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Environmental Indicators for EPE Alvaro H. Pescador EMS Text Contribution
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USING INDICATORS WISELY BEYOND COMPLAINCE: ENVIRONMENTAL
PERFORMANCE EVALUATION FOR CONTINUAL IMPROVEMENT OF EMS ISO 14001
Introduction
The requirements for an Environmental Management Systems established in the
International Standard ISO 14001, are based upon the Deming Cycle of Continual
Improvement. As such, the Deming cycle shown in Figure 1, provides to the organization
which has accredited an EMS within the opportunity of using a powerful tool that can shift
the processes of its chain value beyond compliance.
Fig. 1 Deming Cycle to support Decision Making Process in EMS ISO 14001
After exploring 128 facilities in Beijing, Hong Kong and Shanghai researchers1
realized that
the main drivers for certification were:
1. Ensuring regulatory compliance
2. Enhancing the firm’s reputation
3. Improving Environmental Performance
The study concludes that companies are looking for certification elsewhere and that
subsequently ISO 14001 as currently being implemented in mainland China may have a
modesty useful role, given the fact that improving Environmental Performance was in third
place.
Beyond compliance, objectives and targets set for eco efficient processes can be
established in order to reduce materials use, the amount of water demanded, the energy
necessary to move equipment and fluids, as well as re-engineering processes to obtain
byproducts instead wastes and residues: that is the challenge and opportunity organizations
are facing around the world for responding to the complexity of Climate Change2
.
To implement these eco efficient strategies, which decouple economic growth from
environmental pollution, it is necessary to build environmental indicators that can be able to
show organization’s achievement of objectives and goals, toward a more sustainable
1
Fryxell, G., Wing-Hung Lo, C. and Chung, S. (2004) “Influence of Motivations for Seeking ISO 14001: Certifications of
Perceptions of MES Effectiveness in China”1 Springer, Environmental Management, vol 33, no. 2 pp 239-25 Springer-
Velag New York.
2
Smith, M, Hargroves, K. and Dhesa, C. (2010) “Cents and Sustainability, Making Sense on How to Grow
Economies, Strengthen Communities and Revive the Environment in Our Lifetime”, Earthscan, London, p.
142.
PLAN
DOCHECK
ACT
Environmental Indicators for EPE Alvaro H. Pescador EMS Text Contribution
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operation. In other words, a better environmental performance, that can be measured not
only in a technical and scientific supported way, but in a cost effective manner as well.
Barriers to EMS as a tool for Continual Improvement
Among the barriers that an EMS can face, identified and documented by TNEP are the
following3
:
1. Reactionary rather than proactive
2. Avoiding more aggressive regulation
3. Resourcing aimed at just compliance
4. Lack of leveraging savings
5. Lack of budget for implementation and review
6. Increasing number of stages models, tools, techniques, schemes, standards, rather
than focusing on operations and opportunities for improvement4
7. Difficulty in measuring achievements
8. EMS Lock-in
Barriers 2, 3, 7 and 8, this is half of the barriers identified by TNEP are linked with the topic
of EPE (Environmental Performance Evaluation). Continual Improvement indeed, is the main
reason for which EMS ISO 14001 was structured based upon the Deming Cycle shown in
Figure 1.
But it is only possible to improve that which is being measured. This is the reason why
Environmental Indicators play a key role in the ISO 14001 scheme: they are necessary at
the PLANNING stage in order to set objectives and goals in a technical and reasonable way.
They are indispensable at the CHECKING stage to monitor the operations, processes and
projects being executed by the organization, and they are definitely a useful tool when the
management review is executed to support the decision making process (ACT).
The Role of EPE and ISO 14031 in Continual Improvement
ISO 14031 states that Environmental Performance Evaluation and the necessary
development of information must be integrated to the PDCA Deming cycle shown in Figure
1, as appears in Figure 25
.
This means that EPE is a process that requires Design, Construction and Information use,
which allows the organization to acquire and maintain a detailed knowledge of its own
operations and processes in order to quantify and measure environmental aspects,
environmental impacts6
, the percentage of success in achieving objectives and goals, a
3
Desha, C. (2009) “Can Environmental Management Systems Drive Factor 5?”, in von Weizsacker, E., Hargroves, K., Smith,
M., Descha, C. and Stasinopoulos, P. (in Press) Factor 5: Transofrming the Global Economy trough 80% Increase in
Resource Productivity Earthscan, London. (7 pages).
4
Orsato, R. (2006) “Competitive Environmental Strategies: When Does it Pay to be Green?”, California Management Review,
vol 48, no.2, winter.
5
ISO 14031:2000 Environmental Management – Environmental Performance Evaluation – Guidelines, International
Organization for Standardization
6
Environmental Impacts are harder to measure than environmental aspects, due to some of them have not only local but also
regional and global implications as in the case of global warming (an environmental impact) derived from Green House Gas
Emissions (an environmental aspect).
Environmental Indicators for EPE Alvaro H. Pescador EMS Text Contribution
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record of environmental accidents and incidents, etc. In order to so, it is necessary to build
different kind of environmental indicators under a systemic approach.
Fig. 2 Environmental Performance Evaluation, ISO 14031
As it can be seen, in a first stage a selection or formulation of the environmental indicators
that are necessary the support the decision making process of the EMS is done. Once the
indicators have been formulated it is necessary to build them, collecting the data in a
systematical way for what most of the time it is very convenient to develop meta data, also
known as methodological sheets for each one of the indicators that the organization
considers desirable to build7
. After a period of time and through the analysis of statistical
series the indicators will show tendencies or will call the attention to operations or processes
7
WINOGRAD M., PESCADOR A. and Others, “Indicators System for Environmental Planning and Evaluation”,
CIAT-UNEP-DNP, Bogota, 1997
PLAN
3.2 Planing Environmental Performance Evaluation
DO
3.3 Using data and information
3.2.2 Collecting Data
3.2.2 Analyzing and converting
DAtaDatos
3.2.3 Assessing Information
3.2.4 Reporting & Communicating
3.2.2 Selecting Indicators for EPE
Data
Information
Results
CHECK AND ACT
4.3 Environmental Performance Evaluation:
Review and Improvement
Environmental Indicators for EPE Alvaro H. Pescador EMS Text Contribution
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that have a more relevant impact over the environment, as also identified by the EIA
(requirement 4.3.1 of ISO 14001).
Difficulties of applying ISO 14031 to develop Environmental Indicators for EPE
ISO 14031 defines the following kind of indicators for EPE8
:
1. Environmental Performance Indicators (EPIs), which can be:
1.1 Management Performance Indicators (MPIs), or
1.2 Operational Performance Indicators (OPIs)
2. Environmental Condition Indicators (ECIs)
The concepts given on the ISO 14031 Standard (Op. cit p. 5-10), and the figures used to
explain them are difficult to understand (e.g. the standard defines operational performance
indicator, OPI, as “environmental performance indicator that provides information about the
environmental performance of an organization’s operations”, so what does this mean?
The subdivision of Environmental Performance Indicators in two categories, the first one
Management Performance Indicators, and the second one Operational Performance
Indicators is opposed to a cause-effect or problem-solution approach.
There in not any kind of link between the Environmental Performance Indicators (both
Management and Operation) and the Environmental Condition Indicators, which are handle
in a second group or class, as if there were not a close relationship between them and
those. Condition indicators are used to trace the environmental quality of a resource, either
air, water or land, and are frequently expressed as a concentration allowed of a determined
substance as not to become a pollutant or exceed environmental compliance standards9
for
the desirable resource’s use.
Finally, the scheme provided by ISO 14031 does not allow organizing the information
beyond the structure shown in Figure 2, which has been taken from the Standard as appears
in p. 4 and 13. But the provided framework does not show how to link different kind of
indicators one to the other or how Management Performance Indicators must focus on
Environmental Operational Indicators, so the organization achieves a better Environmental
Performance.
Application of the OECD Model P-S-R to build Environmental Indicators inside the ISO
14000 scheme
There are various conceptual frameworks available that can be used to guide the selection,
development and use of indicators10,11
, but the most accepted one at World level due to its
8
ISO 14031:2000, Op cit., p.4
9
www.derm.qld.gov.au/environmental_management/air/air_quality_monitoring/airpollutants/index.html
10
Adriaanse A.; 1993; Environmental Policy Performance Indicators, General of Environment of the Dutch Ministry of Housing,
VROM, The Hague, The Netherlands.
