1

Measu

r i ng

Gr een

ho

use

Gas E

mi ssio

ns

Measuring GHG Measuring GHG EmissionsEmissions

Energizing Cleaner ProductionEnergizing Cleaner Production

Management Course Management Course

2

Measu

r i ng

Gr een

ho

use

Gas E

mi ssio

ns

Session Agenda:Session Agenda:

GHG types and sources

GHG Indicator to calculate emissions

GHG accounting and reporting

3

Measu

r i ng

Gr een

ho

use

Gas E

mi ssio

ns

• task 1a: Meeting with top management• task 1b: Form a Team and inform staff• task 1c: Pre-assessment to collect general information• task 1d: Select focus areas• task 1e: Prepare assessment proposal for top management approval

Step 1: Planning and Organization

• task 2a: Staff meeting and training• task 2b: Prepare focus area flow charts• task 2c: Walkthrough of focus areas• task 2d: Quantify inputs and outputs and costs to establish a baseline• task 2e: Quantify losses through a material and energy balance

Step 2: Assessment

• task 3a: Determine causes of losses• task 3b: Identify possible options• task 3c: Screen options for feasibility analysis

Step 3: Identification of Options

• task 4a: Technical, economic and environmental evaluation of options• task 4b: Rank feasible options for implementation• task 4c: Prepare implementation and monitoring proposal for top

management approval

• task 5a: Implement options and monitor results• task 5b: Evaluation meeting with top management

Step 5: Implementation and Monitoring of Options

• task 6a: Prepare proposal to continue with energy efficiency for top management approval

Step 6: Continuous Improvement

Step 4: Feasibility Analysis of Options

• task 1a: Meeting with top management• task 1b: Form a Team and inform staff• task 1c: Pre-assessment to collect general information• task 1d: Select focus areas• task 1e: Prepare assessment proposal for top management approval

Step 1: Planning and Organization

• task 2a: Staff meeting and training• task 2b: Prepare focus area flow charts• task 2c: Walkthrough of focus areas• task 2d: Quantify inputs and outputs and costs to establish a baseline• task 2e: Quantify losses through a material and energy balance

Step 2: Assessment

• task 3a: Determine causes of losses• task 3b: Identify possible options• task 3c: Screen options for feasibility analysis

Step 3: Identification of Options

• task 4a: Technical, economic and environmental evaluation of options• task 4b: Rank feasible options for implementation• task 4c: Prepare implementation and monitoring proposal for top

management approval

• task 5a: Implement options and monitor results• task 5b: Evaluation meeting with top management

Step 5: Implementation and Monitoring of Options

• task 6a: Prepare proposal to continue with energy efficiency for top management approval

Step 6: Continuous Improvement

Step 4: Feasibility Analysis of Options

But first…But first…In what step(s) In what step(s) of the of the methodology methodology is (energy is (energy and) GHG and) GHG measurement measurement relevant?relevant?

4

Measu

r i ng

Gr een

ho

use

Gas E

mi ssio

ns

GHG types and sources:GHG types and sources:

Greenhouse GasesGreenhouse Gases

5

Measu

r i ng

Gr een

ho

use

Gas E

mi ssio

ns

GHG types and sources:GHG types and sources:

GHG sourcesGHG sources

• Industrial sources– Fuel use

– Electricity use

– Industrial processes

– Transport

• Non-industry and natural sources– Volcanoes

– Cattle

– Forest fires

– Others

6

Measu

r i ng

Gr een

ho

use

Gas E

mi ssio

ns

Sources of GHG: industrial processesSources of GHG: industrial processes

7

Measu

r i ng

Gr een

ho

use

Gas E

mi ssio

ns

GHG IndicatorGHG Indicator

• Based on UNEP/IPCC methodology for

GHG emission calculations

• Provides common method for reporting

GHG emissions

• Used by organizations to calculate GHG

emissions from energy use and other

sources

• Used by Governments to translate

national GHG targets (e.g. Kyoto

Protocol) to industrial targets

8

Measu

r i ng

Gr een

ho

use

Gas E

mi ssio

ns

GHG Indicator:GHG Indicator: MethodologyMethodology

2. Electricity use

1. Fuel use

4. Transport

3. Industrial processes

Raw data Conversion Aggregation Normalisation

GHG emission factor

TotalGHG

emissions

Normalised GHG

emissions

9

Measu

r i ng

Gr een

ho

use

Gas E

mi ssio

ns

GHG Indicator:GHG Indicator: 1. Fuel Use1. Fuel Use

Fuel Annual Fuel Consumption (Tons)

