carbon neutrality 2011 03 23

Most have an opinion, but what are the facts?Carbon Neutrality

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Sustainable Business Consulting Pty LtdLevel 32, 101 Miller Street, North Sydney 2060P: 1300 102 195 | F: +61 2 8079 6101www.sustainablebizconsulting.com.au ACN 140 233 932 | ABN 46 506 219 241

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Agenda

Introduction to offsetsTypes of offsetsOffset projectsScopesBoundaries for carbon neutralityCarbon accounting – arriving at zero net emissionsEPA Victoria’s carbon inventory as an exampleBest way of arriving at carbon neutralityHow do you purchase offsets?Company examples

Is There Anything Specific You Would Like Me To Cover Today?

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Introduction to Offsets

1 carbon offset represents the reduction of 1 tonne of CO2-e

You are paying someone else to reduce emissions on your behalf

Compliance versus Voluntary Market

C V

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Types of offsets

Renewable energy (solar, wind, biomass, hydro)Energy efficiency (manufacturing processes, distribution of energy efficient products)Forestry and bio sequestration (most common in voluntary market)Methane (livestock, landfill, coal)Industrial gas destruction

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Offset Projects - CDM Best Pictures Contest 2010

CDM Project: 0740 Egypt, Zafarana Wind Power Plant Project

CDM Project: 1754 India CFL distributionCDM PROJECT: 1229 Chile, N2O Destruction

Project in the Tail Gas of the Nitric Acid PlantCDM Project: 0268 Brazil, Lages Methane Avoidance Project

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Scopes

Source: http://www.cleanair-coolplanet.org/documents/zero.pdf

There is no universal definition

The Confusing World ofCarbon Neutrality

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What Can Be Carbon Neutral?

OrganisationProductEventTripActivity

Boun

darie

s

Source: http://www.cleanair-coolplanet.org/documents/zero.pdf

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Carbon Accounting – Arriving At Zero Net Emissions

Scope 1 emissions+

Scope 2 emissions +

Scope 3 emissions=

Gross emissions-

Offsets=

Net emissionsIdeally you will have zero emissions here

Organisational Carbon Footprint

CARBON NEUTRAL POSITION

Exam

ple

– Ca

rbon

Inve

ntor

y EP

A VI

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… EPA VIC Example Continued

Scope 1 435.49

Scope 2 2744.29

Scope 3 1389.01

Total 1 + 2 + 3 4568.73

even less than zero!

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The Best Way Of Arriving At Carbon Neutrality

Source: http://www.cleanair-coolplanet.org/documents/zero.pdf

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Purchasing Offsets

How many do you need to buy?How much will they cost? ($5 - $50 per tonne of CO2-e)

What kind of offset will you buy?Organisational valuesType and location of offset projectCertification to a standard? (Gold Standard, CDM, VCS, VER+)Co-benefits? (Sustainable development in developing country, creation of habitat for local flora and fauna, etc.)

Go to carbonoffsetguide.com.au and choose one that suits your organisationOnly buy offsets from retailers who are able to address all your queries Take your time and do your researchEnsure that the offsets get retiredAnd finally: communicate your efforts to your stakeholders, be transparent

Case Studies

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City of Sydney – Carbon Neutral Organisation

1. Measure2. Avoid and reduce3. Switch4. Offset

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News Corp – Carbon Neutral Organisation

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Qantas – Fly Carbon Neutral

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Take-away Messages

1. Avoid and reduce first

2. Understand & communicate your boundaries

3. Only buy reputable offsets

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Thanks For Attending This Presentation Sustainable Business Consulting

We are happy to help you further with your Carbon Management needs

Appendices

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Why Do Companies Buy Offsets

To internalise carbon costs and raise carbon awarenessTo meet business goals – reduction of carbon footprintTo gain market experience to prepare for a potential future ETSTo enhance the brand imageTo attract investors (demonstrates proper handling of carbon risk)To attract and retain employees

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ACCC And Carbon Claims

Illegal for a business to make an environmental claim (e.g., ‘carbon neutral’) that is misleading or deceptive, or is likely to mislead or deceive consumersFinancial penalties for false representations:

$1.1 m for businesses$220,000 for individuals

When making claims of carbon neutrality, spell out exactly what is included in your claimAvoid claims like ‘low carbon’Don’t make claims about aspirational goals (‘going carbon neutral by 2030’)Be ACCURATE and SPECIFIC with your claimsIf you use a logo of a scheme that not many customers are familiar with, give your customers an opportunity to find out more

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The NCOS Standard – Following On From Greenhouse Friendly

Preparation of a GHG inventoryPreparation of a GHG reportInclusion of all scope 1 and 2 emission sourcesInclusion of the following scope 3 emission sources:

Business travelDisposal of wastePaper use

Emissions management plan, including strategy for carbon reductionOffsets need to be retired on a registry (offsets allowed: CDM, Gold Standard, VCS, note: no GreenPower!)Application to use NCOS logoPublication of carbon footprint/emissions reduction activities/offsets mandatory

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EPA VIC Journey To Carbon Neutrality

EPA VIC has achieved ‘carbon neutrality’ for the first time for FY 2005–06First step was to create a robust inventoryEPA Victoria looked for offset products that

Were accredited to a recognised standardWere independently verifiedProvided other environmental benefits

They also asked for documentation demonstrating that the offsets were robust