Ghg Inventory Guide CD Version
Content
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2
3
4
5
6
7
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1
2
1
2
3
4
5
6
7
8
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1
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3
4
5
6
7
1
2
3
4
5
6
7
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1
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1
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1
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1
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1
Corporate GHG 5
6
7
8
9
0
1
2
1
2
3
4
5
6
7
8
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0
1
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6
7
Inventory Program Guide 3
4
5
6
7
8
9
0
1
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4
5
6
7
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Acknowledgement The Confederation of Indian Industry (CII) Sohrabji Godrej Green Business Centre (CII–Godrej GBC) acknowledges the rich contributions made by the partner organisations – the US Environmental Protection Agency (USEPA) and the World Resources Institute (WRI) toward designing and developing the Corporate GHG Inventory Programme and this Programme Guide.
CII-Godrej GBC has initiated two projects “Voluntary Programme to Promote Ecologically Sustainable Business Growth for Indian Industry” and “Foster GHG Emission Reduction Technologies in Indian Cement Industry” to support the goals of the Asia-Pacific Partnership on Clean Development and Climate. This publication is made possible through support from this project.
2
Corporate GHG Inventory Program Guide
Acknowledgement The Confederation of Indian Industry (CII) Sohrabji Godrej Green Business Centre (CII–Godrej GBC) acknowledges the rich contributions made by the partner organisations – the US Environmental Protection Agency (USEPA) and the World Resources Institute (WRI) toward designing and developing the Corporate GHG Inventory Programme and this Programme Guide.
CII-Godrej GBC has initiated two projects “Voluntary Programme to Promote Ecologically Sustainable Business Growth for Indian Industry” and “Foster GHG Emission Reduction Technologies in Indian Cement Industry” to support the goals of the Asia-Pacific Partnership on Clean Development and Climate. This publication is made possible through support from this project.
2
Corporate GHG Inventory Program Guide
Table of Contents Chapter 1
Introduct ion
Chap Ch apte terr 2
Prog Pr ogra ramm mme e Pr Prin inci cipl ples es an and d Re Requ quir irem emen entts
Chap Ch apte terr 3
Gree Gr eenh nhou ouse se Gas ases es fo forr Acc Accou ount ntin ing g and and Rep epor orti ting ng
Chap Ch apte terr 4
Geo eogr grap aphi hica call and and Or Orga gani nisa sati tion onal al Bo Boun und dar arie iess
Chapter 5
Operati tio onal Boundaries
Chapter 6
Calculati tin ng GH GHG Emiss ssiions
Cha hapt pte er 7
GHG GH G In Inte tens nsiity Reduc ucti tion on Go Goal als
Chapter 8
Reporting GH GHG Emissions
Glossary Append App endix ix 1
CII Cod Code e for Ecol Ecologi ogical cally ly Sust Sustain ainabl able Busine Business ss Growth Growth
Append App endix ix 2
Selected ected GHG GHG Progr Program ammes mes Bas Based ed on on or Info Inform rmed ed by by the the GHG Pro Protoc tocol ol
Append App endix ix 3
GHG Acc Accou ountin nting g Decis Decision ionss in in Sel Select ected ed GHG Pr Progr ogramm ammes es
Append App endix ix 4
Gas At Atmo mosph spheri ericc Life Lifetim time e and and Globa Globall Warm Warming ing Po Poten tentia tiall
Appendix Append ix 5
Overvie Ove rview w of Dire Direct ct and and Indirect Indirect GHG emiss emission ion Sour Sources ces for for Vario Various us Ind Indust ustrial rial Sect Sectors ors
Appe Ap pendi ndix x6
Emis Em issi sion on Fac Facto tors rs for for Indi Indian an Reg Regio iona nall Grid Gridss
Append App endix ix 7
Direct Dir ect Emiss Emission ionss from from Secto Sector-s r-spec pecifi ificc Source Sourcess (Cemen (Cementt, Iron Iron and Ste Steel el Production (CO2 Emissions), Pulp and Paper Production (CO2 Emissions), Refrigeration and A/C equipment Manufacturing (HFC and PFC Emissions), Aluminum Production (CO2 and PFC Emissions)
References About CII About CII- Godrej GBC About Asia-Pacific Partnership (APP) About World Resources Institute (WRI) About USEPA Climate Leaders Programme
Confederation of Indian Industry
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Abbreviations and Acronyms
4
APP
Asia-Pacific Partnership on Clean Development and Climate
CCAR
California Climate Action Registry
CCX
Chicago Climate Exchange
CDM
Clean Development Mechanism
CER
Certified Emission Reduction
CH4
Methane
CII
Confederation of Indian Industry
CII-GBC
Confederation of Indian Industry-Sohrabji Godrej Green Business Centre
CHP
Combined Heat & Power
CO2
Carbon Dioxide
CO2-eq
Carbon Dioxide Equivalent
EU ETS
European Union Emissions Trading Scheme
GHG
Greenhouse Gas
GOI
Government of India
GWP
Global Warming Potential
HFCs
Hydrofluorocarbons
IPCC
Intergovernmental Panel on Climate Change
ISO
International Organization for Standardization
JI
Joint Implementation
kWh
kilo-Watt hour
MSG
Mission on Sustainable Growth
NRGF
Nelson’s Refinery Grading Factor
N2O
Nitrous Oxide
NGO
Non-Governmental Organisation
PFCs
Perfluorocarbons
SF6
Sulphur Hexafluoride
T&D
Transmission and Distribution
UNFCCC
United Nations Framework Convention on Climate Change
USEPA
US Environmental Protection Agency
WBCSD
World Business Council for Sustainable Development
WRI
World Resources Institute
Corporate GHG Inventory Program Guide
Chapter 1 - Introduction 1.1 Mission on Sustainable Growth A renewed focus on sustainable growth and development is imperative as India strives to maintain its high GDP growth rate in its pursuit of achieving an industrialised country status by the year 2020. Increased consumption of natural resources such as coal, oil, and water accompanies a high growth rate. A movement towards optimal and efficient use of resources is gaining importance as the country grapples with issues of sustainability, prosperity, and energy security. In this context, the Confederation of Indian Industry (CII) has outlined a new forward-looking initiative for the industry called the “Mission on Sustainable Growth” (MSG) to realise the objective of sustainable growth. The core purpose of the mission is “To promote and champion conservation of natural resources in Indian Industry without compromising on high and accelerated growth”. As a first step in the direction of fulfilling this mission, a CII Code for Ecologically Sustainable Business Growth has been developed, which aims to involve the top management of companies to seek voluntary commitments to reduce resource consumption and emissions intensity (emissions per unit of production). (See Appendix 1 for a copy of the CII Code for Ecologically Sustainable Business Growth). The CII Code focuses on ten natural commandments, which include energy intensity reduction, decrease in water consumption, greenhouse gas (GHG) emissions intensity reduction, reduction in waste generation, utilisation of renewable energy, increased rainwater harvesting, green procurement, life cycle analysis, clean technologies, product stewardship and reduction in consumption of other natural resources like paper and wood. This document provides guidance on a programme launched to specifically address the GHG emissions intensity-related commandment of the MSG. 1.2 Climate Change and Implications for India Globally, the impact and effects of GHG emissions are understood more clearly than they ever were. The fact that the 2007 Nobel Peace Prize was awarded to a person (Mr. Al Gore, Former Vice President of United States of America) who has made significant contribution to create awareness about climate change and an organisation (Intergovernmental Panel on Climate Change [IPCC]), which has worked unstinted towards understanding and mitigating the impact of GHG emissions stand testimony to the criticality of the issue of climate change. Global carbon dioxide (CO 2) concentration ranged from 180 to 300 parts per million (ppm) over past 400,000 years. It varied roughly between 270-290 ppm over the past 1000 years in the pre-industrial era (before 1860) and was practically stable. Since the middle of the 19th century, CO 2 concentration has been increasing rapidly and has exceeded 370 ppm at present. The impacts of growing GHG emissions such as higher average temperature, rising sea water level, submerging low-lying areas, and unpredictable changes in climatic conditions are being validated and noticed day by day. India has been identified as one of the climate change ‘hotspots’ joining a group of countries which are amongst the most vulnerable to hazards such as floods, cyclones and droughts over the next two to three decades.1 The recently released National Action Plan on Climate Change also discusses possible impacts of projected climate change on the country’s water resources, health, forests, agriculture and food production, coastal areas and its vulnerability to extreme events. 1
Care International, the UN Office for the Coordination of Humanitarian Affairs and Maplecroft. 2008. ‘Humanitarian Implications of Climate Change: Mapping emerging trends and risk hotspot s ’. August 2008. Available at http://www.careclimatechange.org/careclimatechange.org/ events__activities/new_report (last viewed on September 16, 2008).
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Increasing GHG levels in the atmosphere and associated impacts have instigated several governments, non-governmental organisations, businesses, and individuals to take proactive measures to curtail the rate of growth of emissions. Several governments have undertaken legislative steps to minimise the rate of increase of GHG levels in the atmosphere through measures such as introduction of emissions trading programmes, voluntary programmes, carbon or energy taxes, and regulations and standards on energy efficiency. Business organisations and industry as a whole has taken a lead role in several voluntary initiatives to reduce their emissions. Management of GHG emissions is increasingly being seen as an essential element of sustainable development in developing countries such as India as well. In June 2008, the Government of India released the National Action Plan on Climate Change, a policy document outlining a number of steps and measures that focus on achieving GHG mitigation and adaptation to climate change in ways that also promote the country’s development objectives. Under the Plan, eight missions have been set up to help the country mitigate and adapt to climate change including a mission on enhanced energy efficiency in industry. As part of this mission, the National Plan discusses GHG mitigation options in the industry (through sector-specific or cross-cutting technological options and through fuel switch options) and ways to promote energy efficiency in residential and commercial sector. According to the Plan, CO2 emissions from fuel and electricity use in the industrial sector can by reduced by 16% in 2031 compared to the business as usual scenario. Indian industry is well aware of the risks associated with climate change on their corporate functioning as well as the opportunities that tackling climate change offers. The industry is well-positioned to transform the challenge of climate change into an opportunity. In one of its discussion papers “Building a low-carbon Indian economy,” CII focuses on the adopted strategies and outlines technologies, practices and policies for the future that will help India leapfrog to a low-carbon economy (The report can be downloaded at http:// cii.in/menu_content.php?menu_id=1209). 1.3 Profit proposition of a GHG inventory With increasing importance being given to climate change and GHG issues, organisations are pursuing GHG management in a big way. They often cite some of the following business goals and co-benefits as reasons for compiling a GHG inventory and monitoring their carbon footprint: • Managing GHG risks and identifying cost-effective reduction opportunities Compiling a comprehensive GHG inventory improves a company’s understanding of its emissions profile and any potential GHG liability. A company’s GHG exposure is becoming a management issue in light of heightened scrutiny by the insurance industry and shareholders, as is also evident from the findings of a 2008 survey of Indian companies by The Financial Express and Emergent Ventures India. 2 What gets measured gets managed; accounting for emissions can help identify the most effective reduction opportunities and help realise cost savings through energy efficiency measures. This can drive increased materials and energy efficiency as well as the development of new products and services that reduce the GHG impacts of customers or suppliers. This in turn can reduce production costs and help differentiate the company in an increasingly environmentally conscious marketplace. Effective GHG management thus leads to sound business management.
2
“Emission reduction can raise shareholder value.” September 8, 2008. Available at http://www.financialexpress.com/news/Emission-reduction-can-raise-shareholder-value/358540/ (last viewed on September 11, 2008); “Realty sector finds green the color of money.” August 25, 2008. Available at http://www.financialexpress.com/news/Realty-sector-finds-green-the-colour-of-money/352931/ (last viewed on September 11, 2008).
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Corporate GHG Inventory Program Guide
• Employee satisfaction and public opinion In a competitive marketplace, a company can distinguish itself from other companies in its sector by measuring and managing its carbon footprint, and promoting itself as an environmentally responsible company. Participation in GHG programmes conveys that the company is environmentally conscious and responsible. While employees may feel more motivated to work for such a company, consumers are also more likely to patronise them, all other things being equal. Companies face a higher reputational risk if consumers perceive them as not doing enough to mitigate their environmental impact and reduce their ecological footprint. • Public reporting As concerns over climate change grow, NGOs, investors, and other stakeholders are increasingly calling for greater corporate disclosure of GHG information. They are interested in the actions companies are taking and in how the companies are positioned relative to their competitors. In response, a growing number of companies are preparing stakeholder reports containing information on GHG emissions. These may be stand-alone reports on GHG emissions or broader environmental or sustainability reports. Public reporting can also strengthen relationships with other stakeholders. For instance, as mentioned earlier, companies can improve their standing with customers and with the public by being recognised for participating in voluntary GHG programmes. If the company wants to go a step further and establish a public GHG target (or internal target), conducting a rigorous GHG inventory is a prerequisite for measuring and reporting progress over time. • Participating in GHG markets and recognition for early voluntary action Market-based approaches to reducing GHG emissions such as emissions trading are emerging in various parts of the world. Developing annual GHG inventory is the first step towards participation in future trading schemes. Knowledge of their emissions profile and performance over time can help companies determine, and perhaps strategically influence, the nature of their participation in emissions trading as a buyer or seller of credits. A company’s voluntary emissions reductions are more likely to be recognised and taken into account in future programmes and emissions trading schemes if they have been accounted for and registered. Being an early mover can reduce a company’s risks and increase potential gains from participation in GHG markets and programmes.
• Environmental co-benefits Energy efficiency measures aimed at reducing GHGs in the industrial sector bring co-benefits in the form of reduced emissions of air pollutants, solid waste and waste water. Some options also lead to an improvement in the quality of the product. Better environmental management enhances the public profile of the company and attracts more investors and customers.
1.4 The CII Corporate GHG Inventory Programme One of the ten natural commandments under the CII Code on Ecologically Sustainable Business Growth calls for organisations to better manage their GHG emissions. 3 In order to enable companies to adhere to this commandment, CII–Sohrabji Godrej Green Business Centre (CII–Godrej GBC) has partnered with the US 3
The fourth natural commandment says “Reduce specific greenhouse gas emissions and other process emissions by 2-6% every year over next ten years and explore opportunities through Clean Development Mechanism (CDM) and other Carbon Exchange Programs”. (The suggested range of reduction of 2-6% is indicative. Individual member companies are free to choose any target. This target can be based on their present levels of operating efficiency, technology adoption and management priorities.)
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Environmental Protection Agency (USEPA) and the World Resources Institute (WRI) to develop the Corporate GHG Inventory Programme. The programme was officially launched in May 2008 in Delhi, India, and a draft version of this guide was released at the launch. The GHG Inventory Programme, based on USEPA’s Climate Leaders programme and WRI/World Business Council on Sustainable Development’s (WRI/WBCSD) GHG Protocol Corporate Standard, seeks to promote international best practices for comprehensive corporate GHG accounting, reporting and management in the country through enlisting widespread participation from various industry sectors. CII-Godrej GBC will work with participating companies to develop inventories of GHG emissions from their operations, analyse and implement opportunities for reducing GHG emissions intensity 4, including energy efficiency and renewable energy, and establish GHG emissions intensity reduction goals. The programme allows companies to participate either at the facility level or at the corporate level. An organisation joining the programme can decide to measure, account for, and monitor its GHG emissions intensity: (i) at a single facility or some facilities and develop a facility-level emissions inventory, or (ii) at a corporate level (all facilities) and develop a corporate-wide emissions inventory Option (ii) is an inclusive approach and CII-Godrej GBC strongly recommends that organisations undertake a complete inventory of their GHG emissions from all facilities and operations. Companies participating successfully under either option will be duly recognised by CII with a higher degree of recognition reserved for those participating under the preferred and desirable Option (ii). Companies starting out under Option (i) with one or more facilities are highly encouraged to start measuring and accounting emissions from all facilities and adopt corporate-wide intensity goals, and become participants under Option (ii) within three years of joining the programme. This programme guide describes how companies should carry out their emissions inventory and report emissions. It discusses accounting rules and guidelines that will facilitate inventorisation and monitoring for companies participating under either Option of the Corporate GHG Inventory Programme. This programme has been supported by the Asia-Pacific Partnership (APP) on Clean Development and Climate. USEPA’s Climate Leaders programme design, and the accounting and reporting guidelines outlined in WRI/WBCSD’s GHG Protocol Corporate Standard have been appropriately modified and customised to formulate the CII-Godrej GBC programme keeping in consideration the specific needs of the signatories to the Mission on Sustainable Growth and the Indian context. Appendix 2 provides a brief description of some other GHG programmes worldwide based on or led by the GHG Protocol guidelines.
4
8
GHG emissions intensity or specific emissions is defined as GHG emissions per unit of production (or turnover).
Corporate GHG Inventory Program Guide
Chapter 2 - Programme Principles and Requirements 2.1 GHG Accounting and Reporting principles WRI/WBCSD in the publication ‘The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard ’ (hereafter referred to as the GHG Protocol Corporate Standard), have remarkably articulated the GHG accounting and reporting principles. The GHG Protocol Corporate Standard is based on principles derived in part from generally accepted financial accounting and reporting guidelines. These principles reflect the outcome of a collaborative process involving stakeholders from a wide range of technical, environmental, and accounting disciplines. CII-Godrej GBC has explicitly adopted the five overarching accounting and reporting principles highlighted in the GHG Protocol Corporate Standard. These accounting and reporting principles are intended to help represent a faithful, true and fair account of an organisation’s GHG emissions, and improving its inventory quality. GHG emissions inventorisation, accounting and reporting practices are new to several organisations, and CII-Godrej GBC strongly recommends organisations participating in the programme to follow these principles while preparing their GHG inventories. GHG accounting and reporting should be based on the following principles: 2.1.1 Relevance Ensure the GHG inventory appropriately reflects the GHG emissions of the company and serves the decision-making needs of users – both internal and external to the company. 2.1.2 Completeness Account for and report on all GHG emission sources and activities within the chosen inventory boundary. Disclose and justify any specific exclusion. 2.1.3 Consistency Use consistent methodologies to allow for meaningful comparisons of emissions over time. Transparently document any changes to the data, inventory boundary, methods, or any other relevant factors in the time series. 2.1.4 Transparency Address all relevant issues in a factual and coherent manner, based on a clear audit trail. Disclose any relevant assumptions and make appropriate references to the accounting and calculation methodologies and data sources used. 2.1.5 Accuracy Ensure that the quantification of GHG emissions is systematically neither over nor under actual emissions, as far as can be judged, and that uncertainties are reduced as far as practicable. Achieve sufficient accuracy to enable users to make decisions with reasonable assurance as to the integrity of the reported information.
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For more information on GHG accounting and reporting principles, please refer: WRI/WBCSD 2004. The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition). Chapter 1. Available at http://www.ghgprotocol.org/files/ghg-protocol-revised.pdf
2.2 Accounting and reporting requirements under the Corporate GHG Inventory Programme Each GHG accounting and reporting programme has its set of rules and requirements, and the following table gives a brief overview of minimum requirements and optional information expected from a company participating in the Corporate GHG Inventory programme. Subsequent chapters discuss these requirements in detail. Table 2.1 : Accounting and reporting requirements and options Issue
Requirements
Optional
Greenhouse
Report at least CO2 emissions in the first year of
May report all six internationally
Gases
joining the programme. In subsequent years,
recognised GHGs (CO2, CH 4, N2O,
(Chapter 3)
report all six internationally recognised GHGs
HFCs, PFCs and SF 6) from the first
(CO2, CH4, N 2O, HFCs, PFCs, SF 6)
year itself
Reporting
Organisations participating under Option (i) 5:
Note: Participants are strongly
Entity
Report emissions from a single facility or some
encouraged to report under
(Chapter 4)
facilities
Option ( ii). Those reporting under 6
Organisations participating under Option (ii) :
Option (i) are strongly encouraged
Report emissions at a corporate level from all
to start reporting under Option (ii)
facilities and operations in India. Emissions
within three years of joining the
should be disaggregated by facility.
programme.
If reporting globally under Option (ii), include emissions from all global operations and facilities, including those in India. Organisational
Report on a control basis
May
report
using
either
Boundaries
operational or financial control
(Chapter 4)
approach Organisations are encouraged to additionally report using equity share approach
Operational
Reporting of Scope-1 emissions required
Reporting of Scope-3 emissions is
Boundaries
Reporting of Scope-2 emissions required
optional
(Chapter 5)
10
Base Year
Organisations participating under Option (i):
(Chapter 2)
Base year is the first year for which complete
5
Option (i) – Account and report GHG emissions at a facility level from one or more (however not all) facilities
6
Option (ii) – Account and report GHG emissions at a corporate level (all facilities and operations)
Corporate GHG Inventory Program Guide
Issue
Requirements
Optional
facility-level data is reported. Each facility will have its own base year to track emissions independently of other facilities. Recalculate base year emissions if changes in calculation methodology occur (emission factors locked-in for three years at a time). Organisations participating under Option (ii): Base year is the first year for which complete corporate-level data is reported from all facilities and operations. A single corporate-wide base year should be established to track emissions over time. Recalculate base year emissions if organisational and/or methodology changes occur7 (emission factors locked-in for three years at a time). A corporate-wide base year should be established when the organisation earlier reporting under Option (i) begins to report under Option (ii). Accounting
Organisations participating under Option (i):
Estimate emissions from all
Thresholds
GHG emission sources can be excluded from the
sources to ensure a complete
(Chapter 5)
inventory only if all excluded sources are
inventory. If need be, use
cumulatively responsible for less than or equal
simplified methodologies to
to 2% of total emissions from the facility. If the
estimate emissions from smaller
organisation is reporting for more than one
sources and clearly state the
facility, total emissions refer to total emissions of
methodology used.
each facility and 2% should be calculated for each individual facility. Organisations participating under Option (ii): GHG emission sources can be excluded from the inventory only if all excluded sources are cumulatively responsible for less than or equal to 2% of the participant’s total corporate-wide emissions.
The key reporting requirements of select GHG programmes like California Climate Action Registry, Canadian GHG Challenge Registry, Chicago Climate Exchange, USEPA’s Climate Leaders, European Union Emissions Trading Scheme, Greenhouse Challenge Plus (Australia), Greenhouse Gas Information System (South Korea), Mexico Greenhouse Gas Program, Philippine Greenhouse Gas Accounting & Reporting Program, Regional Greenhouse Gas Initiative (Northeast United States), and The Climate Registry (North America) are given in Appendix 3.
7
WRI/WBCSD’s Corporate Standard suggests establishing a significance threshold in terms of percentage of base year emissions and if structural or methodology changes cause a percentage change beyond the thres hold, it triggers base year recalculation. CII’s Corporate GHG Inventory Programme has a significance threshold of 0%, i.e., every structural or methodology change will require base year recalculation.
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2.3 Base year, reporting year and submitting year Base year is defined as the first financial year for which an organisation reports complete emissions data from its operations. A complete emissions report is a report that meets all the requirements given in Table 2.1. For example, a company providing complete emissions data for the first time in year 2009 should set the financial year 2008-09 as its base year. For organisations reporting under Option (i), base year is the first year for which complete facility-level data is reported. Under this option, each facility should establish its own base year to track emissions independently of other facilities. For organisations reporting under Option (ii), base year is the first year for which complete corporate-level data is available from all facilities and operations. Organisations should establish a single corporate-wide base year to track emissions over time. An organisation which was earlier reporting under Option (i) and has now started reporting under Option (ii) should also establish a corporate-wide base year. The financial year for which emissions are accounted is called the Reporting Year. The calendar year in which the accounted emissions are presented and inventory is completed, either internally in the organisation or in the public domain, is referred to as the Submitting Year. For example, if an organisation submits emissions for 2008-09 in 2009, the Reporting Year will be financial year 2008-09 and the Submitting Year will be calendar year 2009. Organisations should complete their emissions inventory by June 30 of the Submitting Year. For instance, in the previous example, the organisation should submit its emissions inventory for reporting year 2008-09 by June 30, 2009. 2.3.1 Base year recalculation When tracking emissions over time in a company, participants should recalculate their base year emissions, and consequently emissions intensity, if organisational and structural changes (e.g., acquisitions and divestments) and/or changes in calculation methodology occur. Figure 2.1 and 2.2 illustrate how to recalculate base year emissions in the event of structural changes. Structural changes do not apply to organisations reporting under Option (i) and they should recalculate their base year emissions only when changes in calculation methodology occur. Organic growth or decline, which includes increases or decreases in production output, changes in product mix, and closures and openings, does not trigger base year emissions recalculation. Also, recalculation is not undertaken if the facility or business unit acquired or divested (structural change) did not exist in the base year. Under the Corporate GHG Inventory Programme, participants should establish an annual emissions intensity reduction goal. In order to track their progress towards achieving this goal, participants will compare their current year emissions intensity with the previous year. Therefore, whenever base year recalculation is undertaken, participant organisations should also recalculate emissions and emissions intensity for the preceding year. For organisations participating under Option ( i), recalculation of both base year and preceding year (to accurately track annual goal) should be done at facility level if calculation methodology has been changed or emission factor has been updated. However, emission factors will be locked-in for a period of three years at a time to avoid doing recalculations every year due to updated factors. Structural changes are not applicable in case of organisations reporting under Option (i).
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For organisations participating under Option (ii), recalculations should be done at the corporate level when structural and/or calculation methodology changes occur. Once again, emission factors will be locked-in for a period of three years at a time to avoid recalculations each year if factors are updated annually. If a particular activity, emissions from which were included in the base year and the preceding year, is outsourced and the resulting emissions are accounted as indirect emissions, base year/preceding year recalculation is not required. Alternatively, if a particular activity is insourced and emissions associated with it were included in the base year and the preceding year as indirect emissions, base year/preceding year recalculation is not required. If indirect emissions from the insourced activity were not accounted in the base year and the preceding year, and the activity was subsequently insourced, recalculation of emissions should be done. For more guidance on base year recalculation, see the GHG Protocol Corporate Standard (Chapter 5). Figure 2.1: Base year emissions recalculation for an acquisit ion
Source: WRI/WBCSD 2004. The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition). Chapter 5. Figure 2.2: Base year emissions recalculation for a divestment
Source: WRI/WBCSD 2004. The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition). Chapter 5.
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Chapter 3 - Greenhouse Gases for Accounting and Reporting 3.1 Gases to be considered for GHG account ing and reporting The Corporate GHG Inventory Programme requires participating organisations to account for CO2 emissions, at a minimum, in the first year of joining the programme. In subsequent years, organisations are required to account for and report all six internationally recognised GHGs, which include: 1. Carbon dioxide (CO 2) 2. Methane (CH4) 3. Nitrous oxide (N2O) 4. Hydrofluorocarbons (HFCs) 5. Perfluorocarbons (PFCs) and 6. Sulphur hexafluoride (SF6) HFCs and PFCs are collective names for groups of compounds considered responsible for climate change. The programme encourages organisations to report all six GHGs from the first year itself.
Source: WRI/WBCSD 2007. The Greenhouse Gas Protocol: Measuring to Manage: A Guide to Designing GHG Accounting and Reporting Programs. Chapter 3.
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Corporate GHG Inventory Program Guide
3.2 Converting GHG emissions to units of CO2 equivalent For consistency, the GHG inventory should be based on units of CO 2 equivalent (CO2eq). While the emissions of individual GHGs should be individually accounted and reported, emissions of all non-CO2 gases should be converted to units of CO2eq using respective Global Warming Potentials (GWP). A complete list of internationally recognised GHGs with their GWPs is included in Appendix 4 and companies should use these values based on IPCC Second Assessment Report to calculate CO2eq. To convert to CO2eq, multiply tons of any particular GHG by its relevant GWP, as illustrated in the following example: A company’s GHG inventory contains 70,00,000 tons of CO2/year, 4.00,000 tons of CH 4/year and 700 tons of N2O/year. Total CO2eq
= tons CO2(GWP[CO2]) + tons CH 4(GWP[CH4]) + tons N2O(GWP[N2O]) = 70,00,000 (1) + 4,00,000 (21) + 700 (310) = 15,617,000 tons CO 2eq
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Chapter 4 - Geographical and Organisational Boundaries 4.1 Geographical boundary Once the organisation has decided to go ahead with inventorisation, it is imperative to set boundaries. WRI/ WBCSD have classified geographical boundaries into three levels: 1. Sub-national reporting – participants report emissions from all required sources located within a particular state, or other sub-national region. India currently does not have a sub-national or regional GHG programme. 2. National reporting – participants report emissions from all required sources located within the national boundary. The Corporate GHG Inventory Programme is a national GHG programme. 3. Global reporting – participants report emissions from all required sources throughout their global operations The Corporate GHG Inventory Programme requires that organisations reporting under Option (i) should report emissions from one or more facilities within India. Organisations reporting under Option (ii) should report emissions from all facilities within India. Organisations under Option (ii) can also choose to report globally, however if they do so, the programme requires that they report emissions from all global operations and facilities, including those in India.
4.2 Defining the Reporting Entity The programme allows organisations to participate either at the facility level or at the corporate level: (i) Under Option (i), an organisation accounts for and reports emissions from a single facility or some of its facilities. The organisation is required to develop an independent inventory for each facility if it is reporting emissions from more than one facility. (ii) Under Option (ii), an organisation accounts for and reports emissions from all facilities over which it has control. The organisation is required to develop a complete corporate-level inventory with facility level disaggregation. To utilise the benefits of GHG emission reporting and accounting to the maximum and to define emissions to the fullest, the programme strongly recommends reporting at the highest organisational level possible, i.e, under Option (ii). Moreover, companies starting out under Option (i) with a single or a few facilities are highly encouraged to start measuring and accounting emissions from all facilities and become participants under Option (ii) within three years of joining the programme. The advantages of corporate–level reporting include the following: ·
Provides a more comprehensive view of company’s overall emission performance,
·
Facilitates corporate-level risk management and GHG strategy development,
·
Achieves economies of scale when doing an inventory across the entire company as opposed to select facilities, and
·
Prevents ‘cherry-picking’ wherein, in a voluntary setting, a company reports emissions from facilities with better GHG performance while excluding facilities with worse GHG performance.
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Corporate GHG Inventory Program Guide
4.3 Government agency reporting The programme strongly recommends government entities (district, state, central, etc.) to report at the highest level possible. Individual government agencies and departments (municipalities, corporations, other government organisations, etc.) may report as their own entity, but as soon as the entire municipality, town, city, state or government unit of which they are a part begins to report, all related agencies or departments within that entity’s jurisdiction must be included in the entity’s emissions report. 4.4 Organisational boundary Organisational boundaries do not apply to organisations reporting emissions from one or more facilities under Option (i). Organisational boundaries only apply to those companies reporting emissions at a corporate level under Option (ii). For corporate reporting, the GHG Protocol Corporate Standard identifies and explains two distinct approaches that can be used to consolidate GHG emissions: the equity share and control approaches. The Corporate GHG Inventory programme requires that companies report on a control basis using either one of the two control approaches to account for their emissions. Companies are encouraged to additionally report using the equity share approach. If the reporting company wholly owns all its operations, its organisational boundary will be the same whichever approach is used. For companies with joint operations, the organisat ional boundary and resulting emissions may differ depending on the approach used. In both wholly owned and joint operations, the choice of approach may change how emissions are categorised when operational boundaries are set (see Chapter 5). Both equity share and control approaches are discussed in greater detail here. Figure 4.1 : Organisational and operational boundaries of a company
Source: WRI/WBCSD 2004. The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition). Chapter 4. 4.4.1 Equity share approach Under the equity share approach, a company accounts for GHG emissions from operations according to its share of equity in the operation. The equity share reflects economic interest, which is the extent of rights a company has to the risks and rewards flowing from an operation. Typically, the share of economic risks and rewards in an operation is aligned with the company’s percentage ownership of that operation, and equity share will normally be the same as the ownership percentage. Where this is not the case, the economic substance of the relationship the company has with the operation always overrides the legal ownership form to ensure that equity share reflects the percentage of economic interest. The principle of economic substance taking precedent over legal
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form is consistent with international financial reporting standards. The staff preparing the inventory may therefore need to consult with the company’s accounting or legal staff to ensure that the appropriate equity share percentage is applied for each joint operation. 4.4.2 Control approach Under the control approach, a company accounts for 100 percent of GHG emissions from operations over which it has control. It does not account for GHG emissions from operations in which it owns an interest but has no control. Control can be defined in either financial or operational terms. When using the control approach to consolidate GHG emissions, companies should choose between either the operational control or financial control criteria. In most cases, whether an operation is controlled by the company or not does not vary based on whether the financial control or operational control criterion is used. A notable exception is the oil and gas industry, which often has complex ownership/ operatorship structures. Thus, the choice of control criterion in the oil and gas industry can have substantial consequences for a company’s GHG inventory. While using the control approach, companies should take into account how GHG emissions accounting and reporting can be aligned with financial and environmental reporting, and which criterion best reflects the company’s actual power of control. 4.4.2.1 Financial control A company has financial control over the operation if the company has the ability to direct the financial and operating policies of the operation with a view to gaining economic benefits from its activities. For example, financial control usually exists if the company has the right to the majority of benefits of the operation, however these rights are conveyed. Similarly, a company is considered to financially control an operation if it retains the majority risks and rewards of the ownership of the operation’s assets. Under this criterion, the economic substance of the relationship between the company and the operation takes precedence over the legal ownership status, so that the company may have financial control over the operation even if it has less than a 50 percent interest in that operation. In assessing the economic substance of the relationship, the impact of potential voting rights, including both those held by the company and those held by other parties, is also taken into account. This criterion is consistent with international financial accounting standards; therefore, a company has financial control over an operation for GHG accounting purposes if the operation is considered as a group company or subsidiary for the purpose of financial consolidation, i.e., if the operation is fully consol idated in financial accounts. If this criterion is chosen to determine control, emissions from joint ventures where partners have joint financial control are accounted for based on the equity share approach. 4.4.2.2 Operational control A company has operational control over an operation if the company or one of its subsidiaries has the full authority to introduce and implement its operating pol icies at the operation. This criterion is consistent with the current accounting and reporting practices of many companies that report on emissions from facilities, which they operate (i.e., for which they hold the operating license). It is expected that except in very rare circumstances, if the company or one of its subsidiaries is the operator of a facility, it has the full authority to introduce and implement its operating policies and thus has operational control. Under the operational control approach, a company accounts for 100% of emissions from operations over which it or one of its subsidiaries has operational control. It should be emphasised that having operational control does not mean that a company necessarily has authority to make all decisions concerning an operation. For example, big capital investments will likely require the
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approval of all the partners that have joint financial control. Operational control does mean that a company has the authority to introduce and implement its operating policies. For more details on consolidation approaches for setting organisational boundaries, please refe r: WRI/WBCSD 2004. The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition). Chapter 3. 4.5 Leased facilities/vehicles and landlord/tenant arrangements Organisations should account for and report emissions from leased facilities and vehicles according to the type of lease associated with the facility or source and the organisational boundary approach selected. The following guidance applies to organisations that rent office space (i.e., tenants), vehicles, and other facilities or sources (e.g., industrial equipment). (Source: The Climate Registry 2008. General Reporting Protocol . Version 1.1, May 2008. Chapter 4.) There are two types of leases: 4.5.1 Finance or capital lease This type of lease enables the lessee to operate an asset and also gives the lessee all the risks and rewards of owning the asset. Assets leased under a capital or finance lease are considered wholly owned assets in financial accounting and are recorded as such on the balance sheet. If the organisation has an asset under a finance or capital lease, the accounting and reporting guidelines consider this asset to be wholly owned by the organisation. 4.5.2 Operating lease This type of lease enables the lessee to operate an asset, like a building or vehicle, but does not give the lessee any of the risks or rewards of owning the asset. Any lease that is not a finance or capital lease is an operating lease. In most cases, operating leases cover rented office space and leased vehicles, whereas finance or capital leases are for large industrial equipment. If the organisation has an asset under an operational lease, the accounting and reporting guidelines require this asset be reported only if the organisation is using the operational control approach.
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Chapter 5 - Operational Boundaries 5.1 Direct and indirect emissions It is essential for companies adopting effective and innovative GHG emission management practices to set operational boundaries that are comprehensive with respect to direct and indirect emissions. This will help organisations better manage the complete gamut of GHG risks and opportunities. Direct GHG emissions are emissions from sources that are owned or controlled by the company. Indirect GHG emissions are emissions that are a consequence of the activities of the company, but occur at sources owned or controlled by another company. The classification of direct and indirect emissions is dependent on the consolidation approach (equity share or control) for setting the organisational boundary (see Chapter 4). 5.2 Introducing the concept of “Scope” To clearly demarcate direct and indirect emission sources and to improve transparency, CII has adopted the GHG Protocol Corporate Standard approach of three “scopes” (scope 1, scope 2, and scope 3) defined for GHG accounting and reporting purposes. Scopes 1 and 2 are defined in a way that ensures that two or more companies will not account for same emissions in the same scope. This makes the scopes amenable for use in GHG programmes where double counting matters. Companies should separately account for and report on scopes 1 and 2 at a minimum. 5.2.1 Scope 1: Direct GHG emissions Direct GHG emissions occur from sources that are owned or controlled by a company, for example, emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc.; emissions from chemical production in owned or controlled process equipment. Direct CO 2 emissions from the combustion of biomass should be included in scope 1 and also reported separately. GHG emissions not covered by the Kyoto Protocol, e.g. CFCs, HCFCs, should not be included in scope 1 but may be reported separately. 5.2.2 Scope 2: Electricity indirect GHG emissions Scope 2 accounts for GHG emissions from the generation of purchased electricity consumed by a company. Purchased electricity is defined as electricity that is purchased or otherwise brought into the organisational boundary of the company. Scope 2 emissions physically occur at the facility where electricity is generated. 5.2.3 Scope 3: Other indirect GHG emissions Scope 3 is an optional reporting category that allows for the treatment of all other indirect emissions. Scope 3 emissions are a consequence of the activities of a company, but occur from sources not owned or controlled by the company. Some examples of scope 3 activities are extraction and production of purchased materials; transportation of purchased fuels; and use of sold products and services. 5.3 Defining operational boundary An operational boundary defines the scope of direct and indirect emissions for operations that fall within a company’s established organisational boundary. For organisations reporting under Option (i), each facility will identify its direct and indirect emissions and categorise them under different scopes. For organisations reporting
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under Option (ii), the operational boundary (scope 1, scope 2, and scope 3) is decided at the corporate level after setting the organisational boundary. The selected operational boundary is then uniformly applied to identify and categorise direct and indirect emissions at each operational level. Figure 5.1: Overview of scopes and emissions across a value chain
Source: WRI/WBCSD 2004. The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition). Chapter 4. 5.4 Accounting and reporting on scopes The programme requires organisations to report Scope 1 and Scope 2 emissions. Reporting of Scope 3 emissions is optional but the programme highly encourages companies to report relevant and significant Scope 3 sources keeping in consideration the five principles governing inventory development. While reporting emissions from each source, the calculation methodology should be clearly laid out in the inventory report. GHG emission sources can be excluded from the inventory only if all excluded sources are cumulatively responsible for less than or equal to 2% of total emissions. However, the programme strongly encourages companies to estimate emissions from all sources to ensure a complete inventory. If need be, simplified methodologies can be used to estimate emissions from smaller sources with the inventory report clearly stating the methodology used. If the organisation is reporting for more than one facility under Option (i), total emissions refer to total emissions of each facility and 2% should be calculated for each individual facility. For organisations reporting under Option (ii), GHG emission sources can be excluded from the inventory only if all excluded sources are cumulatively responsible for less than or equal to 2% of the participant’s total corporate-wide emissions. 5.4.1 Scope 1: Direct GHG emissions Companies report GHG emissions from sources they own or control as scope 1. Direct GHG emissions are principally the result of the following types of activities undertaken by the company: ·
Generation of electricity, heat, or steam - These emissions result from combustion of fuels in stationary sources, e.g., boilers, furnaces, turbines;
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·
Physical or chemical processing - Most of these emissions result from manufacture or processing of chemicals and materials, e.g., cement, aluminum, adipic acid, ammonia manufacture, and waste processing;
·
Transportation of materials, products, waste, and employees - These emissions result from the combustion of fuels in company owned/controlled mobile combustion sources (e.g., trucks, trains, ships, airplanes, buses, and cars); and
·
Fugitive emissions - These emissions result from intentional or unintentional releases, e.g., equipment leaks from joints, seals, packing, and gaskets; methane emissions from coal mines and venting; HFC emissions during the use of refrigeration and air cond itioning equipment; and methane leakages from gas transport.