Emission Factor t CO2

t CO2-

equivalent

Coal 500 X 1.85 = 925

Refinery stock

3502 X 3.25 = 11382

Petroleum coke

45 X 3.09 = 139

TOTAL 4047 12446

10

Measu

r i ng

Gr een

ho

use

Gas E

mi ssio

ns

GHG Indicator:GHG Indicator: 2. Electricity Use2. Electricity Use

Exported electricity is not included in

the total

Electricity Annual electricity consumption (kWh)

Emission Factor t CO2

t CO2

equivalent

Imported 1,000,000 X 0.000618 = 61.80

Exported 100,000 X 0.000618 = 6.18

TOTAL 900,000 55.62

11

Measu

r i ng

Gr een

ho

use

Gas E

mi ssio

ns

GHG Indicator:GHG Indicator: 3. Industrial Processes3. Industrial Processes

CO2 is released when lime is burned

Emission source

Annual consumption (tonnes)

Emission Factor t CO2

t CO2

equivalent

CFC 11 0.1 X 3400 = 340

Lime 10,000 X 0.396 = 3960

TOTAL 4300

12

Measu

r i ng

Gr een

ho

use

Gas E

mi ssio

ns

GHG Indicator:GHG Indicator: 4. Transport4. Transport

Transport mode

Annual travel (km)

EF tCO2 / km

t CO2

equivalent

Car

Petrol

20,000 0.00019 = 3.8

Car

Diesel

100,000 0.00016 = 16

Train 150,000 0.00034 = 51

TOTAL 270,000 70.8

13

Measu

r i ng

Gr een

ho

use

Gas E

mi ssio

ns

GHG Indicator:GHG Indicator: AggregationAggregation

Source t CO2

equivalent

1 Fuel use 12446

2 Electricity use 55.62

3 Industrial process 4300

4 Transport 70.8

TOTAL 16872

14

Measu

r i ng

Gr een

ho

use

Gas E

mi ssio

ns

GHG Indicator:GHG Indicator:

NormalisationNormalisation

Normalising factor

Annual figures

t CO2 Normalised t CO2

Turnover $ 20,000,000 16872 0.000844

Added value $ 500,000 16872

0.033744

Employees 500 16872 33.744

Units of production

1,350,000 tonnes

16872 0.012498

15

Measu

r i ng

Gr een

ho

use

Gas E

mi ssio

ns

GHG Indicator:GHG Indicator:

ReportingReporting

Year Total t CO2

Production (tonnes)

Normalised t CO2

1990 16872 1,350,000 0.012498

1991 18823 1,500,000 0.012549

….

2002 24267 2,000,000 0.012134

43.8% 2.9%

16

Measu

r i ng

Gr een

ho

use

Gas E

mi ssio

ns

GHG Indicator:GHG Indicator:

GHG Indicators by sectorGHG Indicators by sector

17

Measu

r i ng

Gr een

ho

use

Gas E

mi ssio

ns

GHG Indicator QuizGHG Indicator Quiz

Let’s test what you have learnt!

18

Measu

r i ng

Gr een

ho

use

Gas E

mi ssio

ns

GHG Accounting and ReportingGHG Accounting and Reporting

Reasons for GHG accounting and reporting

• Internal reporting to measure progress against targets & identify EE opportunities• Legal requirement to report• Voluntary reporting under programs• Public environmental / CSR reports• Emissions trading schemes• CDM or JI• Other…

19

Measu

r i ng

Gr een

ho

use

Gas E

mi ssio

ns

GHG Accounting and ReportingGHG Accounting and Reporting

The GHG Protocol lists 5 accounting & reporting principles:

• Relevance

• Completeness

• Consistency

• Transparency

• Accuracy

20

Measu

r i ng

Gr een

ho

use

Gas E

mi ssio

ns

GHG Accounting and Reporting:GHG Accounting and Reporting:

RelevanceRelevance

Define boundaries:• Organizational structures• Operational boundaries• Business context• Specific inclusions / exclusions

A multinational operates a plant but owns only 60% of sharesDo you count 100% or 60% of emissions?

21

Measu

r i ng

Gr een

ho

use

Gas E

mi ssio

ns

GHG Accounting and Reporting:GHG Accounting and Reporting:

CompletenessCompleteness

Include all GHG sources & activities• Fuel use• Electricity use• Industrial processes• Transport

Sometimes companies do not include all emission sources / activitiesCan you think of reasons why?

