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Measuring and Managing CO 2 Emissions of European Chemical Transport Professor Alan McKinnon Dr Maja Piecyk Logistics Research Centre Heriot-Watt University EDINBURGH, UK Report prepared for

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Measuring and Managing CO2 Emissions

of European Chemical Transport

Professor Alan McKinnonDr Maja Piecyk

Logistics Research CentreHeriot-Watt UniversityEDINBURGH, UK

Report prepared for

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For electronic version of this report, see www.cefic.org

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Contents

Foreword 2

ExecutiveSummary 3

1.Introduction 4

2.MeasurementofCO2Emissions 5 2.1Settingobjectivesforcarbonmeasurement 5 2.2Selectingmethodsofcalculation 5 2.3Definingboundaries 6 2.4Factorsaffectingthechoiceofemissionfactors 9 2.5ReviewofEuropeandatasourcesonfreightemissionfactors 13 2.6Characteristicsofchemicaltransportoperations 14 2.7Averageemissionfactorsforthemovementofchemicalsbythedifferenttransportmodes 16 2.8Recommendedaverageemissionfactorsforchemicaltransportoperations 20

3.MeasurementofTransport-relatedCO2EmissionsinotherSectors 21

4.OpportunitiesforDecarbonisingChemicalTransportOperations 25 4.1Modalsplit 26 4.2Supplychainstructure 27 4.3Vehicleutilisation 27 4.4Fuelefficiency 29 4.5Carbonintensityoffuel 30

5.CostEffectivenessofDecarbonisationMeasures 31

6.Conclusion 34

Biographies 36

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Foreword

Climatechangeisoneofthebiggestchallengesfac-ingindustries,governmentsandsociety.

Policymakersandindustrysectorsacrosstheworldareworkingtounderstandtheirownroleandrequiredactions.Individualchemicalcompaniesarealreadydoingalotofworkintheareaofenergyefficiencyandinnovation,recognisingenvironmentalperformance–alongsidehealth,safetyandsecurity–asessentialforbusinesssuccess.

Thechemicalindustryisuniquelyplacedtoenableenergysavingsandreducegreenhousegasemissionsthroughtheapplicationofourproducts,forexamplebuildinginsulationandlow-temperaturedetergents.TheEuropeanchemicalindustryhasanexcellenttrackrecordovermanydecadesofimprovingenergyefficiencyatitsmanufacturingsites.

Toidentifyhowwecanimprovetheperformanceofthelogisticsoperationsofthechemicalindustry,wemustfirstunderstanditscurrentcarbonfootprint.Bydevelopingacommonunderstandingofhowtocal-culatethis,alongwithrelatedissuesandchallenges,individualcompanieswillbeabletoassessthemselvesinawaythatiscomparableacrosstheindustry.

InthisReport,ProfessorAlanMcKinnonandDrMajaPiecykassessarangeofexistingtoolsandtheoriesoncarbonfootprinting.Theirreviewofavailableliteratureillustratesthenumerousapproachesandassumptionsinthisarea.McKinnonandPiecykalsolookatthelessonsthatcanbelearntfromwhatotherindustriesaredoing.

Althoughthereisnodefinitivemethodologyoncalculatingcarbonemissionsatpresent,thereportprovidesclearguidanceinkeyareas.

Bytakingacloserlookattheoperationsofsomeofthelargerchemicalcompanies,McKinnonandPiecykareabletostarttobuildapictureofcurrentCO2emissionsofthevarioustransportmodes.Finally,theyconsidersomeofthepotentialdecarbonisationmeasuresavailabletothechemicalindustryandthepossiblechallengesthatneedtobeovercometoachievethese.

ThisReportrepresentsthefirststeptounderstand-inghowwecanassessandimproveouroperations.Incommissioningthiswork,thechemicalindustryistakingaproactiveroleinimprovingthemeasurementandmanagementoftransport-relatedcarbonemis-sionsaspartofitscontinuingcommitmenttosafe,efficientandsustainablelogistics.

Jack EggelsChairman

Cefic Strategy Implementation Group Logistics

Cefic - European Chemical Industry Council

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Executive Summary

Thisreportexaminestheoptionsformeasuringandreducingcarbondioxide(CO2)emissionsfromtransportingchemicalsproducedinEurope.Itisbasedonareviewofliterature,theresultsofapreliminarysurveyoflargechemicalcompaniesundertakenbyCefic,interviewswithseniorlogisticsmanagersinthechemicalindustryandahigh-levelworkshoponthesubjectconvenedbyCefic.Thestudyalsoinvestigatedthemeasurementofcarbonemissionsfromtransportinotherindustrialsectorstoseewhatlessons,ifany,canbelearnedbychemicalcompanies.

Thereportbeginsbyconsideringthereasonswhycompaniesneedtocarbonfootprinttheirtransportoperations.Itthendiscussesaseriesofkeyissuesthatmustberesolvedwhendesigningacarbonmeasure-mentsystemforfreighttransport.Theseincludethechoiceofapproach(eitherenergy-basedoractivity-based),thedefinitionofcorporate,functional,systemandgeographicalboundariesaroundthelogisticssystemtobeaudited,thetypesofgreenhousegas(GHG)andtransportmodestobeincludedinthecalculation,thedegreeofanalyticaldisaggregationandassumptionstomadeabouttheallocationofemissionsfromtheemptyrepositioningofvehiclesandcontainers.

Wethenreviewthepublisheddata,atbothEuropeanandnationallevels,oncarbonemissionfactorsforthevarioustransportmodesusedbychemicalcompa-nies.Arangeofvaluesexistforeachmodereflectingdifferencesinprimarydatasourcesandassumptionsaboutvehicleloadfactors,fuelefficiencyandtypeofenergy(forelectrifiedrailfreightservices).Tableshavebeencompiledtoshowtherangeofvaluesreportedinpublishedreportsanddata-sets.Aseriesofaver-ageemissionfactorsarethenrecommendedforthemovementofchemicalsbyeachofthetransportmodes,takingaccountoftheparticularcharacter-isticsofchemicallogistics.Inthecaseoftrucking,thedominantmodeofchemicaltransport,matricesarepresentedtoshowhowtheaverageemissionfactorsvarywiththeweight-basedloadingfactorandpercentageofemptyrunning.Giventhediversityofwaterbornefreightservices,separateaverageemis-sionfactorsareprovidedfordifferenttypesofshort-seaanddeep-seaoperations.Mode-specificemissionfactorshavebeencombinedtoderivecompositeemissionfactorsforinter-modalfreightservices.

AstheEuropeanchemicalindustryisnotaloneintryingtocarbonfootprintitstransportoperations,acomparisonhasbeenmadeofsimilarinitiativesinnineothersectors:cement,fertiliser,steel,metalcans,bitumen,wineandspirits,food,paperandboard/packagingandpostalservices.Severalofthesesectors,suchasfertiliser,packagingandwinesandspirits,havegonethroughasimilarprocesstotheEuropeanchemicalindustryinadoptinganactivity-basedapproachtothecarbonfootprintingoftransport.

Overall,however,thechemicalindustryappearstobeoneofthemostprogressivesectorsinitsmeasure-mentoftransport-relatedemissions.

Havingmeasuredtheseemissions,thenextstageisforcompaniestodevelopstrategiesforreducingthem.Theremainderofthereportexaminesarangeofdecarbonisationmeasuresforchemicaltransportoperationswithina‘greenlogistics’framework.Thisframeworkfocusesattentiononfivekeyparameters:freightmodalsplit,supplychainstructure(i.e.num-berandlengthoflinksinthesupplychain),vehicleutilisation,energyefficiencyandthecarbonintensityoftheenergysource.Opportunitiesforalteringeachoftheseparametersisassessed.Considerationisalsogiventothegeneralcost-effectivenessofthesede-carbonisationmeasures.Availabledatasuggeststhatmostofthemeasureswhichcutcarbonemissionsalsoreducecostsandproveself-financingintheshorttomediumterm.

Theconcludingsectionshowshow,astheavailabilityofdataonenergyuse,loadfactorsandconsignmentroutingincreases,themeasurementofcarbonemis-sionsfromchemicaltransportcanevolvefromthecurrentactivity-basedapproachtoamoreaccurateandflexibleenergy-basedapproach.

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Tomeettheambitiouscarbonreductiontargetsthatgovernmentsarenowsettingfor2020andbeyond,individualcompaniesandindustrysectorswillhavetoimplementdecarbonisationstrategiesoverthenextfewyears.Thelongerthatittakesthemtogetontoanappropriatecarbonreductiontrajectory,theharderitwillbetoreachthetargets.Manyindustrysectorsandcompaniesarestillatanearlystageinthispro-cess,analysingtheirgreenhousegas(GHG)emissionsandexploringoptionsforreducingthem.Astheoldbusinessmantrastates,‘ifyoucan’tmeasureityoucan’tmanageit’andsothelogicalplacetostartiswithdetailedmeasurementofGHGemissions.

Effortshavebeenmadeinternationallytostandardisethemeasurementandreportingoftheseemissionsinordertoensurecomparability.Atpresentthereisnosingleagreedstandard,thoughthetwomainstan-dardsdevelopedbytheWorldBusinessCouncilonSustainableDevelopment/WorldResourcesInstitute(2004)(theGreenhouseGasProtocol)andInterna-tionalStandardsOrganisation(ISO14064)arebroadlysimilar.Bothsetoutguidelinesforthecarbonaudit-ingofindividualbusinessesandprovideadviceonthescopingofthecalculation,datacollectionmethodsandtheallocationofemissions.Neither,however,providedetailedguidanceonhowcarbonemissionsfromspecificactivities,suchastransport,shouldbemeasured.AseparateinitiativebyCEN,theEuropeanstandardsorganisation,iscurrentlydevelopingandagreeingstandardsforthemeasurementofGHGemissionsfromtransport,butthisprocessisunlikelytobecompleteduntilthemiddleof2012.

Inthemeantime,companiesandindustrybodiescanobtainadviceonthecarbonauditingoftransportoperationsfromgovernmentdepartments/agen-cies,suchasDEFRAintheUKandADEMEinFrance,andnationalstandardsbodies,suchastheBritishStandardsInstitutionandtheFrenchAFNOR.Intheabsenceofagreedmeasurementstandards,however,thereisadangerthatindividualsectorswilladoptstandardsandproceduresthatproduceinconsistentresults.OnepurposeofthisreportistoexaminethewaysinwhichcarbonemissionsfromfreighttransportarebeingmeasuredinEuropeand,onthatbasis,recommendacarbonfootprintingprocedureforchemicaltransportoperations.

Cefichasrecentlyconductedasurveywhichcollecteddataontonnagesanddistancesmovedbydifferenttransportmodesandpermittedthecalculationofag-gregatefiguresforCO2emissions.Thisinitialexercisehashighlightedtheproblemsofchoosingsuitableemissionfactorsforthevarioustransportmodes.Thepresentstudyaimstoachievethreemajorobjectives:

• ProvideadviceonmeasuringthecarbonfootprintofEuropeanchemicaltransport,inparticularonthechoiceofappropriateaveragecarbonemissionfactorsforthedifferentmodesoftransport

• Reviewsimilarinitiativesinotherindustrialsectorstoseeiftherearelessonstolearned

• IdentifymajoropportunitiesforreducingthecarbonfootprintofEuropeanchemicaltransportoperations

1. Introduction

Inundertakingthisstudywehavereviewedrelevantpublishedliterature,datasetsandwebsites.AllthemainestimatesofcarbonemissionfactorsforEuro-peanfreighttransporthavebeencompared.Insomecaseshypotheticalvalueshavebeeninsertedintoon-linecarboncalculators,simulatingfreightmovementsthatwouldbetypicalofthechemicalindustry.Togainadeeperinsightintochemicaltransportoperationsandthepracticalproblemsofcollectingemissions-relateddataandopportunitiesfordecarbonisation,wehaveconductedtelephoneinterviewswithseniorlogisticsmanagersinlargechemicalcompanies.AworkshopwasalsoheldatCefic’sofficesinBrus-selstodiscussanearlierdraftofthisreport,whichwasattendedbylogisticsmanagersfromchemicalcompanies.Inthisreportprimarydatacollectedfromtheinterviewsandthisworkshophasbeenintegratedwithsecondary,publisheddataobtainedfromothersources.

Inassessingtherangeofmeasuresthatcanbeap-pliedtocutCO2emissionsfromchemicaltransport,wehaveadoptedananalyticalframeworkdevelopedinthecourseofaUKuniversityresearchprojectcalledGreenLogistics1.

Sections2and3ofthereportdealwithcarbonmeasurementissues,whilesection4concentratesonpossiblecarbonreductionoptionsforEuropeanchemicaltransport.

1 Moredetailsofthisresearchprojectcanbefoundatwww.greenlogistics.org.

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2 CarbonTrust(2007)‘CarbonFootprintsintheSupplyChain:theNextStepsforBusiness’London.

3 Piecyk,M.‘CarbonAuditingofCompanies,SupplyChainsandProducts’inMcKinnon,A.C.etal(eds)(2010)‘GreenLogistics’,KoganPage,London.

2. Measurement of CO2 Emissions

TheUKCarbonTrust2hasrecommendedafivestepprocedureforthemeasurementandreportingofcarbonemissionsfrombusinesses(Figure 1).Inthissectionwewilldiscusseachofthesestepsastheyrelatetochemicaltransportoperations.

