ghg protocol program initiatives - wri indonesia · renewable energy purchases and related...

GHG Protocol Program InitiativesKementrian Perindustrian, 31 Oct ‘12

________________________________________________________________________

A Corporate Accounting and Reporting Standard INDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT

________________________________________________________________________

A Corporate Accounting and Reporting Standard INDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT

• Launched in 1998 by • Multi-stakeholder partnership of businesses, NGOs, governments and others

• Mission: to develop internationally accepted greenhouse gas (GHG) accounting and reporting standards for business and to promote their broad adoption

What is the Greenhouse Gas Protocol?

________________________________________________________________________

A Corporate Accounting and Reporting Standard INDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT

GHGP adopted by 60%+ of Fortune 500 companies

Reporting - Common practice in Leading Companies

________________________________________________________________________

A Corporate Accounting and Reporting Standard INDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT

Widespread adoption of Corporate Standard

• To build GHG accounting capacity

• To mainstream GHG accounting as a business practice

• To register GHG emission and reductions

• To track progress toward reduction targets

• To support national climate change efforts

• To support GHG trading programs

• To provide information to investors and stakeholders

________________________________________________________________________

A Corporate Accounting and Reporting Standard INDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT

Why a GHG Program?

• Identifying risks from future GHG constraint

• Reduce impact on the global environment

• Cost saving through energy efficiency

• Public relations-consumer demand

• Reporting to voluntary program

• To keep up with competition (by common practice)

________________________________________________________________________

A Corporate Accounting and Reporting Standard INDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT

Why do companies report?

• Management of GHG risks and identification of reduction opportunities

• Public reporting and participation in voluntary GHG programs

• Participation in mandatory GHG reporting programs and GHG markets

• Recognition for early voluntary action

Business Value of a GHG Inventory

________________________________________________________________________

A Corporate Accounting and Reporting StandardINDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT

Mexico:

• Cost reduction through energy efficiency and conservation

Brazil:

• More competitive International market where sustainability measures are increasingly demanded.________________________________________________________________________

A Corporate Accounting and Reporting Standard INDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT

How GHG help Businesses? Lesson Learn

How to account for renewable energy

purchases and related

instruments

Summer 2012

Membership in stakeholder group

Green Power Guidelines

How to account for reductions from

mitigation policies and actions

Late 2013

Membership in stakeholder group; road-test protocol

Policy Accounting Protocol

How to accountfor emissions from

agriculture companies

Sept 2012

Membership in stakeholder group; road-test protocol

AgricultureProtocol

How to account for full value chain emissions from

cities

Late 2013

Membership in stakeholder group; road-test protocol

City Accounting Protocol

Protocols and guidelines under development

date available

how to participate

protocol overview

________________________________________________________________________

A Corporate Accounting and Reporting Standard INDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT

Available Protocols and Standards

________________________________________________________________________

A Corporate Accounting and Reporting Standard INDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT

Indirect EmissionsDirect Emissions

• Direct: emissions from sources owned or controlled by the reporting company

• Indirect: emissions that are a consequence of the activities of the reporting company but occur at sources owned or controlled by another company

Direct and Indirect Emissions

Your factory Power plant(owned by utility company)

Maintenance service(owned by another company)

Indirect Emissions

________________________________________________________________________

A Corporate Accounting and Reporting Standard INDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT

Classifying Emissions: Scopes

Direct

Indirect

Scope 1

Scope 2

Scope 3

Emissions

________________________________________________________________________

A Corporate Accounting and Reporting Standard INDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT

Scopes 1, 2 and 3

Account for and report emissions from each scope separately________________________________________________________________________

A Corporate Accounting and Reporting Standard INDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT

Find GWP value

GHG GWPCO2 1

• How would you calculate the CO2 emissions from travel in company-owned vehicles?

Example: Transportation Emissions

Find activity dataConsult fuel purchase records

or miles traveled by vehicles

Find emission factorConsult GHGP

emission factors

CalculateMultiply activity data by emission

factor

CalculateMultiply t of emissions

by GWP

x =

x =

activity data t de emissionsemission factor

GWP CO2e of emissionst de emissions

100 liters of gasoline 0.0023 t CO2/liter 0.23 t CO2

1 0.23 t CO2e

________________________________________________________________________

A Corporate Accounting and Reporting Standard INDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT

Example: Electricity Emissions

How would you calculate the CH4 (methane) emissions from use of purchased electricity?

Find activity dataConsult electricity bill

Find emission factorConsult GHGP

emission factors

CalculateMultiply activity data by emission

factor

Find GWP value CalculateMultiply t of emissions by GWP

x =

x =

activity data t of emissionsEmission factor

GWP CO2e of emissionst of emissions

1,000 GWh of electricity 0.039 t CH4/GWh 39 t CH4

21 819 t CO2e

GHG GWPCO2 21

________________________________________________________________________

A Corporate Accounting and Reporting Standard INDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT

Summary

Identify Sourcesstationary, mobile, process, fugitive

Select Calculation Approachdirect measurement, stoichiometry, estimate emissions

Collect Data and Choose Emissions Factors

Apply Calculation Toolshttp://www.ghgprotocol.org/calculation-tools

Roll-up Data to Corporate Levelreport activity data and emissions estimates to corporate

x = x =Activity data

t of emissions

Emission factor

GWPCO2e of

emissionst of

emissions

________________________________________________________________________

A Corporate Accounting and Reporting Standard INDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT

T H A N K Y O U

________________________________________________________________________

A Corporate Accounting and Reporting Standard INDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT

“What you can’t measure, you cannot manage. What you can’t manage, you cannot change.”