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Expert Group Meeting

Expert Group Meeting ‘Using Energy Management Standards to stimulate persistent application of Energy Efficiency in Industry’. Alexandre V. MELLO Environmental Department – Climate Change Brazilian Confederation of Industries - CNI 22 March 2007 UNIDO – Vienna/Austria. Summary.

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Expert Group Meeting

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  1. Expert Group Meeting ‘Using Energy Management Standards to stimulate persistent application of Energy Efficiency in Industry’ Alexandre V. MELLOEnvironmental Department – Climate ChangeBrazilian Confederation of Industries - CNI22 March 2007 UNIDO – Vienna/Austria

  2. Summary 1 - Overview of ISO structure and processes 2 - ISO 14064 Standards for greenhouse gas accounting and verification

  3. ISO – International Organisation for Standardization Network of the national standards institutes of 158 countries, on the basis of one member per country, with a Central Secretariat in Geneva, Switzerland 1 - Overview of ISO structure and processes

  4. The world's largest developer of standards; Principal activity is the development of technical standards (international consensus) – more than 35,000 IS; Large economic (influence in the international trade) and social repercussions; Useful to: Industrial and business organizations; governments and other regulatory bodies; suppliers and customers of products and services; people in general. ISO

  5. Technical Committees: 193 ISO TC 207 – Environmental Management ISO TC 176 – Quality Management Working Groups: 2,244 Ad hoc study groups: 64 ISO 26000 – Corporate Social Responsibility Source: www.iso.org (18/03/07)

  6. ISO Strategic Plan(2005-2010) Standards for a sustainable world

  7. ISO documents Standards Process (Phases)

  8. ISO documents Beyond IS, ISO produces other kind of documents: ISO Guides; ISO technical specifications; ISO technical reports (Informative documents to support IS)

  9. ISO documents ISO: studying ways to reduce the time for IS approval (usually 3 years) – using electronic resources (documents and vote) All ISO documents are revised, at least, each 5 years

  10. SC1 EMS England SC2 Auditing Netherlands TC 207 Canada SC3 Labeling Australia SC4 Performance USA WG1Product Standard Canada SC5 LCA Germany WG2Forestry Standard New Zealand SC6 Vocabulary Norway WG3 DFE Korea WG5 CC Malaysia WG6 CC South Africa WG4 EC USA

  11. SC 1 Environmental Management Systems (EMS): ISO 14001 and 14004 SC 2 Environmental Auditing & Related Investigations (EA&RI): ISO 14015 and ISO 19011; SC 3 Environmental Labeling (EL): ISO 14020 series; SC 4 Environmental Performance Evaluation (EPE): ISO 14031,.. SC 5 Life Cycle Assessment (LCA): ISO 14040 series; SC 6 Terms and Definitions (T&D): ISO 14050 series; WG 1 Environmental Aspects of Product Standards - DISBANDED WG 2 Forestry - DISBANDED WG 3 Design for the Environment (DFE) - DISBANDED WG 4 Environmental Communications (EC): ISO 14063; WG 5 Climate Change: ISO 14064; WG 6 Climate Change – Accreditation bodies: ISO 14065 WG 7 Energy Management Standards ??? TC 207 ISO 14000 Series – Environmental Management

  12. ISO 14064 New International Standards for Greenhouse Gas Management Published: March 2006 2 - ISO 14064 Standards for greenhouse gas accounting and verification

  13. Topics Why an ISO standard? Source Material Key issues The standards

  14. Why an ISO standard? Climate change events and Global warming Carbon market pressure Different CO2 schemes and voluntary GHG standards Discussion with relevant ISO committees

  15. Existing ISO work

  16. Chronology

  17. Source materials UK ETS UNEP GHG Indicator Report WBCSD/WRI GHG Protocol Canadian CC Voluntary Challenge & Register Standards Australia – Carbon Accounting Standard Sundry US state CC protocols

  18. Technical rigour Speed to market Extensive participation Policy/regime neutral Compatibility/consistency: WBCSD/WRI GHG Protocol; Kyoto Mechanisms Guiding Principles

  19. ISO TC 207 / WG5 Deliverables ISO 14064 - Greenhouse gases(1 Standard in 3 Parts) Part 2: Specification with guidance at the project level for the quantification, monitoring and reporting of greenhouse gás emission reductions and removal enhancements Part 1: Specification with guidance at the organization level for the quantification and reporting of greenhouse gás emissions and removals Part 3: Specification with guidance for the validation and verification of greenhouse gas assertions

  20. GHG Assertion GHG Assertion Verification Validation and/ or Verification The Road Map for ISO 14064 Series Part 1 of ISO 14064 Design and Develop Organizational GHG Inventories Part 2 of ISO 14064 Design and Implement GHG Projects GHG Inventory Documentation and Reports GHG Project Documentation and Reports Requirements of the Applicable GHG Programme of intended user Level of assurance consistent with needs of intended user Part 3 of ISO 14064 Verification Process Validation and Verification Process For example ISO 14065 Requirements for Validation or Verification Bodies programme specific programme specific

  21. ISO 14064 – Greenhouse Gases (Part 1) Specification with guidance at the organization level for quantification and reporting of greenhouse gas emissions and removals

