ISO Ghg climate change

GHG schemes addressing
climate change
How ISO
standards help

ISO in brief
ISO has a membership of 163* national communication technologies, the envi-
standards bodies from countries large ronment, energy, quality management,
and small, industrialized, developing conformity assessment and services.
and in transition, in all regions of the
ISO only develops standards for which
world. there is a clear market requirement.
ISO’s portfolio of over 18 500* stand- The work is carried out by experts in
ards provides business, government the subject drawn directly from the
and society with practical tools for all industrial, technical and business sec-
three dimensions of sustainable devel- tors that have identified the need for
opment : economic, environmental and the standard, and which subsequently
social. put the standard to use. These experts
may be joined by others with rele-
ISO standards make a positive con- vant knowledge, such as representa-
tribution to the world we live in. They tives of government agencies, testing
facilitate trade, spread knowledge, dis- laboratories, consumer associations
seminate innovative advances in tech- and academia, and by international
nology, and share good management governmental and nongovernmental
and conformity assessment practices. organizations.
ISO standards provide solutions and An ISO International Standard rep-
achieve benefits for almost all sec- resents a global consensus on the
tors of activity, including agriculture, state of the art in the subject of that
construction, mechanical engineer- standard.
ing, manufacturing, distribution, trans-
port, medical devices, information and * In November 2010.

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Acknowledgements
ISO gratefully acknowledges the ded- States), Dr. Klaus Radunsky (Austria),
icated work of : Dr. Graham Sinden and Dr. Anne-
• Tom Baumann, CEO of Marie Warris (United Kingdom), and
ClimateCHECK, and Co-founder Sophie Clivio and Kevin McKinley
of the Greenhouse Gas (from ISO Central Secretariat). The
Management Institute, who is the work was coordinated by Juan Simon
principal author of Chapters 3, 6, (ISO Central Secretariat).
7 and 8, and
This document has been developed
• Anja Kollmuss, Staff Scientist, by the above authors, with editing
Stockholm Environment Institute, and publishing by ISO. It is strictly an
who is the principal author of information document and in no way
Chapters 2 and 5. represents the consensus views con-
The authors received valuable com- tained in ISO standards and other ISO
ments from participants at the “ ISO deliverables.
Global Workshop on GHG schemes This document has been financed by
addressing climate change – How the Swedish International Development
ISO standards help ”, held on 20-21 Cooperation Agency, Sida, which
November 2009 in Stockholm, does not necessarily share the views
Sweden, and also from the follow- expressed. Responsibility for its con-
ing experts : Dr. Chan Kook Weng tent rests entirely with the authors, edi-
(Malaysia), Dr. Tod Delaney (United tors and publisher.

GHG schemes addressing climate change – How ISO standards help – 1

Contents
1- Introduction 3

2- Climate change update 5

3- Addressing climate change – Role of GHG standards 10
ISO’s contribution to environmental and climate change
4- standards 13
4.1 Development of ISO standards 13
4.2 ISO’s environmental standards 13
4.3 ISO’s contribution to addressing climate change 15
4.4 ISO’s greenhouse gas management standards 16

5- Overview of GHG programmes and standards 20
5.1 Programmes for nation - Wide GHG emission reporting 24
5.2 Organization-/ entity-wide GHG emissions standards 24
5.3 Corporate disclosure standards 26
5.4 GHG offset project programmes and standards 26
Product-specific and supply chain GHG programmes and
5.5 standards 33
Standards for validation and verification of GHG emissions and
5.6 reduction assertions 34

6- Standards and GHG practitioners 36

7- Experience with the use of ISO GHG standards 37

8- Meeting the demand for other GHG management standards 39

9- The road ahead for GHG standards 46

10 - Glossary 49

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1- Introduction
The environmental reality of climate change is fast becoming an economic
reality. As companies confront the demands of a low-carbon future,
they face new choices, new challenges, new competitors, and – ultimately –
new opportunities to reshape industries and markets around the globe.
– The McKinsey Quarterly.

The magnitude of the changes emissions, and certifying the GHG
required to mitigate and adapt to practitioners that help provide the
climate change is unprecedented. services and manage our companies
All countries will need to implement and public programmes.
changes that dramatically reduce
Vast new business opportunities will
greenhouse gas (GHG) emissions
emerge to create low-carbon econo-
from fossil fuel consumption, and
mies that are more energy efficient and
from land-use changes such as
profitable. It is time to prepare for this
deforestation. In developed countries
transition and take advantage of the
all levels of society are faced with the
new markets and industries that will
responsibility to make changes to
shape the global economy in the com-
lifestyle choices – from the products
ing decades.
they consume such as cars and food,
to where they spend their vacation, Standards will play an increasingly
to the buildings in which they live and important role in moving societies
work. Developing countries need to and economies to a more climate-
ensure the right to development while safe development path. Standards
at the same time minimizing the rise in can provide clear guidelines, help
GHG emissions. All nations will have structure processes and set quality
to build low-carbon infrastructures norms for the rapidly developing field
that ensure healthy economies, stable of GHG management. In doing so they
governments and a protected climate. help facilitate new green technology
GHG standards will play a vital role in markets and more energy-efficient
this transition. They will provide the and profitable business practices.
transparency and assurances needed ISO developed this publication to
for product labelling, purchasing of raise awareness and demonstrate the
carbon offsets, regulating business benefits of pro-active business and


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other stakeholder engagements in overview of the climate change con-
climate mitigation. ISO GHG stand- text and provides a map of available
ards have been given wide coverage GHG standards, as well as those
by international climate organizations, currently in development. It provides
such as the International Emissions information on how GHG standards,
Trading Association (IETA) and the such as ISO 14064, can provide the
United Nations Framework Convention tools for implementing climate mitiga-
on Climate Change (UNFCCC), as tion and adaptation strategies, and
potential foundational standards for looks at the future of GHG standards
harmonising other standards and pro- and how they can promote a faster
grammes. Additionally, in the next few up-take of new green technologies
years there is the growing prospect for and low-emission practices. It points
ISO GHG standards to be developed out opportunities to enhance current
into a management system standard GHG standards and standards devel-
(MSS) for measurement, reporting and opment, and proposes changes that
verification of the GHG emissions.
would address challenges and help
This publication provides information maximize the effectiveness of GHG
to potential users of GHG standards standards in moving us to a more
and programmes. It gives a brief sustainable future.

