1. Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE) CGE Training Materials National Greenhouse Gas Inventories Industrial Processes Sector Version 2, April 2012

2. These training materials are suitable for people with beginner to intermediate level knowledge of national greenhouse gas (GHG) inventory development. After having read this Presentation, in combination with the related documentation, the reader should: a)Have an overview of how emissions inventories are developed for the industrial processes sector; b)Have a general understanding of the UNFCCC and IPCC guidelines; c)Be able to determine which methods suits their country’s situation best; d)Know where to find more detailed information on the topic discussed. These training materials have been developed primarily on the basis of methodologies developed by the IPCC; hence the reader is always encouraged to refer to the original documents to obtain further detailed information on a particular issue. Target Audience and Objective from Training Materials Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE) 2

3. Acronyms NEUNon-Energy Uses EFEmission Factor EFDBIPCC Emission Factor Database CBIConfidential Business Information Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE) 3

4. Outline of course – Industrial Processes Definitions (slide 3) Approaches and steps Revised 1996 IPCC Guidelines (slide 5) IPCC Good Practice Guidance (2000) (slide 29) Problems in using guidelines, and recommendations (slide 41) 4 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

5. Non-energy-related physical and chemical processes in production activities leading to transformation of raw materials and emissions of greenhouse gas (GHG) (e.g. decomposition reactions). Non-energy uses (NEU) of feedstock in process reactions or stage processes that do not only release heat but also act predominantly as reducing agent (e.g. metallurgical coke in the smelting of ores in metal production). The energy/heat required for initiating and/or sustaining the chemical reaction kinetically and thermodynamically is accounted for under energy sector. Definitions (Revised 1996 IPCC Guidelines) 5 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

6. Feedstock delivered to petrochemical plants and used for manufacture of other products and not for energy purposes (e.g. use of natural gas or other fossils in the manufacture of ammonia). Production-related emissions are NOT classified under the industrial processes sector but under energy sector are GHGs released from fuel combustion of feedstock in production activities as sources of energy forms of energy (i.e. heat, process steam or electricity generation). Definitions (Revised 1996 IPCC Guidelines) (cont.) 6 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

7.  Cement production - section 2.3.1  Lime production - section 2.4.1  Soda ash production and use - section 2.6.1  Ammonia production - section 2.8.1 and 2.8.2  Silicon carbide - section 2.11.1  Calcium carbide - section 2.11.2  Iron and steel - section 2.13.3.2  Ferro alloys - section 2.13.5.1  Aluminium - section 2.13.5.1. Revised 1996 IPCC Guidelines – Approach and Steps Differentiating Non-energy and Energy-related Emissions (source: IPCC 1996 GL vol.3) 7 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

8. 8 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE) Differentiation of Non-Energy and Energy-related Emissions in the Industrial Processes Sector: Illustration based on Revised 1996 IPCC Guidelines (vol. 3)

9. Tools for classification: a)The UNFCCC GHG inventory software for non-Annex I Parties (electronic version of IPCC worksheets) b)IPCC Emission Factor Database (EFDB). Revised 1996 IPCC Guidelines – Approach and Steps Source and Sub-source Categories and Disaggregation 9 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

10. 10 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE) Sub-source Categories/Disaggregation: Illustration with EFBD and UNFCCC software (Revised 1996 IPCC Guidelines)

11. GHGs from the IP sector: (a) CO 2, CH 4, N 2 O (b) HFCs, PFCs, SF 6 (c) SO 2, CO, NO x, NMVOCs. The UNFCCC inventory software “long summary” table specifies all the relevant GHGs for the various source categories required to be reported. They represent a ready source of identification of relevant GHGs for sources and sub-sources of the various sectors. 11 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE) Revised 1996 IPCC Guidelines – Approach and Steps Relevant Source Categories

12. General equation: TOTAL ij = AD j x EF ij a)where: TOTAL ij = process emission (tonnes) of gas i, from industrial sector j AD j = amount of activity or production of process material (activity data) in industrial sector j (tonnes/yr) EF ij = emission factor (EF) associated with gas I, per unit of activity in industrial sector j (tonne/tonne). Revised 1996 IPCC Guidelines – Approach and Steps General Estimation Methodology 12 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

13. For certain industrial processes, more than one estimation methodology is presented. These are: Simplified approach, referred to as Tier 1 More detailed methodology, referred to as Tier 2. Revised 1996 IPCC Guidelines – Approach and Steps Choice of Methods 13 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

14. Several options are also provided for certain industrial processes under Tier 1, such as Tier 1a, 1b, 1c, based on data availability and suitability of methods. Order of preference for Tier 1 methods is 1a > 1b > 1c. Encourages country-specific methods, documented and adequately referenced. Revised 1996 IPCC Guidelines – Approach and Steps Choice of Methods 14 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