11
Bakkes J. A., van den Born G., Helder J., Swart R., Hope C., Parker J.; 1994; An Overview of Environmental Indicators:
Environmental Indicators for EPE Alvaro H. Pescador EMS Text Contribution
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simplicity, facility of use and the possibility of application to different levels, scales and
human activities is the one of the OECD, known as P-S-R show in Figure 312
.
Fig. 3 OECD P-S-R Conceptual Framework
The model P-S-R is a simple framework which allows to organize the information in a causal
progression of the human actions that produce a pressure on the natural resources, and that
at the same time involve a change in the state of the environment. Then the Organizations
respond with measures or actions, to reduce or to prevent significant environmental impacts.
It gives the possibility to focus the environmental management in a cause/effect relationship
to the driven forces which produces the degradation of the natural resource conditions.
In agreement with the definitions provided in ISO 14031 Standard, the OECD model could
be adopted as shown in Figure 4.
Fig. 4 Model for Environmental Performance Evaluation
What put pressure over the environment is:
1. The demand of natural resources, eg:
1.1 Water used in m3
/day, or
1.2 BPD, Barrels Per Day of fuel used.
2. Atmospheric Emissions, liquid effluents and solid wastes, e.g:
2.1 GHG –Green House Gases Emissions in Ton CO2-e per year,
2.2 Spent waters in (M3
/day) or
2.3 Spent batteries in Ton/year
State of the Art and Perspectives, Environment Assesment Technical Reports, RIVM in co-operation with The University
of Cambridge and, UNEP-RIVM.
12
OECD; 1993; OECD Core Set of Indicators for Environmental Performance Reviews, Environmental Monograph # 83,
OECD, Paris
Impacts
OPIs ECIs MPIs
Management
Impacts
PRESSURE STATE RESPONSE
Environmental Indicators for EPE Alvaro H. Pescador EMS Text Contribution
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In this way, the Operational Performance Indicators are linked to the Environmental Aspects
of the different processes and sites at the Organization. On the other hand, the spent waters,
for instance, may cause the concentration of a certain pollutant affect the quality of a river,
which is possible to be measured by the use of ECIs.
The environmental impacts are rather hard to measure. It is known that combustion
processes increase the concentration of CO2 in the atmosphere (Condition) which is
producing the global warming: impact. But the impact chain is so complex. Thus, increasing
atmosphere temperature is increasing oceans temperature; coral reefs are dying, affecting
the food chain in the oceans. Glaciers are melting, affecting the availability of fresh water
resources13
, and sickness as malaria are also increasing.
It would be unfeasible for an organization to try to establish what its contribution is towards
global warming14
, instead there are significant and immediate opportunities for organizations
to implement EPE processes by using and an indicators system within their EMS, to drive
beyond compliance outcomes, including the topic of Green House Gases Emissions,
regardless the presence or absence of compulsory law, taxations schemes, or the use of
any other kind of economic instrument.
How to build Indicators for EPE in a Cost Effective way?
The Planning stage to build an Environmental information System that supports the EMS
implies a process of synthesis and aggregation in different phases. This process should be
done in agreement with the decisions making cycle (Figure 1), implies the development of a
specific framework (Figure 4) and a methodology to build the information (Figure 5, which
will be applied in the case of study for Green House Gases emissions management).
Obtaining data, statistical analysis and information production is an elaboration process that
requires an initial structure, in a matrix derived, for instance, from the Environmental
Management Programs that the organization has decide to establish and the different
categories of the Proposed Model (Figure 4).
The production of indicators requires both an aggregation and synthesis processes in
different steps, which can be visualized by means of the well known information pyramid
(Hammond et al., 1995). At the base of the process we find data obtained through
monitoring and analytic process; with which statistics and time series can be built, and these,
in turn, contribute to the creation of indicators and indices15
.
13
Bates, B.C., Z.W. Kundzewicz, S. Wu and J.P. Palutikof, Eds., 2008: Climate Change and Water. Technical Paper of the
Intergovernmental Panel on Climate Change, IPCC Secretariat, Geneva, 210 pp
14
The IPCC and the Convention of Climate Change of the UNEP has think up a way in which an organization can
address the problem of GHG emissions by the enforcement of the Kyoto Protocol (Response, in agreement to
Figure 3). Nevertheless some developing countries such as United States and Australia have not ratified the
Protocol yet.
15
In turn the Indicators and Index can be at the base of another pyramid, composed from the base to the top of
Sustainable Indicators (Social, Economic, Environmental), Systems, Innovations, Strategies, Agreements and
Actions that shift organizations and the society as a whole toward sustainability. ATIKSON, Allan (2008), “The
ISIS AGREEMENT How Sustainability Can Improve Organizational Performance and Transform the World”,
London, 322 pp.
Environmental Indicators for EPE Alvaro H. Pescador EMS Text Contribution
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Fig. 5 The Information Pyramid
In this manner, the system will permit to improve and to do more efficient the process of
exchange, diffusion and communication of the information, structuring the different sources,
analyzing and synthesizing the environmental aspects that are common to different sites and
processes, as well as identifying interactions among variables. Of such form, the System will
be able to guide and to perfect the data harvesting process, as well as helping to identify
processes, sites and operations where the available information is inadequate or
nonexistent, to incorporate all these elements to the decision making cycle16
.
On the other hand, to build information is always expensive. As it is shown in table 1, there is
a selection criteria that can be summarized in three basic groups to be kept in mind: 1)
Accuracy of the data; 2) Relation with the problems and driven forces, and 3) Utility for the
users.
16
PESCADOR, A, “Toward an ideal Assessment Scheme of the Environmental Indicators System to Monitor
Natural Resources and its Management in Australia”, NLWRA, Camberra, 2004.
Aggregated
Indicators
Index
Aggregation
1
10 Simple
Indicators
100 Analyzed Data
Primar Data
1,000
5
Environmental Indicators for EPE Alvaro H. Pescador EMS Text Contribution
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Board 1. Main Criteria Issues to be taken into account when selecting a core o
Environmental Indicators (EPA,1999; Rump,2003)
DATA Accuracy Relation with the problems Utility for the USERS
Scientific Support
Measurement Techniques
Representatively
Convenience of the Scales
Applicability
Not Redundancy
Availability Geographic area involved
Compressibility and
Interpretability
Quality
Sensitivity to the changing
conditions
Value of Reference
Cost-effective
development
Specificity Retrospective-Predictive
Statistics Series
Accessibility
Connectivity
Comparability
Opportunity
Afterwards there are some specific requests associated with each one of these three criteria
groups, which should be kept in mind for the selection, elaboration and use of the
indicators17
.
TERMS AND ABREVIATIONS
EIA: Environmental Impact Assessment
EMS: Environmental Management System
EPE: Environmental Performance Evaluation
ISO: International Standard Organization
IPCC: Intergubermental Panel on Climate Change
UNEP: United Nations Environmental Program
17
Besides these, there is an operating series of criteria that allows for differentiation of information types. The
basic information, in general is presented in form of data and its unit (pluviosity in mm, vegetable cover in km2
).
Nevertheless these basic data in the case of a reserve or resource can be an indicator (water demand in
m3/seg, surface of forests in Km2
) particularly when series of time are presented and is observed then
changes in the reserve or resource. The indicators are in general information that relates a parameter with a
variable and are presented in form of data in function of the time, the space and/or the population (agricultural
lands in hectares per capita, density of population by km2). Finally, the indices are the result of the combination
of two parameters related to a variable (e.g. relation reforestation/deforestation).
Environmental Indicators for EPE Alvaro H. Pescador EMS Text Contribution
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Case of Study – EPE of the Oil Enterprise CHACO S.A.
In order to have a better Environmental Performance, the Oil Enterprise CHACO S.A. set the
goal of decreasing in 20% its Green House Gases Emissions by the end of 2002 year,
respect to those sent along 2001, which were estimated in 200,000 Ton of CO2-e (OPI). To
achieve the goal they established the following Programs and MPIs:
1. To implement a Total Management Program for the use of more energy efficient
processes that allowed 10.000 Ton of CO2 weren’t sent to the atmosphere along
2002.
