of carbon emissions accounting

C D C D M ABCs of Carbon Emissions Accounting May Antoniette Ajero Climate Change Information Center June 19, 2003 C D C D M What is carbon emissions accounting? Carbon accounting records, summarizes and reports the quantity of carbon emissions by sources and removals by sinks as a direct result from human activities or natural processes that have been affected by human activities C D C D M Why conduct an accounting of carbon emissions? • provide information on which to build an effective strategy to manage GHG emissions • prerequisite for participation in GHG trading markets • demonstrate compliance with government regulations, if any is already in place UNFCCC Article (a) C D C D M • Develop, periodically update, publish and make available to the Conference of Parties national inventories of anthropogenic emissions by sources and removals by sinks of all greenhouse gases not controlled by the Montreal Protocol, using comparable methodologies to be agreed upon by the Conference of Parties C D C D M Why is there a need to use a standard methodology? ∗ allows comparability across all countries ∗ ensures consistency, transparency and verifiability of the inventory Development of the methodology guidelines for national GHG inventories: C D C D M •OECD Report on Estimation of GHG Emissions and Sinks (1991) • IPCC Guidelines for National GHG Inventories (1995) • Revised IPCC Guidelines for National GHG Inventories (1996) • *Good Practice Guidance and Uncertainty Management (2000) C D C D M Revised IPCC Guidelines for National GHG Inventories •…the Revised 1996 IPCC Guidelines for National Greenhouse Gas Inventories should be used as "methodologies for estimating anthropogenic emissions by sources and removals by sinks of greenhouse gases" in calculation of legally-binding targets during the first commitment period - COP3 held in 1997 in Kyoto • consists of three volumes The Reporting Instructions (Volume 1) The Workbook (Volume 2) The Reference Manual (Volume 3) C D C D M A good GHG accounting/inventory and reporting must be • relevant • complete • consistent • transparent • accurate • comparable • verifiable C D C D M Relevance - clearly defines and reflects GHG emissions of the chosen boundary and the decision making needs of the users Completeness - all GHG emission sources and activities within chosen boundaries are accounted - any specific exclusions are stated and justified C D C D M Consistency - same approach and practices in the calculation and presentation of data allows meaningful comparison of emissions performance over time Transparency - relevant issues are addressed in a factual and coherent manner based on a clear audit trail - important assumptions are disclosed - appropriate references of methods used are made The Typical IPCC Worksheet sector Source category C D C D M A EF GHG Revised 1996 IPCC Guidelines for National GHG Inventories: Workbook page 2.61 1994 Philippine GHG Inventory Results Module Industry C D C D M Submodule Cement Production Worksheet 2-1A Sheet of CO2 Emissions A Quantity of Clinker or Cement Produced (t) STEP B C Emission Factor CO2 Emitted (t) C = (A x B) 0.50 9,570,798 Tons cement produced X Tons of CO2 Tons cement produced X 4,771,042.80 Gg of CO2 10 Tons of CO2 D CO2 Emitted (Gg) D = C/103 4,771 = Gg of CO2 Prefixes, Conversion Factors and Acronyms C D C D M Revised 1996 IPCC Guidelines for National GHG Inventories: Reporting Instructions, page INTROD.4 Prefixes, Conversion Factors and Acronyms C D C D M Revised 1996 IPCC Guidelines for National GHG Inventories: Reporting Instructions, page INTROD.4 Prefixes, Conversion Factors and Acronyms C D C D M Revised 1996 IPCC Guidelines for National GHG Inventories: Reporting Instructions, page INTROD.5 Prefixes, Conversion Factors and Acronyms C D C D M Revised 1996 IPCC Guidelines for National GHG Inventories: Reporting Instructions, page INTROD.5 Emissions Reduction GHG = A x EF C D C D M To reduce the value of GHG: • lower the value of A = decreasing frequency or magnitude of activity or emission source; • lower the value of Emission factor = shifting into a more efficient technology, less carbon intensive activity; • or both at the same time Emissions Reduction C D C D M Business as usual: baseline CO2 emission Reduced emissions (CER) Project implemented Start of project End of project year Other terms used for Scenarios: C D C D M Baseline = Business as Usual (BAU scenario) = Reference Scenario = Without Project Scenario Project = Alternative Project scenario = With Project Scenario Emissions Reduction Calculations C D C D M - objective is to define reference and project scenarios and determine the net difference in GHG emissions between these two scenarios ∆GHGredn = GHGbase – GHGproj = emissions reduction due to existence of the project GHGbase = an estimation of emissions assuming that no alternative project was implemented GHGproj = measures the GHG emissions following project implementation ∆GHGredn = GHGbase– GHGproj C D C D M = (A*EF)base – (A*EF)proj *So that, in renewable energy projects wherein emission factors of the project are zero considered zero: ∆GHGredn = (A*EF)base – (A*0)proj = (A*EF)base ∆GHGredn = GHGbase * hydro, solar, wind - excludes leakage and other direct and indirect emissions CDM Eligible Projects C D C D M • • • • • Renewable energy Fuel switching End-use energy efficiency improvements Supply-side energy efficiency improvement Agriculture (reduction of CH4 & NO2 emissions) • Industrial processes (CO from cement, HFCs, etc) • Sink projects (only afforestation & reforestation) Energy Industries Sample CDM Projects and Emissions Reduction C D C D M Renewable Energy Projects (Hydro, Wind, Biomass) - lower emission factor = CO2 savings Landfill Gas to Energy Projects - capture and utilize methane from landfill; and displace fossil fuel used to generate electricity 3.