FIGURE1

CarbonMeasurementProcess(adaptedfromtheCarbonTrust,2007)

2.1Settingobjectivesforcarbonmeasurement

Itisimportantforacompanyorindustrytoestablishattheoutsetwhytheyaremeasuringcarbonemis-sionsbecausetheanswertothisquestionlargelydeterminestherequireddegreesofcoverage,ac-curacyanddisaggregation.Thereareseveralpossiblereasons,someexternaltothebusinessandothersyieldinginternalbenefits:

Externalfactors

1.Legalobligation:insectorscoveredbytheEuropeanEmissionsTradingScheme(ETS)ornationalcarbontaxation/levyschemes,carbonmeasurementiscompulsory.Whiletheproduc-tionactivitiesofchemicalcompaniesarecurrentlycoveredbytheseschemes,transportandlogisticsoperationsarestillexcluded.(AirtransportwillbeincludedintheETSin2012,thoughchemicalcom-paniessendonlyatinyproportionoftheirfreightbythismode.)

2.Customerrequest:industrialcustomerscanaskforestimatesoftheamountofcarbon‘embedded’intheproductstheybuy.Thisisbeginningtohappenintheretailgrocerysector,thoughisstilluncom-moninthechemicalindustry.

3.Corporatesocialresponsibility:carbonauditingandreportingisbecomingakeyaspectofCSR.

4.Participationinindustry-widesurveysandbench-markingexercises:industrysectorsarekeentodemonstrateandimprovetheir‘carboncredentials’.

Internalmotives

5.Identifyingopportunitiesforcuttingcarbonandimprovingefficiency

6.Assessingthecarbonimpactoflogisticsdecisionsandinvestments

7.Measuringchangesincarbonemissionsthroughtime

2.2Selectingmethodsofcalculation

TherearebasicallytwoapproachestotheestimationofCO2emissionsfromfreighttransportoperations:onebasedonenergyconsumptionandtheotherontheleveloftransportactivity3.

Energy-basedapproach:sincealmostallCO2emis-sionsfromfreighttransportareenergy-related,thesimplestandmostaccuratewayofcalculatingtheseemissionsistorecordenergyuseandemploystan-dardemissionfactorstoconvertenergyvaluesintoCO2.Theunitofenergywilltypicallybelitresoffuelfortrucks,diesel-hauledtrains,bargesandships,andkilowatthoursforelectrifiedrailandpipeline.Forcarriersandcompanieswithinhousetransport

STEP5Verification and reporting

STEP4Calculation

STEP3Data collection and choice

of emission factors

STEP 2

Selecting calculation approach and defining boundaries

STEP1Setting objectives

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operations,whichhavedirectaccesstotheenergydata,theenergy-basedapproachisclearlyprefer-able.AsmosttransportoperationsintheEuropeanchemicalindustryareoutsourced,however,shipperslackdirectaccesstothisenergydata.Somechemicalcompanieshaveaskedforthisdataandreceivedes-timatesofaveragefuelefficiencyfromtheircarriers.Noevidencehasbeenfoundofcarriersprovidingfuelconsumptiondataonajourney-by-journeybasisforchemicalflows.Theissueofobtainingfueldatafromcarriersismorefullydiscussedinasection4.4.

Activity-basedapproach:Intheabsenceofenergydata,itispossibletomakearoughestimateofthecarbonfootprintofatransportoperationbyapplyingasimpleformula:

CO2=tonnestransportedxaveragedistancetrav-elledxCO2emissionsfactorpertonne-km

Companyrecords,ERPsystemsanddeliverymanifestscanprovidethenecessarydataontonnagesmoved.Forroadmovements,estimatesofaveragelengthofhaulcanalsobebasedondatafromthesesources.Ifnecessary,softwarepackagessuchasMapPointandAutoroutecanbeappliedtolistsofcustomerloca-tionstoestimateroaddistances.Obtainingdistancedataforrailandwater-bornetransportcanbemoreproblematic,thoughtheEcoTransitonlineenviron-mentalassessmenttoolcanbeusedforthispurpose.Inthecaseofintermodaltransport,shippersoftendonotknowtheroutefollowedorthedistancesplitbetweendifferenttransportmodes.Theyusuallyrely

oncarrierstoprovidethisinformation,thoughtheEcoTransittool4providesapproximateroutinganddis-tancedataforintermodalflowsspecifiedbytheuser.

Oneofthemostdifficultissuestoresolveinapplyingtheactivity-basedapproachisthechoiceofcarbonemissionfactorsforeachmode.ThesearegenerallyexpressedasgrammesofCO2pertonne-km.Thisweight-basedmeasurementofemissionfactorsiswellsuitedtothechemicalindustryasitsproductshavearelativelyhighdensityandcausevehiclesto‘weighout’beforethey‘cubeout’.Asaconse-quence,vehicleloadfactorsinthechemicalindustryaregenerallymeasuredinweightterms.

Oneofthechemicalcompaniesconsultedhadobtainedfuelconsumptiondatafromsomeofitscar-riersandmanagedtoderiveitsownsetofemissionfactors.Nogeneralemissionfactors,however,havesofarbeencalculatedforchemicaltransportasawhole.Itisnecessarytorely,therefore,onthenumer-ousstudiesthathavebeenundertakeninEuropeoverthepastdecadetoestimateemissionfactorsforthegeneralmovementoffreightbydifferentmodes.Theyarereviewedinsection2.5.

2.3Definingboundaries

Fourtypesofboundarymustbedrawnaroundthetransportsystemtodelimittheextentofthecalcula-tion:corporate,functional,systemandgeographicalboundaries.

2.3.1Corporateboundary

Thisdeterminesthedivisionofresponsibilityforcar-bonemissionsbetweenthecompanyanditssuppli-ers,customersandcarriers.Thelineshouldbedrawninawaythatminimisesdouble-countingandallo-catesresponsibilitytotheentitythathasthegreatestcontrolovertheemissions.Thisusuallyreflectstheallocationoffinancialresponsibility.WhoeverpaysfortheactivityshouldbeassignedtherelatedCO2emis-sions.Forcompaniestakingownershipofthegoods,thedeliverytermsprovideasolidcommercialandle-galbasisforallocatingthetransportemissions.Wherethefinishedproductissoldonadeliveredpricebasis,theshipperwillberesponsiblefortheseemissionsasfarasthecustomer’spremises.If,ontheotherhand,ashappenswitharound20-30%ofchemicalsales,thecustomerarrangescollectionfromtheplant,hemustassumeresponsibilityforthetransportCO2.

Thesituationwithcarriersismorecomplicatedandrequiresjudgementandnegotiation.Wheretrans-portisoutsourced,theemissionsfallintowhattheGreenhouseGasProtocolcallsScope3,i.e.emissionsfromactivitiesperformedbyothercompaniesonyourbehalf.ItisnowconsideredgoodpracticeforbusinessestocounttheseScope3emissionsaspart

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oftheircarbonfootprint.Thereremainssomedebate,however,overtheallocationofacarrier’semissionsbetweenitsclients.Whereachemicalcompanydes-patchesafullloadofproduct,itwouldbeallocatedalltheemissionsfromthisoutboundjourneyleg.Asalargeproportionofoutbounddeliveriesinthechemicalindustryfallintothiscategory,thismakestheallocationrelativelystraightforward.Moreconten-tiousistherepositioningofemptyvehiclestocollectconsignmentsofchemicals.Broadlyspeakingonecantaketwoviewsonthisissue:

1.Itistheresponsibilityofthecarriertofindreturnloadsforitsvehicles.Thisgivesitacommercialincentivetofindabackload.Manycarriersarereluctanttodivulgeinformationaboutemptyrun-ningandreturnloading,onthegroundsthatthiswouldweakentheircommercialpositioninnego-tiations.Ifitisassumedthatitisthecarrier’sjobtomaximisebackloadingandthathewillnotdisclosethelevelofemptyrunning,itseemslogicalthatheshouldtakeresponsibilityforrelatedemissions.Thecarrier,afterall,hasmuchmorecontrolovertheuseofbackhaulcapacitythantheshipper.

2.Therepositioningofemptyvehiclesisanintegralpartofthetransportserviceprovidedbyacarrier.Theshipperindirectlypaysfortheemptylegsaspartoftheratethecarrierchargesand,hence,itshouldacceptatleastsomeoftheresponsibilityfortherelatedcarbonemissions.Mostofthepub-lishedemissionfactorsforroadfreightalsomakeanallowanceforemptyrunning.

Discussionswithlogisticsmanagersinthechemicalandotherindustriesindicatethatthefirstpropositioncommandsagooddealofsupport.However,asasignificantamountofemptyrunningisinevitableandattributabletotheoutbounddeliveryofchemicals,itseemsreasonablethatchemicalcompaniesshouldassumesomeresponsibilityforcarbonemissionsfromemptyjourneylegs.Intheestimationofemissionfac-torsforroadtransportinSection2.4,therefore,theeffectsofdifferinglevelsofemptyrunningonroademissionfactorsweremodelled.

2.3.2Functionalboundary

Boundariesmustalsobedrawninternallytodefinethescopeofthetransportcalculation.Inthecaseofchemicallogisticstherearetwoareaswherethisisparticularlysignificant:

Internalsupplychain:thereisunanimousagree-mentthatoutbounddeliverytocustomersandinter-planttransfersshouldbeincludedinthecalculationandthatthemovementofmaterialsontheproduc-tionsitebeexcluded.On-sitetransportisconsideredpartoftheproductionprocess.Opinionsdifferonwhetherinboundflowsofmaterialsshouldliewithinthescopeofthecalculation.Theeasiestwayofdeal-ingwiththisissueistoapplytherulediscussedaboveunderthecorporateboundaryheading(section2.3.1)i.e.ifthecompanytakesresponsibilityforcollectinginboundsupplies(i.e.buysthemonanexworksbasisandpaysforthetransport)thentheyshouldalsoas-sumeresponsibilityfortherelatedcarbonemissions.

Relatedlogisticsactivities:shouldthecalcula-tionincludeemissionsfromwarehousing,materialshandlingoperations,tankcleaningetctopermitmorecomprehensivecarbonfootprintingoflogisticsasawhole?Forexample,usingdataprovidedbyamajortankcleaningcompany,weestimatethattheCO2emissionsassociatedwiththisprocessrepresentaround5-7%oftheaverageCO2emissionsfromaroadshipmentofchemicals.Onemajorbenefitofadoptingabroaderapproachisthatitexposescarbontrade-offsinthemanagementoftheseinter-relatedlogisticalactivities.Decarbonisationeffortscouldthenbemoreeffectivelyco-ordinatedacrosstheentirelogisticsfunction.Whilethiswouldbeaworthwhilegoalinthemediumterm,thepriorityatpresentliesinrefiningcarbonmeasurementofthetransportfunction.

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2.3.3Systemboundary

TheSwedishenvironmentalorganisation,NTM,hasdifferentiatedfivelevelsofsystemboundarythatcanbedrawnaroundatransportoperationandlabelledthemSB1-SB5(Figure 2).Theselevelsarecumulative:

SB1:confinesthecalculationtoemissionsfromtheactualtransportoperation,mostofwhichemanatefromthevehicleexhaust,thoughinthecaseofelec-trifiedrailfreightoperationsincludeemissionsfromtheelectricalpowersource.

SB2:alsotakesaccountoftheextraction,production,refining,generationanddistributionofenergy,takingaso-called‘well-to-tank’perspective.

SB3:alsoincludestheservicingandmaintenanceofvehiclesandtransportinfrastructure

SB4:broadensthescopeevenfurthertoincludeemissionsfromthemanufactureofthevehicles,constructionoftransportinfrastructureandtheirsubsequentscrappageanddismantling.

SB5:alsoincludesemissionsassociatedwiththeman-agementoftransportoperations,essentiallyofficefunctionsandtheactivitiesofstaff.

ItmaybealongtermaspirationtoadopttheSB5levelofauditing,butatpresentmostmeasure-mentofcarbonemissionsfromfreighttransportisconductedattheSB1level.Someorganisationshavecompiledemissionfactorsthatembracelevels

FIGURE2

SystemBoundariesaroundTransportOperationsforCarbonMeasurement(source:NTM)

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SB5Administrative functions, personnel, etc

SB2Energy supply (well-to-tank / power plant)

SB1Traffic operations - propulsion (engines / power plant) - evaporation and battery losses - cargo climate control

SB4Vehicle / train / vessel / aircraft - constructionandscrappingTrafficinfrastructureandtransportinfrastructure - construction and dismantlingServiceandmaintenanceinfrastructure-constructionanddismantling

SB3Vehicle / train / vessel / aircraft - service and maintenanceTraffic infrastructure - operation and maintenance Transport infrastructure (terminals) - operation (incl. energy supply and maintenance)

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SB2andSB3forsometransportmodes.Itmightbepossible,therefore,tomakeroughestimatesofthecarbonfootprintofchemicaltransportatlevelsSB1,SB2andSB3,thoughthefocusofthisreportwillbeonemissionswithinSB1.

Itisimportanttoapplythesystemboundarylevelconsistentlyacrosstransportmodes.Forexample,itisessentialtoincludeemissionsfromthegenerationofelectricityforelectrifiedrailfreightoperations.AttheSB1level,onlydirectemissionsfromtheelectricalgeneratingplantareincludedandcanbecomparedwithfuelburnedbynon-electricvehicles.

2.3.4Geographicalboundary

TheEuropeanchemicalindustryservesaglobalmarketandmuchofitsexportvolumeissoldonadeliveredpriceor‘costinsurancefreight’(cif)basis,makingthecompaniesresponsiblefortransportatleastasfarastheforeignportofentry.WhilethemainfocusofthecarbonmeasurementexerciseisontransportoperationswithinEurope,allowanceisalsomadeforemissionsfromtheexportofchemicalsbydeep-seavesselsand,toamuchlesserextent,airfreight.

