GHG schemes addressingclimate changeHow ISOstandards help
ISO in briefISO has a membership of 163* national      communication technologies, the envi-standards bodies from countrie...
aAcknowledgementsISO gratefully acknowledges the ded-           States), Dr.  Klaus Radunsky (Austria),icated work of :   ...
Contents 1-     Introduction                                                     3 2-     Climate change update           ...
a1- IntroductionThe environmental reality of climate change is fast becoming an economicreality. As companies confront the...
a    other stakeholder engagements in                              overview of the climate change con-    climate mitigati...
a2 - Climate change updateClimate change is a reality and will                               scientific community projecte...
a      Greenhouse Gases      Anthropogenic greenhouse gases (GHGs)                              Methane, for example, has ...
afuel emission scenario establishedby the IPCC 3). If we continue on this                                Figure 2 : Global...
a    in 2020 being 5 % lower – even in the                         climate crisis in a positive and con-    absence of add...
aA short overview of global                          costs of reducing emissions are kept asclimate change policy         ...
a    3 - Addressing climate change –                          Role of GHG standards    The need for GHG standards is a rec...
a•   Incentives to support new indus-         •    Supply chain GHG management    tries and technologies, such as         ...
a    Role of GHG standards for    capacity building    Building capacity and certifying the    competence of GHG practitio...
a4 - ISO’s contribution to environmental               and climate change standards4.1- Development                       ...
a    standards to foster energy-efficiency                         The ISO 14000 family of standards for    and new green ...
a•   ISO 14020:2000, Environmental              change monitoring tools. For exam-    labels and declarations             ...
a    management systems (ISO 50001)                                •       ISO 14067 is a product standard    and the exam...
a                                                ►ISO 14064-1:2006                                                Greenhou...
a    ISO 14064-2 specifies principles and                          quantifications. It provides require-    requirements f...
a►ISO/DIS 14066                                 ►ISO/WD 14069 GHGGreenhouse gases – Competence                            ...
a    5 - Overview of GHG standards                              and programmes    As climate change mitigation has        ...
aTable 1 : Overview of standards and programmesStandards/programmes                                                       ...
a    Standards/Programmes                        Type          Compliance    Voluntary    Geographic    and their scope   ...
aseveral of the discussed programmes                   system, that standard may state thecall themselves “ standards ”, s...
a    5.1 Programmes for                                                   They include :        nation-wide GHG emission  ...
a•   Scope 2 calculations include              tank, in partnership with a coalition of    emissions from indirect sources...
a    5.3 Corporate disclosure                                      Institute, and to reflect relevant prin-        standar...
a    Carbon neutrality                                               reduced/destroyed, avoided or seques-                ...
a                                                                          reported. Verification and certifica-          ...
aregistered. To date it is the largest                              by governors of seven US states in theoffset mechanism...
ISO Ghg climate change
ISO Ghg climate change
ISO Ghg climate change
ISO Ghg climate change
ISO Ghg climate change
ISO Ghg climate change
ISO Ghg climate change
ISO Ghg climate change
ISO Ghg climate change
ISO Ghg climate change
ISO Ghg climate change
ISO Ghg climate change
ISO Ghg climate change
ISO Ghg climate change
ISO Ghg climate change
ISO Ghg climate change
ISO Ghg climate change
ISO Ghg climate change
ISO Ghg climate change
ISO Ghg climate change
ISO Ghg climate change
ISO Ghg climate change
ISO Ghg climate change
ISO Ghg climate change
ISO Ghg climate change
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ISO Ghg climate change


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* Contexte général du changement climatique, avec tableau récapitulatif des normes GES disponibles et en cours d’élaboration
* Comprendre comment les normes GES, telles qu’ISO 14064, servent d’outils pour la mise en œuvre de stratégies d'atténuation des changements climatiques et d’adaptation
* L'avenir des normes GES et leur rôle pour promouvoir une adoption plus rapide de nouvelles technologies vertes et de pratiques à faible niveau d’émission
* Possibilités en matière d’amélioration des normes GES existantes et d'élaboration de normes
* Modifications proposées pour mieux aborder les défis et optimiser l'efficacité des normes GES à orienter la planète sur la voie d’un avenir plus durable.

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ISO Ghg climate change

  1. 1. GHG schemes addressingclimate changeHow ISOstandards help
  2. 2. ISO in briefISO has a membership of 163* national communication technologies, the envi-standards bodies from countries large ronment, energy, quality management,and small, industrialized, developing conformity assessment and services.and in transition, in all regions of the ISO only develops standards for whichworld. there is a clear market requirement.ISO’s portfolio of over 18 500* stand- The work is carried out by experts inards provides business, government the subject drawn directly from theand society with practical tools for all industrial, technical and business sec-three dimensions of sustainable devel- tors that have identified the need foropment : economic, environmental and the standard, and which subsequentlysocial. put the standard to use. These experts may be joined by others with rele-ISO standards make a positive con- vant knowledge, such as representa-tribution to the world we live in. They tives of government agencies, testingfacilitate trade, spread knowledge, dis- laboratories, consumer associationsseminate innovative advances in tech- and academia, and by internationalnology, and share good management governmental and nongovernmentaland conformity assessment practices. organizations.ISO standards provide solutions and An ISO International Standard rep-achieve benefits for almost all sec- resents a global consensus on thetors of activity, including agriculture, state of the art in the subject of thatconstruction, mechanical engineer-, manufacturing, distribution, trans-port, medical devices, information and * In November 2010.
