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1 World Trade Organization Geneva February 17, 2010 Harmonization of Product Carbon Footprint Standards 1.

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Presentation on theme: "1 World Trade Organization Geneva February 17, 2010 Harmonization of Product Carbon Footprint Standards 1."— Presentation transcript:

1 1 World Trade Organization Geneva February 17, 2010 Harmonization of Product Carbon Footprint Standards 1

2 History of GHG Protocol Initiative Need for New Standards Overview of GHG Protocol and Product/Supply Chain Initiative Harmonization Efforts Next Steps Presentation Outline 2

3 3 History of GHG Protocol Initiative 3

4 4 Convened in 1998 by WRI and WBCSD A multi-stakeholder partnership of businesses, NGOs, governments and others convened by WRI and WBCSD Mission: Develop internationally accepted GHG accounting and reporting standards and to promote their use worldwide Greenhouse Gas Protocol Initiative

5 5 Greenhouse Gas Corporate Protocol The most widely used international accounting standard for Corporate GHG accounting Provides the accounting framework for nearly every GHG standard and program in the world - from the International Standards Organization to The Climate Registry

6 6 Programs Based on GHG Corporate Standard Carbon Disclosure Project (CDP) The Climate Registry California Climate Action Registry Chicago Climate Exchange Dow Jones Sustainability Index EU Emissions Trading Scheme French REGES Protocol Global Reporting Initiative METI, Japan Mexico GHG Program Respect Europe Business Leaders Initiative for Climate Change (BLICC) International Trade Associations (Aluminum, IPIECA, ICFPA, Cement, Iron and Steel) U.S. EPA Climate Leaders Initiative World Wildlife Fund Climate Savers World Economic Forum Global GHG Registry ISO Part 1 U.S. Department of Energy (1605b) © WRI & WBCSD, 2010

7 7 GHG Protocol Publications

8 8 Need for New GHG Standards 8

9 Mission of Product/Supply Chain Initiative 9 Why Are New GHG Standards Necessary? 9© WRI & WBCSD, 2010 Increase in requests by stakeholders for supply chain and product GHG information Increase in number of GHG accounting initiatives and regulations – by companies, sectors, organizations, and governments Increase in understanding by business of the risks and opportunities of carbon management in supply c hains Need from business for an internationally -accepted, standardized and credible approach to measure GHG emissions

10 10 GHG Protocol Supply Chain Survey Results 10

11 11 New Standards Under Development Scope 3 Accounting & Reporting Standard To quantify, manage and report GHG emissions in the corporate value chain (Scope 3) Build on GHG Protocol Corporate Standard To quantify, manage, and report the life cycle GHG emissions of individual products Build on existing life cycle assessment standards (PAS ISO 14044) Product Life Cycle Accounting & Reporting Standard 11

12 12 Overview of GHG Protocol Product / Supply Chain Initiative 12

13 13 Process Structure WRI/WBCSD Secretariat Steering Committee (25 members) Product Technical Working Groups ( 100+ members) Scope 3 Technical Working Groups ( 60+ members) Stakeholder Advisory Group (1,200+) Product StandardScope 3 Standard 13 Road Testing (70 companies) © WRI & WBCSD, 2010

14 14 Setting Boundaries: What do you include in scope 3? Steering Committee Members Alcan Packaging Carbon Disclosure Project Carbon Trust Carnegie Mellon University Dow Chemical Company DNV Energy Research Institute, China Environmental Defense Fund ERM European Commission Joint Research Centre General Electric Harvard School of Public Health Natura Natural Resources Defense Council New Zealand Ministry of Agriculture and Forestry Product Carbon Footprint Pilot Project, Germany PricewaterhouseCoopers Shell Tsinghua University, China UNEP/SETAC Life Cycle Initiative Unilever UK Department for Environment, Food and Rural Affairs US Environmental Protection Agency ISO TC207 US TAG /Georgia Pacific Walmart 14

15 15 Development of 1 st Draft Standards 170+ members of Technical Working Groups developed draft standards Consultation / Approval by Steering Committee Five Stakeholder Workshops held in Berlin, London, Guangzhou, Beijing and Washington D.C. Public Comment Period mid-November – end of December 2009 Participation by numerous experts engaged in ISO and PAS 2050

16 Road Testing 16 More than 70 companies road testing one or both of the standards Wide range of sizes, sectors, and geographical locations Road testing will take place from January to June Each company will provide detailed feedback and a case study on their experience with the standard