4 – GHG schemes addressing climate change – How ISO standards help

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2 - Climate change update
Climate change is a reality and will scientific community projected just a
remain the greatest challenge of the few years ago :
21st century. We are already seeing
Recent observations confirm that,
the profound impacts human-induced
given high rates of observed emis-
climate change has on the Earth’s
sions, the worst-case IPCC scenario
physical and biological systems. The
trajectories (or even worse) are being
scale of changes and the severity
of impacts on human societies will realised. For many key parameters,
depend in large part on our ability to the climate system is already moving
dramatically and quickly reduce GHG beyond the patterns of natural vari-
emissions and adapt to the unavoid- ability within which our society and
able changes. The latest report of the economy have developed and thrived.
Intergovernmental Panel on Climate These parameters include global
Change (IPCC) was released in 2007 mean surface temperature, sea-level
and states : Warming of the climate rise, ocean and ice sheet dynamics,
system is unequivocal, as is now evi- ocean acidification, and extreme cli-
dent from observations of increases in matic events. There is a significant risk
global average air and ocean tempera- that many of the trends will accelerate,
tures, widespread melting of snow leading to an increasing risk of abrupt
and ice and rising global average sea or irreversible climatic shifts 2).
level 1). Between 2000 and mid-2008, anthro-
Numerous new scientific findings have pogenic CO2 emissions have been
been published since the release of growing about four times faster than
the IPCC report. Many of them point during the previous decade. Until
to emissions and warming trends that late 2008, estimated emissions were
are growing at a rate faster than the tracking above the most intense fossil

1) IPCC, 2007 : Summary for Policymakers. In : Climate Change 2007 : The Physical Science Basis..., etc. www.ipcc.ch/pdf/
assessment-report/ar4/wg1/ar4-wg1-spm.pdf
2) Synthesis Report from Climate Change : Global Risks, Challenges & Decisions, Copenhagen, 10-12 March 2009, http://
climatecongress.ku.dk/pdf/synthesisreport


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Greenhouse Gases
Anthropogenic greenhouse gases (GHGs) Methane, for example, has a much shorter
are substances emitted by humans that lifetime (about 12 years) than CO 2 (up to
cause the atmosphere to warm up beyond thousands of years) but has a greater
its natural state, thus causing climate warming potential. It is 25 times stronger
change. The most common greenhouse over a 100 year time frame than CO 2.
gas is carbon dioxide (CO 2 ) which is pro- Atmospheric concentrations of CO 2 have
duced by burning organic material, such as increased by over 31 % since pre-indus-
fossil fuels and forests. trial levels. Methane has increased by
67 %.
The Kyoto Protocol covers the following
GHGs : carbon dioxide, methane, nitrous Figure 1 shows global GHG emis-
oxide, sulphur hexafluoride, hydrofluorocar- sions by sector based on emissions
bons and perfluorocarbons. These gases from 2000. More information on GHGs
have differing lifetimes and strengths and climate change can be found at
(warming potential). www.ipcc.ch

Figure 1 : Annual greenhouse gas emissions by sector

Waste disposal
and treatment Power stations
21.3 %
3.4 %
Land use
and biomass
Industrial processes
burning
16.8 %
10.0 %
Residential,
commercial and other
sources Transportation
fuels
10.3 % Fossil fuel
14.0 %
retrieval,
processing and Agricultural
distribution by products
12.5 %
11.3 %
62.0 %
19.2 % 26.0 %
20.6 %

5.9 %
29.5 % 29.6 % 2.3 %
12.9 %
1.1 %
1.5 %
Nitrous Oxide
9.1 %
(9 % of total)
8.4 % 18.1 %

Carbon dioxide
(72 % of total) 40.0 %
6.6 %
4.8 %
Methane
(18 % of total)
Source : Robert A. Rohde, http://en.wikipedia.org/wiki/File:Greenhouse_Gas_by_Sector.png


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fuel emission scenario established
by the IPCC 3). If we continue on this Figure 2 : Global CO2 emissions
from different sources
trend and do not act to reduce emis-
sions rapidly, we may be unable to 8 000
achieve the low stabilization scenar- Global Fossil Carbon Emissions
7 000
ios that would give us a reasonable Total
Petroleum
chance to adapt to climate change and 6 000
Coal
avoid catastrophic changes. Figure 2 Natural gas 5 000
shows CO2 emissions growth from dif- Cement production
4 000
ferent sources.
3 000
There is strong agreement among
2 000
most nations that the rise in global
temperatures should be kept at a 1 000

maximum of 2°C above pre-industrial
levels. But even a temperature rise of 1800 1850 1900 1950 2004
“ only ” 2°C will likely lead to significant
Million Metric Tons of Carbon / Year
impacts such as decreases in agricul-
tural yields, fresh water scarcity and Source : Mak Thorpe (2008)
http://en.wikipedia.org/wiki/File:Global_Carbon_Emission_
species extinction. The hope is that by_Type_to_Y2004.png
with a concerted effort, human socie-
ties would be able to adapt to these
inevitable changes. Beyond a 2°C
energy production can be achieved
warming, the ability of society and the
at low cost. More importantly, inac-
ecosystems to adapt rapidly declines.
tion harbours much larger and more
For example, the IPCC notes that as
dangerous costs than economic cost
global average temperature increase
models are usually able to portray.
exceeds about 3.5°C, “ model projec-
Climate stabilisation is technologically
tions suggest significant extinctions
and economically feasible. The finan-
(40-70 % of species assessed) around
cial crisis triggered in 2008 has had
the globe ” 4).
a considerable impact on the energy
We already have the capacity to reduce sector worldwide. The International
emissions quickly and economically. Energy Agency (IEA) estimated that
Many economic studies show that in 2009, CO2 emissions fell by 3 % –
reducing emissions through energy- steeper than at any time in the last 40
efficiency upgrades and renewable years 5). This would lead to emissions

3) The Global Carbon Project, www.globalcarbonproject.org
4) IPCC 2007 Summary for Policy Makers, www.ipcc.ch/pdf/assessment-report/ar4/syr/ar4_syr_spm.pdf
5) International Energy Agency : World Energy Outlook 2009


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in 2020 being 5 % lower – even in the climate crisis in a positive and con-
absence of additional policies – than structive way.
the IEA estimated just a year ago. The
Climate change does not exist in a
economic downturn has thereby cre-
vacuum. It is only one of a multitude
ated an opportunity to put the global
of global challenges that need to be
energy system on a trajectory to sta-
addressed to ensure the well being of
bilise GHG emissions at safer levels.
future generations. Moving towards a
The climate imperative is clear : global more sustainable global future requires
action is needed to swiftly and deci- that climate change is addressed with-
sively reduce GHG emissions and out exacerbating other global issues
develop strategies to adapt to changes such as poverty and inequity and the
that cannot be avoided. Stakeholders loss of biodiversity. The task at hand
from all sectors have to step up to the is clear : our economies have to move
challenge : governments, businesses, to a low-carbon future in which the cli-
organizations and citizens have to mate is protected and human societies
collaborate to address the emerging and natural resources remain intact.