2.4Factorsaffectingthechoiceofemissionfactors

Severalissueshavetoberesolvedinchoosingappropri-ateemissionfactorsforchemicaltransportoperations:

a)Greenhousegasestobeincludedb)Transportmodestobecoveredc) Degreeofdisaggregationbytypeofvehicle

andpowersourced)Energysupplychaine)Assumptionsaboutvehicleloadfactors

andemptyrunningf) Natureoftheproductg)Logisticaloperationsatdifferinglevels

inthechemicalsupplychainh)Geographicalvariability

2.4.1Greenhousegases

CO2isestimatedtoaccountforaround93-95%oftotalGHGpotentialofemissionsfromfreighttransport.Nitrousoxideandrefrigerantgasesmakeupmostoftheremainder.Asfewifanychemicalconsignmentsrequiretemperature-control,theCO2shareoftotalGHGemissionfromchemicaltransportislikelytobeevencloserto100%.Furthermore,mostofthepublishedemissionfactorsforfreightareexpressedsolelyintermsofCO2

5.ItisrecommendedthereforethatthecarbonfootprintingofchemicaltransportalsobeconfinedtoCO2.

2.4.2Transportmodes

EmissionfactorswillberequiredforthemainmodesoffreighttransportusedtomovechemicalsinEurope:

• Road• Rail• Inlandwaterway/barge• Short-seashipping:bulk,tanker,

ro-roferry,container• Deep-seashipping• Pipeline• Air

Althoughonlyatinyproportionofchemicalconsign-mentsmovebyair,theytravellongdistancesbythismodeandairfreightserviceshaveacarbonintensityaroundtentimesthatofroadhaulage.

Itispossibletocalculatecompositeemissionfactorsforintermodaltransportbyweightingmode-specificfactorswithestimatesofthedistancestravelledbyeachmode.Whilethiscanbedoneforindividualflowsonparticularroutesusingonlinetools(suchasEcoTransit),nopublisheddataareavailableonthedistancesplitbetweenmodesthatwouldberequiredtocalculateaverageemissionfactorsfordifferentintermodalcombinationsataEuropeanlevel.Averagevaluesforthisdistancesplithavehadtobeestimated.

5 ADEMEquotetheiremissionfactorsingCO2equivalent.

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2.4.3Degreeofdisaggregationbyvehicletypeandpowersource

Onecaneitheruseaveragevaluesforeachofthemainmodesordisaggregatethembyvehicletypeandpowersource.Theavailabledatasetsvaryintheextenttowhichtheydisaggregateemissionfactorsandintheclassificationstheyuse.Themodeofferingthegreatestdegreeofdisaggregationbyvehicletypeisroad.Thisisfortunateaschemicalsarepredomi-nantlymovedbyroad.Itispossibletodifferentiatethecarbonintensityofheavyarticulatedtrucks,whichaccountforalargeproportionofthetotalmovementofchemicalsinEurope.

Muchlessdisaggregationispossibleforrailfreightoperations.Themaindistinctionisbetweenelectri-fiedanddiesel-hauledfreighttrains,withtheformerfurthersub-dividedtotakeaccountofwidediffer-encesinthecarbonintensityofthevariousformsofelectricitygeneration.Whileitispossibletoobtainarangeofemissionfactorsforthesedifferentrailfreightenergycategories,itisverydifficulttoapplytheminpracticeasrailcompaniesandintermodaloperatorsdonotprovideshipperswithabreakdownofthedistancetravelledortonne-kmsmovedusingdiffer-entpowersources.Untilthisinformationisroutinelyprovided,chemicalcompanieshavelittlechoicebuttouseemissionfactorsforrailfreightthatreflecttheaveragediesel/electrictractionsplitforfreighttrainsandaveragemixofelectricalpowersources.

Thereisalsolimiteddifferentiationofvesselsmovingfreightontheinlandwaterwaynetworkorbysea.Inthecaseofmaritimeoperations,thegrossweightofthevesselisakeydeterminantoftheemissionfactor.Somedatabasescontainindicativeemissionfactorsforvesselsofdifferinggrossweights.

2.4.4Energysupplychain

Asdiscussedabove,oneofthemaindecisionsthatmustbemadeinanycarbonmeasuringexerciseiswhetherornottoincludeemissionsfromtheextraction,productionanddistributionofenergy,inotherwordswhetherthecalculationsshouldbedoneona‘well-to-wheel’basisoronlytakeaccountofemissionsatthepointofenergyconsumptiononthevehicle(‘tank-to-wheel’).Theemissionfactorsquotedinthisreportrelatesolelytofuelconsumptiononboardthevehicle,exceptinthecaseofelectrifiedrailfreightoperationswhereemissionsfromthegen-erationofelectricityinpowerplantsisincluded.

2.4.5Assumptionsaboutvehicleloadingandemptyrunning

Averagecarbonemissionfactorsareverysensitivetotheseassumptions.ThisisillustratedbyFigure 3whichshowshowtheemissionfactorsforthemove-mentoffreightina44tonnetruck(witha380brakehorsepowertractorunit)haveanegativeexponentialrelationshipwithpayloadweight.ThecalculationisbasedondatacollectedbyCoyle6invehicletrialsfor

theUKgovernmenttomonitortheeffectsofpayloadonthefuelefficiencyoftrucks.Overthepayloadrange1-10tonnesthereisadramaticreductioninthecarbonemissionfactor.ThereaftertherateofreductionisrelativelygentleasthecurvebecomesasymptotictotheX-axis.Figure 4magnifiesthelowersectionofthecurveandshowshow,evenacrossthisflattersection,modestchangesinpayloadcanhaveasignificantimpactontheemissionfactor.Increasingtheloadfrom20to26tonne,forexample,reducesthegCO2pertonne-kmfrom48to41.5.Noallowanceismadeinthiscalculationfortheemptyrunningofthetruck.Table 1addsanextradimen-siontothecalculationandshowshowvaryinglevelsofemptyrunningaffecttheemissionfactor.Foragivenpayloadontheladensectionofthejourney,thelevelofemptyrunningcanhaveamarkedeffectontheemissionfactor.Forexample,foranaveragepay-loadof26tonnesontheladensection,theemissionfactorcanvaryfrom41.5gCO2pertonne-kmwithnoemptyrunningto68.6gCO2pertonne-kmwhen40%ofthekilometresarerunempty.

Itismucheasiertoassesstheeffectsofvehicleload-ingonemissionfactorsintheroadfreightsectorthanitisforothertransportmodes.Thisispartlybecausemuchlessresearchhasbeendoneontherelationshipbetweenloading,energyuseandemissionsinthecaseofthesemodes,butalsobecauseshippersoftenhavelittleknowledgeoftheutilisationoffreighttrains,bargesandships.Itispossibleforthemtomonitortheloadingoftrucksaswellasdedicatedtrainsandbargesleavingtheirsites.Wherechemicalcompanies’consignmentsaregroupedwiththoseof

6 M.Coyle(2007)‘EffectsofPayloadontheFuelConsumptionofTrucks’DepartmentforTransport,London.

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FIGURE3

RelationshipbetweenCarbonEmissionFactorandTruckLoadintonnes(fullrange)TABLE1

CarbonEmissionFactors(gCO2/tonne-km)for40-44tonneTruckwithVaryingPayloadsandLevelsofEmptyRunning

FIGURE4

RelationshipbetweenCarbonEmissionFactorandTruckLoad(10-29tonnes)(basedondatafromCoyle2007)

0

100

200

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2928272625242322212019181716151413121110987654321

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0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

10 81.0 84.7 88.8 93.4 98.5 104.4 111.1 118.8 127.8 138.4 151.1

11 74.8 78.2 81.9 86.1 90.8 96.1 102.1 109.1 117.3 127.0 138.6

12 69.7 72.8 76.2 80.0 84.3 89.2 94.7 101.1 108.6 117.5 128.1

13 65.4 68.2 71.4 74.9 78.9 83.4 88.5 94.4 101.3 109.5 119.3

14 61.7 64.4 67.3 70.6 74.2 78.4 83.2 88.7 95.1 102.7 111.8

15 58.6 61.0 63.8 66.8 70.3 74.2 78.6 83.7 89.7 96.8 105.3

16 55.9 58.2 60.7 63.6 66.8 70.5 74.6 79.5 85.1 91.7 99.7

17 53.5 55.7 58.1 60.8 63.8 67.2 71.2 75.7 81.0 87.2 94.7

18 51.4 53.5 55.8 58.3 61.2 64.4 68.1 72.4 77.4 83.3 90.4

19 49.6 51.5 53.7 56.1 58.8 61.9 65.4 69.5 74.2 79.8 86.5

20 48.0 49.8 51.9 54.2 56.8 59.7 63.0 66.9 71.4 76.7 83.0

21 46.6 48.3 50.3 52.5 54.9 57.7 60.9 64.5 68.8 73.9 80.0

22 45.3 47.0 48.8 50.9 53.3 55.9 59.0 62.5 66.5 71.4 77.2

23 44.2 45.8 47.6 49.6 51.8 54.3 57.2 60.6 64.5 69.1 74.7

24 43.2 44.7 46.4 48.3 50.5 52.9 55.7 58.9 62.7 67.1 72.4

25 42.3 43.8 45.4 47.3 49.3 51.7 54.3 57.4 61.0 65.2 70.3

26 41.5 42.9 44.5 46.3 48.3 50.5 53.1 56.0 59.5 63.6 68.5

27 40.8 42.2 43.7 45.4 47.3 49.5 52.0 54.8 58.1 62.1 66.8

28 40.2 41.5 43.0 44.6 46.5 48.6 51.0 53.7 56.9 60.7 65.3

29 39.7 41.0 42.4 44.0 45.7 47.8 50.1 52.7 55.8 59.5 63.9

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othercompaniesintrainsandvessels,however,theoveralldegreeofloadingisnotknown.Onemustthenrelyonestimatesbasedonaverageloadingofthesemodes.Therehasbeenevidenceinthepastofmodalbiasesintheassumptionsmadeaboutvehicleloading,withemissionfactorsforsomemodesbasedonfullloadingandforothersonlyonaverageloadfactors.Itisimportantthattheorganisationscompil-ingemissionfactordatasetsmakeassumptionsaboutvehicleutilisationexplicit.Wheretheyarenotde-clared,cautionmustbeexercisedinusingthequotedemissionfactors.

Afurthercomplicationexistsinthecaseofro-rofer-riesandcontainervessels.Estimatingacarbonemis-sionfactorforthemovementofchemicalsbythesemodesrequiresatwo-tierassessmentofloading.Thefirstistheloadingfactorofthevehicleorcontainerandthesecondtheloadingoftheavailablespaceonboardthevessel.Theaverageemissionvaluescurrentlyavailableforro-roferriesneithermakethisdistinctionnordeclaretheassumptionsonloading.

2.4.6Natureoftheproduct

TheCeficsurveyofchemicaltransportoperationsaskedcompaniestodistinguishbulkfrompackagedproduct.Thenatureoftheproductanditspackagingwillinfluenceitsdensityandhencetheweight-basedloadandemissionfactors.Itisourunderstanding,however,thatinthechemicalindustrymostpackagedproductisalsodenseandresultsinahighproportion

ofloadsreachingthemaximumvehicleweightlimit.Theremay,therefore,belittleneedtoapplydifferentemissionfactorsforbulkandpackagedproduct.Ifitwerenecessarytodothis,newempiricalresearchwouldberequiredasnoneofthepublishedsetsofemissionfactorscurrentlydifferentiatefreightbyphysicalcharacteristics,otherthanweight.

2.4.7Logisticaloperationsatdifferentlevelsofthechemicalsupplychain

Thenatureofthefreighttransportoperationvariesacrossthechemicalsupplychain.Attheupperendofthechain,primaryproducersofbasechemicalsdis-tributetheirproductsmainlyinbulkinvolumesthatcanfillroadvehicles,barges,ships,wagonsandevenwholetrains.Theyalsomakerelativelyheavyuseofthelowercarbontransportmodes(rail,water-borneservicesandpipeline).Theaveragecarbonintensityoftheseoperationswill,therefore,besignificantlylowerthanthoseofmorespecialistproducersfurtherdownthechainwhoseoutputisdespatchedinsmallerorderstoamorediversemixofcustomers,some-timesonroad-basedmultiple-dropdeliveryrounds.Ideally,separateemissionfactorsshouldbeappliedtocompaniesatdifferentlevelsofthechaintoreflectthesedifferencesincarbonintensity.Simplyextrapo-latingthecarbonfootprintoftransportoperationsattheprimaryendofthechaintotheindustryasawhole,inproportiontotonnagesorsales,islikelytounder-estimatetotalcarbonemissionsfromEuropeanchemicaltransport.

2.4.8Geographicalvariability

TheaverageemissionfactorsforparticularmodesvaryfromcountrytocountryinEuropeasaresultofseveralfactors:

Road:natureoftheroadinfrastructure,leveloftraf-ficcongestion,maximumvehicleweight,leveloffueltaxes,climate,topography,drivingstylesetc.

Rail:%ofrailfreightserviceselectrified,%ofrail-freightelectricityfromlowcarbonsources,railwayloadinggauge,densityofaccesspointsonthenetworketc.

Inlandwaterways:maximumdraught,size,weightandageofvessels,densityofaccesspointsonthenetworketc.

Somedatabases(e.g.Tremove,INFRASandIFEU)containseparateaverageemissionfactorsfordiffer-entcountries.Somecountriesalsomaintainnationalemissioninventories,basedoncountry-specificemis-sionfactors.Therangeofcarbonemissionfactorscurrentlyavailableatcountrylevelforthevarioustransportmodesistoolimitedtoconducttheanalysisanacountrybasis.Thiswouldalsorequirethechemi-calcompaniestoprovideabreakdownbycountryofthequantitiesoffreightmovedandaveragedistancetravelled.Itmayeventuallybepossibletoobtainallthenecessarycountrydatafora‘bottomup’analysisofEuropeanchemicaltransportemissions.Fortheforeseeablefuture,however,itwillbenecessarytorelyonaveragemodalemissionsfactorsforEurope

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7 McKinnon,A.andPiecyk,M.(2009)‘MeasurementofCO2EmissionsfromRoadFreightTransport:AReviewofUKExperience.’EnergyPolicy,Vol.37,no.10.