MPITMP: % of CO2 reduced over the target = (10.000 / 40.000 ) * 100
Note: at the end of 2002 the value of this indicator was: 25 %
2. To implement a Program for Wastes Reduction at the Sweet Gas Treatment Plant
avoiding 12.000 Ton of CO2 be released to the atmosphere.
MPIWRSGTP: % of CO2 reduced over the target = (12.000 / 40.000) * 100
Note: at the end of 2002 the value of this indicator was: 30 %
3. Through the implementation of an Eco Efficiency concept stop sending 200 MCF
(200.000 Cubic Feet) of Gas per day (90% methane), and by the development of a
new Project to compress the gas, connect it to an existing pipe and sale it.
In agreement with the mass balance shown in Appendix 2, 200.000 Cubic Feet of
Gas per day (90% methane) are equal to 1.218 Ton of Methane py. By using the
Global Warming Potential factor (Appendix 1 Ton of CH4 = 21 Ton CO2) these are
equivalent to 25.581 Ton of CO2-e.
MPI: % of CO2 emissions py reduced due to sales of Methane
25.580 Ton of CO2-e
MPIEEC = ----------------------------- * 100 = 63,95 %
40.000 Ton of CO2-e
Note: at the end of 2002 the value of this indicator was: 63,95 %
4. At the end of 2002, a Management Performance Index Ton of CO2-e reduced vs
planed was:
MPIGHG Reduced PY = (25% + 30% + 63,95%) = 118,95 %
And the Proposed Goal was not only accomplished, but overcome:
40,000 Ton of CO2-e were the target,
(10,000 + 12,000 + 25.580) = 47.580 Ton of CO2-e were not released to the
atmosphere, so:
EPE Management index of GHG = 47.580 / 40.000 = 1.19 better than planed
The goal was exceeded by 19%.
Environmental Indicators for EPE Alvaro H. Pescador EMS Text Contribution
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Environmental Performance Evaluation and Eco efficiency
The Environmental Indicators may be used then, to follow up the achievement of objectives
and goals which normally are administered by the establishment of Environmental Programs
and Projects, and play a key role for monitoring activities not only for environmental
compliance (4.5.2) but also for the Evaluation of eco efficient processes as the one
schematized in Figure 6.
Fig. 6 EPE and how to measure Eco efficiency
Trough out the use of an environmental indicators core an organization may realize weather
its major environmental aspects are linked to the Atmospheric Emissions, Solid Waste
Generation or the kind and amount of liquid effluents. It maybe also convenient to work with
the chain of Raw Materials suppliers: which one of them consumes Renewable or non
Renewable Natural Resources? What type and amount of energy is necessary to use in
agreement to the processes?
In the case of study, The Chaco Oil Enterprise found that avoiding GHG Emissions was key
to dramatically increase its Environmental Performance. Moreover, those emissions
specifically related to Methane, bearing in mind that in agreement to its GWP factor one Ton
of Methane is equivalent to 21 of CO2 (Appendix 1)..
On the other hand, by the means of an eco efficient project, what it was a pollutant became
a byproduct, which could be sold into the market. The Cost Benefit Analysis of the Project is
shown in the following page, using US dollars of 2002.
Environmental Indicators for EPE Alvaro H. Pescador EMS Text Contribution
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CBA - What is the value of the Recuperated Gas?
The value depended upon18
:
1. The Heat capacity of the gas in MM BTU / MPC
2. The way in which the gas would be used, which might be;
2.1 In situ, it is valued in terms of the substituted fuel
2.2 Gas Natural Pipe, it is valued for the price in the market.
In the case of the Empresa Petrolera Chaco S.A. the Gas was compressed and sent to a
pipe line of Transredes S.A. to be sold (exported to Brazil) in agreement to its daily
composition. An average for 2002 with the Heat Capacity for the mixture, in agreement to its
chromatographic composition is shown in Table 219
.
Composition and Heat Capacity of the Gas sold due to Eco Efficient Project in 2002
G A S
Composition
%
BTU / CF
MM BTU /
MCF
Contribution in
MM BTU / MCF
Methane 90,02 1012 1,01 0,911
Ethane 4,35 1773 1,77 0,077
Propane 2,78 2524 2,52 0,007
Butane 1,26 3271 3,27 0,041
Iso Butane 0,75 3261 3,26 0,024
Pentanes + 0,84 4380 4,38 0,036
TOTAL 1,096
The price for the exportation of Bolivian Gas in 2002 was of U$ 1,59 per MM BTU20
, so:
200.000 CF 1,096 MM BTU U$ 1,59 365 days
---------------- * -------------------- * --------------- * ------------- = 127.212 U$ / year
1 day 1000 CF 1 MM BTU 1 year
18
PEMEX and USA-EPA (2006), Methane to Markets, “Methane Emisions Reduction by recuperation in stoing
tanks" (Reduccion de emisiones de metano mediante recuperación en tanques de almacenamiento),
Mexico, 2006.
19
EMPRESA PETROLERA CHACO S.A. Information from the EMS ISO 14001, 2002. www.chaco.com.bo
20
GUMUCIO DEL VILAR, Ricardo, “El Gas en Bolivia, aspectos tecnicos”, http://www.univalle.edu-
/publicaciones/journal/journal11/pagina01.htm
Environmental Indicators for EPE Alvaro H. Pescador EMS Text Contribution
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CBA - Is it profitable the Recuperation?
Project’s cost can be computed by a scale factor, in agreement with Table 321
TABLE 3. SIZE AND COST OF GAS RECUPERATION UNITS
SCALE
(MCF / day)
Capital Cost
U$
Installation
Cost U$
Operation &
Maintenance
Cost U$ / year
TOTAL
COST(1st
year)
25 15000 7500 525 23025
50 19500 15000 600 35100
100 23500 19000 720 43220
200 31500 25000 840 57340
5000 44000 33000 1200 78200
Just during the first operational year the CBA Analysis for the Project gives the following
Revenues:
CBA1 = Benefits1 – Cost1
CBA1 = 127.212 – 57.340
CBA1 = 68.872 U$ (2002)
But it is internationally accepted to Estimate the CBA of Processing Projects during a life
period of 10 years. After 10 years of operation (estimating the same price for the Gas):
CBA10 = Benefits10 – Cost10
CBA10 = 1.272.120 – 49.700
CBA10 = 1.222.420 U$ (2002)
Is a good business to be green?
Trough this project Chaco Oil Enterprise is not only avoiding to send 25.580 Ton of CO2-e to
the atmosphere along each operational year, is also obtaining more than a million dollars
along 10 operational years. If in January of 2010 an enterprise would like to the same, we
could add the value of this revenue to the one that can be obtained through the application
of Clean Developing Mechanism, in agreement with the Kyoto Protocol22
. By computing an
average value of U$ 16,5 / Ton CO2 eq23
along 3 years (2010 – 2012) which is the remaining
time of the Protocol, we have:
25580 Ton eq CO2 16,5 US
3 years * -------------------------- * ---------------- = 1.266.210 US
1 year Ton eq CO2
CBAKYOTO = 1.222.420 U$ + 1.266.210
CBAKYOTO = 2.488.630 US (2002)
21
PEMEX and USA-EPA (Op. cit., p. 21)
22
UNEP (1997), Kyoto Protocol, United Nations Framework Convention on Climate Change, Kyoto.
23
http://www.ecolocap.com/site/index.php/fr_FR/press-room/industry-news/cer-prices-rise-as-carbon-
markets-jump.html
Environmental Indicators for EPE Alvaro H. Pescador EMS Text Contribution
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APPENDIX 1. META DATA. Methodological Sheet to Build GHG Emissions Indicator
Theme Variable Pressure (OPIs) State (CPIs) Response (MPIs)
ATMOSPHERE Global
Warming
Green House
Gases Emissions
(Ton CO2 Eq / Year)
Name: Green Houses Gases Emissions.
Descriptor: Measurement of Green House Gases Emitted, inducing Global Warming.
Units: Ton of CO2-e / year.
