. Reference Standard 5. Calculation 6. Data Quality 7. Allocation 8. Communication All goods and services Contents Gases listed in IPCC reports: CO 2, CH 4, N 2 O, substances controlled by Montreal Protocol, Hydrofluorocarbons, Perfluorinated compounds, Fluorinated ethers B2C (cradle to grave), B2B(cradle to gate) and others ISO 14040, ISO 14044, ISO 14025, ISO , ISO GHG Emissions x GWP (100-year time horizon) Time-related coverage, geographical specificity, technology coverage, accuracy, precision, completeness, consistency, reproducibility Dividing the unit process 2. Expanding the product system 3. Allocating relationships between the products and functions ISO Part 2 -- Communication I. International Standards for Product Carbon Footprint ISO/WD

12 ISO/WD ISO/WD UK PAS 2050 ISO 14040/44 Life Cycle Assessment ISO GHG Emission Inventory ISO Type 3 Eco-Labeling Japan TS Q 0010 ISO Standards Product Carbon Footprint Reference of Standards I. International Standards for Product Carbon Footprint

13 Following Carbon Footprints: A New Road to Carbon Reduction International Forum Subjects of GHG Emission Assessment 6.2 Sources of GHG Emission 6.3 Treatment of Specific GHG Emission Sources 6.4 Offsetting 6.1 Subjects of GHG Emission Assessment 6.2 Sources of GHG Emission 6.3 Treatment of Specific GHG Emission Sources 6.4 Offsetting 7.1 General 7.2 Data Quality Req. 7.3 Primary Activity Data 7.4 Secondary Data 7.5 Renewable Energy- Specific Emission Factors 7.6 Data Collection Period 7.7 Data Sampling 7.8 Supporting Documents 8.1 Allocation 8.2 Calculation of PCF 8.3 Time Period for Assessment of GHG Emissions 7.1 General 7.2 Data Quality Req. 7.3 Primary Activity Data 7.4 Secondary Data 7.5 Renewable Energy- Specific Emission Factors 7.6 Data Collection Period 7.7 Data Sampling 7.8 Supporting Documents 8.1 Allocation 8.2 Calculation of PCF 8.3 Time Period for Assessment of GHG Emissions 9.1 General Requirements 9.2 Additional requirements and guidance for third-party reports 9.3 Confidentiality 10.1 General 10.2 Validity of Assessment 10.3 Claims of Conformity 10.4 Identification of the Basis of a claim 9.1 General Requirements 9.2 Additional requirements and guidance for third-party reports 9.3 Confidentiality 10.1 General 10.2 Validity of Assessment 10.3 Claims of Conformity 10.4 Identification of the Basis of a claim 5.1 General Requirements 5.2 Goal and Scope Definition of the Quantification of PCF 5.3 Functional Unit 5.4 Product System and System Boundary 5.5 Material Contribution and Threshold 5.6 System Boundary Exclusion 5.1 General Requirements 5.2 Goal and Scope Definition of the Quantification of PCF 5.3 Functional Unit 5.4 Product System and System Boundary 5.5 Material Contribution and Threshold 5.6 System Boundary Exclusion Forward Introduction 1. Scope 2. Normative Reference 3. Terms and Definition 4. Principles Forward Introduction 1. Scope 2. Normative Reference 3. Terms and Definition 4. Principles Taiwan Specification for Product Carbon Footprint II. Taiwan Specification for Product Carbon Footprint Overview Emission Sources and Offsetting (6) Emission Sources and Offsetting (6) Data and Calculation (7-8) Data and Calculation (7-8) Reporting and Verification (9-10) Reporting and Verification (9-10) PCF Methodology (5) PCF Methodology (5) General Principles (1-4) General Principles (1-4)