  3. 3. aAcknowledgementsISO gratefully acknowledges the ded- States), Dr.  Klaus Radunsky (Austria),icated work of : Dr.  Graham Sinden and Dr. Anne-• Tom Baumann, CEO of Marie Warris (United Kingdom), and ClimateCHECK, and Co-founder Sophie Clivio and Kevin McKinley of the Greenhouse Gas (from ISO Central Secretariat). The Management Institute, who is the work was coordinated by Juan Simon principal author of Chapters 3, 6, (ISO Central Secretariat). 7 and 8, and This document has been developed• Anja Kollmuss, Staff Scientist, by the above authors, with editing Stockholm Environment Institute, and publishing by ISO. It is strictly an who is the principal author of information document and in no way Chapters 2 and 5. represents the consensus views con-The authors received valuable com- tained in ISO standards and other ISOments from participants at the “ ISO deliverables.Global Workshop on GHG schemes This document has been financed byaddressing climate change – How the Swedish International DevelopmentISO standards help ”, held on 20-21 Cooperation Agency, Sida, whichNovember 2009 in Stockholm, does not necessarily share the viewsSweden, and also from the follow- expressed. Responsibility for its con-ing experts : Dr.  Chan Kook Weng tent rests entirely with the authors, edi-(Malaysia), Dr.  Tod Delaney (United tors and publisher. GHG schemes addressing climate change – How ISO standards help – 1
  4. 4. Contents 1- Introduction 3 2- Climate change update 5 3- Addressing climate change – Role of GHG standards 10 ISO’s contribution to environmental and climate change 4- standards 13 4.1 Development of ISO standards 13 4.2 ISO’s environmental standards 13 4.3 ISO’s contribution to addressing climate change 15 4.4 ISO’s greenhouse gas management standards 16 5- Overview of GHG programmes and standards 20 5.1 Programmes for nation - Wide GHG emission reporting 24 5.2 Organization-/ entity-wide GHG emissions standards 24 5.3 Corporate disclosure standards 26 5.4 GHG offset project programmes and standards 26 Product-specific and supply chain GHG programmes and 5.5 standards 33 Standards for validation and verification of GHG emissions and 5.6 reduction assertions 34 6- Standards and GHG practitioners 36 7- Experience with the use of ISO GHG standards 37 8- Meeting the demand for other GHG management standards 39 9- The road ahead for GHG standards 4610 - Glossary 49
  5. 5. a1- IntroductionThe environmental reality of climate change is fast becoming an economicreality. As companies confront the demands of a low-carbon future,they face new choices, new challenges, new competitors, and – ultimately –new opportunities to reshape industries and markets around the globe. – The McKinsey Quarterly.The magnitude of the changes emissions, and certifying the GHGrequired to mitigate and adapt to practitioners that help provide theclimate change is unprecedented. services and manage our companiesAll countries will need to implement and public programmes.changes that dramatically reduce Vast new business opportunities willgreenhouse gas (GHG) emissions emerge to create low-carbon econo-from fossil fuel consumption, and mies that are more energy efficient andfrom land-use changes such as profitable. It is time to prepare for thisdeforestation. In developed countries transition and take advantage of theall levels of society are faced with the new markets and industries that willresponsibility to make changes to shape the global economy in the com-lifestyle choices – from the products ing decades.they consume such as cars and food,to where they spend their vacation, Standards will play an increasinglyto the buildings in which they live and important role in moving societieswork. Developing countries need to and economies to a more climate-ensure the right to development while safe development path. Standardsat the same time minimizing the rise in can provide clear guidelines, helpGHG emissions. All nations will have structure processes and set qualityto build low-carbon infrastructures norms for the rapidly developing fieldthat ensure healthy economies, stable of GHG management. In doing so theygovernments and a protected climate. help facilitate new green technologyGHG standards will play a vital role in markets and more energy-efficientthis transition. They will provide the and profitable business practices.transparency and assurances needed ISO developed this publication tofor product labelling, purchasing of raise awareness and demonstrate thecarbon offsets, regulating business benefits of pro-active business and GHG schemes addressing climate change – How ISO standards help – 3
  6. 6. a other stakeholder engagements in overview of the climate change con- climate mitigation. ISO GHG stand- text and provides a map of available ards have been given wide coverage GHG standards, as well as those by international climate organizations, currently in development. It provides such as the International Emissions information on how GHG standards, Trading Association (IETA) and the such as ISO 14064, can provide the United Nations Framework Convention tools for implementing climate mitiga- on Climate Change (UNFCCC), as tion and adaptation strategies, and potential foundational standards for looks at the future of GHG standards harmonising other standards and pro- and how they can promote a faster grammes. Additionally, in the next few up-take of new green technologies years there is the growing prospect for and low-emission practices. It points ISO GHG standards to be developed out opportunities to enhance current into a management system standard GHG standards and standards devel- (MSS) for measurement, reporting and opment, and proposes changes that verification of the GHG emissions. would address challenges and help This publication provides information maximize the effectiveness of GHG to potential users of GHG standards standards in moving us to a more and programmes. It gives a brief sustainable future. 4 – GHG schemes addressing climate change – How ISO standards help
  7. 7. a2 - Climate change updateClimate change is a reality and will scientific community projected just aremain the greatest challenge of the few years ago :21st century. We are already seeing Recent observations confirm that,the profound impacts human-induced given high rates of observed emis-climate change has on the Earth’s sions, the worst-case IPCC scenariophysical and biological systems. The trajectories (or even worse) are beingscale of changes and the severityof impacts on human societies will realised. For many key parameters,depend in large part on our ability to the climate system is already movingdramatically and quickly reduce GHG beyond the patterns of natural vari-emissions and adapt to the unavoid- ability within which our society andable changes. The latest report of the economy have developed and thrived.Intergovernmental Panel on Climate These parameters include globalChange (IPCC) was released in 2007 mean surface temperature, sea-leveland states : Warming of the climate rise, ocean and ice sheet dynamics,system is unequivocal, as is now evi- ocean acidification, and extreme cli-dent from observations of increases in matic events. There is a significant riskglobal average air and ocean tempera- that many of the trends will accelerate,tures, widespread melting of snow leading to an increasing risk of abruptand ice and rising global average sea or irreversible climatic shifts 2).level 1). Between 2000 and mid-2008, anthro-Numerous new scientific findings have pogenic CO2 emissions have beenbeen published since the release of growing about four times faster thanthe IPCC report. Many of them point during the previous decade. Untilto emissions and warming trends that late 2008, estimated emissions wereare growing at a rate faster than the tracking above the most intense fossil1) IPCC, 2007 : Summary for Policymakers. In : Climate Change 2007 : The Physical Science Basis..., etc. Synthesis Report from Climate Change : Global Risks, Challenges & Decisions, Copenhagen, 10-12 March 2009, GHG schemes addressing climate change – How ISO standards help – 5
