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ASSESSING THE CARBON FOOTPRINT OF COMPANIES IN AFRICA. Presented by Natacha ANDRE Regional Product Manager (Africa) 29th August 2013 @ Laico, Nairobi. Agenda. SGS Environmental services WHY to report your emissions as a cement company Situation in Europe Situation in Africa
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ASSESSING THE CARBON FOOTPRINT OF COMPANIES IN AFRICA Presented by Natacha ANDRE Regional Product Manager (Africa) 29th August 2013 @ Laico, Nairobi
Agenda • SGS Environmental services • WHY to report your emissions as a cement company • Situation in Europe • Situation in Africa • WHAT is Carbon footprint • HOW to assess Carbon footprint and main challenges
ABOUT SGS • World’s leading inspection, verification, testing and certification company • Founded in Rouen in 1878, as a grain inspection company • Over 70 000 employees • Over 1350 offices and laboratories operating in 140 countries EUROPE 15 900 Employees NORTH AMERICA 6 800 Employees ASIA PACIFIC 25 100 Employees AFRICA & MIDDLE EAST 14 600 Employees SOUTH AMERICA 7 100 Employees
SGS BUSINESS LINES Systems and Services Certification Consumer Testing Services Agricultural Services Environmental Services Industrial Services GIS Oil, Gas & Chemicals Services Minerals Services Life Science Services Automotive Services
Environmental Services Data Management Sample Preparation Data interpretation & consulting Field Services Analysis
Why to report your emissions as a cement company • In EUROPE: Mandatory • Kyoto Protocol : Countries have emissions reduction targets • Reductions in different sectors: • Tertiary sector • Transport sector • Industrial sector • Emission Trading Scheme
European Directive EU ETS Industry sector • European Union Emission Trading Scheme (EU ETS Directive): • Allowances for each company/site are pre-determined for each year (NAP) • Mandatory system: companies must have a GHG emissions permit & monitor and report their emissions • Emissions have to be verified each year • More than 12000 sites in Europe concerned
Penalties: 135 EUR/ton • in 2008-2012!! • 180 USD/ton European Directives EU ETS Industry sector • Obligations and penalties • The verified emissions must be covered by allowances • EXAMPLE: Cement • 2.000.000 tons CO2/y • If 50.000 tCO2 (2,5%) missing.. 6.750.000 EUR 9.000.000 USD
Emissions Trading & Carbon Market Buyer Seller
Why to report your emissions as a cement company • In AFRICA: Mainly Voluntary • Customer, Investor, Competitor, Internal, Sector association’s initiatives • Carbon Tax in South Africa starting 1st January 2015 • Phase 1 : 2015–2019 : • R120 per tonne of CO2e (12 USD/tCO2e) from 1 January 2015 • tax rate will increase annually by 10% • tax will only apply above certain specified thresholds, with these ‘tax free thresholds’ varying per sector • E.g Cement sector : basic tax free threshold of 60% + 20% max if justified (process emissions, competitiveness) - use of 5% offset max • If 2.000.000 tCO2e/y > 20% at 12 USD > 4.800.000 USD
What are the advantages? Competitive ADVANTAGE Opportunities to create INNOVATIVE products Opportunities to CUT fuel and utility COSTS Strong MARKETING argument Allows you to KNOW where you are & REDUCE your impact on the environment Improve the REPUTATION of your company Measure and report your GHG Emissions Improve brand VALUE of your products Important EXTERNAL communication tool : demonstrate you’re addressing CC risks Be seen as a Market LEADER Have access to NEW markets Improve your investor’s RELATIONS Important INTERNAL communication tool will help to get support from the Board
WHAT is Carbon footprint? • Carbon footprintrefers to the total set of greenhouse gas (GHG) emissions caused by an organization, event, product or person and is reported in tonnes of carbon dioxide equivalent (CO2e) • 1- Product Carbon footprint • 2- Corporate Carbon footprint
1- Product Carbon Footprint CF of the lifecycle of a product. t CO2e/t Cement
2- Organisational Carbon footprint CF of the company t CO2e/year
How to determine your Carbon footprint Process 1 - Define business goals What are the objectives of my organisation? 2- Determine the boundaries 3- Collect the data WHY? 4- Calculate GHG emissions and determine CF 5- Report organisation CF
Carbon footprint Process Which sources and GHG do I want to include/exclude? 1 - Define business goals Clinker production 2- Determine the boundaries Air conditioning 3- Collect the data Electricity consumption Fuel consumption (stationary) 4- Calculate GHG emissions and determine CF Generators Owned & leased Vehicles 5- Report organisation CF Employees travel WTP Waste management
Carbon footprint Process 1 - Define business goals 2- Determine the boundaries What information should I collect from the activities to calculate my GHG emissions? 3- Collect the data Collect Activity Data (e.g. Electricity use from bills) 4- Calculate GHG emissions and determine CF • - Bills missing • - Errors in figures/Units • - Meters not accurate (maintenance/calibration) 5- Report organisation CF
Carbon footprint Process 1 - Define business goals Which quantification method should I use to calculate my emissions? 2- Determine the boundaries Calculations or Measurement? 3- Collect the data 4- Calculate GHG emissions and determine CF Most common approach = Activity Data x Emission Factor 5- Report organisation CF
Carbon footprint Process 1 - Define business goals 2- Determine the boundaries What do I need to report? 3- Collect the data Refer to standard 4- Calculate GHG emissions and determine CF How do I want to communicate internally and externally? 5- Report organisation CF Should I set emissions reduction targets?
To conclude • No mandatory CF assessment in Africa yet • It’s the right time to start reporting your GHG emissions • Climate Change brings challenges to Africa • Don’t miss the opportunities !
Questions? Please contact : Natacha.Andre@sgs.com