Geographical
Denominator Basic: Georeferenced
Definition and
Concepts Green House Gases correspond to Dioxide and Monoxide of Carbon, Methane, CFCs
and Nitrogen Oxides24. Although CFCs are known as substances which induce
depletion of the ozone layer, they also have a strong Global Warming Potential
capacity, with degradation horizons between 20 and 100 years. On the other hand,
Nitrogen Oxides causes acid rains, are ozone layer deplezores and induce global
warming: one molecule of N2O has 310 times more power to catch heat, than a
molecule of CO2.
Measurement Estimation of CO, CO2, CH4 and NOX emissions, is made upon fossil fuels production
and consumption (combustion of hydrocarbons), volatilization of its vapors, industrial
processes (cement manufacture, mainly), land use changes such as deforestation
and pasturing, inadequate agricultural practices and waste disposal. On the other
hand, CFCs has its source in the refrigeration industry, rigid foam manufacturing and
aerosol propellants, mainly.
The following parameters or relevant activities are internationally used to build this
indicator, bearing in mind the emissions of each kind of gas done by the activities25.
1. Energy (Generation and use)
2. Industrial Production (Cement Manufacturing)
3. Agriculture (Including Catering)
4. Land Use Change
5. Waste Disposal
To avoid double counting, It is internationally accepted to build CFCs as separate
indicator, bearing in mind its importance as Ozone Layer depletion substances
(controlled under Montreal Protocol).
The indicator is built then for each direct GHG not controlled under the Montreal
Protocol, as recommended by the Intergovernmental Panel on Climate Change of
United Nations (IPCC). The Global Warming Potential, GWP, is used then as a
standardization factor to compute the emissions as equivalents of CO2 for a
degradation time of 100 years, as shown on Table A4.126.
24
United Nations Commission on Sustainable Development, “Indicators of Sustainable Development,
Framework and Methodologies”, UNEP, New York, 428 p.
25
UNEP, WMO, OECD, 1995, “IPCC Guidelines for National Greenhouse Gas Inventories”, New York, 87 p.
26
LASHOF and AHUJA, quoted by Winograd, Manuel, “Environmental Indicators for Latin American and the
Caribbean: Toward the Sustainability in Land Use”, IICA; GTZ; OEA; WRI, San Jose of Costa Rica, 1995, 84
p.
Environmental Indicators for EPE Alvaro H. Pescador EMS Text Contribution
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Table A4.1 GWP Factors for Direct GHG
GAS GWP
Carbon Dioxide, CO2 1
Methane, CH4 21
Nitrous Oxide, N2O 310
Carbon Monoxide (CO), Volatile Organic Compounds (VOC), and NOX, are
considered indirect GHG by the IPCC (Econormopoulus, 1993; UNEP, 1995). The
IPCC has come to harmonize Data Comparability, and made an inventory taking
1990 as base year. The idea of the Kyoto Protocol ratified by 187 states (at
November 2009) is to reduce 5% of the emissions measured in 1990 by the end of
2012.
Importance This indicator measures organization processes contribution to global warming.
Although there are natural GHG emissions, human contribution is considered a
climate change factor (IPCC, Second Assessment Report, 1995). It is also a world
wide accepted instrument (Convention on Climate Change, UNEP) to record driving
forces which may have intergenerational consequences.
The IPCC points that Earth’s temperature could increase from 2 up to 6°C around
2100, which means a bigger overheat than the one from 10.000 years ago27. This
would cause ecosystem changes, sea level increment producing inundation of coastal
areas due to poles melting, and snowy mountains reduction.
Interpretation CO2 emissions depend upon energy generation and consumption, production systems,
industrial structure, transport systems, agriculture and forest practices. CH4 or
methane from agriculture, catering, waste disposal as well as hydrocarbons
transportation and processing
If the indicator decreases in time it shows a better Environmental Performance for the
Organization.
On the other hand, it is necessary to be extremely cautious with emissions
standardization to Ton of CO2-e, due to GWP factors may change as the international
community increases its knowledge about absorption and degradation of the CO2
cycle, used as a reference substance (UNEP, Montreal Protocol, 1994, p.13.20-
13.30). So, for standardized analysis, it is necessary to use the same GWP factors for
all the statistical series.
Limitations CFCs and NOX causes global warming, but as they are controlled under the Montreal
protocol as Ozone Layer depletors are not taking into account in this indicator, as
recommended by IPCC. This indicator is built just upon conventional direct GHG
emissions, while undirected GHG emissions (CO, VOCs, and troposphere O3) are not
being taking into account, neither unconventional emissions such as
Hidroflorocarbons (HFC), Perflorocarbons (PFC) and Sulfur Hexafluoride (SF6) also
defined as GHG by the Kyoto Protocol.
Alternative
Indicators Due to each substance causes different over heated levels, it is necessary to develop
simple or individual indicators for each kind of emission (as shown in Figures A4.1
and A4.2) before aggregation in Ton of CO2-e.
27
IPCC, 2007, “Climate Change 2007: Synthesis Report”, Intergovernmental Panel on Climate Change, Valencia, 52 pp.
Environmental Indicators for EPE Alvaro H. Pescador EMS Text Contribution
__________________________________________________________________________________
Relationship
with other
Indicators There are Global Warming synergism with other indicators such as CFC and NOX
emissions, which are also deplezores of the ozone layer. A better compression to the
possible damage caused to ecosystems, local and global environment may be
inferred by integrating analysis with state indicators (concentration of conventional
atmosphere contaminants in big cities) and impact indicators (population exposed to
contract Malaria due to global warming).
It will be also useful to establish correlations between emission levels and energy
consumption from fossil fuels sources, GNP and GHG emissions per capita, as well
as land use changes.
International
Conventions The convention on Climate Change of United Nations ratified by 152 countries points
at the article 4 that by 2000 CO2 emissions in Ton eq. as well as the one of direct and
indirect GHG not controlled under Montreal Protocol, should stay at the same level of
the base line (1990). The Kyoto Protocol in vigor since February 2005 (55% of Global
Emission with the entrance of the Russia Federation), is an instrument that aims
contribute to the reduction of GHG from 2008 to 2012 at a global scale, by having a 5
% target of World’s emissions28.
Available
Information IPCC, http://www.ipcc.ch/index.htm
Bibliography
COMMISSION ON SUSTAINABLE DEVELOPMENT, 1997 “Indicators of Sustainable Development,
Framework and Methodologies”, UNEP, New York, 428 p.
Ulrich Bartsch and Benito Müller, 2000, Fossil Fuels in a Changing Climate: Impacts of the Kyoto
Protocol and Developing Country Participation, Oxford University Press, Oxford.
IPCC, 2007, “Climate Change 2007: Synthesis Report”, Intergovernmental Panel on Climate
Change, Valencia, 52 pp.
UNEP (1997), Kyoto Protocol, United Nations Framework Convention on Climate Change, Kyoto.
UNEP, WMO, OECD, 2005, “IPCC Guidelines for National Greenhouse Gas Inventories”, New York
28
UNEP (1997), Kyoto Protocol, United Nations Framework Convention on Climate Change, Kyoto
Environmental Indicators for EPE Alvaro H. Pescador EMS Text Contribution
__________________________________________________________________________________
APPENDIX 2.
Calculations to convert 2 MMCF per day of gas with 90% of Methane to Ton of CO2-e per
year:
0,30483
m3
200.000 ft3
Gas x ----------------- = 5.663,3 m3
of Gas (PM of CH4= 16 gr/mol)
1 ft3
From Gay Lussac Ideal Gases Eq: PV = n R T, then: M = P*V* PM / R * T (A-1)
Ideal Conditions of T,P are assumed : (25ºC, 1 atm), so in the Gay Lussac ideal gases Eq (A-1):
1 atm* 5.663,3 m3*ºK* Kmol *0,9 16 Kg
M = -----------------------------------------*------- = 3.337.3 Kg of CH4 / day
0,082 atm * m3 * 298ºK * 1Kmol
3.337,3 Kg 1 Ton 365 days
In one year: ----- * ----------- * ------------- = 1.218 Ton of CH4 /year
Day 1000 Kg 1 year
When it is burn, the methane produces CO2 in agreement with the following equation:
CH4 + 2O2  CO2 + 2H2O (A-2)
When is NOT burn and just released to the atmosphere, the GWP Factor (21) must be used as a
multiplying convertor factor, shown in the Meta Data for GHG Emissions as appears in Appendix 2.