14 Following Carbon Footprints: A New Road to Carbon Reduction International Forum Product Scope Key Elements 2. Accounting Gases 3. Life Cycle 4. Reference Standard 5. Calculation 6. Data Quality 7. Allocation 8. Communication All goods and services Contents Gases listed in IPCC reports: CO 2, CH 4, N 2 O, substances controlled by Montreal Protocol, Hydrofluorocarbons, Perfluorinated compounds, Fluorinated ethers B2C (cradle to grave), B2B (cradle to gate) and others ISO 14040/44, ISO 14025, ISO , WD , PAS 2050 GHG Emissions x GWP (100-year time horizon) Time-related coverage, geographical specificity, technology coverage, accuracy, precision, completeness, consistency, reproducibility Dividing the unit process 2. Expanding the product system 3. Allocating relationships between products and functions 1. Third Party Certification 2. Other Party 3. Self Verification Overview II. Taiwan Specification for Product Carbon Footprint

15 Following Carbon Footprints: A New Road to Carbon Reduction International Forum 15 First Expert Technical Consultation Meeting 2009/09/08 Second Expert Technical Consultation Meeting 2009/11/20 Final Version 2009/12/31 Evaluation and Approval by EPA for announcement 2010/01 Analysis of Data Collection and PCF Quantification Methodology 2009/06-08 Research on International Standards/Specifications of PCF and Literature Review 2009/04-06 Relevant Government Agencies LCA Experts Verification Bodies Companies with PCF experiences PAS 2050 TS Q 0010 ISO/WD ISO 14040/44 Others Background and Development Relevant Government Agencies LCA Experts Verification Bodies Companies with PCF experiences II. Taiwan Specification for Product Carbon Footprint

16 Following Carbon Footprints: A New Road to Carbon Reduction International Forum 16 1.Building Process Map 2.Checking Boundaries and Prioritization 3. Data Collection 4.Calcuation 5.Reporting Establish the functional unit to be assessed Building up life cycle process map, including material acquisition, manufacture, transportation, use and final disposal and waste treatment B2C or B2B Perform High Level Analysis; prioritizing large emission sources; system boundary exclusions Collecting activity data of each stage of product life cycle and relevant emission factors Data Quality Requirements, Primary Activity Data, Secondary Data Allocation Calculation of Product Carbon Footprint Reporting of PCF analysis must be unbiased, comprehensive and accurate Self Verification, Other Party Verification or Third-Party Certification Reporting Format and Content of Disclosure Development based on the 5 steps of Product Carbon Footprint Calculation identified in the Guide to PAS 2050 Criteria. Procedure and Application II. Taiwan Specification for Product Carbon Footprint

17 Following Carbon Footprints: A New Road to Carbon Reduction International Forum 17 Building a Process map (1/5) Provisions Step Criteria The functional unit must be measurable and meaningful in away that reflects how the product is actually consumed by the end user For example, compact discs are usually sold as a pack of 50 discs that is hence a meaningful functional unit Functional Unit If the product to be assessed is not a final product, a B2B (cradle to gate) life cycle scoping is suggested. if the product is sold to consumers a B2C (cradle to grave) life cycle scoping is suggested. If there exists a relevant Product Category Rule (PCR), thesystem boundary shall be defined in accordance with the boundary conditions specified in the PCR. System Boundary Clause Criteria, Procedure and Application II. Taiwan Specification for Product Carbon Footprint

18 Following Carbon Footprints: A New Road to Carbon Reduction International Forum 18 Step Boundary and Priorities (2/5) Criteria B2C: Life cycle include stages from raw materials, throughmanufacture, distribution and sales, to consumer use andfinally disposal and/or recycling B2B: the calculation of footprint stops at the point wherethe product is delivered to another manufacturer Basic Processes within Boundary Adopt the materiality threshold of 1% to ensure that very minor sources of life cycle GHG emissions do not require thesame treatment as more significant sources At least 95% of the anticipated life cycle GHG emissions of the product must be accounted Material Contribution Provisions Clause ~ Human labor, administration, marketing and sales, privatetransportation of employees, transportation from point ofsales to home, and business travel of employees System Boundary Exclusions 5.6 Criteria, Procedure and Application II. Taiwan Specification for Product Carbon Footprint

