ghg protocol initiative standards & guidance november 1 2002 cop8, new delhi, india world...
TRANSCRIPT
GHG PROTOCOL INITIATIVEStandards & Guidance
November 1 2002COP8, New Delhi, India
World Resources Institute
Some background….
Convened in 1998 by WBCSD and WRI
Mission:
To develop international GHG accounting and reporting standards for business through an inclusive and transparent multi-stakeholder process
The GHG Protocol Initiative has 2 modules:
Corporate inventory module
GHG mitigation projects module
Setting the scene
Some background: Corporate Inventory
350+ stakeholders contributed and reviewed corporate standard• Businesses
• NGOs (WWF, Climate Neutral Network, TERI…)
• Governments (US EPA, Canada, UK, Australia, …)
• Inter-government organizations (UNFCCC, IPCC, IEA, EU, …)
Corporate standard tested by 30+ companies in 9 countries
Peer reviewed for verifiability and consistency
Corporate inventory standard published in 2001
Second edition scheduled for release in mid-2003
Need for an international standard on corporate GHG accounting & reporting
• Accepted by business, NGOs, and Governments
• Improve consistency, comparability, and credibility
• Simplify measurement & reporting
• Minimize cost of developing an inventory
• Harmonization across borders and initiatives
• Common building blocks for GHG markets
Setting the scene
Process of Development
GHG Protocol Initiative
Inclusive and transparent multi-stakeholder process
Build on existing approaches
Adoption and continuous improvement
Climate Initiatives(based on or informed by GHG Protocol Corporate Standards)
U.S. Environmental Protection Agency Climate Leaders
World Wildlife Fund Climate Savers
California Climate Action Registry
RespectEurope Business Leaders Initiative for Climate Change (BLICC)
French REGES Protocol
Chicago Climate Exchange
Global Reporting Initiative
CERES Sustainable Governance Initiative
WBCSD Cement Protocol
USAID Greenhouse Gas Pollution Prevention Program
International Forum of Forest and Paper Associations Calculation Tools for
Estimating GHG Emissions from Pulp & Paper Mills
35 of the worlds largest investors with assets of more than $4.5 trillion have asked the world’s
Top 500 companies to quantify their GHG emissions by adopting the GHG Protocol
Business using GHG Protocol: Corporate Standards(as participants of schemes/initiatives or for own purposes)
Alcan Aluminum, USA
Alcoa, USAAstraZeneca, UK
AstraZeneca, UK
BP, USA
Bethlehem Steel, USA
Birka Energi, Sweden
The Body Shop, UK
Cinergy, USA
Eastman Kodak, USA
CODELCO, Chile
Edison Mission Energy, USA
Ford, USA
ENDESA, Spain
Green Mountain Energy, USA
Holcim, USA
IBM, USA
IKEA International, Sweden
International Paper, USA
Interface, USA
Johnson & Johnson, USA
Kansai Electric Power, Japan
Lockheed Martin, USA
Miller Brewing Co., USA
Mirant, USA
National Renewable Energy
Laboratory, USA
Nike, USA
Norm Thompson Outfitters, USA
Norsk Hydro, Norway
N.V. Nuon Energy, Netherlands
Philips & Yaming, China
PWC, New Zealand
PSEG, USA
SC Johnson, USA
Seattle City Light, USA
Simplex Paper & Pulp, India
Sony Electronics, Japan
STMicroelectronics, Switzerland
Suncor, USA
Tata Steel, India
Tokyo Gas, Japan
Volkswagen, Germany
We Energies, USA
500 PPM GmbH, Germany
Standards
Accounting Principles.
Organizational Boundaries.
Operational boundaries.
Historic Datum.
Public reporting.
Guidance
Business goals and
inventory design.
Accounting for GHG
reductions.
Identifying GHG sources.
Managing inventory quality.
Verification of GHG
emissions.
Calculation toolsWeb-based, user-friendly,
step-by-step guidance.
Build on IPCC methodologies
& industry best practice.