Therefore:
1.218 Ton of CH4 * 21 Ton Eq CO2
--------------------- = 25.580,8 Ton eq. CO2
1 Ton CH4

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6.. EPE OF EMS ISO 14001

  • 1. Environmental Indicators for EPE Alvaro H. Pescador EMS Text Contribution __________________________________________________________________________________ USING INDICATORS WISELY BEYOND COMPLAINCE: ENVIRONMENTAL PERFORMANCE EVALUATION FOR CONTINUAL IMPROVEMENT OF EMS ISO 14001 Introduction The requirements for an Environmental Management Systems established in the International Standard ISO 14001, are based upon the Deming Cycle of Continual Improvement. As such, the Deming cycle shown in Figure 1, provides to the organization which has accredited an EMS within the opportunity of using a powerful tool that can shift the processes of its chain value beyond compliance. Fig. 1 Deming Cycle to support Decision Making Process in EMS ISO 14001 After exploring 128 facilities in Beijing, Hong Kong and Shanghai researchers1 realized that the main drivers for certification were: 1. Ensuring regulatory compliance 2. Enhancing the firm’s reputation 3. Improving Environmental Performance The study concludes that companies are looking for certification elsewhere and that subsequently ISO 14001 as currently being implemented in mainland China may have a modesty useful role, given the fact that improving Environmental Performance was in third place. Beyond compliance, objectives and targets set for eco efficient processes can be established in order to reduce materials use, the amount of water demanded, the energy necessary to move equipment and fluids, as well as re-engineering processes to obtain byproducts instead wastes and residues: that is the challenge and opportunity organizations are facing around the world for responding to the complexity of Climate Change2 . To implement these eco efficient strategies, which decouple economic growth from environmental pollution, it is necessary to build environmental indicators that can be able to show organization’s achievement of objectives and goals, toward a more sustainable 1 Fryxell, G., Wing-Hung Lo, C. and Chung, S. (2004) “Influence of Motivations for Seeking ISO 14001: Certifications of Perceptions of MES Effectiveness in China”1 Springer, Environmental Management, vol 33, no. 2 pp 239-25 Springer- Velag New York. 2 Smith, M, Hargroves, K. and Dhesa, C. (2010) “Cents and Sustainability, Making Sense on How to Grow Economies, Strengthen Communities and Revive the Environment in Our Lifetime”, Earthscan, London, p. 142. PLAN DOCHECK ACT
  • 2. Environmental Indicators for EPE Alvaro H. Pescador EMS Text Contribution __________________________________________________________________________________ operation. In other words, a better environmental performance, that can be measured not only in a technical and scientific supported way, but in a cost effective manner as well. Barriers to EMS as a tool for Continual Improvement Among the barriers that an EMS can face, identified and documented by TNEP are the following3 : 1. Reactionary rather than proactive 2. Avoiding more aggressive regulation 3. Resourcing aimed at just compliance 4. Lack of leveraging savings 5. Lack of budget for implementation and review 6. Increasing number of stages models, tools, techniques, schemes, standards, rather than focusing on operations and opportunities for improvement4 7. Difficulty in measuring achievements 8. EMS Lock-in Barriers 2, 3, 7 and 8, this is half of the barriers identified by TNEP are linked with the topic of EPE (Environmental Performance Evaluation). Continual Improvement indeed, is the main reason for which EMS ISO 14001 was structured based upon the Deming Cycle shown in Figure 1. But it is only possible to improve that which is being measured. This is the reason why Environmental Indicators play a key role in the ISO 14001 scheme: they are necessary at the PLANNING stage in order to set objectives and goals in a technical and reasonable way. They are indispensable at the CHECKING stage to monitor the operations, processes and projects being executed by the organization, and they are definitely a useful tool when the management review is executed to support the decision making process (ACT). The Role of EPE and ISO 14031 in Continual Improvement ISO 14031 states that Environmental Performance Evaluation and the necessary development of information must be integrated to the PDCA Deming cycle shown in Figure 1, as appears in Figure 25 . This means that EPE is a process that requires Design, Construction and Information use, which allows the organization to acquire and maintain a detailed knowledge of its own operations and processes in order to quantify and measure environmental aspects, environmental impacts6 , the percentage of success in achieving objectives and goals, a 3 Desha, C. (2009) “Can Environmental Management Systems Drive Factor 5?”, in von Weizsacker, E., Hargroves, K., Smith, M., Descha, C. and Stasinopoulos, P. (in Press) Factor 5: Transofrming the Global Economy trough 80% Increase in Resource Productivity Earthscan, London. (7 pages). 4 Orsato, R. (2006) “Competitive Environmental Strategies: When Does it Pay to be Green?”, California Management Review, vol 48, no.2, winter. 5 ISO 14031:2000 Environmental Management – Environmental Performance Evaluation – Guidelines, International Organization for Standardization 6 Environmental Impacts are harder to measure than environmental aspects, due to some of them have not only local but also regional and global implications as in the case of global warming (an environmental impact) derived from Green House Gas Emissions (an environmental aspect).
  • 3. Environmental Indicators for EPE Alvaro H. Pescador EMS Text Contribution __________________________________________________________________________________ record of environmental accidents and incidents, etc. In order to so, it is necessary to build different kind of environmental indicators under a systemic approach. Fig. 2 Environmental Performance Evaluation, ISO 14031 As it can be seen, in a first stage a selection or formulation of the environmental indicators that are necessary the support the decision making process of the EMS is done. Once the indicators have been formulated it is necessary to build them, collecting the data in a systematical way for what most of the time it is very convenient to develop meta data, also known as methodological sheets for each one of the indicators that the organization considers desirable to build7 . After a period of time and through the analysis of statistical series the indicators will show tendencies or will call the attention to operations or processes 7 WINOGRAD M., PESCADOR A. and Others, “Indicators System for Environmental Planning and Evaluation”, CIAT-UNEP-DNP, Bogota, 1997 PLAN 3.2 Planing Environmental Performance Evaluation DO 3.3 Using data and information 3.2.2 Collecting Data 3.2.2 Analyzing and converting DAtaDatos 3.2.3 Assessing Information 3.2.4 Reporting & Communicating 3.2.2 Selecting Indicators for EPE Data Information Results CHECK AND ACT 4.3 Environmental Performance Evaluation: Review and Improvement
  • 4. Environmental Indicators for EPE Alvaro H. Pescador EMS Text Contribution __________________________________________________________________________________ that have a more relevant impact over the environment, as also identified by the EIA (requirement 4.3.1 of ISO 14001). Difficulties of applying ISO 14031 to develop Environmental Indicators for EPE ISO 14031 defines the following kind of indicators for EPE8 : 1. Environmental Performance Indicators (EPIs), which can be: 1.1 Management Performance Indicators (MPIs), or 1.2 Operational Performance Indicators (OPIs) 2. Environmental Condition Indicators (ECIs) The concepts given on the ISO 14031 Standard (Op. cit p. 5-10), and the figures used to explain them are difficult to understand (e.g. the standard defines operational performance indicator, OPI, as “environmental performance indicator that provides information about the environmental performance of an organization’s operations”, so what does this mean? The subdivision of Environmental Performance Indicators in two categories, the first one Management Performance Indicators, and the second one Operational Performance Indicators is opposed to a cause-effect or problem-solution approach. There in not any kind of link between the Environmental Performance Indicators (both Management and Operation) and the Environmental Condition Indicators, which are handle in a second group or class, as if there were not a close relationship between them and those. Condition indicators are used to trace the environmental quality of a resource, either air, water or land, and are frequently expressed as a concentration allowed of a determined substance as not to become a pollutant or exceed environmental compliance standards9 for the desirable resource’s use. Finally, the scheme provided by ISO 14031 does not allow organizing the information beyond the structure shown in Figure 2, which has been taken from the Standard as appears in p. 4 and 13. But the provided framework does not show how to link different kind of indicators one to the other or how Management Performance Indicators must focus on Environmental Operational Indicators, so the organization achieves a better Environmental Performance. Application of the OECD Model P-S-R to build Environmental Indicators inside the ISO 14000 scheme There are various conceptual frameworks available that can be used to guide the selection, development and use of indicators10,11 , but the most accepted one at World level due to its 8 ISO 14031:2000, Op cit., p.4 9 www.derm.qld.gov.au/environmental_management/air/air_quality_monitoring/airpollutants/index.html 10 Adriaanse A.; 1993; Environmental Policy Performance Indicators, General of Environment of the Dutch Ministry of Housing, VROM, The Hague, The Netherlands. 11 Bakkes J. A., van den Born G., Helder J., Swart R., Hope C., Parker J.; 1994; An Overview of Environmental Indicators:
  • 5. Environmental Indicators for EPE Alvaro H. Pescador EMS Text Contribution __________________________________________________________________________________ simplicity, facility of use and the possibility of application to different levels, scales and human activities is the one of the OECD, known as P-S-R show in Figure 312 . Fig. 3 OECD P-S-R Conceptual Framework The model P-S-R is a simple framework which allows to organize the information in a causal progression of the human actions that produce a pressure on the natural resources, and that at the same time involve a change in the state of the environment. Then the Organizations respond with measures or actions, to reduce or to prevent significant environmental impacts. It gives the possibility to focus the environmental management in a cause/effect relationship to the driven forces which produces the degradation of the natural resource conditions. In agreement with the definitions provided in ISO 14031 Standard, the OECD model could be adopted as shown in Figure 4. Fig. 4 Model for Environmental Performance Evaluation What put pressure over the environment is: 1. The demand of natural resources, eg: 1.1 Water used in m3 /day, or 1.2 BPD, Barrels Per Day of fuel used. 2. Atmospheric Emissions, liquid effluents and solid wastes, e.g: 2.1 GHG –Green House Gases Emissions in Ton CO2-e per year, 2.2 Spent waters in (M3 /day) or 2.3 Spent batteries in Ton/year State of the Art and Perspectives, Environment Assesment Technical Reports, RIVM in co-operation with The University of Cambridge and, UNEP-RIVM. 12 OECD; 1993; OECD Core Set of Indicators for Environmental Performance Reviews, Environmental Monograph # 83, OECD, Paris Impacts OPIs ECIs MPIs Management Impacts PRESSURE STATE RESPONSE
  • 6. Environmental Indicators for EPE Alvaro H. Pescador EMS Text Contribution __________________________________________________________________________________ In this way, the Operational Performance Indicators are linked to the Environmental Aspects of the different processes and sites at the Organization. On the other hand, the spent waters, for instance, may cause the concentration of a certain pollutant affect the quality of a river, which is possible to be measured by the use of ECIs. The environmental impacts are rather hard to measure. It is known that combustion processes increase the concentration of CO2 in the atmosphere (Condition) which is producing the global warming: impact. But the impact chain is so complex. Thus, increasing atmosphere temperature is increasing oceans temperature; coral reefs are dying, affecting the food chain in the oceans. Glaciers are melting, affecting the availability of fresh water resources13 , and sickness as malaria are also increasing. It would be unfeasible for an organization to try to establish what its contribution is towards global warming14 , instead there are significant and immediate opportunities for organizations to implement EPE processes by using and an indicators system within their EMS, to drive beyond compliance outcomes, including the topic of Green House Gases Emissions, regardless the presence or absence of compulsory law, taxations schemes, or the use of any other kind of economic instrument. How to build Indicators for EPE in a Cost Effective way? The Planning stage to build an Environmental information System that supports the EMS implies a process of synthesis and aggregation in different phases. This process should be done in agreement with the decisions making cycle (Figure 1), implies the development of a specific framework (Figure 4) and a methodology to build the information (Figure 5, which will be applied in the case of study for Green House Gases emissions management). Obtaining data, statistical analysis and information production is an elaboration process that requires an initial structure, in a matrix derived, for instance, from the Environmental Management Programs that the organization has decide to establish and the different categories of the Proposed Model (Figure 4). The production of indicators requires both an aggregation and synthesis processes in different steps, which can be visualized by means of the well known information pyramid (Hammond et al., 1995). At the base of the process we find data obtained through monitoring and analytic process; with which statistics and time series can be built, and these, in turn, contribute to the creation of indicators and indices15 . 13 Bates, B.C., Z.W. Kundzewicz, S. Wu and J.P. Palutikof, Eds., 2008: Climate Change and Water. Technical Paper of the Intergovernmental Panel on Climate Change, IPCC Secretariat, Geneva, 210 pp 14 The IPCC and the Convention of Climate Change of the UNEP has think up a way in which an organization can address the problem of GHG emissions by the enforcement of the Kyoto Protocol (Response, in agreement to Figure 3). Nevertheless some developing countries such as United States and Australia have not ratified the Protocol yet. 15 In turn the Indicators and Index can be at the base of another pyramid, composed from the base to the top of Sustainable Indicators (Social, Economic, Environmental), Systems, Innovations, Strategies, Agreements and Actions that shift organizations and the society as a whole toward sustainability. ATIKSON, Allan (2008), “The ISIS AGREEMENT How Sustainability Can Improve Organizational Performance and Transform the World”, London, 322 pp.
  • 7. Environmental Indicators for EPE Alvaro H. Pescador EMS Text Contribution __________________________________________________________________________________ Fig. 5 The Information Pyramid In this manner, the system will permit to improve and to do more efficient the process of exchange, diffusion and communication of the information, structuring the different sources, analyzing and synthesizing the environmental aspects that are common to different sites and processes, as well as identifying interactions among variables. Of such form, the System will be able to guide and to perfect the data harvesting process, as well as helping to identify processes, sites and operations where the available information is inadequate or nonexistent, to incorporate all these elements to the decision making cycle16 . On the other hand, to build information is always expensive. As it is shown in table 1, there is a selection criteria that can be summarized in three basic groups to be kept in mind: 1) Accuracy of the data; 2) Relation with the problems and driven forces, and 3) Utility for the users. 16 PESCADOR, A, “Toward an ideal Assessment Scheme of the Environmental Indicators System to Monitor Natural Resources and its Management in Australia”, NLWRA, Camberra, 2004. Aggregated Indicators Index Aggregation 1 10 Simple Indicators 100 Analyzed Data Primar Data 1,000 5
  • 8. Environmental Indicators for EPE Alvaro H. Pescador EMS Text Contribution __________________________________________________________________________________ Board 1. Main Criteria Issues to be taken into account when selecting a core o Environmental Indicators (EPA,1999; Rump,2003) DATA Accuracy Relation with the problems Utility for the USERS Scientific Support Measurement Techniques Representatively Convenience of the Scales Applicability Not Redundancy Availability Geographic area involved Compressibility and Interpretability Quality Sensitivity to the changing conditions Value of Reference Cost-effective development Specificity Retrospective-Predictive Statistics Series Accessibility Connectivity Comparability Opportunity Afterwards there are some specific requests associated with each one of these three criteria groups, which should be kept in mind for the selection, elaboration and use of the indicators17 . TERMS AND ABREVIATIONS EIA: Environmental Impact Assessment EMS: Environmental Management System EPE: Environmental Performance Evaluation ISO: International Standard Organization IPCC: Intergubermental Panel on Climate Change UNEP: United Nations Environmental Program 17 Besides these, there is an operating series of criteria that allows for differentiation of information types. The basic information, in general is presented in form of data and its unit (pluviosity in mm, vegetable cover in km2 ). Nevertheless these basic data in the case of a reserve or resource can be an indicator (water demand in m3/seg, surface of forests in Km2 ) particularly when series of time are presented and is observed then changes in the reserve or resource. The indicators are in general information that relates a parameter with a variable and are presented in form of data in function of the time, the space and/or the population (agricultural lands in hectares per capita, density of population by km2). Finally, the indices are the result of the combination of two parameters related to a variable (e.g. relation reforestation/deforestation).