Sale of own-generated electricity Emissions associated with the sale of own-generated electricity to another company are not deducted/netted from scope 1. This treatment of sold electricity is consistent with how other sold GHG-intensive products are accounted, e.g., emissions from the production of sold clinker by a cement company or the production of scrap steel by an iron and steel company are not subtracted from their scope 1 emissions. Emissions associated with the sale/transfer of self- generated electricity may be reported in optional information. 5.4.2 Scope 2: Electricity indirect GHG emissions Companies report the emissions from the generation of purchased electricity that is consumed in its owned or controlled equipment or operations as scope 2. Scope 2 emissions are a special category of indirect emissions. For many companies, purchased electricity represents one of the largest sources of GHG emissions and the most significant opportunity to reduce these emissions. Accounting for scope 2 emissions allows companies to assess the risks and opportunities associated with changing electricity and GHG emissions costs. Another important reason for companies to track these emissions is that the information may be needed for some GHG programmes. Companies can reduce their use of electricity by investing in energy efficient technologies and energy conservation. Additionally, emerging green power markets provide opportunities for some companies to switch to less GHGintensive sources of electricity. Companies can also install an efficient on site co-generation plant, particularly if it replaces the purchase of more GHG-intensive electricity from the grid or electricity supplier. Reporting of scope 2 emissions allows transparent accounting of GHG emissions and reductions associated with such opportunities. Indirect emissions associated with transmission & distribution State Electricity Boards (SEBs) often purchase electricity from independent power generators or the grid and resell it to end-consumers through a transmission and distribution (T&D) system. A portion of the electricity purchased by the SEBs is consumed (T&D loss) during its transmission and distribution to end-consumers. Consistent with the scope 2 definition, emissions from the generation of purchased electricity that is consumed during transmission and distribution are reported in scope 2 by the company (SEBs) that owns or controls the T&D operation. End consumers of the purchased electricity do not report indirect emissions associated with T&D losses in scope 2 because they do not own or control the T&D operation where the electricity is consumed (T&D loss). This approach ensures that there is no double counting within scope 2 since only the T&D utility company will account for indirect emissions associated with T&D losses in scope 2. Another advantage of this approach is that it adds simplicity to the reporting of scope 2 emissions by allowing the use of commonly available emission factors that in most cases do not include T&D losses. End consumers may, however, report their indirect emissions associated with T&D losses in scope 3 under the category “generation of electricity consumed in a T&D system.”
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Other electricity-related indirect emissions Indirect emissions from activities upstream of a company’s electricity provider (e.g., exploration, drilling, flaring, transportation) are reported under scope 3. Emissions from the generation of electricity that has been purchased for resale to end-users are reported in scope 3 under the category “generation of electricity that is purchased and then resold to end users.” Emissions from the generation of purchased electricity for resale to non end-users (e.g., electricity traders) may be reported separately from scope 3 in “optional information.” The following two examples illustrate how GHG emissions are accounted for from the generation, sale, and purchase of electricity. Example 1: Company A is an independent power generator that owns a power generation plant. The power plant produces 100 MWh of electricity and releases 20 tons of emissions per year. Company B is an electricity trader and has a supply contract with company A to purchase all its electricity. Company B resells the purchased electricity (100 MWh) to company C, a utility company that owns/ controls the T&D system. Company C consumes 5 MWh of electricity in its T&D system and sells the remaining 95 MWh to company D. Company D is an end user who consumes the purchased electricity (95 MWh) in its own operations. Company A reports its direct emissions from power generation under scope 1. Company B reports emissions from the purchased electricity sold to a nonend-user as optional information separately from scope 3. Company C reports the indirect emissions from the generation of the part of the purchased electricity that is sold to the end-user under scope 3 and the part of the purchased electricity that it consumes in its T&D system under scope 2. End user D reports the indirect emissions associated with its own consumption of purchased electricity under scope 2 and can optionally report emissions associated with upstream T&D losses in scope 3. Figure 5.2: GHG accounting from the sale and purchase of electricity
Source: WRI/WBCSD 2004. The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition). Chapter 4. Example 2: Company D installs a co-generation unit and sells surplus electricity to a neighbouring company E for its consumption. Company D reports all direct emissions from the co-generation unit under scope 1. Indirect emissions from the generation of electricity for export to E are reported by D under optional information separately from scope 3. Company E reports indirect emissions associated with the consumption of electricity purchased from the company D’s co-generation unit under scope 2.
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5.4.3 Scope 3: Other indirect GHG emissions Scope 3 is optional, but it provides an opportunity to be innovative in GHG management. Companies may want to focus on accounting for and reporting those activities that are relevant to their business and goals, and for which they have reliable information. Since companies have discretion over which categories they choose to report, scope 3 may not lend itself well to comparisons across companies. An indicative list of scope 3 categories is provided here. Some of these activities will be included under scope 1 if the pertinent emission sources are owned or controlled by the company (e.g., if the transportation of products is done by vehicles owned or controlled by the company): • Extraction and production of purchased materials and fuels • Transport-related activities in vehicles not owned/controlled by reporting company: o Transportation of purchased materials or goods o Transportation of purchased fuels o Employee business travel o Employees commuting to and from work o Transportation of sold products o Transportation of waste • Electricity-related activities not included in scope 2 o Extraction, production, and transportation of fuels consumed in the generation of electricity (either purchased or own-generated by the reporting company) o Purchase of electricity that is sold to an end user (reported by generating company) o Generation of electricity that is consumed in a T&D system (reported by end-user) • Leased assets, franchises, and outsourced activities— emissions from such contractual arrangements are only classified as scope 3 if the selected consolidation approach does not apply to them • Use of sold products and services • Waste disposal • Disposal of waste generated in operations o Disposal of waste generated in the production of purchased materials and fuels o Disposal of sold products at the end of their life Accounting for scope 3 emissions Accounting for scope 3 emissions need not involve a full-blown GHG life cycle analysis of all products and operations. Usually it is valuable to focus on one or two major GHG-generating activities. Although it is difficult to provide generic guidance on which scope 3 emissions to include in an inventory, some general steps can be articulated: 1. Describe the value chain: Because the assessment of scope 3 emissions does not require a full life cycle assessment, it is important, for the sake of transparency, to provide a general description of the value chain
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and the associated GHG sources. For this step, the scope 3 categories listed earlier can be used as a checklist. Companies usually face choices on how many levels up- and downstream to include in scope 3. Consideration of the company’s inventory or business goals and relevance of the various scope 3 categories will guide these choices. 2.
Determine which scope 3 categories are relevant: Only some types of upstream or downstream emissions categories might be relevant to the company. They may be relevant for several reasons: • They are large (or believed to be large) relative to the company’s scope 1 and scope 2 emissions • They contribute to the company’s GHG risk exposure • They are deemed critical by key stakeholders (e.g., feedback from customers, suppliers, investors, or civil society) • There are potential emissions reductions that could be undertaken or influenced by the company.
The following examples may help decide which scope 3 categories are relevant to the company. • If fossil fuel or electricity is required to use the company’s products, product use phase emissions may be a relevant category to report. This may be especially important if the company can influence product design attributes (e.g., energy efficiency) or customer behavior in ways that reduce GHG emissions during the use of the products. • Outsourced activities are often candidates for scope 3 emissions assessments. It may be particularly important to include these when an outsourced activity previously contributed significantly to a company’s scope 1 or scope 2 emissions. • If GHG-intensive materials represent a significant fraction of the weight or composition of a product used or manufactured (e.g., cement, aluminum), companies may want to examine whether there are opportunities to reduce their consumption of the product or to substitute less GHG-intensive materials. • Large manufacturing companies may have significant emissions related to transporting purchased materials to centralised production facilities. • Commodity and consumer product companies may want to account for GHGs from transporting raw materials, products, and waste. • Service sector companies may want to report on emissions from employee business travel; this emissions source is not as likely to be significant for other kinds of companies (e.g., manufacturing companies). 3.
Identify partners along the value chain: Identify any partners that contribute potentially significant amounts of GHGs along the value chain (e.g., customers/users, product designers/manufacturers, energy providers, etc.). This is important when trying to identify sources, obtain relevant data, and calculate emissions.
4.
Quantify scope 3 emissions: While data availability and reliability may influence which scope 3 activities are included in the inventory, it is accepted that data accuracy may be lower. It may be more important to understand the relative magnitude of and possible changes to scope 3 activities. Emission estimates are acceptable as long as there is transparency with regard to the estimation approach, and the data used for the
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analysis are adequate to support the objectives of the inventory. Companies should consult CII before deciding which accounting methodologies to use for scope 3 sources. Wherever feasible, organisations are strongly encouraged to use primary data rather than assumptions to quantify scope 3 emissions. Quantification of scope 3 sources should be governed by the five principles of relevance, completeness, consistency, transparency, accuracy as outlined in Chapter 2. Verification of scope 3 emissions will often be difficult and may only be considered if data is of reliable quality. The GHG Protocol Initiative is developing further guidance on product life cycle accounting and Scope 3 accounting and reporting pertaining to the full value chain of an organisation. The Corporate GHG Inventory Programme will follow the development of this new guidance and will consider adopting it when it becomes available.
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Chapter 6 - Calculating GHG Emissions 6.1 Identifying and calculating GHG emissions Once the inventory boundary has been established, companies can calculate their GHG emissions using the following steps: 1. Identify GHG emissions sources 2. Select a GHG emissions calculation approach 3. Collect activity data and choose emission factors (see Appendix 7) 4. Apply calculation tools 5. Roll-up GHG emissions data to corporate level To create an accurate account of their emissions, companies have found it useful to divide overall emissions into specific categories. This allows a company to use specifically developed methodologies to accurately calculate the emissions from each sector and source category. 6.2 Identify GHG emissions sources The first step in identifying and calculating a company’s emissions, as outlined in F igure 6.1, is to categorise GHG sources within that company’s boundaries. GHG emissions typically occur from the following source categories: • Stationary combustion: combustion of fuels in stationary equipment such as boilers, furnaces, burners, turbines, heaters, incinerators, engines, flares, etc. • Mobile combustion: combustion of fuels in transportation devices such as automobiles, trucks, buses, trains, airplanes, boats, ships, barges, vessels, etc. • Process emissions: emissions from physical or chemical processes such as CO2 from the calcination step in cement manufacturing, CO 2 from catalytic cracking in petrochemical processing, PFC emissions from aluminum smelting, etc. • Fugitive emissions: intentional and unintentional releases such as equipment leaks from joints, seals, packing, gaskets, as well as fugitive emissions from coal piles, wastewater treatment, pits, cooling towers, gas processing facilities, etc. Every business has processes, products, or services that generate direct and/or indirect emissions from one or more of the above broad source categories. Appendix 5 provides an overview of direct and indirect GHG emission sources organised by scopes and industry sectors that may be used as an initial guide to identify major GHG emission sources. Figure 6.1: Steps in identifying and calculating GHG emissions Source: WRI/WBCSD 2004. The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition). Chapter 6.
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Identify Scope 1 emissions A company should undertake an exercise to identify its direct emission sources in each of the four source categories listed above. Process emissions are usually only relevant to certain industry sectors like oil and gas, aluminum, cement, etc. Manufacturing companies that generate process emissions and own or control a power production facility will likely have direct emissions from all the main source categories. Office-based organisations may not have any direct GHG emissions except in cases where they own or operate a vehicle, combustion device, or refrigeration and air-conditioning equipment. Often companies are surprised to realise that significant emissions come from sources that are not initially obvious. Identify Scope 2 emissions The next step is to identify indirect emission sources from the consumption of purchased electricity, heat, or steam. Almost all businesses generate indirect emissions due to the purchase of electricity for use in their processes or services. Identify Scope 3 emissions This optional step involves identification of other indirect emissions from a company’s upstream and downstream activities as well as emissions associated with outsourced/contract manufacturing, leases, or franchises not included in scope 1 or scope 2. The inclusion of scope 3 emissions allows businesses to expand their inventory boundary along their value chain and to identify all relevant GHG emissions. This provides a broad overview of various business linkages and possible opportunities for significant GHG emission reductions that may exist upstream or downstream of a company’s immediate operations. 6.3 Select a calculation approach, collect activity data and choose emission factors Calculation approaches and techniques can be arranged in a hierarchy suggesting an order of preference. The programme strongly encourages companies to follow the following order of preference when calculating emissions: (i) Direct measurement (i.e., Continuous Emissions Measurement System) (ii) Site-specific direct fuel measurements with sector-/ technology-/ region-/ country-specific emission factors (iii) Calculations based on global or general emission factors When direct measurement of GHG emissions by monitoring concentration and flow rate is not available, emissions may be calculated through the application of documented emission factors. These factors are calculated ratios relating GHG emissions to a proxy measure of activity at an emissions source. For most small to medium-sized companies and for many larger companies, scope 1 GHG emissions will be calculated based on the consumed quantities of commercial fuels (such as natural gas and heating oil) using published emission factors. Scope 2 GHG emissions will primarily be calculated from metered electricity consumption and published local grid emission factors. Scope 3 GHG emissions will primarily be calculated from activity data such as fuel use or passenger miles and published or third-party emission factors. In most cases, if source- or facility-specific emission factors are available, they are preferable to more generic or general emission factors. Industrial companies may be faced with a wider range of approaches and methodologies, and can seek guidance from the sector-specific guidelines on the GHG Protocol Initiative website or from their industry associations (e.g., International Aluminum Institute, International Iron and Steel Institute, American Petroleum Institute, WBCSD Sustainable Cement Initiative, International Petroleum Industry Environmental Conservation Association) or from CII.
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Note: Appendix 6 gives the weighted average emission factor, simple operating margin (OM), build margin (BM), and combined margin (CM) of all Indian regional grids. 6.4 Apply calculation tools This section provides an overview of the GHG calculation tools and guidance available on the GHG Protocol Initiative website (http://www.ghgprotocol.org/calculation-tools/all-tools). Use of these tools is encouraged as they have been peer-reviewed by experts and industry leaders, are regularly updated, and are believed to be the best available. The tools, however, are optional. Subject to review by CII for accuracy and consistency with programme guidelines, companies may substitute their own GHG calculation methods, when they are more accurate than or are at least consistent with the GHG Protocol Corporate Standard. There are two main categories of calculation tools: • Cross-sector calculation tools that can be applied to different sectors. These include stationary combustion, mobile combustion, HFC use in refrigeration and air conditioning, and measurement and estimation uncertainty. • Sector-specific calculation tools that are designed to calculate emissions in specific sectors such as aluminum, iron and steel, cement, oil and gas, pulp and paper, and office-based organisations. Most companies will need to use more than one calculation tool to cover all their GHG emission sources. For example, to calculate GHG emissions from an aluminum production facility, the company would use the calculation tools for aluminum production, stationary combustion (for any consumption of purchased electricity, on-site generation of energy, etc.), mobile combustion (for transportation of materials and products by train, vehicles employed on-site, employee business travel, etc.), and HFC use (for refrigeration, etc.). 6.4.1 Structure of GHG Protocol calculation tools Each of the cross-sector and sector-specific calculation tools on the GHG Protocol Initiative website (http:// www.ghgprotocol.org/calculation-tools/all-tools) share a common format and include step-by-step guidance on measuring and calculating emissions data. Each tool consists of a guidance section and automated worksheets with explanations on how to use them. The guidance for each calculation tool includes the following sections: •
Overview: provides an overview of the purpose and content of the tool, the calculation method used in the tool, and a process description
•
Choosing activity data and emission factors: provides sector-specific good practice guidance and references for default emission factors
•
Calculation methods: describes different calculation methods depending on the availability of site-specific activity data and emission factors
•
Quality control: provides good practice guidance
•
Internal reporting and documentation: provides guidance on internal documentation to support emissions calculations.
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6.5 Roll up data to corporate level In case of organisations reporting under Option (ii), the final step is to roll up GHG emissions data from multiple facilities to a corporate level to derive total corporate emissions. For organisations reporting under Option (i), rolling up to corporate level is not applicable. 6.6 Examples to illustrate emissions calculation The following examples illustrate the various steps explained in this chapter to calculate GHG emissions for a hypothetical engineering industry and a hypothetical software firm. 1: Calculating emissions from an engineering industry Engineering Technologies Ltd (ETL) is an engineering industry located in an industrial estate in northern India. ETL operates 3 shifts every day and runs for an average of 300 days per year. The industry is close to a metropolitan city and employs 380 people. While the raw material is delivered by contractors/suppliers, the manufactured/ assembled product is delivered by company’s own vehicles to retail shops/dealers. ETL gets its power from the grid but for emergency situations, a diesel generator (DG) is used as stand by. ETL’s grid power consumption is 27,360 Megawatt hour (MWh) per year. The annual power consumption from the DG set is 150 MWh. The company operates a 5 tons per hour (TPH) boiler; fuel oil (FO) fired thermic fluid heater; 200 TR (tons of refrigeration) air-conditioning load and a canteen for its employees. The waste lube oil generated from the process is burnt in the boiler as a fuel substitute. ETL owns and operates 6 container lorries to transport its product. It also owns and operates a bus and 20 cars for its employees. Employees use their own vehicles as well as public transport to commute to work. Some employees from the marketing department also undertake business travel within the state/country using railways and airplanes as mode of transport. Identify GHG emission sources As discussed earlier in the chapter, the first step in the GHG inventorisation process is to identify the various possible GHG emission sources. This requires a thorough understanding of the various activities that are happening, both inside and outside the industry, which can result in GHG emissions. It is better to have an exhaustive, complete list of all the activities and sources to obtain a complete emissions inventory (Table 6.1). Some of the activities may look insignificant or small during the initial process of calculation, however, they may cause a large quantity of emissions. For example, the make up HFC gas in A/C system is few kilograms (kgs) per year, but when converted to equivalent CO 2 emissions, the HFC emissions are multiplied by 1300 (Global Warming Potential (GWP) of HFC) making air-conditioning a significant GHG source. After identification, the sources can be grouped under Scope 1, Scope 2 and Scope 3. Scope 1 emissions, as discussed earlier, are emissions from sources owned or controlled by the company (Table 6.1). Scope 2 emissions are emissions from power generation as the company consumes purchased electricity. Scope 3 emissions result from activities that are a consequence of ETL’s activities but occur from sources not owned or controlled by ETL (e.g., emissions from business travel of employees). Collect activity data and choose emission factor The next step is to gather relevant data pertaining to each activity which will help in calculating total emissions from that activity. And then, use an appropriate emission factor to calculate the resulting GHG emissions. Table 6.1 gives a list of data required for each activity and the corresponding emission factor.
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Table 6.1: Activity data and emission factors to calculate ETL’s emissions Source/ Activity
Data required 9
Emission factor
1
Power generation from the DG set
Type and quantity of fuel consumed or Units of power generated and specific power generation value (to calculate quantity of fuel consumed), and type of fuel used
Kilogramme of CO 2 per litre of fuel (kg CO2/l of fuel)
Scope 1
2
Fuel burnt in boiler
Type and quantity of fuel burnt
kg CO2/l of fuel
Scope 1
3
Fuel burnt in thermic fluid heater
Type and quantity of fuel burnt
kg CO2/l of fuel
Scope 1
4
Fuel used in company owned vehicles
Type and quantity of fuel used or kg CO2/l of fuel Type and number of companyowned vehicles, their mileage, and distance traveled (to calculate quantity of fuel used), and type of fuel used (e.g. diesel, petrol)
Scope 1
5
Waste oil/lube oil burnt within the company
Type and quantity of oil burnt
kg CO2/l of fuel
Scope 1
6
Fuel used in canteen
Type and quantity of fuel used
kg CO2/l of fuel
Scope 1
7
HFC used as a make up for A/C
Type and quantity of HFC used as make up
GWP of HFC
Scope 1
8
Power consumption from the Grid
Units of electricity consumed
Emission factor of Scope 2 grid in kg of CO 2 per kilowatt hour (kg CO2/kWh) (For ETL, northern region grid emission factor will be used)
9
Fuel burnt in vehicles used for raw material transport
Type and quantity of fuel used or kg CO2/l of fuel Number of vehicles used for transport, their mileage, and distance traveled (to calculate quantity of fuel used), and type of fuel used (e.g. diesel, petrol)
Sl. No.
9
Classification of source
Scope 3
Where more than one option is provided, the first option represents the most preferred data, especially to calculate Scope 1 emissions.
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Sl. No.
Source/ Activity
Data required
10
Employee commuting using own vehicle
Type and quantity of fuel used 10 or Type and number of vehicles used, their mileage, and distance traveled (to calculate quantity of fuel used), and type of fuel used (e.g. diesel, petrol)
kg CO2/l of fuel
Scope 3
11
Employee commuting using public transport
Mode of travel and distance covered during travel
kg CO 2 per km per person (for various modes of travel such as by air or by train)
Scope 3
12
Business employees
Mode of travel and distance covered during travel
kg CO 2 per km per Scope 3 person (for various modes of transport such as by air or by train)
travel
by
Emission factor
Classification of source
Below are sample calculations to derive ETL’s total emissions. The emission factors used here are meant for illustration. Organisations should use the most updated and accurate emission factors when quantifying their emissions. 1. Power generation from DG set Annual electricity generated by ETL’s DG set is 1.5 lakh kilowatt hour (kWh). Specific power generation value for the DG set = 4.0 kWh/l Emission factor for diesel: 2.7458 kilogramme of CO 2 per litre (kg CO 2/l) Annual CO2 emissions
=
1.5 x 105 kWh x 2.7458 kg CO 2/l 4 kWh/l
=
1,02,967.5 kg CO2
Note : For illustration purposes this method is used assuming ETL cannot provide data pertaining to type and quantity of fuel used in the DG set. If fuel type and quantity data is available, it should be used to calculate emissions. 2.
Fuel burnt in boiler Furnace oil consumed in ETL’s boiler is 3,294 kilo litre per year. Emission factor for furnace oil: 3.0688 kg CO 2/l Annual CO2 emissions
=
3294 x 103 litre x 3.0688 kg CO 2/l
=
10,108,627.2 kg CO2
3. Fuel burnt in thermic fluid heater Furnace oil consumed in ETL’s thermic fluid heater is 15,000 litre per year. 10
32
For emissions from employee commuting (Scope 3), companies often use data pertaining to number of vehicles, mileage, and fuel type.
Corporate GHG Inventory Program Guide
Emission factor for furnace oil: 3.0688 kg CO 2/l Annual CO2 emissions
=
15000 litre x 3.0688 kg CO2/l
=
46,032 kg CO2
4. Fuel used in company owned vehicles a) Company bus: Company bus travels 90 km each day at an average 8 kilometre per litre (km/l) mileage. The bus operates 360 days in a year and uses diesel as fuel. Emission factor for diesel: 2.7458 kg CO 2/l Annual CO2 emissions
=
90 km x 360 x 2.7458 kg CO2/l 8 km/l
=
11,120.49 kg CO2
b) Company cars: ETL has 20 cars running on petrol that travel 50 km each every day of the year and give an average mileage of 10 km/l. Emission factor for petrol: 2.3822 kg CO2/l Annual CO2 emissions
=
20 x 50 km x 365 x 2.3822 kg CO 2/l 10 km/l
=
86,950.3 kg CO2
Total CO2 emissions: a+b = 98,070.79 kg CO 2
Note : For illustration purposes this method is used assuming ETL cannot provide data pertaining to type and quantity of fuel consumed by company bus and cars. If fuel type and quantity data is available, it should be used to calculate emissions. 5. Waste oil/ lube oil burnt within the industry Waste oil burnt at the rate of 18,000 litre per year. Emission factor for waste oil: 2.7993 kg CO 2/l Annual CO2 emissions
=
18000 litre x 2.7993 kg CO2/l
=
50,387.4 kg CO2
6. Fuel used in canteen 120 LPG (Liquefied Petroleum Gas) cylinders with 19 kg of gas per cylinder are used every month in ETL’s canteen. Emission factor for LPG: 2.31 kg CO 2/kg Annual CO2 emissions
=
120 x 12 x 19 kg x 2.31 kg CO2/kg
=
63,201.6 kg CO2
7. HFC used as a make up for AC Make up of Refrigerant HFC 134a per year is 40 kg
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GWP for HFC 134a = 1300 Annual CO2 emissions
=
40 kg x 1300
=
52,000 kg CO2-eq
8. Power consumption from the Grid Annual electricity consumed by ETL is 273.6 lakh kWh. Emission factor for northern grid: 0.81 kg CO 2/kWh Annual CO2 emissions
=
273.6 x 105 kWh x 0.81 kg CO 2/kWh
=
22,161,600 kg CO2
9. Fuel burnt in vehicles used for raw material transport On an average, 20 vehicles with an average mileage of 8 km/l are used to deliver raw materials. These vehicles use diesel to travel 100 km each day and are in operation for 300 days in a year. Emission factor for diesel: 2.7458 kg CO 2/l Annual CO2 emissions
=
20 x 100 km x 300 x 2.7458 kg CO 2/l 8 km/l
=
2,05,935 kg CO2
Note: For illustration purposes this method is used assuming ETL does not have data pertaining to type and quantity of fuel used to transport raw material. 10. Employee commuting using own vehicle a) Two-wheelers: 150 employees use a two-wheeler each to commute an average distance of 20 km per day at 45 km/l mileage. They commute 300 days in a year and the two-wheelers use petrol as fuel. Emission factor for petrol: 2.3822 kg CO 2/l Annual CO2 emissions
=
150 x 20 km x 300 x 2.3822 kg CO2/l 45 km/l
=
47,644 kg CO2
b) Cars: 30 ETL employees use individual cars for commuting. They travel an average of 18 km in a day using vehicles with an average mileage of 11 km/l. Cars are used for 300 days in a year for commuting and use petrol as fuel. Emission factor for petrol: 2.3822 kg CO 2/l Annual CO2 emissions
=
18 km x 30 x 300 x 2.3822 kg CO 2/l 11 km/l
=
35,083.31 kg CO2
Total CO2 emissions: a+b = 82,727.31 kg CO2
34
Corporate GHG Inventory Program Guide
11. Employee commuting using public transport a) Public Transport (Rail): 100 employees travel a distance of 10 km (to and fro) each day by train to reach ETL from home. They commute 300 days in a year. Emission factor for Railway: 0.0177 kg CO2/km/person Annual CO2 emissions = 100 persons x 10 km x300 x 0.0177 kg CO2/km/person = 5,310 kg CO2 b) Public Transport (Bus): 100 employees travel an average of 15 km (to and fro) each day by road to reach ETL from home. They travel 300 days in a year and the average mileage for bus running on diesel is 8 km/l. Emission factor for diesel: 2.7458 kg CO 2/l Annual CO2 emissions =
100 x 15 km x 300 x 2.7458 kg CO 2/l 8 km/l
=
1,54,451.25 kg CO2
Total CO2 emissions: a+b = 1,59,761.25 kg CO2
12. Business travel by employees a) Public Transport (Rail): 10 employees travel by train covering an average distance of 800 km (to and fro) every month on a business trip. Emission factor for Railway: 0.0177 kg CO2/km/person Annual CO2 emissions = 10 persons x 800 km x 12 x 0.0177 kg CO2/km/person =
1,699 kg CO2
b) Public Transport (Air): 5 employees travel by Air covering an average distance of 1500 km (to and fro) every month on a business trip. Emission factor for Air transport (medium range): 0.12 kg CO 2/km/person Annual CO2 emissions = 5 persons x 1500 km x12 x 0.12 kg CO2/km/person = 10,800 kg CO2 Total CO2 emissions: a+b = 12,499 kg CO2
Note: Emission factors for diesel, petrol, furnace oil (residual fuel oil #5), waste oil (lubricants), and LPG, have been taken from the Cement tool, Version 1.0, April 2005, developed by TERI and WRI. (The cement tool contains factors derived from emission factors given in IPCC, 1999, Volume 2, Section 1). Emission factor for northern region grid is from the Central Electricity Authority (CEA) (CO2 Baseline Database for the Indian Power Sector, User Guide, Version 3.0, December 2007. Table B, p36, Combined Margin including Imports for the year 2006-07. http://www.cea.nic.in/planning/c%20and%20e/user_guide_ver3.pdf). GWP for HFC-134a is from the IPCC Second Assessment Report (1995). Emission factor for travel by airplane is from WRI’s Business Travel and Service Sector Tool, Version 1.2, August 2005 (available under ‘CO 2 emissions from business travel’ at http://www.ghgprotocol.org/calculation-tools/alltools). Emission factor for travel by train is derived from Indian railways “S tatement of fuel consumption by classes of services on government railways for The years 2005-06 and 2006-07”
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Table 6.2: Annual emissions inventory summary of ETL
S. No.
Activity
Annual Emissions (kg CO2 eq)*
Percent of total emissions 31.74
66.86
Scope 1 Scope 2 Scope 3
Total Emissions
Annual Emissions by Scope (kg CO2 eq) 10,521,286.49
22,161,600.00 460,922.56
1.39
33,143,809.05
100
36
Corporate GHG Inventory Program Guide
Example 2: Calculating emissions from a software company Software Solutions Company (SSC) is a software firm with its office in Bangalore, India. SSC has 150 employees and operates for ten hours a day, 300 days in a year. The power supply comes from the southern grid and for emergency a DG set is kept as stand by. The company owns and operates 5 cars for senior executives’ travel and a bus for employee commuting. 50 employees use the company bus for daily commuting to office. 50 employees travel to work by car and 50 employees use their two wheelers for commuting. Senior executives and marketing department staff travel for business within the country. Table 6.3 gives the emission sources categorised under different scopes and the activity data to be gathered along with the corresponding emission factors. Table 6.3: Activity data and emission factors to calculate SSC’s emissions
11
S. No.
Source / Activity
1
Power generation from the DG set
2
Fuel used in company owned vehicles
3
Fuel used in canteen
4
HFC used as a make up for A/C
5
Power consumption from the Grid
6
Employee commuting using own vehicle
Data required 11
Type and quantity of fuel consumed or Units of power generated and specific power generation value (to calculate quantity of fuel consumed), and type of fuel used
Emission factor
Kilogramme of CO 2 per litre of fuel (kg CO 2/l of fuel)
Type and quantity of fuel used Kg CO2/l of fuel or Type and number of company-owned vehicles, their mileage, and distance traveled (to calculate quantity of fuel used), and type of fuel used (e.g. diesel, petrol) Type and quantity of fuel used Type and quantity of HFC used as make up Units of electricity consumed
Type and quantity of fuel used or Type and number of vehicles used, their mileage, and distance traveled (to calculate quantity of fuel used), and type of fuel used (e.g. diesel, petrol)
Classification of source Scope 1
Scope 1
Kg CO2/l of fuel
Scope 1
GWP of HFC
Scope 1
Emission factor of grid in kg of CO2 per kilowatt hour (kg CO 2/kWh) For ETL, northern region grid emission factor will be used)
Scope 2
Kg CO2/l of fuel
Scope 3
Where more than one option is provided, the first option represents the most preferred data, especially to calculate Scope 1 emissions.
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7
Business travel by employees
Mode of travel and distance covered during travel
Kg CO2 per km per person (for various modes of transport such as by air or by train)
Scope 3
Below are sample calculations to derive SSC’s total emissions. The emission factors used here are meant for illustration. It is again noted that organisations should use the most updated and accurate emission factors when quantifying their emissions. 1.
Power generation from the DG set Fuel (diesel) consumption per month is 300 litre. Emission factor for diesel: 2.7458 kg CO 2/l Annual CO2 emissions
2.
=
300 litre x 12 months x 2.7458 kg CO2/l
=
9884.88 kg CO2
Fuel used in company owned vehicles a) Company bus: The company bus consumes 1800 litre of diesel per month.
Annual CO2 emissions
=
1800 litre x 12 months x 2.7458 kg CO2/l
=
59,309.28 kg CO2
b) Company cars: SSC has 5 cars that consume 4 litre of petrol operating 360 days in a year.
Emission factor for petrol: 2.3822 kg CO2/l Annual CO2 emissions
=
5 x 4 litre x 360 days x 2.3822 kg CO2/l
=
17,151.84 kg CO2
Total CO2 emissions: a + b = 76,461.12 kg CO2
Note : This method using fuel type and quantity is the most preferred method to calculate Scope 1 emissions from company-owned vehicles. If data pertaining to type and quantity of fuel is not available, number of vehicles, their mileage and fuel quantity can be used to calculate emissions as illustrated earlier in ETL’s example. 3.
Fuel used in canteen SSC uses 3 LPG cylinders of 19 kg each every month in its canteen. Emission factor for LPG: 1.5737 kg CO 2/l Density of LPG
=
0.54 kg/l
Annual CO2 emissions
=
3 x 19 kg x 12 months x 1.5737 kg CO2/l 0.54 kg/l
=
38
1993.35 kg CO2
Corporate GHG Inventory Program Guide
4.
HFC used as a make up for AC Make up of Refrigerant HFC 134a per year = 3.6 kg GWP for HFC 134a: 1300 Annual CO2-eq emissions
5.
=
3.6 kg x 1300
=
4680 kg CO2-eq
Power consumption from the Grid Annual electricity consumed = 400 Megawatt hour (MWh) Emission factor for southern grid: 0.85 kg CO 2/kWh Annual CO2 emissions
6.
=
400 x 1000 kWh x 0.85 kg CO2/kWh
=
3,40,000 kg CO2
Employee commuting using own vehicle a) Two-wheelers: 50 employees use a two-wheeler each to come to SSC office for 300 days in a year. Each
person travels an average of 30 km in a day using vehicles that give an average mileage of 45 km/l and use petrol as fuel. Emission factor for petrol: 2.3822 kg CO2/l Annual CO2 emissions
=
50 x 30 km x 300 x 2.3822 kg CO 2/l 45 km/l
=
23,822 kg CO2
b) Cars: 50 employees use a car each to come to SSC for 300 days in a year. Each car travels an average
distance of 40 km in a day, gives an average mileage of 10 km/l and uses petrol as fuel. Emission factor for petrol: 2.3822 kg CO2/l Annual CO2 emissions
=
50 x 40 km x 300 x 2.3822 kg CO 2/l 10 km/l
=
1,42,932 kg CO2
Total CO2 emissions: a + b = 1,66,754 kg CO 2
7.
Business travel by SSC employees Air Travel : An average of 60 employees travel by Air and cover an average distance of 4000 km (to and fro) each every month. Emission factor for Air transport (long range): 0.11 kg CO2/km/person Annual CO2 emissions
=
60 persons x 4000 km x 12 x 0.11 kg CO2/km/person
=
3,16,800 kg CO2
Note: Emission factors for diesel, petrol, and LPG have been taken from the Cement tool, Version 1.0, April 2005, developed by TERI and WRI. (The cement tool contains factors derived from emission factors given in IPCC, 1999, Volume 2, Section 1).
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Emission factor for southern region grid is from the Central Electricity Authority (CEA) (CO2 Baseline Database for the Indian Power Sector, User Guide, Version 3.0, December 2007. Table B, p36, Combined Margin including Imports for the year 2006-07. http://www.cea.nic.in/planning/c%20and%20e/user_guide_ver3.pdf). GWP for HFC-134a is from the IPCC Second Assessment Report (1995). Emission factor for travel by air is from WRI’s Business Travel and Service Sector Tool, Version 1.2, August 2005 (available under ‘CO 2 emissions from business travel’ at http://www.ghgprotocol.org/calculation-tools/all-tools). Table 6.4: Annual emissions inventory summary of SSC S. No.
Activity
Annual Emissions (kg CO2-eq)*
Scope 1 1
Power generated from DG set
2
Fuel used in company owned vehicles
3
Fuel used in canteen
4
HFC used as a make up for AC
93,019.35
Power consumed from the Grid
7
76,461.12
8.34
1993.35
0.22
4680
0.51 3,40,000.0
3,40,000.0
37.09 37.09
83,698.44
52.76
Fuel used by employees commuting in their own vehicles
24,298.44
18.19
Business travel by employees
59,400.00
34.56
Total Emissions
40
10.15 1.08
Scope 3 6
Percent of total emissions
9884.88
Scope 2 5
Annual Emissions by Scope (kg CO2-eq)
14,51,718
100
Corporate GHG Inventory Program Guide
Chapter 7 - GHG Intensity Reduction Goals 7.1 GHG emissions intensity reduction goal One of the commandments of the CII Code on Ecologically Sustainable Business Growth asks companies to manage GHG emissions by reducing their emissions intensity. The signatory companies to the Code and the Corporate GHG Inventory Programme are encouraged to set an annual emissions intensity target (i.e., to reduce GHG emissions per unit of production compared to the preceding year’s emissions per unit of production). In case of organisations participating under Option (i), the annual target should be established at facility level, i.e., the target should be specific to each facility whose emissions are being reported. Organisations reporting under Option (ii) should establish a corporate-wide target. If the organisation moves from reporting under Option (i) to reporting under Option (ii), facility specific targets should be replaced by a single corporate-wide target. The programme strongly encourages reporting under Option (ii) and establishing a corporate-wide target, if not immediately, then within three years of joining the programme. Focusing at the corporate level, which is the highest organisational level, has the advantage of being able to manage GHG risks and opportunities more effectively. It helps focus resources on activities that result in the most cost-effective reductions. The GHG Protocol Corporate Standard which is the basis of the CII Corporate GHG Inventory Programme calculates GHG emissions using a bottom-up approach. This involves calculating emissions at the level of an individual source or facility and then rolling up to the corporate level. Thus a company’s overall emissions may decrease, even if increases occur at specific sources, facilities, or operations and vice-versa. 7.2 Setting a GHG emissions intensity reduction goal The specific numeric target for reducing emissions intensity depends on the present level of organisation’s operating efficiency and technology adoption. The target set by the participating organisations should be:
Facility-wide under Option (i) and Corporate-wide under Option (ii), and
Expressed as a decrease in emissions intensity on an annual basis
Established considering both sector-specific and company realities (When needed, CII will provide guidance to companies in establishing an emissions intensity reduction target by comparing their business-as-usual scenario to sectoral and company benchmarks.