19 Following Carbon Footprints: A New Road to Carbon Reduction International Forum 19 Step Boundary and Priorities (2/5) Criteria Gases listed in the latest available reports from the IPCC GHGs to be Assessed The assessment shall include GHG emissions arising fromprocesses, inputs and outputs in the life cycle of a product:energy use, combustion processes, chemical reactions,refrigerant loss and other fugitive gases, operations, serviceprovision and delivery, livestock and other agriculturalprocesses, and waste Sources of GHG Emission GHG emissions arising from fossil carbon sources shall becalculated; GHG emissions arising from combustion of biomass carbon can be excluded from the calculation Treatment of Specific GHG Sources Provisions Clause Criteria, Procedure and Application II. Taiwan Specification for Product Carbon Footprint

20 Following Carbon Footprints: A New Road to Carbon Reduction International Forum 20 Step Boundary and Priorities (2/5) Criteria Where atmospheric CO2 is taken up by a product, and thatproduct is not a living organism, the impact of this carbonstorage over the 100-year assessment period shall beincluded in the assessment of the life cycle GHG emissionsof the product Carbon Storage in Products Where GHG emissions arising from the supply chain arestored, that proportion of the emissions modeled as storedfor 100 years or more following the formation of theproduct shall be treated as in carbon storage in products Carbon Capture and Storage Provisions Emissions offset mechanisms, including but not limited to,voluntary offset schemes or recognized offset mechanisms,shall not be used at any point in the life cycle of the productin order to claim reduction in the emissions associated withthe product Offsetting Clause Criteria, Procedure and Application II. Taiwan Specification for Product Carbon Footprint

21 Following Carbon Footprints: A New Road to Carbon Reduction International Forum 21 Time-related coverage, geographical specificity, technologycoverage, accuracy, precision, completeness, consistency,reproducibility, and data sources Data Quality Requirets Collecting Data (3/5) Criteria Step Primary Activity data and Secondary Data Primary activity data shall be collected from those processesowned, operated or controlled by the organization carryingout the PCF analysis; where the collection of primaryactivity data is not possible or feasible, secondary data shallbe used If the organization carrying out the PCF analysis doescontribute to 10% or more to the upstream GHG emissionsof the product, the primary activity data rule does not applyto upstream suppliers Provisions Clause 7.2 II. Taiwan Specification for Product Carbon Footprint Criteria, Procedure and Application

22 Following Carbon Footprints: A New Road to Carbon Reduction International Forum 22 Calculation (4/5) GHG Emissions x GWP (100-year time horizon) The assessment result must be added up together to obtainGHG emissions in terms of CO2e emissions per functionalunit The GHG emissions shall then be scaled to account for anyminor raw materials or activities that were excluded fromthe analysis Calculation Dividing the unit process Expanding the product system be allocated in a way that reflects other relationshipsbetween the products and functions Allocation Criteria Step The assessment of the impact of GHG emissions shall be theCO2e impact of the GHG emissions over the 100-yearperiod (i.e. the 100-year assessment period). Time Period for Assessing GHG Emissions Provisions Clause Criteria, Procedure and Application II. Taiwan Specification for Product Carbon Footprint

23 Following Carbon Footprints: A New Road to Carbon Reduction International Forum 23 Step Criteria Additional Requirets for Third-party Reports Verification and Claims of Conformity Validity of the assessment: 2 years Verification and claims of conformity: 1. Third Party Certification 2. Other Party Verification 3. Self Verification When results of the LCA are to be communicated to anythird party, a third-party report shall be prepared The repot shall include the following: general aspects, goalof assessment, scope of the assessment, life cycle inventoryanalysis…etc. Reporting (5/5) Confiden- tiality When communicating in B2B transactions, confidentialinformation relating to the producer or the productionoperations may be involved The parties involved shall draw proper legal instruments toguarantee confidentiality Provisions Clause Criteria, Procedure and Application II. Taiwan Specification for Product Carbon Footprint

24 Following Carbon Footprints: A New Road to Carbon Reduction International Forum 24 Development basis: Taiwan specification was developed mainly based on the criteria in PAS 2050; provisions or principles in ISO/WD and TS Q 0010 were also taken into consideration LCA Methodology: based on ISO 14040/44, which is the same as PAS 2050, TS Q 0010, ISO/WD Data Collection Principles and Quality Rules: the same as PAS 2050 and ISO/WD , including the setting of system boundary, data quality requirements, allocation, and the acquisition of primary activity data and secondary data Main difference from PAS 2050: Taiwan specification does not include the emissions arising from direct/indirect land use change. Such difference may affect the PCF assessment of agricultural products and food products 1.Compariability with other or future standards Features II. Taiwan Specification for Product Carbon Footprint