  • 9. Environmental Indicators for EPE Alvaro H. Pescador EMS Text Contribution __________________________________________________________________________________ Case of Study – EPE of the Oil Enterprise CHACO S.A. In order to have a better Environmental Performance, the Oil Enterprise CHACO S.A. set the goal of decreasing in 20% its Green House Gases Emissions by the end of 2002 year, respect to those sent along 2001, which were estimated in 200,000 Ton of CO2-e (OPI). To achieve the goal they established the following Programs and MPIs: 1. To implement a Total Management Program for the use of more energy efficient processes that allowed 10.000 Ton of CO2 weren’t sent to the atmosphere along 2002. MPITMP: % of CO2 reduced over the target = (10.000 / 40.000 ) * 100 Note: at the end of 2002 the value of this indicator was: 25 % 2. To implement a Program for Wastes Reduction at the Sweet Gas Treatment Plant avoiding 12.000 Ton of CO2 be released to the atmosphere. MPIWRSGTP: % of CO2 reduced over the target = (12.000 / 40.000) * 100 Note: at the end of 2002 the value of this indicator was: 30 % 3. Through the implementation of an Eco Efficiency concept stop sending 200 MCF (200.000 Cubic Feet) of Gas per day (90% methane), and by the development of a new Project to compress the gas, connect it to an existing pipe and sale it. In agreement with the mass balance shown in Appendix 2, 200.000 Cubic Feet of Gas per day (90% methane) are equal to 1.218 Ton of Methane py. By using the Global Warming Potential factor (Appendix 1 Ton of CH4 = 21 Ton CO2) these are equivalent to 25.581 Ton of CO2-e. MPI: % of CO2 emissions py reduced due to sales of Methane 25.580 Ton of CO2-e MPIEEC = ----------------------------- * 100 = 63,95 % 40.000 Ton of CO2-e Note: at the end of 2002 the value of this indicator was: 63,95 % 4. At the end of 2002, a Management Performance Index Ton of CO2-e reduced vs planed was: MPIGHG Reduced PY = (25% + 30% + 63,95%) = 118,95 % And the Proposed Goal was not only accomplished, but overcome: 40,000 Ton of CO2-e were the target, (10,000 + 12,000 + 25.580) = 47.580 Ton of CO2-e were not released to the atmosphere, so: EPE Management index of GHG = 47.580 / 40.000 = 1.19 better than planed The goal was exceeded by 19%.
  • 10. Environmental Indicators for EPE Alvaro H. Pescador EMS Text Contribution __________________________________________________________________________________ Environmental Performance Evaluation and Eco efficiency The Environmental Indicators may be used then, to follow up the achievement of objectives and goals which normally are administered by the establishment of Environmental Programs and Projects, and play a key role for monitoring activities not only for environmental compliance (4.5.2) but also for the Evaluation of eco efficient processes as the one schematized in Figure 6. Fig. 6 EPE and how to measure Eco efficiency Trough out the use of an environmental indicators core an organization may realize weather its major environmental aspects are linked to the Atmospheric Emissions, Solid Waste Generation or the kind and amount of liquid effluents. It maybe also convenient to work with the chain of Raw Materials suppliers: which one of them consumes Renewable or non Renewable Natural Resources? What type and amount of energy is necessary to use in agreement to the processes? In the case of study, The Chaco Oil Enterprise found that avoiding GHG Emissions was key to dramatically increase its Environmental Performance. Moreover, those emissions specifically related to Methane, bearing in mind that in agreement to its GWP factor one Ton of Methane is equivalent to 21 of CO2 (Appendix 1).. On the other hand, by the means of an eco efficient project, what it was a pollutant became a byproduct, which could be sold into the market. The Cost Benefit Analysis of the Project is shown in the following page, using US dollars of 2002.
  • 11. Environmental Indicators for EPE Alvaro H. Pescador EMS Text Contribution __________________________________________________________________________________ CBA - What is the value of the Recuperated Gas? The value depended upon18 : 1. The Heat capacity of the gas in MM BTU / MPC 2. The way in which the gas would be used, which might be; 2.1 In situ, it is valued in terms of the substituted fuel 2.2 Gas Natural Pipe, it is valued for the price in the market. In the case of the Empresa Petrolera Chaco S.A. the Gas was compressed and sent to a pipe line of Transredes S.A. to be sold (exported to Brazil) in agreement to its daily composition. An average for 2002 with the Heat Capacity for the mixture, in agreement to its chromatographic composition is shown in Table 219 . Composition and Heat Capacity of the Gas sold due to Eco Efficient Project in 2002 G A S Composition % BTU / CF MM BTU / MCF Contribution in MM BTU / MCF Methane 90,02 1012 1,01 0,911 Ethane 4,35 1773 1,77 0,077 Propane 2,78 2524 2,52 0,007 Butane 1,26 3271 3,27 0,041 Iso Butane 0,75 3261 3,26 0,024 Pentanes + 0,84 4380 4,38 0,036 TOTAL 1,096 The price for the exportation of Bolivian Gas in 2002 was of U$ 1,59 per MM BTU20 , so: 200.000 CF 1,096 MM BTU U$ 1,59 365 days ---------------- * -------------------- * --------------- * ------------- = 127.212 U$ / year 1 day 1000 CF 1 MM BTU 1 year 18 PEMEX and USA-EPA (2006), Methane to Markets, “Methane Emisions Reduction by recuperation in stoing tanks" (Reduccion de emisiones de metano mediante recuperación en tanques de almacenamiento), Mexico, 2006. 19 EMPRESA PETROLERA CHACO S.A. Information from the EMS ISO 14001, 2002. www.chaco.com.bo 20 GUMUCIO DEL VILAR, Ricardo, “El Gas en Bolivia, aspectos tecnicos”, http://www.univalle.edu- /publicaciones/journal/journal11/pagina01.htm
  • 12. Environmental Indicators for EPE Alvaro H. Pescador EMS Text Contribution __________________________________________________________________________________ CBA - Is it profitable the Recuperation? Project’s cost can be computed by a scale factor, in agreement with Table 321 TABLE 3. SIZE AND COST OF GAS RECUPERATION UNITS SCALE (MCF / day) Capital Cost U$ Installation Cost U$ Operation & Maintenance Cost U$ / year TOTAL COST(1st year) 25 15000 7500 525 23025 50 19500 15000 600 35100 100 23500 19000 720 43220 200 31500 25000 840 57340 5000 44000 33000 1200 78200 Just during the first operational year the CBA Analysis for the Project gives the following Revenues: CBA1 = Benefits1 – Cost1 CBA1 = 127.212 – 57.340 CBA1 = 68.872 U$ (2002) But it is internationally accepted to Estimate the CBA of Processing Projects during a life period of 10 years. After 10 years of operation (estimating the same price for the Gas): CBA10 = Benefits10 – Cost10 CBA10 = 1.272.120 – 49.700 CBA10 = 1.222.420 U$ (2002) Is a good business to be green? Trough this project Chaco Oil Enterprise is not only avoiding to send 25.580 Ton of CO2-e to the atmosphere along each operational year, is also obtaining more than a million dollars along 10 operational years. If in January of 2010 an enterprise would like to the same, we could add the value of this revenue to the one that can be obtained through the application of Clean Developing Mechanism, in agreement with the Kyoto Protocol22 . By computing an average value of U$ 16,5 / Ton CO2 eq23 along 3 years (2010 – 2012) which is the remaining time of the Protocol, we have: 25580 Ton eq CO2 16,5 US 3 years * -------------------------- * ---------------- = 1.266.210 US 1 year Ton eq CO2 CBAKYOTO = 1.222.420 U$ + 1.266.210 CBAKYOTO = 2.488.630 US (2002) 21 PEMEX and USA-EPA (Op. cit., p. 21) 22 UNEP (1997), Kyoto Protocol, United Nations Framework Convention on Climate Change, Kyoto. 23 http://www.ecolocap.com/site/index.php/fr_FR/press-room/industry-news/cer-prices-rise-as-carbon- markets-jump.html
  • 13. Environmental Indicators for EPE Alvaro H. Pescador EMS Text Contribution __________________________________________________________________________________ APPENDIX 1. META DATA. Methodological Sheet to Build GHG Emissions Indicator Theme Variable Pressure (OPIs) State (CPIs) Response (MPIs) ATMOSPHERE Global Warming Green House Gases Emissions (Ton CO2 Eq / Year) Name: Green Houses Gases Emissions. Descriptor: Measurement of Green House Gases Emitted, inducing Global Warming. Units: Ton of CO2-e / year. Geographical Denominator Basic: Georeferenced Definition and Concepts Green House Gases correspond to Dioxide and Monoxide of Carbon, Methane, CFCs and Nitrogen Oxides24. Although CFCs are known as substances which induce depletion of the ozone layer, they also have a strong Global Warming Potential capacity, with degradation horizons between 20 and 100 years. On the other hand, Nitrogen Oxides causes acid rains, are ozone layer deplezores and induce global warming: one molecule of N2O has 310 times more power to catch heat, than a molecule of CO2. Measurement Estimation of CO, CO2, CH4 and NOX emissions, is made upon fossil fuels production and consumption (combustion of hydrocarbons), volatilization of its vapors, industrial processes (cement manufacture, mainly), land use changes such as deforestation and pasturing, inadequate agricultural practices and waste disposal. On the other hand, CFCs has its source in the refrigeration industry, rigid foam manufacturing and aerosol propellants, mainly. The following parameters or relevant activities are internationally used to build this indicator, bearing in mind the emissions of each kind of gas done by the activities25. 1. Energy (Generation and use) 2. Industrial Production (Cement Manufacturing) 3. Agriculture (Including Catering) 4. Land Use Change 5. Waste Disposal To avoid double counting, It is internationally accepted to build CFCs as separate indicator, bearing in mind its importance as Ozone Layer depletion substances (controlled under Montreal Protocol). The indicator is built then for each direct GHG not controlled under the Montreal Protocol, as recommended by the Intergovernmental Panel on Climate Change of United Nations (IPCC). The Global Warming Potential, GWP, is used then as a standardization factor to compute the emissions as equivalents of CO2 for a degradation time of 100 years, as shown on Table A4.126. 24 United Nations Commission on Sustainable Development, “Indicators of Sustainable Development, Framework and Methodologies”, UNEP, New York, 428 p. 25 UNEP, WMO, OECD, 1995, “IPCC Guidelines for National Greenhouse Gas Inventories”, New York, 87 p. 26 LASHOF and AHUJA, quoted by Winograd, Manuel, “Environmental Indicators for Latin American and the Caribbean: Toward the Sustainability in Land Use”, IICA; GTZ; OEA; WRI, San Jose of Costa Rica, 1995, 84 p.
