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ABCs of Carbon Emissions

Accounting

May Antoniette AjeroClimate Change Information Center

June 19, 2003

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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

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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

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UNFCCC Article 4 (a)

• 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

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Why is there a need to use a standard methodology?

allows comparability across all countries

ensures consistency, transparency and verifiability of the inventory

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•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)

Development of the methodology guidelines for national GHG inventories:

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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)

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A good GHG accounting/inventory and reporting must be...

• relevant

• complete

• consistent

• transparent

• accurate

• comparable

• verifiable

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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

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Consistency- same approach and practices in

the calculation and presentation of data allows meaningful comparison of emissions performance over time.

- 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.

Transparency

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Accuracy- a credible calculation and

reporting system with the precision needed for their intended use is practiced.

- uncertainties which may arise from default assumptions and methods are kept at a minimumComparable

- methods used complies and adheres to internationally accepted methodology (such as the IPCC Guidelines)

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Carbon emissions

• 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

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Steps in carbon accounting:

1. Identify boundary/ies to be covered

2. Identify 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

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community/project

national

global

Levels/boundaries of accounting

• organizational

• operational (companies)

• geographical

• project - based

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Emission Categories

Direct GHG emissions are direct emissions from activities or

sources immediately within the set boundary / project. e.g. vehicle emissions

Indirect GHG emissions are emissions that are a consequence

of the activities of the boundary/projecte.g. electricity use

On-site and Off-site Emissions (geographical)

emissions that take place at a project site/ emissions that result from activity elsewhere

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Emission Categories

Upstream emissions (includes embedded/embodied)

material impacts of activities that relate to the project activity but occur before itDownstream 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

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Types of Emissions

Direct / off-site emission

off-site emission

Direct / on-site emission

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• have previous knowledge 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

Who can do the accounting?

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EQUATION

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 cement)

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GHG = A x EF

A (activity data) - data on 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 for a given activity level under a given set of operating conditions. (amount of Carbon/unit activity)

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Base year - the year for which the inventory is to be taken

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 primarily to provide users with a starting point from which they can develop their own.

Top-down Approach (Aggregate)- Evaluate the system from aggregate economic variables. (MACRO)

Bottom-up Approach (Disaggregated)- A modeling approach that includes technological and engineering details in the analysis. (MICRO)

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GHG = A x EFtons CO2 = tons of cement

produced x 0.4985 tons CO2/ton of cement produced

Sample Emissions Calculation: Emissions from Cement Production

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The Typical IPCC Worksheet

Revised 1996 IPCC Guidelines for National GHG Inventories: Workbook page 2.61

A EF GHG

Source categorysector

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ModuleSubmoduleWorksheet

Sheet

A B C D

Quantity of Clinker or Cement Produced (t)

Emission Factor CO2 Emitted (t)CO2 Emitted

(Gg)C = (A x B) D = C/103

9,570,798 0.50 4,771,042.80 4,771

IndustryCement Production2-1A

1 of 2 CO2 Emissions

STEP 1

1994 Philippine GHG Inventory Results

Tons cement produced X

Tons of CO2

Tons cement produced

X 103 Tons of CO2

Gg of CO2 = Gg of CO2

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Prefixes, Conversion Factors and Acronyms

Revised 1996 IPCC Guidelines for National GHG Inventories: Reporting Instructions, page INTROD.4

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Prefixes, Conversion Factors and Acronyms

Revised 1996 IPCC Guidelines for National GHG Inventories: Reporting Instructions, page INTROD.4

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Prefixes, Conversion Factors and Acronyms

Revised 1996 IPCC Guidelines for National GHG Inventories: Reporting Instructions, page INTROD.5

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Prefixes, Conversion Factors and Acronyms

Revised 1996 IPCC Guidelines for National GHG Inventories: Reporting Instructions, page INTROD.5

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GHG = A x EF

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

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Emissions Reduction

CO2 emission

year

Reduced emissions (CER)

Project implemented

Business as usual:baseline

End of project

Start of project

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Other terms used for Scenarios:

Baseline = Business as Usual (BAU scenario)

= Reference Scenario

= Without Project Scenario

Project = Alternative Project scenario

= With Project Scenario

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Emissions Reduction Calculations

- 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

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GHGredn = GHGbase– GHGproj

= (A*EF)base – (A*EF)proj

*So that, in renewable energy projects wherein emission factors of the project are 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

zero

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CDM Eligible Projects

• Renewable energy• Fuel switching• End-use energy efficiency improvements• Supply-side energy efficiency

improvement

• Agriculture (reduction of CH4 & NO2 emissions)

• Industrial processes (CO2 from cement, HFCs, etc)

• Sink projects (only afforestation & reforestation)

Energy Industries

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Sample CDM Projects and Emissions Reduction

1. Renewable Energy Projects (Hydro, Wind, Biomass) - lower emission factor = CO2 savings

3. Energy Efficiency Projects

- lower electricity consumption due to more efficient equipment or appliance (lower activity data) = CO2 savings

2. Landfill Gas to Energy Projects - capture and utilize methane from landfill; and displace fossil fuel used to generate electricity = CO2 savings and CH4 savings

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Sample CDM Projects and Emissions Reduction Calculation

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

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Some References for estimating CO2 emissions and emissions reduction:

• 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.ipcc-nggip.iges.or.jp/EFDB/main.php

• USEPA Emission Inventory Improvement Program http://www.epa.gov/ttn/chief/eiip/techreport/volume08/index.html

• PROBASE (forestry) http://e-serem.epu.ntua.gr/