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Introduction to GHG Accounting, Inventories and GHG Protocol

Introduction to GHG Accounting, Inventories and GHG Protocol. May Ajero and Alvin Mejia CAI-Asia Center. Maynilad Water Services Inc Greenhouse Gas (GHG)/Air Pollution(AP) Accounting Seminar 2-3 February 2010. Objective.

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Introduction to GHG Accounting, Inventories and GHG Protocol

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  1. Introduction to GHG Accounting, Inventories and GHG Protocol May Ajero and Alvin Mejia CAI-Asia Center Maynilad Water Services Inc Greenhouse Gas (GHG)/Air Pollution(AP) Accounting Seminar 2-3 February 2010

  2. Objective introduce the concepts, principles, benefits and applications of GHG/ AP accounting and emissions inventoriesprovide an overview of the GHG Protocol Corporate Standard

  3. I. GHG sectors, sources and gases

  4. Review: Greenhouse Gases absorb radiation at specific wavelengths within the spectrum of radiation (infrared radiation) emitted by the Earth’s surface and by clouds. in turn emits infrared radiation from a level where the temperature is colder than the surface. The net effect is a local trapping of part of the absorbed energy and a tendency to warm the planetary surface. Water vapour (H2O), Carbon dioxide (CO2), Nitrous oxide (N2O), methane (CH4) and ozone (O3) are the primary greenhouse gases in the Earth’s atmosphere. Under Kyoto Protocol – CO2, N2O, CH4, SF6, HFC, PFCs

  5. Greenhouse Gases (GWP) Comparing CO2 and other greenhouse gases

  6. Radiative Forcing of GHGs (1)

  7. Radiative Forcing (2) Source: Ramanathan, V., and G. Carmichael 2008.

  8. Quick Review: Major Sources of GHG Emissions Agriculture Industry Land Use Change and Forestry Waste Energy 8

  9. Air pollution and climate change linkages GLOBAL CLIMATE CHANGE GLOBAL AIR POLLUTION REGIONAL AIR POLLUTION URBAN AIR POLLUTION Air Pollutants N2O VOC CH4 PM NOx SF6 CO CO2 HFC Greenhouse gases covered by Kyoto Protocol PFC SOx Black Carbon

  10. GHG Sectors (a)

  11. GHG Sectors (b) Anthropogenic GHG sources are diverse! • Energy: • Electricity/heat generation (24.5%) • Transportation (13.5%) • Industry (10.4%) • Other fuel combustion (9%) • Fugitive emissions (3.9%) • Industrial processes:GHG as by-product or fugitive emissions • Chemicals and Petrochemicals (23%) • Cement (18%) • Iron and Steel (15%) • Non-Ferrous metals (7%) • Machinery (5%) • Food and Tobacco (5%) • Paper, Pulp and Printing (5%) • Other Industry (24%) • Land-use change: deforestation, cattle ranching • Agriculture: fertilizer application, livestock, manure • Waste: landfills, wastewater / sewage treatment

  12. CO2 Emissions/Capita by Region Source: IPCC Fourth Assessment Report 12

  13. CO2 Emission Characteristics of Selected Countries Source: World Bank. 2008. Towards a Strategic Framework on Climate Change and Development for the World Bank Group: Consultation Draft

  14. Philippines: 1994 GHG Inventory Results 1994 GHG Emissions from the Energy Sector 1994 GHG Emissions (Non-LUCF Sectors) 14

  15. Philippines: 2000 GHG Inventory Results Source: Fr. Jett Villarin slides for SNC consultation workshop, 27 Nov 2009 15

  16. INC (1994) vs SNC (2000) Source: Fr. Jett Villarin slides for SNC consultation workshop, 27 Nov 2009 Overall GHG Emission 2000:19,491.11 Gg CO2-eq

  17. Second National Communication (SNC) Transport Sector How much share of private vs public? How much by cars vs by trucks or by buses? PRELIMINARY – DO NOT CITE. DO NOT QUOTE. 17

  18. II. Value of GHG accounting and reporting 18

  19. Business value of GHG Accounting (1) Risks Opportunities Losses from damages and remediation due to climate change Preventive and adaptive measures that will protect against direct climate change risks Regulatory developments Development of less carbon-intensive processes and products that improve economic efficiency and/or tap new markets “Off balance sheet” environmental risks and liabilities Bank or trade emission reduction credits in anticipation of future carbon constrained regulatory environments Source: WRI. GHG Protocol Corporate Standard Managing GHG risks and identifying reduction opportunities Savings/ Avoidance of Penalties and Costs \ 19

  20. Business value of GHG Accounting (2.a) • The 2007 Corporate Climate Communications Report of the Fortune 500 companies reported 63 percent of companies use the GHG Protocol. • -Corporateregister.com Source: WRI. GHG Protocol Corporate Standard Public reporting and participation in voluntary GHG programs Strengthened relationships with stakeholders/ improved CSR

  21. Business value of GHG Accounting (2.b) Source: Nielsen Company Half the world’s consumers (51%) consider it very important for companies to improve their environmental polices – ahead of other CSR programs that contribute to improving society (42%). -Nielsen Company 21

