C ABCs

D of Carbon
4
C
Emissions
D Accounting
M
May Antoniette Ajero
Climate Change Information Center
June 19, 2003
C What is carbon emissions
accounting?
D
4 Carbon accounting records,
summarizes and reports the quantity
C of carbon emissions by sources and
D removals by sinks as a direct result
M from human activities or natural
processes that have been affected
by human activities
C
Why conduct an accounting of
carbon emissions?
D provide information on which to build
4 an effective strategy to manage GHG
C emissions
prerequisite for participation in GHG
D trading markets
M demonstrate compliance with
government regulations, if any is
already in place
 UNFCCC Article 4 (a)
C
Develop, periodically update,
D publish and make available to the
4 Conference of Parties national
C inventories of anthropogenic
emissions by sources and removals
D by sinks of all greenhouse gases not
M controlled by the Montreal Protocol,
using comparable
methodologies to be agreed upon
by the Conference of Parties
 Why is there a need to use a
C standard methodology?
D
4 allows comparability across all
C countries
D ensures consistency,
M transparency and verifiability of
the inventory
 Development of the methodology guidelines
for national GHG inventories:
C
D OECD Report on Estimation of GHG Emissions
and Sinks (1991)
4 IPCC Guidelines for National GHG Inventories
C (1995)

D Revised IPCC Guidelines for National

GHG Inventories (1996)
M *Good Practice Guidance and Uncertainty
Management (2000)
 Revised IPCC Guidelines for National GHG
Inventories
the Revised 1996 IPCC Guidelines for National
C Greenhouse Gas Inventories should be used as
"methodologies for estimating anthropogenic
D emissions by sources and removals by sinks of
greenhouse gases" in calculation of legally-binding
4 targets during the first commitment period. - COP3
C held in 1997 in Kyoto

D consists of three volumes

M The Reporting Instructions (Volume 1)

The Workbook (Volume 2)
The Reference Manual (Volume 3)
 A good GHG
accounting/inventory and
C reporting must be...
D
relevant
4 comparable
complete
C verifiable
consistent
D

M transparent
accurate
 Relevance
- clearly defines and reflects
C GHG emissions of the chosen
boundary and the decision making
D needs of the users
4 Completeness
C - all GHG emission sources and
activities within chosen boundaries are
D accounted
M - any specific exclusions are
stated and justified
 Consistency
- same approach and practices in
the calculation and presentation of data
C allows meaningful comparison of
D emissions performance over time.
4
Transparency
C
- relevant issues are addressed in
D a factual and coherent manner based
M on a clear audit trail.
- important assumptions are
disclosed
- appropriate references of
methods used are made.
 Accuracy
- a credible calculation and
reporting system with the precision
C needed for their intended use is
D practiced.
- uncertainties which may arise
4 from default assumptions and
C methods are kept at a minimum
Comparable
D - methods used complies and
M adheres to internationally accepted
methodology (such as the IPCC
Guidelines)
 Carbon emissions
emissions of carbon dioxide,
methane and nitrous oxide
C
in equivalent carbon dioxide units
D
4 Global Warming Potential
C Carbon Dioxide = 1 CO2 equivalent
D Methane, CH4 = 21 CO2 equivalents
M Nitrous Oxide, N2O = 310 CO2
equivalents
Other Gases HFCs, PFCs, and SF6 =
range 600 23900x CO2 equivalents
 Steps in carbon accounting:

C 1. Identify boundary/ies to be covered

D 2. Identify emission sources to be

covered
4
3. Select an emissions calculation
C approach
D
4. Collect activity data and choose
M emission factors
5. Apply calculation tool to estimate
emissions
 Levels/boundaries of accounting
organizational
operational
C global (companies)
D national
geographical

4 project - based

C community/
project
D
M
 Direct GHG emissions
are direct emissions from activities or
sources immediately within the set
C boundary / project. e.g. vehicle emissions

D Indirect GHG emissions

are emissions that are a consequence
4 of the activities of the boundary/project
e.g. electricity use
C
On-site and Off-site Emissions
D (geographical)
M emissions that take place at a project
site/ emissions that result from activity
elsewhere
Emission Categories
 Upstream emissions (includes
embedded/embodied)
material impacts of activities that relate
C to the project activity but occur before it
D Downstream emissions
4 to the
material impacts of activities that relate
project but occur after the project
C activity
Full cycle accounting
D a comprehensive accounting of all
the significant emissions related to
M a project

Emission Categories
 C
Direct / on-site emission
D
4 off-site emission
C
Direct / off-site emission
D
M

Types of Emissions
 Who can do the
C accounting?
have previous knowledge on the
D basics of climate change;
4 are proficient in basic mathematical
C operations;

