2. Introduction to Climate Change - P. Pirasteh - September 2019
Concept of sustainable development
Our focus
“A development that meets the needs of the present without compromising the ability of future
generations to meet their own needs.”
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3. Introduction to Climate Change - P. Pirasteh - September 2019
Summary
1. Basics about Climate Change
2. Why companies should care about Climate Change
3. Measuring emissions
4. Carbon tax, Carbon pricing & CCSU solutions
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5. Introduction to Climate Change - P. Pirasteh - September 2019
Anthropogenic Climate Change
● Anthropogenic climate change refers to the production
of greenhouse gases (GHG) emitted by human activity
● Main GHG are carbon dioxide (CO2), methane (CH4),
nitrous oxide (N2O) and the halo carbons (a group of
gases containing fluorine,chlorine and bromine) - Kyoto
Protocol
● GHG is usually presented by CO2e (equivalent)
according to Global Warming Potential (GWP) of
different gases:
■ 1 Kg CO2= 1 Kg CO2e
■ 1 Kg CH4=28 Kg CO2e*
■ 1 Kg N2O=265 Kg CO2e*
● This training is mainly focused on CO2 emissions
*according to IPCC Fifth Assessment Report, 2014 (AR5)
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6. Introduction to Climate Change - P. Pirasteh - September 2019
Climate Change - Why it matters?
● In 2050, we need to provide 10 billion people with land where
they can settle, grow food, have access to clean water, build
cities, and rely on functioning ecosystems
● Without significant reductions in emissions, average global
temperatures could rise by 5ºC by the end of the century
impacting seriously our existing ecosystems
● Even Half a degree makes a very big difference (A degree by degree
explanation of what will happen when the earth warms)
● IPCC report in October 2018 shows the importance of
controlling global warming below 1.5ºC
Source:https://www.carbonbrief.org/scientists-compare-climate
-change-impacts-at-1-5c-and-2c
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7. 2
Why companies should care about
Climate Change
We can’t discuss economics without considering
climate change
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8. Introduction to Climate Change - P. Pirasteh - September 2019
The economics of emission reduction
Consumers Governments
Investors
Climate Change risks:
- Obsolency risks
- Lose competitiveness
- Carbon tax & binding regulations
- Company’s image
Climate Change Opportunities:
- Obtain carbon incentive
- Gain on efficiency
- Create new business
opportunities and new markets
Company Employees &
Talents
Increase Financial performance while
Minimizing risks of competitiveness,
obsolency, regulatory barriers, public
scandals, etc
Buy low carbon, responsible & ethical
products & services, being able to track
the origin and the content of products
Seek to be part of a company with high
social & environmental engagement,
seek for sense of purpose
Define rules & regulations, apply carbon
tax and incentives
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9. Introduction to Climate Change - P. Pirasteh - September 2019
Climate Action planning*
● Measure our GHG emissions aligned with applicable
Standard and protocols
● Set a Specific, Measurable, Atteignable, Realistic,
Trackable reduction target and get the key
stakeholders buy in
● Develop a comprehensive & applicable Action Plan
and share it widely
● Implement the action Plan with all stakeholders
● Monitor and track the progress & implement
corrective actions
● Communicate on results
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11. Introduction to Climate Change - P. Pirasteh - September 2019
Mandatory GHG reporting
Mandatory Greenhouse Gas (GHG) - aka Mandatory Carbon Reporting - is the law in at least 40 countries across the World, including UK,
many EU member states, North America, Australia, Japan and soon-to-be South Africa
● GHG Reporting qualification varies across jurisdictions - e.g. in the UK, only incorporated companies listed on the main market of the
London Stock Exchange/European Economic State/NYSE or NASDAQ are mandated to report, however in France, the reporting is
mandatory for publicly listed and non-listed companies with at least 500 employees and a minimum of 100 million Euros turnover
● Within the EU, GHG Reporting is included within Non Financial Reporting which also covers broader sustainability undertakings
● GHG Reporting Scope also can vary - commonly a minimum of Scopes 1 and 2 emissions are stipulated, though Scope 3 emission are
strongly recommended (particularly when data is readily accessible) and makes sense as it can be a major source of both carbon
emissions and cost for businesses
● GHG Reporting Methodology - commonly, the WRI/WBCSD GHG Protocol is followed, though there can be local variations to this.
● Overseas operations - Some jurisdictions require organisations to report emissions on their overseas operations (not just the home
country).