When needed, CII will provide guidance to companies in establishing a target keeping in consideration sectorspecific and company realities. The GHG emissions intensity metrics for select industrial sectors are listed below: Cement
-
Tons of CO2eq/ton of Cement
Automobile
-
Tons of CO2eq/Vehicle type (car, truck, motorbike etc)
Refinery
-
Tons of CO2eq/Bbl/NRGF
Paper
-
Tons of CO2eq/ tons of FNP
Caustic chlorine
-
Tons of CO2eq/ ton of product
Glass
-
Tons of CO2eq/ ton of product
Aluminium
-
Tons of CO2eq/ ton of product
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Copper
-
Tons of CO2eq/ ton of product
Textile
-
kg of CO2eq/kg of product
Ceramic
-
kg of CO2eq/kg of product
Fertiliser
-
Tons of CO2eq/ ton of product
Foundry
-
kg of CO2eq/ton of product
Sugar
-
kg of CO2eq/ton of Cane crushed
Power Plant
-
kg of CO2eq/kWh generated or tons of CO 2eq/MWh generated
For companies with multiple products, the specific GHG emissions or emissions intensity can be calculated for equivalent of one major product. For companies with multiple product and multiple operations, calculation of specific emissions or emissions intensity can be based on Rs. Turnover of the company (i.e., kg or Ton of CO 2eq /Rs. Turnover). Example for calculating change in GHG emissions and emission intensity: GHG emission intensity for year 2006
=
A kg of CO2eq/ton of product
GHG emission intensity for year 2007
=
B kg of CO2eq/ton of product
Actual production for year 2006
=
Y tons of production
Actual production for year 2007
=
Z tons of production
Percentage change in GHG emission intensity
=
A – B x 100 = ……% A
Corresponding change in GHG emissions
=
(A kg of CO2eq/ton x Y tons) –(B kg of CO2eq/ton x Z tons)
=
……kg of CO2eq
7.3 Project based reductions and offsets/credits GHG emissions intensity targets require actual changes in emissions in facilities and operations. When organisations implement internal projects that reduce GHGs from their operations, the resulting reductions are usually captured in the inventory’s boundaries. These reductions need not be reported separately unless they are sold, traded externally, or otherwise used as an offset or credit. Some companies may be able to make changes to their own operations that result in changes in GHG emissions at sources not included in their own inventory boundary, or not captured by comparing emissions changes over time. For example: o Installing an on-site power generation plant (e.g., a combined heat a nd power, or CHP, plant) that provides surplus electricity to other companies may increase a company’s direct emissions, while displacing the consumption of grid electricity by the companies supplied surplus electricity. Any resulting emissions reductions at the plants where this electricity would have otherwise been produced will not be captured in the inventory of the company installing the on-site plant. o Substituting purchased grid electricity with an on-site power generation plant (e.g., CHP) may increase a company’s direct GHG emissions, while reducing the GHG emissions associated with the generation of grid electricity. Depending on the GHG intensity and the supply structure of the electricity grid, this
42
Corporate GHG Inventory Program Guide
reduction may be over- or under-estimated when merely comparing scope 2 emissions over time, if the latter are quantified using an average grid emission factor. o Substituting fossil fuel with waste-derived fuel that might otherwise be used as landfill or incinerated without energy recovery. Such substitution may have no direct effect on (or may even increase) a company’s own GHG emissions. However, it could result in emissions reductions elsewhere by another organisation, e.g., through avoiding landfill gas and fossil fuel use. These reductions may be separately quantified, for example using the GHG Protocol for Project Accounting, and reported in a company’s GHG public report under optional information. Project reductions that are to be used as offsets should also be quantified using the GHG Protocol for Project Accounting that addresses accounting issues specific to project emissions quantification (such as selection of a baseline scenario and baseline emissions, demonstration of additionality, identification and quantification of relevant secondary effects, consideration of reversibil ity, and avoiding double counting). These can also be reported in a company’s GHG public report under optional information.
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Chapter 8 - Reporting GHG Emissions 8.1 GHG inventory reporting requirements The Corporate GHG Inventory Programme reporting requirements are designed to provide credibility and promote continuous improvement in emissions accounting procedures. This chapter provides guidance on the steps to be adopted for reporting GHG emissions. It is not intended to provide guidance on GHG inventory verification. However, the programme encourages signatory companies who wish to undertake third party verification to do so. The programme requires organisations reporting under Option (i) to complete facility-level inventory with an independent inventory for each facility for which emissions are being accounted for. Organisations reporting under Option (ii) are required to report at corporate-level with GHG emissions disaggregated by facility. If an organisation which reported under Option (i) now begins to report under Option (ii), it no longer needs to report at facility level. Instead, it should start reporting at corporate level with emissions disaggregated by facility. 8.2 Reporting requirements Participants to the programme should submit an inventory report annually. This report should consist of two components:
Inventory Management Plan (IMP) – An IMP describes the process for completing a high quality, facility-/corporate-wide inventory.
Annual GHG Inventory Summary and Goal Tracking Form – For organisations reporting under Option (i), the annual inventory and goal tracking form should be completed for each individual facility whose emissions are being reported. For organisations reporting under Option (ii), the annual inventory should be disaggregated by facility, while the goal tracking should always be conducted at the corporate level.
The inventory report should be signed by the Chief Executive Head in case of organisations reporting under Option (ii) and Plant/Facility Head in case of those reporting under Option (i). Participants are expected to complete base year reporting within approximately one year of joining the program, however, the programme recognises that the time taken to complete a high-quality inventory and create the processes to obtain complete data for establishing base year can vary depending on the complexity of a company’s operations and existing data collection efforts. Individualised timelines for establishing base year can be considered by CII on a case-by-case basis. However, after completing base year reporting, participants should submit subsequent years’ data by June 30 of every year.
8.2.1 Inventory Management Plan Signatories to the programme should develop and maintain an Inventory Management Plan (IMP) that describes their process for completing a high-quality, facility/corporate level inventory. Companies use an IMP to institutionalise the process for collecting, calculating, and maintaining GHG data (see Climate Leaders website for examples of IMPs). The IMP should consist of seven major sections: 1. Participant Information
-
Organisation name, address and inventory contact information. In case of organisations reporting under Option (i), facility name, address and contact information should also be given.
44
Corporate GHG Inventory Program Guide
2. Boundary Conditions
-
Organisational and operational boundary descriptions. Organisational boundary description will not apply to organisations reporting under Option (i).
3. Emissions Quantification
-
Quantification methodologies and emission factors
4. Data Management
-
Data sources, collection process and quality assurance
5. Recalculat ions
-
Base year and preceding year (for tracking annual targets) adjustments for structural and methodology changes
6. Management Tools
-
Roles and responsibilities, training and file maintenance
7. Auditing & Verification
-
Auditing, management review and corrective action
A checklist (Table 8.1) based on a similar checklist provided by the EPA Climate Leaders programme has been provided here to assist companies’ efforts to develop the IMP. A completed checklist is not a substitute for the IMP; instead, the checklist should be used as a guide to decide the components that should be included in the IMP. As part of the reporting requirements, participants describe in a format of their choice an organisation-specific approach for each component in the checklist. The IMP should be developed within a year of joining the programme, however, a few components (listed as ‘can be completed over time’) can be implemented over a period of three years. Table 8.1: GHG Inventory Management Plan Checklist 8 S.No.
IMP Component
Details Required
Issues to consider
Participant Information
This is only applicable to organisations reporting under Option (i)
Boundary conditions Organisational
This is only ap plicable to organisations reporting under Option (ii)
8
Source: Inventory Management Plan Checklist, EPA Climate Leaders. Available at http://www.epa.gov/stateply/documents/imp-checklist.pdf (last viewed on September 22, 2008)
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Operational
It is not necessary to enumerate each piece of equipment.
46
Corporate GHG Inventory Program Guide
Emissions Quantification
Data Management
source
Roles and responsibilities can be defined over time over time
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Can be defined over t ime ime
Optional Optional
48
This is only applicable when the organisation reports emissions at corporate at corporate level under Option under Option (ii) (ii)
Corporate GHG Inventory Program Guide
Base Year
Management Tools
Can be defined over time time
Can be defined over time time
Can Can be defined over time over time
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8.2.2 Annual GHG Inventory Summary and Goal Tracking Participants should also complete and submit the Annual GHG Inventory Summary and Goal Tracking Form to CII annually. The form records the total emissions by scope in CO2-eq, tracks total emissions over time, and also provides an opportunity to submit any optional information on project reductions and offsets. For organisations reporting under Option (i), a separate form should be submitted for each individual facility whose emissions are being reported (Table 8.2). For organisations reporting under Option (ii), the form should show disaggregated emissions by facility (Table 8.3).
Table 8.2: Suggested form for annual inventory and goal tracking for organisations reporting under Option (i) S.No.
50
Reporting Information
Information/ Data
Corporate GHG Inventory Program Guide
Facility Inventory Base Year (Year 1)
Year Annual emissions (Tons of CO2 eq)
Year 2
Year 3
Year 49
Scope1 (Direct Emissions)
Total Scope 1
7a.
Scope 2 (Indirect Emissions) 7b. Total Scope 2 Scope 3 Other Indirect emissions (optional)
Total Scope 3 Total annual emissions (tons of CO2 eq) (Total Scope 1 + Total Scope 2 + Total Scope 3) 7c.
Goal Tracking at Facility level
9
Add more years, as needed Insert more rows for sources, as needed 11 Insert more rows for sources, as needed 15 Direct CO2 emissions (Scope 1) from the combustion of biomass should be included in total scope 1 emissions and also reported separately. 10
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Other Information
Descriptive Information
Table 8.3: Suggested form for annual inventory and goal tracking for organisations reporting under Option(ii) S.No.
12 13
52
Reporting Information
Information/Data
Insert rows for each project, as needed Insert rows for each offset, as needed
Corporate GHG Inventory Program Guide
Corporate Inventory (disaggregated by facility) Facility 114 Base Year (Year 1) Year 2
Year 3
Year 415
Year Annual emissions (Tons of CO2 eq)
Scope1 (Direct Emissions)
7a.
Total Scope 1
Scope 2 (Indirect Emissions) 7b. Total Scope 2 Scope 3 Other Indirect emissions (optional)
7c. Total Scope 3
Total annual emissions (tons of CO2 eq) (Total Scope 1 + Total Scope 2 + Total Scope 3)
Goal Tracking at Corporate level
14
Repeat all the information in rows 6-8 for each facility included within the organisational boundary Add more years, as needed 16 Insert more rows for sources, as needed 17 Insert more rows for sources, as needed 22 Direct CO2 emissions (Scope 1) from the combustion of biomass should be included in total scope 1 emissions and also reported separately. 15
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Other Information at Corporate level
Descriptive Information at Corporate level
8.3 Review Process CII will conduct a desktop review of signatory companies’ IMP and the annual inventory data and goal tracking form, and will provide feedback to companies based on its review. CII expects that the review process will help in improving the quality of the inventory through timely feedback on accuracy, efficiency, and relevance of companies’ and facilities’ GHG inventory data and management systems. The desktop review is designed to enhance the credibility of the GHG emissions data reported and foster continuous improvement in emissions accounting and reporting procedures of the participating companies. While doing the review, CII will closely follow the IMP checklist to ensure that adequate process was followed to complete a high quality, facility-/ corporate-wide inventory.
18 19
54
Insert rows for each project, as needed Insert rows for each offset, as needed
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Depending on the results of the desktop review, CII will decide whether a site visit is needed to ensure an accurate accounting and reporting of emissions based on the programme guidelines. The decision to conduct site visits will be taken on a case-by-case basis. 8.4 Confidentiality of data CII, in consultation with the signatory company, will publish GHG emissions intensity data and percentage reduction achieved over the previous year on CII’s website and other forums. If the company is not willing to share the data publicly, the information gathered will be kept confidential by CII. 8.5 Third-party verification Third-party verification is not compulsory for the signatories to the programme, however, CII highly encourages companies to take up third-party review. This will also help companies to meet the requirements of any carbon trading programmes that they may participate in. 8.6 Recognition to Participants CII will provide participants reporting under Option (i) and (ii) with different degrees of recognition, with a higher level of recognition (such as presenting a greenhouse gas accounting and reporting award at a high profile event) reserved for those reporting a complete corporate inventory under Option (ii). A more detailed description of different ways of recognising companies’ continued successful participation in the programme will be developed over the course of time, and CII will lay out clear and transparent guidelines in this regard. The selection process for recognition will go beyond mere participation under Option (i) or (ii), and will assess the quality and robustness of inventory management systems and the nature of intensity reductions achieved (if any). CII will help in publicity and dissemination of a participant’s achievements under the programme through national press releases and featuring case studies on their website. Participants are also encouraged to publicise their participation, intensity reduction goals and accomplishments through media announcements and include this information in internal and external materials such as annual reports.
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Glossary Absolute emissions reduction target/cap A target defined by reduction in absolute emissions over time e.g., reduces CO 2 emissions by 25% below 1994 levels by 2010. Additionality A criterion for assessing whether a project has resulted in GHG emission reductions or removals in addition to what would have occurred in its absence. This is an important criterion when the goal of the project is to offset emissions elsewhere. Allowance A commodity giving its holder the right to emit a certain quantity of GHG. Audit Trail Well organised and transparent historical records documenting how an inventory was compiled. Baseline A hypothetical scenario for what GHG emissions, removals or storage would have been in the absence of the GHG project or project activity. Base year A historic datum (a specific year) against which a company’s emissions are tracked over time. Base year emissions GHG emissions in the base year. Base Year emissions recalculation Recalculation of emissions in the base year to reflect a change in the structure of the company, or to reflect a change in the accounting methodology used. This ensures data consistency over time, i.e., comparisons of like with like over time. Biofuels Fuel made from plant material, e.g. wood, straw and ethanol from plant matter. Biologically sequestered carbon Carbon removed from the atmosphere by biological sinks and stored in plant tissue. Sequestered atmospheric carbon does not include GHGs captured through carbon capture and storage. Boundaries GHG accounting and reporting boundaries can have several dimensions, i.e. organisational, operational, geographic, business unit, and target boundaries. The inventory boundary determines which emissions are accounted and reported by the company.
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Capital Lease A lease which transfers substantially all the risks and rewards of ownership to the lessee and is accounted for as an asset on the balance sheet of the lessee. Also known as a Financial or Finance Lease. Leases other than Capital/Financial/Finance leases are Operating leases. Consult an accountant for further detail as definitions of lease types differ between various accepted financial standards. Clean Development Mechanism (CDM) A mechanism established by Article 12 of the Kyoto Protocol for project-based emission reduction activities in developing countries. The CDM is designed to meet two main objectives: to address the sustainability needs of the host country and to increase the opportunities available to Annex 1 Parties to meet their GHG reduction commitments. The CDM allows for the creation, acquisition and transfer of CERs from climate change mitigation projects undertaken in non-Annex 1 countries. Certified Emission Reductions (CERs) A unit of emission reduction generated by a CDM project. CERs are tradable commodities that can be used by Annex 1 countries to meet their commitments under the Kyoto Protocol. CO2 equivalent (CO2-eq) The universal unit of measurement to indicate the global warming potential (GWP) of each of the six greenhouse gases, expressed in terms of the GWP of one unit of carbon dioxide. It is used to evaluate releasing (or avoiding releasing) different greenhouse gases against a common basis. Co-generation unit/combined heat and power (CHP) A facility producing both electricity and steam/heat using the same fuel supply. Consolidation Combination of GHG emissions data from separate operations that form part of one company or group of companies. Control The ability of a company to direct the policies of another operation. More specifically, it is defined as either operational control (the organisation or one of its subsidiaries has the full authority to introduce and implement its operating policies at the operation) or financial control (the organisation has the ability to direct the financial and operating policies of the operation with a view to gaining economic benefits from its activities). Corporate GHG inventory programme A programme to produce annual corporate inventories that are in keeping with the principles, standards, and guidance of the GHG Protocol Corporate Standard. This includes all institutional, managerial and technical arrangements made for the collection of data, preparation of a GHG inventory, and implementation of the steps taken to manage the quality of their emission inventory. Cross-sector calculation tool A GHG Protocol calculation tool that addresses GHG sources common to various sectors, e.g. emissions from stationary or mobile combustion. See also GHG Protocol calculation tools (www.ghgprotocol.org).
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Direct GHG emissions Emissions from sources that are owned or controlled by the reporting company. Double counting Two or more reporting companies take ownership of the same emissions or reductions. Emissions The release of GHG into the atmosphere. Emission factor A factor allowing GHG emissions to be estimated from a unit of available activity data (e.g. tons of fuel consumed, tons of product produced) and absolute GHG emissions. Equity share The equity share reflects economic interest, which is the extent of rights a company has to the risks and rewards flowing from an operation. Typically, the share of economic risks and rewards in an operation is aligned with the company’s percentage ownership of that operation, and equity share will normally be the same as the ownership percentage. Estimation uncertainty Uncertainty that arises whenever GHG emissions are quantified, due to uncertainty in data inputs and calculation methodologies used to quantify GHG emissions. Finance lease A lease which transfers substantially all the risks and rewards of ownership to the lessee and is accounted for as an asset on the balance sheet of the lessee. Also known as a Capital or Financial Lease. Leases other than Capital/ Financial/Finance leases are Operating leases. Consult an accountant for further detail as definitions of lease types differ between various accepted accounting principles. Fugitive emissions Emissions that are not physically controlled but result from the intentional or unintentional releases of GHGs. They commonly arise from the production, processing transmission storage and use of fuels and other chemicals, often through joints, seals, packing, gaskets, etc. Green Power A generic term for renewable energy sources and specific clean energy technologies that emit fewer GHG emissions relative to other sources of energy that supply the electric grid. Includes solar photovoltaic panels, solar thermal energy, geothermal energy, landfill gas, low-impact hydropower, and wind turbines. Greenhouse gases (GHG) For the purposes of this standard, GHGs are the six gases listed in the Kyoto Protocol: carbon dioxide (CO 2); methane (CH 4); nitrous oxide (N 2O); hydrofluorocarbons (HFCs); perfluorocarbons (PFCs); and sulphur hexafluoride (SF 6).
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GHG credit GHG offsets can be converted into GHG credits when used to meet an externally imposed target. A GHG credit is a convertible and transferable instrument usually bestowed by a GHG programme. GHG emissions intensity (or Intensity ratios) Ratios that express GHG impact per unit of physical activity or unit of economic value (e.g. tons of CO2 emissions per unit of electricity generated). Intensity ratios are the inverse of productivity/efficiency ratios. GHG emission reduction project/ GHG mitigation project A specific project or activity designed to achieve GHG emission reductions, storage of carbon, or enhancement of GHG removals from the atmosphere. GHG projects may be stand-alone projects, or specific activities or elements within a larger non-GHG related project. GHG offset Offsets are discrete GHG reductions used to compensate for (i.e., offset) GHG emissions elsewhere, for example to meet a voluntary or mandatory GHG target or cap. Offsets are calculated relative to a baseline that represents a hypothetical scenario for what emissions would have been in the absence of the mitigation project that generates the offsets. To avoid double counting, the reduction giving rise to the offset must occur at sources or sinks not included in the target or cap for which it is used. GHG programme A generic term used to refer to any voluntary or mandatory international, national, sub-national, government or non-governmental authority that registers, certifies, or regulates GHG emissions or removals outside the company. e.g. CDM, EU ETS, CCX, and CCAR. GHG Protocol calculation tools A number of cross-sector and sector-specific tools that calculate GHG emissions on the basis of activity data and emission factors (available at www.ghgprotocol.org). GHG Protocol for Project Accounting An additional module of the GHG Protocol Initiative addressing the quantification of GHG reduction projects. This includes projects that will be used to offset emissions elsewhere and/or generate credits. More information available at www.ghgprotocol.org GHG Protocol Initiative A multi-stakeholder collaboration convened by the World Resources Institute and World Business Council for Sustainable Development to design, develop and promote the use of accounting and reporting standards for business. It comprises ofthe GHG Protocol Corporate Accounting and Reporting Standard, and the GHG Protocol for Project Accounting. GHG public report Provides, among other details, the reporting company’s physical emissions for its chosen inventory boundary.
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GHG registry A public database of organisational GHG emissions and/or project reductions. For example, the US Department of Energy 1605b Voluntary GHG Reporting Program, CCAR, World Economic Forum’s Global GHG Registry. Each registry has its own rules regarding what and how information is reported. GHG removal Absorbtion or sequestration of GHGs from the atmosphere. GHG sink Any physical unit or process that stores GHGs; usually refers to forests and underground/deep sea reservoirs of CO2. GHG source Any physical unit or process which releases GHG into the atmosphere. GHG target/ cap An overall limit on GHG emissions. GHG trades All purchases or sales of GHG emission allowances, offsets, and credits. Global Warming Potential (GWP) A factor describing the radiative forcing impact (degree of harm to the atmosphere) of one unit of a given GHG relative to one unit of CO2. Group company/subsidiary The parent company has the ability to direct the financial and operating policies of a group company/subsidiary with a view to gaining economic benefits from its activities. Indirect GHG emissions Emissions that are a consequence of the operations of the reporting company, but occur at sources owned or controlled by another company. Insourcing The administration of ancillary business activities, formally performed outside of the company, using resources within a company. Intensity target A target defined by reduction in the ratio of emissions and a business metric over time e.g., reduce CO 2 per ton of cement by 12% between 2000 and 2008.
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Intergovernmental Panel on Climate Change (IPCC) International body of climate change scientists. The role of the IPCC is to assess the scientific, technical and socio-economic information relevant to the understanding of the risk of human-induced climate change (www.ipcc.ch). Inventory A quantified list of an organisation’s GHG emissions and sources. Inventory boundary An imaginary line that encompasses the direct and indirect emissions that are included in the inventory. It results from the chosen organisational and operational boundaries. Inventory quality The extent to which an inventory provides a faithful, true and fair account of an organisation’s GHG emissions. Joint Implementation (JI) The JI mechanism was established in Article 6 of the Kyoto Protocol and refers to climate change mitigation projects implemented between two Annex 1 countries. JI allows for the creation, acquisition and transfer of “emission reduction units” (ERUs). Kyoto Protocol A protocol to the United Nations Framework Convention on Climate Change (UNFCCC). Once entered into force it will require countries listed in its Annex B (developed nations) to meet reduction targets of GHG emissions relative to their 1990 levels during the period of 2008–12. Leakage (Secondary effect) Leakage occurs when a project changes the availability or quantity of a product or service that results in changes in GHG emissions elsewhere. Life Cycle Analysis Assessment of the sum of a product’s effects (e.g. GHG emissions) at each step in its life cycle, including resource extraction, production, use and waste disposal. Material discrepancy An error (for example from an oversight, omission, or miscalculation) that results in the reported quantity being significantly different to the true value to an extent that will influence performance or decisions. Also known as material misstatement. Materiality threshold A concept employed in the process of verification. It is often used to determine whether an error or omission is a material discrepancy or not. It should not be viewed as a de minimus for defining a complete inventory.
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Mobile combustion Burning of fuels by transportation devices such as cars, trucks, trains, airplanes, ships etc. Non-Annex 1 Countries Countries that have ratified or acceded to the UNFCC but are not listed under Annex 1 and are therefore not under any emission reduction obligation (see also Annex 1 countries). Operation A generic term used to denote any kind of business, irrespective of its organisational, governance, or legal structures. An operation can be a facility, subsidiary, affiliated company or other form of joint venture. Operating lease A lease which does not transfer the risks and rewards of ownership to the lessee and is not recorded as an asset in the balance sheet of the lessee. Leases other than Operating leases are Capital/Financial/Finance leases. Consult an accountant for further detail as definitions of lease types differ between various accepted financial standards. Operational boundaries The boundaries that determine the direct and indirect emissions associated with operations owned or controlled by the reporting company. This assessment allows a company to establish which operations and sources cause direct and indirect emissions, and to decide which indirect emissions to include that are a consequence of its operations. Organic growth/decline Increases or decreases in GHG emissions as a result of changes in production output, product mix, plant closures and the opening of new plants. Organisational boundaries The boundaries that determine the operations owned or controlled by the reporting company, depending on the consolidation approach taken (equity or control approach). Outsourcing The contracting out of activities to other businesses. Primary effects The specific GHG reducing elements or activities (reducing GHG emissions, carbon storage, or enhancing GHG removals) that the project is intended to achieve. Process emissions Emissions generated from manufacturing processes, such as the CO 2 that is arises from the break down of calcium carbonate (CaCO3) during cement manufacture.
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Renewable energy Energy taken from sources that are inexhaustible, e.g. wind, water, solar, geothermal energy, and biofuels. Reporting Presenting data to internal management and external users such as regulators, shareholders, the general public or specific stakeholder groups. Reversibility of reductions This occurs when reductions are temporary, or where removed or stored carbon may be returned to the atmosphere at some point in the future. Scope Defines the operational boundaries in relation to indirect and direct GHG emissions. Scope 1 inventory A reporting organisation’s direct GHG emissions. Scope 2 inventory A reporting organisation’s emissions associated with the generation of electricity, heating/ cooling, or steam purchased for own consumption. Scope 3 inventory A reporting organisation’s indirect emissions other than those covered in scope 2. Secondary effects (Leakage) GHG emissions changes resulting from the project not captured by the primary effect(s). These are typically the small, unintended GHG consequences of a project. Sector-specific calculation tools A GHG calculation tool that addresses GHG sources that are unique to certain sectors, e.g., process emissions from aluminum production. (see also GHG Protocol calculation tools). Significance threshold A qualitative or quantitative criteria used to define a significant structural change. It is the responsibility of the company/ verifier to determine the “significance threshold” for considering base year emissions recalculation. In most cases the “significance threshold” depends on the use of the information, the characteristics of the company, and the features of structural changes. Stationary Combustion Burning of fuels to generate electricity, steam, heat, or power in stationary equipment such as boilers, furnaces etc.
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Structural change A change in the organisational or operational boundaries of a company that result in the transfer of ownership or control of emissions from one company to another. Structural changes usually result from a transfer of ownership of emissions, such as mergers, acquisitions, divestitures, but can also include outsourcing/ insourcing. Uncertainty 1. Statistical definition: A parameter associated with the result of a measurement that characterises the dispersion of the values that could be reasonably attributed to the measured quantity. (e.g., the sample variance or coefficient of variation). 2.
Inventory definition: A general and imprecise term which refers to the lack of certainty in emissions-related data resulting from any causal factor, such as the application of non-representative factors or methods, incomplete data on sources and sinks, lack of transparency etc. Reported uncertainty information typically specifies a quantitative estimate of the likely or perceived difference between a reported value and a qualitative description of the likely causes of the difference.
United Nations Framework Convention on Climate Change (UNFCCC) Signed in 1992 at the Rio Earth Summit, the UNFCCC is a milestone Convention on Climate Change treaty that provides an overall framework for international efforts to (UNFCCC) mitigate climate change. The Kyoto Protocol is a protocol to the UNFCCC. Value chain emissions Emissions from the upstream and downstream activities associated with the operations of the reporting company. Verification An independent assessment of the reliability (considering completeness and accuracy) of a GHG inventory.
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Appendix 1 : CII Code for Ecologically Sustainable Business Growth
CII – CODE FOR ECOLOGICALLY SUSTAINABLE BUSINESS GROWTH Being cognizant of the need of sustainable growth and dwindling stock of natural capital, we commit ourselves to the attainment of the following Ten - Natural Capital Commandments. 1)
Reduce specific consumption of energy and water by 2-6%* every year over next ten years
2)
Reduce specific generation of waste and reduce the quantum of waste going to landfills by 26%* every year over next ten years
3)
Increase use of renewables, including renewable energy by 2-10%* every year in place of non-renewables over next ten years
4)
Reduce specific greenhouse gas emissions and other process emissions by 2-6%* every year over next ten years and explore opportunities through Clean Development Mechanism (CDM) and other Carbon Exchange programmes
5)
Increase use of recyclables and enhance recyclability of resources embedded in the product by 2-10%* every year over next ten years
6)
Increase the share of harvested rain water in the overall annual use of water by 2-10%* every year over next ten years
7)
Incorporate life cycle assessment criteria for evaluating new and alternative technologies and products
8)
Strive to adopt green purchase policy and incorporate latest clean technologies
9)
Take lead in promoting and managing product stewardship programme, by forging partnerships with businesses and communities
10)
Reduce depletion of natural capital which is directly attributable to company’s activities, products and services by 2-10%* every year over next ten years.
We also commit to demonstrate attainment of these commandments in our pursuit to certifications such as ISO 9001, ISO 14001, OHSAS 18001, SA 8000, Green Buildings, Eco Labels and the like.
Date :
Signature : _______________________________________
* The figures suggested for reduction are indicative only. The individual member units are free to choose any targets. This target annual reduction could be based on their present levels of operating efficiency, technology adoption and management priorities.
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Appendix 2 : Selected GHG Programmes Based on or Informed by the GHG Protocol The following are several examples of nat ional and regional GHG programmes based on or informed by the GHG Protocol Corporate Standard. This is not meant to be an exhaustive list and is limited to those programmes that have advanced at least to the stage of providing draft programme specifications. The Business Leaders Initiative on Climate Change (BLICC) is an international network of companies from several industries aiming to reduce their impact on climate change. Administered by the consultancy firm Respect, BLICC began in 2000 with the initiative of corporate leaders from international companies including DHL, IKEA and The Body Shop. BLICC members produce GHG inventories based on the GHG Protocol Corporate Standard, and BLICC publishes periodic reports of its members’ climate change strategies, outcomes, and best practices. The California Climate Action Registry was established by California statute as a non-profit, voluntary registry for GHG emissions. The purpose of the Registry is to help companies and organisations with operations in California establish GHG emission baselines. The California Climate Action Registry has been involved in designing The Climate Registry, with which it is expected to merge in 2009 – 10. The Canadian GHG Challenge Registry is a voluntary, publicly accessible national registry of GHG baselines, targets, and reductions. Administered by the Canadian Standards Association, its aim is for participants from all economic sectors and geographic regions to demonstrate meaningful contributions to reducing Canada’s GHG emissions. Participants develop GHG inventories, set GHG targets, and prepare GHG action plans. The Carbon Disclosure Project (CDP) is an independent not-for-profit organisation which acts as an intermediary between shareholders and corporations providing primary climate change data from the world’s largest corporations to the global marketplace. The data is obtained from responses to CDP’s annual information request sent on behalf of institutional investors and purchasing organisations. Launched in 2000, CDP currently represents 385 institutional investors, and is being managed as the CDP India Project by WWF-India and CII in the country. carboNZero is a programme administered by Landcare Research in New Zealand to measure, manage and mitigate carbon dioxide (CO 2) emissions from organisations, products and services, and events. The programme aims to assist individuals and organisations to reduce GHG emissions, and provides guidance on measuring, managing, and offsetting CO2 emissions. The Chicago Climate Exchange (CCX) is a legally binding emission allowance trading system. Participants make a voluntary and legally binding commitment to meet annual GHG reduction targets. Participants who reduce emissions below their targets may sell or bank surplus allowances, while those who emit above their targets purchase CCX Carbon Financial Instrument® contracts. Climate Leaders is an industry-government partnership administered by the United States Environmental Protection Agency (EPA) that works with companies to develop climate change strategies. Participants set corporate-wide GHG reduction targets and create GHG inventories to measure progress towards those targets. Climate Savers, a voluntary programme administered by the World Wildlife Fund, works with companies to set and meet targets to reduce CO2 emissions.
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The European Union Emission Trading Scheme (EU-ETS) is a mandatory, multi-national GHG emission trading scheme launched in 2005 and administered by the European Commission. Under the EU-ETS, regulated installations monitor and report their CO 2 emissions, and annually surrender emission allowances equivalent to their CO2 emissions in that year. Greenhouse Challenge Plus is a partnership between industry and the Australian government to reduce GHG emissions, promote awareness of GHG abatement opportunities, improve energy efficiency, integrate GHG management into business decision-making, and provide more consistent reporting of GHG emissions. Greenhouse Challenge Plus is part of Australia’s national climate change strategy, announced in 2004. The programme is managed by the Australian Greenhouse Office as part of the Australian Government’s Department of the Environment and Water Resources. The Mexico GHG Program is a voluntary GHG accounting and reporting programme created as a partnership between the Mexican Secretariat of Environment and Natural Resources (SEMARNAT), WRI, WBCSD, and the Center of Private-Sector Studies for Sustainable Development (CESPEDES). Participating companies, which include Mexico’s entire cement, petroleum, and beer brewing sectors as well as a significant portion of its steel sector, make a voluntary commitment to create and publicly report corporate GHG inventories each year. The Philippine GHG Accounting and Reporting Program (PhilGARP) is a voluntary GHG accounting and reporting programme created as a partnership between the Manila Observatory, Philippine Business for the Environment, the Department of Environment and Natural Resources, the Department of Energy, WRI, and WBCSD. PhilGARP is designed to train participating businesses and organisations operating in the Philippines on GHG management based on the GHG Protocol standards and tools, to assist participants in the creation of corporate GHG inventories, and to provide a platform for public reporting and information dissemination on GHG management issues. The Regional Greenhouse Gas Initiative (RGGI) is an effort by northeast and mid -Atlantic U.S. states to design a regional cap-and-trade programme covering CO2 emissions from power plants in the region. Subsequent to its first phase, RGGI may be extended to cover other sources and gases. Participants in RGGI include states such as Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, and Vermont. The Climate Registry is a collaboration between states, provinces, and tribes in North Am erica aimed at developing and managing a common GHG emission reporting system that is capable of supporting various GHG emission reporting and reduction policies for its member states, provinces, tribes, and reporting entities. Established by Section 1605(b) of the U.S. Energy Policy Act of 1992, the Voluntary Reporting of Greenhouse Gases Program encourages corporations and other private and public entities to submit ann ual reports of their entity-wide GHG emissions, emission reductions, and sequestration activities. The Program aims to provide a means for voluntary reporting that is complete, reliable, and consistent and permits participants to create a public record of their emissions, emission reductions, and/or sequestration achievements. Source: WRI/WBCSD 2007. The Greenhouse Gas Protocol: Measuring to Manage: A Guide to Designing GHG Accounting and Reporting Programs. Chapter 1.
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Appendix 3 : GHG Accounting Decisions in Selected GHG Programmes Programme Name
Organisational Boundaries
Operational Boundaries
Accounting Thresholds
Base Year
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1. In practice, this policy results in no de minimis sources, since U.S. EPA provides technical assistance to estimate smaller sources using simplified methodologies. 2. Since the EU Emission Trading Scheme, the Greenhouse Gas Information System, and the Regional Greenhouse Gas Initiative define the reporting entity at the facility level, organisational boundary consolidation does not apply. By the same logic, there is no need for a recalculation pol icy or significance threshold in the event of structural changes. 3. The Regional Greenhouse Gas Initiative only covers major electric generating sources, so de minimis is not applicable. 4. Data for the Regional Greenhouse Gas Initiative are reported through Continuous Emission Measurement Systems (CEMS) and are subject to electronic, field, targeted, and random audits. 5. These accounting decisions pertain to voluntary reporting under The Climate Registry. Source: WRI/WBCSD 2007. The Greenhouse Gas Protocol: Measuring to Manage: A Guide to Designing GHG Accounting and Reporting Programs. Chapter 4.
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Appendix 4 : Gas Atmospheric Lifetime and Global Warning Potential (GWP) Greenhouse Gas
Formula
Atmospheric Lifetime (Years)
Global Warming Potential (GWP)a
Carbon dioxide
CO2
50 - 200
1
Methaneb
CH4
12 +/-3
21
Nitrous oxide
N2O
120
SF 6
3,200
23,900
HFC-23
CHF3
264
11,700
HFC-32
CH2F2
5.6
650
HFC-41
CHF3F
3.7
150
HFC-125
C2HF5
32.6
2,800
HFC-134
C2H2F4
10.6
1,000
HFC-134a
C2H2F4
14.6
1,300
FC-143
C2H2F4
10.6
300
HFC-143a
C2H3F3
48.3
3,800
HFC-152a
C2H4F2
1.5
HFC-227ea
C3HF7
36.5
2,900
HFC-236fa
C3H2F6
209
6,300
HFC-245ca
C3H3F5
6.6
560
C5H2F10
17.1
1,300
CF4
50,000
6,500
PFC-116
C2F6
10,000
9,200
PFC-218
C3F8
2,600
7,000
C4F10
2,600
7,000
C 4F 8
2,600
7,000
PFC-4-1-12
C5F12
4,100
7,500
PFC-5-1-14
C6F14
3,200
7,400
Sulphur hexafluoride
310
HFCs:
HFC-4310mee
140
PFCs: PFC-14
PFC-3-1-10 PFC-c318
c-
Source: Intergovermental Panel on Climate Change (IPCC) 1995. Second Assessment Report (SAR). a) 100-year time horizon b) The methane GWP includes the direct effects and those indirect effects due to the production of tropospheric ozone and stratospheric water vapor. The indirect effect due to the production of CO 2 is not included.
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Appendix 5 : Overview of Direct and Indirect GHG Emission Sources for Various Industrial Sectors Scope 1 Emission Sources
Sector
Scope 2 Emission Sources
Scope 3 Emission Sources1
ENERGY
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METALS
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CHEMICALS
MINERALS
WASTE
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PULP & PAPER
HFC, PFC, SF6 & HCFC 22 PRODUCTION
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SEMICONDUCTOR PRODUCTION
OTHER SECTORS
7
1.
Scope 3 activities of outsourcing, contract manufacturing, and franchises are not addressed in this table because the inclusion of specific GHG sources will depend on the nature of the outsourcing.
2.
The American Petroleum Institute’s Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Gas Industry (2004) provides guidelines and calculation methodology for calculating GHG emissions from the oil and gas sector.
3.
The International Aluminum Institute’s Aluminum Sector Greenhouse Gas Protocol (2003), in cooperation with WRI and WBCSD, provides guidelines and tools for calculating GHG emissions from the aluminum sector.
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4.
The International Iron and Steel Institute’s Iron and Steel sector guidelines, in cooperation with WRI and WBCSD, are under development.
5.
The WBCSD Working Group Cement: Toward a Sustainable Cement Industry has developed The Cement CO2 Protocol: CO2 Emissions Monitoring and Reporting Protocol for the Cement Industry (2002), which includes guidelines and tools to calculate GHG emissions from the cement sector.
6. The Climate Change Working Group of the International Council of Forest and Paper Associations has developed Calculation Tools for Estimating Greenhouse Gas Emissions from Pulp and Paper Mills (2002), which includes guidelines and tools to calculate GHG emissions from the pulp and paper sector. 7. Businesses in “other sectors” can estimate GHG emissions using cross-sectoral estimation tools – stationary combustion, mobile (transportation) combustion, HFC use, measurement and estimation uncertainty, and waste. 8. WRI has developed Hot Climate, Cool Commerce:; An Service Sector Office Guide to Greenhouse Gas Management (2006), which is a step-by-step manual for service-sector businesses, and Working 9 to 5 on Climate Change: An Office Guide (2002), which includes guidelines for calculating GHG emissions from officebased organisations. Source: WRI/WBCSD 2004. The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition). Appendix D.
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Appendix 6 : Emission Factors for Indian Regional Grids Table 1: Weighted average emission factor, simple operating margin (OM), build margin (BM) and combined margin (CM) of all Indian regional grids for FY 2006-07 (inter-regional and cross-border electricity transfers included), in tCO2 /MWh Average
OM
BM
CM
North
0.74
1.00
0.63
0.81
East
1.00
1.09
0.93
1.01
South
0.72
1.00
0.71
0.85
West
0.86
0.99
0.59
0.79
North-East
0.40
0.70
0.23
0.46
India
0.80
1.01
0.68
0.84
Average is the average emission of all stations in the grid, weighted by net generation OM is the average emission from all stations excluding the low cost/must run sources. BM is the average emission of the 20% (by net generation) most recent capacity addition in the grid. CM is a weighted average of the OM and BM (here weighted 50 – 50) Source: Central Electricity Authority 2007. CO 2 Baseline Database for the Indian Power Sector, User Guide. Version 3.0. December 2007. Available at http://www.cea.nic.in/planning/c%20and%20e/user_guide_ver3.pdf (last viewed on September 17, 2008).