  • 14. Environmental Indicators for EPE Alvaro H. Pescador EMS Text Contribution __________________________________________________________________________________ Table A4.1 GWP Factors for Direct GHG GAS GWP Carbon Dioxide, CO2 1 Methane, CH4 21 Nitrous Oxide, N2O 310 Carbon Monoxide (CO), Volatile Organic Compounds (VOC), and NOX, are considered indirect GHG by the IPCC (Econormopoulus, 1993; UNEP, 1995). The IPCC has come to harmonize Data Comparability, and made an inventory taking 1990 as base year. The idea of the Kyoto Protocol ratified by 187 states (at November 2009) is to reduce 5% of the emissions measured in 1990 by the end of 2012. Importance This indicator measures organization processes contribution to global warming. Although there are natural GHG emissions, human contribution is considered a climate change factor (IPCC, Second Assessment Report, 1995). It is also a world wide accepted instrument (Convention on Climate Change, UNEP) to record driving forces which may have intergenerational consequences. The IPCC points that Earth’s temperature could increase from 2 up to 6°C around 2100, which means a bigger overheat than the one from 10.000 years ago27. This would cause ecosystem changes, sea level increment producing inundation of coastal areas due to poles melting, and snowy mountains reduction. Interpretation CO2 emissions depend upon energy generation and consumption, production systems, industrial structure, transport systems, agriculture and forest practices. CH4 or methane from agriculture, catering, waste disposal as well as hydrocarbons transportation and processing If the indicator decreases in time it shows a better Environmental Performance for the Organization. On the other hand, it is necessary to be extremely cautious with emissions standardization to Ton of CO2-e, due to GWP factors may change as the international community increases its knowledge about absorption and degradation of the CO2 cycle, used as a reference substance (UNEP, Montreal Protocol, 1994, p.13.20- 13.30). So, for standardized analysis, it is necessary to use the same GWP factors for all the statistical series. Limitations CFCs and NOX causes global warming, but as they are controlled under the Montreal protocol as Ozone Layer depletors are not taking into account in this indicator, as recommended by IPCC. This indicator is built just upon conventional direct GHG emissions, while undirected GHG emissions (CO, VOCs, and troposphere O3) are not being taking into account, neither unconventional emissions such as Hidroflorocarbons (HFC), Perflorocarbons (PFC) and Sulfur Hexafluoride (SF6) also defined as GHG by the Kyoto Protocol. Alternative Indicators Due to each substance causes different over heated levels, it is necessary to develop simple or individual indicators for each kind of emission (as shown in Figures A4.1 and A4.2) before aggregation in Ton of CO2-e. 27 IPCC, 2007, “Climate Change 2007: Synthesis Report”, Intergovernmental Panel on Climate Change, Valencia, 52 pp.
  • 15. Environmental Indicators for EPE Alvaro H. Pescador EMS Text Contribution __________________________________________________________________________________ Relationship with other Indicators There are Global Warming synergism with other indicators such as CFC and NOX emissions, which are also deplezores of the ozone layer. A better compression to the possible damage caused to ecosystems, local and global environment may be inferred by integrating analysis with state indicators (concentration of conventional atmosphere contaminants in big cities) and impact indicators (population exposed to contract Malaria due to global warming). It will be also useful to establish correlations between emission levels and energy consumption from fossil fuels sources, GNP and GHG emissions per capita, as well as land use changes. International Conventions The convention on Climate Change of United Nations ratified by 152 countries points at the article 4 that by 2000 CO2 emissions in Ton eq. as well as the one of direct and indirect GHG not controlled under Montreal Protocol, should stay at the same level of the base line (1990). The Kyoto Protocol in vigor since February 2005 (55% of Global Emission with the entrance of the Russia Federation), is an instrument that aims contribute to the reduction of GHG from 2008 to 2012 at a global scale, by having a 5 % target of World’s emissions28. Available Information IPCC, http://www.ipcc.ch/index.htm Bibliography COMMISSION ON SUSTAINABLE DEVELOPMENT, 1997 “Indicators of Sustainable Development, Framework and Methodologies”, UNEP, New York, 428 p. Ulrich Bartsch and Benito Müller, 2000, Fossil Fuels in a Changing Climate: Impacts of the Kyoto Protocol and Developing Country Participation, Oxford University Press, Oxford. IPCC, 2007, “Climate Change 2007: Synthesis Report”, Intergovernmental Panel on Climate Change, Valencia, 52 pp. UNEP (1997), Kyoto Protocol, United Nations Framework Convention on Climate Change, Kyoto. UNEP, WMO, OECD, 2005, “IPCC Guidelines for National Greenhouse Gas Inventories”, New York 28 UNEP (1997), Kyoto Protocol, United Nations Framework Convention on Climate Change, Kyoto
  • 16. Environmental Indicators for EPE Alvaro H. Pescador EMS Text Contribution __________________________________________________________________________________ APPENDIX 2. Calculations to convert 2 MMCF per day of gas with 90% of Methane to Ton of CO2-e per year: 0,30483 m3 200.000 ft3 Gas x ----------------- = 5.663,3 m3 of Gas (PM of CH4= 16 gr/mol) 1 ft3 From Gay Lussac Ideal Gases Eq: PV = n R T, then: M = P*V* PM / R * T (A-1) Ideal Conditions of T,P are assumed : (25ºC, 1 atm), so in the Gay Lussac ideal gases Eq (A-1): 1 atm* 5.663,3 m3*ºK* Kmol *0,9 16 Kg M = -----------------------------------------*------- = 3.337.3 Kg of CH4 / day 0,082 atm * m3 * 298ºK * 1Kmol 3.337,3 Kg 1 Ton 365 days In one year: ----- * ----------- * ------------- = 1.218 Ton of CH4 /year Day 1000 Kg 1 year When it is burn, the methane produces CO2 in agreement with the following equation: CH4 + 2O2  CO2 + 2H2O (A-2) When is NOT burn and just released to the atmosphere, the GWP Factor (21) must be used as a multiplying convertor factor, shown in the Meta Data for GHG Emissions as appears in Appendix 2. Therefore: 1.218 Ton of CH4 * 21 Ton Eq CO2 --------------------- = 25.580,8 Ton eq. CO2 1 Ton CH4