17 Product Standard Road Testing Companies 3M CompanyItalcementi Group Acer IncJohnsonDiversey AkzoNobelLenovo Alcan PackagingLevi Strauss & Co. AlcoaMitsubishi Chemical Corporation Anvil Knitwear, Inc.Natura Cosméticos Baoshan Iron & Steel CO. LTDNew Belgium Brewing BASF SENingbo Youngor Sunrise Textile Dyeing & Finishing Co., ltd. BelkinPepsiCo, Inc. Belron InternationalProcter & Gamble Eurocor Bloomberg LPRogers Communications BT plcShanghai Zidan Food Packaging and Printing Co., Ltd. CA, Inc.Shell International Petroleum Company Ltd Colors Fruit SA (Pty) LtdSiemens AG Deutsche Post DHLSuzano Pulp and Paper Deutsche Telekom AGSwire Beverages DuPontTAL Apparel Limited Eclipse Networks (Pty) Ltd. Tech-Front (Shanghai) Computer Co., Ltd. / Quanta Shanghai Manufacturing City EcolabTennant Company General ElectricVerso Paper Corp. Goldn Plump Poultry, LLCWeyerhaeuser US GSA Federal Acquisition ServiceWorldAutoSteel 17

18 List of Products (to date) 2.5 MW Wind TurbineFood Packaging Product Advanced High Strength SteelsForged Aluminum Wheel AnvilSustainable Transitional Cotton TeeHome insurance Bloomberg Flat PanelHot rolled coil Bresso Packaged Cream CheeseIndustrial Chemical Calcestruzzo (concrete)Just BARE chicken Chemicals for a T-Shirt ProductionMagazine Citrus Fruit Exports from South Africa to the UKMen's Levi Jeans Coated Freesheet PaperMPLS (Multi-Protocol Label Switching) network product Coca-Cola Branded ProductsNon-iron shirt Conserve Smart AVNotebook Computer Cosmetics and soap productsRestaurant Meals Cotton bleached fabricScotchkote Spray in Place Pipe 269 Coating Desktop Computer SIPROTEC 4 (Universal Differential Protection Relay for Two Line Ends) Detergent T3 with ec-H2O, floor scrubber with chemical free cleaning technology Deutsche Post PLUSPÄCKCHEN; DHL Express TDIVehicle windscreen replacement/repair European Disposable Diaper Size 4Videoconferencing system Fat Tire Amber AleWood Product 18

19 19 Timeline 19 DateActivity November 2007 Survey and consultations to assess need for new standards September 2008 Steering Committee Meeting #1 (Washington DC) Technical Working Group Meeting #1 (London) January 2009 Working groups begin drafting March 2009 Steering Committee Meeting #2 (Geneva) June 2009 Technical Working Group Meeting #2 (Washington DC) August 2009 Stakeholder webinar and comment period October 2009 Steering Committee Meeting #3 (Washington DC) November - December 2009 First draft of standards released for stakeholder review Five stakeholder workshops (in Berlin, Germany; Guangzhou, China; Beijing, China; London, UK; Washington, DC, USA) Stakeholder comment period on first drafts January - June 2010 Road testing by several companies Summer 2010 Public comment period on second drafts December 2010 Publication of final standards

20 Goal and Scope 20 Primary goal of the standard is public disclosure Implementing the standard may support additional business goals including: Identification of GHG reduction opportunities Performance tracking Supply chain engagement Product differentiation The standard is sufficiently flexible to support GHG quantification and reporting for many product (and service) types Goal and Scope of Product Standard

21 Goal and Scope This standard does not fully support product comparison Valid product comparison, comparative assertion, and labeling requires a greater degree of prescriptiveness than is provided in the standard The standard will include guidance on how programs, product category rule (PCR) developers and organizations can specify additional prescriptiveness so that valid product comparisons and claims can be made 21 Goal and Scope of Product Standard

22 22 Harmonization 22

23 23 Reduce costs for business Provide confidence in the marketplace Move towards valid comparison Drive the availability of quality data Enable business to drive GHG reductions What One Harmonized Standard Can Accomplish 23

24 24 3 standards exist or are in development PAS 2050 was first released in 2008 ISO is in development GHG Product Life Cycle Standard is in development Current version of standards are generally aligned GHG Protocol, ISO, and PAS 2050 will continue to work towards harmonization over the coming year Room in marketplace for more than one standard with aligned methodology (e.g. ISO ) Drive Towards Harmonization of Standards 24

25 25 Next Steps 25

26 26 WRI and WBCSD, in collaboration with the Steering Committee and Technical Working Groups, will: Revise draft standards based on feedback received stakeholder workshops, comment period and road testing Continue dialogue and provide comments into ISO and PAS 2050 processes Circulate second drafts for public comment in Summer 2010 Revise second drafts based on feedback received Publish final standards in December 2010 Finalizing Draft Standards 26

27 For copies of any GHG Protocol Publication, please see: For copies of the draft Scope 3 and Product Standards, please see: supply-chain-standard supply-chain-standard For updates on the standard development process, please join the stakeholder advisory group 27 GHG Protocol Standards & Publications

28 28 Thank You 28 Andrea Brown-Smatlan

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