sectoral decarbonization approach (sda)

Sectoral Decarbonization Approach (SDA)Science-based Targets

Giel Linthorst, Programme leader Science-based Targets

23/02/2015

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Sectoral Decarbonization Approach (SDA)

23/02/2015 Giel Linthorst, Programme leader Science-based Targets

• Develop by CDP, WRI and WWF

with Ecofys’ technical support

• Freely available methodology

that allows companies to set

emission reduction targets in line

with climate science

• Based on the least-cost modelled

2 oC scenario (2DS) developed by

the International Energy Agency

(IEA) as part of its publication,

Energy Technology Perspectives

2014© Science Based Targets. All Rights Reserved.

© ECOFYS | |

SDA – Development process


Methodology

principles

Technical advisory group Technical consultantSteering committee

Draft

methodology

Stakeholder

workshops

Updated

methodology

Public

consultation

Finalize

methodology

January

2014

June

2014

October

2014

March

2015

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SDA Approach (Methodology & Tool) Input entered by

the company

Science-based targets

Representative Concentration

Pahway

Global Carbon Budget

Temperature increase threshold

Sectoral Carbon Budget

Sectoral Activity

Projections

Sectoral Intensity

SDA – Methodology overview


Representative Concentration

Pathway

SDA (Methodology & Tool)

Sectoral Activity and Electricity Use Projections

SectoralIntensities

(Scope 1 & 2)

IPCC

CLIMATE CHANGE 2013

The Physical Science Basis

IEA

Energy Technology

Perspectives 2014

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SDA – From global carbon budget to sectors

0

5

10

15

20

25

30

35

2010 2020 2030 2040 2050

Dir

ect

CO

2 e

mis

sio

ns (

GtC

O2)

Power generation Cement Iron and steel

Aluminium Chemicals and petrochemicals Pulp and paper

Other industry Light road passenger transport Heavy road passenger transport

Rail passenger transport Aviation passenger transport Other transport

Service buildings

Total carbon budget

1054 GtCO2


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SDA - Sectoral activity indicators


Buildings Service / Commercial buildings Homogeneous m2

Other transport Heterogeneous $ value-added

Aviation passenger transport Passenger kilometer

Rail passenger transport Passenger kilometer

Heavy road passenger transport Passenger kilometer

Light road passenger transport Passenger kilometer

Other Processing & Manufacturing Industry $ value-added

Chemicals & Petrochemicals $ value-added

Pulp & Paper Tonnes of paper & paperboard

Aluminium Tonnes of aluminium

Iron & Steel Tonnes of steel

Cement Tonnes of cement

Electricity Power Generation Homogeneous MWh

Transport

Industry

Homogeneous

Homogeneous

Heterogeneous

© ECOFYS | | 23/02/2015 Giel Linthorst, Programme leader Science-based Targets

SDA – From sector to company targets: Convergence

and compression principle

Ho

mo

gen

eo

us

Hete

ro

gen

eo

us

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IEA 2DS input

• Sector activity 2010-2050• Sector CO2 emissions 2010-

2050• Sector electricity use 2010-

2050

Company inputs

• Sector allocation• Base year• CO2e emissions (base year)• Electricity use (base year)• Activity (base year) • Expected activity growth• Target year(s)

Calculation Output

Scope 1 & Scope 2 company intensity

pathways

Scope 1+2 company absolute CO2 emission

target

Creating the company intensity pathway to 2050 based either on convergence or compression

Sector Scope 1 & Scope 2 CO2 emission intensity

pathways

Company base year CO2eemission intensity

1

2

3 4

5

6

7

SDA - Schematic overview of methodology


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SDA – Example: fictional beverage company


> International beverage company

– $84 million gross profit in 2013

– Annual production of 1,1 billion juice packs

– Purchased paper: 50,000 tonnes

– Predicted annual activity growth of 3%

– Target year: 2020

> Emissions included in Science-based target setting:

– Scope 1 emissions from operational processes: 18,000 tonnes of CO2e

– Scope 1 emissions from own fleet: 10,000 tonnes of CO2e

– Scope 2 emissions from operational processes: 20,500 tonnes of CO2e

– Scope 3 emissions from logistics: 22,500 tonnes of CO2e

– Scope 3 emissions from purchased paper: 62,000 tonnes of CO2e

Scope 1 emissions operations

Scope 1 emissions fleet

Scope 2 emissions operations

Scope 3 emissions logistics

Scope 3 emissions paper

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Foto

lia.c

om

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Step 1. Allocate company’s activities to SDA-sectors


Scope 1 emissions

from operational

processes

Scope 1 emissions

from fleet

Scope 2 emissions

from operational

processes

Scope 3 emissions

from logistics

Scope 3 emissions

from purchased paper

Other industry $ Value-added

Air/road passenger

transport

Other transport

Passenger kilometer

$ Value-added

Other transport $ Value-added

Pulp & Paper Tonnes of paper

© ECOFYS | |

Step 2. Enter GHG data in the tool


Sector 1 Company input Unit

Select sector 1: Other industry

Select subsector: Manufacture of beverages

Selected sector: Manufacture of beverages

Activities in base year: 84,000,000 $ value added (2013)

Annual activity growth rate: 3.00 % per year

Electricity use in base year: 42,500,000 kWh

Scope 1 emissions: 18,000 tonne CO2


Sector 2 Company input Unit

Select sector 2: Pulp and paper

Select subsector:

Selected sector: Pulp and paper

Activities in base year: 50,000 tonnes paper and cardboard

Annual activity growth rate: 3.00 % per year

Electricity use in base year: kWh



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Step 2. Result for Scope 1 & 2 Operational process


-39% in 2020 -26% in 2020

Manufacture of beverages

Target Unit 2013 2020 %

Scope 1 Carbon intensity target gCO2/$ value added 214 130 -39%

Scope 2 Carbon intensity target gCO2/$ value added 244 180 -26%

Scope 1 and 2 Carbon intensity target gCO2/$ value added 458 311 -32%

Absolute emissions target tCO2 38,500 32,085 -17%

Scope 1

Carbon intensity target

Scope 2


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Step 2. Result for Scope 3 Purchased paper


Scope 2 carbon intensity

-23% in 2020

Scope 1


Scope 2


Purchased paper

Target Unit 2013 2020 %

Scope 1 Carbon intensity target tCO2/t paper 0.74 0.60 -19%

Scope 2 Carbon intensity target tCO2/t paper 0.50 0.37 -25%

Scope 1 and 2 Carbon intensity target tCO2/t paper 1.24 0.97 -22%

Absolute emissions target tCO2 62,000 59,652 -4%

-19% in 2020 -25% in 2020-19% in 2020

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SDA – Key characteristics


1. The methodology is based on the best of science and a least-cost

modelled 2°C scenario (IEA 2DS)

2. The methodology combines sectoral emissions pathways with sectoral activity

projections from IEA 2DS to construct sectoral intensity pathways

3. Both carbon intensity and absolute targets can be set. The methodology

uses physical intensity indicators for homogenous sectors and monetary

intensity indicators ($ value added) for heterogeneous sectors

4. The methodology can be used to set scope 1 and 2 targets and to set targets

for a selection of scope 3 categories

5. The methodology is flexible to set targets for each year until 2050

6. The methodology will be improved continuously based on new insights

© ECOFYS | |

For more information, please contact:

> Giel Linthorst

Programme Leader Science Based Targets

[email protected]

www.ecofys.com


mailto:[email protected]

http://www.ecofys.com/en/project/science-based-targets/

sectoral decarbonization approach (sda)

Technology

company targets

base year activity base

linewith climate science

sector electricity

ds input sector activity

sector co2 emissions

setemission reduction

petrochemicals pulp