The European Bank for Reconstruction and Development (EBRD) is compensating for the environmental impact of its 2015 Annual Meeting and Business Forum in Tbilisi with carbon credits from the Enguri hydropower plant (HPP). The refurbishment of the Enguri HPP, Georgia’s largest power plant, was financed by the EBRD and involved the increase of the operating capacity of its power generation units. This allows for a better utilisation of Georgia’s hydropower potential, replacing electricity that would otherwise have been produced from fossil fuels, resulting in a substantial reduction of greenhouse gas (GHG) emissions in the country.

The EBRD has consistently offset greenhouse gas emissions related to its Annual Meetings in Istanbul (2013) and Warsaw (2014). This year’s Annual Meeting in Georgia was the first major carbon neutral event in the country. So far, EBRD has managed to secure offsets from a project in the host country, but this is the first time that carbon credits were purchased from a project financed by the EBRD.

Calculating our carbon footprintThe Bank engaged EcoAct1 in support of this year’s carbon neutral initiative. Before the start of the Annual Meeting, EcoAct calculated the event’s carbon footprint, which measures the event’s GHG impact in tonnes of CO2 equivalent emissions (tCO2e). The carbon footprint included emissions relating to travel and lodging of some 2,000 delegates as well as EBRD and local staff, and energy consumed in buildings and hotels used during the event. An estimated 3,000 tonnes CO2 equivalent (tCO2e) was expected to be emitted during the three-day duration of the event, in line with last year’s footprint calculation.

EBRD Carbon Neutral Initiative2015 Annual Meeting and Business Forum, Tbilisi (Georgia)

1 EcoAct is a leading consultancy in climate change strategy for institutions, companies and governments. Its main services include carbon footprinting, IT environmental management tools, carbon neutrality and project development services.

Activities to reduce emissions The EBRD incorporates sustainability into the entire spectrum of its activities as part of the EBRD Sustainable Resource Initiative (SRI). The SRI is an umbrella Initiative that focuses on energy, water and materials efficiency. In the spirit of the SRI, the EBRD is also actively looking to minimise the carbon footprint of its Annual Meeting and Business Forum. However, opportunities to do so are limited due to the international nature of the event. As can be seen in the pie chart on the right, more than 90 per cent of the event’s GHG emissions are due to international travel (flights).

Particular emphasis this year was placed on recycling, such as water bottles and printed materials. The EBRD teamed up with a local NGO, COOP, to recycle and manage waste on site. COOP supplied around 50 bins for the separate collection of paper, glass and plastic bottles. All bins will be donated

to state schools in Georgia who have expressed an interest in recycling, which hopefully will inspire similar initiatives in the future. As the exact impact of these initiatives is difficult to measure and has not been monitored, it was (conservatively) assumed that the ex-ante footprint calculation was not affected by this recycling initiative.

Energy 1% Food 2% Hotels 4% Transport 93%

Carbon credits to compensate emissionsEcoAct also secured the purchase of carbon credits prior to the start of the Annual Meeting and Business Forum from the Enguri Hydropower Plant Rehabilitation project in Georgia. The result of the ex-ante footprint calculation served as a basis to determine the amount of carbon credits necessary to compensate for the unavoidable GHG emissions related to the organisation of the event.

The EBRD has a longstanding relationship with the project as financier and was instrumental in the project’s registration under the Kyoto Protocol Clean Development Mechanism (CDM), a recognised emission reduction standard administered by the United Nations Framework Convention on Climate Change (UNFCCC).

Additional support was subsequently provided to determine the best route to market for the project’s emission reductions that have been realised since 2013 as well as their verification.

The Enguri hydropower plant is located in the Gali region of Abkhazia, in the north-west of Georgia (see map). It is Georgia’s largest power plant, delivering more than 40 per cent of the

country’s electricity needs. The Refurbishment of the Enguri Hydro Power Plant is also the largest CDM project in Georgia (in terms of annual emission reduction potential) and is one of the few active CDM projects in the region.

Carbon neutral certificationThe event’s actual GHG emissions will now be calculated, using participants’ attendance details as well as data related to the energy used in the four different meeting venues: the Parliament Building, the Rustaveli Theatre, the National Georgian Museum and the Youth Palace. Given that the initial carbon footprint calculation was conservative and based on the

results and experience from previous EBRD Annual Meetings, the event can be certified as ‘carbon neutral’ based on the ex-post calculation of the event’s carbon footprint as soon as an equivalent in offsets has been retired. This is expected to happen in June 2015. The figure below summarises the EBRD’s carbon neutral approach.

How to offset? Emissions can be offset by purchasing carbon credits issued in respect of emission reduction projects, leading to a proven reduction in GHG emissions (e.g. energy efficiency or renewable energy projects).

How to ensure quality of projects? Several standards are used to ensure the quality of projects. Examples are the UN-backed Clean Development Mechanism (CDM), the Verified Carbon Standard and the Gold Standard. Emission reductions are verified by third-party auditors, authorised under each respective standard. Project specific information is available on public online registries.

Who is purchasing carbon offsets? Voluntary carbon offset buyers are mainly: 1. Companies 2. International organisations (e.g. the UN) and governments 3. Events (e.g. the Olympics, Expo 2015)

Why offset emissions? Main motivating factors are: communication, stakeholders’ involvement, environmental leadership, Corporate Social Responsibility (CSR) strategy and anticipation of environmental regulations.

Why does EBRD seek to register its Annual Meeting and Business Forum as a carbon neutral event?

The Carbon Neutral Initiative is a voluntary engagement by the EBRD, which fits well with its Sustainable Resource Initiative (SRI). The Bank’s SRI focuses on energy, water and materials efficiency.

Key facts about carbon neutrality

Ex-ante carbon footprint Activities to reduce emissions Carbon credits to compensate unavoidable emissions

Ex-post carbon footprint verification and confirmation of carbon neutrality

Enguri HPP