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Greenhouse Gas Accounting
       for the land-based sector


Annette Cowie, Richard Eckard, Sandra Eady
Inventory

   UNFCCC reporting

   Kyoto Protocol Accounts
Emissions trading
 Mandatory:
     European, NZ Emissions trading schemes
     NSW GGAS

Offset projects
 International:
     Kyoto Protocol Clean Development
      Mechanism
     Voluntary Carbon Standard etc

 Australia:
     National Carbon Offset Standard
     Carbon Farming Initiative
Life cycle assessment – Carbon
footprint
International context
 Inventory reporting       GHG accounting

 UNFCCC                    Kyoto Protocol

 All countries             Annex I countries

                  Sectoral boundaries
                    National scale
                   IPCC Guidelines

         Emissions and removals
Industry context
 Offsets                  LCA

 CFI etc                  Carbon labels

 Businesses               Products or
                            organisations
             Cradle to grave boundaries
                     Farm scale
            Scheme Guidelines, Standards

Emissions reduction, removal enhancement
Inventory: What matters?

Purpose: Assess contribution,
 compliance
  • Conservative

  • Consistent

  • Reflect anthropogenic drivers

  • Accurate?
National carbon accounting system



Inventory
LCA/Carbon footprint: What matters?
   Purpose: Inform consumers, compare
    products, identify opportunities for
    mitigation
     • Consistent

     • Right incentive

     • Accurate
Pip Brock, I&I NSW, preliminary data for
illustrative purposes only
Greenhouse gas accounting for the land-based sector - Annette Cowie
Offset projects: What matters?
Purpose: Quantify abatement, ensure integrity
Biochar system                                      Reference system
                                                                                  Fossil
                  Biomass                           Biomass
                                                                              energy/carbon
                  residue                           residue                      source


                                                                                Extraction
                  Transport

                                                   Transport                     Transport
                  Pyrolysis to
                  biochar and
                    syngas                                                      Conversion to
                                                   Composting
                                                                                energy carrier

                                                   Distribution of               Distribution of
Distribution of              Distribution of         compost                     energy carrier
   biochar                   energy carrier
                                                                 Fertiliser
                                                                manufacture

                                                            Distribution of
                                                               fertiliser

   Soil                       Energy service            Soil                    Energy service
amendment                    (heat, electricity)     amendment                 (heat, electricity)
Carbon Farming Initiative
National Carbon Offset Standard
Commence July 2011
Abatement activities generate credits for
 trade in
   Domestic voluntary market
   International voluntary and compliance
    markets
Carbon Farming Initiative

Possible projects
 Kyoto sinks: reforestation

 Kyoto emissions reduction: eg landfill,
 manure management, livestock methane,
 nitrous oxide from fertiliser
 Non-Kyoto activities#: eg soil carbon
 management, avoided deforestation,
 savanna burning
#Excluded   from Australia‟s Kyoto Protocol accounts
Offset projects: What matters?
CFI Integrity standards: Offset projects must be
 Additional
 Measurable and Verifiable
 Permanent
 Conservative
 Internationally consistent
 Supported by peer-reviewed science
And must avoid leakage
 Assessed by Domestic Offsets Integrity Committee
Additionality

Is it new abatement?
   (“Abatement should be “additional” to “business-as-
   usual” if it used to offset emissions”)
 Required by legislation?

 Common practice?

 “Positive list”
Is it measurable?
Reforestation/ revegetation
Counting carbon in trees

                                      Carbon makes up 50% of tree biomass

                                      Predict carbon from allometric relationships




                                10
                                         Heaton PF
                                         Ourimbah NF
log Above-ground biomass (kg)




                                 9
                                         Wabby NF
                                 8       Mckenzie NF
                                         Myall Lakes NF
                                 7       Hills PF
                                         Tooloom PF
                                 6       Hannam Vale PF

                                 5

                                 4

                                 3

                                 2

                                 1

                                 0
                                     0                 1      2         3   4   5
                                                              Log dbh(cm)
Soil carbon management
 cropland management
 grazing management
 organic amendments: eg
  biochar
Soil carbon measurement




     No-till
Nitrous oxide emissions from soil

 Legumes in rotation

 Timing of fertiliser application

 Slow release
  fertilisers, nitrification inhibitors
Methane from ruminant livestock
 Herd management

 Pasture composition

 Dietary supplements
                                       Reflector
 Breeding for net feed efficiency

                                     Wind




                                       Reflector




                                            FTIR
Quantifying abatement
Do we need to monitor it?
Balance accuracy against transaction costs
• Cost-effective accounting
  – Based on calibrated models (informed by baseline
    measurement?)
• Credit based on modelled estimate rather than
  measured impact of practice
Greenhouse gas accounting for the land-based sector - Annette Cowie
Is it verifiable?

 Verification based on implementing land management
  practice rather than measured abatement
Is it permanent abatement?