Cross sector.
Sector specific.
Protocol Structure
5 Principles Relevance
Completeness
Consistency
Transparency
Accuracy
PrinciplesOrganizational Boundaries
Operational boundaries
Historic Datum
Reporting GHG emissions
Standards
Ensure information represents a true and fair account of
GHG emissionsEnsure information is credible and unbiased in its
treatment and presentation of issues
StandardsPrinciples
Organizational BoundariesOperational boundaries
Historic Datum
Reporting GHG emissions
Accounting emissions from
subsidiaries, JVs, etc.
Based on financial accounting
practices
Operation/entity What to report Reporting for control wholly owned or controlled 100% of emissions jointly controlled (JVs) equity share of emissions no control -- Reporting for equity wholly owned or controlled equity share of emissions share significant influence / equity share of emissions associated entities no control / no influence -- (< 20% voting interest)
StandardsPrinciples
Organisational Boundaries
Operational boundariesHistoric Datum
Reporting GHG emissions
3 scopes guarantee transparency:
scope 1: Direct emissions (must report)
scope 2: Indirect Emissions - imported
electricity, heat, or steam (must report)
scope 3: Other relevant indirect emissions
(voluntary)
Selection of scope/s depends on objectives of
inventory (e.g. internal risk management vs.
trading markets).
StandardsPrinciples
Operational Boundaries
Organizational boundaries
Historic DatumReporting GHG emissions
Set base year to compare emissions
over time.
Adjust base year emissions for
significant structural changes of the
business (investment/ divestment) or in
calculation methodologies.
No adjustment for organic growth or
decline. (e.g. changes in productivity)
Calculation toolsWeb-based, user-friendly,
step-by-step guidance
Build on IPCC methodologies
& industry best practice
Cross sector
Sector specific
Sector-specific toolsAluminum CO2 & PFC
Iron and steel CO2
Nitric acid N20
Ammonia CO2
Adipic acid N20
Cement CO2
Lime CO2
HCFC-22 HFC-23 Semi-conductor PFC
Cross sector toolsStationary combustion CO2
Mobile combustion CO2
Air conditioning/refrigeration HFC
Structured feedback process for corporate standard (Feb 2002)
• Revise and Improve the 1st Edition
• Update Existing GHG Calculation Tools
• Develop New GHG Calculation Tools
Publication of 2nd edition by June 2003
Outreach & adoption
Next Steps…
Setting the scene
Project Accounting Standard - Motivation
The absence of clear international accounting rules for GHG mitigation projects under different trading schemes and initiatives
Setting the scene
Purposes of the Project Accounting Standard
Identify and compare GHG reduction and storage opportunities
Select a credible and robust baseline underpinned by GHG accounting and reporting principles
Facilitate and accelerate required government acceptance and approval procedures in host countries
Lower project transaction costs, while improving the quality and credibility of quantification procedures
Increase accounting consistency between trading schemes
Setting the scene
Key Steps in GHG Project Accounting
GHG Project Objectives
Project Accounting Principles
Identification
• Types of projects
• Project boundary and ownership
• Project eligibility (e.g. sustainable development criteria, scheme-specific rules)
Quantification
• Selection of baseline scenarios, calculation of baseline and project emissions
• Project and crediting lifetime, baseline adjustment
Monitoring and Verification
• Presentation and disclosure of information
• Calculation tools
Setting the scene
Key Accounting Issues
Eligibility e.g. regulatory, sustainable development, scheme specific
Setting project boundaries and assessment of leakage: using causation and significance tests
Calculating baseline emissions: identification and selection of most likely baseline scenarios using benchmark and project specific baselines
Project typology: addressing boundary and baselines attributes of specific projects/technologies
Oct, 02 Jan Feb May Sept, 03
Task Forcework
continues
WRI/WBCSDcollates
doc
COP9?
External Review
and Road
Testing
WRI/WBCSD external review
Printing
Release
July
Revisions
Project Module Timeline