22

Measu

r i ng

Gr een

ho

use

Gas E

mi ssio

ns

• #

GHG Accounting and Reporting:GHG Accounting and Reporting:

Completeness Completeness (cont.)(cont.)

Direct and Indirect Emissions of a CompanySource: GHG Protocol, www.ghgprotocol.org, adapted from NZBSCD

23

Measu

r i ng

Gr een

ho

use

Gas E

mi ssio

ns

GHG Accounting and Reporting:GHG Accounting and Reporting:

ConsistencyConsistency

Meaningful comparison of emissions over time

• Production changes• Process changes• Acquisitions, mergers, sales• Outsourcing

Why is it important that GHG emissions be compared between different years?

24

Measu

r i ng

Gr een

ho

use

Gas E

mi ssio

ns

GHG Accounting and Reporting:GHG Accounting and Reporting:

TransparencyTransparency

It is clear how emissions were calculated (“audit trail”)

• Measurements• Assumptions• Calculation methods• References• Exclusions or inclusions

Who makes use of the “audit trail” of data?

25

Measu

r i ng

Gr een

ho

use

Gas E

mi ssio

ns

GHG Accounting and Reporting:GHG Accounting and Reporting:

Transparency Transparency (cont.)(cont.)

320 Reporting Units:• Complete standard pro-forma spreadsheet every

quarter: emissions & forecasts• Account for variances• Use BP’s GHG Reporting Guidelines

Corporate Team• Check quality of incoming data• Compile data• Analyze emission inventory and forecast against BP’s

GHG target

Independent External Auditors• Review of inventory• Provide assurance on data quality & accuracy

26

Measu

r i ng

Gr een

ho

use

Gas E

mi ssio

ns

GHG Accounting and Reporting:GHG Accounting and Reporting:

AccuracyAccuracy

Data must be “materially” accurate• Measurement methods• Calculation methods• Aggregation and reporting

What can a company do to improve data accuracy?

27

Measu

r i ng

Gr een

ho

use

Gas E

mi ssio

ns

Minimum information to be reported

• Company and inventory boundary– Organizational boundaries– Operational boundaries– Reporting period

GHG Accounting and Reporting:GHG Accounting and Reporting:Reporting EmissionsReporting Emissions

28

Measu

r i ng

Gr een

ho

use

Gas E

mi ssio

ns

Minimum information to be reported• Information on emissions

– Direct (scope 1) and indirect (scope 2) emissions – total and separate

– Emissions for 6 GHGs– Current and base year emissions– Significant changes since base year– Direct CO2 emissions from biologically

sequestered carbon– Methodologies for calculation/

measurement– Specific exclusions

GHG Accounting and Reporting:GHG Accounting and Reporting:Reporting Emissions Reporting Emissions (cont.)(cont.)

29

Measu

r i ng

Gr een

ho

use

Gas E

mi ssio

ns

• Verification is objective assessment of– Accuracy and completeness of GHG

information

– Conformity to GHG accounting and reporting principles

• Why verification?– Increased credibility of reported emissions

– Increased senior management confidence

– Improved accounting & reporting

– Preparation for mandatory verification requirements

GHG Accounting and Reporting:GHG Accounting and Reporting:Verification of GHG EmissionsVerification of GHG Emissions

30

Measu

r i ng

Gr een

ho

use

Gas E

mi ssio

ns

• GHG emission accounting and reporting increasingly important

• GHG Indicator useful tool to calculate GHG emissions

• Don’t assume data company gives you are accurate and complete!! (think of the 5 principles)

• Verification improves the credibility / reliability of GHG data

SummarySummary

31

Measu

r i ng

Gr een

ho

use

Gas E

mi ssio

ns

Measuring GHG Measuring GHG EmissionsEmissions

Thank you for your attention! Thank you for your attention!

32

Measu

r i ng

Gr een

ho

use

Gas E

mi ssio

ns

• This training session was prepared as part of the development and delivery of the course “Energizing Cleaner Production” funded by InWent, Internationale Weiterbildung und Entwicklung (Capacity Building International, Germany) and carried out by the United Nations Environment Programme (UNEP)

• The session is based on UNEP’s “The GHG Indicator” (www.uneptie.org/energy/tools/ghgin/index.htm) and the WBCSD/WRI’s “The GHG Protocol - A Corporate Accounting and Reporting Standard, revised edition” (www.ghgprotocol.org)

AcknowledgementsAcknowledgements