  22. 1 Scope 2 Definitions 3 Principles GHG inventory design and development 4.1 Organizational boundaries 4.2 Operational boundaries 4.3 Quantification of GHG emissions and removals GHG Inventory components 5.1 GHG emissions and removals 5.2 Organizational activities to reduce GHG emissions or increase GHG removals 5.3 Base year GHG inventory ISO 14064 Part 1: Content • GHG inventory quality management 6.1 GHG information management and monitoring 6.2 Document retention and record keeping • GHG reporting 7.1 GHG report planning 7.2 GHG report content 7.3 GHG report format 7.4 GHG report dissemination 8 Verification (1st party)

  23. ISO 14064 – Greenhouse Gases (Part 1) Direct GHG emissions and removals; energy indirect GHG emissions; indirect GHG emissions Quantification methodology Uncertainly – parameter associated with the result of quantification which characterizes the dispersion of the values that could be reasonably attributed to the quantified amount Requirement for quality management of data compilation Reporting Verification

  24. ISO 14064 – Greenhouse Gases (Part 2) Specification with guidance at the project level for quantification, monitoring and reporting of greenhouse gas emission reductions or removal enhancements

  25. 1 Scope 2 Definitions 3 Principles Introduction to GHG projects Requirements for GHG projects Annex A Annex B Bibliography ISO 14064 Part 2: Contents

  26. Ensuring completeness in quantification of all relevant emissions reductions and removal enhancements; Tracking the impacts of project-based activities and induced emissions (or leakage); Identifying the environmental additionality of emissions reduction or removal enhancement projects; and Promoting transparency and considering public access to relevant project information. ISO 14064 Part 2: Key Issues

  27. The standard should provide guidance on good practices for: project developers regardless of which emissions reduction regime they operate within; validators of emissions reduction or removal enhancement projects; administrators and regime developers; and investors and financiers seeking to evaluate project design documents. ISO 14064 Part 2: Future Application

  28. ISO 14064 – Greenhouse Gases (Part 3) Specification with guidance for the validation and verification of greenhouse gas assertions

  29. 1 Scope 2 Definitions 3 Principles Validation and Verification Requirements 4.1 General 4.2 Selection of the validator or verifier 4.3 Validation or verification objectives, scope, criteria and level of assurance 4.4 Validation or verification approach 4.5 Assessment of GHG information system and information system controls 4.6 Assessment of GHG data and information 4.7 Assessment against validation or verification criteria 4.8 Evaluation of the GHG assertion 4.9 Validation and verification statement 4.10 Validation or verification records ISO 14064 Part 3: Contents

  30. ISO 14065 – Greenhouse Gases Specifications for greenhouse gas validation and verification bodies for use in accreditation and other forms of recognition Publish: June 2007

  31. ISO 14065: Application Accreditation Body • Accreditors • Administrators • Peers evaluators ISO 14065 Verification • Validators/Verifiers. • Verification Bodies. Body ISO 14064 Part 3 • Organizations. • Project Proponents. ISO 14064 Part 1 or 2 GHG Inventory or GHG Project

  32. ISO 14064 - Benefits: Support the environmental integrity of GHG assertions; Promote and harmonize best practice; Assist organizations to manage GHG – related risks; Promote investor confidence and facilitate trade; Flexible, regime-neutral tools for use in voluntary or regulatory GHG schemes.

  33. Internal: Providing technical guidance Ensuring consistency of a GHG management scheme External: Enhancing credibility of a GHG management approach (e.g. in communications with stakeholders) Enhancing compatibility with external requirements Other benefits of using ISO 14064

  34. Organizations: Companies with significant direct and indirect climate impacts For large transnational corporations for GHG management, including internal emission trading; For responsible management of their environmental impacts and preparing for the “greening of the market”; For identification of GHG issues in the supply chain; In SMEs: quick scan of potential emissions and reductions and estimation of CDM or JI potential Service companies (e.g. verifiers of inventories, brokers of GHG projects) Non-business organizations, such as municipalities or international financial institutions, (e.g. World Bank) Potential Use of ISO 14064

  35. National and International Policies: Any policies that require quantification and reporting of GHG emissions; Bottom-up approach to compiling UNFCCC national inventories (might be especially relevant for some transition countries); Implementation of emission trading schemes Development of National CDM strategies and quick-scan for CDM eligibility of projects Development of “green investment funds” Voluntary initiatives for GHG reporting or GHG management (e.g. Global Reporting Initiative) Potential Use of ISO 14064

  36. Climate change programmes (voluntary, mandatory) have or are being developed in many jurisdictions – there is a need for consistency in GHG quantification, verification and accreditation approaches to reduce duplication, minimize costs and provide for comparability. ISO 14064/5 standards: - Are GHG policy neutral; - Can be applied across organization and project types, sizes and sectors; - Satisfy an important market need; - Involve a wide range of stakeholders; - Act as a common “building block” to initiatives or GHG programmes; - Are auditable (i.e., validation / verification). ISO 14064/5 is not a GHG programme or scheme, but specific GHG quantification, verification and accreditation tools for use by organizations, project proponents or GHG programmes. Summary

  37. QUESTIONS ? MANY THANKS ! Alexandre V. MELLO amello@cni.org.br + 55 61 3317.9482

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