Greenhouse Gas Accounting:
GHG Protocol Initiative and ISO
World Resources Institute
GHG Protocol/ISO Comparison
GHG Protocol
History
ISO
Launched in 1997, Corporate
Launched in 2002
standard published in 2000,
revised edition in 2004. Project
standard being road tested
Scope of work Corporate and project
Corporate, project &
verification
Level of detail Standards, guidance &
electronic calculation tools
Standards and some guidance
Adoption
Not yet completed – but other
ISO standards have high
adoption rates by business
Corporate standard widely
adopted by governments,
NGO’s, industry, and industry
associations
GHG Protocol/ISO Comparison
GHG Protocol
Decision
making
Consensus within multistakeholder groups
ISO
?
Practical Testing Road testing before completion
of Standards
None
Relevance
Policy and program neutral
Policy and program neutral
Types of
Participants
 Multi-stakeholder/ many
perspectives/inclusive
 Typically experts/practitioners
 Typically generalists with
history in developing ISO
standards
 Business-dominated
Cost
Free – no certification
requirements
Fees for standards and
certification process
Key messages
Avoid creating competing standards
 Don’t reinvent the wheel!
 Base organization/project parts on GHG Protocol
 Use GHG Protocol terminology to avoid confusion
Form follows function
 Define the purpose of the standards first and design accordingly
Key messages
 Separate project, corporate & verification standards
• Verification standard should be stand-alone
• Project standard needs to be on a slower track
 A good process is crucial
• Get the balance of participants/decision makers right e.g., business, NGO’s,
governments, North/South, others
• Understanding of issues and concepts is a pre-requisite for informed decision
making - this is an iterative process
Keep communication channels open with GHGP
of the Corporate
Standard
The Adoption
GHG Protocol’s
impact on
GHG
accounting practice
California Climate Action Registry
French REGES Protocol
Carbon Disclosure Project
Chicago Climate Exchange
Dow Jones Sustainability Index
EU- ETS
GRI
METI, Japan
Northeast Registry (NESCAUM)
Respect Europe Business Leaders Initiative for Climate
Change (BLICC)
Industry Associations (Aluminum, IPIECA, ICFPA,
Cement, Iron and Steel)
UK-ETS
U.S. EPA Climate Leaders Initiative
World Wildlife Fund Climate Savers
World Economic Forum Global GHG Register
GHG Protocol
Corporate
Standard
GHGP Project
Standard
ISO 14064 is on a good track…
Setting the scene
Adoption
by businesses (those that we know of…)
Adoption
by businesses
Automobile Manufacturers
Ford Motor Company, USA
Volkswagen, Germany
IBM, USA
IKEA International, Sweden
Johnson & Johnson, USA
Miller Brewing Company, USA
Nike, USA
Cement
Norm Thompson Outfitters, USA
Cemex, Mexico
Pfizer Inc., USA
Cimpor, Brazil
Raytheon, USA
Heidelberger Cement, Germany SC Johnson, USA
Holcim, USA (and worldwide
Sony Electronics, Japan
Holcim facilities)
Starbucks Coffee, USA
Italcementi, Italy
Staples Inc., USA
Lafarge, France and North
Sun Microsystems
America
Target Corporation, USA
RMC, UK
Unilever HPC, USA
St. Lawrence Cement Inc.,
United Technologies
Canada
Corporation, USA
Siam Cement, Thailand
Taiheiyo, Japan
Votorantim, Brazil
Energy Services
Birka Energi, Sweden
Cinergy, USA
Consumer Goods
Edison Mission Energy, USA
Manufacturers
ENDESA, Spain
Bank of America
Exelon Corporation, USA
Body Shop, UK
FPL Group, Inc., USA
Cargill, USA
General Electric, USA
Eastman Kodak, USA
Green Mountain Energy, USA
Fetzer Vineyards, USA
Kansai Electric Power, Japan
Mirant, USA
N.V. Nuon Renewable Energy,
Netherlands
PSEG, USA
Seattle City Light, USA
Tokyo Gas, Japan
Wisconsin Electric, USA
We Energies, USA
Lockheed Martin Corporation, USA
Philips & Yaming, China
Simplex Paper & Pulp, India
STMicroelectronics, Switzerland
StoraEnso, Finland
Tata Steel, India
United States Steel Corporation
Oil and Gas
BP, USA
Norsk Hydro, Norway
Shell Canada, Canada
Suncor, USA
Non-Government Organizations
World Business Council for
Sustainable Development, Switzerland
World Resources Institute, USA
Industrial Manufacturers/ Mining
Air Products and Chemicals, Inc.
Alcan Aluminum Corporation, USA
Alcoa, USA
Ball Corporation, USA
Baltimore Aircoil, USA
Baxter International, USA
Bethlehem Steel Corporation, USA
CODELCO, Chile
DuPont, Inc.
Interface, Inc., USA
International Paper, USA
ITC Inc., India
Services
500 PPM GmbH, Germany
AstraZeneca, UK
Casella Waste Systems, Inc., USA
DHL, USA
European Bank for Reconstruction &
Development
PE Europe, Germany
PowerComm, Canada
Price Waterhouse Coopers, New
Zealand
Verizon Communications, USA
Corporate Standard: what’s in it?
Standards
•Organizational
Boundaries
•Operational
Boundaries
•Historic Datum
•Reporting GHG
emissions
Calculation tools
Guidance
•Web-based, user-friendly,
step-by-step guidance
•Business goals and
•Build on IPCC methodologies
inventory design
•Sector-specific tools
•Accounting for GHG reductions developed in industry-led
•Identifying GHG sources
efforts (e.g. cement, pulp &
paper, aluminum)
•Managing inventory quality
•Verification of GHG emissions
www.ghgprotocol.org
Revised edition of Corporate Standard
 To be published early next year, now in final review and design stage
 The water is cleaner, and the baby is still in the bath!
 Main changes to the first edition