  8. 8. a Greenhouse Gases Anthropogenic greenhouse gases (GHGs) Methane, for example, has a much shorter are substances emitted by humans that lifetime (about 12 years) than CO 2 (up to cause the atmosphere to warm up beyond thousands of years) but has a greater its natural state, thus causing climate warming potential. It is 25 times stronger change. The most common greenhouse over a 100 year time frame than CO 2. gas is carbon dioxide (CO 2 ) which is pro- Atmospheric concentrations of CO 2 have duced by burning organic material, such as increased by over 31 % since pre-indus- fossil fuels and forests. trial levels. Methane has increased by 67 %. The Kyoto Protocol covers the following GHGs : carbon dioxide, methane, nitrous Figure 1 shows global GHG emis- oxide, sulphur hexafluoride, hydrofluorocar- sions by sector based on emissions bons and perfluorocarbons. These gases from 2000. More information on GHGs have differing lifetimes and strengths and climate change can be found at (warming potential). Figure 1 : Annual greenhouse gas emissions by sector Waste disposal and treatment Power stations 21.3 % 3.4 % Land use and biomass Industrial processes burning 16.8 % 10.0 % Residential, commercial and other sources Transportation fuels 10.3 % Fossil fuel 14.0 % retrieval, processing and Agricultural distribution by products 12.5 % 11.3 % 62.0 % 19.2 % 26.0 % 20.6 % 5.9 % 29.5 % 29.6 % 2.3 % 12.9 % 1.1 % 1.5 % Nitrous Oxide 9.1 % (9 % of total) 8.4 % 18.1 % Carbon dioxide (72 % of total) 40.0 % 6.6 % 4.8 % Methane (18 % of total) Source : Robert A. Rohde, 6 – GHG schemes addressing climate change – How ISO standards help
  9. 9. afuel emission scenario establishedby the IPCC 3). If we continue on this Figure 2 : Global CO2 emissions from different sourcestrend and do not act to reduce emis-sions rapidly, we may be unable to 8 000achieve the low stabilization scenar- Global Fossil Carbon Emissions 7 000ios that would give us a reasonable Total Petroleumchance to adapt to climate change and 6 000 Coalavoid catastrophic changes. Figure 2 Natural gas 5 000shows CO2 emissions growth from dif- Cement production 4 000ferent sources. 3 000There is strong agreement among 2 000most nations that the rise in globaltemperatures should be kept at a 1 000maximum of 2°C above pre-industriallevels. But even a temperature rise of 1800 1850 1900 1950 2004“ only ” 2°C will likely lead to significant Million Metric Tons of Carbon / Yearimpacts such as decreases in agricul-tural yields, fresh water scarcity and Source : Mak Thorpe (2008) extinction. The hope is that by_Type_to_Y2004.pngwith a concerted effort, human socie-ties would be able to adapt to theseinevitable changes. Beyond a 2°C energy production can be achievedwarming, the ability of society and the at low cost. More importantly, inac-ecosystems to adapt rapidly declines. tion harbours much larger and moreFor example, the IPCC notes that as dangerous costs than economic costglobal average temperature increase models are usually able to portray.exceeds about 3.5°C, “ model projec- Climate stabilisation is technologicallytions suggest significant extinctions and economically feasible. The finan-(40-70 % of species assessed) around cial crisis triggered in 2008 has hadthe globe ” 4). a considerable impact on the energyWe already have the capacity to reduce sector worldwide. The Internationalemissions quickly and economically. Energy Agency (IEA) estimated thatMany economic studies show that in 2009, CO2 emissions fell by 3 % –reducing emissions through energy- steeper than at any time in the last 40efficiency upgrades and renewable years 5). This would lead to emissions3) The Global Carbon Project, www.globalcarbonproject.org4) IPCC 2007 Summary for Policy Makers, International Energy Agency : World Energy Outlook 2009 GHG schemes addressing climate change – How ISO standards help – 7
  10. 10. a in 2020 being 5 % lower – even in the climate crisis in a positive and con- absence of additional policies – than structive way. the IEA estimated just a year ago. The Climate change does not exist in a economic downturn has thereby cre- vacuum. It is only one of a multitude ated an opportunity to put the global of global challenges that need to be energy system on a trajectory to sta- addressed to ensure the well being of bilise GHG emissions at safer levels. future generations. Moving towards a The climate imperative is clear : global more sustainable global future requires action is needed to swiftly and deci- that climate change is addressed with- sively reduce GHG emissions and out exacerbating other global issues develop strategies to adapt to changes such as poverty and inequity and the that cannot be avoided. Stakeholders loss of biodiversity. The task at hand from all sectors have to step up to the is clear : our economies have to move challenge : governments, businesses, to a low-carbon future in which the cli- organizations and citizens have to mate is protected and human societies collaborate to address the emerging and natural resources remain intact. 8 – GHG schemes addressing climate change – How ISO standards help
  11. 11. aA short overview of global costs of reducing emissions are kept asclimate change policy low as possible. To further increase the cost-effectiveness of emissions reduc-In 1992, the 154 signatory nations to the tions, the Kyoto Protocol established so-UNFCCC declared to aim “ to achieve sta- called Flexible Mechanisms : the Cleanbilization of GHG concentrations in the Development Mechanism (CDM) and Jointatmosphere at a low enough level to pre- Implementation (JI) and emissions trading.vent dangerous anthropogenic interfer- The Kyoto Protocol enabled a group ofence with the climate system”. The treaty Annex I countries to join together and formhas since been ratified and signed by 192 a so-called “ bubble ” that is given an over-nations. Yet the treaty’s aim was voluntary all emissions cap and is treated as a sin-and non-binding and did not set compli- gle entity for compliance purposes. The 15ance limits on GHG emissions. member states of the EU in 1997 formed such a bubble and created the EU EmissionsCompliance reductions were not estab- Trading Scheme (EU ETS). The EU ETS is anlished until five years later in 1997, when installation-based cap-and-trade systemthe Kyoto Protocol was adopted. Most for the now 27 EU member states whichindustrialized nations agreed to legally came into force in 2005. Under this cap-binding GHG emissions reductions of 6 % and-trade scheme, emissions are cappedto 8 % below 1990 levels between the for installations and allowances (EUAs)years 2008-2012. The Kyoto Protocol was may be traded among industries with anratified by 184 nations and came into force account in one of the 2005. It established a cap-and-tradesystem that imposes national caps on the Many countries have enacted GHG reduc-GHG emissions of developed countries tion policies and some have successfullythat ratified the Protocol (Annex 1 Parties). reduced their total emissions. DespiteThese countries must meet their targets the recent economic crisis, most nationsby reducing their own emissions, trad- still show growing emissions trends anding emissions allowances with countries it is highly unlikely that any country thusthat have a surplus of allowances, and/or far is on an emissions path that would, ifmeeting their targets by purchasing car- achieved globally, ensure that global tem-bon credits. This ensures that the overall peratures do not rise beyond 2° Celsius. GHG schemes addressing climate change – How ISO standards help – 9