=Energy Efficiency CO2 savings and Projects CH4 savings - lower electricity consumption due to more efficient equipment or appliance (lower activity data) = CO2 savings Sample CDM Projects and Emissions Reduction Calculation C D C D M Renewable Energy Projects - lower emission factor = CO2 savings Hydro – Aquarius Hydrothermal Project Wind – Burgos Wind Energy Project Hands-on Exercises: Wind – Wigton Wind Farm Project Some References for estimating CO2 emissions and emissions reduction: C D C D M • Revised IPCC Guidelines for National GHG Inventories (1996) • GHG Assessment Handbook, 1998 – World Bank • GHG Protocol – www.ghgprotocol.org • IPCC Database on Greenhouse Gas Emission Factors (EFDB) - http://www.ipccnggip.iges.or.jp/EFDB/main.php • USEPA Emission Inventory Improvement Program http://www.epa.gov/ttn/chief/eiip/techreport/volume08/index html [...]... project e.g vehicle emissions Indirect GHG emissions are emissions that are a consequence of the activities of the boundary/project e.g electricity use On-site and Off-site Emissions (geographical) emissions that take place at a project site/ emissions that result from activity elsewhere Emission Categories C D 4 C D M Upstream emissions (includes embedded/embodied) material impacts of activities that... occur before it Downstream emissions material impacts of activities that relate to the project but occur after the project activity Full cycle accounting a comprehensive accounting of all the significant emissions related to a project Emission Categories C Direct / on-site emission D 4 C Direct / off-site emission D M off-site emission Types of Emissions C D 4 C D M Who can do the accounting? • have previous... the magnitude of human activity resulting in emissions or removals taking place during a given period of time (liters of fuel consumed, etc) EF (emission factor) - a coefficient that relates the activity data to the amount of chemical compound which is the source of later emissions - Emission factors are often based on a sample of measurement data, averaged to develop a representative rate of emission... on the basics of climate change; • are proficient in basic mathematical operations; • are computer literate (i.e Excel); and preferably, • are familiar with activity or project process being accounted for carbon emissions EQUATION C D 4 C D M GHG = A x EF where, GHG = emissions (amount of CO2 or CH4, etc) A = activity data (liters of fuel, kg of cement) EF = emission factor (kg CO2/liter of fuel, kgCO2/kg... as the IPCC Guidelines) Carbon emissions C D 4 C D M • emissions of carbon dioxide, methane and nitrous oxide • in equivalent carbon dioxide units Global Warming Potential • Carbon Dioxide = 1 CO2 equivalent • Methane, CH4 = 21 CO2 equivalents • Nitrous Oxide, N2O = 310 CO2 equivalents • Other Gases – HFCs, PFCs, and SF6 = range 600 – 23900x CO2 equivalents Steps in carbon accounting: C D 4 C D M 1... level under a given set of operating conditions (amount of Base year - the year for which the inventory is to be taken C D 4 C D M Anthropogenic emissions Emissions of greenhouse gases, greenhouse gas precursors, and aerosols associated with human activities Default Method The IPCC Guidelines recommends a number of assumptions and data for use in the estimation of greenhouse gas emissions and removals... INTROD.5 Emissions Reduction GHG = A x EF C D 4 C D M To reduce the value of GHG: • lower the value of A = decreasing frequency or magnitude of activity or emission source; • lower the value of Emission factor = shifting into a more efficient technology, less carbon intensive activity; • or do both at the same time Emissions Reduction C D 4 C D M Business as usual: baseline CO2 emission Reduced emissions. .. Industry C D 4 C D M Submodule Cement Production Worksheet 2-1A Sheet 1 of 2 CO2 Emissions A Quantity of Clinker or Cement Produced (t) STEP 1 B C Emission Factor CO2 Emitted (t) C = (A x B) 0.50 9,570,798 Tons cement produced X Tons of CO2 Tons cement produced X 4,771,042.80 Gg of CO2 10 Tons of CO2 3 D CO2 Emitted (Gg) D = C/103 4,771 = Gg of CO2 Prefixes, Conversion Factors and Acronyms C D 4 C D M Revised... emission sources to be covered 3 Select an emissions calculation approach 4 Collect activity data and choose emission factors 5 Apply calculation tool to estimate emissions Levels/boundaries of accounting • organizational C D 4 C D M global national community/ project • operational (companies) • geographical • project - based C D 4 C D M Direct GHG emissions are direct emissions from activities or sources... ∆GHGredn = GHGbase – GHGproj = emissions reduction due to existence of the project GHGbase = an estimation of emissions assuming that no alternative project was implemented GHGproj = measures the GHG emissions following project implementation ∆GHGredn = GHGbase– GHGproj C D 4 C D M = (A*EF)base – (A*EF)proj *So that, in renewable energy projects wherein emission factors of the project are zero considered ...C D C D M What is carbon emissions accounting? Carbon accounting records, summarizes and reports the quantity of carbon emissions by sources and removals by sinks as... the IPCC Guidelines) Carbon emissions C D C D M • emissions of carbon dioxide, methane and nitrous oxide • in equivalent carbon dioxide units Global Warming Potential • Carbon Dioxide = CO2 equivalent... for carbon emissions EQUATION C D C D M GHG = A x EF where, GHG = emissions (amount of CO2 or CH4, etc) A = activity data (liters of fuel, kg of cement) EF = emission factor (kg CO2/liter of fuel,