Table 2: Values for all regional grids for FY 2000-01 until FY 2006-07, including inter – regional and crossborder electricity transfers Weighted Average Emission Rate (tCO2/MWh) (incl. Imports) 2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
North
0.72
0.73
0.75
0.71
0.72
0.73
0.74
East
1.06
1.03
1.09
1.08
1.05
1.05
1.00
South
0.74
0.75
0.82
0.84
0.79
0.74
0.72
West
0.90
0.92
0.90
0.90
0.92
0.89
0.86
North – East
0.42
0.41
0.40
0.43
0.52
0.33
0.40
India
0.82
0.83
0.85
0.85
0.84
0.81
0.80
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Simple Operating Margin (tCO2/MWh) (incl. Imports) 2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
North
0.98
0.98
1.00
0.99
0.98
1.00
1.00
East
1.22
1.19
1.17
1.20
1.17
1.13
1.09
South
1.02
1.00
1.01
1.00
1.00
1.01
1.00
West
0.98
1.01
0.99
0.99
1.01
1.00
0.99
North-East
0.74
0.71
0.74
0.74
0.90
0.70
0.70
India
1.01
1.02
1.02
1.02
1.02
1.02
1.01
Build Margin (tCO2/MWh) (not adjusted for imports) 2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
North
0.53
0.60
0.63
East
0.90
0.97
0.93
South
0.70
0.71
0.71
West
0.77
0.63
0.59
North-East
0.15
0.15
0.23
India
0.69
0.68
0.68
Combined Margin in tCO2/MWh (incl. imports) 2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
North
0.76
0.76
0.77
0.76
0.76
0.80
0.81
East
1.06
1.05
1.04
0.05
1.04
1.05
1.01
South
0.86
0.85
0.86
0.85
0.85
0.86
0.85
West
0.87
0.89
0.88
0.88
0.89
0.82
0.79
North-East
0.44
0.43
0.44
0.44
0.52
0.42
0.46
India
0.85
0.86
0.86
0.86
0.86
0.85
0.84
Source: Central Electricity Authority 2007. CO 2 Baseline Database for the Indian Power Sector, User Guide. Version 3.0. December 2007. Available at http://www.cea.nic.in/planning/c%20and%20e/user_guide_ver3.pdf (last viewed on September 17, 2008).
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Appendix 7 : Direct Emissions from sector specific sources Cement Production (CO2 emissions) Direct Process CO2 Emissions Using Clinker Method
Tier
Method
Emission Factors
Process CO2 emissions from Clinker Calcination A
B
Process CO2 emissions from Discarded Cement Kiln Dust A1
A2
B
Process CO2 emissions from Organic Carbon in Raw Meal A
B
Direct Process CO2 Emissions Using Carbonate Input Method Tier
Method
Emission Factors
A
B
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Clinker Method Source : Cement Sustainability Initiative,The Cement CO2 Protocol: CO 2 Accounting and Reporting Standard for the Cement Industry (2005) Version 2.0. consistent with California Air Resources Board, Draft Regulation for the Mandatory Reporting of Greenhouse Gas Emissions, 2007, and the California Climate Action Registry’s Cement Reporting Protocol, 2005
Process CO2 Emissions
=
CO2(clinker) + CO2 (cement kiln dust)+CO2 (non-carbonatecarbon)
=
(Cli x EF Cli) + (CKD x EF CKD) +(TOCRM x RM x 44/12)
Where: Cli
=
Quantity of clinker produced, metric tons
EFCli
=
Clinker emission factor, metric tons CO2 / metric tons clinker
CKD
=
Quantity CKD discarded
EFCKD
=
CKD emission factor
TOCRM =
Organic carbon content of raw material (%)
RM
Amount of raw material consumed (metric tons /year)
=
44/12 =
The CO2 to carbon molar ratio
Clinker Emission Factor EFCli
=
[(CaO content – non-carbonate CaO) x Molecular ratio of CO2/CaO] + [(MgO Content – non-carbonate MgO) x Molecular ratio of CO2/MgO]
Where: CaO Content (by weight)
=
CaO content of Clinker (%)
MgO Content (by weight)
=
MgO content of Clinker (%)
Molecular ratio of CO2/CaO
=
44g/56g = 0.785
Molecular ratio of CO2/MgO
=
44g/40g = 1.092
CKD Emission Factor: EFcli _____ x d 1+EFcli EFCKD
= _______________ EFcli 1 - _____ x d 1+EFcli
Where:
82
EFCKD
=
CKD Emission Factor
EFcli
=
Clinker Emission Factor
d
=
CKD Calcination Rate :
Corporate GHG Inventory Program Guide
f CO2CKD x (1- f CO2 RM)
d
= 1 - _______________________ f CO2RM x (1- f CO2 CKD)
Where: f CO2CKD = weight fraction of carbonate CO2 in the CKD f CO2 RM = weight fraction of carbonate CO2 in the raw meal
Carbonate Input Method Source : IPCC 2006 (Tier 3 Method) EQUATION 2.3 : TIER 3 : EMISSIONS BASED ON CARBONATE RAW MATERIAL INPUTS TO THE KILN
Where: CO2 Emissions =
emissions of CO2 from cement production, tonnes
EFi
=
emission factor for the particular carbonate i, tonnes CO2/tonne of carbonate
Mi
=
weight or mass of carbonate i consumed in the kiln, tonnes
Fi
=
fraction calcination achieved fro carbonate i, fraction
Md
=
weight or mass of CKD not recycled to the kiln (=‘lost’ CKD), tonnes
Cd
=
weight fraction of original carbonate in the CKD not recycled to the kiln, fraction
EFd
=
emission factor for the uncalcined carbonate in CKD not recycled to the kiln, tonnes CO2/tonne of carbonate
Mk
=
weight or mass of organic or other carbon-bearing nonfuel raw material k, tonnes
Xk
=
fraction of total organic or other carbon in specific non fuel raw material k, fraction
EFk
=
emission factor for kerogen (or other carbon)- bearing non fuel material k, tonnes CO2/tonne carbonate
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Default CO2 Emission Factors for Carbonate Inputs Source : IPCC 2006
HCFC-22 Production (HFC-23 Emissions) Direct Process HFC-23 Emissions from HCFC-22 Production Tier A B C
Method
Emission Factors
Mass Balance Based on Process Efficiencies Source: IPCC 2006, Equations 3.31 – 3.33 (Tier 2 Method) EHFC-23
= EFcalculated x PHCFC-22 x Freleased
Where :
84
EHFC-23
=
by-product HFC-23 emissions from HCFC-22 production, kg
EFcalculated
=
HFC-23 calculated emission factor, kg HFC-23/kg HCFC-22
PHCFC-22
=
total HCFC-22 production, kg
Corporate GHG Inventory Program Guide
Freleased
=
Fraction of the year that this stream was released to atmosphere untreated, fraction
The calculated emission factor can be calculated from both the carbon efficiency and the fluorine efficiency (equations below). The value used in the above equation should be the average of these two values. EFcarbon_balance
= (100-CBE) x Fefficiency loss x FCC 100
Where, EFcarbon_balance = HFC-23 emission factor calculated from carbon balance efficiency, kg HFC-23/kg HCFC-22 CBE
= Carbon balance efficiency, percent
Fefficiency loss = factor to assign efficiency loss to HFC-23, fraction FCC = factor for the carbon content of this component (=0.81), kg HFC-23/kg HCFC-22 EFfluorine_balance
= (100-FBE) x Fefficiency loss x FFC 100
Where, EFfluorine_balance = HFC-23 emission factor calculated from fluorine balance efficiency, kg HFC-23/kg HCFC-22 FBE = Fluorine balance efficiency, percent Ffficiency loss = factor to assign efficiency loss to HFC-23, fraction FFC = factor for the fluorine content of this component (=0.54), kg HFC-23 /kg HCFC-22
Mass Balance Based on Production Data Source :WRI/WBCSD, Calculating HFC-23 Emissions from the Production of HCFC-22,2001. HFC-23 Emissions =
(HCFC-22 Production x HFC-23 Emission Factor)x (1- Fraction Abated x Utilisation Factor)
Where: HCFC-22 Production = total amount of HCFC-22 produced by the facility in metric tons. HFC-23 Emission Factor = EF from HCFC-22 production (metric tons of HFC-23/metric ton of HCFC-22 produced) Fraction Abated(%) = Percent of emissions abated by reduction technologies and practices (if applicable) Utilisation Factor (%) = Percent of time the abatement technology was in use (if applicable) Default Emission Factors Source : IPCC 2006, Table 3.28 HFC-23 Emission Factor (kg HFC-23/kg HCFC-22 produced) by Type Old, un-optimized plants (e.g., 1940s to 1995)
0.04
Plants of recent design, not specifically optimized
0.03
Iron and Steel Production (CO2 Emissions) Direct Process CO2 Emissions from Iron and Steel Production Tier
Method
Emission Factors
A
Mass Balance
Plant-specific carbon content factors
B
Mass Balance
Default carbon content factors (IPCC Table 4.3)
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Mass Balance Method Source : IPCC 2006 Equations 4.9-4.11 (Tier 2/3 method) Process CO2 Emissions = CO2 (Iron & Steel Prod) + CO2 (Sinter Prod) + CO2 (Direct Reduced Iron Prod)
EQUATION 4.9 : CO 2 EMISSIONS FROM IRON & STEEL PRODUCTION (TIER 2) Where, ECO2, non-energy = process emissions of CO2, tonnes PC = quantity of coke consumed in iron and steel production (not including sinter production), tonnes COBa = quantity of onsite coke oven by-product a, consumed in blast furnace, tonnes CI = quantity of coal directly injected into blast furnace, tonnes L = quantity of limestone consumed in iron and steel production, tonnes D = quantity of dolomite consumed in iron and steel production, tonnes CE = quantity of carbon electrodes consumed in EAFs, tonnes Ob = quantity of other carbonaceous and process material b, consumed in iron and steel production, such as sinter or waste plastic, tonnes COG = quantity of coke oven gas consumed in blast furnace in iron and steel production, m 3 (or other unit such as tonnes or GJ) S= quantity of steel produced, tonnes IP = quantity of iron production not converted to steel, tonnes BG = quantity of blast furnace gas transferred offsite, m3 (or other unit such as tonnes or GJ) Cx = carbon content of material input or output x, tonnes C/(unit for material x) [e.g., tonnes C/tonne]
EQUATION 4.10 : CO2 EMISSIONS FROM SINTER PRODUCTION (TIER 2)
Where, ECO ,non-energy = process emissions of CO2, tonnes 2
CBR = quantity of purchased and onsite produced coke breeze used for sinter production, tonnes COG = quantity of coke oven gas consumed in blast furnace in sinter production, m3 (or other unit such as tonnes of GJ) BG = quantity of blast furnace gas consumed in sinter production, m 3 (or other unit such as tonnes of GJ) PMa = quantity of other process material a, other than those l isted as separate terms, such as natural gas and fuel oil, consumed for coke and sinter production in integrated coke production and iron and steel production facilities, tonnes
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Corporate GHG Inventory Program Guide
SOG = quantity of sinter off gas transferred offsite either to iron and steel production facilities or other facilities, m3 (or other unit such as tonnes of GJ) Cx = carbon content of material input or output x, tonnes C/(unit for material x) [e.g., tonnes C/tonne]
EQUATION 4.11 : CO2 EMISSIONS FROM DIRECT REDUCED IRON PRODUCTION (TIER 2) ECO ,non-energy = 2
[DRING x CNG +DRIBZ x CBZ + DRICK x CCK ] x 44/12
Where, ECO ,non-energy = process emissions of CO2, tonnes 2
DRING = amount of natural gas used in direct reduced iron production, GJ DRIBZ = amount of coke breeze used in direct reduced iron production, GJ DRICK = amount of metallurgical coke used in direct reduced iron production, GJ CNG = carbon content of natural gas, tonne C/GJ CBZ = Carbon content of coke breeze, tonne C/GJ CCK = carbon content of metallurgical coke, tonne C/GJ Default Emission Factors Source : IPCC 2006 TABLE 4.3 TIER 2 MATERIAL –SPECIFIC CARBON CONTENTS FOR IRON & STEEL AND COKE PRODUCTION (kg C /kg) Process Materials
Carbon Content
Blast Furnace Gas
0.17
Charcoal*
0.91
Coal1
0.67
Coal Tar
0.62
Coke
0.83
Coke Oven Gas
0.47
Coking Coal
0.73
Direct Reduced Iron (DRI)
0.02
Dolomite
0.13
EAF Carbon Electrodes2
0.82
EAF Charge Carbon 3
0.83
Fuel oil4
0.86
Gas Coke
0.83
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Hot Briquetted Iron
0.02
Limestone
0.12
Natural Gas
0.73
Oxygen Steel Furnace Gas
0.35
Petroleum Coke
0.87
Purchased Pig Iron
0.04
Scrap Iron
0.04
Steel
0.01
Source : Default values are consistent with the those provided in Vol 2 and have been calculated with the assumptions below. Complete references for carbon content data are included in Table 1.2 and 1.3 in Volume 2, Chapter 1. Notes: 1
Assumed other bituminous coal
2
Assumed 80 percent petroleum coke and 20 percent coal tar
3
Assumed coke oven coke
4
Assumed gas / diesel fuel
* The amount of CO 2 emissions from charcoal can be calculated by using this carbon content value, but it should be reported as zero in national greenhouse gas inventories. (See section 1.2 of Volume 1.)
Pulp and Paper Production (CO2 Emissions) Direct Process CO2 Emissions from Make-up Carbonates used in Pulp Mill Tier
Method
Emission Factors
A
Mass Balance
Default stiochiometric emission factors
Mass Balance Method Source: IPCC 2006, Section 2.5 (Consistent with International Council of Forest and Paper Association (ICFPA), Calculation Tools for Estimating Greenhouse Gas Emissions from Pulp and Paper Mills, Version 1.1, 2005 , and European Union , Guidelines for the monitoring and reporting of greenhouse gas emissions, 2006, Annex XI). Where: Carbonate used i = the amount of carbonate i (CaCO 3 and NaCO3) used in the pulp mill (metric tons) Emission Factor i = the stoichiometric ratio for make-up carbonate i (metric tons CO/metric tons CaCO 3 and metric tons CO2/metric tons NaCO3)
Direct Process CO2 Emissions from Limestone or Dolomite Used in Flue Gas Desulfurization systems Tier A
88
Method Mass Balance
Emission Factors Default stiochiometric emission factors
Corporate GHG Inventory Program Guide
Mass Balance Method Source: IPCC 2006, Section 2.5 Where: Carbonate used i = the amount of carbonate i (limestone or dolomite) consumed in the flue gas desulfurization system (tonnes) Emission Factor i = the stoichiometric ratio for carbonate i (metric tons CO 2/metric ton limestone and metric tons CO2/metric ton dolomite)
Default Emission Factors for Pulp and Paper Production Source: IPCC 2006 Table 2.1 FORMULAEE, FORMULA WEIGHTS AND CARBON DIOXIDE CONTENTS OF COMMON CARBONAT SPECIES*
Source: CRC Handbook of Chemistry and Physics (2004) * Final results (i.e., emission estimates) using these data should be rounded to no more than significant figures. ** The fraction of emitted CO 3 assuming 100 percent calcination; e.g., 1 tonne calcite, if fully calcined, would yield 0.43971 tonnes of CO 2. ***Calcite is the principal mineral in limestone. Terms like high magnesium or dolomite limestones refer to a relatively small substitution of Mg for Ca in the general CaCO 3 formula commonly shown for limestone. ****Formulae weight range shown for ankerite that Fe,Mg and Mn are present in amounts of at least 1.0 percent.
Refrigeration and A/C Equipment Manufacturing (HFC and PFC Emissions) Direct Process HFC and PFC Emissions from Manufacturing Refrigeration and A/C Equipment Tier
Method
Emission Factors
A
Mass Balance Using measured refrigent data
n/a
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Mass Balance Method Source: WRI/WBSCD, Calculating HFC and PFC Emissions from the Manufacturing, Unstallation, Operation and Disposal of Refrigerant & Air-Conditioning Equipment (Version 1.0)Consistent with U.S. EPA Climate Leaders, Direct HFC and PFC Emissions from Manufacturing Refrigeration and Air Conditioning Units, 2003
Where: Emissions = Total HFC and PFC emissions from manufacturing refrigeration and A/C equipment, in CO2 – equivalent IBi = amount of refrigerant i in inventory at the beginning of reporting period ( in storage, not equipment) IEi = amount of refrigerant i in inventory at the end of reporting period ( in storage, not equipment) Pi = Purchases/Acquisitions of Refrigerant i. This is the sum of all refrigerant acquired from other entities during the year, including refrigerant purchased from producers/distributors; refrigerant acquired in either storage containers or equipment; refrigerant returned after off-site reclamation or recycling; and refrigerant returned by equipment users. Si = Sales/Disbursements of Refrigerant i. This is the sum of all the refrigerants sold or otherwise disbursed to others entities during the year, including refrigerant sold, delivered, or disbursed in storage containers or charged into equipment; refrigerant recovered and sent off-site for recycling, reclamation or destruction; and refrigerant returned to refrigerant producers GWPi = global warming potential factor for refrigerant i from IPCC second Assessment Report Global Warming Potentials of Refrigerant Blends Refrigerant Blend
90
Global Warming Potential
R-401A
18
R-401B
15
R-401C
21
R-402A
1680
R-402B
1064
R-403A
1400
R-403B
2730
R-404A
3260
R-406A
0
R-407A
1770
R-407B
2285
R-407C
1526
R-407D
1428
R-407E
1363
Corporate GHG Inventory Program Guide
R-408A
1944
R-409A
0
R-409B
0
R-410A
1725
R-410B
1833
R-411A
15
R-411B
4
R-412A
350
R-413A
1774
R-414A
0
R-414B
0
R-415A
25
R-415B
105
R-416A
767
R-417A
1955
R-418A
4
R-419A
2403
R-420A
1144
R-500
37
R-501
0
R-502
0
R-503
4692
R-504
313
R-505
0
R-506
0
R-507 or R-507A
3300
R-508A
10175
R-508B
10350
R-509 or R-509A
3920
Source : ASHRAE Standard 34
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ALUMINIUM PRODUCTION (CO 2 and PFC Emissions) Direct Process CO2 Emissions from Aluminum Production Tier
Method
Emission factors
Process-Specific Mass Balance Method Sources: IPCC 2006 Equations 4.21-4.24(Tier 2/3 Methhods)
CO2 EMISSIONS FROM PREBAKED ANODE CONSUMPTION * NAC * MP *
Where: ECO2 = CO 2 emissions from prebaked anode consumption, tonnes CO2 MP = total metal production, tonnes Al NAC = net prebaked anode consumption per tonne of aluminium, tonnes C/ tonne Al Sa = sulphur content in baked anodes, wt % Asha = ash content in baked anodes, wt % 44/12 = CO2 molecular mass: carbon atomic mass ratio, dimensionless CO2 EMISSIONS FROM PITCH VOLATILES COMBUSTION
GAHw BA WT) *
Where: ECO2 = CO 2 emissions from pitch volatiles combustion, tonnes CO 2 GA = initial weight of green anodes, tonnes Hw = hydrogen content in green anodes, tonnes BA = baked anode production, tonnes WT = waste tar collected, tonnes
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CO2 EMISSIONS FROM BAKE FURNACE PACKING MATERIAL * PCC * BA*
Where: ECO2 = CO 2 emissions from bake furnace packing material, tonnes CO 2 PCC = packing coke consumption, tonnes/tonne BA BA = baked anode production, tones Spc = sulphur content in packing coke, wt % Ashpc = ash content in packing coke, wt % CO2 EMISSIONS FROM PASTE CONSUMPTION ( For Soderberg cells (VSS and HSS) )
PC * MP CSM * MP PC * MP *
Where: ECO2 = CO2 emissions from paste consumption, tonnes CO2 MP = total metal production, tonnes Al PC = paste consumption, tonnes/tonne Al CSM = emissions of cyclohexane soluble matter, kg/tonne Al BC = binder content in paste, wt % Sp = sulphur content in pitch, wt % Ashp = ash content in pitch, wt % Hp = hydrogen content in pitch, wt % Sc = sulphur content in calcined coke, wt % Ashc = ash content in calcined coke, wt % CD = carbon in skimmed dust from Soderberg cells, tonnes C/tonne Al 44/12 = CO2 molecular mass : carbon atomic mass ratio, dimensionless
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Default Emission Factors Sources: IPCC 2006
Table 4.11 DATA SOURCES AND UNCERTAINTIES FOR PARAMETERS USED IN TIER 2 OR 3 METHOD FOR CO2 EMISSIONS FROM PREBAKE CELLS (CWPB AND SWPB) , SEE EQUATION 4.21
Parameter
Tier 2 Method
Tier 3 Method
%
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Corporate GHG Inventory Program Guide
Table 4.12 DATA SOURCES AND UNCERTAINTIES FOR PARAMETERS USED IN TIER 2 OR 3 METHOD FOR CO2 EMISSIONS FROM PITCH VOLATILES COMBUSTION (CWPB AND SWPB) , SEE EQUATION 4.22
Parameter
Tier 2 Method
Tier 3 Method
Table 4.13 DATA SOURCES AND UNCERTAINITIES FOR PARAMETERS IN TIER 2 OR 3 METHOD FOR CO2 EMISSIONS FROM BAKE FURNACE PACKING MATERIAL (CWPB AND SWPB), SEE EQUATION 4.23 Parameter Tier 2 Method Tier 3 Method Data Source Uncertainty Data Source Uncertainty (±%) (±%)
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Table 4.14 DATA SOURCES AND UNCERTAINITIES FOR PARAMETERS IN TIER 2 OR 3 METHOD FOR CO2 EMISSIONS FROM SODERBERG CELLS (VSS AND HSS) Parameter
Tier 2 Method Data Source
96
Tier 2 Method
Data Uncertainty (±%)
Data Source
Data Uncertainty (±%)
Corporate GHG Inventory Program Guide
Direct process PFC emissions from Aluminum Production Tier
Method
Emission Factors
Slope Method: Source : IPCC Table 2006 Equation 4.26 (PFC emissions by slope method, Tier 2 and 3 method) ECF4 = SCF4 * AEM * MP and EC2F6 – ECF4 * FC2F6/CF4 Where: ECF4 = emissions of CF4 from aluminum production, kg CF 4 EC2F6 = emissions of C 2F6 from aluminum production, kg C 2F6 SCF4 = slope coefficient for CF4 (kg CF4/tonne Al)(AE-Mins/cell-day) AEM = anode effect minutes per cell-day, AE-Mins/cell-day MP
= metal production, tones Al
FC2F6/CF4 = weight fraction of FC2F6/CF4, kg C
F /kg CF 2 6 4
Over voltage Method: Source : IPCC Table 2006 Equation 4.27 (PFC emissions by Overvoltage method, Tier 2 and 3 methods) ECF4 - OVC *
AEO . MP * CE/100
and EC2F6 = ECF4 * FC2F6/CF4 Where: ECF4 = emissions of CF4 from aluminum production, kg CF 4 EC2F6 = emissions of C 2F6 from aluminum production, kg C 2F6 OVC = over voltage coefficient for CF 4 , (kg CF4/tonne Al)/mV AEO = anode effect over voltage, mV CE
= aluminum production process current efficiency expressed, percent (e.g, 95 percent)
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MP
= metal production, tonnes Al
FC2F6/CF4 = weight fraction of C2F6/CF4, kg C2F6/kg CF4 Simplified Method: Source: IPCC 2006 Equation 4.25 (PFC emissions, Tier 1 method) Where: ECF4 = emissions of CF4 from aluminum production, kg CF4 EC2F6 = emissions of C2F6 from aluminum production, kg C 2F6 EFCF4,i = default emission factor by cell technology type i for CF 4, kg CF4/tonne Al EFC2F6,i = default emission factor by cell technology type i for C 2F6, kg C2F6/tonne Al MPi
= metal production by cell technology type i, tones Al
Default Emissions Factors Source : IPCC 2006
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Table 4.16 TECHNOLOGY SPECIFIC SCOPE AND OVER VOLTAGE COEFFFICIENTS FOR THE CALCULATION OF PFC EMISSIONS FROM ALUMINUM PRODUCTION (TIER 2 METHOD) Slope Coefficient b,c [(kgPFC/t Al)/(AE Mins/cell day)]
Technology
a
CF4
Over voltage Coefficient b,c,d [(kgCF4/t Al)/(mV)]
Uncertainty (+/ %)
CF4
Uncertainty (+/ %)
Weight fraction C2F6/CF4 CF4
Uncertaint y (+/ %)
a
b c d
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References The Climate Registry. 2008. General Reporting Protocol for the Voluntary Reporting Program . Version 1.1, May 2008. Available at http://www.theclimateregistry.org/downloads/GRP.pdf Government of India, Ministry of Power, Central Electricity Authority. 2007. CO 2 Baseline Database for the Indian Power Sector, User Guide. Version 3.0, December 2007. Available at
http://www.cea.nic.in/planning/c%20and%20e/user_guide_ver3.pdf U.S. Environmental Protection Agency (USEPA). 2005. Climate Leaders Greenhouse Gas Inventory Protocol: Design Principles . Available at http://www.epa.gov/stateply/documents/resources/
design-principles.pdf World Resources Institute and World Business Council for Sustainable Development (WRI/ WBCSD). 2004. The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition). Available at http://www.ghgprotocol.org/files/ghg-protocol-revised.pdf WRI/WBCSD. 2005. The GHG Protocol for Project Accounting . Available at http:// www.ghgprotocol.org/files/ghg_project_protocol.pdf WRI/WBCSD. 2007. The Greenhouse Gas Protocol: Measuring to Manage: A Guide to Designing GHG Accounting and Reporting Programs . Available at http://www.ghgprotocol.org/files/
measuring-to-manage.pdf
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About Confederation of Indian Industry (CII)
The Confederation of Indian Industry (CII) works to create and sustain an environment conducive to the growth of industry in India, partnering industry and government alike through advisory and consultative processes. CII is a non-government, not-for-profit, industry led and industry managed organisation, playing a proactive role in India’s development process. Founded over 113 years ago, it is India’s premier business association, with a direct membership of over 7500 organisations from the private as well as public sectors, including SMEs and MNCs, and an indirect membership of over 83,000 companies from around 380 national and regional sectoral associations. CII catalyses change by working closely with government on policy issues, enhancing efficiency, competitiveness and expanding business opportunities for industry through a range of specialised services and global linkages. It also provides a platform for sectoral consensus building and networking. Major emphasis is laid on projecting a positive image of business, assisting industry to identify and execute corporate citizenship programmes. Partnerships with over 120 NGOs across the country carry forward our initiatives in integrated and inclusive development, which include health, education, livelihood, diversity management, skill development and water, to name a few. Complementing this vision, CII’s theme “India@75: The Emerging Agenda”, reflects its aspirational role to facilitate the acceleration in India’s transformation into an economically vital, technologically innovative, socially and ethically vibrant global leader by year 2022. With 63 offices in India, 8 overseas in Australia, Austria, China, France, Japan, Singapore, UK, USA and institutional partnerships with
271 counterpart organisations in 100 countries, CII
serves as a reference point for Indian industry and the international business community.
Headquarters
Confederation of Indian Industry The Mantosh Sondhi Centre
23, Institutional Area, Lodi Road, New Delhi – 110 003 (India) Tel: 91 11 24629994-7 • Fax: 91 11 24626149 Email: [email protected] • Website: www.ciionline.org
Reach us via our unique Membership Helpline: 00-91-11-435 46244 / 00 99104 46244
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About CII - Sohrabji Godrej Green Business Centre The CII – Sohrabji Godrej Green Business Centre is a joint initiative of Government of Andhra Pradesh, Godrej & Boyce Mfg Co and Confederation of Ind ian Industry (CII) with the technical support of USAID – a unique model of public-private partnership. CII – Godrej GBC is the “Centre of Excellence” for Energy, Environment & Recycling, Green Buildings, Renewable Energy and Climate change activities in India. CII – Godrej GBC has been awarded the prestigious “Platinum Rating” of the US Green Building Council. This is the first building outside USA and the third building in the world to be awarded the platinum rating.
The CII – Sohrabji Godrej Green Business Centre is a joint initiative of Government of Andhra Pradesh, Godrej & Boyce Mfg Co and Confederation of Indian Industry (CII) with the technical support of USAID – a unique model of public-private partnership. CII – Godrej GBC is the “Centre of Excellence” for Energy, Environment & Recycling, Green Buildings, Renewable Energy and Climate change activities in India. CII – Godrej GBC has been awarded the prestigious “Platinum Rating” of the US Green Building Council. This is the first building outside USA and the third building in the world to be awarded the platinum rating.
Services of GBC The following services will be offered from GBC: a) Energy Audits Introduction Energy Management Cell (EMC) of CII was formed in the year 1989 with the objective of promoting energy efficiency in the Indian industry. The cell offers services from Chennai, Chandigarh and Ahmedabad. A thirty-member technical team is involved in carrying out various activities to catalyse and facilitate energy efficiency in all sectors of the Indian industry. Range of Services
Detailed energy audits in all sectors of industry such as Cement, Paper, Chemical, Petrochemical, Copper, Zinc, Engineering, Foundry etc.
In-house and center-wise intensive training programmes on Energy Conservation (Encon)
Organising Encon Missions - visit to select energy efficient units
Technical Seminars and workshops on Energy Conservation and Management
Specific energy consumption norms for different sectors of industry
Publications related to energy efficiency and energy conservation ideas
Energy Summits
International conference-cum-exhibition on latest trends in energy efficiency
Detailed feasibility studies on cogeneration
Detailed feasibility studies on latest energy saving & environment-friendly technologies
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Achievements in a Nut Nutshell shell
850 detailed energy audits completed till date, comprising of different industrial sectors
Annual recurring savings of Rs 1950 million reported by the audited companies
Prepared unique energy efficiency manuals/ publications, such as o
Variable Speed Drives for energy efficiency
o
Energy efficiency in pumping systems
o
Reference Manual on Encon at design stage
o
Case study booklets on Encon in Cement, Paper, Sugar, Textile, Fertiliser (Urea) and Glass & Ceramic Industries
selected as the winner of the National “Best Energy Auditor Award”, CII- Godrej GBC has been selected Award” , instituted by PCRA (Petroleum Conservation Research Association, Government of India) for the Five Successive Years Green Building Services A Green building is one that is environmentally responsible, profitable and a healthy place to live and work. Green buildings ensure that waste is minimised at every stage during the construction and operation of the building resulting in low costs. Green Building applies to both existing and new constructions, from a simple commercial space to large development projects. Benefitss of Green Building Benefit Green Buildings offer a range of economic and environmental benefits:
30% to 40% reduction in operation cost
Green corporate image
Health and safety of building occupants
Enhance occupant comfort
Improve productivity of occupants
Imbibe best operational practices from day one
Incorporate latest techniques and technologies
Typical features of Green Buil Bui lding
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Sustainable sites
Water efficiency
Energy and atmosphere
Materials and resources
Indoor environmental quality
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Services offered by CII-Godrej GBC Step 1: Feasibility Feasibili ty study study The objective of feasibility study is to explore, evaluate and recommend: Methodology of achieving Green Building Rating
Benefits that can accrue
Implementation of certification process
Assessment of additional investment and time required to achieve Green Building Ratings
Step 2: Implementation Implementation of o f rating process Overall facilitation
Integration with architects, builders, HVAC and other consultants
Detailed training for the building project team
Facilitation of documentation process
Monitoring of building performance
b) Gr Gree een n Aud udit itss What is Green? Green is the voluntary pursuit of any activity that encompasses the concern for energy efficiency, environmental management, water management, renewable energy, waste management and recycling. Approach to Green The approach to Green audit is based on the premise that any pollution is a form of economic waste i.e., “Pollution = Inefficiency” The conventional approach is to look at end-of-the-pipe solutions to red reduce uce inefficiency. A proactive approach would woul d be to focus on the root cause of inefficiency inefficiency,, which in turn will open up new opportunities for resource and cost savings. The means of achieving this is through a comprehensive Green Audit . Benefits The major benefits that a company can achieve by undergoing a green audit are Resource conservation, Energy optimisation, Water conservation, Optimisation of chemical usage and Effective waste management and recycling techniques. The company also benefits tremendously by a green corporate image. image. c) IS ISO O 1400 14001 1 and and OHSA OHSAS S 1800 18001 1 Environmental Management Systems (ISO 14000) help an organisation systematically manage its environmental impacts associated with its activities, products and services and increase its operating efficiency. Environmental Management Systems can result in both business and environmental benefits. An EMS may help in:
Improved environmental performance
Enhanced compliance to statutory regulations
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Prevention of pollution
Conservation of resources
Reducing/ Mitigating risks
Attracting new customers and markets
Increased efficiency/ reduced costs
Enhanced image with public, regulators and stakeholders
Improved employee-employer relationship
OHSAS 18001 Occupational Health and Safety Management System (OHSAS) is a systematic approach to enhance organisation’s safety and health activities thus ensuring not only compliance to statutory regulations but also minimising work place hazards. Reinforcing existing operations with a comprehensive approach to OHSAS system allows an organisation to eliminate or minimise risks and achieve safer and improved efficiency. d) Wat ater er Mana Managem gement ent Servi Services ces Water Management services focus on the following:
A detailed study of water & wastewater management practices in different industries and buildings, to find opportunities for water and cost savings by performance enhancement of existing and future facilities
Integration of water management with process needs by adopting “Reduce, Re-use and Recycle” concept to achieve “Zero Discharge”
Exploring the opportunities for reducing energy and chemical consumption in water & wastewater treatment systems
Technical assistance in implementing latest water and wastewater treatment technologies
Propagating water saving equipment and devices, and Training programme on water management
e) Re Renew newab ablle Energ Energy y Servic Services es Renewable Energy being one of the vital areas for achieving sustainable development, CII – Godrej GBC is promoting green power in India. The services offered in Renewable Energy are:
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Feasibility studies of industrial renewable energy projects in wind, solar thermal and biomass sectors
Preparation of Detailed Project Reports (DPL)
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f ) Technology Centre CII-Godrej GBC, a centre of excellence in energy, environment and climate change has been awarded the most prestigious “Platinum Rating” by US Green Building Council under their LEED (Leadership in Energy and Environmental design) programme. CII-Godrej GBC invites you to be part of this success and participate at the Technology Centre, which forms an integral part of the landmark building. The Technology Centre located in the prestigious platinum rated CII-Godrej GBC building, has been launched to facilitate information disseminat ion by serving as a venue to demonstrate “Green” products and technologies. g) New Ventures India New Ventures provides management training, business advisory services, professional mentoring and access to capital and markets to small environmental-friendly businesses. As a business accelerator, New Ventures equips small business leaders with the skills needed to succeed in today’s markets. The only programme of its kind, New Ventures aligns social and environmental development with local economic growth to create a successful model for emerging economies like India. New Ventures delivers: 1. Stronger sustainable businesses: We provide mentoring and technical assistance to entrepreneurs through an extensive network of business consultants, business school students, and technical experts. Mentors help companies prepare sound business and financial plans and target new markets. New Ventures also offers general business workshops to prospective New Ventures companies and start-ups. 2.
Linkages to investors and markets: We connect entrepreneurs with potential investors through Investor Forums and other targeted investor events.
Access to the New Ventures network: Companies in India will be able to network with sister programmes in Mexico, Brazil, China, and Indonesia and take advantage of the Global office in Washington DC. In each country, we engage and partner with local institutions to generate local capacity for sustainable enterprise support and to create long-lasting support networks that are tailored specifically to entrepreneurs in that country. Profile of New Ventures Companies New Ventures India companies are seeking investment in the range of Rs.50 lacs to Rs. 25 crores. These companies are environmental enterprises operating in India in fast-growth, environmental sectors such as:
Advance Technologies for Water Management
Agriculture/Organic Products
Clean Technologies
Ecotourism/Hospitality
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Energy Efficiency/ Renewable Energy
Green Building Materials
Rapidly Renewable Materials
Resources, Recycle & Reuse
Contact Details
Confederation of Indian Industry CII – Sohrabji Godrej Green Business Centre Tel: 91-40-23112971 – 73; Fax: 91-40-23112837 Email: [email protected]; [email protected] Website: www.greenbusinesscentre.com
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About Asia - Pacific Partnership (APP )
The Asia-Pacific Partnership (APP) on Clean Development and Climate is an innovative new effort to accelerate the development and deployment of clean energy technologies. APP partners Australia, Canada, China, India Japan, Republic of Korea, and the United States have agreed to work together and with private sector partners to meet goals for energy security, national air pollution reduction, and climate change in ways that promote sustainable economic growth and poverty reduction. The Partners will also cooperate on the development, diffusion, and deployment of longerterm transformational energy technologies that will promote economic growth while enabling significant reductions in greenhouse gas intensities. In addition, the Partners will share experiences in developing and implementing our national sustainable development and energy strategies, and explore opportunities to reduce the greenhouse gas intensities of our economies. The Partnership will be consistent with and contribute to Partners ‘efforts under the UNFCCC and will complement, but not replace, the Kyoto Protocol. CII-Godrej GBC has initiated a project “Voluntary programme to promote ecologically sustainable business growth for Indian Industry,” which, in support of the goals of the AsiaPacific Partnership on Clean Development and Climate, is partially supported by the U.S. Department of State.
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About World Resources Institute (WRI)
The World Resources Institute (WRI) is an environmental think tank that goes beyond research to find practical ways to protect the earth and improve people’s lives. Their mission is to move human society to live in ways that protect Earth’s environment and its capacity to provide for the needs and aspirations of current and future generations. Because people are inspired by ideas, empowered by knowledge, and moved to change by greater understanding, WRI provides—and helps other institutions provide—objective information and practical proposals for policy and institutional change that will foster environmentally sound, socially equitable development. The Greenhouse Gas Protocol (GHG Protocol) is a decade-long partnership between WRI and the World Business Council for Sustainable Development (WBCSD). The GHG Protocol Corporate Standard is the most widely used international accounting tool for government and business leaders to understand, quantify, and manage greenhouse gas emissions. The 2007 Corporate Climate Communications Report of the Fortune 500 companies by the Corporate Register reported 63 percent of companies use the GHG Protocol. The Protocol is working with businesses, governments, and environmental groups around the world to build a new generation of credible and effective programmes for tackling climate change. It serves as the foundation for nearly every GHG standard and programme in the world - from the International Organization of Standardization to The Climate Registry, as well as hundreds of GHG inventories prepared by individual companies. The GHG Protocol also offers developing countries an internationally accepted management tool to help their businesses to compete in the global marketplace and their governments to make informed decisions about climate change.