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A short overview of global costs of reducing emissions are kept as
climate change policy low as possible. To further increase the
cost-effectiveness of emissions reduc-
In 1992, the 154 signatory nations to the tions, the Kyoto Protocol established so-
UNFCCC declared to aim “ to achieve sta- called Flexible Mechanisms : the Clean
bilization of GHG concentrations in the Development Mechanism (CDM) and Joint
atmosphere at a low enough level to pre- Implementation (JI) and emissions trading.
vent dangerous anthropogenic interfer- The Kyoto Protocol enabled a group of
ence with the climate system”. The treaty Annex I countries to join together and form
has since been ratified and signed by 192 a so-called “ bubble ” that is given an over-
nations. Yet the treaty’s aim was voluntary all emissions cap and is treated as a sin-
and non-binding and did not set compli- gle entity for compliance purposes. The 15
ance limits on GHG emissions. member states of the EU in 1997 formed
such a bubble and created the EU Emissions
Compliance reductions were not estab-
Trading Scheme (EU ETS). The EU ETS is an
lished until five years later in 1997, when
installation-based cap-and-trade system
the Kyoto Protocol was adopted. Most
for the now 27 EU member states which
industrialized nations agreed to legally
came into force in 2005. Under this cap-
binding GHG emissions reductions of 6 %
and-trade scheme, emissions are capped
to 8 % below 1990 levels between the
for installations and allowances (EUAs)
years 2008-2012. The Kyoto Protocol was
may be traded among industries with an
ratified by 184 nations and came into force
account in one of the registries.
in 2005. It established a cap-and-trade
system that imposes national caps on the Many countries have enacted GHG reduc-
GHG emissions of developed countries tion policies and some have successfully
that ratified the Protocol (Annex 1 Parties). reduced their total emissions. Despite
These countries must meet their targets the recent economic crisis, most nations
by reducing their own emissions, trad- still show growing emissions trends and
ing emissions allowances with countries it is highly unlikely that any country thus
that have a surplus of allowances, and/or far is on an emissions path that would, if
meeting their targets by purchasing car- achieved globally, ensure that global tem-
bon credits. This ensures that the overall peratures do not rise beyond 2° Celsius.


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3 - Addressing climate change –
Role of GHG standards

The need for GHG standards is a rec- Chapter 5 gives an overview of dif-
ognized priority for business and gov- ferent GHG standards and their uses,
ernment leaders. This publication is a followed by chapters describing the
timely addition to the discussions of need for more and innovative GHG
policy makers and other stakeholders standards to support technologies
on climate change and the impacts of and professionals that in turn rein-
trade, technologies, investment, gov- force the role GHG standards already
ernment regulations and programmes play in GHG markets. There is a sym-
such as cap-and-trade, offsets, incen- biosis between standards and the
tives, and taxes, as well as consumer strategies and policies that use them.
behaviour. Acknowledging the work of Standards are not only tools to help
ISO and other leading organizations implement strategies and policies –
working on GHG management and standards and the tools that incorpo-
standardization, the World Economic rate standards, such as software for
Forum Task Force Working Group quantifying the life cycle emissions
on Universal Standards and Metrics of new technologies, can help in the
recently recommended : design of new policies and business
strategies.
“ prioritization of a global standard
for the assessment and reporting of
product carbon footprints to enable Role of GHG standards
better transparency of emissions for government policies
associated with their production and and programmes
consumption.”
GHG standards are used to support
This publication reviews the GHG many types of mandatory and voluntary
standards currently in play, the emerg- government programmes, including :
ing demand and efforts for more GHG • Incorporation into legislation and
standards, and ways to improve GHG regulations such as regional GHG
standardization so that they play an emission cap-and-trade agree-
even greater role supporting an inte- ments, as well as international
grated solution to climate change. trade agreements


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• Incentives to support new indus- • Supply chain GHG management
tries and technologies, such as – since this is a serious business
production subsidies, tax and issue, standardized GHG quanti-
other business incentives fication and reporting for compa-
nies and their products are being
• Technology research and devel-
developed to help reduce GHG
opment (R&D) and other support
emissions throughout the value
funding.
chain.
For governments to create and effec-
Businesses also report to non-gov-
tively regulate GHG markets and
ernmental GHG registries such as The
achieve fungible commodities that
Climate Registry, using recognized
can achieve the benefits of emissions
GHG standards. From international
trading and core policy objectives
trade to avoiding “ greenwashing ” of
such as reducing national emissions,
product claims, GHG standards help
GHG standards help policy makers businesses take advantage of new
receive credible information, calcu- opportunities.
late emissions and set targets using
common tools. However, GHG stand-
ards do not set targets. They provide Role of GHG standards for
a common approach to assessment, the financial industry
measurement and reporting, among
GHG standards are being developed to
other uses.
serve the specific needs of the financial
community such as :
Role of GHG standards for • Carbon disclosure and valuation
business, technologies and • New financial products, and
products climate-related insurance covering
In addition to being essential to the physical property, or liability insur-
ance covering GHG practitioner
GHG markets for cap-and-trade as well
errors and omissions coverage, for
as offset credits, GHG standards are
example.
used to support a range of important
business functions including : Many GHG standards are used by
• Carbon labelling of products and businesses to provide a complete and
events for consumer and stake- accurate disclosure of GHG emis-
holder communications, to enable sions, and communicate market risks
effective purchasing decisions and and opportunities for their products
avoid “ greenwashing ” and services. GHG standards will
• Technology innovation to support help to link monetary value with GHG
decisions on product develop- emissions, asset portfolios, technolo-
ment and market assessment gies, products, risks and much more
taking into account potential GHG – thereby enabling more efficient allo-
revenues cation of capital.