8 INFRAS/IWW/IFEA(2004)‘ExternalCostsofTransport:UpdateStudy’Zurich/Karlsruhe.

9 Knorr,W.andReuter,C.(2005)‘EcoTransIT:EcologicalTransportInformationTool-EnvironmentalMethodologyandData’IFEU,Hiedelberg.

asawholeandhopethatthesefaithfullyreflectthenationalpatternoftransportemissionsacrossthecontinent.

2.5ReviewofEuropeandatasourcesonfreightemissionfactors

Numerousstudieshavebeenundertakenoverthepast20yearswithinEuropetodevelopemissionfactorsfordifferentformsoftransport.MuchofthisworkhasbeensponsoredbytheEuropeanCommis-sionandnationalgovernments.Thesestudiescanbedividedintotwogeneralcategories;thosewhichhavecompiledprimarydatafromlaboratoryexperi-ments,runningvehiclesunderartificialconditionsonrollerbedsandthosebasedonthecollectionoffuelconsumptiondatafromvehiclesinthecourseofnormal,real-worldoperation.RecentresearchintheUK7hassuggestedthat,wheretheobjectiveistomeasurecarbonemissionsfromtrucksatanationallevel,thelattermethodyieldsmoreaccurateandrealisticresults.Undercontrolledconditionsinlabo-ratories,however,itispossibletomodelrelationshipsbetweenvehiclespeed,loading,energyconsumptionandemissionsinmuchgreaterdetail.Whilethisisre-quiredforenvironmentalmodellingoftrafficflowsbypublicagencies,itgoeswellbeyondtheneedsofthecurrentCeficinitiativetocarbonfootprintchemicaltransportoperations.Someofthisprimarydataonvehicleemissions,frommajorprojectssuchasMEET,PHEM,ARTEMISandCOPERT,hasneverthelessbeenusedtocalibratemoregeneralisedemissionfactor

datasets,suchasTremove.Itisthemoregeneraliseddatasets,derivedeitherfromlaboratorytest-bedanalysisorindustrysurveys,whicharemostrelevanttothepresentstudy.SomeofthesedatasetsrelatetotransportataEuropeanlevel,otherstonationaltransportsystems.

2.5.1EU-widestudies

INFRAS/IWW/IFEU:TheseorganisationsdevelopedemissionfactorsforarangeoffreightandpassengertransportmodesinthecourseofaprojectfundedbyCER,themainorganisationofEuropeanRailways,tocalculatethe‘externalcosts’oftransport.EmissionfactorsareprovidedforEuropeasawholeandforindividualEuropeancountries.Thelastsetoffigureswaspublishedin20048.

IFEU:OnaseparatecontractfromEuropeanrailwaycompanies,thisorganisationhasdevelopedtheEcoTransittoolwhichallowsuserstocomparetheenvironmentalimpactofmovinggoodsbydiffer-enttransportmodesonspecific,user-definedroutesacrossEurope.Inaseparatemanual,IFEUoutlinesthemethodologyandchoiceofemissionfactors9.Unfor-tunately,inthismanual,theemissionfactorsforthevarioustransportmodesareexpressedusingdifferentmetrics(e.g.gCO2pertonne-km,gCO2perkgoffuel),makingitdifficulttocomparethemonaconsis-tentbasis.Byapplyingthetooltoasampleoffreightmovements,however,itispossibletodeterminetheunderlyingemissionfactorsusingthestandardgCO2pertonne-kmratio.

TREMOVE:ThisdatasetiscompiledbyTransportMobilityLeuven(TML)oncontracttotheEuropeanCommission.TheTremove2.7bspreadsheet(February2009)providespast,presentandfutureestimatesoftotaltonne-kms,energyconsumptionandemissionsfortrucks,vans,railfreightservicesand‘inlandship’forseventeenEUcountries.Manyoftheemissionfac-torshavebeenderivedfromCOPERTandotherearlierstudies.BydividingestimatesofCO2emissionsforthevariousmodesbythecorrespondingtonne-kms,itispossibletocalculatetheaverageemissionfactors.

TREND:ThisisanotherEU-fundedprojectwhichhasreviewedpasttrendsinemissionsbyalltransportmodesandprojectedtheirfuturecourse.Again,byanalysingtherelevantspreadsheetsitispossibletoestablishtheembeddedemissionfactorsforthemajorfreightmodes.

2.5.2Nationalstudies

SwedenTheSwedishtransportandenvironmentorganisa-tionNTMhasgainedareputationasanauthoritativesourceoftransportemissionvalues.ItsonlineNTMCalctoolemploysaseriesofemissionfactorsforfreightmovementsbyroad,rail,inlandwaterway,seaandair,ineachcasesplitbyvehicletypeand,whereappropriate,powersource.Inmostcasesthesevalueshavebeenobtainedfromtransportoperators.TheNTMcalculatoralsogivesuserstheoptionofmeasu-ringemissionsonawell-to-tankbasis(SB2)andwithinfrastructure-relatedCO2emissionsincluded(SB3).

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10 DEFRA(2009)‘Guidanceonhowtomeasureandreportyourgreenhousegasemissions’London.

11 ADEME(2007)‘EmissionFactorsGuide:EmissionFactorsCalculationandBibliographicalSourcesUsed’Version5.0.

NTMwillbereleasinganupdatedandmorerefinedversionoftheircalculator(NTMCALC3.0)in2010.Muchmoredatahasbeenobtainedfromoperatorstopermitgreaterdifferentiationbyvehicletypeandpowersource.

UKTheDepartmentoftheEnvironment,FoodandRuralAffairs(DEFRA)publishesguidelines10forcompaniesonthereportingofCO2emissionswhichcontainindicativeemissionfactorvaluesforseveralfreighttransportmodes.Inthecaseofroadfreightmove-ments,differentloadfactorsarespecified,thoughtheupdatedversionofthisguidancein2007actuallyre-ducedthefourlevelsofloading(empty,25%,50%,75%and100%fullbyweight)toonlythree(empty,50%and100%full).

TheNationalAtmosphericEmissionsInventoryalsocontainsemissionfactorsforheavygoodsvehiclesandrailfreightoperations,thoughinthelattercaseonlyasingleaverageisquoted.Theroadfreightemissionfactorsfordifferentclassesoftruckwereoriginallybasedsolelyonlaboratorytestbedstudies,thoughnowmakegreateruseofsurveysofroadfreightoperators.

FranceThemainfreightemissionfactorsusedinFrancewerecompiledbythestateenvironmentalagencyADEME.ItpublishesanEmissionsFactorManual,whichisnowinitsfifthversion11.Thisonlycontainsemissionfactorsforroadandrailfreightoperations.Thepub-lishedemissionfactorsforroadarebasedonaverage

levelsofvehicleloadingandemptyrunninginFranceandsomaynotbetransferabletoothercountries.

Noneofthesedatasetsontheirownprovideacomprehensivesetofemissionfactorsforusebythechemicalindustry.Theyvaryintheircoverageoffreighttransportmodes,theextenttowhichtheydifferentiatebyvehicletypeandpowersourceandintheassumptionstheymakeaboutvehicleloading(wherethisismadeexplicit).Itisnecessarythereforeto‘cherry-pick’incompilinganappropriatesetofemissionfactorsforchemicaltransportoperations.Othersectors,suchastheWineandSpiritTradeAs-sociation,andcompanies,suchasJ.F.Hillebrandtheworld’slargestdistributorofwinesandspirits,haveadoptedasimilarapproach.

2.6Characteristicsofchemicaltransportoperations

Indevelopingasystemofcarbonfootprintingforchemicaltransportoperations,itisimportanttorecognisethattheseoperationshaveseveraldistin-guishingfeatures:

1.Almostallchemicaltransport,withtheexcep-tionofmovementsbypipeline,isoutsourced.Aschemicalcompaniesdonotcontrolthetransport,theycannotcollectenergyandemissionsdatadirectlyandmustrelyontheircarrierstoprovidethenecessaryinformation.

2.Chemicalcompaniesemploythefullrangeoffreighttransportmodes.Unlikeinsomeothersectors,inwhichallbutasmallproportionoffreightmovesbyasinglemode,abroadrangeofmodalemissionfactorsarerequiredforthecarbonfootprintingex-ercise.Thechemicalindustryisalsooneofthefewtomakeextensiveuseofpipelinesasatransportmode.

3.Thechemicalindustrygeneratesahighproportionoffullloads,particularlyattheupperendofthesupplychainwherelargevolumesareproducedanddistributed.ThisreducestheneedtoallocateCO2emissionsbetweendifferenttypesoffreighttrafficsharingthesamevehicle.

4.Astransportcostsrepresentarelativelyhighproportionofproductsellingprice,chemicalcompaniesareunderstrongpressuretomaximiseloadsizeandweightandthusmaximisetheiruseoftransportcapacity.Itcanbeassumed,therefore,thatvehiclescarryingchemicalsachievehighloadfactors.

5.Therelativelyhighdensityofchemicalproducts,particularlyattheupperendofthesupplychain,resultsinroadvehiclesreachingtheirmaximumweightlimitbeforetheirvolumelimit.Thisheavyweight-basedloadingofvehiclesiswellalignedwithweight-basedemissionfactorsnowwidelyusedforfreighttransport(gCO2/tonne-km).

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6.Thenatureofthetransportoperationchangesasproductsmovedownthechemicalsupplychain:theproportionofpackagedgoodsincreases,averageordersizedeclines,theaveragenumberofdropsperdeliveryandrelativeuseofnon-roadmodesdecreases.Asthesechangesaffectthecar-bonintensityofthetransportoperationpertonne-km,itisimportantthatanycarbonmeasurementsystemadequatelyrepresentsthedifferenttiersinthesupplychain.

7.WhilethemajorityofchemicalsalesinEuropearemadeonadelivered-pricebasis,asubstantialminority(estimatedtobearound20-30%)involvethecustomercollectingtheproduct.Thishasim-plicationsforthedivisionoftransport-relatedCO2emissionswithinthechemicalsupplychain.

8.Nootherindustryinterfaceswithsomanysectorsasthechemicalindustry,aschemicalsareincorpo-ratedintoabroadarrayofproducts.Atthespecial-istendofthechemicalindustrytheseinterfacescanblur,makingitdifficult,intermsofproductclassification,todeterminewheretheouterperim-eterofthechemicalindustryshouldbedrawn.

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organisation gCO2/tonne-km assumptionsaboutvehicleloading

NTM 59 60%utilisation

IFEU 66 average

Tremove 77.2

DEFRA 82 >32tGVW/27%emptyrunning/59%loadfactor

INFRAS 91

ADEME 109 maxload25t/21%emptyrunning/57%loadfactor

TABLE2

PublishedEmissionFactorsforHeavyArticulatedTruck

TABLE3

PublishedEmissionFactorsforRailFreightMovement(gCO2/tonne-km)

organisation allrailfreight diesel-hauled electric-hauled

ADEME 7.3 55 1.8

NTM 15 21 14

AEATechnology 20

DEFRA 21

INFRAS 22.7 38 19

TRENDS 23

Tremove 26.3

IFEU 35 18

McKinnon/EWS 18.8

2.7Averageemissionfactorsforthemovementofchemicalsbythedifferenttransportmodes

Thissectiondiscussesthechoiceofaverageemissionfactorsfortherangeofmodesusedtotransportchemicals.Theycanbeusedtoestimatethetotalcarbonfootprintofchemicaltransportoperationsorbyindividualcompaniesasdefaultvalues.Itisclearlypreferable,ifpossible,forcompaniestoderiveemis-sionfactorsfortheirspecifictransportoperations,reflectingthecharacteristicsoftheirsupplychains,productsandcustomerbase.

2.7.1Road

Itisassumedthatthestandardvehicleusedforchem-icaldeliveriesisa40tonnearticulatedtruckcarryingamaximumpayloadof26tonnes12.Table 2showsthepublishedemissionfactorsforsuchavehicleandindicatestheassumptionsmadeaboutvehicleload-ing,wherethesearedisclosed.Theseemissionfactorsvarywidelyfrom59to109gCO2/tonne-km.Some,butnotall,ofthisvariationcanbeexplainedbydif-ferencesinthedefinitionofthevehicleweightclassandassumptionsaboutaveragevehicleloadfactorsonladentripsandthelevelofemptyrunning.

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12 Estimatesoftheemissionfactorsforthe44tonnetruckspermittedintheUKandIrelandareshownonFigure4andTable1.Thesevehiclescancarryamaximumloadofaround29tonnes.

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Anindependentanalysis,referredtoinSection2.4.5above,wascarriedoutforthisstudyusingUKdatacollectedinon-the-roadtrialsofmaximumweightarticulatedvehiclesrunningwithvaryingpayloads.ThevaluesinthebottomhalfofTable 1tendtoconfirmemissionfactorsatthelowerrangeofvaluesshowninTable 2.If,forexample,weightbasedloadfactorsacrossthechemicalsupplychainaveraged77%andthelevelofemptyrunningaround20%,anaverageemissionfactorof59.8gCO2/tonne-kmwouldapply,similartotheNTMvalue.A77%loadfactorwouldbesubstantiallyhigherthantheaverageformaximumweightarticulatedvehicles,thoughinothersectorsahigherproportionofloads‘cubeout’beforethey‘weighout’.Ontheotherhand,theneedtocleantanksandcontainerspriortobackloadingmayresultintheaveragelevelofbackloadinginthechemicalindustrybeinglowerthantheaverageforheavytrucks.Ifoneweretocombineanaverageloadfactorof80%witha25%emptyrunningfigure,theresultwouldbeanaverageindustryemissionfactorofroughly62gCO2/tonne-km,slightlyabovetheNTMfigure,butwellbelowtheaveragefiguresforroadhaulageasawholeadoptedbyTremove,INFRASandtheBritishandFrenchgovernments.Individualcompaniesmayhoweverusedifferentemissionfac-torsthatbetterreflecttheparticularcircumstancesoftheirtransportoperations(see Table 1).Anaverageemissionfactorof62 gCO2 / tonne-kmisrecommendedforroadtransport.