15. 2B1 – Ammonia production (CO 2 ) Tier 1a – AD as natural gas consumption (m 3 ) and EF (kgC/m 3 ) Tier 1b – AD as ammonia production (tonnes) and EF (tonne CO 2 /tonne NH 3 ) 2B4 – Calcium Carbide Production (CO 2 ) T1a – Consumption of petroleum coke (tonnes) and EF (tonne C/tone Coke type) T1b – Production of carbide. Revised 1996 IPCC Guidelines – Approach and Steps Sample Tiers by Sub-source Categories 15 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

16. 2C – Metal production (Iron and Steel, Al, Ferro-alloys) Tier 1a – Consumption of reducing agent (tonnes) and EF (tonne C/tonne reducing agent) Tier 1b – Production of the metal (tonnes) and EF (tonne CO 2 /tonne metal). Revised 1996 IPCC Guidelines – Approach and Steps Tiers by Sub-source Categories 16 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

17. PFCs from aluminum production Tier 1a – Direct plant emissions data Tier 1b – Estimation based on plant measurements and empirical estimation Tire 1c – Based on aluminium production (tones) and default emission factor (kg/tone Al). Revised 1996 IPCC Guidelines – Approach and Steps Tiers by Sub-source Categories 17 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

18. 2E – HCFC manufacture (HFC-23 release) a)Tier 1 – AD (total production in tonnes) and Default EF (% of total production) b)Tier 2 – Direct emissions from plant specific measurements using standard methods 2F – Consumption of ozone depleting substances (ODS) substitutes (HFCs, PFCs and SF 6 ) a)Tier 1a and Tier b – Potential emissions b)Tier 2 – Actual emissions. Revised 1996 IPCC Guidelines – Approach and Steps Tiers by Sub-source Categories 18 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

19. Plant-level measurements or direct emissions reports with documented methodologies Where direct measurements are not available, estimations may be based on calculation with plant-specific data. Revised 1996 IPCC Guidelines – Approach and Steps Choice of Activity Data 19 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

20. If there is a lack of activity data at the national level, use: International data sets (United Nations data sets and industry associations) National databases where available from appropriate government ministries (e.g. statistics services, environment ministry, etc.) Standard production statistics from national statistical publications Note that there can be a conflict between activity data collected from various Sources Revised 1996 IPCC Guidelines – Approach and Steps Choice of Activity Data 20 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

21. Process-reaction-based EFs (stoichiometric ratios) Production-based emission factors Technology-specific emission factors Reported country-/region-specific plant-level measurements IPCC Emission Factor Database (EFDB), a summary for process-reaction-based and technology-based EFs Revised 1996 IPCC Guidelines – Approach and Steps Choice of Default Emission Factors 21 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

22. Illustrate Use of Emission Factor Database (EFDB) for IP Sector IPCC 1996GL Approach and Steps 22 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

23. Comparability of IPCC Technology-based Default EF and GPG2000 Plant-level EF The Case of Aluminium Production Inventory in Ghana 23 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

24. Good Practice Activity Data Plant-level EF based on Tier 1a method 24 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

25. Consumption of Reducing Agent Anode carbon 25 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

26. Net Carbon Consumption 26 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

27. Process parameter Country-specific (plant level Tier 2) - 7-year average IPCC default including baking emissions (5%) Net carbon consumption assuming 98% purity of anode carbon (tonne C/tonne) 0.445 Emission factor (tonne CO 2 /tonne Al) 1.631.58 % difference+3.5% Comparability of Good Practice Plant level and IPCC default 27 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

28. Emissions Estimating and Reporting Use of UNFCCC GHG Inventory Software IPCC 1996GL Approach and Steps 28 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

29. Good Practice Guidance and Uncertainty Management in National Greenhouse Gas Inventories (GPG 2000) – Industrial Processes Sector Approach and Steps 29 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

30. To produce GHG inventories that neither overestimate nor underestimate emissions so far as can be judged based on the principle of TCCCA, namely: T: Transparency C: Consistency over time C: Completeness C: Comparability A: Accuracy. GPG 2000 Approach and Steps Good Practice Principles 30 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

31. To use limited resources more efficiently for key sources To reduce levels of uncertainty To improve reporting and documentation To apply quality assurance and quality control (QA/QC) and improve transparency. GPG 2000 Approach and Steps Good Practice Principles 31 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

32. The GPG 2000: Identifies potential IP sector key categories Provides decision-tree analysis for the selected sources Describes category-specific good practice methods in adapting Revised 1996 IPCC Guidelines to country-specific circumstances GPG 2000 Approach and Steps Choice of Methods 32 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