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12. Introduction to Climate Change - P. Pirasteh - September 2019
Standards for Greenhouse Gas
Emissions, measurement & reporting
GHG Protocol
● Internationally recognised & used protocol
● Partnership between the World Resource Council (WRC) and the World Business Council for Sustainable Development (WBCSD)
ISO 14060 greenhouse gas series:
● ISO 14064 series : Guidance for quantification, reporting, validation and verification at the organization & project level for
greenhouse gas emissions and removals
● ISO 14065-3:2007 - Requirements for greenhouse gas validation and verification bodies for use in accreditation or other forms of
recognition
● ISO 14067:2018 - Carbon footprint of products - Requirements and guidelines for quantification
● ISO 14040 and ISO 14044 - International Standards on life cycle assessment (LCA)
Publicly Available Specification (PAS) 2050
● Specification for the assessment of the life cycle greenhouse gas emissions of goods and services
● developed by the British Standards Institution in 2008 and revised in 2011
Consistency
between
3 standards
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13. Introduction to Climate Change - P. Pirasteh - September 2019
Focus on rating agencies
Companies effort are rated by independent agencies
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14. Introduction to Climate Change - P. Pirasteh - September 2019
Greenhouse gas Scopes*
● Scope 1 - Direct GHG emissions
occurring from sources that are
owned or controlled by the company
(except biomass combustion)
● Scope 2 - Indirect GHG emissions
from the generation of purchased
electricity, steam or heat consumed
by the company;
● Scope 3 - Indirect emissions are a
consequence of the activities of the
company, but occur from sources
not owned or controlled by the
company;
*According to GHG Protocol
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15. Introduction to Climate Change - P. Pirasteh - September 2019
What is avoided emissions
Avoided emissions are emission reductions that occur outside of a
product’s life cycle or value chain, but as a result of the use of that
product .
Calculation of avoided emissions via a comparison of emissions over the lifecycle of a solution versus the reference solution*
* Avoided Emission document
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16. Introduction to Climate Change - P. Pirasteh - September 2019
Product Carbon footprint & Life Cycle
Assessment
Product Carbon footprint (PCF)
● Single product or service’s carbon footprint
● Can be measured Cradle-to Grave or Cradle-to-Gate
or Gate-to-Gate
Recycling
&
recovery
Period of
Usage
Distribution
& Sales
Production
Raw Materials
&
Prefabrication
CH4
CO2
HFCs N2O
SF6
Product Life Cycle Assessments (LCA)
● LCA addresses all possible environmental impacts
(land use, water use and acidification, GHG emissions,
etc) of a product, good or service, throughout its life
cycle (cradle-to-grave)
● Can be measured Cradle-to Grave or Cradle-to-Gate
or Gate-to-Gate
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18. Introduction to Climate Change - P. Pirasteh - September 2019
Emission trading schemes and Carbon tax
● Emission trading system or Carbon taxes
implemented or scheduled in 46 national and 28
sub-national jurisdictions
● The world’s largest carbon market, European
Emissions Trading Scheme (EU-ETS), covering
sectors that emit over 2 billion tonnes of CO2 each
year
● The seven Chinese pilot ETS collectively cover
sources emitting over one billion tonnes of CO2
● In 2019, these initiatives would cover 11 GtCO2e,
representing 19.6% of global GHG emissions
https://carbonpricingdashboard.worldbank.org/map_data
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19. Introduction to Climate Change - P. Pirasteh - September 2019
European emissions trading system
EU-ETS: European emissions Trading System
● 12,000 installations in the sectors of electricity production, heating networks, steel,
cement, refineries, glass, paper, etc. represent over 40% of European greenhouse gas
emissions
● Each member estate allocate an allowances according to predefined caps
● At the end of each year,
■ An installation emitting more than its allocation must obtain the missing
quota: this is the principle of "the polluter pays".
■ An installation emitting less than its allocation can sell its unused
allowances and benefit from revenue that can be mobilized, for example,
to finance investment enabling them to better manage their emissions.
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20. Introduction to Climate Change - P. Pirasteh - September 2019
Carbon Compensation
Several mechanisms enable companies/countries to meet their emission reduction commitments by
offsetting them.
But a lot of those mechanisms are niches and can prevent the real investments and changes to happen.
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21. Introduction to Climate Change - P. Pirasteh - September 2019
Carbon Capture and Sequestration / Usage
(CCS/U)
Useful link: Carbon Capture Utilisation and Storage
● Carbon capture, utilisation and
storage/sequestration (CCUS), is an important
emissions reduction technology applicable in both
industrial sector and in power generation
● CCUS involves the capture and the transport of
CO2
,either as a resource to create valuable
products or services or its permanent storage
deep underground in geological formations
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22. Introduction to Climate Change - P. Pirasteh - September 2019
Carbon Capture and Usage & storage(CCUS)
Source: Global CCS Institute
Liquid Fuels
Polymers
Urea
Capture
Storage (CCS)
Storage
Enhanced Oil Recovery
Enhanced Geothermal
Enhanced Coal Bed Methane
Utilization (CCU)
Conversion
Mineralization
Carbonates
Concrete (Solidia)
Bauxite
Algae Cultivation
Biological
Chemical
Carbonated beverage
Food (freezing, transportation, etc)
Greenhouses
Cleaning/blasting
Welding
Desalination
Permanently
sequestrated
(CCUS)
Permanently
sequestrated (CCUS)
Utilization & Sequestration (CCUS)
Non-Conversion
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24. Introduction to Climate Change - P. Pirasteh - September 2019
References & supporting documents
● Review for Accounting rules for CCS
● Carbon Pricing dashboard
● Greenhouse Gas Protocol
● European commission-Smart Specialisation platform
● Understanding the European Union’s Emissions Trading System
● Greenhouse Gas Protocol FAQ
● SETIS Europe
● Global Risks report 2019
● The reality of climate change | David Puttnam
● Forget climate Apocalypse. There's hope for our warming planet | Jelmer Mommers |
● Why the IPCC Report is so Scary (Only 1st 9 minutes)
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