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About USEPA Climate Leaders Programme
Climate Leaders is an USEPA industry – government partnership that provides guidance and recognition to companies developing long-term climate change strategies. Through programme participation, companies create a credible record of their accomplishments, reduce their impact on global environment and identify themselves as corporate climate leaders. Some of the fast facts about EPA Climate Leaders programme are:
172 Climate Leaders Partner Companies
50% of Climate Leaders members are Fortune 500 companies
The combined US annual GHG emissions of Climate Leaders Partners represent more than 8% of total annual US GHG emissions
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1
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4
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6
1
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1
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4
1
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3
1
2
1
Corporate GHG 5
6
7
8
9
0
1
2
1
2
3
4
5
6
7
8
9
0
1
2
3
4
5
6
7
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1
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0
1
2
3
4
5
6
7
Inventory Program Guide 3
4
5
6
7
8
9
0
1
2
3
4
5
6
7
8
9
0
1
2
1
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Acknowledgement The Confederation of Indian Industry (CII) Sohrabji Godrej Green Business Centre (CII–Godrej GBC) acknowledges the rich contributions made by the partner organisations – the US Environmental Protection Agency (USEPA) and the World Resources Institute (WRI) toward designing and developing the Corporate GHG Inventory Programme and this Programme Guide.
CII-Godrej GBC has initiated two projects “Voluntary Programme to Promote Ecologically Sustainable Business Growth for Indian Industry” and “Foster GHG Emission Reduction Technologies in Indian Cement Industry” to support the goals of the Asia-Pacific Partnership on Clean Development and Climate. This publication is made possible through support from this project.
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Corporate GHG Inventory Program Guide
Acknowledgement The Confederation of Indian Industry (CII) Sohrabji Godrej Green Business Centre (CII–Godrej GBC) acknowledges the rich contributions made by the partner organisations – the US Environmental Protection Agency (USEPA) and the World Resources Institute (WRI) toward designing and developing the Corporate GHG Inventory Programme and this Programme Guide.
CII-Godrej GBC has initiated two projects “Voluntary Programme to Promote Ecologically Sustainable Business Growth for Indian Industry” and “Foster GHG Emission Reduction Technologies in Indian Cement Industry” to support the goals of the Asia-Pacific Partnership on Clean Development and Climate. This publication is made possible through support from this project.
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Corporate GHG Inventory Program Guide
Table of Contents Chapter 1
Introduct ion
Chap Ch apte terr 2
Prog Pr ogra ramm mme e Pr Prin inci cipl ples es an and d Re Requ quir irem emen entts
Chap Ch apte terr 3
Gree Gr eenh nhou ouse se Gas ases es fo forr Acc Accou ount ntin ing g and and Rep epor orti ting ng
Chap Ch apte terr 4
Geo eogr grap aphi hica call and and Or Orga gani nisa sati tion onal al Bo Boun und dar arie iess
Chapter 5
Operati tio onal Boundaries
Chapter 6
Calculati tin ng GH GHG Emiss ssiions
Cha hapt pte er 7
GHG GH G In Inte tens nsiity Reduc ucti tion on Go Goal als
Chapter 8
Reporting GH GHG Emissions
Glossary Append App endix ix 1
CII Cod Code e for Ecol Ecologi ogical cally ly Sust Sustain ainabl able Busine Business ss Growth Growth
Append App endix ix 2
Selected ected GHG GHG Progr Program ammes mes Bas Based ed on on or Info Inform rmed ed by by the the GHG Pro Protoc tocol ol
Append App endix ix 3
GHG Acc Accou ountin nting g Decis Decision ionss in in Sel Select ected ed GHG Pr Progr ogramm ammes es
Append App endix ix 4
Gas At Atmo mosph spheri ericc Life Lifetim time e and and Globa Globall Warm Warming ing Po Poten tentia tiall
Appendix Append ix 5
Overvie Ove rview w of Dire Direct ct and and Indirect Indirect GHG emiss emission ion Sour Sources ces for for Vario Various us Ind Indust ustrial rial Sect Sectors ors
Appe Ap pendi ndix x6
Emis Em issi sion on Fac Facto tors rs for for Indi Indian an Reg Regio iona nall Grid Gridss
Append App endix ix 7
Direct Dir ect Emiss Emission ionss from from Secto Sector-s r-spec pecifi ificc Source Sourcess (Cemen (Cementt, Iron Iron and Ste Steel el Production (CO2 Emissions), Pulp and Paper Production (CO2 Emissions), Refrigeration and A/C equipment Manufacturing (HFC and PFC Emissions), Aluminum Production (CO2 and PFC Emissions)
References About CII About CII- Godrej GBC About Asia-Pacific Partnership (APP) About World Resources Institute (WRI) About USEPA Climate Leaders Programme
Confederation of Indian Industry
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Abbreviations and Acronyms
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APP
Asia-Pacific Partnership on Clean Development and Climate
CCAR
California Climate Action Registry
CCX
Chicago Climate Exchange
CDM
Clean Development Mechanism
CER
Certified Emission Reduction
CH4
Methane
CII
Confederation of Indian Industry
CII-GBC
Confederation of Indian Industry-Sohrabji Godrej Green Business Centre
CHP
Combined Heat & Power
CO2
Carbon Dioxide
CO2-eq
Carbon Dioxide Equivalent
EU ETS
European Union Emissions Trading Scheme
GHG
Greenhouse Gas
GOI
Government of India
GWP
Global Warming Potential
HFCs
Hydrofluorocarbons
IPCC
Intergovernmental Panel on Climate Change
ISO
International Organization for Standardization
JI
Joint Implementation
kWh
kilo-Watt hour
MSG
Mission on Sustainable Growth
NRGF
Nelson’s Refinery Grading Factor
N2O
Nitrous Oxide
NGO
Non-Governmental Organisation
PFCs
Perfluorocarbons
SF6
Sulphur Hexafluoride
T&D
Transmission and Distribution
UNFCCC
United Nations Framework Convention on Climate Change
USEPA
US Environmental Protection Agency
WBCSD
World Business Council for Sustainable Development
WRI
World Resources Institute
Corporate GHG Inventory Program Guide
Chapter 1 - Introduction 1.1 Mission on Sustainable Growth A renewed focus on sustainable growth and development is imperative as India strives to maintain its high GDP growth rate in its pursuit of achieving an industrialised country status by the year 2020. Increased consumption of natural resources such as coal, oil, and water accompanies a high growth rate. A movement towards optimal and efficient use of resources is gaining importance as the country grapples with issues of sustainability, prosperity, and energy security. In this context, the Confederation of Indian Industry (CII) has outlined a new forward-looking initiative for the industry called the “Mission on Sustainable Growth” (MSG) to realise the objective of sustainable growth. The core purpose of the mission is “To promote and champion conservation of natural resources in Indian Industry without compromising on high and accelerated growth”. As a first step in the direction of fulfilling this mission, a CII Code for Ecologically Sustainable Business Growth has been developed, which aims to involve the top management of companies to seek voluntary commitments to reduce resource consumption and emissions intensity (emissions per unit of production). (See Appendix 1 for a copy of the CII Code for Ecologically Sustainable Business Growth). The CII Code focuses on ten natural commandments, which include energy intensity reduction, decrease in water consumption, greenhouse gas (GHG) emissions intensity reduction, reduction in waste generation, utilisation of renewable energy, increased rainwater harvesting, green procurement, life cycle analysis, clean technologies, product stewardship and reduction in consumption of other natural resources like paper and wood. This document provides guidance on a programme launched to specifically address the GHG emissions intensity-related commandment of the MSG. 1.2 Climate Change and Implications for India Globally, the impact and effects of GHG emissions are understood more clearly than they ever were. The fact that the 2007 Nobel Peace Prize was awarded to a person (Mr. Al Gore, Former Vice President of United States of America) who has made significant contribution to create awareness about climate change and an organisation (Intergovernmental Panel on Climate Change [IPCC]), which has worked unstinted towards understanding and mitigating the impact of GHG emissions stand testimony to the criticality of the issue of climate change. Global carbon dioxide (CO 2) concentration ranged from 180 to 300 parts per million (ppm) over past 400,000 years. It varied roughly between 270-290 ppm over the past 1000 years in the pre-industrial era (before 1860) and was practically stable. Since the middle of the 19th century, CO 2 concentration has been increasing rapidly and has exceeded 370 ppm at present. The impacts of growing GHG emissions such as higher average temperature, rising sea water level, submerging low-lying areas, and unpredictable changes in climatic conditions are being validated and noticed day by day. India has been identified as one of the climate change ‘hotspots’ joining a group of countries which are amongst the most vulnerable to hazards such as floods, cyclones and droughts over the next two to three decades.1 The recently released National Action Plan on Climate Change also discusses possible impacts of projected climate change on the country’s water resources, health, forests, agriculture and food production, coastal areas and its vulnerability to extreme events. 1
Care International, the UN Office for the Coordination of Humanitarian Affairs and Maplecroft. 2008. ‘Humanitarian Implications of Climate Change: Mapping emerging trends and risk hotspot s ’. August 2008. Available at http://www.careclimatechange.org/careclimatechange.org/ events__activities/new_report (last viewed on September 16, 2008).
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Increasing GHG levels in the atmosphere and associated impacts have instigated several governments, non-governmental organisations, businesses, and individuals to take proactive measures to curtail the rate of growth of emissions. Several governments have undertaken legislative steps to minimise the rate of increase of GHG levels in the atmosphere through measures such as introduction of emissions trading programmes, voluntary programmes, carbon or energy taxes, and regulations and standards on energy efficiency. Business organisations and industry as a whole has taken a lead role in several voluntary initiatives to reduce their emissions. Management of GHG emissions is increasingly being seen as an essential element of sustainable development in developing countries such as India as well. In June 2008, the Government of India released the National Action Plan on Climate Change, a policy document outlining a number of steps and measures that focus on achieving GHG mitigation and adaptation to climate change in ways that also promote the country’s development objectives. Under the Plan, eight missions have been set up to help the country mitigate and adapt to climate change including a mission on enhanced energy efficiency in industry. As part of this mission, the National Plan discusses GHG mitigation options in the industry (through sector-specific or cross-cutting technological options and through fuel switch options) and ways to promote energy efficiency in residential and commercial sector. According to the Plan, CO2 emissions from fuel and electricity use in the industrial sector can by reduced by 16% in 2031 compared to the business as usual scenario. Indian industry is well aware of the risks associated with climate change on their corporate functioning as well as the opportunities that tackling climate change offers. The industry is well-positioned to transform the challenge of climate change into an opportunity. In one of its discussion papers “Building a low-carbon Indian economy,” CII focuses on the adopted strategies and outlines technologies, practices and policies for the future that will help India leapfrog to a low-carbon economy (The report can be downloaded at http:// cii.in/menu_content.php?menu_id=1209). 1.3 Profit proposition of a GHG inventory With increasing importance being given to climate change and GHG issues, organisations are pursuing GHG management in a big way. They often cite some of the following business goals and co-benefits as reasons for compiling a GHG inventory and monitoring their carbon footprint: • Managing GHG risks and identifying cost-effective reduction opportunities Compiling a comprehensive GHG inventory improves a company’s understanding of its emissions profile and any potential GHG liability. A company’s GHG exposure is becoming a management issue in light of heightened scrutiny by the insurance industry and shareholders, as is also evident from the findings of a 2008 survey of Indian companies by The Financial Express and Emergent Ventures India. 2 What gets measured gets managed; accounting for emissions can help identify the most effective reduction opportunities and help realise cost savings through energy efficiency measures. This can drive increased materials and energy efficiency as well as the development of new products and services that reduce the GHG impacts of customers or suppliers. This in turn can reduce production costs and help differentiate the company in an increasingly environmentally conscious marketplace. Effective GHG management thus leads to sound business management.
2
“Emission reduction can raise shareholder value.” September 8, 2008. Available at http://www.financialexpress.com/news/Emission-reduction-can-raise-shareholder-value/358540/ (last viewed on September 11, 2008); “Realty sector finds green the color of money.” August 25, 2008. Available at http://www.financialexpress.com/news/Realty-sector-finds-green-the-colour-of-money/352931/ (last viewed on September 11, 2008).
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Corporate GHG Inventory Program Guide
• Employee satisfaction and public opinion In a competitive marketplace, a company can distinguish itself from other companies in its sector by measuring and managing its carbon footprint, and promoting itself as an environmentally responsible company. Participation in GHG programmes conveys that the company is environmentally conscious and responsible. While employees may feel more motivated to work for such a company, consumers are also more likely to patronise them, all other things being equal. Companies face a higher reputational risk if consumers perceive them as not doing enough to mitigate their environmental impact and reduce their ecological footprint. • Public reporting As concerns over climate change grow, NGOs, investors, and other stakeholders are increasingly calling for greater corporate disclosure of GHG information. They are interested in the actions companies are taking and in how the companies are positioned relative to their competitors. In response, a growing number of companies are preparing stakeholder reports containing information on GHG emissions. These may be stand-alone reports on GHG emissions or broader environmental or sustainability reports. Public reporting can also strengthen relationships with other stakeholders. For instance, as mentioned earlier, companies can improve their standing with customers and with the public by being recognised for participating in voluntary GHG programmes. If the company wants to go a step further and establish a public GHG target (or internal target), conducting a rigorous GHG inventory is a prerequisite for measuring and reporting progress over time. • Participating in GHG markets and recognition for early voluntary action Market-based approaches to reducing GHG emissions such as emissions trading are emerging in various parts of the world. Developing annual GHG inventory is the first step towards participation in future trading schemes. Knowledge of their emissions profile and performance over time can help companies determine, and perhaps strategically influence, the nature of their participation in emissions trading as a buyer or seller of credits. A company’s voluntary emissions reductions are more likely to be recognised and taken into account in future programmes and emissions trading schemes if they have been accounted for and registered. Being an early mover can reduce a company’s risks and increase potential gains from participation in GHG markets and programmes.
• Environmental co-benefits Energy efficiency measures aimed at reducing GHGs in the industrial sector bring co-benefits in the form of reduced emissions of air pollutants, solid waste and waste water. Some options also lead to an improvement in the quality of the product. Better environmental management enhances the public profile of the company and attracts more investors and customers.
1.4 The CII Corporate GHG Inventory Programme One of the ten natural commandments under the CII Code on Ecologically Sustainable Business Growth calls for organisations to better manage their GHG emissions. 3 In order to enable companies to adhere to this commandment, CII–Sohrabji Godrej Green Business Centre (CII–Godrej GBC) has partnered with the US 3
The fourth natural commandment says “Reduce specific greenhouse gas emissions and other process emissions by 2-6% every year over next ten years and explore opportunities through Clean Development Mechanism (CDM) and other Carbon Exchange Programs”. (The suggested range of reduction of 2-6% is indicative. Individual member companies are free to choose any target. This target can be based on their present levels of operating efficiency, technology adoption and management priorities.)
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Environmental Protection Agency (USEPA) and the World Resources Institute (WRI) to develop the Corporate GHG Inventory Programme. The programme was officially launched in May 2008 in Delhi, India, and a draft version of this guide was released at the launch. The GHG Inventory Programme, based on USEPA’s Climate Leaders programme and WRI/World Business Council on Sustainable Development’s (WRI/WBCSD) GHG Protocol Corporate Standard, seeks to promote international best practices for comprehensive corporate GHG accounting, reporting and management in the country through enlisting widespread participation from various industry sectors. CII-Godrej GBC will work with participating companies to develop inventories of GHG emissions from their operations, analyse and implement opportunities for reducing GHG emissions intensity 4, including energy efficiency and renewable energy, and establish GHG emissions intensity reduction goals. The programme allows companies to participate either at the facility level or at the corporate level. An organisation joining the programme can decide to measure, account for, and monitor its GHG emissions intensity: (i) at a single facility or some facilities and develop a facility-level emissions inventory, or (ii) at a corporate level (all facilities) and develop a corporate-wide emissions inventory Option (ii) is an inclusive approach and CII-Godrej GBC strongly recommends that organisations undertake a complete inventory of their GHG emissions from all facilities and operations. Companies participating successfully under either option will be duly recognised by CII with a higher degree of recognition reserved for those participating under the preferred and desirable Option (ii). Companies starting out under Option (i) with one or more facilities are highly encouraged to start measuring and accounting emissions from all facilities and adopt corporate-wide intensity goals, and become participants under Option (ii) within three years of joining the programme. This programme guide describes how companies should carry out their emissions inventory and report emissions. It discusses accounting rules and guidelines that will facilitate inventorisation and monitoring for companies participating under either Option of the Corporate GHG Inventory Programme. This programme has been supported by the Asia-Pacific Partnership (APP) on Clean Development and Climate. USEPA’s Climate Leaders programme design, and the accounting and reporting guidelines outlined in WRI/WBCSD’s GHG Protocol Corporate Standard have been appropriately modified and customised to formulate the CII-Godrej GBC programme keeping in consideration the specific needs of the signatories to the Mission on Sustainable Growth and the Indian context. Appendix 2 provides a brief description of some other GHG programmes worldwide based on or led by the GHG Protocol guidelines.
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GHG emissions intensity or specific emissions is defined as GHG emissions per unit of production (or turnover).
Corporate GHG Inventory Program Guide
Chapter 2 - Programme Principles and Requirements 2.1 GHG Accounting and Reporting principles WRI/WBCSD in the publication ‘The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard ’ (hereafter referred to as the GHG Protocol Corporate Standard), have remarkably articulated the GHG accounting and reporting principles. The GHG Protocol Corporate Standard is based on principles derived in part from generally accepted financial accounting and reporting guidelines. These principles reflect the outcome of a collaborative process involving stakeholders from a wide range of technical, environmental, and accounting disciplines. CII-Godrej GBC has explicitly adopted the five overarching accounting and reporting principles highlighted in the GHG Protocol Corporate Standard. These accounting and reporting principles are intended to help represent a faithful, true and fair account of an organisation’s GHG emissions, and improving its inventory quality. GHG emissions inventorisation, accounting and reporting practices are new to several organisations, and CII-Godrej GBC strongly recommends organisations participating in the programme to follow these principles while preparing their GHG inventories. GHG accounting and reporting should be based on the following principles: 2.1.1 Relevance Ensure the GHG inventory appropriately reflects the GHG emissions of the company and serves the decision-making needs of users – both internal and external to the company. 2.1.2 Completeness Account for and report on all GHG emission sources and activities within the chosen inventory boundary. Disclose and justify any specific exclusion. 2.1.3 Consistency Use consistent methodologies to allow for meaningful comparisons of emissions over time. Transparently document any changes to the data, inventory boundary, methods, or any other relevant factors in the time series. 2.1.4 Transparency Address all relevant issues in a factual and coherent manner, based on a clear audit trail. Disclose any relevant assumptions and make appropriate references to the accounting and calculation methodologies and data sources used. 2.1.5 Accuracy Ensure that the quantification of GHG emissions is systematically neither over nor under actual emissions, as far as can be judged, and that uncertainties are reduced as far as practicable. Achieve sufficient accuracy to enable users to make decisions with reasonable assurance as to the integrity of the reported information.
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For more information on GHG accounting and reporting principles, please refer: WRI/WBCSD 2004. The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition). Chapter 1. Available at http://www.ghgprotocol.org/files/ghg-protocol-revised.pdf
2.2 Accounting and reporting requirements under the Corporate GHG Inventory Programme Each GHG accounting and reporting programme has its set of rules and requirements, and the following table gives a brief overview of minimum requirements and optional information expected from a company participating in the Corporate GHG Inventory programme. Subsequent chapters discuss these requirements in detail. Table 2.1 : Accounting and reporting requirements and options Issue
Requirements
Optional
Greenhouse
Report at least CO2 emissions in the first year of
May report all six internationally
Gases
joining the programme. In subsequent years,
recognised GHGs (CO2, CH 4, N2O,
(Chapter 3)
report all six internationally recognised GHGs
HFCs, PFCs and SF 6) from the first
(CO2, CH4, N 2O, HFCs, PFCs, SF 6)
year itself
Reporting
Organisations participating under Option (i) 5:
Note: Participants are strongly
Entity
Report emissions from a single facility or some
encouraged to report under
(Chapter 4)
facilities
Option ( ii). Those reporting under 6
Organisations participating under Option (ii) :
Option (i) are strongly encouraged
Report emissions at a corporate level from all
to start reporting under Option (ii)
facilities and operations in India. Emissions
within three years of joining the
should be disaggregated by facility.
programme.
If reporting globally under Option (ii), include emissions from all global operations and facilities, including those in India. Organisational
Report on a control basis
May
report
using
either
Boundaries
operational or financial control
(Chapter 4)
approach Organisations are encouraged to additionally report using equity share approach
Operational
Reporting of Scope-1 emissions required
Reporting of Scope-3 emissions is
Boundaries
Reporting of Scope-2 emissions required
optional
(Chapter 5)
10
Base Year
Organisations participating under Option (i):
(Chapter 2)
Base year is the first year for which complete
5
Option (i) – Account and report GHG emissions at a facility level from one or more (however not all) facilities
6
Option (ii) – Account and report GHG emissions at a corporate level (all facilities and operations)
Corporate GHG Inventory Program Guide
Issue
Requirements
Optional
facility-level data is reported. Each facility will have its own base year to track emissions independently of other facilities. Recalculate base year emissions if changes in calculation methodology occur (emission factors locked-in for three years at a time). Organisations participating under Option (ii): Base year is the first year for which complete corporate-level data is reported from all facilities and operations. A single corporate-wide base year should be established to track emissions over time. Recalculate base year emissions if organisational and/or methodology changes occur7 (emission factors locked-in for three years at a time). A corporate-wide base year should be established when the organisation earlier reporting under Option (i) begins to report under Option (ii). Accounting
Organisations participating under Option (i):
Estimate emissions from all
Thresholds
GHG emission sources can be excluded from the
sources to ensure a complete
(Chapter 5)
inventory only if all excluded sources are
inventory. If need be, use
cumulatively responsible for less than or equal
simplified methodologies to
to 2% of total emissions from the facility. If the
estimate emissions from smaller
organisation is reporting for more than one
sources and clearly state the
facility, total emissions refer to total emissions of
methodology used.
each facility and 2% should be calculated for each individual facility. Organisations participating under Option (ii): GHG emission sources can be excluded from the inventory only if all excluded sources are cumulatively responsible for less than or equal to 2% of the participant’s total corporate-wide emissions.
The key reporting requirements of select GHG programmes like California Climate Action Registry, Canadian GHG Challenge Registry, Chicago Climate Exchange, USEPA’s Climate Leaders, European Union Emissions Trading Scheme, Greenhouse Challenge Plus (Australia), Greenhouse Gas Information System (South Korea), Mexico Greenhouse Gas Program, Philippine Greenhouse Gas Accounting & Reporting Program, Regional Greenhouse Gas Initiative (Northeast United States), and The Climate Registry (North America) are given in Appendix 3.
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WRI/WBCSD’s Corporate Standard suggests establishing a significance threshold in terms of percentage of base year emissions and if structural or methodology changes cause a percentage change beyond the thres hold, it triggers base year recalculation. CII’s Corporate GHG Inventory Programme has a significance threshold of 0%, i.e., every structural or methodology change will require base year recalculation.
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2.3 Base year, reporting year and submitting year Base year is defined as the first financial year for which an organisation reports complete emissions data from its operations. A complete emissions report is a report that meets all the requirements given in Table 2.1. For example, a company providing complete emissions data for the first time in year 2009 should set the financial year 2008-09 as its base year. For organisations reporting under Option (i), base year is the first year for which complete facility-level data is reported. Under this option, each facility should establish its own base year to track emissions independently of other facilities. For organisations reporting under Option (ii), base year is the first year for which complete corporate-level data is available from all facilities and operations. Organisations should establish a single corporate-wide base year to track emissions over time. An organisation which was earlier reporting under Option (i) and has now started reporting under Option (ii) should also establish a corporate-wide base year. The financial year for which emissions are accounted is called the Reporting Year. The calendar year in which the accounted emissions are presented and inventory is completed, either internally in the organisation or in the public domain, is referred to as the Submitting Year. For example, if an organisation submits emissions for 2008-09 in 2009, the Reporting Year will be financial year 2008-09 and the Submitting Year will be calendar year 2009. Organisations should complete their emissions inventory by June 30 of the Submitting Year. For instance, in the previous example, the organisation should submit its emissions inventory for reporting year 2008-09 by June 30, 2009. 2.3.1 Base year recalculation When tracking emissions over time in a company, participants should recalculate their base year emissions, and consequently emissions intensity, if organisational and structural changes (e.g., acquisitions and divestments) and/or changes in calculation methodology occur. Figure 2.1 and 2.2 illustrate how to recalculate base year emissions in the event of structural changes. Structural changes do not apply to organisations reporting under Option (i) and they should recalculate their base year emissions only when changes in calculation methodology occur. Organic growth or decline, which includes increases or decreases in production output, changes in product mix, and closures and openings, does not trigger base year emissions recalculation. Also, recalculation is not undertaken if the facility or business unit acquired or divested (structural change) did not exist in the base year. Under the Corporate GHG Inventory Programme, participants should establish an annual emissions intensity reduction goal. In order to track their progress towards achieving this goal, participants will compare their current year emissions intensity with the previous year. Therefore, whenever base year recalculation is undertaken, participant organisations should also recalculate emissions and emissions intensity for the preceding year. For organisations participating under Option ( i), recalculation of both base year and preceding year (to accurately track annual goal) should be done at facility level if calculation methodology has been changed or emission factor has been updated. However, emission factors will be locked-in for a period of three years at a time to avoid doing recalculations every year due to updated factors. Structural changes are not applicable in case of organisations reporting under Option (i).
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For organisations participating under Option (ii), recalculations should be done at the corporate level when structural and/or calculation methodology changes occur. Once again, emission factors will be locked-in for a period of three years at a time to avoid recalculations each year if factors are updated annually. If a particular activity, emissions from which were included in the base year and the preceding year, is outsourced and the resulting emissions are accounted as indirect emissions, base year/preceding year recalculation is not required. Alternatively, if a particular activity is insourced and emissions associated with it were included in the base year and the preceding year as indirect emissions, base year/preceding year recalculation is not required. If indirect emissions from the insourced activity were not accounted in the base year and the preceding year, and the activity was subsequently insourced, recalculation of emissions should be done. For more guidance on base year recalculation, see the GHG Protocol Corporate Standard (Chapter 5). Figure 2.1: Base year emissions recalculation for an acquisit ion
Source: WRI/WBCSD 2004. The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition). Chapter 5. Figure 2.2: Base year emissions recalculation for a divestment
Source: WRI/WBCSD 2004. The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition). Chapter 5.
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Chapter 3 - Greenhouse Gases for Accounting and Reporting 3.1 Gases to be considered for GHG account ing and reporting The Corporate GHG Inventory Programme requires participating organisations to account for CO2 emissions, at a minimum, in the first year of joining the programme. In subsequent years, organisations are required to account for and report all six internationally recognised GHGs, which include: 1. Carbon dioxide (CO 2) 2. Methane (CH4) 3. Nitrous oxide (N2O) 4. Hydrofluorocarbons (HFCs) 5. Perfluorocarbons (PFCs) and 6. Sulphur hexafluoride (SF6) HFCs and PFCs are collective names for groups of compounds considered responsible for climate change. The programme encourages organisations to report all six GHGs from the first year itself.
Source: WRI/WBCSD 2007. The Greenhouse Gas Protocol: Measuring to Manage: A Guide to Designing GHG Accounting and Reporting Programs. Chapter 3.
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3.2 Converting GHG emissions to units of CO2 equivalent For consistency, the GHG inventory should be based on units of CO 2 equivalent (CO2eq). While the emissions of individual GHGs should be individually accounted and reported, emissions of all non-CO2 gases should be converted to units of CO2eq using respective Global Warming Potentials (GWP). A complete list of internationally recognised GHGs with their GWPs is included in Appendix 4 and companies should use these values based on IPCC Second Assessment Report to calculate CO2eq. To convert to CO2eq, multiply tons of any particular GHG by its relevant GWP, as illustrated in the following example: A company’s GHG inventory contains 70,00,000 tons of CO2/year, 4.00,000 tons of CH 4/year and 700 tons of N2O/year. Total CO2eq
= tons CO2(GWP[CO2]) + tons CH 4(GWP[CH4]) + tons N2O(GWP[N2O]) = 70,00,000 (1) + 4,00,000 (21) + 700 (310) = 15,617,000 tons CO 2eq
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Chapter 4 - Geographical and Organisational Boundaries 4.1 Geographical boundary Once the organisation has decided to go ahead with inventorisation, it is imperative to set boundaries. WRI/ WBCSD have classified geographical boundaries into three levels: 1. Sub-national reporting – participants report emissions from all required sources located within a particular state, or other sub-national region. India currently does not have a sub-national or regional GHG programme. 2. National reporting – participants report emissions from all required sources located within the national boundary. The Corporate GHG Inventory Programme is a national GHG programme. 3. Global reporting – participants report emissions from all required sources throughout their global operations The Corporate GHG Inventory Programme requires that organisations reporting under Option (i) should report emissions from one or more facilities within India. Organisations reporting under Option (ii) should report emissions from all facilities within India. Organisations under Option (ii) can also choose to report globally, however if they do so, the programme requires that they report emissions from all global operations and facilities, including those in India.
4.2 Defining the Reporting Entity The programme allows organisations to participate either at the facility level or at the corporate level: (i) Under Option (i), an organisation accounts for and reports emissions from a single facility or some of its facilities. The organisation is required to develop an independent inventory for each facility if it is reporting emissions from more than one facility. (ii) Under Option (ii), an organisation accounts for and reports emissions from all facilities over which it has control. The organisation is required to develop a complete corporate-level inventory with facility level disaggregation. To utilise the benefits of GHG emission reporting and accounting to the maximum and to define emissions to the fullest, the programme strongly recommends reporting at the highest organisational level possible, i.e, under Option (ii). Moreover, companies starting out under Option (i) with a single or a few facilities are highly encouraged to start measuring and accounting emissions from all facilities and become participants under Option (ii) within three years of joining the programme. The advantages of corporate–level reporting include the following: ·
Provides a more comprehensive view of company’s overall emission performance,
·
Facilitates corporate-level risk management and GHG strategy development,
·
Achieves economies of scale when doing an inventory across the entire company as opposed to select facilities, and
·
Prevents ‘cherry-picking’ wherein, in a voluntary setting, a company reports emissions from facilities with better GHG performance while excluding facilities with worse GHG performance.
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Corporate GHG Inventory Program Guide
4.3 Government agency reporting The programme strongly recommends government entities (district, state, central, etc.) to report at the highest level possible. Individual government agencies and departments (municipalities, corporations, other government organisations, etc.) may report as their own entity, but as soon as the entire municipality, town, city, state or government unit of which they are a part begins to report, all related agencies or departments within that entity’s jurisdiction must be included in the entity’s emissions report. 4.4 Organisational boundary Organisational boundaries do not apply to organisations reporting emissions from one or more facilities under Option (i). Organisational boundaries only apply to those companies reporting emissions at a corporate level under Option (ii). For corporate reporting, the GHG Protocol Corporate Standard identifies and explains two distinct approaches that can be used to consolidate GHG emissions: the equity share and control approaches. The Corporate GHG Inventory programme requires that companies report on a control basis using either one of the two control approaches to account for their emissions. Companies are encouraged to additionally report using the equity share approach. If the reporting company wholly owns all its operations, its organisational boundary will be the same whichever approach is used. For companies with joint operations, the organisat ional boundary and resulting emissions may differ depending on the approach used. In both wholly owned and joint operations, the choice of approach may change how emissions are categorised when operational boundaries are set (see Chapter 5). Both equity share and control approaches are discussed in greater detail here. Figure 4.1 : Organisational and operational boundaries of a company
Source: WRI/WBCSD 2004. The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition). Chapter 4. 4.4.1 Equity share approach Under the equity share approach, a company accounts for GHG emissions from operations according to its share of equity in the operation. The equity share reflects economic interest, which is the extent of rights a company has to the risks and rewards flowing from an operation. Typically, the share of economic risks and rewards in an operation is aligned with the company’s percentage ownership of that operation, and equity share will normally be the same as the ownership percentage. Where this is not the case, the economic substance of the relationship the company has with the operation always overrides the legal ownership form to ensure that equity share reflects the percentage of economic interest. The principle of economic substance taking precedent over legal
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form is consistent with international financial reporting standards. The staff preparing the inventory may therefore need to consult with the company’s accounting or legal staff to ensure that the appropriate equity share percentage is applied for each joint operation. 4.4.2 Control approach Under the control approach, a company accounts for 100 percent of GHG emissions from operations over which it has control. It does not account for GHG emissions from operations in which it owns an interest but has no control. Control can be defined in either financial or operational terms. When using the control approach to consolidate GHG emissions, companies should choose between either the operational control or financial control criteria. In most cases, whether an operation is controlled by the company or not does not vary based on whether the financial control or operational control criterion is used. A notable exception is the oil and gas industry, which often has complex ownership/ operatorship structures. Thus, the choice of control criterion in the oil and gas industry can have substantial consequences for a company’s GHG inventory. While using the control approach, companies should take into account how GHG emissions accounting and reporting can be aligned with financial and environmental reporting, and which criterion best reflects the company’s actual power of control. 4.4.2.1 Financial control A company has financial control over the operation if the company has the ability to direct the financial and operating policies of the operation with a view to gaining economic benefits from its activities. For example, financial control usually exists if the company has the right to the majority of benefits of the operation, however these rights are conveyed. Similarly, a company is considered to financially control an operation if it retains the majority risks and rewards of the ownership of the operation’s assets. Under this criterion, the economic substance of the relationship between the company and the operation takes precedence over the legal ownership status, so that the company may have financial control over the operation even if it has less than a 50 percent interest in that operation. In assessing the economic substance of the relationship, the impact of potential voting rights, including both those held by the company and those held by other parties, is also taken into account. This criterion is consistent with international financial accounting standards; therefore, a company has financial control over an operation for GHG accounting purposes if the operation is considered as a group company or subsidiary for the purpose of financial consolidation, i.e., if the operation is fully consol idated in financial accounts. If this criterion is chosen to determine control, emissions from joint ventures where partners have joint financial control are accounted for based on the equity share approach. 4.4.2.2 Operational control A company has operational control over an operation if the company or one of its subsidiaries has the full authority to introduce and implement its operating pol icies at the operation. This criterion is consistent with the current accounting and reporting practices of many companies that report on emissions from facilities, which they operate (i.e., for which they hold the operating license). It is expected that except in very rare circumstances, if the company or one of its subsidiaries is the operator of a facility, it has the full authority to introduce and implement its operating policies and thus has operational control. Under the operational control approach, a company accounts for 100% of emissions from operations over which it or one of its subsidiaries has operational control. It should be emphasised that having operational control does not mean that a company necessarily has authority to make all decisions concerning an operation. For example, big capital investments will likely require the
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Corporate GHG Inventory Program Guide
approval of all the partners that have joint financial control. Operational control does mean that a company has the authority to introduce and implement its operating policies. For more details on consolidation approaches for setting organisational boundaries, please refe r: WRI/WBCSD 2004. The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition). Chapter 3. 4.5 Leased facilities/vehicles and landlord/tenant arrangements Organisations should account for and report emissions from leased facilities and vehicles according to the type of lease associated with the facility or source and the organisational boundary approach selected. The following guidance applies to organisations that rent office space (i.e., tenants), vehicles, and other facilities or sources (e.g., industrial equipment). (Source: The Climate Registry 2008. General Reporting Protocol . Version 1.1, May 2008. Chapter 4.) There are two types of leases: 4.5.1 Finance or capital lease This type of lease enables the lessee to operate an asset and also gives the lessee all the risks and rewards of owning the asset. Assets leased under a capital or finance lease are considered wholly owned assets in financial accounting and are recorded as such on the balance sheet. If the organisation has an asset under a finance or capital lease, the accounting and reporting guidelines consider this asset to be wholly owned by the organisation. 4.5.2 Operating lease This type of lease enables the lessee to operate an asset, like a building or vehicle, but does not give the lessee any of the risks or rewards of owning the asset. Any lease that is not a finance or capital lease is an operating lease. In most cases, operating leases cover rented office space and leased vehicles, whereas finance or capital leases are for large industrial equipment. If the organisation has an asset under an operational lease, the accounting and reporting guidelines require this asset be reported only if the organisation is using the operational control approach.
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Chapter 5 - Operational Boundaries 5.1 Direct and indirect emissions It is essential for companies adopting effective and innovative GHG emission management practices to set operational boundaries that are comprehensive with respect to direct and indirect emissions. This will help organisations better manage the complete gamut of GHG risks and opportunities. Direct GHG emissions are emissions from sources that are owned or controlled by the company. Indirect GHG emissions are emissions that are a consequence of the activities of the company, but occur at sources owned or controlled by another company. The classification of direct and indirect emissions is dependent on the consolidation approach (equity share or control) for setting the organisational boundary (see Chapter 4). 5.2 Introducing the concept of “Scope” To clearly demarcate direct and indirect emission sources and to improve transparency, CII has adopted the GHG Protocol Corporate Standard approach of three “scopes” (scope 1, scope 2, and scope 3) defined for GHG accounting and reporting purposes. Scopes 1 and 2 are defined in a way that ensures that two or more companies will not account for same emissions in the same scope. This makes the scopes amenable for use in GHG programmes where double counting matters. Companies should separately account for and report on scopes 1 and 2 at a minimum. 5.2.1 Scope 1: Direct GHG emissions Direct GHG emissions occur from sources that are owned or controlled by a company, for example, emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc.; emissions from chemical production in owned or controlled process equipment. Direct CO 2 emissions from the combustion of biomass should be included in scope 1 and also reported separately. GHG emissions not covered by the Kyoto Protocol, e.g. CFCs, HCFCs, should not be included in scope 1 but may be reported separately. 5.2.2 Scope 2: Electricity indirect GHG emissions Scope 2 accounts for GHG emissions from the generation of purchased electricity consumed by a company. Purchased electricity is defined as electricity that is purchased or otherwise brought into the organisational boundary of the company. Scope 2 emissions physically occur at the facility where electricity is generated. 5.2.3 Scope 3: Other indirect GHG emissions Scope 3 is an optional reporting category that allows for the treatment of all other indirect emissions. Scope 3 emissions are a consequence of the activities of a company, but occur from sources not owned or controlled by the company. Some examples of scope 3 activities are extraction and production of purchased materials; transportation of purchased fuels; and use of sold products and services. 5.3 Defining operational boundary An operational boundary defines the scope of direct and indirect emissions for operations that fall within a company’s established organisational boundary. For organisations reporting under Option (i), each facility will identify its direct and indirect emissions and categorise them under different scopes. For organisations reporting
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Corporate GHG Inventory Program Guide
under Option (ii), the operational boundary (scope 1, scope 2, and scope 3) is decided at the corporate level after setting the organisational boundary. The selected operational boundary is then uniformly applied to identify and categorise direct and indirect emissions at each operational level. Figure 5.1: Overview of scopes and emissions across a value chain
Source: WRI/WBCSD 2004. The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition). Chapter 4. 5.4 Accounting and reporting on scopes The programme requires organisations to report Scope 1 and Scope 2 emissions. Reporting of Scope 3 emissions is optional but the programme highly encourages companies to report relevant and significant Scope 3 sources keeping in consideration the five principles governing inventory development. While reporting emissions from each source, the calculation methodology should be clearly laid out in the inventory report. GHG emission sources can be excluded from the inventory only if all excluded sources are cumulatively responsible for less than or equal to 2% of total emissions. However, the programme strongly encourages companies to estimate emissions from all sources to ensure a complete inventory. If need be, simplified methodologies can be used to estimate emissions from smaller sources with the inventory report clearly stating the methodology used. If the organisation is reporting for more than one facility under Option (i), total emissions refer to total emissions of each facility and 2% should be calculated for each individual facility. For organisations reporting under Option (ii), GHG emission sources can be excluded from the inventory only if all excluded sources are cumulatively responsible for less than or equal to 2% of the participant’s total corporate-wide emissions. 5.4.1 Scope 1: Direct GHG emissions Companies report GHG emissions from sources they own or control as scope 1. Direct GHG emissions are principally the result of the following types of activities undertaken by the company: ·
Generation of electricity, heat, or steam - These emissions result from combustion of fuels in stationary sources, e.g., boilers, furnaces, turbines;
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·
Physical or chemical processing - Most of these emissions result from manufacture or processing of chemicals and materials, e.g., cement, aluminum, adipic acid, ammonia manufacture, and waste processing;
·
Transportation of materials, products, waste, and employees - These emissions result from the combustion of fuels in company owned/controlled mobile combustion sources (e.g., trucks, trains, ships, airplanes, buses, and cars); and
·
Fugitive emissions - These emissions result from intentional or unintentional releases, e.g., equipment leaks from joints, seals, packing, and gaskets; methane emissions from coal mines and venting; HFC emissions during the use of refrigeration and air cond itioning equipment; and methane leakages from gas transport.