33. Defines tier numbers for alternative names of (unnumbered) methods described in the Revised 1996 IPCC Guidelines Provides good practice guidance for various tier levels of assessment (Tier 1, 2, 3) for selected source categories. GPG 2000 Approach and Steps Choice of Methods (cont.) 33 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

34. 2A1 – CO 2 Emissions from Cement Production 2A2 – CO 2 Emissions from Lime Production 2C1 – CO 2 Emissions from the Iron and Steel Industry 2B2 and 2B3 – N 2 O Emissions from Adipic Acid and Nitric Acid Production 2C3 – PFCs Emissions from Aluminum Production 2C4 – Sulphur hexafluoride (SF 6 ) emissions from Magnesium Production 2E1 – HFC-23 Emissions from HCFC-22 Manufacture GPG 2000 Approach and Steps Potential Key Categories 34 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

35. 2F(1-5) – Emissions from Substitutes for Ozone Depleting Substances (ODS substitutes for HFCs and PFCs used in refrigeration, airconditioning, foam blowing, fire extinguishers, aerosols, solvents) 2F7 – SF 6 Emissions from Electrical Equipment 2F8 – SF 6 Emissions from Other Sources of SF 6 2E3 – SF 6 Emissions from Production of SF 6 2F6 – PFC, HFC, and SF 6 Emissions from Semiconductor Manufacturing. GPG 2000 Approach and Steps Potential Key Categories (cont.) 35 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

36. Decision Trees, and Selection Criteria for Methods and Structured Tier Levels 36 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE) GPG 2000 Approach and Steps

37. 2A1 – Cement production CO 2 Figure 3.1 p 3.11 2C1 – Iron and Steel Production (CO 2 )Figure 3.2 p 3.21 2B1 and 2B2 – Nitric Acid and Adipic Acid (NO 2 ) 2C1 – Aluminum production (PFC) Figure 3.4 p 3.32 Figure 3.5 p 3.40 2C – Use of SF 6 in magnesium production (SF 6 )Figure 3.6 p 3.49 2E and 2F – ODS SubstitutesFigure 3.11 p 3.80 GPG 2000 Approach and Steps Decision Trees and Selection Criteria for Methods and Tier Levels 37 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

38. 38 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

39. 39 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

40. 40 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

41. Sample Illustrations of Tier Level Methods in Adapting IPCC 1996GL Based on National Circumstances 41 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE) GPG 2000 Approach and Steps

42. The problems encountered in using IPCC 1996GL and available GPG options are summarized in this section. The impact of the problem on inventory preparation and practical approaches recommended, and/or the GPG Options, are provided in the notes. 42 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE) Problems Encountered in Using IPCC 1996GL and GPG 2000, and Recommendations

43. Difficulty in disaggregation of country-relevant sources into IPCC categories, particularly sub-source categories not listed in the Revised 1996 IPCC Guidelines. The “mapping technique” is a practical approach recommended for ease of identification and disaggregation of country sources into IPCC source categories. The Handbook provides IPCC disaggregation and corresponding probable national emission sources. Potential Problems in Preparing IP Sector Inventory 43 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

44. The Handbook presents a sample of mapping national source categories and IPCC source classification. The table helps to easily identify corresponding IPCC source categories for each probable national emission source, thus facilitating correct disaggregation. 44 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE) Mapping National Industry Classification with IPCC Source Categories

45. Direct reporting of emissions without AD and/or EF to national institutions responsible for data collection because of confidential business information (CBI). Impact on inventory preparation Reduces transparency and comparability Recommended approach/GPG 2000 Option GPG recommends plant-level verification and assessment of the measurement standards and QA/QC plan of the industry. Potential Problems in Preparing IP Sector Inventory Activity Data Collection and CBI 45 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

46. The reporting of industrial process emissions from non-energy use (NEU) of feedstock produced in combination with fuel combustion under energy sector due to the difficulty in differentiation and possible double counting of CO 2. Direct plant-level measurement and reporting of industrial process emissions of CO 2 from chemical processes or stage processes in combination with fuel combustion emissions from energy uses of feedstock (e.g. CO 2 emissions from CaCO 3 decomposition and metallurgical coke oxidation in Solvay process). Impact on inventory preparation Underestimation of the contribution of IP sector to national emissions (e.g. the use of natural gas in ammonia production, and coke as reducing agent in iron and steel production). Recommended approach/GPG 2000 Option GPG2000 recommends stoichiometric estimation of the NEU and subtraction from the energy statistics to avoid double counting. Potential Problems in Preparing IP Sector Inventory Emissions Estimation Methods and Reporting 46 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

47. Where technology-specific or plant-level data are not available, EF(default) are based on stoichiometric ratios of process reactions. Potential Problems in Preparing IP Sector Inventory Inappropriateness of Stoichiometric Ratios as EFs 47 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