  12. 12. a 3 - Addressing climate change – Role of GHG standards The need for GHG standards is a rec- Chapter 5 gives an overview of dif- ognized priority for business and gov- ferent GHG standards and their uses, ernment leaders. This publication is a followed by chapters describing the timely addition to the discussions of need for more and innovative GHG policy makers and other stakeholders standards to support technologies on climate change and the impacts of and professionals that in turn rein- trade, technologies, investment, gov- force the role GHG standards already ernment regulations and programmes play in GHG markets. There is a sym- such as cap-and-trade, offsets, incen- biosis between standards and the tives, and taxes, as well as consumer strategies and policies that use them. behaviour. Acknowledging the work of Standards are not only tools to help ISO and other leading organizations implement strategies and policies – working on GHG management and standards and the tools that incorpo- standardization, the World Economic rate standards, such as software for Forum Task Force Working Group quantifying the life cycle emissions on Universal Standards and Metrics of new technologies, can help in the recently recommended : design of new policies and business strategies. “ prioritization of a global standard for the assessment and reporting of product carbon footprints to enable Role of GHG standards better transparency of emissions for government policies associated with their production and and programmes consumption.” GHG standards are used to support This publication reviews the GHG many types of mandatory and voluntary standards currently in play, the emerg- government programmes, including : ing demand and efforts for more GHG • Incorporation into legislation and standards, and ways to improve GHG regulations such as regional GHG standardization so that they play an emission cap-and-trade agree- even greater role supporting an inte- ments, as well as international grated solution to climate change. trade agreements 10 – GHG schemes addressing climate change – How ISO standards help
  13. 13. a• Incentives to support new indus- • Supply chain GHG management tries and technologies, such as – since this is a serious business production subsidies, tax and issue, standardized GHG quanti- other business incentives fication and reporting for compa- nies and their products are being• Technology research and devel- developed to help reduce GHG opment (R&D) and other support emissions throughout the value funding. chain.For governments to create and effec- Businesses also report to non-gov-tively regulate GHG markets and ernmental GHG registries such as Theachieve fungible commodities that Climate Registry, using recognizedcan achieve the benefits of emissions GHG standards. From internationaltrading and core policy objectives trade to avoiding “ greenwashing ” ofsuch as reducing national emissions, product claims, GHG standards helpGHG standards help policy makers businesses take advantage of newreceive credible information, calcu- opportunities.late emissions and set targets usingcommon tools. However, GHG stand-ards do not set targets. They provide Role of GHG standards fora common approach to assessment, the financial industrymeasurement and reporting, among GHG standards are being developed toother uses. serve the specific needs of the financial community such as :Role of GHG standards for • Carbon disclosure and valuationbusiness, technologies and • New financial products, andproducts climate-related insurance coveringIn addition to being essential to the physical property, or liability insur- ance covering GHG practitionerGHG markets for cap-and-trade as well errors and omissions coverage, foras offset credits, GHG standards are example.used to support a range of importantbusiness functions including : Many GHG standards are used by• Carbon labelling of products and businesses to provide a complete and events for consumer and stake- accurate disclosure of GHG emis- holder communications, to enable sions, and communicate market risks effective purchasing decisions and and opportunities for their products avoid “ greenwashing ” and services. GHG standards will• Technology innovation to support help to link monetary value with GHG decisions on product develop- emissions, asset portfolios, technolo- ment and market assessment gies, products, risks and much more taking into account potential GHG – thereby enabling more efficient allo- revenues cation of capital. GHG schemes addressing climate change – How ISO standards help – 11
  14. 14. a Role of GHG standards for capacity building Building capacity and certifying the competence of GHG practitioners would not be possible without GHG standards for quantification, auditing, reporting, labelling, communications, and so on. GHG standards form an essential part of : • Training courses in industry associations and guidelines, as well as academic research and training providers • Professional certification and organization services • Tools of the trade, e.g. GHG software for emissions reporting and life cycle software models for technology funding. 12 – GHG schemes addressing climate change – How ISO standards help
  15. 15. a4 - ISO’s contribution to environmental and climate change standards4.1- Development progress speedily, sufficient time is of ISO standards required before the approval stage for the discussion, negotiation and reso-ISO develops new standards in lution of significant technical disagree-response to sectors and stakehold- ments. ISO standards are developeders that express a clearly established on a consensus basis, non-aligned toneed for them. ISO standards are any regime i.e. regime neutral, repre-developed by technical committees, sented geographically in developedcomprising experts from the indus- and developing countries, and havetrial, technical and business sectors technical rigour and speed to well as representatives of govern-ment agencies, testing laboratories, For a document to be accepted as anconsumer associations, non-govern- ISO International Standard, it must bemental organizations and academia. approved by at least two-thirds of the ISO national members that partici-To be accepted for development, a pated in its development and not beproposed new standard must receive disapproved by more than a quarterthe majority support of the partici- of all ISO members who vote on it.pating members of the ISO technical An International Standard is the resultcommittee which, among other cri- of an agreement between the mem-teria, verifies the global relevance of ber bodies of ISO. It may be used asthe proposed item. This means that such, or may be implemented throughit indeed responds to an international incorporation in national standards ofneed and will eventually be suitable different countries.for implementation worldwide.ISO standards are voluntary, and 4.2 ISO’s environmentalbased on a solid consensus of inter-national expert opinion. Consensus, standardswhich requires the resolution of sub- ISO standards are among the lead-stantial objections, is an essential ing objective tools that assist policy-procedural principle. Although it is makers in decisions related to publicnecessary for the technical work to incentives, regulations, and use of GHG schemes addressing climate change – How ISO standards help – 13
  16. 16. a standards to foster energy-efficiency The ISO 14000 family of standards for and new green technologies. Out of environmental management is firmly a total of over 18 500 ISO standards established as the global benchmark and related documents, over 570 are for good practice in this area : directly related to environmental sub- jects, including environmental man- • ISO 14001:2004, Environmental agement systems, climate change, management systems – energy management, and many more Requirements with guidance for use, provides the requirements that can help in reducing environmen- for environmental management tal impacts. systems (EMS) and contributes to Offering business, government and an organization’s objectives to oper- society a complete portfolio of prac- ate in an environmentally sustain- tical tools for tackling environmental able manner. As one indicator of challenges, they range from standards the use of ISO 14000, up to the for sampling, testing and analytical end of December 2009, more than 223 149 ISO 14001 certificates of methods, through environmental man- conformity had been issued to pri- agement and environmental aspects vate and public sector organizations of product design, to new work on in 159 countries and economies. ship recycling. The ISO 14000 family of standards also includes supporting tools for environmental management and designing environmentally friendly products and services : • ISO 14004:2004, Environmental management systems – General guidelines on principles, systems and support techniques • ISO 14040:2000, Environmental management – Life cycle assess- ment – Principles and framework for life cycle analysis • ISO Guide 64:2008, Guide for addressing environmental issues in product standards. The ISO 14000 family furthermore includes a number of standards to ensure good practice in environmen- tal claims and communications : 14 – GHG schemes addressing climate change – How ISO standards help