2.7.2Railfreight

Averageemissionfactorsforrailfreightrangefrom7.3to23gCO2/tonne-km,thoughmostestimatesliewithintherange15-23(Table 3).Asexplainedearlier,theseaveragesareinfluencedmainlybyfourfactors:thesplitbetweendieselandelectrichaulage,thecarbonintensityoftheelectricalpowersource,theenergyefficiencyofthelocomotiveandassump-tionsabouttrainloadfactors.Allfourcanvarywidelybetweencountries,makingitdifficulttoestablisharepresentativeemissionfigureforthewholeofEu-rope.Itisworthnotingthewidevariationsinthecar-bonintensityofdifferenttypesofelectrifiedrailfreightservicefrom0.003gCO2/tonne-kmforelectricitygeneratedbyrenewables(NTM)to1.8forpredomi-nantlynuclearpoweredservicesinFranceto19fortheelectricalenergymixacrosstheEU,comprising55%fossilfuel,30%nuclearand15%renewables.Thefigureof7.3recommendedbyADEMEforFranceisclearlyanoutlier,reflectingthehighproportionofelectrifiedrailfreightservicesandheavydependenceonnuclearpower.AstudyundertakenbyMcKinnon(2007)13intheUKfoundthatthecountry’selectricalenergymixresultedinelectrifiedrailfreightserviceshavingaverysimilarcarbonintensitytodiesel-hauledservices.Forthepurposeofthisstudyanaverageindustryemissionfactorof22 gCO2 / tonne-kmisrecommended.

2.7.3Inlandwaterway

Therearefewerpublishedestimatesofaverageemis-sionfactorsforbargemovementsoninlandwater-waysandamuchnarrowerrangeofvalues(Table 4).Indeedtheclosesimilaritybetweensomeofthesevaluessuggestthatthefiguresmayhavebeenderivedfromthesamesource.Reflectingtheappar-entconsensusbetweenthestudiesonthecarbonintensityofthismode,itisrecommendedthatavalueof31 gCO2 / tonne-kmbeused.

TABLE4

PublishedEmissionFactorsforInlandWaterway/BargeMovements

organisation gCO2/tonne-km

INFRAS 31

TRENDS 31

Tremove 32.5

IFEU 28-35

13 McKinnon,A.C.(2007)‘CO2EmissionsfromFreightTransportintheUK’CommissionforIntegratedTransport,London.

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gCO2/tonne-km Source

Bulkship

Smalltanker(844tonnes) 20 DEFRA

Largetanker(18371tonnes) 5 DEFRA

Small(solid)bulkvessel(1720tonnes) 11 DEFRA

Large(solid)bulkvessel(14201tonnes) 7 DEFRA

Containervessels

Smallcontainervessel(2500tonnes) 13.5 DEFRA

Largercontainervessel(20000tonnes) 11.5 DEFRA

Averagedeep-seacontainervessel 8.4 BSR/CleanCargo

(assuming mean 11 tonne load per TEU)

Deep-seatanker(120,000tonnes) 5 NTM

AllMaritime 14 TRENDS

TABLE5

PublishedEmissionFactorsforMaritimeTransport

2.7.4Shipping

Shortseashippingoperationscanbedividedintothreetypes:ro-roferryoperations(carryingtrucksand/orrailwagons),bulkshipsandcontainervessels.Foreachofthesemaritimemodestwosetsofpublishedemis-sionfactorvalueswerefound,thoughtheyarenotdirectlycomparablegivendifferingassumptionsmadeaboutthevesselweightclass(Table 5).Thereisthere-forelittlechoiceintheselectionofemissionvaluesforshipping.Anoverallemissionfactorforshort-seashippingof16 gCO2 / tonne-km isproposed.

Acrossasampleofninedeep-seacontainership-pinglines,CleanCargo/BSRfoundtheweightedaverageemissionsofCO2perTEU-kmtobearound93g.AssumingthattheaverageTEUcarriesaloadof11tonnes,thisyieldsacarbonintensityvaluefordeep-seacontainershippingof 8.4 gCO2 / tonne-km.(Thisemissionfactormakesnoallowanceforthere-positioningofemptycontainers.)Anestimateofthecarbonintensityofdeep-seatankeroperationshasbeenobtainedfromNTM,5 gCO2 / tonne-km.

2.7.5Intermodaltransport

Onceasetofemissionfactorshasbeenagreedforindividualtransportmodes,thesevaluescanbeusedtoderivecompositeemissionfactorsforintermo-daloperations.Thesecompositevaluesneedtobeweightedbytherelativedistancestravelledoneachofthemodesinthecourseoftheintermodaljourney.Chemicalcompaniesoftendonotknowtherouteingofintermodalconsignmentsandhencethedistancesplitbetweenthemodes.Onecompanycontribut-ingtotheCeficsurvey,assumedthattheaverageroad-railintermodalhaulwas1000kmlongandthatroadfeedermovementsatbothendsoftherailline-haulwouldbearound100kmslong.ItisnotknownifthesefigureswouldberepresentativeoftheEuropeanchemicalindustryasawholeandofotherintermodalcombinations.Onewayofobtain-ingarepresentativevaluewouldbetosurveylargeintermodaloperatorsspecialisinginthemovementofchemicalsandaskthemtoprovideaveragevaluesofthedistancesplitsfordifferentintermodalcombina-tions.Inthemeantime,wehaveconstructedatableshowingarangeofemissionfactorsfordifferenttypesofintermodalservicewiththeroadshareofthetotaldistancetravelledvaryingfrom5%to20%(Table 6).Untilmoredataisprovidedbyintermo-daloperators,weproposethata10%roadfeederdistancebeadoptedandthatemissionfactorsinthesecondcolumnofTable6beusedforintermodalservices(bolded).

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TABLE6

CompositeEmissionFactorsforIntermodalCombinations

intermodalcombination Roaddistanceas%oftotal

5% 10% 15% 20%

road-rail averagerailfreight 24.0 26.0 28.0 30.0

electrifiedrail(EUaverage) 21.2 23.3 25.5 27.6

electrifiedrail(France) 10.0 12.8 15.5 18.2

dieselrail 25.9 27.8 29.7 31.6

road-inlandwaterway 32.6 34.1 35.7 37.2

roadshort-sea ro-roferry-truck 49.7 50.3 51.0 51.6

ro-roferry-rail 38.3 39.5 40.8 42.0

smalltanker(844tonnes) 22.1 24.2 26.3 28.4

largetanker(18371tonnes) 7.9 10.7 13.6 16.4

smallbulkvessel(1720tonnes) 13.6 16.1 18.7 21.2

largebulkvessel(14201tonnes 9.8 12.5 15.3 18.0

smallcontainervessel(2500tonnes) 15.9 18.4 20.8 23.2

largercontainervessel(20000tonnes) 14.0 16.6 19.1 21.6

allshortsea 18.3 20.6 22.9 25.2

shorthaul mediumhaul longhaul source

1580 800 570 WRI/WBCSD(2003)

1925 867 633 NTM(2005)

673 INFRAS/TRENDS(2004)

TABLE7

EmissionFactorsforAirFreightTransport

2.7.6Airfreight

Relativelysmallamountsofchemicalsmovebyair.TheCeficsurveyindicatedthatonly0.01%oftonnesand0.07%oftonne-kmsmovebyair.Thesearemainlyspecialistpolymers,samplesandemergencyconsignments.Publishedcarbonemissionfactorsforairfreightvarywidely,reflectingdifferencesinthelengthofhaulandnatureoftheoperation (Table 7).Twosources,WRI/WorldBusinessCouncilforSustainableDistributionandNTM,haveprovideddifferentemissionfactorsforeachdistancerange.AsthemeanlengthofhaulforairfreightmovementsintheCeficsurveywas7000kms,anaverageofthetwolonghaulemissionfactorsisproposedi.e.602 gCO2 / tonne-km.

2.7.7Pipeline

TheonlypublishedfigurethatwehavebeenabletofindforpipelineappearedinareportpublishedbytheUKRoyalCommissiononEnvironmentalPol-lutionin199414.Thisstudyassignedavalueof10gCO2/tonne-kmtopipelines.Sincethenthecarboncontentofelectricityhasreducedasaresultoftheswitchtogas-firedstationsandrenewables.Itisalsolikelythattheenergyefficiencyofpipelinepumpingequipmentwillhaveimproved.Ithasbeendecidedthereforetousealowervalueof 5 gCO2 / tonne-kmatpresent,pendingfurtherenquiries.

14 RoyalCommissiononEnvironmentalPollution(1994)‘TransportandtheEnvironment’HMSO,London.

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Transportmode gCO2/tonne-km

Roadtransport 62

Railtransport 22

Bargetransport 31

Shortsea 16

Intermodalroad/rail 26

Intermodalroad/barge 34

Intermodalroad/shortsea 21

Pipelines 5

Deep-seacontainer 8

Deep-seatanker 5

Airfreight 602

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RecommendedAverageEmissionFactors

2.8Recommendedaverageemissionfactorsforchemicaltransportoperations

Theproposedsetofcarbonemissionfactorsaresum-marizedin Table 8.

Theserecommendedemissionfactorsareaveragevaluesforthewiderangeoftransportactivitiesofthechemicalindustry.Theycanbeusedtoestimatethetotalcarbonfootprintofchemicaltransportoperationsorbyindividualcompaniesasdefaultvalues.Itisclearlypreferable,ifpossible,forcompaniestoderiveemissionfactorsfortheirspecifictransportoperations,re-flectingthecharacteristicsoftheirsupplychains,productsandcustomerbase.

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15 WBCSD(2009)‘CementIndustyEnergyandCO2Performance:GettingtheNumbersRight’Geneva.

16 InternationalFertiliserIndustryAssoc(2009)‘Fertilisers,ClimateChangeandEnhancingAgriculturalProductivitySustainably’Paris.

3. Measurement of Transport-related Emissions in other Sectors

TheEuropeanchemicalindustryisnotaloneintryingtocarbonfootprintitstransportoperations.Othersectorshavelaunchedsimilarinitiatives.Itispossiblethatthechemicalindustrymaybeabletolearnfromtheexperienceintheseothersectors.Aspartofthisstudy,therefore,areviewwasconductedofotherindustrialandcommercialsectorstoexaminetheireffortstomeasureCO2emissionsfromtheirtransportoperations.Thismainlyinvolvedanonlinesearchofthewebsitesofindustrytradebodiesandcompanies,combinedwithkeywordsearchesforreports,papersandpresentations.Informaldiscussionswerealsoheldwithlogisticsspecialistsinseveralindustrieswhohavecontributedtoourpreviousresearchprojects.

Thisreviewhasrevealedthatinmostsectorscarbonmeasurementisatafairlyearlystageandrelatesprincipally,andinsomecasessolely,toemissionsfromthecoreactivity,suchasprimaryprocessing,manufacturingorpackaging.Littlereferenceismadetothecarbonfootprintoftransportoperations,particularlyinthosesectors,suchascement,withahighlycarbon-intensiveproductionprocess.Whereindustryassociationsorcompanieshavepublisheddataontransport-relatedemissions,theyseldomdisclosethemethodsusedtoderivethesestatistics,theunderlyingassumptionsandtheirchoiceofemis-sionfactors.

Itispossibletodetectanevolutionarypathinthedevelopmentofcarbonmeasurementcapabilityatanindustrylevel.Initiallymacro-level,top-downestimatesofaggregateemissionsarecompiledwithlittleornodifferentiationbyactivity.Thesearetypi-

callybasedonsimplerelationshipsbetween,ontheonehand,totaloutput,salesandenergyconsump-tionand,ontheotherhand,carbonemissions.Atalaterstage,surveysofkeycompaniesintheindustrypermitmoreaccurate‘bottom-up’estimationofCO2emissionsandsomedifferentiationofemissionsbyactivity,includingtransport.Atfirst,thecarbonauditingoftransportreliesongeneral,cross-industryaverageemissionfactors,butcansubsequentlyberefinedwiththedevelopmentofsector-specificemis-sionfactors.Furtherevolutionseesthedisaggregationoftransport-relatedcarbonmeasurementbyindustrysub-sectorandcanleadtointer-companybenchmark-ingofcarbonintensity.Mostofthesectorsreviewedarecurrentlyintheearlystagesofthisevolutionarypath.Thechemicalindustryappearstobeoneofthemoreprogressiveinitseffortstoquantifycarbonemissionsfromitstransportoperationanddevelopcarbonreductionstrategiesfortransport.Itmay,nevertheless,benefitfromadoptingsomeoftheideasandpracticesofothersectors.Thecurrentsituationintheseothersectorscanbesummarisedasfollows:

Cement

The‘CementSustainabilityInitiative’,ledbytheWorldBusinessCouncilforSustainableDevelopment,haspublishedareport15on‘gettingthenumbersright’inmeasuring‘energyandCO2performance’.Noneofthenumbersinthisreportrelatetotrans-port,however.Carbonmeasurementisconfinedtotheproductionoperation,withonlyabriefreference

tothetransportofinboundclinkerbeingminimalascementplantsaregenerallylocatedbesidequarries.TheCementIndustryGHGProtocolcurrentlyexcludes‘off-site’transportbecause‘theseemissionsaresmallcomparedtoemissionsfromthekilnanddifficulttoquantifyinaconsistentmanner’.Ifcompanieschoosetoincludetransport-relatedemissionstheyareencouragedtousetheWRI/WBCSD‘MobileCombustionTool’forthispurpose.LaFarge,oneofthelargestEuropeancementproducers,estimatesthatitsoutbounddistributionbyroadrepresents5%ofits‘manufacturingemissions’,thoughgivesnoindicationofthemethodofcalculation.