Sale of own-generated electricity Emissions associated with the sale of own-generated electricity to another company are not deducted/netted from scope 1. This treatment of sold electricity is consistent with how other sold GHG-intensive products are accounted, e.g., emissions from the production of sold clinker by a cement company or the production of scrap steel by an iron and steel company are not subtracted from their scope 1 emissions. Emissions associated with the sale/transfer of self- generated electricity may be reported in optional information. 5.4.2 Scope 2: Electricity indirect GHG emissions Companies report the emissions from the generation of purchased electricity that is consumed in its owned or controlled equipment or operations as scope 2. Scope 2 emissions are a special category of indirect emissions. For many companies, purchased electricity represents one of the largest sources of GHG emissions and the most significant opportunity to reduce these emissions. Accounting for scope 2 emissions allows companies to assess the risks and opportunities associated with changing electricity and GHG emissions costs. Another important reason for companies to track these emissions is that the information may be needed for some GHG programmes. Companies can reduce their use of electricity by investing in energy efficient technologies and energy conservation. Additionally, emerging green power markets provide opportunities for some companies to switch to less GHGintensive sources of electricity. Companies can also install an efficient on site co-generation plant, particularly if it replaces the purchase of more GHG-intensive electricity from the grid or electricity supplier. Reporting of scope 2 emissions allows transparent accounting of GHG emissions and reductions associated with such opportunities. Indirect emissions associated with transmission & distribution State Electricity Boards (SEBs) often purchase electricity from independent power generators or the grid and resell it to end-consumers through a transmission and distribution (T&D) system. A portion of the electricity purchased by the SEBs is consumed (T&D loss) during its transmission and distribution to end-consumers. Consistent with the scope 2 definition, emissions from the generation of purchased electricity that is consumed during transmission and distribution are reported in scope 2 by the company (SEBs) that owns or controls the T&D operation. End consumers of the purchased electricity do not report indirect emissions associated with T&D losses in scope 2 because they do not own or control the T&D operation where the electricity is consumed (T&D loss). This approach ensures that there is no double counting within scope 2 since only the T&D utility company will account for indirect emissions associated with T&D losses in scope 2. Another advantage of this approach is that it adds simplicity to the reporting of scope 2 emissions by allowing the use of commonly available emission factors that in most cases do not include T&D losses. End consumers may, however, report their indirect emissions associated with T&D losses in scope 3 under the category “generation of electricity consumed in a T&D system.”
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Other electricity-related indirect emissions Indirect emissions from activities upstream of a company’s electricity provider (e.g., exploration, drilling, flaring, transportation) are reported under scope 3. Emissions from the generation of electricity that has been purchased for resale to end-users are reported in scope 3 under the category “generation of electricity that is purchased and then resold to end users.” Emissions from the generation of purchased electricity for resale to non end-users (e.g., electricity traders) may be reported separately from scope 3 in “optional information.” The following two examples illustrate how GHG emissions are accounted for from the generation, sale, and purchase of electricity. Example 1: Company A is an independent power generator that owns a power generation plant. The power plant produces 100 MWh of electricity and releases 20 tons of emissions per year. Company B is an electricity trader and has a supply contract with company A to purchase all its electricity. Company B resells the purchased electricity (100 MWh) to company C, a utility company that owns/ controls the T&D system. Company C consumes 5 MWh of electricity in its T&D system and sells the remaining 95 MWh to company D. Company D is an end user who consumes the purchased electricity (95 MWh) in its own operations. Company A reports its direct emissions from power generation under scope 1. Company B reports emissions from the purchased electricity sold to a nonend-user as optional information separately from scope 3. Company C reports the indirect emissions from the generation of the part of the purchased electricity that is sold to the end-user under scope 3 and the part of the purchased electricity that it consumes in its T&D system under scope 2. End user D reports the indirect emissions associated with its own consumption of purchased electricity under scope 2 and can optionally report emissions associated with upstream T&D losses in scope 3. Figure 5.2: GHG accounting from the sale and purchase of electricity
Source: WRI/WBCSD 2004. The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition). Chapter 4. Example 2: Company D installs a co-generation unit and sells surplus electricity to a neighbouring company E for its consumption. Company D reports all direct emissions from the co-generation unit under scope 1. Indirect emissions from the generation of electricity for export to E are reported by D under optional information separately from scope 3. Company E reports indirect emissions associated with the consumption of electricity purchased from the company D’s co-generation unit under scope 2.
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5.4.3 Scope 3: Other indirect GHG emissions Scope 3 is optional, but it provides an opportunity to be innovative in GHG management. Companies may want to focus on accounting for and reporting those activities that are relevant to their business and goals, and for which they have reliable information. Since companies have discretion over which categories they choose to report, scope 3 may not lend itself well to comparisons across companies. An indicative list of scope 3 categories is provided here. Some of these activities will be included under scope 1 if the pertinent emission sources are owned or controlled by the company (e.g., if the transportation of products is done by vehicles owned or controlled by the company): • Extraction and production of purchased materials and fuels • Transport-related activities in vehicles not owned/controlled by reporting company: o Transportation of purchased materials or goods o Transportation of purchased fuels o Employee business travel o Employees commuting to and from work o Transportation of sold products o Transportation of waste • Electricity-related activities not included in scope 2 o Extraction, production, and transportation of fuels consumed in the generation of electricity (either purchased or own-generated by the reporting company) o Purchase of electricity that is sold to an end user (reported by generating company) o Generation of electricity that is consumed in a T&D system (reported by end-user) • Leased assets, franchises, and outsourced activities— emissions from such contractual arrangements are only classified as scope 3 if the selected consolidation approach does not apply to them • Use of sold products and services • Waste disposal • Disposal of waste generated in operations o Disposal of waste generated in the production of purchased materials and fuels o Disposal of sold products at the end of their life Accounting for scope 3 emissions Accounting for scope 3 emissions need not involve a full-blown GHG life cycle analysis of all products and operations. Usually it is valuable to focus on one or two major GHG-generating activities. Although it is difficult to provide generic guidance on which scope 3 emissions to include in an inventory, some general steps can be articulated: 1. Describe the value chain: Because the assessment of scope 3 emissions does not require a full life cycle assessment, it is important, for the sake of transparency, to provide a general description of the value chain
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and the associated GHG sources. For this step, the scope 3 categories listed earlier can be used as a checklist. Companies usually face choices on how many levels up- and downstream to include in scope 3. Consideration of the company’s inventory or business goals and relevance of the various scope 3 categories will guide these choices. 2.
Determine which scope 3 categories are relevant: Only some types of upstream or downstream emissions categories might be relevant to the company. They may be relevant for several reasons: • They are large (or believed to be large) relative to the company’s scope 1 and scope 2 emissions • They contribute to the company’s GHG risk exposure • They are deemed critical by key stakeholders (e.g., feedback from customers, suppliers, investors, or civil society) • There are potential emissions reductions that could be undertaken or influenced by the company.
The following examples may help decide which scope 3 categories are relevant to the company. • If fossil fuel or electricity is required to use the company’s products, product use phase emissions may be a relevant category to report. This may be especially important if the company can influence product design attributes (e.g., energy efficiency) or customer behavior in ways that reduce GHG emissions during the use of the products. • Outsourced activities are often candidates for scope 3 emissions assessments. It may be particularly important to include these when an outsourced activity previously contributed significantly to a company’s scope 1 or scope 2 emissions. • If GHG-intensive materials represent a significant fraction of the weight or composition of a product used or manufactured (e.g., cement, aluminum), companies may want to examine whether there are opportunities to reduce their consumption of the product or to substitute less GHG-intensive materials. • Large manufacturing companies may have significant emissions related to transporting purchased materials to centralised production facilities. • Commodity and consumer product companies may want to account for GHGs from transporting raw materials, products, and waste. • Service sector companies may want to report on emissions from employee business travel; this emissions source is not as likely to be significant for other kinds of companies (e.g., manufacturing companies). 3.
Identify partners along the value chain: Identify any partners that contribute potentially significant amounts of GHGs along the value chain (e.g., customers/users, product designers/manufacturers, energy providers, etc.). This is important when trying to identify sources, obtain relevant data, and calculate emissions.
4.
Quantify scope 3 emissions: While data availability and reliability may influence which scope 3 activities are included in the inventory, it is accepted that data accuracy may be lower. It may be more important to understand the relative magnitude of and possible changes to scope 3 activities. Emission estimates are acceptable as long as there is transparency with regard to the estimation approach, and the data used for the
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analysis are adequate to support the objectives of the inventory. Companies should consult CII before deciding which accounting methodologies to use for scope 3 sources. Wherever feasible, organisations are strongly encouraged to use primary data rather than assumptions to quantify scope 3 emissions. Quantification of scope 3 sources should be governed by the five principles of relevance, completeness, consistency, transparency, accuracy as outlined in Chapter 2. Verification of scope 3 emissions will often be difficult and may only be considered if data is of reliable quality. The GHG Protocol Initiative is developing further guidance on product life cycle accounting and Scope 3 accounting and reporting pertaining to the full value chain of an organisation. The Corporate GHG Inventory Programme will follow the development of this new guidance and will consider adopting it when it becomes available.
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Corporate GHG Inventory Program Guide
Chapter 6 - Calculating GHG Emissions 6.1 Identifying and calculating GHG emissions Once the inventory boundary has been established, companies can calculate their GHG emissions using the following steps: 1. Identify GHG emissions sources 2. Select a GHG emissions calculation approach 3. Collect activity data and choose emission factors (see Appendix 7) 4. Apply calculation tools 5. Roll-up GHG emissions data to corporate level To create an accurate account of their emissions, companies have found it useful to divide overall emissions into specific categories. This allows a company to use specifically developed methodologies to accurately calculate the emissions from each sector and source category. 6.2 Identify GHG emissions sources The first step in identifying and calculating a company’s emissions, as outlined in F igure 6.1, is to categorise GHG sources within that company’s boundaries. GHG emissions typically occur from the following source categories: • Stationary combustion: combustion of fuels in stationary equipment such as boilers, furnaces, burners, turbines, heaters, incinerators, engines, flares, etc. • Mobile combustion: combustion of fuels in transportation devices such as automobiles, trucks, buses, trains, airplanes, boats, ships, barges, vessels, etc. • Process emissions: emissions from physical or chemical processes such as CO2 from the calcination step in cement manufacturing, CO 2 from catalytic cracking in petrochemical processing, PFC emissions from aluminum smelting, etc. • Fugitive emissions: intentional and unintentional releases such as equipment leaks from joints, seals, packing, gaskets, as well as fugitive emissions from coal piles, wastewater treatment, pits, cooling towers, gas processing facilities, etc. Every business has processes, products, or services that generate direct and/or indirect emissions from one or more of the above broad source categories. Appendix 5 provides an overview of direct and indirect GHG emission sources organised by scopes and industry sectors that may be used as an initial guide to identify major GHG emission sources. Figure 6.1: Steps in identifying and calculating GHG emissions Source: WRI/WBCSD 2004. The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition). Chapter 6.
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Identify Scope 1 emissions A company should undertake an exercise to identify its direct emission sources in each of the four source categories listed above. Process emissions are usually only relevant to certain industry sectors like oil and gas, aluminum, cement, etc. Manufacturing companies that generate process emissions and own or control a power production facility will likely have direct emissions from all the main source categories. Office-based organisations may not have any direct GHG emissions except in cases where they own or operate a vehicle, combustion device, or refrigeration and air-conditioning equipment. Often companies are surprised to realise that significant emissions come from sources that are not initially obvious. Identify Scope 2 emissions The next step is to identify indirect emission sources from the consumption of purchased electricity, heat, or steam. Almost all businesses generate indirect emissions due to the purchase of electricity for use in their processes or services. Identify Scope 3 emissions This optional step involves identification of other indirect emissions from a company’s upstream and downstream activities as well as emissions associated with outsourced/contract manufacturing, leases, or franchises not included in scope 1 or scope 2. The inclusion of scope 3 emissions allows businesses to expand their inventory boundary along their value chain and to identify all relevant GHG emissions. This provides a broad overview of various business linkages and possible opportunities for significant GHG emission reductions that may exist upstream or downstream of a company’s immediate operations. 6.3 Select a calculation approach, collect activity data and choose emission factors Calculation approaches and techniques can be arranged in a hierarchy suggesting an order of preference. The programme strongly encourages companies to follow the following order of preference when calculating emissions: (i) Direct measurement (i.e., Continuous Emissions Measurement System) (ii) Site-specific direct fuel measurements with sector-/ technology-/ region-/ country-specific emission factors (iii) Calculations based on global or general emission factors When direct measurement of GHG emissions by monitoring concentration and flow rate is not available, emissions may be calculated through the application of documented emission factors. These factors are calculated ratios relating GHG emissions to a proxy measure of activity at an emissions source. For most small to medium-sized companies and for many larger companies, scope 1 GHG emissions will be calculated based on the consumed quantities of commercial fuels (such as natural gas and heating oil) using published emission factors. Scope 2 GHG emissions will primarily be calculated from metered electricity consumption and published local grid emission factors. Scope 3 GHG emissions will primarily be calculated from activity data such as fuel use or passenger miles and published or third-party emission factors. In most cases, if source- or facility-specific emission factors are available, they are preferable to more generic or general emission factors. Industrial companies may be faced with a wider range of approaches and methodologies, and can seek guidance from the sector-specific guidelines on the GHG Protocol Initiative website or from their industry associations (e.g., International Aluminum Institute, International Iron and Steel Institute, American Petroleum Institute, WBCSD Sustainable Cement Initiative, International Petroleum Industry Environmental Conservation Association) or from CII.
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Corporate GHG Inventory Program Guide
Note: Appendix 6 gives the weighted average emission factor, simple operating margin (OM), build margin (BM), and combined margin (CM) of all Indian regional grids. 6.4 Apply calculation tools This section provides an overview of the GHG calculation tools and guidance available on the GHG Protocol Initiative website (http://www.ghgprotocol.org/calculation-tools/all-tools). Use of these tools is encouraged as they have been peer-reviewed by experts and industry leaders, are regularly updated, and are believed to be the best available. The tools, however, are optional. Subject to review by CII for accuracy and consistency with programme guidelines, companies may substitute their own GHG calculation methods, when they are more accurate than or are at least consistent with the GHG Protocol Corporate Standard. There are two main categories of calculation tools: • Cross-sector calculation tools that can be applied to different sectors. These include stationary combustion, mobile combustion, HFC use in refrigeration and air conditioning, and measurement and estimation uncertainty. • Sector-specific calculation tools that are designed to calculate emissions in specific sectors such as aluminum, iron and steel, cement, oil and gas, pulp and paper, and office-based organisations. Most companies will need to use more than one calculation tool to cover all their GHG emission sources. For example, to calculate GHG emissions from an aluminum production facility, the company would use the calculation tools for aluminum production, stationary combustion (for any consumption of purchased electricity, on-site generation of energy, etc.), mobile combustion (for transportation of materials and products by train, vehicles employed on-site, employee business travel, etc.), and HFC use (for refrigeration, etc.). 6.4.1 Structure of GHG Protocol calculation tools Each of the cross-sector and sector-specific calculation tools on the GHG Protocol Initiative website (http:// www.ghgprotocol.org/calculation-tools/all-tools) share a common format and include step-by-step guidance on measuring and calculating emissions data. Each tool consists of a guidance section and automated worksheets with explanations on how to use them. The guidance for each calculation tool includes the following sections: •
Overview: provides an overview of the purpose and content of the tool, the calculation method used in the tool, and a process description
•
Choosing activity data and emission factors: provides sector-specific good practice guidance and references for default emission factors
•
Calculation methods: describes different calculation methods depending on the availability of site-specific activity data and emission factors
•
Quality control: provides good practice guidance
•
Internal reporting and documentation: provides guidance on internal documentation to support emissions calculations.
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6.5 Roll up data to corporate level In case of organisations reporting under Option (ii), the final step is to roll up GHG emissions data from multiple facilities to a corporate level to derive total corporate emissions. For organisations reporting under Option (i), rolling up to corporate level is not applicable. 6.6 Examples to illustrate emissions calculation The following examples illustrate the various steps explained in this chapter to calculate GHG emissions for a hypothetical engineering industry and a hypothetical software firm. 1: Calculating emissions from an engineering industry Engineering Technologies Ltd (ETL) is an engineering industry located in an industrial estate in northern India. ETL operates 3 shifts every day and runs for an average of 300 days per year. The industry is close to a metropolitan city and employs 380 people. While the raw material is delivered by contractors/suppliers, the manufactured/ assembled product is delivered by company’s own vehicles to retail shops/dealers. ETL gets its power from the grid but for emergency situations, a diesel generator (DG) is used as stand by. ETL’s grid power consumption is 27,360 Megawatt hour (MWh) per year. The annual power consumption from the DG set is 150 MWh. The company operates a 5 tons per hour (TPH) boiler; fuel oil (FO) fired thermic fluid heater; 200 TR (tons of refrigeration) air-conditioning load and a canteen for its employees. The waste lube oil generated from the process is burnt in the boiler as a fuel substitute. ETL owns and operates 6 container lorries to transport its product. It also owns and operates a bus and 20 cars for its employees. Employees use their own vehicles as well as public transport to commute to work. Some employees from the marketing department also undertake business travel within the state/country using railways and airplanes as mode of transport. Identify GHG emission sources As discussed earlier in the chapter, the first step in the GHG inventorisation process is to identify the various possible GHG emission sources. This requires a thorough understanding of the various activities that are happening, both inside and outside the industry, which can result in GHG emissions. It is better to have an exhaustive, complete list of all the activities and sources to obtain a complete emissions inventory (Table 6.1). Some of the activities may look insignificant or small during the initial process of calculation, however, they may cause a large quantity of emissions. For example, the make up HFC gas in A/C system is few kilograms (kgs) per year, but when converted to equivalent CO 2 emissions, the HFC emissions are multiplied by 1300 (Global Warming Potential (GWP) of HFC) making air-conditioning a significant GHG source. After identification, the sources can be grouped under Scope 1, Scope 2 and Scope 3. Scope 1 emissions, as discussed earlier, are emissions from sources owned or controlled by the company (Table 6.1). Scope 2 emissions are emissions from power generation as the company consumes purchased electricity. Scope 3 emissions result from activities that are a consequence of ETL’s activities but occur from sources not owned or controlled by ETL (e.g., emissions from business travel of employees). Collect activity data and choose emission factor The next step is to gather relevant data pertaining to each activity which will help in calculating total emissions from that activity. And then, use an appropriate emission factor to calculate the resulting GHG emissions. Table 6.1 gives a list of data required for each activity and the corresponding emission factor.
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Corporate GHG Inventory Program Guide
Table 6.1: Activity data and emission factors to calculate ETL’s emissions Source/ Activity
Data required 9
Emission factor
1
Power generation from the DG set
Type and quantity of fuel consumed or Units of power generated and specific power generation value (to calculate quantity of fuel consumed), and type of fuel used
Kilogramme of CO 2 per litre of fuel (kg CO2/l of fuel)
Scope 1
2
Fuel burnt in boiler
Type and quantity of fuel burnt
kg CO2/l of fuel
Scope 1
3
Fuel burnt in thermic fluid heater
Type and quantity of fuel burnt
kg CO2/l of fuel
Scope 1
4
Fuel used in company owned vehicles
Type and quantity of fuel used or kg CO2/l of fuel Type and number of companyowned vehicles, their mileage, and distance traveled (to calculate quantity of fuel used), and type of fuel used (e.g. diesel, petrol)
Scope 1
5
Waste oil/lube oil burnt within the company
Type and quantity of oil burnt
kg CO2/l of fuel
Scope 1
6
Fuel used in canteen
Type and quantity of fuel used
kg CO2/l of fuel
Scope 1
7
HFC used as a make up for A/C
Type and quantity of HFC used as make up
GWP of HFC
Scope 1
8
Power consumption from the Grid
Units of electricity consumed
Emission factor of Scope 2 grid in kg of CO 2 per kilowatt hour (kg CO2/kWh) (For ETL, northern region grid emission factor will be used)
9
Fuel burnt in vehicles used for raw material transport
Type and quantity of fuel used or kg CO2/l of fuel Number of vehicles used for transport, their mileage, and distance traveled (to calculate quantity of fuel used), and type of fuel used (e.g. diesel, petrol)
Sl. No.
9
Classification of source
Scope 3
Where more than one option is provided, the first option represents the most preferred data, especially to calculate Scope 1 emissions.
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Sl. No.
Source/ Activity
Data required
10
Employee commuting using own vehicle
Type and quantity of fuel used 10 or Type and number of vehicles used, their mileage, and distance traveled (to calculate quantity of fuel used), and type of fuel used (e.g. diesel, petrol)
kg CO2/l of fuel
Scope 3
11
Employee commuting using public transport
Mode of travel and distance covered during travel
kg CO 2 per km per person (for various modes of travel such as by air or by train)
Scope 3
12
Business employees
Mode of travel and distance covered during travel
kg CO 2 per km per Scope 3 person (for various modes of transport such as by air or by train)
travel
by
Emission factor
Classification of source
Below are sample calculations to derive ETL’s total emissions. The emission factors used here are meant for illustration. Organisations should use the most updated and accurate emission factors when quantifying their emissions. 1. Power generation from DG set Annual electricity generated by ETL’s DG set is 1.5 lakh kilowatt hour (kWh). Specific power generation value for the DG set = 4.0 kWh/l Emission factor for diesel: 2.7458 kilogramme of CO 2 per litre (kg CO 2/l) Annual CO2 emissions
=
1.5 x 105 kWh x 2.7458 kg CO 2/l 4 kWh/l
=
1,02,967.5 kg CO2
Note : For illustration purposes this method is used assuming ETL cannot provide data pertaining to type and quantity of fuel used in the DG set. If fuel type and quantity data is available, it should be used to calculate emissions. 2.
Fuel burnt in boiler Furnace oil consumed in ETL’s boiler is 3,294 kilo litre per year. Emission factor for furnace oil: 3.0688 kg CO 2/l Annual CO2 emissions
=
3294 x 103 litre x 3.0688 kg CO 2/l
=
10,108,627.2 kg CO2
3. Fuel burnt in thermic fluid heater Furnace oil consumed in ETL’s thermic fluid heater is 15,000 litre per year. 10
32
For emissions from employee commuting (Scope 3), companies often use data pertaining to number of vehicles, mileage, and fuel type.
Corporate GHG Inventory Program Guide
Emission factor for furnace oil: 3.0688 kg CO 2/l Annual CO2 emissions
=
15000 litre x 3.0688 kg CO2/l
=
46,032 kg CO2
4. Fuel used in company owned vehicles a) Company bus: Company bus travels 90 km each day at an average 8 kilometre per litre (km/l) mileage. The bus operates 360 days in a year and uses diesel as fuel. Emission factor for diesel: 2.7458 kg CO 2/l Annual CO2 emissions
=
90 km x 360 x 2.7458 kg CO2/l 8 km/l
=
11,120.49 kg CO2
b) Company cars: ETL has 20 cars running on petrol that travel 50 km each every day of the year and give an average mileage of 10 km/l. Emission factor for petrol: 2.3822 kg CO2/l Annual CO2 emissions
=
20 x 50 km x 365 x 2.3822 kg CO 2/l 10 km/l
=
86,950.3 kg CO2
Total CO2 emissions: a+b = 98,070.79 kg CO 2
Note : For illustration purposes this method is used assuming ETL cannot provide data pertaining to type and quantity of fuel consumed by company bus and cars. If fuel type and quantity data is available, it should be used to calculate emissions. 5. Waste oil/ lube oil burnt within the industry Waste oil burnt at the rate of 18,000 litre per year. Emission factor for waste oil: 2.7993 kg CO 2/l Annual CO2 emissions
=
18000 litre x 2.7993 kg CO2/l
=
50,387.4 kg CO2
6. Fuel used in canteen 120 LPG (Liquefied Petroleum Gas) cylinders with 19 kg of gas per cylinder are used every month in ETL’s canteen. Emission factor for LPG: 2.31 kg CO 2/kg Annual CO2 emissions
=
120 x 12 x 19 kg x 2.31 kg CO2/kg
=
63,201.6 kg CO2
7. HFC used as a make up for AC Make up of Refrigerant HFC 134a per year is 40 kg
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GWP for HFC 134a = 1300 Annual CO2 emissions
=
40 kg x 1300
=
52,000 kg CO2-eq
8. Power consumption from the Grid Annual electricity consumed by ETL is 273.6 lakh kWh. Emission factor for northern grid: 0.81 kg CO 2/kWh Annual CO2 emissions
=
273.6 x 105 kWh x 0.81 kg CO 2/kWh
=
22,161,600 kg CO2
9. Fuel burnt in vehicles used for raw material transport On an average, 20 vehicles with an average mileage of 8 km/l are used to deliver raw materials. These vehicles use diesel to travel 100 km each day and are in operation for 300 days in a year. Emission factor for diesel: 2.7458 kg CO 2/l Annual CO2 emissions
=
20 x 100 km x 300 x 2.7458 kg CO 2/l 8 km/l
=
2,05,935 kg CO2
Note: For illustration purposes this method is used assuming ETL does not have data pertaining to type and quantity of fuel used to transport raw material. 10. Employee commuting using own vehicle a) Two-wheelers: 150 employees use a two-wheeler each to commute an average distance of 20 km per day at 45 km/l mileage. They commute 300 days in a year and the two-wheelers use petrol as fuel. Emission factor for petrol: 2.3822 kg CO 2/l Annual CO2 emissions
=
150 x 20 km x 300 x 2.3822 kg CO2/l 45 km/l
=
47,644 kg CO2
b) Cars: 30 ETL employees use individual cars for commuting. They travel an average of 18 km in a day using vehicles with an average mileage of 11 km/l. Cars are used for 300 days in a year for commuting and use petrol as fuel. Emission factor for petrol: 2.3822 kg CO 2/l Annual CO2 emissions
=
18 km x 30 x 300 x 2.3822 kg CO 2/l 11 km/l
=
35,083.31 kg CO2
Total CO2 emissions: a+b = 82,727.31 kg CO2
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Corporate GHG Inventory Program Guide
11. Employee commuting using public transport a) Public Transport (Rail): 100 employees travel a distance of 10 km (to and fro) each day by train to reach ETL from home. They commute 300 days in a year. Emission factor for Railway: 0.0177 kg CO2/km/person Annual CO2 emissions = 100 persons x 10 km x300 x 0.0177 kg CO2/km/person = 5,310 kg CO2 b) Public Transport (Bus): 100 employees travel an average of 15 km (to and fro) each day by road to reach ETL from home. They travel 300 days in a year and the average mileage for bus running on diesel is 8 km/l. Emission factor for diesel: 2.7458 kg CO 2/l Annual CO2 emissions =
100 x 15 km x 300 x 2.7458 kg CO 2/l 8 km/l
=
1,54,451.25 kg CO2
Total CO2 emissions: a+b = 1,59,761.25 kg CO2
12. Business travel by employees a) Public Transport (Rail): 10 employees travel by train covering an average distance of 800 km (to and fro) every month on a business trip. Emission factor for Railway: 0.0177 kg CO2/km/person Annual CO2 emissions = 10 persons x 800 km x 12 x 0.0177 kg CO2/km/person =
1,699 kg CO2
b) Public Transport (Air): 5 employees travel by Air covering an average distance of 1500 km (to and fro) every month on a business trip. Emission factor for Air transport (medium range): 0.12 kg CO 2/km/person Annual CO2 emissions = 5 persons x 1500 km x12 x 0.12 kg CO2/km/person = 10,800 kg CO2 Total CO2 emissions: a+b = 12,499 kg CO2
Note: Emission factors for diesel, petrol, furnace oil (residual fuel oil #5), waste oil (lubricants), and LPG, have been taken from the Cement tool, Version 1.0, April 2005, developed by TERI and WRI. (The cement tool contains factors derived from emission factors given in IPCC, 1999, Volume 2, Section 1). Emission factor for northern region grid is from the Central Electricity Authority (CEA) (CO2 Baseline Database for the Indian Power Sector, User Guide, Version 3.0, December 2007. Table B, p36, Combined Margin including Imports for the year 2006-07. http://www.cea.nic.in/planning/c%20and%20e/user_guide_ver3.pdf). GWP for HFC-134a is from the IPCC Second Assessment Report (1995). Emission factor for travel by airplane is from WRI’s Business Travel and Service Sector Tool, Version 1.2, August 2005 (available under ‘CO 2 emissions from business travel’ at http://www.ghgprotocol.org/calculation-tools/alltools). Emission factor for travel by train is derived from Indian railways “S tatement of fuel consumption by classes of services on government railways for The years 2005-06 and 2006-07”
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Table 6.2: Annual emissions inventory summary of ETL
S. No.
Activity
Annual Emissions (kg CO2 eq)*
Percent of total emissions 31.74
66.86
Scope 1 Scope 2 Scope 3
Total Emissions
Annual Emissions by Scope (kg CO2 eq) 10,521,286.49
22,161,600.00 460,922.56
1.39
33,143,809.05
100
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Corporate GHG Inventory Program Guide
Example 2: Calculating emissions from a software company Software Solutions Company (SSC) is a software firm with its office in Bangalore, India. SSC has 150 employees and operates for ten hours a day, 300 days in a year. The power supply comes from the southern grid and for emergency a DG set is kept as stand by. The company owns and operates 5 cars for senior executives’ travel and a bus for employee commuting. 50 employees use the company bus for daily commuting to office. 50 employees travel to work by car and 50 employees use their two wheelers for commuting. Senior executives and marketing department staff travel for business within the country. Table 6.3 gives the emission sources categorised under different scopes and the activity data to be gathered along with the corresponding emission factors. Table 6.3: Activity data and emission factors to calculate SSC’s emissions
11
S. No.
Source / Activity
1
Power generation from the DG set
2
Fuel used in company owned vehicles
3
Fuel used in canteen
4
HFC used as a make up for A/C
5
Power consumption from the Grid
6
Employee commuting using own vehicle
Data required 11
Type and quantity of fuel consumed or Units of power generated and specific power generation value (to calculate quantity of fuel consumed), and type of fuel used
Emission factor
Kilogramme of CO 2 per litre of fuel (kg CO 2/l of fuel)
Type and quantity of fuel used Kg CO2/l of fuel or Type and number of company-owned vehicles, their mileage, and distance traveled (to calculate quantity of fuel used), and type of fuel used (e.g. diesel, petrol) Type and quantity of fuel used Type and quantity of HFC used as make up Units of electricity consumed
Type and quantity of fuel used or Type and number of vehicles used, their mileage, and distance traveled (to calculate quantity of fuel used), and type of fuel used (e.g. diesel, petrol)
Classification of source Scope 1
Scope 1
Kg CO2/l of fuel
Scope 1
GWP of HFC
Scope 1
Emission factor of grid in kg of CO2 per kilowatt hour (kg CO 2/kWh) For ETL, northern region grid emission factor will be used)
Scope 2
Kg CO2/l of fuel
Scope 3
Where more than one option is provided, the first option represents the most preferred data, especially to calculate Scope 1 emissions.
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7
Business travel by employees
Mode of travel and distance covered during travel
Kg CO2 per km per person (for various modes of transport such as by air or by train)
Scope 3
Below are sample calculations to derive SSC’s total emissions. The emission factors used here are meant for illustration. It is again noted that organisations should use the most updated and accurate emission factors when quantifying their emissions. 1.
Power generation from the DG set Fuel (diesel) consumption per month is 300 litre. Emission factor for diesel: 2.7458 kg CO 2/l Annual CO2 emissions
2.
=
300 litre x 12 months x 2.7458 kg CO2/l
=
9884.88 kg CO2
Fuel used in company owned vehicles a) Company bus: The company bus consumes 1800 litre of diesel per month.
Annual CO2 emissions
=
1800 litre x 12 months x 2.7458 kg CO2/l
=
59,309.28 kg CO2
b) Company cars: SSC has 5 cars that consume 4 litre of petrol operating 360 days in a year.
Emission factor for petrol: 2.3822 kg CO2/l Annual CO2 emissions
=
5 x 4 litre x 360 days x 2.3822 kg CO2/l
=
17,151.84 kg CO2
Total CO2 emissions: a + b = 76,461.12 kg CO2
Note : This method using fuel type and quantity is the most preferred method to calculate Scope 1 emissions from company-owned vehicles. If data pertaining to type and quantity of fuel is not available, number of vehicles, their mileage and fuel quantity can be used to calculate emissions as illustrated earlier in ETL’s example. 3.
Fuel used in canteen SSC uses 3 LPG cylinders of 19 kg each every month in its canteen. Emission factor for LPG: 1.5737 kg CO 2/l Density of LPG
=
0.54 kg/l
Annual CO2 emissions
=
3 x 19 kg x 12 months x 1.5737 kg CO2/l 0.54 kg/l
=
38
1993.35 kg CO2
Corporate GHG Inventory Program Guide
4.
HFC used as a make up for AC Make up of Refrigerant HFC 134a per year = 3.6 kg GWP for HFC 134a: 1300 Annual CO2-eq emissions
5.
=
3.6 kg x 1300
=
4680 kg CO2-eq
Power consumption from the Grid Annual electricity consumed = 400 Megawatt hour (MWh) Emission factor for southern grid: 0.85 kg CO 2/kWh Annual CO2 emissions
6.
=
400 x 1000 kWh x 0.85 kg CO2/kWh
=
3,40,000 kg CO2
Employee commuting using own vehicle a) Two-wheelers: 50 employees use a two-wheeler each to come to SSC office for 300 days in a year. Each
person travels an average of 30 km in a day using vehicles that give an average mileage of 45 km/l and use petrol as fuel. Emission factor for petrol: 2.3822 kg CO2/l Annual CO2 emissions
=
50 x 30 km x 300 x 2.3822 kg CO 2/l 45 km/l
=
23,822 kg CO2
b) Cars: 50 employees use a car each to come to SSC for 300 days in a year. Each car travels an average
distance of 40 km in a day, gives an average mileage of 10 km/l and uses petrol as fuel. Emission factor for petrol: 2.3822 kg CO2/l Annual CO2 emissions
=
50 x 40 km x 300 x 2.3822 kg CO 2/l 10 km/l
=
1,42,932 kg CO2
Total CO2 emissions: a + b = 1,66,754 kg CO 2
7.
Business travel by SSC employees Air Travel : An average of 60 employees travel by Air and cover an average distance of 4000 km (to and fro) each every month. Emission factor for Air transport (long range): 0.11 kg CO2/km/person Annual CO2 emissions
=
60 persons x 4000 km x 12 x 0.11 kg CO2/km/person
=
3,16,800 kg CO2
Note: Emission factors for diesel, petrol, and LPG have been taken from the Cement tool, Version 1.0, April 2005, developed by TERI and WRI. (The cement tool contains factors derived from emission factors given in IPCC, 1999, Volume 2, Section 1).
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Emission factor for southern region grid is from the Central Electricity Authority (CEA) (CO2 Baseline Database for the Indian Power Sector, User Guide, Version 3.0, December 2007. Table B, p36, Combined Margin including Imports for the year 2006-07. http://www.cea.nic.in/planning/c%20and%20e/user_guide_ver3.pdf). GWP for HFC-134a is from the IPCC Second Assessment Report (1995). Emission factor for travel by air is from WRI’s Business Travel and Service Sector Tool, Version 1.2, August 2005 (available under ‘CO 2 emissions from business travel’ at http://www.ghgprotocol.org/calculation-tools/all-tools). Table 6.4: Annual emissions inventory summary of SSC S. No.
Activity
Annual Emissions (kg CO2-eq)*
Scope 1 1
Power generated from DG set
2
Fuel used in company owned vehicles
3
Fuel used in canteen
4
HFC used as a make up for AC
93,019.35
Power consumed from the Grid
7
76,461.12
8.34
1993.35
0.22
4680
0.51 3,40,000.0
3,40,000.0
37.09 37.09
83,698.44
52.76
Fuel used by employees commuting in their own vehicles
24,298.44
18.19
Business travel by employees
59,400.00
34.56
Total Emissions
40
10.15 1.08
Scope 3 6
Percent of total emissions
9884.88
Scope 2 5
Annual Emissions by Scope (kg CO2-eq)
14,51,718
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Chapter 7 - GHG Intensity Reduction Goals 7.1 GHG emissions intensity reduction goal One of the commandments of the CII Code on Ecologically Sustainable Business Growth asks companies to manage GHG emissions by reducing their emissions intensity. The signatory companies to the Code and the Corporate GHG Inventory Programme are encouraged to set an annual emissions intensity target (i.e., to reduce GHG emissions per unit of production compared to the preceding year’s emissions per unit of production). In case of organisations participating under Option (i), the annual target should be established at facility level, i.e., the target should be specific to each facility whose emissions are being reported. Organisations reporting under Option (ii) should establish a corporate-wide target. If the organisation moves from reporting under Option (i) to reporting under Option (ii), facility specific targets should be replaced by a single corporate-wide target. The programme strongly encourages reporting under Option (ii) and establishing a corporate-wide target, if not immediately, then within three years of joining the programme. Focusing at the corporate level, which is the highest organisational level, has the advantage of being able to manage GHG risks and opportunities more effectively. It helps focus resources on activities that result in the most cost-effective reductions. The GHG Protocol Corporate Standard which is the basis of the CII Corporate GHG Inventory Programme calculates GHG emissions using a bottom-up approach. This involves calculating emissions at the level of an individual source or facility and then rolling up to the corporate level. Thus a company’s overall emissions may decrease, even if increases occur at specific sources, facilities, or operations and vice-versa. 7.2 Setting a GHG emissions intensity reduction goal The specific numeric target for reducing emissions intensity depends on the present level of organisation’s operating efficiency and technology adoption. The target set by the participating organisations should be:
Facility-wide under Option (i) and Corporate-wide under Option (ii), and
Expressed as a decrease in emissions intensity on an annual basis
Established considering both sector-specific and company realities (When needed, CII will provide guidance to companies in establishing an emissions intensity reduction target by comparing their business-as-usual scenario to sectoral and company benchmarks.