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Role of GHG standards for
capacity building
Building capacity and certifying the
competence of GHG practitioners
would not be possible without GHG
standards for quantification, auditing,
reporting, labelling, communications,
and so on. GHG standards form an
essential part of :
• Training courses in industry
associations and guidelines, as
well as academic research and
training providers
• Professional certification and
organization services
• Tools of the trade, e.g. GHG
software for emissions reporting
and life cycle software models
for technology funding.


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4 - ISO’s contribution to environmental
and climate change standards

4.1- Development progress speedily, sufficient time is
of ISO standards required before the approval stage for
the discussion, negotiation and reso-
ISO develops new standards in lution of significant technical disagree-
response to sectors and stakehold- ments. ISO standards are developed
ers that express a clearly established on a consensus basis, non-aligned to
need for them. ISO standards are any regime i.e. regime neutral, repre-
developed by technical committees, sented geographically in developed
comprising experts from the indus- and developing countries, and have
trial, technical and business sectors technical rigour and speed to market.
as well as representatives of govern-
ment agencies, testing laboratories, For a document to be accepted as an
consumer associations, non-govern- ISO International Standard, it must be
mental organizations and academia. approved by at least two-thirds of the
ISO national members that partici-
To be accepted for development, a pated in its development and not be
proposed new standard must receive disapproved by more than a quarter
the majority support of the partici- of all ISO members who vote on it.
pating members of the ISO technical An International Standard is the result
committee which, among other cri- of an agreement between the mem-
teria, verifies the global relevance of ber bodies of ISO. It may be used as
the proposed item. This means that such, or may be implemented through
it indeed responds to an international incorporation in national standards of
need and will eventually be suitable different countries.
for implementation worldwide.
ISO standards are voluntary, and 4.2 ISO’s environmental
based on a solid consensus of inter-
national expert opinion. Consensus,
standards
which requires the resolution of sub- ISO standards are among the lead-
stantial objections, is an essential ing objective tools that assist policy-
procedural principle. Although it is makers in decisions related to public
necessary for the technical work to incentives, regulations, and use of


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standards to foster energy-efficiency The ISO 14000 family of standards for
and new green technologies. Out of environmental management is firmly
a total of over 18 500 ISO standards established as the global benchmark
and related documents, over 570 are for good practice in this area :
directly related to environmental sub-
jects, including environmental man- • ISO 14001:2004, Environmental
agement systems, climate change, management systems –
energy management, and many more Requirements with guidance for
use, provides the requirements
that can help in reducing environmen-
for environmental management
tal impacts.
systems (EMS) and contributes to
Offering business, government and an organization’s objectives to oper-
society a complete portfolio of prac- ate in an environmentally sustain-
tical tools for tackling environmental able manner. As one indicator of
challenges, they range from standards the use of ISO 14000, up to the
for sampling, testing and analytical end of December 2009, more than
223 149 ISO 14001 certificates of
methods, through environmental man-
conformity had been issued to pri-
agement and environmental aspects
vate and public sector organizations
of product design, to new work on
in 159 countries and economies.
ship recycling.
The ISO 14000 family of standards
also includes supporting tools for
environmental management and
designing environmentally friendly
products and services :
• ISO 14004:2004, Environmental
management systems – General
guidelines on principles, systems
and support techniques

• ISO 14040:2000, Environmental
management – Life cycle assess-
ment – Principles and framework
for life cycle analysis

• ISO Guide 64:2008, Guide for
addressing environmental issues in
product standards.

The ISO 14000 family furthermore
includes a number of standards to
ensure good practice in environmen-
tal claims and communications :


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• ISO 14020:2000, Environmental change monitoring tools. For exam-
labels and declarations ple, ISO develops standards on geo-
• ISO 14063:2006, Environmental graphic information and geomatics
communication. which help to measure the extent of
the effects of climate change, and
ISO has also developed sustainabil- is also collaborating with the Food
ity standards for other sections such and Agriculture Organization of the
as ISO 21930 :2007, Sustainability in United Nations (FAO) and the World
building construction – Environmental Meteorological Organization (WMO),
declaration of building products. under a United Nations/ISO partner-
ship to develop further standards for
gauging essential climate variables
4.3 ISO’s contribution under the UN’s Global Terrestrial
to addressing climate Observation System.
change
ISO International Standards can also
ISO has been a leader in developing make essential contributions to real-
climate change relevant standards izing the full potential of energy effi-
that help streamline procedures and ciency measures based on existing
unify definitions and requirements technology and good practice, as well
for the climate mitigation and related as to disseminating innovative tech-
actions of corporations, organizations nologies – particularly for renewable
and governments. and carbon-neutral energy sources.
Achieving international agreement on In the case of innovative technolo-
the quantification and verification of gies, standards can reduce the time
GHG emissions for purposes of emis- to market of products and services
sions trading is key to supporting the based on them, create global interest
development, networking and con- and develop a critical mass of sup-
sistency of emissions credit trading port to ensure the economic success
schemes. of such technologies.

ISO 14064, ISO 14065, ISO 14066, ISO has already developed standards
ISO 14067 and ISO 14069 provide an with an impact on climate change
internationally agreed framework for areas such as building environ-
for measuring GHG emissions, ver- ment design, energy efficiency of
ifying claims made about them, and buildings and sustainability in build-
accrediting the bodies which carry ing construction, intelligent transport
out such activities. All these ISO systems, solar energy, wind tur-
GHG standards are described in bines, nuclear energy and hydrogen
more detail in the following section. technologies.