  17. 17. a• ISO 14020:2000, Environmental change monitoring tools. For exam- labels and declarations ple, ISO develops standards on geo-• ISO 14063:2006, Environmental graphic information and geomatics communication. which help to measure the extent of the effects of climate change, andISO has also developed sustainabil- is also collaborating with the Foodity standards for other sections such and Agriculture Organization of theas ISO 21930 :2007, Sustainability in United Nations (FAO) and the Worldbuilding construction – Environmental Meteorological Organization (WMO),declaration of building products. under a United Nations/ISO partner- ship to develop further standards for gauging essential climate variables4.3 ISO’s contribution under the UN’s Global Terrestrial to addressing climate Observation System. change ISO International Standards can alsoISO has been a leader in developing make essential contributions to real-climate change relevant standards izing the full potential of energy effi-that help streamline procedures and ciency measures based on existingunify definitions and requirements technology and good practice, as wellfor the climate mitigation and related as to disseminating innovative tech-actions of corporations, organizations nologies – particularly for renewableand governments. and carbon-neutral energy sources.Achieving international agreement on In the case of innovative technolo-the quantification and verification of gies, standards can reduce the timeGHG emissions for purposes of emis- to market of products and servicessions trading is key to supporting the based on them, create global interestdevelopment, networking and con- and develop a critical mass of sup-sistency of emissions credit trading port to ensure the economic successschemes. of such technologies.ISO 14064, ISO 14065, ISO 14066, ISO has already developed standardsISO 14067 and ISO 14069 provide an with an impact on climate changeinternationally agreed framework for areas such as building environ-for measuring GHG emissions, ver- ment design, energy efficiency ofifying claims made about them, and buildings and sustainability in build-accrediting the bodies which carry ing construction, intelligent transportout such activities. All these ISO systems, solar energy, wind tur-GHG standards are described in bines, nuclear energy and hydrogenmore detail in the following section. technologies.ISO not only helps streamline GHG ISO’s proactive stance on energy andaccounting with its policy-neutral climate change matters has resultedtools, but it also develops climate in the initiation of ISO work on energy GHG schemes addressing climate change – How ISO standards help – 15
  18. 18. a management systems (ISO 50001) • ISO 14067 is a product standard and the examination of new opportu- (currently under development) nities in energy efficiency and renew- and will provide a framework for able energy sources. measuring the carbon footprint of products 4.4 ISO’s GHG management • ISO 14069 is a guidance docu- standards ment (currently under develop- ment) for the quantification and The ISO series of GHG standards, reporting of GHG emissions for which continues to expand, addresses organizations. the need for a unified framework for GHG quantification, monitoring, These ISO standards are designed to reporting and verification, and pro- be policy-neutral which provides the vides a set of auditable requirements flexibility that has made it possible or specifications, and in some cases for ISO GHG standards to be applied recommendations, to support various to many different GHG programmes stakeholder groups such as organiza- around the world. ISO 14064, for tions, proponents of GHG emission example, is consistent and compat- reduction projects, and auditors. ible with the GHG Protocol, published by the World Resources Institute • ISO 14064 : Parts 1 and 2 are (WRI) and the World Business specifications for the quantifica- Council for Sustainable Development tion, monitoring and reporting (WBCSD). Also, a leading offset of GHG emissions and emission standard for the voluntary market, reductions (as well as removal the Voluntary Carbon Standard, is enhancements), respectively, and based on ISO 14064 Parts 2 and 3, Part 3 is a specification for the and ISO 14065. The growing use of validation or verification of GHG ISO GHG standards for both regu- assertions lated and voluntary purposes is a • ISO 14065 is a standard that testament to their versatility and their specifies principles and require- contribution to linking GHG markets ments for bodies that undertake around the world. validation or verification of GHG assertions for use in accreditation ISO 14064 or other forms of recognition ISO 14064 is comprised of three • ISO 14066 is a standard (currently parts, respectively detailing specifica- under development) that speci- tions and guidance at the organiza- fies the competence requirements tional and project levels, and for GHG for GHG validation teams and quantification, monitoring, reporting, verification teams with guidance validation and verification. Because for evaluation the standard is programme-neutral, it 16 – GHG schemes addressing climate change – How ISO standards help
  19. 19. a ►ISO 14064-1:2006 Greenhouse gases – Part 1 : Specification with guidance at the organization level for quantifica- tion and reporting of greenhouse gas emissions and removals catalogue_detail?csnumber=38381 ISO 14064-1 provides guidance on the elements needed to implement an All ISO GHG standards are policy neutral. If an ISO GHG standard is auditable GHG inventory. It offers a used under a specific GHG pro- framework for designing, developing, gramme, requirements of that GHG managing and reporting organizational programme are additional to the or company-level GHG inventories. It requirements of ISO GHG standards. includes requirements for determin- ing organizational boundaries, GHG emission boundaries, quantifying anis not prescriptive about elements that organization’s GHG emissions andapply to the policies of a particular removals, and identifying specificGHG programme (e.g. specific addi- company actions or activities aimedtionality criteria for offset projects).These decisions are required to be at improving GHG management. Itmade by the user of the standard (e.g. also includes requirements and guid-the GHG programme administrator or ance on inventory quality manage-regulator) when applying the stand- ment, reporting, internal auditing andard. ISO 14064 objectives are to : the organization’s responsibilities in verification activities. ISO 14064 Parts• Enhance environmental integrity 2 and 3 are described in more detail by promoting consistency, trans- parency and credibility in GHG below. quantification, monitoring, report- ing and verification ►ISO 14064-2:2006• Enable organizations to identify and manage GHG-related liabili- Greenhouse gases – Part 2 : ties, assets and risks Specification with guidance at the project level for quantification,• Facilitate the trade of GHG allow- monitoring and reporting of green- ances or credits house gas emission reductions or• Support the design, development removal enhancements and implementation of compara- ble and consistent GHG schemes or programmes. catalogue_detail?csnumber=38382 GHG schemes addressing climate change – How ISO standards help – 17