When needed, CII will provide guidance to companies in establishing a target keeping in consideration sectorspecific and company realities. The GHG emissions intensity metrics for select industrial sectors are listed below: Cement
-
Tons of CO2eq/ton of Cement
Automobile
-
Tons of CO2eq/Vehicle type (car, truck, motorbike etc)
Refinery
-
Tons of CO2eq/Bbl/NRGF
Paper
-
Tons of CO2eq/ tons of FNP
Caustic chlorine
-
Tons of CO2eq/ ton of product
Glass
-
Tons of CO2eq/ ton of product
Aluminium
-
Tons of CO2eq/ ton of product
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Copper
-
Tons of CO2eq/ ton of product
Textile
-
kg of CO2eq/kg of product
Ceramic
-
kg of CO2eq/kg of product
Fertiliser
-
Tons of CO2eq/ ton of product
Foundry
-
kg of CO2eq/ton of product
Sugar
-
kg of CO2eq/ton of Cane crushed
Power Plant
-
kg of CO2eq/kWh generated or tons of CO 2eq/MWh generated
For companies with multiple products, the specific GHG emissions or emissions intensity can be calculated for equivalent of one major product. For companies with multiple product and multiple operations, calculation of specific emissions or emissions intensity can be based on Rs. Turnover of the company (i.e., kg or Ton of CO 2eq /Rs. Turnover). Example for calculating change in GHG emissions and emission intensity: GHG emission intensity for year 2006
=
A kg of CO2eq/ton of product
GHG emission intensity for year 2007
=
B kg of CO2eq/ton of product
Actual production for year 2006
=
Y tons of production
Actual production for year 2007
=
Z tons of production
Percentage change in GHG emission intensity
=
A – B x 100 = ……% A
Corresponding change in GHG emissions
=
(A kg of CO2eq/ton x Y tons) –(B kg of CO2eq/ton x Z tons)
=
……kg of CO2eq
7.3 Project based reductions and offsets/credits GHG emissions intensity targets require actual changes in emissions in facilities and operations. When organisations implement internal projects that reduce GHGs from their operations, the resulting reductions are usually captured in the inventory’s boundaries. These reductions need not be reported separately unless they are sold, traded externally, or otherwise used as an offset or credit. Some companies may be able to make changes to their own operations that result in changes in GHG emissions at sources not included in their own inventory boundary, or not captured by comparing emissions changes over time. For example: o Installing an on-site power generation plant (e.g., a combined heat a nd power, or CHP, plant) that provides surplus electricity to other companies may increase a company’s direct emissions, while displacing the consumption of grid electricity by the companies supplied surplus electricity. Any resulting emissions reductions at the plants where this electricity would have otherwise been produced will not be captured in the inventory of the company installing the on-site plant. o Substituting purchased grid electricity with an on-site power generation plant (e.g., CHP) may increase a company’s direct GHG emissions, while reducing the GHG emissions associated with the generation of grid electricity. Depending on the GHG intensity and the supply structure of the electricity grid, this
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reduction may be over- or under-estimated when merely comparing scope 2 emissions over time, if the latter are quantified using an average grid emission factor. o Substituting fossil fuel with waste-derived fuel that might otherwise be used as landfill or incinerated without energy recovery. Such substitution may have no direct effect on (or may even increase) a company’s own GHG emissions. However, it could result in emissions reductions elsewhere by another organisation, e.g., through avoiding landfill gas and fossil fuel use. These reductions may be separately quantified, for example using the GHG Protocol for Project Accounting, and reported in a company’s GHG public report under optional information. Project reductions that are to be used as offsets should also be quantified using the GHG Protocol for Project Accounting that addresses accounting issues specific to project emissions quantification (such as selection of a baseline scenario and baseline emissions, demonstration of additionality, identification and quantification of relevant secondary effects, consideration of reversibil ity, and avoiding double counting). These can also be reported in a company’s GHG public report under optional information.
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Chapter 8 - Reporting GHG Emissions 8.1 GHG inventory reporting requirements The Corporate GHG Inventory Programme reporting requirements are designed to provide credibility and promote continuous improvement in emissions accounting procedures. This chapter provides guidance on the steps to be adopted for reporting GHG emissions. It is not intended to provide guidance on GHG inventory verification. However, the programme encourages signatory companies who wish to undertake third party verification to do so. The programme requires organisations reporting under Option (i) to complete facility-level inventory with an independent inventory for each facility for which emissions are being accounted for. Organisations reporting under Option (ii) are required to report at corporate-level with GHG emissions disaggregated by facility. If an organisation which reported under Option (i) now begins to report under Option (ii), it no longer needs to report at facility level. Instead, it should start reporting at corporate level with emissions disaggregated by facility. 8.2 Reporting requirements Participants to the programme should submit an inventory report annually. This report should consist of two components:
Inventory Management Plan (IMP) – An IMP describes the process for completing a high quality, facility-/corporate-wide inventory.
Annual GHG Inventory Summary and Goal Tracking Form – For organisations reporting under Option (i), the annual inventory and goal tracking form should be completed for each individual facility whose emissions are being reported. For organisations reporting under Option (ii), the annual inventory should be disaggregated by facility, while the goal tracking should always be conducted at the corporate level.
The inventory report should be signed by the Chief Executive Head in case of organisations reporting under Option (ii) and Plant/Facility Head in case of those reporting under Option (i). Participants are expected to complete base year reporting within approximately one year of joining the program, however, the programme recognises that the time taken to complete a high-quality inventory and create the processes to obtain complete data for establishing base year can vary depending on the complexity of a company’s operations and existing data collection efforts. Individualised timelines for establishing base year can be considered by CII on a case-by-case basis. However, after completing base year reporting, participants should submit subsequent years’ data by June 30 of every year.
8.2.1 Inventory Management Plan Signatories to the programme should develop and maintain an Inventory Management Plan (IMP) that describes their process for completing a high-quality, facility/corporate level inventory. Companies use an IMP to institutionalise the process for collecting, calculating, and maintaining GHG data (see Climate Leaders website for examples of IMPs). The IMP should consist of seven major sections: 1. Participant Information
-
Organisation name, address and inventory contact information. In case of organisations reporting under Option (i), facility name, address and contact information should also be given.
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2. Boundary Conditions
-
Organisational and operational boundary descriptions. Organisational boundary description will not apply to organisations reporting under Option (i).
3. Emissions Quantification
-
Quantification methodologies and emission factors
4. Data Management
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Data sources, collection process and quality assurance
5. Recalculat ions
-
Base year and preceding year (for tracking annual targets) adjustments for structural and methodology changes
6. Management Tools
-
Roles and responsibilities, training and file maintenance
7. Auditing & Verification
-
Auditing, management review and corrective action
A checklist (Table 8.1) based on a similar checklist provided by the EPA Climate Leaders programme has been provided here to assist companies’ efforts to develop the IMP. A completed checklist is not a substitute for the IMP; instead, the checklist should be used as a guide to decide the components that should be included in the IMP. As part of the reporting requirements, participants describe in a format of their choice an organisation-specific approach for each component in the checklist. The IMP should be developed within a year of joining the programme, however, a few components (listed as ‘can be completed over time’) can be implemented over a period of three years. Table 8.1: GHG Inventory Management Plan Checklist 8 S.No.
IMP Component
Details Required
Issues to consider
Participant Information
This is only applicable to organisations reporting under Option (i)
Boundary conditions Organisational
This is only ap plicable to organisations reporting under Option (ii)
8
Source: Inventory Management Plan Checklist, EPA Climate Leaders. Available at http://www.epa.gov/stateply/documents/imp-checklist.pdf (last viewed on September 22, 2008)
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Operational
It is not necessary to enumerate each piece of equipment.
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Emissions Quantification
Data Management
source
Roles and responsibilities can be defined over time over time
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Can be defined over t ime ime
Optional Optional
48
This is only applicable when the organisation reports emissions at corporate at corporate level under Option under Option (ii) (ii)
Corporate GHG Inventory Program Guide
Base Year
Management Tools
Can be defined over time time
Can be defined over time time
Can Can be defined over time over time
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8.2.2 Annual GHG Inventory Summary and Goal Tracking Participants should also complete and submit the Annual GHG Inventory Summary and Goal Tracking Form to CII annually. The form records the total emissions by scope in CO2-eq, tracks total emissions over time, and also provides an opportunity to submit any optional information on project reductions and offsets. For organisations reporting under Option (i), a separate form should be submitted for each individual facility whose emissions are being reported (Table 8.2). For organisations reporting under Option (ii), the form should show disaggregated emissions by facility (Table 8.3).
Table 8.2: Suggested form for annual inventory and goal tracking for organisations reporting under Option (i) S.No.
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Reporting Information
Information/ Data
Corporate GHG Inventory Program Guide
Facility Inventory Base Year (Year 1)
Year Annual emissions (Tons of CO2 eq)
Year 2
Year 3
Year 49
Scope1 (Direct Emissions)
Total Scope 1
7a.
Scope 2 (Indirect Emissions) 7b. Total Scope 2 Scope 3 Other Indirect emissions (optional)
Total Scope 3 Total annual emissions (tons of CO2 eq) (Total Scope 1 + Total Scope 2 + Total Scope 3) 7c.
Goal Tracking at Facility level
9
Add more years, as needed Insert more rows for sources, as needed 11 Insert more rows for sources, as needed 15 Direct CO2 emissions (Scope 1) from the combustion of biomass should be included in total scope 1 emissions and also reported separately. 10
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Other Information
Descriptive Information
Table 8.3: Suggested form for annual inventory and goal tracking for organisations reporting under Option(ii) S.No.
12 13
52
Reporting Information
Information/Data
Insert rows for each project, as needed Insert rows for each offset, as needed
Corporate GHG Inventory Program Guide
Corporate Inventory (disaggregated by facility) Facility 114 Base Year (Year 1) Year 2
Year 3
Year 415
Year Annual emissions (Tons of CO2 eq)
Scope1 (Direct Emissions)
7a.
Total Scope 1
Scope 2 (Indirect Emissions) 7b. Total Scope 2 Scope 3 Other Indirect emissions (optional)
7c. Total Scope 3
Total annual emissions (tons of CO2 eq) (Total Scope 1 + Total Scope 2 + Total Scope 3)
Goal Tracking at Corporate level
14
Repeat all the information in rows 6-8 for each facility included within the organisational boundary Add more years, as needed 16 Insert more rows for sources, as needed 17 Insert more rows for sources, as needed 22 Direct CO2 emissions (Scope 1) from the combustion of biomass should be included in total scope 1 emissions and also reported separately. 15
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Other Information at Corporate level
Descriptive Information at Corporate level
8.3 Review Process CII will conduct a desktop review of signatory companies’ IMP and the annual inventory data and goal tracking form, and will provide feedback to companies based on its review. CII expects that the review process will help in improving the quality of the inventory through timely feedback on accuracy, efficiency, and relevance of companies’ and facilities’ GHG inventory data and management systems. The desktop review is designed to enhance the credibility of the GHG emissions data reported and foster continuous improvement in emissions accounting and reporting procedures of the participating companies. While doing the review, CII will closely follow the IMP checklist to ensure that adequate process was followed to complete a high quality, facility-/ corporate-wide inventory.
18 19
54
Insert rows for each project, as needed Insert rows for each offset, as needed
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Depending on the results of the desktop review, CII will decide whether a site visit is needed to ensure an accurate accounting and reporting of emissions based on the programme guidelines. The decision to conduct site visits will be taken on a case-by-case basis. 8.4 Confidentiality of data CII, in consultation with the signatory company, will publish GHG emissions intensity data and percentage reduction achieved over the previous year on CII’s website and other forums. If the company is not willing to share the data publicly, the information gathered will be kept confidential by CII. 8.5 Third-party verification Third-party verification is not compulsory for the signatories to the programme, however, CII highly encourages companies to take up third-party review. This will also help companies to meet the requirements of any carbon trading programmes that they may participate in. 8.6 Recognition to Participants CII will provide participants reporting under Option (i) and (ii) with different degrees of recognition, with a higher level of recognition (such as presenting a greenhouse gas accounting and reporting award at a high profile event) reserved for those reporting a complete corporate inventory under Option (ii). A more detailed description of different ways of recognising companies’ continued successful participation in the programme will be developed over the course of time, and CII will lay out clear and transparent guidelines in this regard. The selection process for recognition will go beyond mere participation under Option (i) or (ii), and will assess the quality and robustness of inventory management systems and the nature of intensity reductions achieved (if any). CII will help in publicity and dissemination of a participant’s achievements under the programme through national press releases and featuring case studies on their website. Participants are also encouraged to publicise their participation, intensity reduction goals and accomplishments through media announcements and include this information in internal and external materials such as annual reports.
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Glossary Absolute emissions reduction target/cap A target defined by reduction in absolute emissions over time e.g., reduces CO 2 emissions by 25% below 1994 levels by 2010. Additionality A criterion for assessing whether a project has resulted in GHG emission reductions or removals in addition to what would have occurred in its absence. This is an important criterion when the goal of the project is to offset emissions elsewhere. Allowance A commodity giving its holder the right to emit a certain quantity of GHG. Audit Trail Well organised and transparent historical records documenting how an inventory was compiled. Baseline A hypothetical scenario for what GHG emissions, removals or storage would have been in the absence of the GHG project or project activity. Base year A historic datum (a specific year) against which a company’s emissions are tracked over time. Base year emissions GHG emissions in the base year. Base Year emissions recalculation Recalculation of emissions in the base year to reflect a change in the structure of the company, or to reflect a change in the accounting methodology used. This ensures data consistency over time, i.e., comparisons of like with like over time. Biofuels Fuel made from plant material, e.g. wood, straw and ethanol from plant matter. Biologically sequestered carbon Carbon removed from the atmosphere by biological sinks and stored in plant tissue. Sequestered atmospheric carbon does not include GHGs captured through carbon capture and storage. Boundaries GHG accounting and reporting boundaries can have several dimensions, i.e. organisational, operational, geographic, business unit, and target boundaries. The inventory boundary determines which emissions are accounted and reported by the company.
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Capital Lease A lease which transfers substantially all the risks and rewards of ownership to the lessee and is accounted for as an asset on the balance sheet of the lessee. Also known as a Financial or Finance Lease. Leases other than Capital/Financial/Finance leases are Operating leases. Consult an accountant for further detail as definitions of lease types differ between various accepted financial standards. Clean Development Mechanism (CDM) A mechanism established by Article 12 of the Kyoto Protocol for project-based emission reduction activities in developing countries. The CDM is designed to meet two main objectives: to address the sustainability needs of the host country and to increase the opportunities available to Annex 1 Parties to meet their GHG reduction commitments. The CDM allows for the creation, acquisition and transfer of CERs from climate change mitigation projects undertaken in non-Annex 1 countries. Certified Emission Reductions (CERs) A unit of emission reduction generated by a CDM project. CERs are tradable commodities that can be used by Annex 1 countries to meet their commitments under the Kyoto Protocol. CO2 equivalent (CO2-eq) The universal unit of measurement to indicate the global warming potential (GWP) of each of the six greenhouse gases, expressed in terms of the GWP of one unit of carbon dioxide. It is used to evaluate releasing (or avoiding releasing) different greenhouse gases against a common basis. Co-generation unit/combined heat and power (CHP) A facility producing both electricity and steam/heat using the same fuel supply. Consolidation Combination of GHG emissions data from separate operations that form part of one company or group of companies. Control The ability of a company to direct the policies of another operation. More specifically, it is defined as either operational control (the organisation or one of its subsidiaries has the full authority to introduce and implement its operating policies at the operation) or financial control (the organisation has the ability to direct the financial and operating policies of the operation with a view to gaining economic benefits from its activities). Corporate GHG inventory programme A programme to produce annual corporate inventories that are in keeping with the principles, standards, and guidance of the GHG Protocol Corporate Standard. This includes all institutional, managerial and technical arrangements made for the collection of data, preparation of a GHG inventory, and implementation of the steps taken to manage the quality of their emission inventory. Cross-sector calculation tool A GHG Protocol calculation tool that addresses GHG sources common to various sectors, e.g. emissions from stationary or mobile combustion. See also GHG Protocol calculation tools (www.ghgprotocol.org).
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Direct GHG emissions Emissions from sources that are owned or controlled by the reporting company. Double counting Two or more reporting companies take ownership of the same emissions or reductions. Emissions The release of GHG into the atmosphere. Emission factor A factor allowing GHG emissions to be estimated from a unit of available activity data (e.g. tons of fuel consumed, tons of product produced) and absolute GHG emissions. Equity share The equity share reflects economic interest, which is the extent of rights a company has to the risks and rewards flowing from an operation. Typically, the share of economic risks and rewards in an operation is aligned with the company’s percentage ownership of that operation, and equity share will normally be the same as the ownership percentage. Estimation uncertainty Uncertainty that arises whenever GHG emissions are quantified, due to uncertainty in data inputs and calculation methodologies used to quantify GHG emissions. Finance lease A lease which transfers substantially all the risks and rewards of ownership to the lessee and is accounted for as an asset on the balance sheet of the lessee. Also known as a Capital or Financial Lease. Leases other than Capital/ Financial/Finance leases are Operating leases. Consult an accountant for further detail as definitions of lease types differ between various accepted accounting principles. Fugitive emissions Emissions that are not physically controlled but result from the intentional or unintentional releases of GHGs. They commonly arise from the production, processing transmission storage and use of fuels and other chemicals, often through joints, seals, packing, gaskets, etc. Green Power A generic term for renewable energy sources and specific clean energy technologies that emit fewer GHG emissions relative to other sources of energy that supply the electric grid. Includes solar photovoltaic panels, solar thermal energy, geothermal energy, landfill gas, low-impact hydropower, and wind turbines. Greenhouse gases (GHG) For the purposes of this standard, GHGs are the six gases listed in the Kyoto Protocol: carbon dioxide (CO 2); methane (CH 4); nitrous oxide (N 2O); hydrofluorocarbons (HFCs); perfluorocarbons (PFCs); and sulphur hexafluoride (SF 6).
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GHG credit GHG offsets can be converted into GHG credits when used to meet an externally imposed target. A GHG credit is a convertible and transferable instrument usually bestowed by a GHG programme. GHG emissions intensity (or Intensity ratios) Ratios that express GHG impact per unit of physical activity or unit of economic value (e.g. tons of CO2 emissions per unit of electricity generated). Intensity ratios are the inverse of productivity/efficiency ratios. GHG emission reduction project/ GHG mitigation project A specific project or activity designed to achieve GHG emission reductions, storage of carbon, or enhancement of GHG removals from the atmosphere. GHG projects may be stand-alone projects, or specific activities or elements within a larger non-GHG related project. GHG offset Offsets are discrete GHG reductions used to compensate for (i.e., offset) GHG emissions elsewhere, for example to meet a voluntary or mandatory GHG target or cap. Offsets are calculated relative to a baseline that represents a hypothetical scenario for what emissions would have been in the absence of the mitigation project that generates the offsets. To avoid double counting, the reduction giving rise to the offset must occur at sources or sinks not included in the target or cap for which it is used. GHG programme A generic term used to refer to any voluntary or mandatory international, national, sub-national, government or non-governmental authority that registers, certifies, or regulates GHG emissions or removals outside the company. e.g. CDM, EU ETS, CCX, and CCAR. GHG Protocol calculation tools A number of cross-sector and sector-specific tools that calculate GHG emissions on the basis of activity data and emission factors (available at www.ghgprotocol.org). GHG Protocol for Project Accounting An additional module of the GHG Protocol Initiative addressing the quantification of GHG reduction projects. This includes projects that will be used to offset emissions elsewhere and/or generate credits. More information available at www.ghgprotocol.org GHG Protocol Initiative A multi-stakeholder collaboration convened by the World Resources Institute and World Business Council for Sustainable Development to design, develop and promote the use of accounting and reporting standards for business. It comprises ofthe GHG Protocol Corporate Accounting and Reporting Standard, and the GHG Protocol for Project Accounting. GHG public report Provides, among other details, the reporting company’s physical emissions for its chosen inventory boundary.
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GHG registry A public database of organisational GHG emissions and/or project reductions. For example, the US Department of Energy 1605b Voluntary GHG Reporting Program, CCAR, World Economic Forum’s Global GHG Registry. Each registry has its own rules regarding what and how information is reported. GHG removal Absorbtion or sequestration of GHGs from the atmosphere. GHG sink Any physical unit or process that stores GHGs; usually refers to forests and underground/deep sea reservoirs of CO2. GHG source Any physical unit or process which releases GHG into the atmosphere. GHG target/ cap An overall limit on GHG emissions. GHG trades All purchases or sales of GHG emission allowances, offsets, and credits. Global Warming Potential (GWP) A factor describing the radiative forcing impact (degree of harm to the atmosphere) of one unit of a given GHG relative to one unit of CO2. Group company/subsidiary The parent company has the ability to direct the financial and operating policies of a group company/subsidiary with a view to gaining economic benefits from its activities. Indirect GHG emissions Emissions that are a consequence of the operations of the reporting company, but occur at sources owned or controlled by another company. Insourcing The administration of ancillary business activities, formally performed outside of the company, using resources within a company. Intensity target A target defined by reduction in the ratio of emissions and a business metric over time e.g., reduce CO 2 per ton of cement by 12% between 2000 and 2008.
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Intergovernmental Panel on Climate Change (IPCC) International body of climate change scientists. The role of the IPCC is to assess the scientific, technical and socio-economic information relevant to the understanding of the risk of human-induced climate change (www.ipcc.ch). Inventory A quantified list of an organisation’s GHG emissions and sources. Inventory boundary An imaginary line that encompasses the direct and indirect emissions that are included in the inventory. It results from the chosen organisational and operational boundaries. Inventory quality The extent to which an inventory provides a faithful, true and fair account of an organisation’s GHG emissions. Joint Implementation (JI) The JI mechanism was established in Article 6 of the Kyoto Protocol and refers to climate change mitigation projects implemented between two Annex 1 countries. JI allows for the creation, acquisition and transfer of “emission reduction units” (ERUs). Kyoto Protocol A protocol to the United Nations Framework Convention on Climate Change (UNFCCC). Once entered into force it will require countries listed in its Annex B (developed nations) to meet reduction targets of GHG emissions relative to their 1990 levels during the period of 2008–12. Leakage (Secondary effect) Leakage occurs when a project changes the availability or quantity of a product or service that results in changes in GHG emissions elsewhere. Life Cycle Analysis Assessment of the sum of a product’s effects (e.g. GHG emissions) at each step in its life cycle, including resource extraction, production, use and waste disposal. Material discrepancy An error (for example from an oversight, omission, or miscalculation) that results in the reported quantity being significantly different to the true value to an extent that will influence performance or decisions. Also known as material misstatement. Materiality threshold A concept employed in the process of verification. It is often used to determine whether an error or omission is a material discrepancy or not. It should not be viewed as a de minimus for defining a complete inventory.
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Mobile combustion Burning of fuels by transportation devices such as cars, trucks, trains, airplanes, ships etc. Non-Annex 1 Countries Countries that have ratified or acceded to the UNFCC but are not listed under Annex 1 and are therefore not under any emission reduction obligation (see also Annex 1 countries). Operation A generic term used to denote any kind of business, irrespective of its organisational, governance, or legal structures. An operation can be a facility, subsidiary, affiliated company or other form of joint venture. Operating lease A lease which does not transfer the risks and rewards of ownership to the lessee and is not recorded as an asset in the balance sheet of the lessee. Leases other than Operating leases are Capital/Financial/Finance leases. Consult an accountant for further detail as definitions of lease types differ between various accepted financial standards. Operational boundaries The boundaries that determine the direct and indirect emissions associated with operations owned or controlled by the reporting company. This assessment allows a company to establish which operations and sources cause direct and indirect emissions, and to decide which indirect emissions to include that are a consequence of its operations. Organic growth/decline Increases or decreases in GHG emissions as a result of changes in production output, product mix, plant closures and the opening of new plants. Organisational boundaries The boundaries that determine the operations owned or controlled by the reporting company, depending on the consolidation approach taken (equity or control approach). Outsourcing The contracting out of activities to other businesses. Primary effects The specific GHG reducing elements or activities (reducing GHG emissions, carbon storage, or enhancing GHG removals) that the project is intended to achieve. Process emissions Emissions generated from manufacturing processes, such as the CO 2 that is arises from the break down of calcium carbonate (CaCO3) during cement manufacture.
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Renewable energy Energy taken from sources that are inexhaustible, e.g. wind, water, solar, geothermal energy, and biofuels. Reporting Presenting data to internal management and external users such as regulators, shareholders, the general public or specific stakeholder groups. Reversibility of reductions This occurs when reductions are temporary, or where removed or stored carbon may be returned to the atmosphere at some point in the future. Scope Defines the operational boundaries in relation to indirect and direct GHG emissions. Scope 1 inventory A reporting organisation’s direct GHG emissions. Scope 2 inventory A reporting organisation’s emissions associated with the generation of electricity, heating/ cooling, or steam purchased for own consumption. Scope 3 inventory A reporting organisation’s indirect emissions other than those covered in scope 2. Secondary effects (Leakage) GHG emissions changes resulting from the project not captured by the primary effect(s). These are typically the small, unintended GHG consequences of a project. Sector-specific calculation tools A GHG calculation tool that addresses GHG sources that are unique to certain sectors, e.g., process emissions from aluminum production. (see also GHG Protocol calculation tools). Significance threshold A qualitative or quantitative criteria used to define a significant structural change. It is the responsibility of the company/ verifier to determine the “significance threshold” for considering base year emissions recalculation. In most cases the “significance threshold” depends on the use of the information, the characteristics of the company, and the features of structural changes. Stationary Combustion Burning of fuels to generate electricity, steam, heat, or power in stationary equipment such as boilers, furnaces etc.
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Structural change A change in the organisational or operational boundaries of a company that result in the transfer of ownership or control of emissions from one company to another. Structural changes usually result from a transfer of ownership of emissions, such as mergers, acquisitions, divestitures, but can also include outsourcing/ insourcing. Uncertainty 1. Statistical definition: A parameter associated with the result of a measurement that characterises the dispersion of the values that could be reasonably attributed to the measured quantity. (e.g., the sample variance or coefficient of variation). 2.
Inventory definition: A general and imprecise term which refers to the lack of certainty in emissions-related data resulting from any causal factor, such as the application of non-representative factors or methods, incomplete data on sources and sinks, lack of transparency etc. Reported uncertainty information typically specifies a quantitative estimate of the likely or perceived difference between a reported value and a qualitative description of the likely causes of the difference.
United Nations Framework Convention on Climate Change (UNFCCC) Signed in 1992 at the Rio Earth Summit, the UNFCCC is a milestone Convention on Climate Change treaty that provides an overall framework for international efforts to (UNFCCC) mitigate climate change. The Kyoto Protocol is a protocol to the UNFCCC. Value chain emissions Emissions from the upstream and downstream activities associated with the operations of the reporting company. Verification An independent assessment of the reliability (considering completeness and accuracy) of a GHG inventory.
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Appendix 1 : CII Code for Ecologically Sustainable Business Growth
CII – CODE FOR ECOLOGICALLY SUSTAINABLE BUSINESS GROWTH Being cognizant of the need of sustainable growth and dwindling stock of natural capital, we commit ourselves to the attainment of the following Ten - Natural Capital Commandments. 1)
Reduce specific consumption of energy and water by 2-6%* every year over next ten years
2)
Reduce specific generation of waste and reduce the quantum of waste going to landfills by 26%* every year over next ten years
3)
Increase use of renewables, including renewable energy by 2-10%* every year in place of non-renewables over next ten years
4)
Reduce specific greenhouse gas emissions and other process emissions by 2-6%* every year over next ten years and explore opportunities through Clean Development Mechanism (CDM) and other Carbon Exchange programmes
5)
Increase use of recyclables and enhance recyclability of resources embedded in the product by 2-10%* every year over next ten years
6)
Increase the share of harvested rain water in the overall annual use of water by 2-10%* every year over next ten years
7)
Incorporate life cycle assessment criteria for evaluating new and alternative technologies and products
8)
Strive to adopt green purchase policy and incorporate latest clean technologies
9)
Take lead in promoting and managing product stewardship programme, by forging partnerships with businesses and communities
10)
Reduce depletion of natural capital which is directly attributable to company’s activities, products and services by 2-10%* every year over next ten years.
We also commit to demonstrate attainment of these commandments in our pursuit to certifications such as ISO 9001, ISO 14001, OHSAS 18001, SA 8000, Green Buildings, Eco Labels and the like.
Date :
Signature : _______________________________________
* The figures suggested for reduction are indicative only. The individual member units are free to choose any targets. This target annual reduction could be based on their present levels of operating efficiency, technology adoption and management priorities.
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Appendix 2 : Selected GHG Programmes Based on or Informed by the GHG Protocol The following are several examples of nat ional and regional GHG programmes based on or informed by the GHG Protocol Corporate Standard. This is not meant to be an exhaustive list and is limited to those programmes that have advanced at least to the stage of providing draft programme specifications. The Business Leaders Initiative on Climate Change (BLICC) is an international network of companies from several industries aiming to reduce their impact on climate change. Administered by the consultancy firm Respect, BLICC began in 2000 with the initiative of corporate leaders from international companies including DHL, IKEA and The Body Shop. BLICC members produce GHG inventories based on the GHG Protocol Corporate Standard, and BLICC publishes periodic reports of its members’ climate change strategies, outcomes, and best practices. The California Climate Action Registry was established by California statute as a non-profit, voluntary registry for GHG emissions. The purpose of the Registry is to help companies and organisations with operations in California establish GHG emission baselines. The California Climate Action Registry has been involved in designing The Climate Registry, with which it is expected to merge in 2009 – 10. The Canadian GHG Challenge Registry is a voluntary, publicly accessible national registry of GHG baselines, targets, and reductions. Administered by the Canadian Standards Association, its aim is for participants from all economic sectors and geographic regions to demonstrate meaningful contributions to reducing Canada’s GHG emissions. Participants develop GHG inventories, set GHG targets, and prepare GHG action plans. The Carbon Disclosure Project (CDP) is an independent not-for-profit organisation which acts as an intermediary between shareholders and corporations providing primary climate change data from the world’s largest corporations to the global marketplace. The data is obtained from responses to CDP’s annual information request sent on behalf of institutional investors and purchasing organisations. Launched in 2000, CDP currently represents 385 institutional investors, and is being managed as the CDP India Project by WWF-India and CII in the country. carboNZero is a programme administered by Landcare Research in New Zealand to measure, manage and mitigate carbon dioxide (CO 2) emissions from organisations, products and services, and events. The programme aims to assist individuals and organisations to reduce GHG emissions, and provides guidance on measuring, managing, and offsetting CO2 emissions. The Chicago Climate Exchange (CCX) is a legally binding emission allowance trading system. Participants make a voluntary and legally binding commitment to meet annual GHG reduction targets. Participants who reduce emissions below their targets may sell or bank surplus allowances, while those who emit above their targets purchase CCX Carbon Financial Instrument® contracts. Climate Leaders is an industry-government partnership administered by the United States Environmental Protection Agency (EPA) that works with companies to develop climate change strategies. Participants set corporate-wide GHG reduction targets and create GHG inventories to measure progress towards those targets. Climate Savers, a voluntary programme administered by the World Wildlife Fund, works with companies to set and meet targets to reduce CO2 emissions.
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The European Union Emission Trading Scheme (EU-ETS) is a mandatory, multi-national GHG emission trading scheme launched in 2005 and administered by the European Commission. Under the EU-ETS, regulated installations monitor and report their CO 2 emissions, and annually surrender emission allowances equivalent to their CO2 emissions in that year. Greenhouse Challenge Plus is a partnership between industry and the Australian government to reduce GHG emissions, promote awareness of GHG abatement opportunities, improve energy efficiency, integrate GHG management into business decision-making, and provide more consistent reporting of GHG emissions. Greenhouse Challenge Plus is part of Australia’s national climate change strategy, announced in 2004. The programme is managed by the Australian Greenhouse Office as part of the Australian Government’s Department of the Environment and Water Resources. The Mexico GHG Program is a voluntary GHG accounting and reporting programme created as a partnership between the Mexican Secretariat of Environment and Natural Resources (SEMARNAT), WRI, WBCSD, and the Center of Private-Sector Studies for Sustainable Development (CESPEDES). Participating companies, which include Mexico’s entire cement, petroleum, and beer brewing sectors as well as a significant portion of its steel sector, make a voluntary commitment to create and publicly report corporate GHG inventories each year. The Philippine GHG Accounting and Reporting Program (PhilGARP) is a voluntary GHG accounting and reporting programme created as a partnership between the Manila Observatory, Philippine Business for the Environment, the Department of Environment and Natural Resources, the Department of Energy, WRI, and WBCSD. PhilGARP is designed to train participating businesses and organisations operating in the Philippines on GHG management based on the GHG Protocol standards and tools, to assist participants in the creation of corporate GHG inventories, and to provide a platform for public reporting and information dissemination on GHG management issues. The Regional Greenhouse Gas Initiative (RGGI) is an effort by northeast and mid -Atlantic U.S. states to design a regional cap-and-trade programme covering CO2 emissions from power plants in the region. Subsequent to its first phase, RGGI may be extended to cover other sources and gases. Participants in RGGI include states such as Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, and Vermont. The Climate Registry is a collaboration between states, provinces, and tribes in North Am erica aimed at developing and managing a common GHG emission reporting system that is capable of supporting various GHG emission reporting and reduction policies for its member states, provinces, tribes, and reporting entities. Established by Section 1605(b) of the U.S. Energy Policy Act of 1992, the Voluntary Reporting of Greenhouse Gases Program encourages corporations and other private and public entities to submit ann ual reports of their entity-wide GHG emissions, emission reductions, and sequestration activities. The Program aims to provide a means for voluntary reporting that is complete, reliable, and consistent and permits participants to create a public record of their emissions, emission reductions, and/or sequestration achievements. Source: WRI/WBCSD 2007. The Greenhouse Gas Protocol: Measuring to Manage: A Guide to Designing GHG Accounting and Reporting Programs. Chapter 1.
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Appendix 3 : GHG Accounting Decisions in Selected GHG Programmes Programme Name
Organisational Boundaries
Operational Boundaries
Accounting Thresholds
Base Year
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Corporate GHG Inventory Program Guide
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1. In practice, this policy results in no de minimis sources, since U.S. EPA provides technical assistance to estimate smaller sources using simplified methodologies. 2. Since the EU Emission Trading Scheme, the Greenhouse Gas Information System, and the Regional Greenhouse Gas Initiative define the reporting entity at the facility level, organisational boundary consolidation does not apply. By the same logic, there is no need for a recalculation pol icy or significance threshold in the event of structural changes. 3. The Regional Greenhouse Gas Initiative only covers major electric generating sources, so de minimis is not applicable. 4. Data for the Regional Greenhouse Gas Initiative are reported through Continuous Emission Measurement Systems (CEMS) and are subject to electronic, field, targeted, and random audits. 5. These accounting decisions pertain to voluntary reporting under The Climate Registry. Source: WRI/WBCSD 2007. The Greenhouse Gas Protocol: Measuring to Manage: A Guide to Designing GHG Accounting and Reporting Programs. Chapter 4.
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Appendix 4 : Gas Atmospheric Lifetime and Global Warning Potential (GWP) Greenhouse Gas
Formula
Atmospheric Lifetime (Years)
Global Warming Potential (GWP)a
Carbon dioxide
CO2
50 - 200
1
Methaneb
CH4
12 +/-3
21
Nitrous oxide
N2O
120
SF 6
3,200
23,900
HFC-23
CHF3
264
11,700
HFC-32
CH2F2
5.6
650
HFC-41
CHF3F
3.7
150
HFC-125
C2HF5
32.6
2,800
HFC-134
C2H2F4
10.6
1,000
HFC-134a
C2H2F4
14.6
1,300
FC-143
C2H2F4
10.6
300
HFC-143a
C2H3F3
48.3
3,800
HFC-152a
C2H4F2
1.5
HFC-227ea
C3HF7
36.5
2,900
HFC-236fa
C3H2F6
209
6,300
HFC-245ca
C3H3F5
6.6
560
C5H2F10
17.1
1,300
CF4
50,000
6,500
PFC-116
C2F6
10,000
9,200
PFC-218
C3F8
2,600
7,000
C4F10
2,600
7,000
C 4F 8
2,600
7,000
PFC-4-1-12
C5F12
4,100
7,500
PFC-5-1-14
C6F14
3,200
7,400
Sulphur hexafluoride
310
HFCs:
HFC-4310mee
140
PFCs: PFC-14
PFC-3-1-10 PFC-c318
c-
Source: Intergovermental Panel on Climate Change (IPCC) 1995. Second Assessment Report (SAR). a) 100-year time horizon b) The methane GWP includes the direct effects and those indirect effects due to the production of tropospheric ozone and stratospheric water vapor. The indirect effect due to the production of CO 2 is not included.
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Appendix 5 : Overview of Direct and Indirect GHG Emission Sources for Various Industrial Sectors Scope 1 Emission Sources
Sector
Scope 2 Emission Sources
Scope 3 Emission Sources1
ENERGY
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METALS
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Corporate GHG Inventory Program Guide
CHEMICALS
MINERALS
WASTE
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PULP & PAPER
HFC, PFC, SF6 & HCFC 22 PRODUCTION
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SEMICONDUCTOR PRODUCTION
OTHER SECTORS
7
1.
Scope 3 activities of outsourcing, contract manufacturing, and franchises are not addressed in this table because the inclusion of specific GHG sources will depend on the nature of the outsourcing.
2.
The American Petroleum Institute’s Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Gas Industry (2004) provides guidelines and calculation methodology for calculating GHG emissions from the oil and gas sector.
3.
The International Aluminum Institute’s Aluminum Sector Greenhouse Gas Protocol (2003), in cooperation with WRI and WBCSD, provides guidelines and tools for calculating GHG emissions from the aluminum sector.
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4.
The International Iron and Steel Institute’s Iron and Steel sector guidelines, in cooperation with WRI and WBCSD, are under development.
5.
The WBCSD Working Group Cement: Toward a Sustainable Cement Industry has developed The Cement CO2 Protocol: CO2 Emissions Monitoring and Reporting Protocol for the Cement Industry (2002), which includes guidelines and tools to calculate GHG emissions from the cement sector.
6. The Climate Change Working Group of the International Council of Forest and Paper Associations has developed Calculation Tools for Estimating Greenhouse Gas Emissions from Pulp and Paper Mills (2002), which includes guidelines and tools to calculate GHG emissions from the pulp and paper sector. 7. Businesses in “other sectors” can estimate GHG emissions using cross-sectoral estimation tools – stationary combustion, mobile (transportation) combustion, HFC use, measurement and estimation uncertainty, and waste. 8. WRI has developed Hot Climate, Cool Commerce:; An Service Sector Office Guide to Greenhouse Gas Management (2006), which is a step-by-step manual for service-sector businesses, and Working 9 to 5 on Climate Change: An Office Guide (2002), which includes guidelines for calculating GHG emissions from officebased organisations. Source: WRI/WBCSD 2004. The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition). Appendix D.
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Appendix 6 : Emission Factors for Indian Regional Grids Table 1: Weighted average emission factor, simple operating margin (OM), build margin (BM) and combined margin (CM) of all Indian regional grids for FY 2006-07 (inter-regional and cross-border electricity transfers included), in tCO2 /MWh Average
OM
BM
CM
North
0.74
1.00
0.63
0.81
East
1.00
1.09
0.93
1.01
South
0.72
1.00
0.71
0.85
West
0.86
0.99
0.59
0.79
North-East
0.40
0.70
0.23
0.46
India
0.80
1.01
0.68
0.84
Average is the average emission of all stations in the grid, weighted by net generation OM is the average emission from all stations excluding the low cost/must run sources. BM is the average emission of the 20% (by net generation) most recent capacity addition in the grid. CM is a weighted average of the OM and BM (here weighted 50 – 50) Source: Central Electricity Authority 2007. CO 2 Baseline Database for the Indian Power Sector, User Guide. Version 3.0. December 2007. Available at http://www.cea.nic.in/planning/c%20and%20e/user_guide_ver3.pdf (last viewed on September 17, 2008).