ISO not only helps streamline GHG ISO’s proactive stance on energy and
accounting with its policy-neutral climate change matters has resulted
tools, but it also develops climate in the initiation of ISO work on energy


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management systems (ISO 50001) • ISO 14067 is a product standard
and the examination of new opportu- (currently under development)
nities in energy efficiency and renew- and will provide a framework for
able energy sources. measuring the carbon footprint of
products
4.4 ISO’s GHG management • ISO 14069 is a guidance docu-
standards ment (currently under develop-
ment) for the quantification and
The ISO series of GHG standards,
reporting of GHG emissions for
which continues to expand, addresses
organizations.
the need for a unified framework
for GHG quantification, monitoring, These ISO standards are designed to
reporting and verification, and pro- be policy-neutral which provides the
vides a set of auditable requirements flexibility that has made it possible
or specifications, and in some cases for ISO GHG standards to be applied
recommendations, to support various to many different GHG programmes
stakeholder groups such as organiza- around the world. ISO 14064, for
tions, proponents of GHG emission example, is consistent and compat-
reduction projects, and auditors. ible with the GHG Protocol, published
by the World Resources Institute
• ISO 14064 : Parts 1 and 2 are
(WRI) and the World Business
specifications for the quantifica-
Council for Sustainable Development
tion, monitoring and reporting
(WBCSD). Also, a leading offset
of GHG emissions and emission
standard for the voluntary market,
reductions (as well as removal
the Voluntary Carbon Standard, is
enhancements), respectively, and based on ISO 14064 Parts 2 and 3,
Part 3 is a specification for the and ISO 14065. The growing use of
validation or verification of GHG ISO GHG standards for both regu-
assertions lated and voluntary purposes is a
• ISO 14065 is a standard that testament to their versatility and their
specifies principles and require- contribution to linking GHG markets
ments for bodies that undertake around the world.
validation or verification of GHG
assertions for use in accreditation ISO 14064
or other forms of recognition
ISO 14064 is comprised of three
• ISO 14066 is a standard (currently parts, respectively detailing specifica-
under development) that speci- tions and guidance at the organiza-
fies the competence requirements tional and project levels, and for GHG
for GHG validation teams and quantification, monitoring, reporting,
verification teams with guidance validation and verification. Because
for evaluation the standard is programme-neutral, it


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►ISO 14064-1:2006
Greenhouse gases – Part 1 :
Specification with guidance at the
organization level for quantifica-
tion and reporting of greenhouse
gas emissions and removals
www.iso.org/iso/
catalogue_detail?csnumber=38381
ISO 14064-1 provides guidance on
the elements needed to implement an
All ISO GHG standards are policy
neutral. If an ISO GHG standard is auditable GHG inventory. It offers a
used under a specific GHG pro- framework for designing, developing,
gramme, requirements of that GHG managing and reporting organizational
programme are additional to the or company-level GHG inventories. It
requirements of ISO GHG standards. includes requirements for determin-
ing organizational boundaries, GHG
emission boundaries, quantifying an
is not prescriptive about elements that
organization’s GHG emissions and
apply to the policies of a particular
removals, and identifying specific
GHG programme (e.g. specific addi-
company actions or activities aimed
tionality criteria for offset projects).
These decisions are required to be at improving GHG management. It
made by the user of the standard (e.g. also includes requirements and guid-
the GHG programme administrator or ance on inventory quality manage-
regulator) when applying the stand- ment, reporting, internal auditing and
ard. ISO 14064 objectives are to : the organization’s responsibilities in
verification activities. ISO 14064 Parts
• Enhance environmental integrity
2 and 3 are described in more detail
by promoting consistency, trans-
parency and credibility in GHG below.
quantification, monitoring, report-
ing and verification
►ISO 14064-2:2006
• Enable organizations to identify
and manage GHG-related liabili- Greenhouse gases – Part 2 :
ties, assets and risks Specification with guidance at the
project level for quantification,
• Facilitate the trade of GHG allow-
monitoring and reporting of green-
ances or credits
house gas emission reductions or
• Support the design, development removal enhancements
and implementation of compara-
ble and consistent GHG schemes http://www.iso.org/iso/
or programmes. catalogue_detail?csnumber=38382


a

ISO 14064-2 specifies principles and quantifications. It provides require-
requirements for determining project ments and guidance for those
baseline scenarios and for monitor- conducting GHG validations and
ing, quantifying and reporting project verifications. It specifies the gen-
performance relative to the baseline eral requirements for selecting GHG
scenario and provides the basis for audit team members, establishing the
GHG projects to be validated and ver- level of assurance, objectives, criteria
ified. ISO 14064-2 is a comprehensive and scope, determining the audit-
framework of “ what to do”. Because ing approach, assessing GHG data,
the standard is a programme-neutral information, information systems and
process, it is not prescriptive about controls, evaluating GHG assertions,
elements that apply to the policies and preparing audit statements.
of a particular GHG programme (e.g.
specific additionality criteria, project ►ISO 14065:2007
eligibility dates or co-benefits). These Greenhouse gases – Requirements
decisions are required to be made by for greenhouse gas validation
the user of the standard (e.g. the GHG and verification bodies for use in
programme administrator or regu- accreditation or other forms of
lator) when applying the standard. recognition
ISO 14064-2 has been incorporated
into numerous programmes includ- http://www.iso.org/iso/
ing the Voluntary Carbon Standard catalogue_detail?csnumber=40685
and the Chicago Climate Exchange, ISO 14065 specifies principles and
as well as compliance programmes requirements for bodies that under-
such as those of the Government of take validation or verification of GHG
Alberta and the Government of British assertions. It requires that a validation
Columbia, both in Canada. and verification body establishes and
maintains a procedure to manage the
competence of its auditing personnel.
►ISO 14064-3:2006 GHG validation and verification bod-
Greenhouse gases – Part 3 : ies must ensure that auditing teams
Specification with guidance for have the necessary competence to
the validation and verification of effectively complete the validation
greenhouse gas assertions or verification process. Supporting
these principles are general require-
http://www.iso.org/iso/
ments based on the tasks that the
catalogue_detail?csnumber=38700
validation or verification teams must
ISO 14064-3 details principles and be able to perform, and the compe-
requirements for verifying GHG tence required to do so.
inventories, and validating or verify-
ing GHG projects. It can be applied
to entity-wide and offset project GHG


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►ISO/DIS 14066 ►ISO/WD 14069 GHG
Greenhouse gases – Competence
Quantification and reporting of
requirements for greenhouse gas
GHG emissions for organizations
validation teams and verification
(Carbon footprint of organization) –
teams
Guidance for the application of ISO
http://www.iso.org/iso/catalogue_ 14064-1
detail.htm?csnumber=43277
http://www.iso.org/iso/catalogue_
ISO 14066, currently under devel- detail.htm?csnumber=43280
opment, spells out the competence
ISO 14069 is a new guidance docu-
requirements for GHG validation
ment currently under development
teams and verification teams with
to support the application of the
guidance for evaluation. To achieve
ISO 14064-1 International Standard
consistency in the international mar-
for organizational GHG inventory
ketplace and maintain public confi-
quantification and reporting, in partic-
dence in GHG reporting and other
ular in relation to scope 3 emissions
communications, there is a need to
or other indirect emissions related to
define competence requirements
the organization for which the GHG
for GHG auditing teams. ISO 14066
inventory is established.
will be used in conjunction with
ISO 14065.

