Industry Partnerships - From Generic Standards to Sector Specific Tools The Aluminium Sector Story

1. Industry Partnerships - From Generic Standards to Sector Specific ToolsThe Aluminium Sector Story Jerry Marks International Aluminium Institute marks@world-aluminium.org WBCSD/WRI Side Event ; 12 June, 2003—Bonn, Germany

2. The Accomplishment A collaborative effort with contributions from World Business Council for Sustainable Development World Resources Institute International Aluminium Institute US EPA Climate Protection Division Developed a global consensus standard for inventory of GHG emissions containing a standard protocol for measurement of PFC emissions from the primary aluminium industry. WBCSD/WRI Side Event ; 12 June, 2003—Bonn, Germany

3. International Aluminium Institutewww.world-aluminium.org • Twenty-three member companies around the world • Administrative headquarters in London, UK • Represents 75% of world primary aluminium production • Cooperate with 24 local and national aluminium associations • Facilitates exchange of views among company executives on matters of common interest • Projects carried out through working committees composed of professional staff of member companies WBCSD/WRI Side Event ; 12 June, 2003—Bonn, Germany

4. Location of Primary Aluminium Production Facilities WBCSD/WRI Side Event ; 12 June, 2003—Bonn, Germany

5. Primary Aluminium is Global 5.7 5.3 4.1 3.8 2.1 2.0 1.5 24.5 million tonnes primary produced in 2001 Source: IAI Anode Effect Survey, 2001. • Therefore global approaches must be undertaken to improve industry environmental performance WBCSD/WRI Side Event ; 12 June, 2003—Bonn, Germany

6. GHGs From Primary Aluminium Production CO2 Alumina mining & refining CF4 andC2F6 2 t CO2eq/t Al CO2 PFC Emissions 1.2 t CO2eq/t Al Electricity Input 15.6 MWh/t Al 4.8 t CO2eq/t Al CO2 Anode Carbon 1.7 t CO2eq/t Al Feeder CO2 Gases Anode Anode fabrication 0.3 t CO2eq/t Al Electrolyte Molten Aluminium Cathode Block Global average about 11 t CO2 eq/t Al WBCSD/WRI Side Event ; 12 June, 2003—Bonn, Germany

7. Specific Electricity Requirements Down 37% Decrease Since 1950 25 20 15 kWh/kg 10 20.5 13 5 0 1950 2000 • IAI conducts annual energy consumption surveys • Results are circulated to members enabling continuous improvement by comparison with the best in the world WBCSD/WRI Side Event ; 12 June, 2003—Bonn, Germany

8. Perfluorocarbon (PFC) Emissions Reduction • IAI member companies reduced specific PFC emissions by 70% from 4.0 to 1.2 t CO2-eq/t Al from 1990 to 2001 • Worldwide specific PFC emissions reduction estimated at 66% for same period WBCSD/WRI Side Event ; 12 June, 2003—Bonn, Germany

9. Growing Recycle RateWorld Aluminium Usage 1950-2000 Source:Metallgesellschaft AG/World Bureau of Metal Statistics About 1/3 world aluminium consumption from recycled product Recycle aluminium emissions and specific energy consumption are 5% that of primary IAI actively working to increase recycling rates globally WBCSD/WRI Side Event ; 12 June, 2003—Bonn, Germany

10. World Aluminium Industry GHG Inventory Needs Emissions accounting for: • Individual Company Reduction Commitments • National Voluntary Emissions Reduction Commitments • National Kyoto Reduction Targets • Potential Participation in Kyoto Mechanisms WBCSD/WRI Side Event ; 12 June, 2003—Bonn, Germany

11. Aluminium Sector GHG Inventory Issues • Need to be capable of cross comparison of reduction goals and progress toward goals • Different organizations developing inventory modules • Different formula being proposed for emissions accounting • IPCC Good Practice Guidance inadequate for producing corporate inventory WBCSD/WRI Side Event ; 12 June, 2003—Bonn, Germany

12. Development Process Spring 2002 • IAI Directors mandate development of standard • Task group formed from member companies • WBCSD – WRI template adopted • Draft GHG standard developed • Draft circulated to IAI companies and revised to meet international member needs • WBCSD – WRI review and comments • Final revisions • Publication to WBCSD/WRI and IAI websites Today WBCSD/WRI Side Event ; 12 June, 2003—Bonn, Germany

13. Outputs of the Process • Aluminium Industry Sector Specific Corporate GHG Inventory Protocol, “Greenhouse Gas Emissions Monitoring and Reportingby the Aluminium Industry” • Provides aluminium industry specific examples • Covers aluminium industry GHG sources • Aluminium Specific GHG Emissions Calculation tools • Guidance document, “Calculating Direct GHG Emissions from Primary Aluminium Metal Production, Guide to calculation worksheets “ • Excel calculation workbook • CO2 emissions from aluminium electrolysis, anode fabrication, calcining coke, lime production • PFC emissions from electrolysis WBCSD/WRI Side Event ; 12 June, 2003—Bonn, Germany

14. Benefits of the Collaboration • Efficiency • Proven Template available as a starting point • Build on experience of other industry sectors • Cross sector tools available for inclusion by reference • Stationary and mobile combustion sources • Improved communications to stakeholders • Outside review useful for making documents more understandable • Web resources WBCSD/WRI Side Event ; 12 June, 2003—Bonn, Germany

15. The Road Forward • Regular revision process to incorporate new data and changing inventory needs • Development of Project Based Method for aluminium sector • Education of industry, regulators and other stakeholders • Utilization of the standard for inventory needs WBCSD/WRI Side Event ; 12 June, 2003—Bonn, Germany

16. See the WBCSD/WRI Corporate protocol at: See the aluminium sector addendum at: http://www.ghgprotocol.org/ http://www.world-aluminium.org And the calculation guidance and tools at: http://www.ghgprotocol.org/standard/tools.htm WBCSD/WRI Side Event ; 12 June, 2003—Bonn, Germany

17. Thank You! WBCSD/WRI Side Event ; 12 June, 2003—Bonn, Germany