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Product Carbon Accounting Market Assessment Joint GTZ/ISEAL Workshop Bonn, Germany 27 October 2010 Henk van Rikxoort

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Page 1: Henk van Rikxoort - Product Carbon Accounting Market Assessment

Product Carbon Accounting

Market Assessment

Joint GTZ/ISEAL Workshop

Bonn, Germany – 27 October 2010

Henk van Rikxoort

Page 2: Henk van Rikxoort - Product Carbon Accounting Market Assessment

2 Product Carbon Accounting - Market Assessment

Background

Market Status

Example: Unilever

Example: Tesco

Ongoing Discussion

Conclusions

AGENDA

Page 3: Henk van Rikxoort - Product Carbon Accounting Market Assessment

BACKGROUND

3

Collaboration of ISEAL & GTZ on CC mitigation

Ecofys commissioned to map Climate Assurance Systems

Results refined by ISEAL & GTZ in report: “Accounting for

Carbon: Mapping the Landscape of Climate Assurance

Systems”.

Additional research needed to assess the status of

Product Carbon Accounting in the market

Product Carbon Accounting - Market Assessment

Page 4: Henk van Rikxoort - Product Carbon Accounting Market Assessment

MARKET STATUS

Product Carbon Accounting - Market Assessment4

9 Brands and 10 Retailers examined:

Assessed:

Commitment to reduce GHG emissions

Status on product carbon accounting

Level of supplier cooperation/requirements

Level of consumer communication

Status:

PCF mostly in test-phase

Used for internal knowledge building

LCA (ISO 14044) and PAS 2050

predominant methodologies

Brands

Retailers

Page 5: Henk van Rikxoort - Product Carbon Accounting Market Assessment

EXAMPLE: UNILEVER

Product Carbon Accounting - Market Assessment5

Works with LCA (ISO 14044)

Database with 1500 products examined

Data is used to prioritise the GHG

reduction categories of focus

Developed a set of “Good Practices” for

low GHG tea production

“We found that that the differences

between products in the same

category are very small.”

“We are afraid for a carbon

tax on products.”

“At an average

Unilever product

most reduction

can be achieved

in the use stage”

Page 6: Henk van Rikxoort - Product Carbon Accounting Market Assessment

EXAMPLE: TESCO

Product Carbon Accounting - Market Assessment6

Started in 2007 with CFP among

selected own-brand products

Since this pilot work 500 CFP of own-

brand products calculatated

Works with suppliers to identify

emissions hotspots and eliminate them

throughout the supply chain

“We found that aerosol

deodorants tend to have higher

carbon footprints than roll-ons.”

“Recycled toilet paper has a

footprint a third lower than the

standard product.”

Page 7: Henk van Rikxoort - Product Carbon Accounting Market Assessment

ONGOING DISCUSSION

Product Carbon Accounting - Market Assessment7

“Reference to a CO2 quantity

remains incomprehensible to the

vast majority of consumers.”

“Half of all respondents

understood what a carbon

footprint was, nearly as many

would seek products with

lower footprints.”

“PCF only focuses on a single

environmental aspect – emissions

of GHG’s.”

Credibility:

Labels:

“Lack of harmonised

methodologies and

methodological

constraints exist.” “Lack of product

specific rules

(PCRs).”

Page 8: Henk van Rikxoort - Product Carbon Accounting Market Assessment

CONCLUSIONS

Product Carbon Accounting - Market Assessment8

Product carbon accounting common practice

Results used to work on effective GHG reductions

together with suppliers

Ongoing discussion prevents breakthrough of carbon

labels on products

Demonstration and quantification of GHG reductions

embedded in standard systems perceived as important by

Brands and Retailers

Page 9: Henk van Rikxoort - Product Carbon Accounting Market Assessment

9 Product Carbon Accounting - Market Assessment

gtzHenk van RikxoortConsultant – Agriculture and Climate Change

WageningenThe Netherlands

Mobile Europe +31618187108E-mail [email protected]