Fertiliser

TheInternationalFertiliserIndustryAssociation16hasincludedtransportandlogisticsinitsanalysisofGHGemissions.Itconcedes,nevertheless,thatthis‘isdiffi-cultbecauseofcontinuouslyshiftingtradeandtrans-portpatternsandbecausetradeaccountsforonlyaminorityoffertilisermovements’.Itestimatesthatdistributionrepresents‘about3%oftotalemissionsassociatedwiththefertiliserlifecycle’(thisexcludestheupstreamtransportofrawmaterials).ThemethodadoptedbytheIFIAisverysimilartothatofCefic:‘multiplyingthenumberoftonnesbythenumberofkilometresandthecoefficientfortheappropriateformoftransport’.Itencouragescompaniestoobtain‘locallyadjustedcoefficients’,inrecognitionofthefactthat‘thereseemstobesomeregionalvariationwithregardtowhethertransportbyrailandinland

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17 McKinnon(2007)op.cit.

18 WorldSteelAssociation(2008)‘CO2EmissionsDataCollection:UserGuideversion6’Belgium.

19 WSTALogisticsGroup‘TransportEmissionsCarbonCalculator’London.

20 Smith,A.etal(2005)‘ValidityofFoodMilesasanIndicatorofSustainableDevelopment’DEFRA,London.

waterwayhastheleastenvironmentalimpact’.ThemodalemissionfactorsquotedintheIFIAreportareobtainedfromMcKinnon(2007)17andNTM.

Steel

TheWorldSteelAssociation18providesadvicetomembercompaniesonthecalculationofCO2emis-sionsandhascalculatedtheindustry’stotalcarbonfootprint(1.7tonnesofCO2emittedpertonneofsteelproduced).Transportofrawmaterialsupstreamoftheplantare‘excludedfromthesystemboundary’.Presumablydownstreamdistributionoffinishedprod-uctsisincluded,thoughtheWSA’s‘CO2EmissionsDataCollection’reportoffersnoguidanceonhowtherelatedcarbonemissionsshouldbemeasured.Allthepublishedemissionfactorsapplytoproductionoperations.

Metalcans

CanMakers,thetradebodyrepresentingmanufac-turersformetalcans,commissionedconsultantstoconstructacarboncalculatorfortheirsupplychainoperations.Thistoolcanbecalibratedwithcompany-specificemissionfactorsorstandarddefaultvaluesderivedmainlyfromDEFRA.

Bitumen

Nynas,oneofthemainproducersofbitumen,hascarbonfootprintedtheproductionoperationandupstreamsupplychainforthisproduct.ThisincludestheinboundmovementofoiltotheirEuropeanproductionfacilities,butexcludesdistributionofthefinishedproduct.Nodetailsaregivenofthemethodofcalculation,thoughDEFRAappearstobethemainsourceofemissionfactorvalues.

Wineandspirits

TheWineandSpiritsTradeAssociation19,jointlywithJ.F.Hillebrand,havedevelopedacarboncalculatorformeasuringcarbonemissionsfromtransportinthissector.This‘representsanobjective,reasonableandconservativeassessmentofemissionsfromoneofthemostcomplexelementsofthebeveragesup-plychain’.Thecalculatorallowsuserstoestimate,onalanebylanebasis,CO2emissionsperlitreofwinetransportedbydifferenttransportmodes,forbulkandpackagedproductandforfull-loadsandgroupage.TheWSTAandHillebrandindicatethesourcesofallthemodalemissionfactorsbuiltintotheircalculator.TheseincludeDEFRA,McKinnon,theUKNationalAtmosphericEmissionsInventoryforroad;Tremove,NTMandINFRASforrailandNTM,McKinnonandMaerskforshipping.Typicalpayloadsarealsoprovidedforwines/spiritsmovedbyroadtrailerorcontainerindifferentcountries.Inaseparateinitiative,theScotchWhiskyAssociation,hasanalysed

(withtheassistanceoftheScotchWhiskyResearchIn-stitute),onalifecyclebasis,totalCO2emissionsfromtheproductionandworld-widedistributionofwhisky.Thishasestablishedthatoutbounddistributionofthefinishedproductconstitutesaround11%ofthetotal.Themacro-levelfootprintwascalculatedbymultiply-ingoutboundtonnagesbycarbonemissionfactorsforthedifferenttransportmodesused,assuminghighlevelmodalsplitestimates.Anemissionfactorof85gCO2/tonne-kmisusedforroadmovements,ob-tainedfromtheUKLowCarbonVehiclePartnership.Inthesecondphaseofthisproject,themainwhiskyproducersareprovidingmuchmoredetailedfiguresonthequantitiesofScotchmovedondifferentlanesbydifferentmodes.Carriershavealsobeenaskedtoprovidefuelconsumptionandemissionsdatatohelptorefinethecalculationandreducerelianceonstandardised,cross-industryemissionfactors.

Food

Numerousstudieshavecarbonfootprintedthesupplychainsoffoodproductsonalifecyclebasis.Manyhavebeenmotivatedbyconcernaboutthe‘foodmiles’issuei.e.thetrendtosourcefoodproductsfrommoredistantlocations.Thishasfocusedatten-tiononemissionsfromthetransportoperation.Giventhepublic/governmentinterestinthistopic,muchofthisworkhasbeenpublicly-fundedratherthancommissionedbytradeassociationsorcompanies.Studies,suchasSmithetal(2005)20,forexample,haveproducedmacro-levelestimatesoftransport-

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relatedCO2emissionsfordifferentclassesoffoodbymultiplyingtonnage,distanceandmodalemissionfactorvalues.Overthepastthreeyears,however,muchmoreprogresshasbeenmadeatthemicro-level,measuringcarbonemissionsfromthesupplychainsofspecificproductstopermitcarbonlabelling.

NumerousstudieshavebeenconductedonproductcarbonfootprintingintheUK,France,Germany,KoreaandJapan.Inanefforttostandardisethisprocess,theBritishStandardsInstitute(BSI)publishedguidelinesonthecarbonfootprintingofconsumerproducts(PAS2050)21whichincludesasectionontransportoperations.Itprovidesadvice,forexample,ontheallocationofCO2emissionsbetweenconsign-mentssharingthesamevehicle.

Inthecaseofloadslimitedbymass(i.e.weight),theallocationisbymass;wheretheloadisvolume-constrained,CO2istobedividedbyvolume.Thisrecommendationiscrude,however,andofferslittleguidanceonhowtodealwithmanycommonly-encounteredtransportsituationssuchas:wheretheloadisneithermass-norvolume-constrained,wherealoadcomprisesamixtureofhighandlowdensityconsignmentsorwheregoodsaredelivered/collectedonmultiple-stoprounds.

Asitisunlikely,fortheforeseeablefuture,thatchemicalcompanieswillberequiredtodisaggregatetransportCO2estimatesbyproductorconsignment,thisrecentdevelopmentofcarbonauditinginthefoodsectorislikelytobeoflimitedinterestintheshorttomediumterm.

21 BritishStandardsInstitute(2008)‘PAS2050:Specificationforthemeasurementofembodiedgreenhousegasemissionsinproductsandservices’London.

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Paperandboard/Packaging

The‘frameworkforthecarbonfootprintingofpaperandboardproducts’wascompletedin2007andapprovedbytheConfederationofEuropeanPaperIndustries(CEPI)22laterthatyear.Itdefined‘transport-relatedgreenhousegasemissions’asoneofthe‘tentoes’oftheindustry’scarbonfootprint.Thisincludes‘transportingrawmaterials,productsandwastesalongthevaluechain’.TheGHGcalculationproce-dureisasfollows,withdatacomingfrom‘companiesprovidingtransportservices,companytransportexpertsandlife-cycledatabases’:

Calculationsteps:1.Usesystemboundaries,cut-offcriteriaand

knowledgefromotherstudiestodecidewhichtypeoftransporttoincludeintheanalysis

2.Estimateemissionsassociatedwiththeselectedaspectsoftransport

3.Iftransportisusedformultipleproducts,useappropriateallocationmethodstoidentifytheemissionsassociatedwiththeproductofinterest

4.Ifneededtosatisfytheobjectivesofthefootprint,dividetheemissionsintocategoriesreflectingcontrol

5.Recordthegreenhousegasemissionsattribuabletothefunctionalunitoftheproductbeingstudiedintheappropriatereportingform

ForpaperproductsanEnvironmentalPaperAs-sessmentTool(EPAT)hasbeendevelopedinNorthAmericawhichincludesacalculationof‘transportemissionsassociatedwithcarryingproductfrom

themillstoadistributionpointorconverter’.This‘providesbuyersandsellersofpaperproductswithaconsistentlanguageandframeworktoevaluateandselectenvironmentallypreferablepaper’.TheFedera-tionofEuropeanCorrugatedBoardmanufacturers(FEFCO)whichisaffiliatedtoCEPI,haspublishedamoretechnicalmanualonthecarbonfootprintingofthisclassofproducts.Thismakesnoexplicitreferencetotransport,thoughindicatesthattheBritishPAS2050methodologyhasbeenemployedinitsGHGcalculations.

Concernabouttheenvironmentalimpactofthegrowthofpackagingand,insomecountriestheproposedintroductionoftaxesonpackaging,hasstimulatedresearchontheenvironmentalauditingofthepackagingsupplychain.AstudybyCEDelft23hasestimatedthetransport-relatedCO2emissionsfromthesupplychainsofarangeofpackagingproducts.ThishasusedaseriesofCO2-intensityvaluesfordif-ferenttransportmodes(78g/tonne-kmforroadand34g/tonne-kmforrailandinlandwaterway).IthasalsoestimatedtheaveragelengthofeachlinkinthepackagingsupplychainwithintheNetherlandsandquantitiesofproductmovingoneachoftheselinks.

Postalservices

Althoughthemovementofmailpresentsverydif-ferenttransportchallengestothedistributionofchemicals,arecentinitiativebytheInternationalPostCorporation24(IPC),whosemembershandle80%of

globalmailvolume,meritsattention.Ithasestab-lishedanEnvironmentalMeasurementandMonitor-ingSystem(EMMS)thatmemberorganisationsandtheircustomerscanusetocarbonfootprinttheirmailoperations,whichareessentiallylogistical.EMMSwasdevelopedto‘implementacommoncarbonmeasure-mentandreportingframeworkinlinewithcustomerrequirementsandstakeholderexpectations’.Itscorescompanies’‘carbonmanagementproficiency’onaconsistentbasisusingthe‘plan-do-check-act’approachadvocatedbytheInternationalStandardsOrganisation.TheIPChassetitsmembersatargetofreducingtheirtotalCO2emissionsby20%by2020.

Summary

Thereisnoindustryorsectorwhichcancurrentlyberegardedasbestpracticeintermsoftransport-relatedcarbonauditing.Some,suchasfertiliser,packagingandwines&spirits,havegonethroughasimilarpro-cesstoCeficinadoptinganactivity-basedapproachtocarbonmeasurementandsurveyinglargemembercompaniestocompilethenecessarybasedataformacro-levelestimationofCO2emissions.

Severalofthesectoralinitiativesoutlinedabove,mostnotablythoserelatingtofertiliser,foodandpaper&board,gobeyondcarbonmeasurementandprovideadvicetocompaniesonmethodsofdecarbonisingtheirtransportoperations.

24

22 CEPI(2009)‘FrameworksfortheDevelopmentofCarbonFootprintsforPaperandBoardProducts’Brussels.

23 CEDelft(2007)‘EnvironmentalIndicesfortheDutchPackagingTax’Delft.

24 InternationalPostCorporation(2009)‘PostalSectorSustainabilityReport2009’Brussels.

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4. Opportunities for Decarbonising Chemical Transport Operations

TheseopportunitieswillbeexaminedwithinaframeworkdevelopedfortheGreenLogisticsresearchprojectintheUK(Figure 5).Thisframeworkmapsthecomplexrelationshipbetweentheweightofgoodspro-ducedinaneconomyorindustrialsectorandtheCO2emissionsfromitsfreighttransportoperations.Thisrelationshippivotsonasetofsevenkeyparameters:

Modalsplitindicatestheproportionoffreightcarriedbydifferenttransportmodes.Followingthissplit,subsequentparametersneedtobecalibratedforparticularmodes.TherestofFigure 5 hasbeendefinedwithrespecttoroadtransport.

Averagehandlingfactor:thisistheratiooftheweightofgoodsproducedbyanindustrialsectortofreighttonnagesloadedontovehiclesatthestartofajourney,allowingforthefactthat,astheypassthroughthesupplychain,productsareloadedontovehiclesseveraltimes.Thehandlingfactorservesasacrudemeasureoftheaveragenumberoflinksinasupplychain.

Averagelengthofhaul:thisisthemeanlengthofeachlinkinthesupplychainandessentiallyconvertsthetonnes-liftedstatisticintotonne-kms.

Averagehandlingfactorandlengthofhaulreflectthatoverallsupplychainstructure.

