1. Measuring Greenhouse Gas Emissions 1 Measuring GHG Emissions Energizing Cleaner Production Management Course

2. Measuring Greenhouse Gas Emissions 2 Session Agenda: GHG types and sources GHG Indicator to calculate emissions GHG accounting and reporting

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

4. Measuring Greenhouse Gas Emissions 4 GHG types and sources: Greenhouse Gases

5. Measuring Greenhouse Gas Emissions 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. Measuring Greenhouse Gas Emissions 6 Sources of GHG: industrial processes

7. Measuring Greenhouse Gas Emissions 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. Measuring Greenhouse Gas Emissions 8 GHG Indicator: Methodology 2. Electricity use 1. Fuel use 4. Transport 3. Industrial processes Raw dataConversionAggregationNormalisation GHG emissio n factor Total GHG emission s Normalised GHG emissions

9. Measuring Greenhouse Gas Emissions 9 GHG Indicator: 1. Fuel Use FuelAnnual Fuel Consumption (Tons) Emission Factor t CO 2 t CO 2- equivalent Coal500X1.85=925 Refinery stock 3502X3.25=11382 Petroleum coke 45X3.09=139 TOTAL404712446

10. Measuring Greenhouse Gas Emissions 10 GHG Indicator: 2. Electricity Use Exported electricity is not included in the total ElectricityAnnual electricity consumption (kWh) Emission Factor t CO 2 t CO 2 equivalent Imported1,000,000X0.000618=61.80 Exported100,000X0.000618=6.18 TOTAL900,00055.62

11. Measuring Greenhouse Gas Emissions 11 GHG Indicator: 3. Industrial Processes CO2 is released when lime is burned Emission source Annual consumption (tonnes) Emission Factor t CO 2 t CO 2 equivalent CFC 110.1X3400=340 Lime10,000X0.396=3960 TOTAL4300

12. Measuring Greenhouse Gas Emissions 12 GHG Indicator: 4. Transport Transport mode Annual travel (km) EF tCO 2 / km t CO 2 equivalent Car Petrol 20,0000.00019=3.8 Car Diesel 100,0000.00016=16 Train150,0000.00034=51 TOTAL270,00070.8

13. Measuring Greenhouse Gas Emissions 13 GHG Indicator: Aggregation Sourcet CO 2 equivalent 1Fuel use12446 2Electricity use 55.62 3Industrial process 4300 4Transport70.8 TOTAL16872

14. Measuring Greenhouse Gas Emissions 14 GHG Indicator: Normalisation Normalising factor Annual figures t CO 2 Normalised t CO2 Turnover$ 20,000,000168720.000844 Added value$ 500,000 16872 0.033744 Employees500 1687233.744 Units of production 1,350,000 tonnes 168720.012498

15. Measuring Greenhouse Gas Emissions 15 GHG Indicator: Reporting YearTotal t CO 2 Production (tonnes) Normalised t CO2 1990168721,350,0000.012498 1991188231,500,0000.012549 …. 2002242672,000,0000.012134 43.8% 2.9%

16. Measuring Greenhouse Gas Emissions 16 GHG Indicator: GHG Indicators by sector

17. Measuring Greenhouse Gas Emissions 17 GHG Indicator Quiz Lets test what you have learnt!

18. Measuring Greenhouse Gas Emissions 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. Measuring Greenhouse Gas Emissions 19 GHG Accounting and Reporting The GHG Protocol lists 5 accounting & reporting principles: Relevance Completeness Consistency Transparency Accuracy

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

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

26. Measuring Greenhouse Gas Emissions 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. Measuring Greenhouse Gas Emissions 27 Minimum information to be reported Company and inventory boundary –Organizational boundaries –Operational boundaries –Reporting period GHG Accounting and Reporting: Reporting Emissions

28. Measuring Greenhouse Gas Emissions 28 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 GHG Accounting and Reporting: Reporting Emissions (cont.)

29. Measuring Greenhouse Gas Emissions 29 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 GHG Accounting and Reporting: Verification of GHG Emissions

30. Measuring Greenhouse Gas Emissions 30 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 Summary

31. Measuring Greenhouse Gas Emissions 31 Measuring GHG Emissions Thank you for your attention!

32. Measuring Greenhouse Gas Emissions 32 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) Acknowledgements