  20. 20. a ISO 14064-2 specifies principles and quantifications. It provides require- requirements for determining project ments and guidance for those baseline scenarios and for monitor- conducting GHG validations and ing, quantifying and reporting project verifications. It specifies the gen- performance relative to the baseline eral requirements for selecting GHG scenario and provides the basis for audit team members, establishing the GHG projects to be validated and ver- level of assurance, objectives, criteria ified. ISO 14064-2 is a comprehensive and scope, determining the audit- framework of “ what to do”. Because ing approach, assessing GHG data, the standard is a programme-neutral information, information systems and process, it is not prescriptive about controls, evaluating GHG assertions, elements that apply to the policies and preparing audit statements. of a particular GHG programme (e.g. specific additionality criteria, project ►ISO 14065:2007 eligibility dates or co-benefits). These Greenhouse gases – Requirements decisions are required to be made by for greenhouse gas validation the user of the standard (e.g. the GHG and verification bodies for use in programme administrator or regu- accreditation or other forms of lator) when applying the standard. recognition ISO 14064-2 has been incorporated into numerous programmes includ- ing the Voluntary Carbon Standard catalogue_detail?csnumber=40685 and the Chicago Climate Exchange, ISO 14065 specifies principles and as well as compliance programmes requirements for bodies that under- such as those of the Government of take validation or verification of GHG Alberta and the Government of British assertions. It requires that a validation Columbia, both in Canada. and verification body establishes and maintains a procedure to manage the competence of its auditing personnel. ►ISO 14064-3:2006 GHG validation and verification bod- Greenhouse gases – Part 3 : ies must ensure that auditing teams Specification with guidance for have the necessary competence to the validation and verification of effectively complete the validation greenhouse gas assertions or verification process. Supporting these principles are general require- ments based on the tasks that the catalogue_detail?csnumber=38700 validation or verification teams must ISO 14064-3 details principles and be able to perform, and the compe- requirements for verifying GHG tence required to do so. inventories, and validating or verify- ing GHG projects. It can be applied to entity-wide and offset project GHG 18 – GHG schemes addressing climate change – How ISO standards help
  21. 21. a►ISO/DIS 14066 ►ISO/WD 14069 GHGGreenhouse gases – Competence Quantification and reporting ofrequirements for greenhouse gas GHG emissions for organizationsvalidation teams and verification (Carbon footprint of organization) –teams Guidance for the application of ISO 14064-1detail.htm?csnumber=43277 14066, currently under devel- detail.htm?csnumber=43280opment, spells out the competence ISO 14069 is a new guidance docu-requirements for GHG validation ment currently under developmentteams and verification teams with to support the application of theguidance for evaluation. To achieve ISO 14064-1 International Standardconsistency in the international mar- for organizational GHG inventoryketplace and maintain public confi- quantification and reporting, in partic-dence in GHG reporting and other ular in relation to scope 3 emissionscommunications, there is a need to or other indirect emissions related todefine competence requirements the organization for which the GHGfor GHG auditing teams. ISO 14066 inventory is established.will be used in conjunction withISO 14065.►ISO/CD 14067Carbon footprint of products 14067 is a new InternationalStandard, currently under devel-opment, for product carbon foot-printing and communication,including labelling. It is being devel-oped by international technicalgroups working concurrently on twoparts : Quantification (Part 1) andCommunication (Part 2). ISO 14067 isdue for completion in 2012. GHG schemes addressing climate change – How ISO standards help – 19
  22. 22. a 5 - Overview of GHG standards and programmes As climate change mitigation has 6. Validation and verification gained prominence in the public (auditing) of GHG emissions and private sectors, numerous GHG and reduction claims. standards and programmes, includ- ing protocols, methodologies and Table 1 gives an overview of some guidelines, have been developed for major GHG standards and pro- the management of GHG emissions 6). grammes described in this chapter. This chapter introduces a number Programmes are here defined as of important standards and pro- GHG schemes, including compliance grammes currently available or under and voluntary programmes, under development, including linkages to which GHG emissions or emissions ISO standards (explained in the previ- reductions can be certified by third- ous chapter). The various GHG stand- parties, and in some cases traded. ards and programmes have been Programmes therefore usually have categorized as follows : bodies that certify projects, verifiers, 1. National GHG emissions and specific protocols and/or pro- grammes that are accredited under 2. Organization/ entity-wide GHG that programme. Under a compliance emissions market, entities are required by law 3. Corporate disclosure on cli- to report and/or reduce their GHG mate change emissions. Such compliance regimes include, but are not limited to, cap- 4. GHG offset projects and-trade systems, such as the Kyoto 5. Product-specific/ supply-chain Protocol and the European Union GHG emissions Emissions Trading System (EU ETS). 6) This publication does not address climate adaptation and the need for standards in that area. Adaptation to climate change and the role of standards in that process is a large and important subject. Yet it would go beyond the scope of this publication which focuses on GHG accounting and management. 20 – GHG schemes addressing climate change – How ISO standards help
  23. 23. aTable 1 : Overview of standards and programmesStandards/programmes Geographic Type Compliance Voluntaryand their scope scopeNational GHG emissionsUNFCCC programme x internationalOrganization/entity-wide GHG emissionsEU ETS programme x EuropeanISO 14064-Part 1 standard x internationalWBCSD/WRI GHG standard x internationalProtocol for CorporateAccountingChicago Climate programme x mostly USExchangeCorporate disclosure on climate changeClimate Disclosure standard x internationalStandards BoardCarbon Disclosure guidelines x internationalProject QuestionnairePAS 2060 Carbon guidelines x UK, internationalNeutralityGHG offset projectsClean Development programme x Non-Annex 1MechanismJoint Implementation programme x Annex 1Regional Greenhouse Gas programme x North-east USInitiativeISO 14064-Part 2 standard x internationalWBCSD/WRI GHG standard x internationalProtocol for ProjectAccountingClimate Action Reserve programme x mostly USVoluntary Carbon programme x internationalStandardGold Standard programme x internationalChicago Climate programme x mostly USExchange GHG schemes addressing climate change – How ISO standards help – 21
  24. 24. a Standards/Programmes Type Compliance Voluntary Geographic and their scope scope Climate Community and co-benefit x international Biodiversity Standards add-on Social Carbon co-benefit x Non-Annex 1 add-on American Carbon programme x Mostly US Registry Alberta Offsets System programme x Alberta, Canada Pacific Carbon Trust programme x British Columbia, Canada Product-specific/ supply-chain GHG emissions PAS 2050 standard x UK, international ISO 14067 standard x international WBCSD/WRI GHG standard x international Protocols for Products and for Scope 3 Validation and verification (auditing) of GHG emissions and reduction claims ISO 14064-Part 3 standard x international ISO 14065 standard x international ISO 14066 standard x international ISAE 3000 standard x international ISAE 3410 standard x international Validation and guidance x Non-Annex 1 Verification Manual CDM document Validation and guidance x Non-Annex 1 Verification Manual IETA document Voluntary standards and programmes to prepare for expected compliance are used by companies and institu- action, e.g. the introduction of a cap- tions on a purely voluntary basis. The and-trade system. Because demand is motivation for reporting GHG emis- driven by purely voluntary action, the sions and purchasing carbon offsets voluntary markets for carbon offsets varies and includes corporate public are much smaller than the compli- relations and code of ethics, a desire ance markets, such as the CDM. The to go beyond what is mandated in distinction between programmes and terms of emission reductions, and standards can be confusing, since 22 – GHG schemes addressing climate change – How ISO standards help