25 Following Carbon Footprints: A New Road to Carbon Reduction International Forum 25 LCA methodology in accordance with ISO AND ISO is subject to inherent limitations and trade-offs involving a number of subjective choices. These include e.g. the establishment of system boundaries, the availability and selection of appropriate data sources, allocation rules, transport and disposal scenarios and assumptions regarding the user behavior. Many choices are rough approximations to the real world bearing in mind e.g. that supply or transport chains can change quickly and that the use of a product can vary considerably. Energy mixes and conversion factors are different in different countries. Using average data may be practical to avoid the indication of region or country specific product carbon footprints but introduces a further deviation from the true values. Consequently, the LCA methodology may not deliver sufficiently precise figures allowing to differentiate between products (differing by, say, less than 30-50%) as a result of limitations of LCA methodology. In addition, product carbon footprint figures will be normally only comparable within one scheme as the methodological choices between practitioners will be typically different. 2. ISO/WD Limitations of LCA Methodology Features II. Taiwan Specification for Product Carbon Footprint

26 Following Carbon Footprints: A New Road to Carbon Reduction International Forum Material Contribution and threshold Any one source of GHG emissions less than 1% is considered non- material and could be excluded (cut off); the total excluded GHG emissions cannot exceed 5% (95% of the expected life cycle GHG emissions of a product must be accounted Where a single source of GHG emissions accounts for more than 50% of the potential life cycle GHG emissions of a product, the 95% threshold rule shall apply to the remaining GHG emissions For the use phase of a product along, at least 95% of the potential life cycle emissions of the use phase Features II. Taiwan Specification for Product Carbon Footprint

27 Following Carbon Footprints: A New Road to Carbon Reduction International Forum 27 Cut off can not exceed 5% Another 5% cut off is allowed for use phase along Use phase 100% If the expected assessment of life cycle GHG emissions is determined to be less than 100%, the assessed emissions shall be scaled up to 100%. Where single emission source accounted for more than 50% of the potential PCF The 95% threshold rule is applied to the remaining GHG emission sources 95% Threshold Rule of PAS 2050 II. Taiwan Specification for Product Carbon Footprint

28 Following Carbon Footprints: A New Road to Carbon Reduction International Forum The minimum requirements to use primary activity data (Taiwan Specification and PAS 2050) Primary activity data shall be collected from those processes owned, operated or controlled by the organization carrying out the footprint analysis. Where the organization carrying out the footprint analysis does not contribute 10% or more to the upstream GHG emissions of the product or input prior to its provision to another organization or the end-user, the primary activity data requirement shall apply to the emissions arising from those processes owned, operated or controlled by the first upstream supplier that does contribute 10% or more to the upstream GHG emissions of the product or input. The primary activity data requirement shall not apply to downstream emission sources. Features II. Taiwan Specification for Product Carbon Footprint

29 Following Carbon Footprints: A New Road to Carbon Reduction International Forum 29 The quantification of product carbon footprint is mainly based on the methodology of LCA. Case studies and capacity building related to LCA practices can facilitate the implementation of carbon footprint calculation. The uncertainty that arises from database selection, inventory analysis and data quality variation has long been an issue to life cycle assessment and will also be obstacles to carbon footprint calculation. PAS 2050 is effective until 2010, if not adopted as a British Standard. Other existing standards related to product carbon footprint are very likely to be terminated or replaced once ISO is published. ISO appears to be a key standard for carbon footprint calculation. Taiwan Specification for Product Carbon Footprint can serve as a normative document to provide a methodological guidance for the calculation of product carbon footprints. The specification is suggested to be only effective until ISO (or relevant CNS) is published. Conclusion

30 Following Carbon Footprints: A New Road to Carbon Reduction International Forum 30 Thank You! Q&A Further inquiry:


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