D are computer literate (i.e. Excel); and

preferably,
M
are familiar with activity or project
process being accounted for carbon
emissions
 EQUATION
C
D GHG = A x EF
4
C where,
D GHG = emissions (amount of CO2 or CH4,
etc)
M A = activity data (liters of fuel, kg of
cement)
EF = emission factor (kg CO2/liter of fuel,
kgCO2/kg cement)
 GHG = A x EF
C A (activity data) - data on the magnitude of
human activity resulting in emissions or
D removals taking place during a given period of
time (liters of fuel consumed, etc)
4
C EF (emission factor) - a coefficient that relates
the activity data to the amount of chemical
D compound which is the source of later
emissions.
M - Emission factors are often
based on a sample of measurement data,
averaged to develop a representative rate of
emission for a given activity level under a given
set of operating conditions. (amount of
 Base year - the year for which the inventory is to
be taken
Anthropogenic emissions - Emissions of
C greenhouse gases, greenhouse gas precursors,
and aerosols associated with human activities.
D Default Method - The IPCC Guidelines
4 recommends a number of assumptions and data
for use in the estimation of greenhouse gas
C emissions and removals primarily to provide
users with a starting point from which they can
D develop their own.
M Top-down Approach (Aggregate)- Evaluate the
system from aggregate economic variables.
(MACRO)
Bottom-up Approach (Disaggregated)- A
modeling approach that includes technological
 Sample Emissions Calculation:
Emissions from Cement
C Production
D
4 GHG = A x EF
C tons CO2 = tons of cement
D produced x 0.4985 tons CO2/ton of
cement produced
M
 The Typical IPCC
sector
Worksheet Source category

C
D
4
C
D
M
A EF GHG
Revised 1996 IPCC Guidelines for National GHG Inventories: Workbook
page 2.61
 1994 Philippine GHG Inventory
Results Module Industry
Submodule Cement Production

C Worksheet 2-1A
Sheet 1 of 2 CO2 Emissions

D A
STEP 1
B C D
Quantity of Clinker or Cement Produced CO2 Emitted
4 (t)
Emission Factor CO2 Emitted (t)

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

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

D Tons cement
X
Tons of CO2
X
Gg of CO2
= Gg of CO2
produced Tons cement 10 Tons of
3

M produced CO2
 Prefixes, Conversion Factors and
Acronyms

C
D
4
C
D
M

Revised 1996 IPCC Guidelines for National GHG Inventories:

Reporting Instructions, page INTROD.4
 Prefixes, Conversion Factors and
Acronyms

C
D
4
C
D
M

Revised 1996 IPCC Guidelines for National GHG Inventories:

Reporting Instructions, page INTROD.4
 Prefixes, Conversion Factors and
Acronyms

C
D
4
C
D
M

Revised 1996 IPCC Guidelines for National GHG Inventories:

Reporting Instructions, page INTROD.5
 Prefixes, Conversion Factors and
Acronyms

C
D
4
C
D
M

Revised 1996 IPCC Guidelines for National GHG Inventories:

Reporting Instructions, page INTROD.5
 Emissions Reduction
GHG = A x EF
C To reduce the value of GHG:
D
lower the value of A = decreasing
4 frequency or magnitude of activity
C or emission source;
D lower the value of Emission factor
= shifting into a more efficient
M technology, less carbon intensive
activity;
or do both at the same time
 Emissions Reduction
C Business as usual:

D CO2
emissio
baseline

4 n

C Reduced emissions
D (CER)

M Project
implemente
d

Start End of year

of project
project
 Other terms used for Scenarios:

C Baseline = Business as Usual (BAU

D scenario)
4 = Reference Scenario
= Without Project Scenario
C
Project = Alternative Project scenario
D
= With Project Scenario
M
 Emissions Reduction Calculations

- objective is to define reference and project

scenarios and determine the net difference in
C GHG emissions between these two scenarios
D GHGredn = GHGbase GHGproj
4 = emissions reduction due to
C existence of the project

D GHGbase = an estimation of emissions

M assuming that no alternative project
was implemented
GHGproj = measures the GHG emissions
following project implementation
 GHGredn = GHGbase GHGproj
= (A*EF)base (A*EF)proj
C
*So that, in renewable energy projects
D wherein emission factors of the project are
4 considered zero: zero
GHGredn = (A*EF)base (A*0)proj
C
D = (A*EF)base

M GHGredn = GHGbase

* hydro, solar, wind - excludes leakage and other direct and

indirect emissions
 CDM Eligible Projects
C

Renewable energy
Fuel switching Energy

D

End-use energy efficiency improvements
Supply-side energy efficiency improvement
Industries

4 Agriculture (reduction of CH 4 & NO2

emissions)
C Industrial processes (CO2 from cement,
HFCs, etc)
D Sink projects (only afforestation &
reforestation)
M
 Sample CDM Projects and Emissions
Reduction

1. Renewable Energy Projects (Hydro, Wind,

C Biomass)
D - lower emission factor = CO2 savings
2. Landfill Gas to Energy Projects
4 - capture and utilize methane from landfill;
C and
displace fossil fuel used to generate
D electricity
M 3.=Energy Efficiency
CO2 savings and Projects
CH4 savings
- lower electricity consumption due to
more efficient equipment or appliance (lower
activity data) = CO2 savings
 Sample CDM Projects and Emissions
Reduction Calculation

C Renewable Energy Projects

D - lower emission factor = CO2 savings

4 Hydro Aquarius Hydrothermal

C Project

D Wind Burgos Wind Energy Project

Hands-on Exercises:
M
Wind Wigton Wind Farm Project
 Some References for estimating CO2 emissions
and emissions reduction:
Revised IPCC Guidelines for National GHG
C Inventories (1996)

D GHG Assessment Handbook, 1998 World

Bank
4 GHG Protocol www.ghgprotocol.org
C IPCC Database on Greenhouse Gas Emission
D Factors (EFDB) - http://www.ipcc-
nggip.iges.or.jp/EFDB/main.php
M USEPA Emission Inventory Improvement
Program
http://www.epa.gov/ttn/chief/eiip/techreport/volume08/index.
html