  25. 25. aseveral of the discussed programmes system, that standard may state thecall themselves “ standards ”, such as requirements in a legally binding waythe Voluntary Carbon Standard or the (e.g. “ the project proponent “ shall ”Gold Standard. use a third-party auditor ”) or as a rec- ommendation or guideline (e.g. “ theStandards in the context of this project proponent “ should ” use apublication include protocols, meth- third party auditor ”).odologies and guidance, and pro-vide guidance and/or specifications Co-benefits refer to environmen-on GHG quantification, monitoring, tal and social benefits that can bereporting and assurance. “ International achieved in addition to carbon reduc-Standards ” are those produced by tions. Standards that ensure suchISO following specific principles and co-benefits are used in offset marketsprocedures (see the ISO publication and are described in more detail inon International standards and “ pri- the section on GHG offset projects.vate standards ” 7)). Most standards Guidance documents provide spe-typically stand alone and do not have cific process guidelines on how toa body directly associated with them apply a standard or a protocol. Thethat accredits projects, protocols and/ use itself of such guidance documentsor verifiers. Standards themselves do can be voluntary or mandatory. Fornot typically have registration and example, the CDM provides numer-enforcement systems to track and ous mandatory guidance “ methodo-ensure legal ownership as is neces- logical tools ” such as the “ Tool forsary, for example, in the case of emis- the assessment and demonstration ofsions reductions from offset projects. additionality ”.The choice of a standard is typicallyvoluntary, as long as it is not part of a Geographic scope refers to situ-compliance programme. That means ations where activities are imple-an organization can decide which mented under that programme orstandard to use for its GHG emissions standard. For example, CDM activi-inventory or to implement an offset ties and approved methodologies forproject, if it is not under a mandatory offset projects are applied in Non-scheme of a compliance programme. Annex 1 Countries unless adoptedNevertheless, if a company chooses by the Voluntary Carbon Standarda particular standard under which (VCS) programme for application into implement its GHG management other jurisdictions.7) GHG schemes addressing climate change – How ISO standards help – 23
  26. 26. a 5.1 Programmes for They include : nation-wide GHG emission • Good Practice Guidance and reporting Uncertainty Management in National Greenhouse Gas Inventories (2000) United Nations Framework Convention on Climate Change • Good Practice Guidance for Land Use, Land-Use Change and (UNFCCC) Forestry (2003) public/2006gl • Definitions and Methodological Options related to Inventory Under the UNFCCC Annex 1 Countries Emissions from Direct Human- have to annually report their national Induced “ Degradation ” of Forests GHG emissions in a formalized report- and “ Devegetation ” of other ing format. Non-Annex 1 countries do Vegetation Types (2003). not have to submit annual GHG inven- tories but instead have to submit their 5.2 Organization-/entity-wide “ National Communications ” which usu- GHG emissions standards ally contain information on national cir- cumstances, vulnerability assessment, Entity-wide GHG emissions calcu- lations are used to determine an financial resources, technology transfer organization’s carbon footprint 8). Such and capacity building. The 1996 and entity-wide GHG emissions calcula- 2006 IPCC Guidelines for National tions have been widely used by busi- Greenhouse Gas Inventories assist nesses, institutions, and governmental countries in compiling their national as well as non-governmental organi- GHG inventories. They supply default zations. Entity-wide emissions calcu- values of the various parameters and lations are usually divided into three emission factors required for all sectors. sections : In addition the Intergovernmental Panel on Climate Change (IPCC) • Scope 1 calculations include emissions from direct fuel use Methodology Reports describe such as gasoline for vehicles and methodologies and practices for oil and natural gas for heating. national GHG inventories. These docu- These calculations are usually ments provide additional guidance straightforward and require the for national and corporate emissions use of generally well-established accounting, and are used worldwide. emissions factors 8) Strictly speaking a “ carbon footprint ” only includes CO2 emissions whereas a “ GHG footprint ” includes emissions of other greenhouse gases as well. For consistency, the term “ carbon footprint ” is used throughout this document. 24 – GHG schemes addressing climate change – How ISO standards help
  27. 27. a• Scope 2 calculations include tank, in partnership with a coalition of emissions from indirect sources, businesses, NGOs and governmen- such as electricity, heat (e.g. tal and inter-governmental organiza- from district heating) and steam. tions. It provides requirements and These are called indirect emis- extensive guidance for businesses, sions because GHG emissions organizations and institutions prepar- from electricity, for example, ing GHG emissions inventories. The occur at the power plant and not GHG Protocol Corporate Standard at the point of use. The emissions has been designed to be policy-neu- depend on the fuel mix. Electricity tral and focuses only on the account- produced from fossil fuel has higher GHG emissions per kWh ing and reporting of emissions, and is than renewable electricity from therefore not a programme, i.e. it does wind or hydro not provide a standard for how the verification process should be con-• Scope 3 calculations include ducted or require that inventory data indirect emissions not included in be reported. The cooperation between scope 2. These include emissions the GHG Protocol Initiative and ISO associated with the embodied has enhanced the consistency of energy in materials (e.g. paper, office equipment, food). Scope principles and requirements between 3 emissions are the most dif- the GHG Protocol for Corporate ficult to estimate and most GHG Accounting and ISO 14064 Part 1. emissions inventories therefore exclude, or only partially include, European Union Greenhouse these emissions. Gas Emission Trading System (EU ETS)WBCSD/WRI corporate and reporting climat/emission/index_en.htmstandards The EU ETS is a European trade programme in which GHGcorporate-standard emissions from facilities are calcu- lated according to GHG methodolo-The GHG Protocol Corporate Standard gies defined at the national level.was developed jointly by the WorldBusiness Council for Sustainable ISO 14064 - Part 1Development (WBCSD), a globalassociation of some 200 compa- Refer to Chapter 4.4 for a description.nies committed to sustainable devel-opment, and the World Resources ISO 14069Institute (WRI), an environmental think Refer to Chapter 4.4 for a description. GHG schemes addressing climate change – How ISO standards help – 25