►ISO/CD 14067
Carbon footprint of products
http://www.iso.org/iso/catalogue_
detail.htm?csnumber=43278
ISO 14067 is a new International
Standard, currently under devel-
opment, for product carbon foot-
printing and communication,
including labelling. It is being devel-
oped by international technical
groups working concurrently on two
parts : Quantification (Part 1) and
Communication (Part 2). ISO 14067 is
due for completion in 2012.


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5 - Overview of GHG standards
and programmes

As climate change mitigation has 6. Validation and verification
gained prominence in the public (auditing) of GHG emissions
and private sectors, numerous GHG and reduction claims.
standards and programmes, includ-
ing protocols, methodologies and Table 1 gives an overview of some
guidelines, have been developed for major GHG standards and pro-
the management of GHG emissions 6). grammes described in this chapter.
This chapter introduces a number Programmes are here defined as
of important standards and pro- GHG schemes, including compliance
grammes currently available or under and voluntary programmes, under
development, including linkages to which GHG emissions or emissions
ISO standards (explained in the previ- reductions can be certified by third-
ous chapter). The various GHG stand- parties, and in some cases traded.
ards and programmes have been Programmes therefore usually have
categorized as follows : bodies that certify projects, verifiers,
1. National GHG emissions and specific protocols and/or pro-
grammes that are accredited under
2. Organization/ entity-wide GHG that programme. Under a compliance
emissions market, entities are required by law
3. Corporate disclosure on cli- to report and/or reduce their GHG
mate change emissions. Such compliance regimes
include, but are not limited to, cap-
4. GHG offset projects and-trade systems, such as the Kyoto
5. Product-specific/ supply-chain Protocol and the European Union
GHG emissions Emissions Trading System (EU ETS).

6) This publication does not address climate adaptation and the need for standards in that area. Adaptation to climate change
and the role of standards in that process is a large and important subject. Yet it would go beyond the scope of this publication
which focuses on GHG accounting and management.


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Table 1 : Overview of standards and programmes

Standards/programmes Geographic
Type Compliance Voluntary
and their scope scope

National GHG emissions

UNFCCC programme x international

Organization/entity-wide GHG emissions

EU ETS programme x European
ISO 14064-Part 1 standard x international
WBCSD/WRI GHG standard x international
Protocol for Corporate
Accounting
Chicago Climate programme x mostly US
Exchange

Corporate disclosure on climate change

Climate Disclosure standard x international
Standards Board
Carbon Disclosure guidelines x international
Project Questionnaire
PAS 2060 Carbon guidelines x UK, international
Neutrality

GHG offset projects

Clean Development programme x Non-Annex 1
Mechanism
Joint Implementation programme x Annex 1
Regional Greenhouse Gas programme x North-east US
Initiative
Protocol for Project
Accounting
Climate Action Reserve programme x mostly US
Voluntary Carbon programme x international
Standard
Gold Standard programme x international
Chicago Climate programme x mostly US
Exchange


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Standards/Programmes Type Compliance Voluntary Geographic
and their scope scope

Climate Community and co-benefit x international
Biodiversity Standards add-on
Social Carbon co-benefit x Non-Annex 1
add-on
American Carbon programme x Mostly US
Registry
Alberta Offsets System programme x Alberta,
Canada
Pacific Carbon Trust programme x British
Columbia,
Canada

Product-specific/ supply-chain GHG emissions

PAS 2050 standard x UK, international
ISO 14067 standard x international
Protocols for Products
and for Scope 3

Validation and verification (auditing) of GHG emissions and reduction claims

ISAE 3000 standard x international
ISAE 3410 standard x international
Validation and guidance x Non-Annex 1
Verification Manual CDM document
Validation and guidance x Non-Annex 1
Verification Manual IETA document

Voluntary standards and programmes to prepare for expected compliance
are used by companies and institu- action, e.g. the introduction of a cap-
tions on a purely voluntary basis. The and-trade system. Because demand is
motivation for reporting GHG emis- driven by purely voluntary action, the
sions and purchasing carbon offsets voluntary markets for carbon offsets
varies and includes corporate public are much smaller than the compli-
relations and code of ethics, a desire ance markets, such as the CDM. The
to go beyond what is mandated in distinction between programmes and
terms of emission reductions, and standards can be confusing, since


a

several of the discussed programmes system, that standard may state the
call themselves “ standards ”, such as requirements in a legally binding way
the Voluntary Carbon Standard or the (e.g. “ the project proponent “ shall ”
Gold Standard. use a third-party auditor ”) or as a rec-
ommendation or guideline (e.g. “ the
Standards in the context of this
project proponent “ should ” use a
publication include protocols, meth-
third party auditor ”).
odologies and guidance, and pro-
vide guidance and/or specifications Co-benefits refer to environmen-
on GHG quantification, monitoring, tal and social benefits that can be
reporting and assurance. “ International achieved in addition to carbon reduc-
Standards ” are those produced by tions. Standards that ensure such
ISO following specific principles and co-benefits are used in offset markets
procedures (see the ISO publication and are described in more detail in
on International standards and “ pri- the section on GHG offset projects.
vate standards ” 7)). Most standards
Guidance documents provide spe-
typically stand alone and do not have
cific process guidelines on how to
a body directly associated with them
apply a standard or a protocol. The
that accredits projects, protocols and/
use itself of such guidance documents
or verifiers. Standards themselves do
can be voluntary or mandatory. For
not typically have registration and
example, the CDM provides numer-
enforcement systems to track and
ous mandatory guidance “ methodo-
ensure legal ownership as is neces-
logical tools ” such as the “ Tool for
sary, for example, in the case of emis-
the assessment and demonstration of
sions reductions from offset projects.
additionality ”.
The choice of a standard is typically
voluntary, as long as it is not part of a Geographic scope refers to situ-
compliance programme. That means ations where activities are imple-
an organization can decide which mented under that programme or
standard to use for its GHG emissions standard. For example, CDM activi-
inventory or to implement an offset ties and approved methodologies for
project, if it is not under a mandatory offset projects are applied in Non-
scheme of a compliance programme. Annex 1 Countries unless adopted
Nevertheless, if a company chooses by the Voluntary Carbon Standard
a particular standard under which (VCS) programme for application in
to implement its GHG management other jurisdictions.