 “abatement should represent a permanent
  reduction in CO2 in the atmosphere”

NSW GGAS forestry offset:
 “100 year rule”
 Registration on title: forest carbon rights,
  restriction on use

Kyoto CDM: temporary credits
CFI:
    Aggregation (pooling) across properties
    Risk of reversal buffer
Are „life cycle‟ emissions
considered?
 Emissions due to fossil fuel use, indirect (fertiliser,
  herbicide), and non-CO2 greenhouse gases should be
  included
 Increased soil N, by fertiliser, legumes or some
  organic amendments, will increase N2O - C credit for
  offset activities should be discounted for estimated
  increase in N2O
Are there offsite impacts?
(Leakage)
 Biomass depleted at another site?

 Increased livestock numbers elsewhere?

 Increased emissions offsite, attributable to
 the project, should be included
Dealing with uncertainty
 Eg GGAS: discount for uncertainty “70% rule”
  Can only trade quantity for which 70% probability
  that actual sequestration exceeds traded C
                    9

                    8

                    7

                    6
      Probability




                    5

                    4

                    3

                    2

                    1

                    0
                        0.5   1         1.5          2           2.5            3   3.5


                                  Estimated Carbon Stock Values ('000 tonnes)
Dealing with uncertainty
 Eg GGAS: discount for uncertainty “70% rule”
  Can only trade quantity for which 70% probability
  that actual sequestration exceeds traded C
                    9

                    8
                              70% of estimated values
                              are greater than 1,700.
                    7

                    6
      Probability




                    5

                    4

                    3

                    2

                    1

                    0
                        0.5          1           1.5         2           2.5            3   3.5


                                          Estimated Carbon Stock Values ('000 tonnes)
Will it be an effective incentive?

 Sufficiently attractive to encourage
 participation?
 Costs vs returns
    Record keeping
    “Monitoring”
    Reporting
    Audit
 Long term liability
„Factoring-Out‟

 Kyoto Protocol accounting:
 Intention to “factor-out” direct human-
 induced changes from changes due
 to indirect human-induced and
 natural effects


 Give credit/debit for intentional
 actions
Average carbon stocks approach

 Credit/debit based on long term modelled
 average
 No monitoring

 Minimises transaction costs

 Rewards actions that give benefit, on average

 Rewards all equally

 Avoids need to “pay back” for natural
 fluctuations or trends
Conclusion

 GHG accounting for Inventory, Offsets and LCA have
  different purposes, use similar data and methods but give
  different results due to different boundaries
 Appropriate methods are a compromise between accuracy
  and cost; must provide the right incentive and preserve
  environmental integrity
 Need for better understanding of uncertainty, better models of
  processes eg methane, nitrous oxide
Accounting for offsets:

 Accept dynamic system

 Manage risk of impermanence

 Assign credit/debit for intentional actions

 Reward action, modelled estimate, not measured abatement

 Include whole system, all emissions, including off-site

 Combination of baseline measurement and modelling may be
  optimal for quantification
 Certainty and absolute accuracy not required

 Minimise transaction costs so encourage participation, to
  maximise abatement

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Greenhouse gas accounting for the land-based sector - Annette Cowie