Table 2: Values for all regional grids for FY 2000-01 until FY 2006-07, including inter – regional and crossborder electricity transfers Weighted Average Emission Rate (tCO2/MWh) (incl. Imports) 2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
North
0.72
0.73
0.75
0.71
0.72
0.73
0.74
East
1.06
1.03
1.09
1.08
1.05
1.05
1.00
South
0.74
0.75
0.82
0.84
0.79
0.74
0.72
West
0.90
0.92
0.90
0.90
0.92
0.89
0.86
North – East
0.42
0.41
0.40
0.43
0.52
0.33
0.40
India
0.82
0.83
0.85
0.85
0.84
0.81
0.80
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Simple Operating Margin (tCO2/MWh) (incl. Imports) 2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
North
0.98
0.98
1.00
0.99
0.98
1.00
1.00
East
1.22
1.19
1.17
1.20
1.17
1.13
1.09
South
1.02
1.00
1.01
1.00
1.00
1.01
1.00
West
0.98
1.01
0.99
0.99
1.01
1.00
0.99
North-East
0.74
0.71
0.74
0.74
0.90
0.70
0.70
India
1.01
1.02
1.02
1.02
1.02
1.02
1.01
Build Margin (tCO2/MWh) (not adjusted for imports) 2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
North
0.53
0.60
0.63
East
0.90
0.97
0.93
South
0.70
0.71
0.71
West
0.77
0.63
0.59
North-East
0.15
0.15
0.23
India
0.69
0.68
0.68
Combined Margin in tCO2/MWh (incl. imports) 2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
North
0.76
0.76
0.77
0.76
0.76
0.80
0.81
East
1.06
1.05
1.04
0.05
1.04
1.05
1.01
South
0.86
0.85
0.86
0.85
0.85
0.86
0.85
West
0.87
0.89
0.88
0.88
0.89
0.82
0.79
North-East
0.44
0.43
0.44
0.44
0.52
0.42
0.46
India
0.85
0.86
0.86
0.86
0.86
0.85
0.84
Source: Central Electricity Authority 2007. CO 2 Baseline Database for the Indian Power Sector, User Guide. Version 3.0. December 2007. Available at http://www.cea.nic.in/planning/c%20and%20e/user_guide_ver3.pdf (last viewed on September 17, 2008).
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Appendix 7 : Direct Emissions from sector specific sources Cement Production (CO2 emissions) Direct Process CO2 Emissions Using Clinker Method
Tier
Method
Emission Factors
Process CO2 emissions from Clinker Calcination A
B
Process CO2 emissions from Discarded Cement Kiln Dust A1
A2
B
Process CO2 emissions from Organic Carbon in Raw Meal A
B
Direct Process CO2 Emissions Using Carbonate Input Method Tier
Method
Emission Factors
A
B
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Clinker Method Source : Cement Sustainability Initiative,The Cement CO2 Protocol: CO 2 Accounting and Reporting Standard for the Cement Industry (2005) Version 2.0. consistent with California Air Resources Board, Draft Regulation for the Mandatory Reporting of Greenhouse Gas Emissions, 2007, and the California Climate Action Registry’s Cement Reporting Protocol, 2005
Process CO2 Emissions
=
CO2(clinker) + CO2 (cement kiln dust)+CO2 (non-carbonatecarbon)
=
(Cli x EF Cli) + (CKD x EF CKD) +(TOCRM x RM x 44/12)
Where: Cli
=
Quantity of clinker produced, metric tons
EFCli
=
Clinker emission factor, metric tons CO2 / metric tons clinker
CKD
=
Quantity CKD discarded
EFCKD
=
CKD emission factor
TOCRM =
Organic carbon content of raw material (%)
RM
Amount of raw material consumed (metric tons /year)
=
44/12 =
The CO2 to carbon molar ratio
Clinker Emission Factor EFCli
=
[(CaO content – non-carbonate CaO) x Molecular ratio of CO2/CaO] + [(MgO Content – non-carbonate MgO) x Molecular ratio of CO2/MgO]
Where: CaO Content (by weight)
=
CaO content of Clinker (%)
MgO Content (by weight)
=
MgO content of Clinker (%)
Molecular ratio of CO2/CaO
=
44g/56g = 0.785
Molecular ratio of CO2/MgO
=
44g/40g = 1.092
CKD Emission Factor: EFcli _____ x d 1+EFcli EFCKD
= _______________ EFcli 1 - _____ x d 1+EFcli
Where:
82
EFCKD
=
CKD Emission Factor
EFcli
=
Clinker Emission Factor
d
=
CKD Calcination Rate :
Corporate GHG Inventory Program Guide
f CO2CKD x (1- f CO2 RM)
d
= 1 - _______________________ f CO2RM x (1- f CO2 CKD)
Where: f CO2CKD = weight fraction of carbonate CO2 in the CKD f CO2 RM = weight fraction of carbonate CO2 in the raw meal
Carbonate Input Method Source : IPCC 2006 (Tier 3 Method) EQUATION 2.3 : TIER 3 : EMISSIONS BASED ON CARBONATE RAW MATERIAL INPUTS TO THE KILN
Where: CO2 Emissions =
emissions of CO2 from cement production, tonnes
EFi
=
emission factor for the particular carbonate i, tonnes CO2/tonne of carbonate
Mi
=
weight or mass of carbonate i consumed in the kiln, tonnes
Fi
=
fraction calcination achieved fro carbonate i, fraction
Md
=
weight or mass of CKD not recycled to the kiln (=‘lost’ CKD), tonnes
Cd
=
weight fraction of original carbonate in the CKD not recycled to the kiln, fraction
EFd
=
emission factor for the uncalcined carbonate in CKD not recycled to the kiln, tonnes CO2/tonne of carbonate
Mk
=
weight or mass of organic or other carbon-bearing nonfuel raw material k, tonnes
Xk
=
fraction of total organic or other carbon in specific non fuel raw material k, fraction
EFk
=
emission factor for kerogen (or other carbon)- bearing non fuel material k, tonnes CO2/tonne carbonate
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Default CO2 Emission Factors for Carbonate Inputs Source : IPCC 2006
HCFC-22 Production (HFC-23 Emissions) Direct Process HFC-23 Emissions from HCFC-22 Production Tier A B C
Method
Emission Factors
Mass Balance Based on Process Efficiencies Source: IPCC 2006, Equations 3.31 – 3.33 (Tier 2 Method) EHFC-23
= EFcalculated x PHCFC-22 x Freleased
Where :
84
EHFC-23
=
by-product HFC-23 emissions from HCFC-22 production, kg
EFcalculated
=
HFC-23 calculated emission factor, kg HFC-23/kg HCFC-22
PHCFC-22
=
total HCFC-22 production, kg
Corporate GHG Inventory Program Guide
Freleased
=
Fraction of the year that this stream was released to atmosphere untreated, fraction
The calculated emission factor can be calculated from both the carbon efficiency and the fluorine efficiency (equations below). The value used in the above equation should be the average of these two values. EFcarbon_balance
= (100-CBE) x Fefficiency loss x FCC 100
Where, EFcarbon_balance = HFC-23 emission factor calculated from carbon balance efficiency, kg HFC-23/kg HCFC-22 CBE
= Carbon balance efficiency, percent
Fefficiency loss = factor to assign efficiency loss to HFC-23, fraction FCC = factor for the carbon content of this component (=0.81), kg HFC-23/kg HCFC-22 EFfluorine_balance
= (100-FBE) x Fefficiency loss x FFC 100
Where, EFfluorine_balance = HFC-23 emission factor calculated from fluorine balance efficiency, kg HFC-23/kg HCFC-22 FBE = Fluorine balance efficiency, percent Ffficiency loss = factor to assign efficiency loss to HFC-23, fraction FFC = factor for the fluorine content of this component (=0.54), kg HFC-23 /kg HCFC-22
Mass Balance Based on Production Data Source :WRI/WBCSD, Calculating HFC-23 Emissions from the Production of HCFC-22,2001. HFC-23 Emissions =
(HCFC-22 Production x HFC-23 Emission Factor)x (1- Fraction Abated x Utilisation Factor)
Where: HCFC-22 Production = total amount of HCFC-22 produced by the facility in metric tons. HFC-23 Emission Factor = EF from HCFC-22 production (metric tons of HFC-23/metric ton of HCFC-22 produced) Fraction Abated(%) = Percent of emissions abated by reduction technologies and practices (if applicable) Utilisation Factor (%) = Percent of time the abatement technology was in use (if applicable) Default Emission Factors Source : IPCC 2006, Table 3.28 HFC-23 Emission Factor (kg HFC-23/kg HCFC-22 produced) by Type Old, un-optimized plants (e.g., 1940s to 1995)
0.04
Plants of recent design, not specifically optimized
0.03
Iron and Steel Production (CO2 Emissions) Direct Process CO2 Emissions from Iron and Steel Production Tier
Method
Emission Factors
A
Mass Balance
Plant-specific carbon content factors
B
Mass Balance
Default carbon content factors (IPCC Table 4.3)
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Mass Balance Method Source : IPCC 2006 Equations 4.9-4.11 (Tier 2/3 method) Process CO2 Emissions = CO2 (Iron & Steel Prod) + CO2 (Sinter Prod) + CO2 (Direct Reduced Iron Prod)
EQUATION 4.9 : CO 2 EMISSIONS FROM IRON & STEEL PRODUCTION (TIER 2) Where, ECO2, non-energy = process emissions of CO2, tonnes PC = quantity of coke consumed in iron and steel production (not including sinter production), tonnes COBa = quantity of onsite coke oven by-product a, consumed in blast furnace, tonnes CI = quantity of coal directly injected into blast furnace, tonnes L = quantity of limestone consumed in iron and steel production, tonnes D = quantity of dolomite consumed in iron and steel production, tonnes CE = quantity of carbon electrodes consumed in EAFs, tonnes Ob = quantity of other carbonaceous and process material b, consumed in iron and steel production, such as sinter or waste plastic, tonnes COG = quantity of coke oven gas consumed in blast furnace in iron and steel production, m 3 (or other unit such as tonnes or GJ) S= quantity of steel produced, tonnes IP = quantity of iron production not converted to steel, tonnes BG = quantity of blast furnace gas transferred offsite, m3 (or other unit such as tonnes or GJ) Cx = carbon content of material input or output x, tonnes C/(unit for material x) [e.g., tonnes C/tonne]
EQUATION 4.10 : CO2 EMISSIONS FROM SINTER PRODUCTION (TIER 2)
Where, ECO ,non-energy = process emissions of CO2, tonnes 2
CBR = quantity of purchased and onsite produced coke breeze used for sinter production, tonnes COG = quantity of coke oven gas consumed in blast furnace in sinter production, m3 (or other unit such as tonnes of GJ) BG = quantity of blast furnace gas consumed in sinter production, m 3 (or other unit such as tonnes of GJ) PMa = quantity of other process material a, other than those l isted as separate terms, such as natural gas and fuel oil, consumed for coke and sinter production in integrated coke production and iron and steel production facilities, tonnes
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Corporate GHG Inventory Program Guide
SOG = quantity of sinter off gas transferred offsite either to iron and steel production facilities or other facilities, m3 (or other unit such as tonnes of GJ) Cx = carbon content of material input or output x, tonnes C/(unit for material x) [e.g., tonnes C/tonne]
EQUATION 4.11 : CO2 EMISSIONS FROM DIRECT REDUCED IRON PRODUCTION (TIER 2) ECO ,non-energy = 2
[DRING x CNG +DRIBZ x CBZ + DRICK x CCK ] x 44/12
Where, ECO ,non-energy = process emissions of CO2, tonnes 2
DRING = amount of natural gas used in direct reduced iron production, GJ DRIBZ = amount of coke breeze used in direct reduced iron production, GJ DRICK = amount of metallurgical coke used in direct reduced iron production, GJ CNG = carbon content of natural gas, tonne C/GJ CBZ = Carbon content of coke breeze, tonne C/GJ CCK = carbon content of metallurgical coke, tonne C/GJ Default Emission Factors Source : IPCC 2006 TABLE 4.3 TIER 2 MATERIAL –SPECIFIC CARBON CONTENTS FOR IRON & STEEL AND COKE PRODUCTION (kg C /kg) Process Materials
Carbon Content
Blast Furnace Gas
0.17
Charcoal*
0.91
Coal1
0.67
Coal Tar
0.62
Coke
0.83
Coke Oven Gas
0.47
Coking Coal
0.73
Direct Reduced Iron (DRI)
0.02
Dolomite
0.13
EAF Carbon Electrodes2
0.82
EAF Charge Carbon 3
0.83
Fuel oil4
0.86
Gas Coke
0.83
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Hot Briquetted Iron
0.02
Limestone
0.12
Natural Gas
0.73
Oxygen Steel Furnace Gas
0.35
Petroleum Coke
0.87
Purchased Pig Iron
0.04
Scrap Iron
0.04
Steel
0.01
Source : Default values are consistent with the those provided in Vol 2 and have been calculated with the assumptions below. Complete references for carbon content data are included in Table 1.2 and 1.3 in Volume 2, Chapter 1. Notes: 1
Assumed other bituminous coal
2
Assumed 80 percent petroleum coke and 20 percent coal tar
3
Assumed coke oven coke
4
Assumed gas / diesel fuel
* The amount of CO 2 emissions from charcoal can be calculated by using this carbon content value, but it should be reported as zero in national greenhouse gas inventories. (See section 1.2 of Volume 1.)
Pulp and Paper Production (CO2 Emissions) Direct Process CO2 Emissions from Make-up Carbonates used in Pulp Mill Tier
Method
Emission Factors
A
Mass Balance
Default stiochiometric emission factors
Mass Balance Method Source: IPCC 2006, Section 2.5 (Consistent with International Council of Forest and Paper Association (ICFPA), Calculation Tools for Estimating Greenhouse Gas Emissions from Pulp and Paper Mills, Version 1.1, 2005 , and European Union , Guidelines for the monitoring and reporting of greenhouse gas emissions, 2006, Annex XI). Where: Carbonate used i = the amount of carbonate i (CaCO 3 and NaCO3) used in the pulp mill (metric tons) Emission Factor i = the stoichiometric ratio for make-up carbonate i (metric tons CO/metric tons CaCO 3 and metric tons CO2/metric tons NaCO3)
Direct Process CO2 Emissions from Limestone or Dolomite Used in Flue Gas Desulfurization systems Tier A
88
Method Mass Balance
Emission Factors Default stiochiometric emission factors
Corporate GHG Inventory Program Guide
Mass Balance Method Source: IPCC 2006, Section 2.5 Where: Carbonate used i = the amount of carbonate i (limestone or dolomite) consumed in the flue gas desulfurization system (tonnes) Emission Factor i = the stoichiometric ratio for carbonate i (metric tons CO 2/metric ton limestone and metric tons CO2/metric ton dolomite)
Default Emission Factors for Pulp and Paper Production Source: IPCC 2006 Table 2.1 FORMULAEE, FORMULA WEIGHTS AND CARBON DIOXIDE CONTENTS OF COMMON CARBONAT SPECIES*
Source: CRC Handbook of Chemistry and Physics (2004) * Final results (i.e., emission estimates) using these data should be rounded to no more than significant figures. ** The fraction of emitted CO 3 assuming 100 percent calcination; e.g., 1 tonne calcite, if fully calcined, would yield 0.43971 tonnes of CO 2. ***Calcite is the principal mineral in limestone. Terms like high magnesium or dolomite limestones refer to a relatively small substitution of Mg for Ca in the general CaCO 3 formula commonly shown for limestone. ****Formulae weight range shown for ankerite that Fe,Mg and Mn are present in amounts of at least 1.0 percent.
Refrigeration and A/C Equipment Manufacturing (HFC and PFC Emissions) Direct Process HFC and PFC Emissions from Manufacturing Refrigeration and A/C Equipment Tier
Method
Emission Factors
A
Mass Balance Using measured refrigent data
n/a
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Mass Balance Method Source: WRI/WBSCD, Calculating HFC and PFC Emissions from the Manufacturing, Unstallation, Operation and Disposal of Refrigerant & Air-Conditioning Equipment (Version 1.0)Consistent with U.S. EPA Climate Leaders, Direct HFC and PFC Emissions from Manufacturing Refrigeration and Air Conditioning Units, 2003
Where: Emissions = Total HFC and PFC emissions from manufacturing refrigeration and A/C equipment, in CO2 – equivalent IBi = amount of refrigerant i in inventory at the beginning of reporting period ( in storage, not equipment) IEi = amount of refrigerant i in inventory at the end of reporting period ( in storage, not equipment) Pi = Purchases/Acquisitions of Refrigerant i. This is the sum of all refrigerant acquired from other entities during the year, including refrigerant purchased from producers/distributors; refrigerant acquired in either storage containers or equipment; refrigerant returned after off-site reclamation or recycling; and refrigerant returned by equipment users. Si = Sales/Disbursements of Refrigerant i. This is the sum of all the refrigerants sold or otherwise disbursed to others entities during the year, including refrigerant sold, delivered, or disbursed in storage containers or charged into equipment; refrigerant recovered and sent off-site for recycling, reclamation or destruction; and refrigerant returned to refrigerant producers GWPi = global warming potential factor for refrigerant i from IPCC second Assessment Report Global Warming Potentials of Refrigerant Blends Refrigerant Blend
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Global Warming Potential
R-401A
18
R-401B
15
R-401C
21
R-402A
1680
R-402B
1064
R-403A
1400
R-403B
2730
R-404A
3260
R-406A
0
R-407A
1770
R-407B
2285
R-407C
1526
R-407D
1428
R-407E
1363
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R-408A
1944
R-409A
0
R-409B
0
R-410A
1725
R-410B
1833
R-411A
15
R-411B
4
R-412A
350
R-413A
1774
R-414A
0
R-414B
0
R-415A
25
R-415B
105
R-416A
767
R-417A
1955
R-418A
4
R-419A
2403
R-420A
1144
R-500
37
R-501
0
R-502
0
R-503
4692
R-504
313
R-505
0
R-506
0
R-507 or R-507A
3300
R-508A
10175
R-508B
10350
R-509 or R-509A
3920
Source : ASHRAE Standard 34
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ALUMINIUM PRODUCTION (CO 2 and PFC Emissions) Direct Process CO2 Emissions from Aluminum Production Tier
Method
Emission factors
Process-Specific Mass Balance Method Sources: IPCC 2006 Equations 4.21-4.24(Tier 2/3 Methhods)
CO2 EMISSIONS FROM PREBAKED ANODE CONSUMPTION * NAC * MP *
Where: ECO2 = CO 2 emissions from prebaked anode consumption, tonnes CO2 MP = total metal production, tonnes Al NAC = net prebaked anode consumption per tonne of aluminium, tonnes C/ tonne Al Sa = sulphur content in baked anodes, wt % Asha = ash content in baked anodes, wt % 44/12 = CO2 molecular mass: carbon atomic mass ratio, dimensionless CO2 EMISSIONS FROM PITCH VOLATILES COMBUSTION
GAHw BA WT) *
Where: ECO2 = CO 2 emissions from pitch volatiles combustion, tonnes CO 2 GA = initial weight of green anodes, tonnes Hw = hydrogen content in green anodes, tonnes BA = baked anode production, tonnes WT = waste tar collected, tonnes
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CO2 EMISSIONS FROM BAKE FURNACE PACKING MATERIAL * PCC * BA*
Where: ECO2 = CO 2 emissions from bake furnace packing material, tonnes CO 2 PCC = packing coke consumption, tonnes/tonne BA BA = baked anode production, tones Spc = sulphur content in packing coke, wt % Ashpc = ash content in packing coke, wt % CO2 EMISSIONS FROM PASTE CONSUMPTION ( For Soderberg cells (VSS and HSS) )
PC * MP CSM * MP PC * MP *
Where: ECO2 = CO2 emissions from paste consumption, tonnes CO2 MP = total metal production, tonnes Al PC = paste consumption, tonnes/tonne Al CSM = emissions of cyclohexane soluble matter, kg/tonne Al BC = binder content in paste, wt % Sp = sulphur content in pitch, wt % Ashp = ash content in pitch, wt % Hp = hydrogen content in pitch, wt % Sc = sulphur content in calcined coke, wt % Ashc = ash content in calcined coke, wt % CD = carbon in skimmed dust from Soderberg cells, tonnes C/tonne Al 44/12 = CO2 molecular mass : carbon atomic mass ratio, dimensionless
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Default Emission Factors Sources: IPCC 2006
Table 4.11 DATA SOURCES AND UNCERTAINTIES FOR PARAMETERS USED IN TIER 2 OR 3 METHOD FOR CO2 EMISSIONS FROM PREBAKE CELLS (CWPB AND SWPB) , SEE EQUATION 4.21
Parameter
Tier 2 Method
Tier 3 Method
%
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Table 4.12 DATA SOURCES AND UNCERTAINTIES FOR PARAMETERS USED IN TIER 2 OR 3 METHOD FOR CO2 EMISSIONS FROM PITCH VOLATILES COMBUSTION (CWPB AND SWPB) , SEE EQUATION 4.22
Parameter
Tier 2 Method
Tier 3 Method
Table 4.13 DATA SOURCES AND UNCERTAINITIES FOR PARAMETERS IN TIER 2 OR 3 METHOD FOR CO2 EMISSIONS FROM BAKE FURNACE PACKING MATERIAL (CWPB AND SWPB), SEE EQUATION 4.23 Parameter Tier 2 Method Tier 3 Method Data Source Uncertainty Data Source Uncertainty (±%) (±%)
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Table 4.14 DATA SOURCES AND UNCERTAINITIES FOR PARAMETERS IN TIER 2 OR 3 METHOD FOR CO2 EMISSIONS FROM SODERBERG CELLS (VSS AND HSS) Parameter
Tier 2 Method Data Source
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Tier 2 Method
Data Uncertainty (±%)
Data Source
Data Uncertainty (±%)
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Direct process PFC emissions from Aluminum Production Tier
Method
Emission Factors
Slope Method: Source : IPCC Table 2006 Equation 4.26 (PFC emissions by slope method, Tier 2 and 3 method) ECF4 = SCF4 * AEM * MP and EC2F6 – ECF4 * FC2F6/CF4 Where: ECF4 = emissions of CF4 from aluminum production, kg CF 4 EC2F6 = emissions of C 2F6 from aluminum production, kg C 2F6 SCF4 = slope coefficient for CF4 (kg CF4/tonne Al)(AE-Mins/cell-day) AEM = anode effect minutes per cell-day, AE-Mins/cell-day MP
= metal production, tones Al
FC2F6/CF4 = weight fraction of FC2F6/CF4, kg C
F /kg CF 2 6 4
Over voltage Method: Source : IPCC Table 2006 Equation 4.27 (PFC emissions by Overvoltage method, Tier 2 and 3 methods) ECF4 - OVC *
AEO . MP * CE/100
and EC2F6 = ECF4 * FC2F6/CF4 Where: ECF4 = emissions of CF4 from aluminum production, kg CF 4 EC2F6 = emissions of C 2F6 from aluminum production, kg C 2F6 OVC = over voltage coefficient for CF 4 , (kg CF4/tonne Al)/mV AEO = anode effect over voltage, mV CE
= aluminum production process current efficiency expressed, percent (e.g, 95 percent)
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MP
= metal production, tonnes Al
FC2F6/CF4 = weight fraction of C2F6/CF4, kg C2F6/kg CF4 Simplified Method: Source: IPCC 2006 Equation 4.25 (PFC emissions, Tier 1 method) Where: ECF4 = emissions of CF4 from aluminum production, kg CF4 EC2F6 = emissions of C2F6 from aluminum production, kg C 2F6 EFCF4,i = default emission factor by cell technology type i for CF 4, kg CF4/tonne Al EFC2F6,i = default emission factor by cell technology type i for C 2F6, kg C2F6/tonne Al MPi
= metal production by cell technology type i, tones Al
Default Emissions Factors Source : IPCC 2006
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Table 4.16 TECHNOLOGY SPECIFIC SCOPE AND OVER VOLTAGE COEFFFICIENTS FOR THE CALCULATION OF PFC EMISSIONS FROM ALUMINUM PRODUCTION (TIER 2 METHOD) Slope Coefficient b,c [(kgPFC/t Al)/(AE Mins/cell day)]
Technology
a
CF4
Over voltage Coefficient b,c,d [(kgCF4/t Al)/(mV)]
Uncertainty (+/ %)
CF4
Uncertainty (+/ %)
Weight fraction C2F6/CF4 CF4
Uncertaint y (+/ %)
a
b c d
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References The Climate Registry. 2008. General Reporting Protocol for the Voluntary Reporting Program . Version 1.1, May 2008. Available at http://www.theclimateregistry.org/downloads/GRP.pdf Government of India, Ministry of Power, Central Electricity Authority. 2007. CO 2 Baseline Database for the Indian Power Sector, User Guide. Version 3.0, December 2007. Available at
http://www.cea.nic.in/planning/c%20and%20e/user_guide_ver3.pdf U.S. Environmental Protection Agency (USEPA). 2005. Climate Leaders Greenhouse Gas Inventory Protocol: Design Principles . Available at http://www.epa.gov/stateply/documents/resources/
design-principles.pdf World Resources Institute and World Business Council for Sustainable Development (WRI/ WBCSD). 2004. The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition). Available at http://www.ghgprotocol.org/files/ghg-protocol-revised.pdf WRI/WBCSD. 2005. The GHG Protocol for Project Accounting . Available at http:// www.ghgprotocol.org/files/ghg_project_protocol.pdf WRI/WBCSD. 2007. The Greenhouse Gas Protocol: Measuring to Manage: A Guide to Designing GHG Accounting and Reporting Programs . Available at http://www.ghgprotocol.org/files/
measuring-to-manage.pdf
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About Confederation of Indian Industry (CII)
The Confederation of Indian Industry (CII) works to create and sustain an environment conducive to the growth of industry in India, partnering industry and government alike through advisory and consultative processes. CII is a non-government, not-for-profit, industry led and industry managed organisation, playing a proactive role in India’s development process. Founded over 113 years ago, it is India’s premier business association, with a direct membership of over 7500 organisations from the private as well as public sectors, including SMEs and MNCs, and an indirect membership of over 83,000 companies from around 380 national and regional sectoral associations. CII catalyses change by working closely with government on policy issues, enhancing efficiency, competitiveness and expanding business opportunities for industry through a range of specialised services and global linkages. It also provides a platform for sectoral consensus building and networking. Major emphasis is laid on projecting a positive image of business, assisting industry to identify and execute corporate citizenship programmes. Partnerships with over 120 NGOs across the country carry forward our initiatives in integrated and inclusive development, which include health, education, livelihood, diversity management, skill development and water, to name a few. Complementing this vision, CII’s theme “India@75: The Emerging Agenda”, reflects its aspirational role to facilitate the acceleration in India’s transformation into an economically vital, technologically innovative, socially and ethically vibrant global leader by year 2022. With 63 offices in India, 8 overseas in Australia, Austria, China, France, Japan, Singapore, UK, USA and institutional partnerships with
271 counterpart organisations in 100 countries, CII
serves as a reference point for Indian industry and the international business community.
Headquarters
Confederation of Indian Industry The Mantosh Sondhi Centre
23, Institutional Area, Lodi Road, New Delhi – 110 003 (India) Tel: 91 11 24629994-7 • Fax: 91 11 24626149 Email: [email protected] • Website: www.ciionline.org
Reach us via our unique Membership Helpline: 00-91-11-435 46244 / 00 99104 46244
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About CII - Sohrabji Godrej Green Business Centre The CII – Sohrabji Godrej Green Business Centre is a joint initiative of Government of Andhra Pradesh, Godrej & Boyce Mfg Co and Confederation of Ind ian Industry (CII) with the technical support of USAID – a unique model of public-private partnership. CII – Godrej GBC is the “Centre of Excellence” for Energy, Environment & Recycling, Green Buildings, Renewable Energy and Climate change activities in India. CII – Godrej GBC has been awarded the prestigious “Platinum Rating” of the US Green Building Council. This is the first building outside USA and the third building in the world to be awarded the platinum rating.
The CII – Sohrabji Godrej Green Business Centre is a joint initiative of Government of Andhra Pradesh, Godrej & Boyce Mfg Co and Confederation of Indian Industry (CII) with the technical support of USAID – a unique model of public-private partnership. CII – Godrej GBC is the “Centre of Excellence” for Energy, Environment & Recycling, Green Buildings, Renewable Energy and Climate change activities in India. CII – Godrej GBC has been awarded the prestigious “Platinum Rating” of the US Green Building Council. This is the first building outside USA and the third building in the world to be awarded the platinum rating.
Services of GBC The following services will be offered from GBC: a) Energy Audits Introduction Energy Management Cell (EMC) of CII was formed in the year 1989 with the objective of promoting energy efficiency in the Indian industry. The cell offers services from Chennai, Chandigarh and Ahmedabad. A thirty-member technical team is involved in carrying out various activities to catalyse and facilitate energy efficiency in all sectors of the Indian industry. Range of Services
Detailed energy audits in all sectors of industry such as Cement, Paper, Chemical, Petrochemical, Copper, Zinc, Engineering, Foundry etc.
In-house and center-wise intensive training programmes on Energy Conservation (Encon)
Organising Encon Missions - visit to select energy efficient units
Technical Seminars and workshops on Energy Conservation and Management
Specific energy consumption norms for different sectors of industry
Publications related to energy efficiency and energy conservation ideas
Energy Summits
International conference-cum-exhibition on latest trends in energy efficiency
Detailed feasibility studies on cogeneration
Detailed feasibility studies on latest energy saving & environment-friendly technologies
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Achievements in a Nut Nutshell shell
850 detailed energy audits completed till date, comprising of different industrial sectors
Annual recurring savings of Rs 1950 million reported by the audited companies
Prepared unique energy efficiency manuals/ publications, such as o
Variable Speed Drives for energy efficiency
o
Energy efficiency in pumping systems
o
Reference Manual on Encon at design stage
o
Case study booklets on Encon in Cement, Paper, Sugar, Textile, Fertiliser (Urea) and Glass & Ceramic Industries
selected as the winner of the National “Best Energy Auditor Award”, CII- Godrej GBC has been selected Award” , instituted by PCRA (Petroleum Conservation Research Association, Government of India) for the Five Successive Years Green Building Services A Green building is one that is environmentally responsible, profitable and a healthy place to live and work. Green buildings ensure that waste is minimised at every stage during the construction and operation of the building resulting in low costs. Green Building applies to both existing and new constructions, from a simple commercial space to large development projects. Benefitss of Green Building Benefit Green Buildings offer a range of economic and environmental benefits:
30% to 40% reduction in operation cost
Green corporate image
Health and safety of building occupants
Enhance occupant comfort
Improve productivity of occupants
Imbibe best operational practices from day one
Incorporate latest techniques and technologies
Typical features of Green Buil Bui lding
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Sustainable sites
Water efficiency
Energy and atmosphere
Materials and resources
Indoor environmental quality
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Services offered by CII-Godrej GBC Step 1: Feasibility Feasibili ty study study The objective of feasibility study is to explore, evaluate and recommend: Methodology of achieving Green Building Rating
Benefits that can accrue
Implementation of certification process
Assessment of additional investment and time required to achieve Green Building Ratings
Step 2: Implementation Implementation of o f rating process Overall facilitation
Integration with architects, builders, HVAC and other consultants
Detailed training for the building project team
Facilitation of documentation process
Monitoring of building performance
b) Gr Gree een n Aud udit itss What is Green? Green is the voluntary pursuit of any activity that encompasses the concern for energy efficiency, environmental management, water management, renewable energy, waste management and recycling. Approach to Green The approach to Green audit is based on the premise that any pollution is a form of economic waste i.e., “Pollution = Inefficiency” The conventional approach is to look at end-of-the-pipe solutions to red reduce uce inefficiency. A proactive approach would woul d be to focus on the root cause of inefficiency inefficiency,, which in turn will open up new opportunities for resource and cost savings. The means of achieving this is through a comprehensive Green Audit . Benefits The major benefits that a company can achieve by undergoing a green audit are Resource conservation, Energy optimisation, Water conservation, Optimisation of chemical usage and Effective waste management and recycling techniques. The company also benefits tremendously by a green corporate image. image. c) IS ISO O 1400 14001 1 and and OHSA OHSAS S 1800 18001 1 Environmental Management Systems (ISO 14000) help an organisation systematically manage its environmental impacts associated with its activities, products and services and increase its operating efficiency. Environmental Management Systems can result in both business and environmental benefits. An EMS may help in:
Improved environmental performance
Enhanced compliance to statutory regulations
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Prevention of pollution
Conservation of resources
Reducing/ Mitigating risks
Attracting new customers and markets
Increased efficiency/ reduced costs
Enhanced image with public, regulators and stakeholders
Improved employee-employer relationship
OHSAS 18001 Occupational Health and Safety Management System (OHSAS) is a systematic approach to enhance organisation’s safety and health activities thus ensuring not only compliance to statutory regulations but also minimising work place hazards. Reinforcing existing operations with a comprehensive approach to OHSAS system allows an organisation to eliminate or minimise risks and achieve safer and improved efficiency. d) Wat ater er Mana Managem gement ent Servi Services ces Water Management services focus on the following:
A detailed study of water & wastewater management practices in different industries and buildings, to find opportunities for water and cost savings by performance enhancement of existing and future facilities
Integration of water management with process needs by adopting “Reduce, Re-use and Recycle” concept to achieve “Zero Discharge”
Exploring the opportunities for reducing energy and chemical consumption in water & wastewater treatment systems
Technical assistance in implementing latest water and wastewater treatment technologies
Propagating water saving equipment and devices, and Training programme on water management
e) Re Renew newab ablle Energ Energy y Servic Services es Renewable Energy being one of the vital areas for achieving sustainable development, CII – Godrej GBC is promoting green power in India. The services offered in Renewable Energy are:
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Feasibility studies of industrial renewable energy projects in wind, solar thermal and biomass sectors
Preparation of Detailed Project Reports (DPL)
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f ) Technology Centre CII-Godrej GBC, a centre of excellence in energy, environment and climate change has been awarded the most prestigious “Platinum Rating” by US Green Building Council under their LEED (Leadership in Energy and Environmental design) programme. CII-Godrej GBC invites you to be part of this success and participate at the Technology Centre, which forms an integral part of the landmark building. The Technology Centre located in the prestigious platinum rated CII-Godrej GBC building, has been launched to facilitate information disseminat ion by serving as a venue to demonstrate “Green” products and technologies. g) New Ventures India New Ventures provides management training, business advisory services, professional mentoring and access to capital and markets to small environmental-friendly businesses. As a business accelerator, New Ventures equips small business leaders with the skills needed to succeed in today’s markets. The only programme of its kind, New Ventures aligns social and environmental development with local economic growth to create a successful model for emerging economies like India. New Ventures delivers: 1. Stronger sustainable businesses: We provide mentoring and technical assistance to entrepreneurs through an extensive network of business consultants, business school students, and technical experts. Mentors help companies prepare sound business and financial plans and target new markets. New Ventures also offers general business workshops to prospective New Ventures companies and start-ups. 2.
Linkages to investors and markets: We connect entrepreneurs with potential investors through Investor Forums and other targeted investor events.
Access to the New Ventures network: Companies in India will be able to network with sister programmes in Mexico, Brazil, China, and Indonesia and take advantage of the Global office in Washington DC. In each country, we engage and partner with local institutions to generate local capacity for sustainable enterprise support and to create long-lasting support networks that are tailored specifically to entrepreneurs in that country. Profile of New Ventures Companies New Ventures India companies are seeking investment in the range of Rs.50 lacs to Rs. 25 crores. These companies are environmental enterprises operating in India in fast-growth, environmental sectors such as:
Advance Technologies for Water Management
Agriculture/Organic Products
Clean Technologies
Ecotourism/Hospitality
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Energy Efficiency/ Renewable Energy
Green Building Materials
Rapidly Renewable Materials
Resources, Recycle & Reuse
Contact Details
Confederation of Indian Industry CII – Sohrabji Godrej Green Business Centre Tel: 91-40-23112971 – 73; Fax: 91-40-23112837 Email: [email protected]; [email protected] Website: www.greenbusinesscentre.com
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About Asia - Pacific Partnership (APP )
The Asia-Pacific Partnership (APP) on Clean Development and Climate is an innovative new effort to accelerate the development and deployment of clean energy technologies. APP partners Australia, Canada, China, India Japan, Republic of Korea, and the United States have agreed to work together and with private sector partners to meet goals for energy security, national air pollution reduction, and climate change in ways that promote sustainable economic growth and poverty reduction. The Partners will also cooperate on the development, diffusion, and deployment of longerterm transformational energy technologies that will promote economic growth while enabling significant reductions in greenhouse gas intensities. In addition, the Partners will share experiences in developing and implementing our national sustainable development and energy strategies, and explore opportunities to reduce the greenhouse gas intensities of our economies. The Partnership will be consistent with and contribute to Partners ‘efforts under the UNFCCC and will complement, but not replace, the Kyoto Protocol. CII-Godrej GBC has initiated a project “Voluntary programme to promote ecologically sustainable business growth for Indian Industry,” which, in support of the goals of the AsiaPacific Partnership on Clean Development and Climate, is partially supported by the U.S. Department of State.
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About World Resources Institute (WRI)
The World Resources Institute (WRI) is an environmental think tank that goes beyond research to find practical ways to protect the earth and improve people’s lives. Their mission is to move human society to live in ways that protect Earth’s environment and its capacity to provide for the needs and aspirations of current and future generations. Because people are inspired by ideas, empowered by knowledge, and moved to change by greater understanding, WRI provides—and helps other institutions provide—objective information and practical proposals for policy and institutional change that will foster environmentally sound, socially equitable development. The Greenhouse Gas Protocol (GHG Protocol) is a decade-long partnership between WRI and the World Business Council for Sustainable Development (WBCSD). The GHG Protocol Corporate Standard is the most widely used international accounting tool for government and business leaders to understand, quantify, and manage greenhouse gas emissions. The 2007 Corporate Climate Communications Report of the Fortune 500 companies by the Corporate Register reported 63 percent of companies use the GHG Protocol. The Protocol is working with businesses, governments, and environmental groups around the world to build a new generation of credible and effective programmes for tackling climate change. It serves as the foundation for nearly every GHG standard and programme in the world - from the International Organization of Standardization to The Climate Registry, as well as hundreds of GHG inventories prepared by individual companies. The GHG Protocol also offers developing countries an internationally accepted management tool to help their businesses to compete in the global marketplace and their governments to make informed decisions about climate change.
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About USEPA Climate Leaders Programme
Climate Leaders is an USEPA industry – government partnership that provides guidance and recognition to companies developing long-term climate change strategies. Through programme participation, companies create a credible record of their accomplishments, reduce their impact on global environment and identify themselves as corporate climate leaders. Some of the fast facts about EPA Climate Leaders programme are:
172 Climate Leaders Partner Companies
50% of Climate Leaders members are Fortune 500 companies
The combined US annual GHG emissions of Climate Leaders Partners represent more than 8% of total annual US GHG emissions
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