Averagepayloadonladentripsandthepropor-tionofkmsrunemptyarethetwokeyvehicleutilizationparameters.Averagepayloadisnormallymeasuredsolelyintermsofweight.Thisisveryap-

FIGURE5

DecarbonisationFrameworkforFreightTransport

CO2emissions

Distribution of vehicle - kms by vehicle size, wieght and type

Aggregate

Key parameter

Determinant

Efficiency of vehicle routing

Vehicle carrying capacity by weight / volume

Vehicle utilisation on laden trips

Level of backhaulage

Supply chain structure

Road tonne -kms

Total vehicle -kms

Traffic conditions

Timing of deliveries

Spatial pattern of deliveries

Weight of goods transported by road

Road tonnes -lifted

Weight of goods produced / consumed

Similaranalysesforothermodes

Fuel consumption

Fuel efficiency

Carbon intensity of fuel

Modal split

Average % empty running

Average length of haul

Average handling factor

Average load on laden trips

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propriateinthechemicalindustryasalargepropor-tionofloadsareweightconstrained.

Energyefficiency:definedastheratioofdistancetravelledtoenergyconsumed.Itisafunctionmainlyofvehiclecharacteristics,drivingbehaviourandtrafficconditions.

Carbonintensityoftheenergysource:i.e.theamountofCO2emittedperunitofenergycon-sumedeitherdirectlybythevehicleorindirectlyattheprimaryenergysourceforelectrically-poweredfreightoperations.

4.1Modalsplit

Ithasbeenseenhowcarbonintensity(expressedasgrammeofCO2pertonne-km)varieswidelybetweentransportmodes.Shiftingfrommodeswithrelativelyhighcarbonintensitiestothosewithmuchlowercarbonemissionscanhelptodecarbonisefreighttransport.ToillustratethepotentialsavingsinCO2fromfreightmodalshiftwithinthechemicalsupplychaintwohypotheticalscenarioshavebeenconstructedonthebasisofthedatacollectedintheCeficsurvey (Figure 6).Thefirstreducesroad’sshareofchemicaltonne-kmsfrom37%to27%andspreadsthedisplacedtrafficevenlyaroundtheotherlowercarbonmodes.ThesecondappliestheaveragemodalsplitofthetwocompaniesintheCeficsurveywhichsendthelowestproportionsoftheirfreighttonnagebyroad.Inthefirstscenario,anetCO2sav-

ingof15%wouldbeachieved,whileintheseconditwouldbealmost27%.

Allthecompaniesconsultedindicatedthattherewasapotentialtoshiftmorefreighttorailandwater-borneservices,thoughsomecompanieshavealreadyincreasedtheirrelativeuseoflowercarbonmodesoverthepastdecade.Modalshiftwasbeingconstrainedbyseveralfactors:

1.Shortlengthsofhaul:itwasarguedthat,inchemicaldistribution,railtendsonlytobecomecompetitivewherethelengthofhaulisgreaterthan400-500kms.Thethresholddistancepartlydependsonwhethertheoriginand/ordestinationarerail-connectedand,ifnot,theextenttowhichflowshavetodeviatefromthedirectroadroutetopassthroughintermodalterminals.ManyEuropeanchemicalplantslackarailconnection.

0

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Intermodal road-railPipelineShort SeaInland WaterwayRailRoad

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Impactof2ModalShiftScenariosonCO2EmissionsfromChemicalTransport

Current modal split

Greener modal split

Two greenest modal splits

%o

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nn

e-km

Greenermodalsplit: Marginalreallocationofroadfreighttolowercarbonmodes:15%lessCO2

Twogreenestmodalsplits: Applyingthetwo“greenest”modalsplitsinCeficsample:27%lessCO2

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25 Chemicalcompaniesin‘swaparrangements’supplycustomerswithstandardproducts,oftenbrandedbyaparticularcompany,fromthenearestproductionplant.CompanyAmaythereforesupplyCompanyB’scustomerifitsplantiscloserandviceversa.Thisminimisestheaveragedistanceoverwhichproductsaredistributed.

26 McKinnon,A.(2004)‘SupplyChainExcellenceintheEuropeanChemicalIndustry’EPCA/Cefic,Brussels.Braithwaite,A.(2005)‘MaximisingPerformance:ThePowerofSupplyChainCollaboration’EPCA/Cefic,Brussels.

2.Lengthofthetransittime:water-borneservices,inparticular,areoftentooslowtomeetcustomerorderleadtimerequirements.

3.Inadequatereliability:whilefulltrainloaddeliv-eriestendtobequitereliable,therecanbequitewidevariationsinthetransittimesforwagonloadtrafficontheEuropeanrailnetwork.

4.Lackofcostadvantage:modalswitchtorailorwaterstillcannotbejustifiedpurelyonenviron-mental/decarbonisationgrounds.Theremustalsobeacommercialcaseforitandthisisoftenlacking.

5.Capacitylimits:therailand,toalesserextent,waterwaynetworkscanlacksufficientcapacityonkeylinksatbusytimestoaccommodateasubstan-tialmodeshiftfromroad.

4.2Supplychainstructure

Forsomechemicalcompaniestheaveragelengthofhauliscurrentlyincreasingastheirmarketareasexpand.Thegradualcentralisationofproductionandinventoryinthechemicalindustryisalsoincreasingitsfreighttransportintensity.Thereislittleprospectintheforeseeablefutureforthesewell-establishedgeographicaltrendsbeingreversed.Thereare,never-theless,othermeasuresthatcompaniescantaketooffsetthesetrendsandpossiblyreducetheindustry’stransport-relatedcarbonfootprint.

Expandingswaparrangements25:byessentiallyreducingthedemandfortransportandeliminatingtonne-kms,swappingisanidealdecarbonisationmeasure.Itisalreadywidelyappliedinthechemicalindustryforcommodityproductssuchasethylene,propyleneandbenzene,though,intheopinionofseveralofthemanagersconsulted,itcouldbeexpanded.NogeneraldataisavailableonthecurrentlevelofswapsortheresultingsavingintransportandCO2emissions.Itisnotpossible,therefore,tomodelthepotentialsavingsfromafurtherincreaseinswaps.Toachieveasignificantincreaseinthelevelofswap-ping,itwouldprobablybenecessarytotreatasstan-dardcommoditiessomeproductsthatarecurrentlybrandedanddifferentiatedformarketingpurposes.

Disintermediation:inotherwords,allowinglargerconsignmentstobypassdistributorsandexternalwarehousesandtraveldirectlyfromplanttocustom-ers.Thiseliminatesalinkinthesupplychain,reduc-ingthe‘handlingfactor’andcuttingtotaltonne-kms.Thisalreadyhappens,evenwherethesaleisstillhandledbythechemicaldistributor,butisrelativelyuncommon.CompanieswouldhavetoensurethatthisdidnotcontraveneEUcompetitionrulesandthathighvehicleloadfactorsweremaintainedonthesedirectdeliveries.

Improvedrouting:thecircuitousroutingofprod-ucts,bothatasupplychainlevelviaintermodaltermi-nals,warehousesandtankcleaningstations,andontheroadandrailnetworkscangenerateunnecessarytonne-kms.Thereisprobablyscopeforoptimisingchemicaltransportoperationsatboththeselevels,

usingmoreadvancedlogisticsplanningandvehicleroutingtools.Inthecaseofhazardouschemicals,morecarefulroutingoftheproductsalsoreducestheriskofaccidentsandthusyieldssafetybenefits.

4.3Vehicleutilisation

Theloadingofroadandrailvehicles,tanksandcontainersinthechemicalindustryisalreadyhigh,particularlyattheupperlevelsofthesupplychain.Astransportcostsrepresentarelativelylargepropor-tionofproductvalue,companiesareunderintensepressuretomaximisevehicleutilisation.Pricingstruc-turesalsogivecustomersastrongincentivetotakefulltruck,tankandcontainerloads.Furtherdownthesupplychain,however,acombinationofjust-in-timepressuresandproductdiversificationismakingitdif-ficultforchemicalcompaniestomaintainloadfactors,letaloneincreasethem.Figure 7(page28)liststherangeoffactorsthattypicallyconstrainvehicleloadingandgroupsthemintofivecategories.Allofthesefac-torsimpingeonchemicaltransportoperations.Thereare,nevertheless,somemeasuresthatwouldpermitasignificantincreaseinvehiclefill.SeveralofthemarediscussedintheEPCA/Ceficreportspublishedin2003and2004onsupplychainexcellenceintheEuropeanchemicalindustry26.Theyallhavethemeritofsavingmoneyaswellascuttingcarbon:

Increaseinthemaximumvehicleweight:manytruckscarryingchemicalproductsreachtheirmaxi-mumlegalweightbeforealltheavailabledeck/cubic

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27 McKinnon,A.C.(2005)‘TheEconomicandEnvironmentalBenefitsofIncreasingMaximumTruckWeight:theBritishExperience’TransportationResearchpartD,vol.10,pp.77-95.

capacityisoccupied.Arelaxationofgovernmentweightrestrictionsfrom40to44tonnesacrossEuropewouldthereforepermitgreaterloadconsoli-dation.WithinthreeyearsoftheUKgovernmentincreasingthemaximumweightlimitto44tonnes,61%oftonne-kmsinthepetrolandpetroleumprod-uctscommodityclasswerebeingmovedintrucksregisteredatthishigherweightlimit27.Inestimatingthenetcarbonsavingsfromgreaterloadconsolida-tionin44tonnetrucks,allowancewouldhavetobemadeforanyerosionofchemicaltrafficfromrailandwater-bornemodes.If,however,theincreaseinmaxi-mumtruckweightwereaccompaniedbyanevengreaterincreaseintheweightlimitforintermodalunitsto50tonnes,ascurrentlyproposedbyCefic,anynegativeimpactonrailcouldbeneutralised.

Relaxmonthlyorder-invoicecycles:ThiswasidentifiedintheEPCA/Ceficsupplychainexcellenceinitiativeasanimportantefficiencyimprovementmeasure.Itwouldhelptoreducetheartificialpeak-ingoffreightflowsatthestartofthemonth.Theintervieweesinthepresentstudy,however,differedintheirassessmentofitspotentialbenefitinbothcostandcarbonterms.Onecompanyhadmovedtoasystemofrollingcreditmainlytoreducepeakingandrelievepressureonloadingbays.Thisisalsolikelytohavecutcarbonemissions,thoughthesesavingshadnotbeenquantified.

FIGURE7

FactorsConstrainingVehicleUtilisation

Market-related

Demand fluctuations

Lack of knowledge of loading opportunities

Health and safety regulations

Vehicle size and weight restrictions

Unreliable delivery schedules

Just-in-Time delivery

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Incompatibility of vehicles and products

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Regulatory

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28 McKinnon,A.C.‘IncreasingFuelEfficiencyintheRoadFreightSector’inMcKinnon,A.C.etal(eds)(2010)‘GreenLogistics’,KoganPage,London.

Improveloadingpractices:morecarefulloadingofconsignments,forexampleputtingmorestackableproductslowerinthevehicle,canimprovevehiclefill.Thisoftenrequiresbetterstafftrainingandsupervi-sion.

Expandingstoragecapacityatdeliverypoints:vehicleloadingispartlyconstrainedbythestor-agecapacityofsilosandtanksatthecustomer’spremises.Investmentinadditionalstoragecapacitycouldincreasetheproportionoffullloaddeliveries,particularlywhenlinkedwithvendormanagementofthecustomer’sinventory.

Vendormanagedinventory:theEPCA/Ceficsup-plychainexcellencestudieshighlightedthepotentialeconomicandenvironmentalbenefitsofVMIinthechemicalindustry.Fiveyearson,anevenstrongercasecannowbemade,intermsofdecarbonisation,forthewideradoptionofVMIinthissector.

Logisticalcollaboration:inotherindusties,mostnotablythefastmovingconsumergoodssector,logis-ticalcollaborationinitiativesaregatheringmomentumandachievingsignificantreductionsinvehicle-kms,transportenergyuseandemissions,mainlybyex-ploitingbackloadingopportunities.AsrevealedbytheEPCA/Ceficstudy,largepotentialexistsfortransportcollaborationintheEuropeanchemicalindustry.

Moreeffectivemanagementofdrivers’hours:drivers’hoursrestrictionslimittheamountofproductthatcanbedeliveredbyavehicle,particularlyonmultiple-droprounds.Althoughitisunlikelythat

theselegalrestrictionsaregoingberelaxed,itmaybepossiblethatimprovedroutingandschedulingwouldallowcompaniesandtheircarrierstoimproveaverageloadingwithinexistingconstraints.

4.4Fuelefficiency

Asmostchemicaltransportisoutsourced,responsibil-ityformaximisingfuelefficiencyrestswiththecarrier.‘Open-book’contractswithcarriersgiveshippersvisibilityoffuelconsumption,buttendonlytoapplytodedicatedtransportoperationsandappeartobecomparativelyrareinthechemicalindustry.Manycarrierswouldbeunwillingtodivulgeinformationabouttheirfuelefficiencyasthiscouldinfluencecommercialnegotiations.Atleasttwoofthechemi-calcompaniesconsulted,however,hadmanagedtoobtainthisinformationwithouttoomuchdifficultyfromcarriers.Ifthisinformationwereroutinelyprovided,carrierscouldbebenchmarkedontheirfuelperformance,ashashappenedintheUKintheseriesofgovernment-sponsoredtransportKPIssurveys.MostoftheKPIsthatchemicalcompaniesrequestfromtheirtransportprovidersrelatetoservicequalityratherthanoperationalorenergyefficiency.Bytakingagreaterinterestinthefuelefficiencystandardsandprogrammesoftheircarriers,chemicalcompaniesmightbeabletoexertmorepressureonthemtocutfuelconsumption.Onecantaketheview,however,thatcarriersarealreadyunderstrongcostpressuretominimisefuelconsumption,asitaccountsfor25-30%oftotalcosts,andthattheincrementaleffect

ofshippers‘takinggreaterinterest’inthesubjectcouldberelativelysmall.BenchmarkingsurveysintheUK,Germany,Canadaandothercountries,however,revealquitewidevariationsintheaveragefuelefficiencyofroadcarriers,eventhoseengaginginsimilartypesofhaulagework.Itwouldprobablybebeneficial,therefore,inbothcarbonandfinancialterms,toworkwiththeEuropeanChemicalTransportAssociationtoestablishanddisseminatebestpracticeinfuelmanagementamongthechemicalindustry’scarriercommunity.