  • 1. Greenhouse Gas Accounting for the land-based sector Annette Cowie, Richard Eckard, Sandra Eady
  • 2. Inventory  UNFCCC reporting  Kyoto Protocol Accounts
  • 3. Emissions trading  Mandatory:  European, NZ Emissions trading schemes  NSW GGAS Offset projects  International:  Kyoto Protocol Clean Development Mechanism  Voluntary Carbon Standard etc  Australia:  National Carbon Offset Standard  Carbon Farming Initiative
  • 4. Life cycle assessment – Carbon footprint
  • 5. International context  Inventory reporting  GHG accounting  UNFCCC  Kyoto Protocol  All countries  Annex I countries Sectoral boundaries National scale IPCC Guidelines Emissions and removals
  • 6. Industry context  Offsets  LCA  CFI etc  Carbon labels  Businesses  Products or organisations Cradle to grave boundaries Farm scale Scheme Guidelines, Standards Emissions reduction, removal enhancement
  • 7. Inventory: What matters? Purpose: Assess contribution, compliance • Conservative • Consistent • Reflect anthropogenic drivers • Accurate?
  • 8. National carbon accounting system Inventory
  • 9. LCA/Carbon footprint: What matters? Purpose: Inform consumers, compare products, identify opportunities for mitigation • Consistent • Right incentive • Accurate
  • 10. Pip Brock, I&I NSW, preliminary data for illustrative purposes only
  • 12. Offset projects: What matters? Purpose: Quantify abatement, ensure integrity
  • 13. Biochar system Reference system Fossil Biomass Biomass energy/carbon residue residue source Extraction Transport Transport Transport Pyrolysis to biochar and syngas Conversion to Composting energy carrier Distribution of Distribution of Distribution of Distribution of compost energy carrier biochar energy carrier Fertiliser manufacture Distribution of fertiliser Soil Energy service Soil Energy service amendment (heat, electricity) amendment (heat, electricity)
  • 14. Carbon Farming Initiative National Carbon Offset Standard Commence July 2011 Abatement activities generate credits for trade in  Domestic voluntary market  International voluntary and compliance markets
  • 15. Carbon Farming Initiative Possible projects  Kyoto sinks: reforestation  Kyoto emissions reduction: eg landfill, manure management, livestock methane, nitrous oxide from fertiliser  Non-Kyoto activities#: eg soil carbon management, avoided deforestation, savanna burning #Excluded from Australia‟s Kyoto Protocol accounts
  • 16. Offset projects: What matters? CFI Integrity standards: Offset projects must be  Additional  Measurable and Verifiable  Permanent  Conservative  Internationally consistent  Supported by peer-reviewed science And must avoid leakage  Assessed by Domestic Offsets Integrity Committee
  • 17. Additionality Is it new abatement? (“Abatement should be “additional” to “business-as- usual” if it used to offset emissions”)  Required by legislation?  Common practice?  “Positive list”
  • 20. Counting carbon in trees  Carbon makes up 50% of tree biomass  Predict carbon from allometric relationships 10 Heaton PF Ourimbah NF log Above-ground biomass (kg) 9 Wabby NF 8 Mckenzie NF Myall Lakes NF 7 Hills PF Tooloom PF 6 Hannam Vale PF 5 4 3 2 1 0 0 1 2 3 4 5 Log dbh(cm)
  • 21. Soil carbon management  cropland management  grazing management  organic amendments: eg biochar
  • 23. Nitrous oxide emissions from soil  Legumes in rotation  Timing of fertiliser application  Slow release fertilisers, nitrification inhibitors
  • 24. Methane from ruminant livestock  Herd management  Pasture composition  Dietary supplements Reflector  Breeding for net feed efficiency Wind Reflector FTIR
  • 25. Quantifying abatement Do we need to monitor it? Balance accuracy against transaction costs • Cost-effective accounting – Based on calibrated models (informed by baseline measurement?) • Credit based on modelled estimate rather than measured impact of practice
  • 27. Is it verifiable?  Verification based on implementing land management practice rather than measured abatement
  • 28. Is it permanent abatement?  “abatement should represent a permanent reduction in CO2 in the atmosphere” NSW GGAS forestry offset:  “100 year rule”  Registration on title: forest carbon rights, restriction on use Kyoto CDM: temporary credits CFI:  Aggregation (pooling) across properties  Risk of reversal buffer
  • 29. Are „life cycle‟ emissions considered?  Emissions due to fossil fuel use, indirect (fertiliser, herbicide), and non-CO2 greenhouse gases should be included  Increased soil N, by fertiliser, legumes or some organic amendments, will increase N2O - C credit for offset activities should be discounted for estimated increase in N2O
  • 30. Are there offsite impacts? (Leakage)  Biomass depleted at another site?  Increased livestock numbers elsewhere?  Increased emissions offsite, attributable to the project, should be included
  • 31. Dealing with uncertainty  Eg GGAS: discount for uncertainty “70% rule” Can only trade quantity for which 70% probability that actual sequestration exceeds traded C 9 8 7 6 Probability 5 4 3 2 1 0 0.5 1 1.5 2 2.5 3 3.5 Estimated Carbon Stock Values ('000 tonnes)
  • 32. Dealing with uncertainty  Eg GGAS: discount for uncertainty “70% rule” Can only trade quantity for which 70% probability that actual sequestration exceeds traded C 9 8 70% of estimated values are greater than 1,700. 7 6 Probability 5 4 3 2 1 0 0.5 1 1.5 2 2.5 3 3.5 Estimated Carbon Stock Values ('000 tonnes)
  • 33. Will it be an effective incentive?  Sufficiently attractive to encourage participation?  Costs vs returns  Record keeping  “Monitoring”  Reporting  Audit  Long term liability
  • 34. „Factoring-Out‟  Kyoto Protocol accounting: Intention to “factor-out” direct human- induced changes from changes due to indirect human-induced and natural effects  Give credit/debit for intentional actions
  • 35. Average carbon stocks approach  Credit/debit based on long term modelled average  No monitoring  Minimises transaction costs  Rewards actions that give benefit, on average  Rewards all equally  Avoids need to “pay back” for natural fluctuations or trends
  • 36. Conclusion  GHG accounting for Inventory, Offsets and LCA have different purposes, use similar data and methods but give different results due to different boundaries  Appropriate methods are a compromise between accuracy and cost; must provide the right incentive and preserve environmental integrity  Need for better understanding of uncertainty, better models of processes eg methane, nitrous oxide
  • 37. Accounting for offsets:  Accept dynamic system  Manage risk of impermanence  Assign credit/debit for intentional actions  Reward action, modelled estimate, not measured abatement  Include whole system, all emissions, including off-site  Combination of baseline measurement and modelling may be optimal for quantification  Certainty and absolute accuracy not required  Minimise transaction costs so encourage participation, to maximise abatement

Notas del editor

  1. Trees integrated with ag production:revegetation: riparian protectionagroforestry: shelter belts, wood lots short rotation woody crops for biomass
  2. Focus on northern tablelands (red), north-west slopes and plains (green) and lachlan (orange) catchments
  3. Check IBI news