7) www.iso.org/iso/private_standards.pdf


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5.1 Programmes for They include :
nation-wide GHG emission • Good Practice Guidance and
reporting Uncertainty Management in
National Greenhouse Gas
Inventories (2000)
United Nations Framework
Convention on Climate Change • Good Practice Guidance for
Land Use, Land-Use Change and
(UNFCCC)
Forestry (2003)
http://www.ipcc-nggip.iges.or.jp/
public/2006gl • Definitions and Methodological
Options related to Inventory
Under the UNFCCC Annex 1 Countries Emissions from Direct Human-
have to annually report their national Induced “ Degradation ” of Forests
GHG emissions in a formalized report- and “ Devegetation ” of other
ing format. Non-Annex 1 countries do Vegetation Types (2003).
not have to submit annual GHG inven-
tories but instead have to submit their 5.2 Organization-/entity-wide
“ National Communications ” which usu- GHG emissions standards
ally contain information on national cir-
cumstances, vulnerability assessment, Entity-wide GHG emissions calcu-
lations are used to determine an
financial resources, technology transfer
organization’s carbon footprint 8). Such
and capacity building. The 1996 and
entity-wide GHG emissions calcula-
2006 IPCC Guidelines for National
tions have been widely used by busi-
Greenhouse Gas Inventories assist
nesses, institutions, and governmental
countries in compiling their national
as well as non-governmental organi-
GHG inventories. They supply default
zations. Entity-wide emissions calcu-
values of the various parameters and lations are usually divided into three
emission factors required for all sectors. sections :
In addition the Intergovernmental
Panel on Climate Change (IPCC) • Scope 1 calculations include
emissions from direct fuel use
Methodology Reports describe
such as gasoline for vehicles and
methodologies and practices for
oil and natural gas for heating.
national GHG inventories. These docu- These calculations are usually
ments provide additional guidance straightforward and require the
for national and corporate emissions use of generally well-established
accounting, and are used worldwide. emissions factors

8) Strictly speaking a “ carbon footprint ” only includes CO2 emissions whereas a “ GHG footprint ” includes emissions of other
greenhouse gases as well. For consistency, the term “ carbon footprint ” is used throughout this document.


a

• Scope 2 calculations include tank, in partnership with a coalition of
emissions from indirect sources, businesses, NGOs and governmen-
such as electricity, heat (e.g. tal and inter-governmental organiza-
from district heating) and steam. tions. It provides requirements and
These are called indirect emis- extensive guidance for businesses,
sions because GHG emissions organizations and institutions prepar-
from electricity, for example, ing GHG emissions inventories. The
occur at the power plant and not
GHG Protocol Corporate Standard
at the point of use. The emissions
has been designed to be policy-neu-
depend on the fuel mix. Electricity
tral and focuses only on the account-
produced from fossil fuel has
higher GHG emissions per kWh ing and reporting of emissions, and is
than renewable electricity from therefore not a programme, i.e. it does
wind or hydro not provide a standard for how the
verification process should be con-
• Scope 3 calculations include ducted or require that inventory data
indirect emissions not included in
be reported. The cooperation between
scope 2. These include emissions
the GHG Protocol Initiative and ISO
associated with the embodied
has enhanced the consistency of
energy in materials (e.g. paper,
office equipment, food). Scope principles and requirements between
3 emissions are the most dif- the GHG Protocol for Corporate
ficult to estimate and most GHG Accounting and ISO 14064 Part 1.
emissions inventories therefore
exclude, or only partially include, European Union Greenhouse
these emissions. Gas Emission Trading System
(EU ETS)
WBCSD/WRI corporate http://ec.europa.eu/environment/
accounting and reporting climat/emission/index_en.htm
standards The EU ETS is a European cap-and-
www.ghgprotocol.org/standards/ trade programme in which GHG
corporate-standard emissions from facilities are calcu-
lated according to GHG methodolo-
The GHG Protocol Corporate Standard
gies defined at the national level.
was developed jointly by the World
Business Council for Sustainable
ISO 14064 - Part 1
Development (WBCSD), a global
association of some 200 compa- Refer to Chapter 4.4 for a description.
nies committed to sustainable devel-
opment, and the World Resources ISO 14069
Institute (WRI), an environmental think Refer to Chapter 4.4 for a description.


a

5.3 Corporate disclosure Institute, and to reflect relevant prin-
standards ciples from established financial and
business reporting models.
Corporate disclosure standards
(CDSs) go further than company-wide The framework references ISO 14064
carbon footprint calculations. They and recommends its use for entity-wide
include entity-wide GHG calculations emissions calculations (ISO 14065) and
as well as risk assessments, and give for verification (ISO 14064-3).
a more complete overview on how a
company deals with the threats and PAS 2060 :2010
opportunities of climate change and
http://shop.bsigroup.com/en/Product
its GHG emissions. There are sev-
Detail/?pid=000000000030198309
eral organizations that are working
towards mainstreaming the reporting PAS 2060, a publicly available speci-
of such GHG inventories. fication (PAS) for the demonstration
of carbon neutrality, provides guid-
Climate Disclosure Standards ance to quantify, reduce and offset
Board Climate Change GHG emissions from an organization,
Reporting Framework activities, products, services, pro-
www.cdsb-global.org jects, events, etc.

