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John Carberry E. I. DuPont - CR&D Wilmington, DE 14 September, 1999

INDUSTRIAL VIEWS ON ESTABLISHING A “BASELINE” Pew Center on Global Climate Change Early Action Conference Washington, DC. John Carberry E. I. DuPont - CR&D Wilmington, DE 14 September, 1999. BROAD RANGE OF ISSUES Process for establishing the rules Content and procedures for the data

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John Carberry E. I. DuPont - CR&D Wilmington, DE 14 September, 1999

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  1. INDUSTRIAL VIEWS ON ESTABLISHING A “BASELINE” Pew Center on Global Climate Change Early Action Conference Washington, DC John CarberryE. I. DuPont - CR&DWilmington, DE14 September, 1999

  2. BROAD RANGE OF ISSUES • Process for establishing the rules • Content and procedures for the data • Data quality • Key learning's thus far

  3. PROCESS FOR THE RULES • Multi-stakeholder involvement • Clarity of content (gasses, dates, etc.) • Certainty of implementation • Adequate lead time • Local and global equity • Rational content

  4. CONTENT AND PROCEDURES • THE EASY ONES(!) • Gasses • Baseline year(s) • Equivalency factors • Business unit • Geographical unit

  5. CONTENT AND PROCEDURES THE NOT SO EASY ONES(!) • Finding “all” your sources • Product transportation • Business related use by employees (e.g. travel) • Allocating carbon content of purchased energy

  6. CONTENT AND PROCEDURES • THE HARD ONES(!) • Why, what data, by whom, accuracy, verification • • Joint ventures • Sales or purchases of businesses • International transfer of manufacturing base • New or discontinued businesses • Abandoned products • Backward integration

  7. QUALITY OF THE DATA • Measurement, statistics, calculations and estimates • Data is decent back to about ‘91. • Open to “interpretation” • Shifting personnel and data requirements • Large company records likely better • Compiled data will have weaknesses. • Single projects will be better

  8. LEARNING'S THUS FAR • Non-CO2 contributors offer opportunities • Create and support a “Czar” • Date publications. Show revision dates • Adopt broadly consistent units • Data improves but benefit diminishes

  9. THE LEARNING CURVE FOR A DATA SYSTEM 100% 90% Accounting Audit Accuracy Accuracy Project 80% Planning Credible 70% Greatly increased Strategic cost with almost no 60% Value increase in internal value Percent "Perfection" Achieved 50% Understanding Issues and 40% Problems 30% 20% 10% 0% 0 2 4 6 8 10 12 Number of Cycles

  10. CLOSING CHALLENGES • Establish base year, credit for early action, and basket of gasses • Clarity of use of baselines & inventories • Including non-industrial sectors • Running out of time • Accept reduced use of fossil derived carbon • #1! - Credit impact of use

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