48. Lack of development of plant-level EFs, which leads to the estimation of EFs based on top-down ratios calculated as EF = Emissions/Aggregate AD. Impact on inventory preparation EFs estimated based on the aggregate AD is basically a IPCC 1996GL IPCC Tier 1 approach. It lacks transparency and comparability and the method is not considered good practice. Recommended approach/GPG 2000 Option GPG2000 provides good practice based on “decision tree” in applying IPCC 1996GL to various national circumstances. Potential Problems in Preparing IP Sector Inventory Lack of Emission Factors 48 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

49. Sample Source Category Estimations 2A1 Cement Production 2A2 Lime Production 2A1 Limestone and Dolomite Use 2C1 Iron and Steel Reference Table 2 IP Handbook "GPG 2000 Improvements in IP Sector Inventory 49 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

50. Other Specific Problems Encountered in the Use of IPCC 1996GL Suggested Approaches/Options 50 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

51. Inappropriate use and/or limited use of notation keys (NO, NE, NA, IE, NE) in UNFCCC reporting Table 1 and Table 2. This results in lack of transparency and does not address completeness of the inventory coverage. Potential problems in preparing IP Sector Inventory Notation Keys in UNFCCC Reporting Tables 1 and 2 51 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

52. NO (not occurring) for activities or processes that do not occur for a particular gas or source/sink category within a country. NE (not estimated) for existing emissions and removals which have not been estimated. NA (not applicable) for activities in a given source/sink category which do not result in emissions or removals of a specific gas. IE (included elsewhere) for emissions and removals estimated but included elsewhere in the inventory (Parties should indicate where the emissions or removals have been included). C (confidential) for emissions and removals which could lead to the disclosure of confidential information. Completeness and Transparency in Reporting – Use of Notation Keys 52 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

53. Production data on large point sources may be available in various national institutions in data sets that are not easily converted to greenhouse gas inventory data. Where available, mandatory or voluntary plant-level data are reported as total emissions without relevant AD and EFs. Potential problems in preparing IP Sector Inventory Activity Data Collection and Reporting 53 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

54. Mandatory industry reports (e.g. annual environmental reports) provide only emissions estimates without AD and/or EF. Lack of IPCC default EFs due to differences in IPCC source and sub-source categories and disaggregation of country-relevant sources. Potential Problems in Preparing IP Sector Inventory Lack of Emission Factors 54 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

55. National institutions and industry associations collect and present data in formats not appropriate for GHG estimation (because they are normally aggregated in data sets relevant for the purposes for which they were collected). Limited awareness among industry/industry associations about opportunities under the Convention and therefore lack of motivation to develop capacity for reporting GHG inventories. Potential Problems in Preparing IP Sector Inventory Institutional Arrangements 55 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

56. Lack of institutional arrangements and clarity over roles and responsibilities of experts carrying out the technical studies. Lack of legal and institutional authority to demand data from industry to carry out the inventories (reporting is basically voluntary). Potential Problems in Preparing IP Sector Inventory Institutional Arrangements (cont.) 56 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

57. Non-involvement of universities and/or research centres in climate change efforts that could develop into a more sustainable inventory system. Lack of mainstreaming of climate change data collection by national statistical services and industry associations. Lack of QA/QC and uncertainty analysis by data collection institutions. Potential Problems in Preparing IP Sector Inventory Institutional Arrangements (cont.) 57 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

58. Establish a national working group of relevant stakeholders for plant-level verification and peer review of the inventory report. Organize a capacity-building seminar for all institutions and relevant GHG- contributing industries to disseminate the IP inventory data sets, to inform about the need for QA/QC and plant-specific good practice in developing and reporting AD and EFs in greenhouse gas inventory data sets. Institutional Arrangement Problems How a country could benefit from capacity-building 58 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

59. Adapt the Revised 1996 IPCC Guidelines and GPG 2000 and develop country- specific workbooks documenting methods, AD, EFs to increase transparency and preserve institutional memory. In a capacity-building workshop, disseminate information about the opportunities for emission reduction under the Convention and the financing mechanisms under the Protocol to encourage industry participation. Institutional Arrangement Problems Recommended capacity-building (cont.) 59 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

60. Review and Assessment of Activity Data and Emission Factors Data Status and Options 60 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

61. GPG 2000 Approach and Steps Inventory Quality Improvement and Uncertainty Reduction QA/QC Approach GPG 2000 presents a systematic approach to default uncertainty estimations for various national circumstances based on decision trees. For instance, in the case of cement production, a detailed approach is provided in Table 3.2, which is based on Decision Tree Figure 3.1. 61 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)

62. Thank you! 62 Training Materials for National Greenhouse Gas Inventories Consultative Group of Experts (CGE)