The Climate Registry:

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The Climate Registry The Registry The
Protocol August 2008

Judy Collora, PE Senior Consultant
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Outline

• The Climate Registry (TCR) Overview
• Greenhouse Gas Basics
• TCR Protocol
• Example Calculation

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The Climate Registry Process

• Registry
• Houses emissions, transactions
• Protocol
• Guidance on how to perform inventory
• 3rd party Verification
• Publish (public data)

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The Climate Registry Background (1)

• Created in 2007
• Purpose
• Establish and endorse voluntary entity-wide GHG
  registry that collects data consistently across
  jurisdictions
• Encourage entities to join
• Incorporate quantification methodologies into
  future mandatory programs
• Current membership covers 80 of populations in
  the US and Canada (includes most of southeast)

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The Climate Registry Background (2)
www.theclimateregistry.org
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The Climate Registry - Tools

• General Reporting Protocol V1.1 released May 2008
• Developed through a public stakeholder process
• Drawn from existing protocols
• Developing industry-specific reporting protocols
• Power
• Oil Gas
• Municipal
• General Verification Protocol V1.0 released May
  2008
• Required to verify emissions
• Should be separate from company performing the
  inventory (conflict of interest)
• Climate Registry Information System (CRIS)
  launched in July 2008
• On-line GHG calculation, reporting, and
  verification tool
• Will have ability to calculate emissions in CO2e
  and aggregate emissions data by facility, state,
  county and entity
• Public access to The Climate Registrys verified
  emission reports

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Common Terms (1)

• TCR The Climate Registry
• GHG Greenhouse Gas
• GWP Global Warming Potential
• CO2e CO2 equivalents
• Direct Emissions Companys stationary and mobile
  sources
• Indirect Emissions Imported steam and power
• Other Indirect Emissions 3rd party /tolling
  sources

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Common Terms (2)

• Operational/Financial Control Approach
• Equity Share Approach
• IPCC Intergovernmental Panel on Climate Change
• WBCSD World Business Council for Sustainable
  Development
• WRI World Resources Institute

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Overview of Scope and Type of GHGs
Source WRI/WBCSD GHG Protocol Corporate
Accounting and Reporting Standard (Revised
Edition), Chapter 4.
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Sources of Greenhouse Gases
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Comparison of Global Warming Potentials from
IPCCs Second and Third Assessment Reports
Source California Climate Action Registry
General Reporting Protocol, April 2008
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Calculating CO2e

• CO2e is carbon dioxide equivalent
• CO2e reflects the global warming potential (GWP)
  of each greenhouse gas relative to carbon
  dioxide, which has a GWP of 1

• Emission rate 400 tpy CH4
• CH4 GWP 21
• 400 tpy CH4x 218,400 tpy CO2e

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Control vs. Equity Approach

• Control you make the EHS decisions
• Equity you have a financial stake only
• Example for company with financial interest
  (equity), but no control

• Operations 8,400 tpy CO2e
• No management control 0 tpy CO2e
• 10 equity share 840 tpy CO2e

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TCR Protocol Where to Find It

• http//www.theclimateregistry.org/downloads/GRP.pd
  f

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TCR Protocol What it Covers

• Geographic Scope
• Must report emissions sources in all of Canada,
  Mexico, and United States
• Must indicate if any facility is located on lands
  designated to Tribal Nations (Registry members)
• Can report worldwide emissions
• Organizational Scope
• Operational Control Approach
• Equity Approach
• Can report either or both
• Special Considerations for Lease Treatment
  (Capital vs. Operational leases)
• Emissions Scope
• Must report Direct (Scope 1) and Indirect (Scope
  2)
• All 6 GHGs
• Stationary and Mobile sources (combustion,
  process, and fugitives)
• Imported Steam, Heat, and Power
• Can report Other Indirect (Scope 3) e.g.,
  captive tolling, employee commuting

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TCR Protocol Option for First 2 Years

• Scope is reduced
• Transitional report
• CO2 emissions only
• Stationary combustion
• All operations in at least one state
• Typically based on operational control approach
• Must be Verified by 3rd party

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TCR Protocol Other Items

• Base Year Designation
• First year of full reporting (not transitional
  years)
• Update if emission changes exceed 5 of base year
  emissions
• No adjustments for acquisition (or insourcing) or
  divestments (or outsourcing) that were not in the
  base year
• De minimis Emissions
• 5 of total emissions (Scope 1 and 2)
• All emission sources accounted for in base year
  report cannot be deemed de minimis in future
  years (even if emissions drop below 5) ensures
  comparability to base year
• Efficiency Metrics optional (e.g., tonnes CO2e
  per widget produced)
• Verification
• Required annually by third-party
• Five-year verification cycle
• Reporting Timeline
• Emissions submitted by June 30 and verified by
  December 15

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Locating Emission Factors

• IPCC Guidelines for national inventory
  calculations and emission factors
• Database on Greenhouse Gas Emission Factors
  (EFDB)
• Contains IPCC default emission factors
• Search by source/sink categories, fuel type, and
  emission gases
• Other sector/general protocols (California
  Climate Action Registry)
• EPAs Air Pollutant Emission Factors, AP-42

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ExampleDirect Emissions fromStationary
Combustion

• Step 1 Identify all types of fuels combusted
• Step 2 Determine annual consumption of each fuel
• Step 3 Select appropriate emission factor for
  each fuel
• Step 4 Calculate each fuels CO2 emissions
• Step 5 Calculate each fuels CH4 and N2O
  emissions
• Step 6 Convert CH4 and N2O to CO2e and sum all
  GHG emissions
• Note assumes operational control, i.e., 100 of
  CO2e emissions

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Example Acme Widget Co.Stationary Combustion
Sources

• Step 1 Identify fuel natural gas
• Step 2 Annual fuel consumption
• Step 3 Select appropriate emission factors
  (Table 12.1 of TCR Protocol)
• CO2 52.91 kg/MMBtu
• CH4 0.0059 kg/MMBtu
• N2O 0.0001 kg/MMBtu

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Example Acme Widget Co.Stationary Combustion
Sources

• Step 4 Calculate CO2 emissions
• Step 5 Calculate CH4 and N2O emissions

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Example Acme Widget Co.Stationary Combustion
Sources

• Step 6 Convert to CO2e and sum all GHG emissions

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Conclusions

• If youre not developing a climate change
  strategy that includes a GHG emission inventory,
  consider acting now to ready yourself for future
  mandatory requirements.
• Leave yourself time to correct inconsistencies or
  recordkeeping issues (data gaps) before mandatory
  requirements are knocking at your door
• Consider basing your emission inventory after
  TCRs protocol likely future transition will be
  more seamless and you will be better prepared.
• Over the long term, GHG emissions are a business
  asset. Therefore, accurate carbon quantification
  and well-conceived carbon strategy are a must.

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• Questions?