Comparison of GHG methodologies: UK, NL, Germany, JRC EC Expert Meeting Brussels 17-18th July 2007 Greg Archer, Director Low Carbon Vehicle Partnership based on UK/ Netherlands/ Germany meeting on 15th June 2007

Summary of methodological approaches (i) UK NL Germany (consultants recommendations) JEC study Fuel Chains Biofuel only Biofuel and biomass for elec + lignocellulosic All significant alternative road fuels and electricity WTW System boundaries All in theory In practice minor emissions from machinery manufacturing & maintenance excluded In practice minor emissions from machinery, manufacturing & maintenance excluded

Summary of methodological approaches (ii) UK NL Germany (consultant recommendation) JEC study Direct land use change All included in theory – 2005 Base In practice limited defaults defined based on IPCC Similar approach to UK in practice but will incl set-aside All included in practice 2007 Base Not included in GHG balance; discussed as GHG payback time. Ref land use is unfertilised grassland in 1 crop rotation (determines N20 emissions). Indirect LUC (incl displacement, crop rotation etc) Not included (ex-post facto analysis + calc) Not included (but pressure to include) Included (risk adder approach for displacement) Ref land use is unfertilised grassland in 1 crop rotation

Summary of methodological approaches (iii) UK NL Germany (consultants recommendation) JEC study Reference residue / waste management Assume zero default with option to prove actual Same approach but biomethane may have a value Assume zero default with no option to demonstrate actual Straw: incorporated Forest residues zero Manure: direct fertilizer Food waste: zero Co-product allocation Substitution except for energy application Market value where substitution and energy not applicable Substitution in theory In practice almost all market value All energy content (lower heating value) Substitution: multiple results for various likely co-product uses. Mixed lignocellulose processes giving fuel + electricity get credit from bio-electricity reference.

Carbon intensity calculation boundaries UK assess ex post Indirect land use Direct Cultivation & Cultivation & land use harvest harvest Feedstock Biofuel Biofuel transport production transport Waste Waste material material Alternative Germany – (recommended) boundaries waste management All exclude minor sources, from: UK + NL + JEC boundaries • Manufacture of machinery or equipment • PFCs , HFCs , SF 6

Conclusions / Next Steps from June 15 mtg Use 1995 IPPC (100year) for global warming potential factors Where international data is available this should be used as basis for defaults e.g. FAO, IPCC, IEA, JRC/EUCAR/CONCAWE Co-product allocation previously agreed as substitution with UK & NL but NL found substitution difficult in practice. UK & NL to share info and review approach to co-product allocation NL to use UK/DE data on co-product allocation to find relative difference between chains using these different approaches NL & UK to calculate carbon intensity for 1 full chain w/o co-product allocation Undertake high level default value comparison DE expect to be able to participate in August