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World Resources Institute. Greenhouse Gas Accounting: GHG Protocol Initiative and ISO. GHG Protocol/ISO Comparison. GHG Protocol/ISO Comparison. Key messages. Avoid creating competing standards Don’t reinvent the wheel! Base organization/project parts on GHG Protocol

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Presentation Transcript
slide1

World Resources Institute

Greenhouse Gas Accounting:

GHG Protocol Initiative and ISO

slide4

Key messages

  • Avoid creating competing standards
    • Don’t reinvent the wheel!
    • Base organization/project parts on GHG Protocol
    • Use GHG Protocol terminology to avoid confusion
  • Form follows function
    • Define the purpose of the standards first and design accordingly
slide5

Key messages

  • Separate project, corporate & verification standards
    • Verification standard should be stand-alone
    • Project standard needs to be on a slower track
  • A good process is crucial
    • Get the balance of participants/decision makers right e.g., business, NGO’s, governments, North/South, others
    • Understanding of issues and concepts is a pre-requisite for informed decision making - this is an iterative process
  • Keep communication channels open with GHGP
slide6

GHG Protocol

Corporate Standard

GHGP Project Standard

Adoption of the Corporate Standard

The GHG Protocol’s impact on GHG accounting practice

California Climate Action Registry

French REGES Protocol

Carbon Disclosure Project

Chicago Climate Exchange

Dow Jones Sustainability Index

EU- ETS

GRI

METI, Japan

Northeast Registry (NESCAUM)

Respect Europe Business Leaders Initiative for Climate Change (BLICC)

Industry Associations (Aluminum, IPIECA, ICFPA, Cement, Iron and Steel)

UK-ETS

U.S. EPA Climate Leaders Initiative

World Wildlife Fund Climate Savers

World Economic Forum Global GHG Register

ISO 14064 is on a good track…

Setting the scene

slide7

Adoption by businesses (those that we know of…)

Adoption by businesses

Automobile ManufacturersFord Motor Company, USAVolkswagen, Germany

CementCemex, MexicoCimpor, BrazilHeidelberger Cement, GermanyHolcim, USA (and worldwide Holcim facilities)Italcementi, ItalyLafarge, France and North AmericaRMC, UKSt. Lawrence Cement Inc., CanadaSiam Cement, ThailandTaiheiyo, JapanVotorantim, Brazil

Consumer Goods ManufacturersBank of AmericaBody Shop, UKCargill, USAEastman Kodak, USAFetzer Vineyards, USA

IBM, USAIKEA International, SwedenJohnson & Johnson, USAMiller Brewing Company, USANike, USANorm Thompson Outfitters, USAPfizer Inc., USARaytheon, USASC Johnson, USASony Electronics, JapanStarbucks Coffee, USAStaples Inc., USASun MicrosystemsTarget Corporation, USA Unilever HPC, USAUnited Technologies Corporation, USA

Energy ServicesBirka Energi, SwedenCinergy, USAEdison Mission Energy, USAENDESA, SpainExelon Corporation, USAFPL Group, Inc., USAGeneral Electric, USAGreen Mountain Energy, USAKansai Electric Power, JapanMirant, USA

N.V. Nuon Renewable Energy, NetherlandsPSEG, USASeattle City Light, USATokyo Gas, JapanWisconsin Electric, USAWe Energies, USA

Oil and GasBP, USANorsk Hydro, Norway Shell Canada, CanadaSuncor, USA

Industrial Manufacturers/ MiningAir Products and Chemicals, Inc. Alcan Aluminum Corporation, USAAlcoa, USABall Corporation, USABaltimore Aircoil, USABaxter International, USABethlehem Steel Corporation, USACODELCO, Chile

DuPont, Inc. Interface, Inc., USA

International Paper, USAITC Inc., India

Lockheed Martin Corporation, USAPhilips & Yaming, ChinaSimplex Paper & Pulp, IndiaSTMicroelectronics, SwitzerlandStoraEnso, FinlandTata Steel, IndiaUnited States Steel Corporation

Non-Government OrganizationsWorld Business Council for Sustainable Development, SwitzerlandWorld Resources Institute, USA

Services500 PPM GmbH, GermanyAstraZeneca, UKCasella Waste Systems, Inc., USADHL, USA European Bank for Reconstruction & DevelopmentPE Europe, GermanyPowerComm, CanadaPrice Waterhouse Coopers, New ZealandVerizon Communications, USA

slide8

Standards

  • OrganizationalBoundaries
  • Operational Boundaries
  • Historic Datum
  • Reporting GHG emissions

Guidance

  • Business goals and inventory design
  • Accounting for GHG reductions
  • Identifying GHG sources
  • Managing inventory quality
  • Verification of GHG emissions

Corporate Standard: what’s in it?

Calculation tools

  • Web-based, user-friendly, step-by-step guidance
  • Build on IPCC methodologies
  • Sector-specific tools developed in industry-led efforts (e.g. cement, pulp & paper, aluminum)

www.ghgprotocol.org

slide9

Revised edition of Corporate Standard

  • To be published early next year, now in final review and design stage
  • The water is cleaner, and the baby is still in the bath!
  • Main changes to the first edition
    • More verification-friendly language (“shall”), which also aims to increase clarity as to what is required to produce a report “in accordance with” GHG Protocol (this does not affect the structure of the document)
    • Increased flexibility in choosing Organizational Boundaries
    • More specificity for indirect emissions from purchased electricity (still a required category)
    • Improved guidance
    • New case studies reflect how accounting practice has advanced in the meantime
    • New guidance chapter: Voluntary Corporate GHG targets
    • New Appendix: Issue piece for companies wishing to account for sequestered carbon
slide10

Project standard: what is it?

Tool to help project developers to account

for GHG reductions made by means of

specific reduction projects (offsets/credits)

slide11

Project Accounting Principles

1. Relevance

2. Completeness

3. Consistency

4. Transparency

5. Accuracy

6. Conservatism

slide12

The Project Quantification Standard

Consists of:

Introduction to GHG accounting

Quantification steps

Baseline procedures

Annexes

Glossary

References

List of contributors

Project Typology – sector-specific guidance

slide13

II: Eight Quantification Steps

1: Describe the project and primary effect(s)

2: Check the eligibility of the primary effect

3: Check the primary effect is additional to legal requirements

4: Undertake a preliminary evaluation of secondary effects

5: Select the baseline scenario

6: Identify and assess the relevance of secondary effects

7: Calculate project reduction and classify based on ownership

8: Develop a monitoring plan (still to come)

slide14

III: Baseline Procedures

Three Baseline Procedures

Project Specific Performance Standard Retrofit

Procedure Procedure Procedure

slide15

Additionality

Uses a three-fold approach

Additional

Initial ‘Additional to Legal Requirements’ Screen

1.

Tests:

Barriers, Investment Ranking

2.

Project specific

Stringency

level

Performance Standard

Retrofits

Only remaining life of equipment

3.

Project GHG Emission less than Baseline GHG Emissions

slide16

GHG Protocol Initiative

Thank You

www.ghgprotocol.org