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Why ghg accounting is essential
1. Greenhouse gases (GHG)
Six internationally
recognized &
accepted Green
House Gases (GHG)
under Kyoto Protocol
would have to be
included for GHG
accounting &
reporting
As per GHG Protocol
standard, Nitrogen
Trifluoride, NF3, is the
seventh Green house
gas.
2. How Green house gases are affecting
• Carbon dioxide (CO2) is an important greenhouse gas which entraps heat on the
earth.
• CO2 is released through various human & Industrial activities such as power
generation, deforestation and burning fossil fuels etc, as well as natural processes
such as respiration.
• CO2 level in earth’s atmosphere has increased alarmingly. As per NASA, as on
August 2020, CO2 level is 414 ppm.
• This value of CO2 has increased approx. 47 percent increase since the beginning of
the Industrial Age (1760 to 1820).
• Concentration of CO2 at the beginning of Industrial age was near 280 ppm
3. Annual green house gas emission by sector
Source: Energy
system design-
058:048
4. Global GHG emission by sector
Global GHG emission by sector
• GlobalGHG emission (MtCO2) by sectors are as below :
• Energy 72 %
• Agriculture 11%
• Industrial process 6%
• Land use change & forestry 6%
• Waste 3%
• Bunker fuel 2.2%
Global GHG emission by sub-sector
• CO2 Emission (MtCO2) from energy sectors are as
follows :
• Electricity & heat 31%
• Transportation 15%
• Manufacturing& construction12.4%
• Other fuel combustion 8.4%
5. Global emission in energy sector
CO2 Emission (MtCO2) from energy sectors are as follows :
• Electricity & heat 31%
• Transportation 15%
• Manufacturing & construction 12.4%
• Other fuel combustion 8.4%
6. Rise in global temperature & sustainability
• the combined land and ocean temperature has increased at an average
rate of 0.07°C (0.13°F) per decade since 1880
• 2019 was among one of the top three warmest temperature on record.
Rise in Global
temperature
• the average rate of increase since 1981 (0.18°C / 0.32°F) is more than
twice as great.
• By 2020, models project that global surface temperature will be more
than 0.5°C (0.9°F) warmer than the 1986-2005 average
Rise in Global
Temperature
• Extreme weather/Glacier retreat/ Sea level rise/Negative effect on
human health
• Sustainability threatened
Effect of Global
temperature rise
7. GHG accounting scope
1
• A new area to explore
• Public recognition, disclosure
2
• Bench marking, Peer comparison
• Inter-organization review
3
• External drivers
• Internal markets
4
• HGH – Integral part of business strategy
Advantages of GHG accounting & reporting
Paradigm shift in approach for GHG
management
8. Steps for GHG accounting
1. Determine the organizational boundary
a. It accounts complex business structure appropriately
b. Measure emissions consistently throughout
2. For separate business operation Consolidation approach to be
followed
a. Equity share approach
b. Control approach
i. Operational control
ii. Financial control
3. Identify emission sources and classify them ”Direct” and “Indirect”.
4. Categorize the SCOPE of Emission.
a. Direct Emission- SCOPE-1
b. Indirect Emission – SCOPE-2 & 3
9. SCOPE-1,2 &3 GHG Emissions
Scope of Emission
1. Scope-1 Direct GHG Emission
2. Scope-2 Indirect GHG Emission
3. Scope-3 Other indirect GHG Emission
Explanation
1. Emissions from sources owned or controlled by the company
as follows :
1a. Stationary/ mobile combustion
1b. Generation of electricity/ heat or Steam
1c. Process emissions
2. Sciope-2-Purchased Electricity, Heat or Steam.
3. Scope-3- All other Indirect emissions
3a. A consequence of the activities of the company, but occur
from sources not owned or controlled by the company
10. Methods of emission calculation
Activity data
Emission
Factor
Global
warming
potential
(GWP)
Carbon di-
oxide
equivalent
(CO2 e) of
emission
e.g liters of
fuel
consumed
e.g Kg of CO2
/liter of fuel)
Radiating
forcing impact
of one unit of
GHG-CO2-e
EmissionsTCO2-e
11. Methods of emission calculation
List of emission source
List all the probable emission sources &
Categorize the sources into Scpe-1,2 & 3
Data Collection
Collect all the data like Liters of fuel, KWh of
electricity consumed, Hours of time operated etc
Data selection
Select the data as “Primary data”OR “Secondary
data”
12. Methods of emission calculation
Data type - Primary
Primary data: Data from specific activities within a company’s
value chain (i.e asking suppliers/customersfor their emissions
data)
Data type- Secondary
Data that is not from specific activities in a company’s value
chain (industry average)
Data selection
Many companies use a combination of Primary & secondary
data.
13. Methods of emission calculation– Data Quality Indicators
Data
Quality
indicators
Technological
representative
ness
Temporal
representati
veness
Geographical
representative
ness
Complete
ness
Reliability
14. Methods of emission calculation– Data sources
Scope-1
• Purchase receipts
• Meter reading
• Fuel logbook etc
Scope-2
• On-line meter reading
• Logbook
• Electricity bill etc
Scope-3
• Material receipt
• Product dispatch
• Suppliers etc
15. Methods of emission calculation– Data collection
• Data collection should be well established activity, as GHG accounting
study will be a continuous activity.
• Coordination for data collection should be a seamless activity.
• Data should be correct, complete in all respect, should be from reliable
calibrated source.
• Data should be representative across the sample family.
17. CONCLUSION
GHG ACCOUNTING IS PRESENTLY VOLUNTARY,
HOWEVER LOOKING TO THE GRAVE SITUATION, ALL
CONTRIES CAN MAKE THIS MANDETORY.
WHY NOT TO TAKE THE ADVANTAGE OF “GREEN
BUSINESS” & “SUSTAINAIBILY”