  22. Business value of GHG Accounting (2.c) Radio Taxis -the world’s first carbon neutral company “They have won £1.2 million (approximately US$2.2 million) worth of new business within six months. They did that by going to companies and saying: “Look, we can be a greener supplier for you.” -Sue Welland, founder and creative director of The CarbonNeutral Company 22

  23. Business value of GHG Accounting (3) Source: WRI. GHG Protocol Corporate Standard Source: Deutsche Asset Management and UNEP Riso Participating in GHG markets, such as the Clean Development Mechanism (CDM) under the Kyoto Protocol Additional funding 23

  24. Business value of GHG Accounting (4) A Mandatory GHG Reduction Program was Established + GHG Accounting and/or Registration baseline 2000 2003 2005 Source: WRI. GHG Protocol Corporate Standard Recognition for early voluntary action baseline protection 24

  25. Other potential reasons Fuel costs Savings from energy efficiency Compliance for regulation Business value of GHG Accounting (5)

  26. III. Compliance to GHG accounting/Emissions Inventories

  27. Emissions Inventories Annex 1 countries are required to submit annually their yearly national greenhouse gas inventory of emissions and sinks every April of following year. Non-Annex 1 countries are encouraged to submit national greenhouse gas inventories together with their National Communication Use of IPCC Guidelines for National Greenhouse Gas Emissions Inventories Philippines has submitted National GHGI for year 1994 (in 2000) and planning to submit GHGI for year 2000 (on-going process) Companies in the Philippines submit air pollution emissions monitoring reports to DENR

  28. Copenhagen Accord • Copenhagen Accord released in December 2009 • Endorsed by the Government of the Philippines • Requires Non-Annex 1 to identify mitigation actions by 31 January 2010 • Requires Non-Annex 1 to report GHG inventories every two years (NatComm) • Requires Non-Annex 1 to report mitigation progress every two years (NatComm)

  29. Philippines: Climate Change Act of 2009 RA 9729 signed by President on 23 October 2009 “AN ACT MAINSTREAMING CLIMATE CHANGE INTO GOVERNMENT POLICY FORMULATIONS, ESTABLISHING THE FRAMEWORK STRATEGY AND PROGRAM ON CLIMATE CHANGE, CREATING FOR THIS PURPOSE THE CLIMATE CHANGE COMMISSION, AND FOR OTHER PURPOSES” Creation of a climate change commission – 3 commissioners (10 years experience on climate change) with an advisory board Climate change office National and Local Climate Change Action Plan

  30. Others Draft EO – Institutionalizing the GHG Inventory Process in the Philippines

  31. IV. GHG Protocol Initiative Corporate Accounting and Reporting Standard 31

  32. GHG Protocol Initiative • Initiated by World Resources Institute (WRI) and World Business Council for Sustainable Development (WBCSD) • Launched in 1998 • Multi-stakeholder partnership: • Businesses (incl. Shell, BP, KPMG, PWC, DNV) • NGOs • Governments • Mission: To develop internationally accepted GHG accounting and reporting standards for businesses and promote their broad adoption 32

  33. GHG Protocol Guidelines and Standards - GHG Protocol Corporate Accounting and Reporting Standard1 13 - GHG Protocol for Project Accounting - GHG Protocol Land Use, Land-Use Change and Forestry Guidance for GHG Project Accounting - GHG Protocol Guidelines for Quantifying GHG Reductions from Grid-Connected Electricity Projects 33

  34. GHG Protocol Initiative: Other publications The GHG Protocol Scope 3 Standard (Draft): As stakeholders request increased disclosure from businesses, companies are being asked to report a more complete picture of their corporate emissions. The GHG Protocol Product Standard (Draft): The Product Standard supports the development of GHG inventories of specific company products and services for the goal of public disclosure. 34

  35. GHG Protocol Initiative: Other publications Other publications Designing a customized GHG calculation tool Hot climate, cool commerce: a service sector guide to greenhouse gas management Working 9 to 5: a guide for small office-based organizations Measuring to manage: a guide to designing GHG accounting and reporting programs 35

  36. Recognition for GHG Protocol GRI reporting – G3 Core Guidelines ISO ISO adopted the Corporate Standard in 2006 as the basis for ISO 14064-I  Specification with Guidance at the Organization Level for Quantification and Reporting of Greenhouse Gas Emissions and Removals

  37. Users Worldwide 37

  38. Call for more private sector involvement http://media.photobucket.com/image/Ban%20Ki-moon/nma0707/July%20Photos/BanKiMoon.jpg GHG Accounting is the first step towards GHG management “The private sector can promote economic growth, spur development and respond to climate change – this is not an either/or proposition…” Ban Ki-moon 38

  39. Principles of GHG/AP Accounting • Keep TRACCC! • Transparency • Relevance • Accuracy • Completeness • Consistency • Co-benefits

  40. CAI-Asia Center www.cleanairnet.org/caiasia May Ajero and Alvin Mejia may.ajero@cai-asia.org alvin.mejia@cai-asia.org Unit 3510, 35th Floor, Robinsons-Equitable Tower, ADB Avenue, Pasig City, Metro Manila, 1605 Philippines

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