US State Registries and Programs Background, Overview, and Perspective Presented by:

1. WRAP, April 5 2006 Salt Lake City US State Registries and Programs Background, Overview, and Perspective Presented by: Pankaj Bhatia, World Resources Institute

2. Part I – Background and Context Emissions measurement and reporting GHG emissions – unique aspects GHG management - key business drivers Types, relationship, and examples of different climate initiatives Brief overview on the GHG Protocol Initiative Part II – US Registries/Programs Overview US state and national registries/program Key common features, differences, and issues in US registries Part III – Registry Collaboration and Linked GHG Programs Emerging Need for a Multi-state Registry Collaboration Relationship between a Registry, Program, and Applications Summary of the Presentation Topics

3. Emissions Measurement and Emissions Management What you measure, you can manage What you measure WELL, you can manage WELL Measurement Management

4. Not a Localized Impact Tracking global emissions is meaningful No National Regulation to Facilitate Emissions Management and Reductions Applying comprehensive measurement approaches (e.g. direct and indirect; facility and corporate) focused on multiple management objectives (including voluntary reporting, mandatory reporting, cap and trade, reduction programs etc) becomes highly relevant GHG Emissions Measurement and Management:Unique Context

5. Realize Co-benefits of Existing Programs Improve Investors Relationships Capture New GHG Market Opportunities Manage and Reduce GHG Risks Prepare for Future Regulations Develop New Products/Technologies Key Business Drivers for GHG Management

6. GHG Standards: Set of commonly accepted concepts, terminologies, and framework to establish a true and fair account of GHG emissions GHG Registries: A database to receive and store a credible and comprehensive set of GHG data GHG data collected at various levels including unit/source, facility, corporate Based on the international standards such as the GHG Protocol GHG Programs: An application using the GHG information provided by a registry Examples: Public reporting; Cap and trade; Voluntary GHG reduction targets; Voluntary emissions trading scheme Emissions Measurement and Management: Types of Climate Initiatives

7. Relationship between a GHG Standard, Registry, and Program GHG Standards GHG Registry Measurement GHG Registry GHG Programs Management

8. An International GHG Standard GHG Protocol Initiative • Convened in 1998 by WBCSD & WRI • Mission: to develop international GHG measurement & reporting standards for business through an inclusive & transparent multi-stakeholder process • Published two modules: corporate standard & project protocol • Provides 16 calculation tools on the website (www.ghgprotocol.org)

9. Voluntary GHG Reduction Programs U.S. EPA Climate Leaders Program WWF Climate Savers Program Respect Europe BLICC Program USAID GHG Pollution Prevention Program Climate Neutral Network GHG Registries California Climate Action Registry Eastern Climate Registry WEF Global Registry Reporting Programs Global Reporting Initiative CERES Sustainable Governance Initiative Climate Initiatives (based on or informed by GHG Protocol) Industry GHG Protocols • International Industry Associations: IAI, IISI, IPIECA, IFFPA, WBCSD Sustainable Cement Initiative • NZ BCSD • European, Japanese, Canadian, and Australian Cement Industry Associations • French REGES Protocol Trading Programs • UK and EU Emissions Trading Scheme • Chicago Climate Exchange Other • International Standards Organization • EBRD

10. California Climate Action Registry: Approximately 71 members Follows WRI/WBCSD GHG Protocol Eastern Climate Registry: 10 Northeast and Mid-Atlantic states participating - CT, DE, ME, MA, NH, NJ, NY, PA, RI, VT Scheduled to become operational by Fall 2006 Follows WRI/WBCSD GHG Protocol Midwest States (LADCO): Six states participating in process - WI, OH, MI, IL, IN, MN Goal to develop registry by Fall 2006 Plans to follow WRI/WBCSD GHG Protocol Existing & Emerging U.S. State GHG Registries

11. US EPA Climate Leaders Program Not a GHG Registry Designed as a Voluntary Reduction Program Completely Based on the GHG Protocol Standards Chicago Climate Exchange (CCX) Designed as a GHG Reduction and Trading program Largely Based on the GHG Protocol Standards DOE’s 1605(b) Voluntary GHG Registry Meant to serve as a GHG Registry Final guidelines slated for release in March 2006 Criticized by industry and environmental groups as too flexible Not Based on the GHG Protocol Standards Other U.S. GHG Registries/Programs

12. Provide a platform on measurement and reporting (i.e. serve at least one key function of a Registry) Support a variety of program applications including voluntary public reporting, voluntary corporate reduction targets, and cap and trade program Use the GHG Protocol Standards Existing/Emerging US State Registries/Programs: Some Observations

13. Different programs and requirements leading to: Increased reporting burden on businesses De-standardization and uncertainty Reinventing the wheel leading to: Waste of resources Delay in the launch of new programs Multiple US State or Regional RegistriesKey Issues

14. Primary Goal of the Multi-state Registry Collaboration Receiving and storing a credible and comprehensive set of GHG information prepared based on the international standards such as the GHG Protocol Primary Goal of GHG programs Developing and implementing city, state, regional, or national applications using the information provided by such a registry A Multi-state GHG Registry Collaboration withLinked GHG Programs

15. Registry, GHG Program, and Potential Applications – Long-term Vision Voluntary Entity Reductions City Programs Offset Projects Voluntary Reporting National Programs Multi-state GHG Registry Regional Programs State Programs Mandatory Cap & Trade Voluntary Cap & Trade

16. Long-term Relevance and Evolution in the Design of Registries - Summary • Multiple Objectives • Support a wide range of applications including voluntary programs, efficiency standards, RPS etc. • Integrated Emissions Quantification • GHGs, Energy Use, Other Criteria Pollutants (Sox, NOx, etc.) • Broad Emissions Assessment • Direct, Energy use indirect, and Other indirects • Multi-level Entity Reporting • Allow tracking at unit/source, facility, and company levels • Linkages with GHG Programs • Facilitate data transfer and applications

17. Contact Information: Pankaj Bhatia Manager, GHG Protocol Initiative (www.ghgprotocol.org) World Resources Institute, Washington DC, USA pankaj@wri.org 1-202-729-7629 Questions?