The Climate Disclosure Standards
Board (CDSB), formed in 2007, is 5.4 GHG offset project
an international organization com- programmes and
mitted to the integration of cli- standards
mate change-related information
into annual reports, alongside their GHG offsets are gaining prominence
audited financial results. In 2009, the as a tool to compensate for emis-
CDSB published a draft of its Climate sions in the compliance and voluntary
markets. By paying someone else to
Change Reporting Framework.
reduce, remove or avoid the release
The first edition of the framework is
of GHGs elsewhere, the purchaser of
designed to be used for disclosure
GHG offsets can aim to compensate
of climate change-related informa-
for, or in principle “ offset ”, their own
tion in, or linked to, mainstream finan-
emissions. This is possible because
cial reports. The framework is being
climate change is a non-localized
developed to build on, and support
problem ; CO2 emissions mix through-
the work of, its Board members, the
out the atmosphere, so reducing
Carbon Disclosure Project, Ceres, the
them anywhere reduces overall GHG
Climate Group, The Climate Registry, concentration.
the International Emissions Trading
Association, the World Economic Offset project GHG calculations are
Forum and the World Resources used to determine the amount of


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Carbon neutrality reduced/destroyed, avoided or seques-
tered GHGs of offset projects.
In recent years, some large compa-
nies and organizations have made Offset projects then sell the gener-
headlines by announcing that they are ated GHG offsets or credits to entities
“ going carbon neutral ” or offering in the compliance or voluntary mar-
carbon neutral services or products. ket. The buyer can then in turn claim
In 2006, “ carbon neutrality ” was the the emissions reductions that have
New Oxford American Dictionary’s been achieved by the offset project.
Word Of The Year. Being carbon neu- Offset programmes usually develop
tral refers to achieving net zero carbon
specific protocols (also called “ meth-
emissions. This can be achieved by
odologies ”) for each project type (e.g.
reducing consumption, increasing effi-
methane capture and destruction or
ciency, purchasing zero-carbon fuels
and electricity, and by buying carbon utilization from landfills). These proto-
offsets. The concept of carbon neutral- cols spell out in detail the parameters
ity has been loosely defined and has that have to be used in order to calcu-
met with equal measures of enthusi- late the emissions reductions from a
asm and scepticism. The key questions specific project. Project-level standards
that frame the debate are : and programmes have been developed
for the compliance as well as the volun-
1. Which emissions should an organi-
zation avoid or offset (see scope 1, tary markets.
2, 3 discussion above) in order to Offset programmes must have three
claim carbon neutrality ? core components 9) whereas offset
2. How should carbon neutrality be standards usually only define or give
achieved ? For example, is it legiti- guidelines for the first two :
mate for a company to claim car- 1. Accounting and quantification
bon neutrality by purchasing green procedures aim to ensure that
electricity certificates and carbon offsets are “ real, additional, and
offsets ? permanent ” and provide the meth-
ods for quantifying the number
These issues have not been resolved of offsets a project can generate
and the debate over the legitimacy of (project specific “ protocols ” or
the value of a carbon neutral claim “ methodologies ”)
continues.
2. Monitoring, verification and certi-
fication procedures aim to ensure
that offset projects perform as

9) Adapted from : Broekhoff, D. (2007). Voluntary Carbon Offsets : Getting What You Pay For. Testimony before the House Select
Committee on Energy Independence and Global Warming, July 18, 2007. http://pdf.wri.org/20070718_broekhoff_testimony.pdf


a

reported. Verification and certifica-
tion rules are used to quantify the
Validation is a process where an
actual carbon savings that can
auditor assesses a project’s GHG
enter the market once the project
project plan against defined vali-
is up and running
dation criteria. Validation is usually
done before project implementation, 3. Registration and enforcement
and deals with the assessment of systems aim to ensure owner-
potential future outcomes. ship of the emission reduc-
tions, define who bears the risk
Verification is a process where an
in case of project failure, and
auditor assesses an organization’s
protect against double counting
or project’s GHG assertions. For
of offsets. Registries are vital in
offset projects, verification ensures
creating a credible, fungible offset
that the number of offsets received
commodity.
is equal to the number of emissions
reductions achieved. This process is
done after project implementation 5.4.1 Compliance project
and is usually repeated. programmes
Ex-ante versus ex-post credits.
Ex-ante refers to offsets that Clean Development
are credited and sold before the Mechanism (CDM)
actual emissions reductions have
http://cdm.unfccc.int
occurred. The exact quantities of the
reductions are therefore uncertain. The CDM is a project-based GHG
Ex-ante credits usually come from offset mechanism under the Kyoto
sequestration (forestry) projects Protocol of the UNFCCC. It aims to
that can take a long time to reach assist Annex 1 Parties (industrial-
their full sequestration potential. As ized countries with binding emission
opposed to ex-ante offsets, ex-post reduction targets) to cut global GHG
reductions have already occurred emissions in a more cost-effective
when the offsets are sold and their manner by allowing them to invest in
quantities are certain. Most stand-
offset projects in non-Annex 1 par-
ards require the verification of emis-
ties (developing countries without
sions reductions before they can be
binding targets). Certified Emissions
registered and sold. Yet there are
Reductions (CERs) are verified and
a few voluntary offset programmes
that market ex-ante offsets, exam- certified by authorized third parties
ples include Plan Vivo and Carbon (Designated Operational Entities).
Fix. The CDM Executive Board gives final
approval to new projects and project
methodologies (protocols). The CDM
has very clear and detailed rules and
protocols, and high transaction costs,
so that usually only large projects are


a

registered. To date it is the largest by governors of seven US states in the
offset mechanism with over 2526 pro- Northeast and Mid-Atlantic regions
jects registered and 453 Million CERs and has since expanded to include 10
issued as of November 201010). states. The programme applies to fos-
sil fuel-fired electric generating units
Joint Implementation (JI) of 25 megawatts and larger. RGGI
went into effect on January 1, 2009,
http://ji.unfccc.int/index.html
as the first compliance cap-and-trade
JI, like the CDM, is a project-based programme to regulate GHGs in the
mechanism under the Kyoto Protocol. US. Its objective is to reduce CO2
It is limited to transactions between
industrialized countries and coun-
tries with economies in transition that
have commitments to limit or reduce
their GHG emissions under the Kyoto
Protocol (Annex 1 Countries). The goal
of the programme is to increase mar-
ket efficiency by allowing industrialized
countries to meet a part of their obli-
gation by investing in GHG abatement
projects in another industrialized coun-
try or economy in transition if the cost
of abatement is lower in the other coun-
try. JI is much smaller than CDM. As of
November 2010, there were 353 pro-
jects registered and 20.7 million cred-
its issued (United Nations Environment
Programme Risoe Centre).

The Regional Greenhouse Gas
Initiative (RGGI)
http://www.rggi.org
The RGGI is a multi-state US compli-
ance cap-and-trade programme to
reduce CO2 emissions from electricity
generation. It was established in 2005

10) Up-to-date figures on the CDM and JI are available on the UNEP Risoe Centre website : http://cdmpipeline.org/


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