More verification-friendly language (“shall”), which also aims to increase clarity as to
what is required to produce a report “in accordance with” GHG Protocol (this does not
affect the structure of the document)

Increased flexibility in choosing Organizational Boundaries

More specificity for indirect emissions from purchased electricity (still a required category)

Improved guidance

New case studies reflect how accounting practice has advanced in the meantime

New guidance chapter: Voluntary Corporate GHG targets

New Appendix: Issue piece for companies wishing to account for sequestered carbon
Project standard: what is it?
Tool to help project developers to account
for GHG reductions made by means of
specific reduction projects (offsets/credits)
Project Accounting Principles
1. Relevance
2. Completeness
3. Consistency
4. Transparency
5. Accuracy
6. Conservatism
The Project Quantification Standard
Consists of:
i. Introduction to GHG accounting
ii. Quantification steps
iii. Baseline procedures
iv. Annexes
v. Glossary
vi. References
vii. List of contributors
Project Typology – sector-specific guidance
II: Eight Quantification Steps
1: Describe the project and primary effect(s)
2: Check the eligibility of the primary effect
3: Check the primary effect is additional to legal requirements
4: Undertake a preliminary evaluation of secondary effects
5: Select the baseline scenario
6: Identify and assess the relevance of secondary effects
7: Calculate project reduction and classify based on ownership
8: Develop a monitoring plan (still to come)
III: Baseline Procedures
Three Baseline Procedures
Project Specific
Procedure
Performance Standard
Procedure
Retrofit
Procedure
Additionality
Uses a three-fold approach
1.
2.
Initial ‘Additional to Legal
Requirements’ Screen
Tests:
Barriers, Investment Ranking
Project specific
Performance Standard
Retrofits
3.
Additional
Stringency
level
Only remaining life of
equipment
Project GHG Emission less than Baseline GHG Emissions
GHG Protocol Initiative
Thank You
www.ghgprotocol.org