The Climate Registry:

The Registry & The Protocol

August 2008

Judy Collora, PESenior Consultant

Outline The Climate Registry (TCR)

Overview

Greenhouse Gas Basics

TCR Protocol

Example Calculation

The Climate Registry – Process

Registry Houses emissions, transactions

Protocol Guidance on how to perform

inventory 3rd party Verification Publish (public data)

The Climate Registry – Background (1) Created in 2007

Purpose Establish and endorse voluntary entity-

wide GHG registry that collects data consistently across jurisdictions

Encourage entities to join Incorporate quantification methodologies

into future mandatory programs Current membership covers 80% of

populations in the US and Canada (includes most of southeast)

The Climate Registry – Background (2)

www.theclimateregistry.org

The Climate Registry - Tools General Reporting Protocol V1.1 released

May 2008 Developed through a public stakeholder process Drawn from existing protocols

Developing industry-specific reporting protocols Power Oil & Gas Municipal

General Verification Protocol V1.0 released May 2008 Required to verify emissions Should be separate from company performing the inventory

(conflict of interest)

Climate Registry Information System (CRIS) launched in July 2008

On-line GHG calculation, reporting, and verification tool Will have ability to calculate emissions in CO2e and aggregate

emissions data by facility, state, county and entity Public access to The Climate Registry’s verified emission reports

Common Terms (1) TCR: The Climate Registry GHG: Greenhouse Gas GWP: Global Warming Potential CO2e: CO2 equivalents Direct Emissions: Company’s

stationary and mobile sources Indirect Emissions: Imported

steam and power Other Indirect Emissions: 3rd party

/tolling sources

Common Terms (2) Operational/Financial Control

Approach Equity Share Approach IPCC: Intergovernmental Panel on

Climate Change WBCSD: World Business Council

for Sustainable Development WRI: World Resources Institute

Overview of Scope and Type of GHGs

Source: WRI/WBCSD GHG Protocol Corporate Accounting and Reporting Standard (Revised Edition), Chapter 4.

Sources of Greenhouse Gases

Greenhouse Gas

Source(s)

CO2 Combustion

CH4 Landfills, coal mines, oil and gas production, agriculture

N2O Combustion, fertilizers, nitric/adipic acid plants

Hydrofluorocarbons Semiconductor, refrigeration, fire protection

Perfluorocarbons Semiconductor, refrigeration, fire protection

Sulfur Hexafluoride Electric power - circuit breakers, gas-insulated

substations, and switchgear

Comparison of Global Warming Potentials from IPCC’s Second and

Third Assessment Reports

Source: California Climate Action Registry General Reporting Protocol, April 2008

Calculating CO2e

CO2e is carbon dioxide equivalent CO2e reflects the global warming

potential (GWP) of each greenhouse gas relative to carbon dioxide, which has a GWP of 1

Emission rate = 400 tpy CH4

CH4 GWP = 21

400 tpy CH4x 21=8,400 tpy CO2e

Control vs. Equity Approach

Control = you make the EHS decisions Equity = you have a financial stake only Example for company with financial

interest (equity), but no control:

Operations =8,400 tpy CO2e

No management control = 0 tpy CO2e

10% equity share = 840 tpy CO2e

TCR Protocol – Where to Find Ithttp://www.theclimateregistry.org/downloads/GR

P.pdf

TCR Protocol – What it Covers

Geographic Scope Must report emissions sources in all of Canada, Mexico, and United

States Must indicate if any facility is located on lands designated to Tribal

Nations (Registry members) Can report worldwide emissions

Organizational Scope Operational Control Approach Equity Approach Can report either or both Special Considerations for Lease Treatment (Capital vs.

Operational leases)

Emissions Scope Must report Direct (Scope 1) and Indirect (Scope 2)

All 6 GHGs Stationary and Mobile sources (combustion, process, and fugitives) Imported Steam, Heat, and Power

Can report Other Indirect (Scope 3) – e.g., captive tolling, employee commuting

TCR Protocol – Option for First 2 Years Scope is reduced

Transitional report CO2 emissions only Stationary combustion All operations in at least one state Typically based on operational

control approach

Must be Verified by 3rd party

TCR Protocol – Other Items Base Year Designation

First year of full reporting (not transitional years) Update if emission changes exceed 5% of base year emissions No adjustments for acquisition (or insourcing) or divestments

(or outsourcing) that were not in the base year

De minimis Emissions 5% of total emissions (Scope 1 and 2) All emission sources accounted for in base year report cannot

be deemed de minimis in future years (even if emissions drop below 5%) – ensures comparability to base year

Efficiency Metrics – optional (e.g., tonnes CO2e per widget produced)

Verification Required annually by third-party Five-year verification cycle

Reporting Timeline Emissions submitted by June 30 and verified by December 15

Locating Emission Factors IPCC Guidelines for national inventory

calculations and emission factors Database on Greenhouse Gas Emission

Factors (EFDB) Contains IPCC default emission factors Search by source/sink categories, fuel type, and

emission gases Other sector/general protocols

(California Climate Action Registry) EPA’s Air Pollutant Emission Factors,

AP-42

Example:Direct Emissions fromStationary Combustion

Step 1: Identify all types of fuels combusted Step 2: Determine annual consumption of each fuel Step 3: Select appropriate emission factor for each

fuel Step 4: Calculate each fuel’s CO2 emissions Step 5: Calculate each fuel’s CH4 and N2O emissions Step 6: Convert CH4 and N2O to CO2e and sum all

GHG emissionsNote: assumes operational control, i.e., 100% of CO2e

emissions

Example – Acme Widget Co.Stationary Combustion

Sources Step 1: Identify fuel – natural gas Step 2: Annual fuel consumption

Step 3: Select appropriate emission factors (Table 12.1 of TCR Protocol) CO2 = 52.91 kg/MMBtu CH4 = 0.0059 kg/MMBtu N2O = 0.0001 kg/MMBtu

MMBtu 78,840 90% yr

hr 8,760

hr

MMBtu 10

Example – Acme Widget Co.Stationary Combustion

Sources Step 4: Calculate CO2 emissions

Step 5: Calculate CH4 and N2O emissions

44 CH MT 0.47

kg 1,000

MT

MMBtu

CH kg 0.0059 MMBtu 78,840

22 CO MT 4,171

kg 1,000

MT

MMBtu

CO kg 52.91 MMBtu 78,840

ON MT 0.0079 kg 1,000

MT

MMBtu

ON kg 0.0001 MMBtu 78,840 2

2

Example – Acme Widget Co.Stationary Combustion

Sources Step 6: Convert to CO2e and sum all GHG emissions

eCO MT 9.77 )CH of (GWP 21 CH MT 0.47 244

eCO MT 4,183 eCO MT 2.44 eCO MT 9.77 CO MT 4,171 2222

ON MT 2.44 O)N of (GWP 310 ON MT 0.0079 222

Conclusions

If you’re not developing a climate change strategy that includes a GHG emission inventory, consider acting now to ready yourself for future mandatory requirements.

Leave yourself time to correct inconsistencies or recordkeeping issues (data gaps) before mandatory requirements are knocking at your door

Consider basing your emission inventory after TCR’s protocol – likely future transition will be more seamless and you will be better prepared.

Over the long term, GHG emissions are a business asset. Therefore, accurate carbon quantification and well-conceived carbon strategy are a must.

Questions?