  28. 28. a 5.3 Corporate disclosure Institute, and to reflect relevant prin- standards ciples from established financial and business reporting models. Corporate disclosure standards (CDSs) go further than company-wide The framework references ISO 14064 carbon footprint calculations. They and recommends its use for entity-wide include entity-wide GHG calculations emissions calculations (ISO 14065) and as well as risk assessments, and give for verification (ISO 14064-3). a more complete overview on how a company deals with the threats and PAS 2060 :2010 opportunities of climate change and its GHG emissions. There are sev- Detail/?pid=000000000030198309 eral organizations that are working towards mainstreaming the reporting PAS 2060, a publicly available speci- of such GHG inventories. fication (PAS) for the demonstration of carbon neutrality, provides guid- Climate Disclosure Standards ance to quantify, reduce and offset Board Climate Change GHG emissions from an organization, Reporting Framework activities, products, services, pro- jects, events, etc. The Climate Disclosure Standards Board (CDSB), formed in 2007, is 5.4 GHG offset project an international organization com- programmes and mitted to the integration of cli- standards mate change-related information into annual reports, alongside their GHG offsets are gaining prominence audited financial results. In 2009, the as a tool to compensate for emis- CDSB published a draft of its Climate sions in the compliance and voluntary markets. By paying someone else to Change Reporting Framework. reduce, remove or avoid the release The first edition of the framework is of GHGs elsewhere, the purchaser of designed to be used for disclosure GHG offsets can aim to compensate of climate change-related informa- for, or in principle “ offset ”, their own tion in, or linked to, mainstream finan- emissions. This is possible because cial reports. The framework is being climate change is a non-localized developed to build on, and support problem ; CO2 emissions mix through- the work of, its Board members, the out the atmosphere, so reducing Carbon Disclosure Project, Ceres, the them anywhere reduces overall GHG Climate Group, The Climate Registry, concentration. the International Emissions Trading Association, the World Economic Offset project GHG calculations are Forum and the World Resources used to determine the amount of 26 – GHG schemes addressing climate change – How ISO standards help
  29. 29. a Carbon neutrality reduced/destroyed, avoided or seques- tered GHGs of offset projects. In recent years, some large compa- nies and organizations have made Offset projects then sell the gener- headlines by announcing that they are ated GHG offsets or credits to entities “ going carbon neutral ” or offering in the compliance or voluntary mar- carbon neutral services or products. ket. The buyer can then in turn claim In 2006, “ carbon neutrality ” was the the emissions reductions that have New Oxford American Dictionary’s been achieved by the offset project. Word Of The Year. Being carbon neu- Offset programmes usually develop tral refers to achieving net zero carbon specific protocols (also called “ meth- emissions. This can be achieved by odologies ”) for each project type (e.g. reducing consumption, increasing effi- methane capture and destruction or ciency, purchasing zero-carbon fuels and electricity, and by buying carbon utilization from landfills). These proto- offsets. The concept of carbon neutral- cols spell out in detail the parameters ity has been loosely defined and has that have to be used in order to calcu- met with equal measures of enthusi- late the emissions reductions from a asm and scepticism. The key questions specific project. Project-level standards that frame the debate are : and programmes have been developed for the compliance as well as the volun- 1. Which emissions should an organi- zation avoid or offset (see scope 1, tary markets. 2, 3 discussion above) in order to Offset programmes must have three claim carbon neutrality ? core components 9) whereas offset 2. How should carbon neutrality be standards usually only define or give achieved ? For example, is it legiti- guidelines for the first two : mate for a company to claim car- 1. Accounting and quantification bon neutrality by purchasing green procedures aim to ensure that electricity certificates and carbon offsets are “ real, additional, and offsets ? permanent ” and provide the meth- ods for quantifying the number These issues have not been resolved of offsets a project can generate and the debate over the legitimacy of (project specific “ protocols ” or the value of a carbon neutral claim “ methodologies ”) continues. 2. Monitoring, verification and certi- fication procedures aim to ensure that offset projects perform as9) Adapted from : Broekhoff, D. (2007). Voluntary Carbon Offsets : Getting What You Pay For. Testimony before the House SelectCommittee on Energy Independence and Global Warming, July 18, 2007. GHG schemes addressing climate change – How ISO standards help – 27
  30. 30. a reported. Verification and certifica- tion rules are used to quantify the Validation is a process where an actual carbon savings that can auditor assesses a project’s GHG enter the market once the project project plan against defined vali- is up and running dation criteria. Validation is usually done before project implementation, 3. Registration and enforcement and deals with the assessment of systems aim to ensure owner- potential future outcomes. ship of the emission reduc- tions, define who bears the risk Verification is a process where an in case of project failure, and auditor assesses an organization’s protect against double counting or project’s GHG assertions. For of offsets. Registries are vital in offset projects, verification ensures creating a credible, fungible offset that the number of offsets received commodity. is equal to the number of emissions reductions achieved. This process is done after project implementation 5.4.1 Compliance project and is usually repeated. programmes Ex-ante versus ex-post credits. Ex-ante refers to offsets that Clean Development are credited and sold before the Mechanism (CDM) actual emissions reductions have occurred. The exact quantities of the reductions are therefore uncertain. The CDM is a project-based GHG Ex-ante credits usually come from offset mechanism under the Kyoto sequestration (forestry) projects Protocol of the UNFCCC. It aims to that can take a long time to reach assist Annex 1 Parties (industrial- their full sequestration potential. As ized countries with binding emission opposed to ex-ante offsets, ex-post reduction targets) to cut global GHG reductions have already occurred emissions in a more cost-effective when the offsets are sold and their manner by allowing them to invest in quantities are certain. Most stand- offset projects in non-Annex 1 par- ards require the verification of emis- ties (developing countries without sions reductions before they can be binding targets). Certified Emissions registered and sold. Yet there are Reductions (CERs) are verified and a few voluntary offset programmes that market ex-ante offsets, exam- certified by authorized third parties ples include Plan Vivo and Carbon (Designated Operational Entities). Fix. The CDM Executive Board gives final approval to new projects and project methodologies (protocols). The CDM has very clear and detailed rules and protocols, and high transaction costs, so that usually only large projects are 28 – GHG schemes addressing climate change – How ISO standards help
  31. 31. aregistered. To date it is the largest by governors of seven US states in theoffset mechanism with over 2526 pro- Northeast and Mid-Atlantic regionsjects registered and 453 Million CERs and has since expanded to include 10issued as of November 201010). states. The programme applies to fos- sil fuel-fired electric generating unitsJoint Implementation (JI) of 25 megawatts and larger. RGGI went into effect on January 1, 2009, as the first compliance cap-and-tradeJI, like the CDM, is a project-based programme to regulate GHGs in themechanism under the Kyoto Protocol. US. Its objective is to reduce CO2It is limited to transactions betweenindustrialized countries and coun-tries with economies in transition thathave commitments to limit or reducetheir GHG emissions under the KyotoProtocol (Annex 1 Countries). The goalof the programme is to increase mar-ket efficiency by allowing industrializedcountries to meet a part of their obli-gation by investing in GHG abatementprojects in another industrialized coun-try or economy in transition if the costof abatement is lower in the other coun-try. JI is much smaller than CDM. As ofNovember 2010, there were 353 pro-jects registered and 20.7 million cred-its issued (United Nations EnvironmentProgramme Risoe Centre).The Regional Greenhouse GasInitiative (RGGI)http://www.rggi.orgThe RGGI is a multi-state US compli-ance cap-and-trade programme toreduce CO2 emissions from electricitygeneration. It was established in 200510) Up-to-date figures on the CDM and JI are available on the UNEP Risoe Centre website : GHG schemes addressing climate change – How ISO standards help – 29