Methodologies for Measuring the Carbon Footprint ICTs and Climate Change Pankaj Bhatia
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Methodologies for Measuring the Carbon Footprint ICTs and Climate Change International Symposium BT Centre Auditorium, London 17-18th June 2008 Pankaj Bhatia Director GHG Protocol Initiative What you measure, you can manage What you measure WELL, you can manage WELL GHG Standards Measurement Carbon Footprint Management © World Resources Institute 2 What is a Carbon Footprint? Source Inventory ¾ Facility Inventory ¾ Corporate Inventory ¾ National Inventory ¾ © World Resources Institute 3 Relationship between Different Inventories Corporate Inventory Source Inventory Facility Inventory GHG Protocol Corporate Standard National Inventory GHG Protocol Calculation Tools/IPCC 2006 Methodologies © World Resources Institute 4 GHG Protocol Standards, Protocol, and Tools Corporate Module Project Module 18 June Resources 2008 © World Institute 5 GHGP Corporate Standard The most widely used international accounting tool for government & business leaders to understand, quantify, and manage energy use & GHG emissions © World Resources Institute 6 Wide Adoption by National & International Initiatives - Examples Voluntary Climate Initiatives U.S. EPA Climate Leaders Program Brazil GHG Protocol Program China Energy & GHG Management Program Mexico GHG Program Philippines GHG Accounting & Reporting Prog. WWF Climate Savers Program GHG Registries The Climate Registry California Climate Action Registry US DOE 1605b Registry WBCSD CSI Protocol International Forum of Forest & Paper Associations International Aluminium Institute Korea National GHG Registry South Africa NBI/BUSA-DEAT Initiative Industry Initiatives WEF Global Registry Multilateral Non-government Initiatives International Standards Organization (ISO) © World Resources Institute Market Initiatives AP 6 Initiative Cement Sector Protocol Carbon Disclosure Project Chicago Climate Exchange EU Emissions Trading Scheme (informed by GHG Protocol calculation tools) 7 Wide Adoption by National & International Initiatives - Examples © World Resources Institute 8 The GHG Protocol – Global Adoption Out of the 335 Global FT500 companies studied, 63% aligned with the GHG Protocol (The Corporate Climate Communications Report 2007) © World Resources Institute 9 Corporate Climate Strategy – Key Elements ¾ Business Context and Goals ¾ Monitoring and Reporting ¾ Data Analysis & Interpretation ¾ Target-setting ¾ Emissions Reductions Measures ¾ ¾ ¾ Reduce energy intensity Reduce emissions intensity Tracking and Assessing Performance Emissions Assets Portfolio ¾ Institute Emissions Liability Portfolio © World Resources ¾ 10 Carbon Footprint Development: Stages 9 secure management support 9 establish a team & prepare budget 9 define inventory boundary 9 determine sources of emissions 9 select base year 9 design efficient data management system 9 obtain appropriate data, ensure data quality 9 apply calculation tools 9 guard against calculation errors 9 identify emission reduction opportunities 9 decide on target type & level 9 implement emission reduction activities 9 publicly report complete inventory information © World Resources Institute 11 Corporate Accounting Standard Standards • Accounting Principles • Organizational Boundaries • Operational Boundaries • Historic Datum • Reporting GHG emissions Calculation tools Guidance • Web-based, user- • Business goals and guidance inventory design friendly, step-by-step • Build on IPCC • Accounting for GHG reductions methodologies & industry • Identifying GHG sources best practice • Managing inventory quality • Cross sector, • Verification of GHG emissions • Target Setting e.g. mobile and stationary combustion • Sector specific e.g. CSI Protocol www.ghgprotocol.org © World Resources Institute 12 Why Measure a Carbon Footprint? ¾ ¾ ¾ ¾ ¾ ¾ Achieve corporate carbon management goals Identify opportunities to reduce energy or process costs Identify opportunities to enhance competitive advantage Participate in GHG markets Provide information to stakeholders Participate in GHG reporting programs 18 June 2008 © World Resources Institute 13 13 Planning a Corporate Carbon Footprint Questions that need to be considered include: ¾ What business unites/facilities will be included in the inventory (organizational boundary)? ¾ What GHG sources and activities will be included (operational boundary)? ¾ What base year will selected? © World Resources Institute 14 Accounting Under GHG Protocol Corporate Standard © World Resources Institute 15 Scopes Across a Value Chain Scope 3 Scopes 1 & 2 Scope 3 Upstream Own operations Downstream © World Resources Institute 16 GHG Protocol Calculation Tools ¾ Cross-sectoral ¾ ¾ ¾ Stationary combustion Mobile combustion Business travel ¾ Employee commuting ¾ ¾ ¾ Combined heat & power Purchased electricity, heat & steam Consistent with IPCC and IEA methodologies Sector-specific ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ © World Resources Institute Ammonia Cement Iron & steel Lime Pulp & paper Aluminum Wood products Adipic acid Nitric acid Semi-conductors HFCs, PFCs 17 Emissions and Tools for the ICT Sector ¾ Scope 1 emissions from stationary combustion & RAC equipment ¾ Scope 2 emissions from purchased electricity ¾ Scope 3 emissions from employee commuting, business travel, product transport, use, & disposal © World Resources Institute 18 New GHG Protocol Standard for Product & Supply Chain Accounting New GHG Protocol Product & Supply Chain Standard 19 © World Resources Institute 19 Scope, Objectives, Accounting Elements Life Cycle Product Life Cycle Product labeling Corporate carbon-neutrality labeling Product Supply Chain Corporate Supply Chain Product supply chain performance Benchmarking Embodied carbon policies Supply Chain Corporate Life Cycle Product © World Resources Institute Corporate supply chain performance Corporate procurement policies Corporate 20 Relevance to ICT Sector Provide guidelines for supply chain and product footprinting ¾ How do you identify the most relevant/material activities? ¾ How far back in the supply chain should you go? ¾ Which of your suppliers’ total emissions are associated with your company? ¾ When should you use a particular method or level of accuracy? Working in collaboration with ICT companies and initiatives to address ICT issues and challenges ICT-specific guidelines expected to follow general standard © World Resources Institute 21 How to Partner and Participate Options 1. Participate in technical working groups 2. Participate as a general stakeholder 3. Road test draft guidelines To participate, contact: David Rich, drich@wri.org © World Resources Institute 22 Questions? Contact: Pankaj Bhatia World Resources Institute pankaj@wri.org Visit GHG Protocol at www.ghgprotocol.org © World Resources Institute 23