Bestpracticeinfuelmanagementinvolvesapplyingarangeoffueleconomymeasures28.Thesecanbedividedintothreecategoriesrelatingtothedesign,maintenanceandoperationofvehicles.

4.4.1Vehicledesign

Fivevehicleattributeshaveastronginfluenceonfuelconsumption:

• Fuelefficiencyofnewtrucks:Therearesignifi-cantvariationsinthefuelefficiencyofdifferentmakesandmodelsofnewtruckonthemarket.Tradepublicationsreportvariationsof5-10%infuelconsumptionoverastandardtrialrouteforaparticularclassofvehicle.

• Enginepower-rating:Itiscommonforcom-paniestopurchasetractorunitsthataremorepowerfulthantheyneedtobeforaparticulartypeofdistributionoperation.

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• Vehicletare(i.e.empty)weight:Fuelefficiencycanalsobeenhancedbyreducingthistareweight.Useoflightermaterials,suchasaluminiumorcar-bonfibre,andtheremovalofunnecessaryfittingscansignificantlycutthetareweight.

• Aerodynamicprofiling:Aseriesofgoodpracticeguidesandcasestudies(e.g.DeptforTransport,2007)29havereportedpotentialfuelsavingsintherange6-20%forimprovedaerodynamicstylingoftrucks.Inarticulatedvehicles,bothtractorandtrailerneedtobestreamlinedeitheratthetimeofmanufactureorbysubsequentlyretrofittingwith‘fairings’.

• Installationoffueleconomydevices:Thesecanincludeanti-idlingcontrols,fuelmetresandspeedgovernors.

4.4.2Vehiclemaintenance

Inunder-maintainedvehiclestherearenumeroustechnicaldefectswhichcanpreventalorryfromoperatingatoptimumfuelefficiency.Theyincludefuelleaks,under-inflatedtyres,mis-alignmentofaxlesandpoorenginetuning.Moreregularandthoroughmaintenancecutsfuellossesassociatedwiththesedefects.

4.4.3Vehicleoperation

Thekeymeasurestobeintroducedunderthishead-ingare:

• Improveddrivertraining:Itisgenerallyacceptedthatdrivingstyleisthesinglegreatestinfluenceonfuelefficiency.Drivertrainingprogrammeshavebeenshowntoimprovefuelefficiencybyasmuchas8-10%.

• Driverincentiveschemes:Toderivelongertermbenefitfromdrivertraining,companieshavetogivedriversanincentivetocontinuedrivingfuel-efficiently.

• Reducingspeedlimits:Imposingtighterlimitsonvehiclespeedshasbeenshowntoachievesignifi-cantfuelsavingsoftenwithminimalincreasesintheorderleadtime.

• Fleetmanagement:Thisincludesassigningthe‘rightvehiclestotherightjobs’.Fleetmanage-mentcanalsobereinforcedbytheappointmentofa‘fuelchampion’whosejobitistoanalysethepatternoffuelconsumption,promotefuelsavinginitiativesandgenerallyinstilafuel-savingcultureintheworkforce.

4.5Carbonintensityoffuel

Goodfuelmanagementalsoincludesanassessmentofthecostsandbenefitsofusingalternativefuels,someofwhich,onalife-cycleorwell/fieldtowheelbasis,canyieldnetreductionsincarbonemissions.Aswithfueleconomymeasures,however,themaindeci-siononwhethertoswitchtobiofuelsorcompressednaturalgaswillcontinuetorestwiththecarrier.Chemicalcompaniescouldsignificantlycutthecarbonfootprintsoftheirtransportoperationsbypri-oritisingtheuseofrailinthosecountriesgeneratingalargeproportionoftheirelectricityfromnuclearandrenewalsources,wherethecommercialconditionsarefavourable.Itislikely,however,thattheywillgainonlylimitedcarbonbenefitfromthehybridisationandfullelectrificationoftrucks.Itisoperatorsofsmallerrigidvehiclesthatwillderivemostofthebenefitofhybridandplug-intechnology.Theheavyarticulatedtrucks,whicharethe‘work-horses’oftheEuropeanchemicalindustry,arelikelytocontinuerunningonconventionaldieselfuelfortheforeseeablefuture.RecentresearchfortheLowCarbonVehiclePartner-shipintheUKsuggeststhat,inthemediumterm,poweringheavygoodsvehicleswithbiomethanewillproveamuchmorecost-effectivemeansofdecarbo-nisinglongdistanceroadhaulageoperationsthantheuseofbiodieselblends.

30

29 DeptforTransport(2007)‘AerodynamicsforEfficientRoadFreightOperations’FreightBestPracticeProgramme,London.

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5. Cost Effectiveness of Decarbonisation Measures

A InvestinpipelinenetworkB Modalshifttorail/inland

waterwaysC ExpandswaparrangementsD UseofalternativefuelsE MoreefficientvehicleroutingF Enhancedvehicle

aerodynamicsG ImprovedvehicleutilisationH Drivertraininginfuel

efficientdriving

Thenumerousdecarbonisationmeasuresoutlinedintheprevioussectionvaryintheirrelativecostef-fectivenessasillustrated,inaratheridealisedfashion,inFigure 8.Thisfigureshowsatentativerankingofsomeofthemainmeasuresintermsoftheinitialset-upand/orcapitalcosts.Insufficientdataisavailableatpresenttocalibratethisgraph.Itshouldbenotedthatmanyofthesemeasureswouldhaveafairlyshortpaybackperiodand,onanongoingbasis,yieldbothcostandCO2savings.

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VariationsintheRelativeCost-effectivenessofDecarbonisationMeasures

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Drivertraininginfuelefficientdriving(over5years) 5 65-75

Financialincentiveformodalshifttorail(over3years) 3 90

StreamliningofHGVs(over5years) 5 130

CompanyadviceonHGVfuelefficiency(over5years) 5 190

Companyadviceonvehicleroutingandtelematics 5 240

TABLE9

EstimatedCost-effectivenessofCarbonReductionMeasures.

FIGURE9

CostandCarbonSavingsAccruingfromImprovedFuelEfficiency(fullyladen40tgrossweightarticulatedvehicle)

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ThedirectlinearrelationshipbetweencostandCO2reductionscanbeeasilydemonstratedinthecaseofmeasureswhichimprovefuelefficiency(Figure 9).

AnattempthasbeenmadeintheUKtoassessthecost-effectiveness,overa3-5yeartimeframe,ofarangeofcarbonreductionmeasuresinthefreighttransportsector(Table 9).

ResearchersattheEindhovenUniversityofTechno-logy30havealsomodelledtherelativecostandcarbonimpactsoflogisticalmeasuressuchasfreightmodalshiftandimprovedbackloadingusingdatafromcasestudycompanies.Theiranalysissuggeststhat,inthecaseoftwocompanies,carbonemissionreductionsofupto15%mightbeachievedatanetsavingintransportcosts (Figure 10).

EffortshavealsobeenmadetoassesstherelativeeffectsofarangeoflowcarbonvehicletechnologiesandpracticesoncostsandCO2emissions.Ananalysisofthistype,undertakenfortheUKgovernment31,assessedtherelativedegreeofriskinthedevelop-mentandapplicationofthesemeasures(Figure 11).Itidentifiedmeasuressuchastraininginsafeandfuelefficientdriving(SAFED),lowrollingresistancetyresandtheretrofittingofaerodynamicdevices(‘aerofairings’)tovehiclesasofferinglargereductionsintail-pipeCO2emissionsatrelativelylowcost.

30 JanC.Fransoo,TarkanTan,A.G.(Ton)deKok,andHennyP.G.vanOoijen(2010)‘Measuringandregulatingcarbonemissionsintransportation’,WorkingPaper,SchoolofIndustrialEngineering,EindhovenUniversityofTechnology.

31 Ricardo(2009)‘ReviewofLowCarbonTechnologiesforHeavyGoodsVehicles’UKDeptforTransport,London.

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EffectsofFreightModalShiftonTransportCostsandCO2Emissions

FIGURE11

RelativeCost-effectivenessofLowCarbonTruckTechnologiesandPractices(AdaptedfromRicardo/UKDepartmentforTransport)31

-2

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mechanical turbocompound

electric turbocompound

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Themeasurementofcarbonemissionsfromfreighttransportoperationsisstillatanearlystageinmostindustrialsectors.ThereviewofinitiativesinothersectorssuggeststhattheEuropeanchemicalindustryisrelativelyprogressiveinitseffortstocarbonfoot-printitsfreighttransportoperations,despitethatfactthattheyaccountforonlyasmallproportionoftotalCO2emissions.Atpresent,thisindustry,likeothers,haslittlechoicebuttoadoptthe‘activity-based’approachtomeasuringtransport-relatedemissions,applyingstandardisedcarbonemissionfactorstoestimatesoftonne-kmsmovedbydifferentmodes.

Itwillbedesirable,however,tomigratetoan‘ener-gy-based’methodofcalculationusingfuelconsump-tiondataprovidedbycarriers.ThiswillpermitmuchmoreaccurateestimationofCO2emissions.Asitmaytakeseveralyearstoachievethisgoal,itmaybepossible,asaninterimmeasure,todevelopa‘refinedactivity-based’approachinvolvingclosercollabo-rationbetweenshippersandcarriers.ThiswouldincorporateintotheCO2calculationsampledataondistancestravelled,consignmentrouting,backloadingandfuelefficiencyprovidedbycarrierstopermitthecalibrationofemissionfactorsspecifictothechemicalindustry(Figure 12).Thiscouldleadinthemediumtermtofulloperational,energyandcarbon‘transpa-rency’betweenshippersandcarriers.

Therefinementofthecarbonmeasurementprocesswillhelpthechemicalindustrytodevelopatrans-portdecarbonisationstrategyembracingthevariousmeasuresoutlinedinthisreport.Thesemeasurescanbetargetedonfivekeyfreighttransportparameters:modalsplit,supplychainstructure,vehicleutilisation,energyefficiencyandcarbonintensityoftheenergy.Thefirsttwoparametersareunderdirectcontrolofchemicalcompanies.Responsibilityforvehicleutili-sationissharedwithcarriers,whileenergyefficiencyandthecarboncontentoffuelismuchmorestronglyinfluencedbythelogisticsprovider.

Measuresthatchemicalcompanies,andtheircarriers,haveintroducedinrecentyearsprimarilytoimprovetheeconomicefficiencyoftransportwillalsohavecutcarbon.Moreresearchisrequired,however,toassesstherelativecosteffectivenessofabroaderrangeofdecarbonisationmeasures.

Fromdiscussionswithchemicallogisticsmanagers,itseemsthatthereisstillareasonableamountof‘lowhangingfruit’tobeharvested,whichwillbeself-fi-nancingintheshorttomediumterm,thoughrequiresomeinitialinvestment.Someoftheseself-financing,quickpaybackmeasurescanbeimplementedbyindi-vidualcompanies,whileotherswillrequireinter-com-panycollaborationasrecommendedinearlierreportsontheEuropeanchemicalsupplychain32.

32 McKinnon,(2004)op.cit.;Braithwaite(2005)op.cit.

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FIGURE12

PossibleEvolutionofCarbonMeasurementProcess

Shipper-dependent

NOT SPECIFIC TO

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sector

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supply chain tier

EMISSION FACTORS

IMPROVINGCALIBRATION

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Biographies

ProfessorAlanMcKinnonisdirectoroftheLogisticsResearchCentreatHeriot-WattUniversity,Edinburgh,UK.AgraduateoftheuniversitiesofAberdeen,BritishColumbiaandLondon,hehasbeenresearchingandteachinginfreighttransport/logisticsforthirtyyearsandhaspublishedextensivelyinjournalsandbooks.AlanhasconductedstudiesfornumerouspublicandprivatesectororganisationsandbeenanadvisertoseveralUKgovernmentdepartmentsandparliamentarycommitteesandvariousinternationalagencies,includingtheInternationalTransportForumandInternationalEnergyAgency.In2003-4hefacilitatedthe‘SupplyChainExcellence’initiativeoftheEuropeanPetrochemicalAssociationandCefic.Inrecentyearsmuchofhisresearchhasfocusedonthedecarbonisationoflogistics.AlanisamemberofWorldEconomicForum’sGlobalAgendaCouncilontheFutureofTransportationandrecipientoftheSirRobertLawrenceAward,thehighestdistinctionoftheUKCharteredInstituteofLogisticsandTransport.

DrMajaPiecykisaLecturerintheLogisticsResearchCentre,basedatHeriot-WattUniversity,Edinburgh.Herresearchinterestsfocusontheenvironmentalperformanceofsupplychainsandsustainabilityoffreighttransportoperations.MuchofhercurrentworkcentresontheCO2auditingofbusinessesandforecastingoflong-termtrendsinenergydemandandtheenvironmentalimpactsoflogistics.

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Special thanks to all chemical and transport companies who kindly made pictures available to illustrate this report.

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This report was prepared and published with the support of

des

ign

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.beCefic aisbl - European Chemical Industry Council

Avenue E. van Nieuwenhuyselaan 41160 Brussels - BelgiumT +32 2 676 72 11F +32 2 676 73 00www.cefic.org