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Introduction to ISO TC 207/SC 7 Standards

This article provides an introduction to ISO TC 207 SC 7 standards, covering its history, corporate responsibility requirements, and current market status in GHG assessment. It discusses the development of standards, the need for standardized GHG accounting and verification, and the challenges faced by companies in reporting and verifying GHG emissions.

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Introduction to ISO TC 207/SC 7 Standards

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  1. Introduction to ISO TC 207/SC 7 Standards Yong-Woon KIM ETRI

  2. Table of Contents • History • Corporate responsibility • Market status • GHG assessment process • ISO TC 207 Structure • TC 207/SC 7 standards • TC 207/SC 7 std relationship & positioning • ISO 14064-1 • ISO 14064-2 • ISO Verification std • Problem statements for ITU-T • What to do for ITU-T

  3. Presentation focus • History for problem statements of GHG Protocol Initiative and ISO • Positioning and relationship among relevant standards • Scope of standards, not covering detail contents of theirs • What to do for ITU-T

  4. History (1/2) Intergovernmental Panel on Climate Change (IPCC) was established by WMO and UNEP. It is publishing special reports on topics relevant to the implementation of the UNFCCC. United Nations Framework Convention on Climate Change (UNFCCC) was produced for stabilization of GHG emission at 1990 levels by 2000. UNFCCC came into force. COP-1 (1st Conferences of the Parties) was held in Berlin, Germany. 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 “IPCC Guidelines for National Greenhouse Gas Inventories” was published. “IPCC Guidelines for National Greenhouse Gas Inventories (Revised 2006)” was published. COP-3 was held in Kyoto, Japan, and the Kyoto Protocol was adopted for industrialized countries to reduce their collective emissions of GHG by 5.2% compared to the year 1990.

  5. History (2/2) WRI/WBCSD: a partnership initiated to develop standardized methods for GHG accounting. "The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard" "The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (revised)" "The Greenhouse Gas Protocol: The GHG Protocol for Project Accounting" 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 ISO 14064-1 ISO 14064-2 ISO 14064-3 ISO identified a need to standardize aspects of GHG accounting and verification; and, Its gap analysis result: no internationally recognized best practice guidelines on GHG verification ISO 14065 Verification-relevant standards ISO WD 14066 ISO NWIP 14067-1 ISO NWIP 14067-2

  6. Corporate responsibility • Corporate responsibility under the Kyoto Protocol • Annual GHG emissions reporting is required. • ICT sector companies also should do that. • Survey results of “Research and Markets” • "Corporate Greenhouse Gas Emissions Reporting 2008" was announced • Staggering inconsistencies in calculation and verification of GHG emissions of Fortune 500 companies • BT Group, Sony, Toshiba, GE, British Sky Broadcasting, Matsushita, Cisco, Dell, EMC, Intel, Motorola, Siemens, Deutsche Telekom, Telenor, Verizon, Vodafone, Samsung, etc. • 34 different public protocols or guidelines used • The most widely used is WRI/WBCSD GHG Protocol (http://www.ghgprotocol.org/)

  7. Market status (1/3) • Programs using GHG Protocol 63% of Fortune 500 companies use the GHG Protocol. Source: WRI/WBCSD

  8. Market status (2/3)

  9. Market status (3/3) • Study results of “Research and Markets” • Verification • Over half of the companies using standards • External verification • Less than half of the companies using the GHG Protocol • Estimated costs • Between €75,000 and €800,000 for collecting data and calculating GHG Protocol Scope 1 GHG emissions • Between €50,000 and €500,0000 for verification • ISO standards are more competitive for the verification phase.

  10. GHG assessment process Managing phase Set GHG targets Assign resources Planning phase Reduce GHG emissions Design GHG inventory Collect data Developing phase Account for GHG emissions (Managing phase) Report GHG emissions Reporting phase Verify GHG emissions Verifying phase (Managing phase)

  11. Assign resources Design GHG inventory Collect data Account for GHG emissions Manage inventory quality Set GHG targets Reduce GHG emissions Report GHG emissions GHG assessment process Iterate improvement process

  12. GHG assessment process • Determine resource requirements • Establish a team • Prepare a budget Assign resources • Define inventory boundaries • Determine emissions sources Design GHG inventory • Select a base year • Obtain appropriate data • Ensure data quality Collect data • Apply calculation tools • Guard against calculation errors Account for GHG emissions • Identity emission reduction opportunities • Decide on target type: absolute or intensity • Decide on target level Set GHG targets • Implement emission reduction activities Reduce GHG emissions • Publicly report complete inventory information Report GHG emissions • Verify asserted inventory information Verify GHG emissions

  13. ISO TC 207 Structure Source: ISO TC 207

  14. TC 207/SC 7 standards • Published standards • ISO 14064-1 (Greenhouse gases – Part 1: Specification with guidance at the organization level for quantification and reporting of greenhouse gas emissions and removals) • ISO 14064-2 (Greenhouse gases – Part 2: Specification with guidance at the project level for quantification, monitoring and reporting of greenhouse gas emission reductions and removal enhancements) • ISO 14064-3 (Greenhouse gases – Part 3: Specification with guidance for the validation and verification of greenhouse gas assertions) • ISO 14065 (Greenhouse gases – Requirements for greenhouse gas validation and verification bodies for use in accreditation or other forms of recognition) • WG 1 working draft standards (Competency requirements for greenhouse gas validators and verifiers document) • ISO/WD 14066 (Greenhouse gases – Competency requirements for greenhouse gas validators and verifiers) • WG 2 working draft standards (GHG management in the value or supply chain) • ISO NWIP 14067-1 (Greenhouse gases – Carbon footprint of products – Part 1: Quantification) • ISO NWIP 14067-2 (Greenhouse gases – Carbon footprint of products – Part 2: Communication)

  15. SC 7 std relationship Source: ISO TC 207/SC 7

  16. SC 7 std positioning Assign resources Corporations GHG Projects Design GHG inventory Collect data Account for GHG emissions ISO 14064-1 ISO 14064-2 Set GHG targets Reduce GHG emissions Report GHG emissions ISO 14064-3 ISO 14065 ISO 15066 Verify GHG emissions Validators/Verifiers

  17. ISO 14064-1 Keys • It is consistent with and refers specifically to GHG Protocol, corporate. • Design GHG inventory • Define inventory boundaries • Organizational boundary; and • Either “Equity share approach”; or, • Organization accounts for emissions according to its portion of equity. • “Control approach” • Organization accounts for all emissions from operations over which it has financial or operational control. • Operational boundary • Direct GHG emissions (called Scope 1 in GHG Protocol) • Energy indirect GHG emissions (called Scope 2) • Other indirect GHG emissions (called Scope 3)

  18. ISO 14064-1 Keys • Design GHG inventory (cont’d) • Operational boundaries Source: New Zealand Business Council for Sustainable Development

  19. ISO 14064-1 Keys • Design GHG inventory (cont’d) • Definitions: direct GHG emission vs. indirect GHG emission • Direct GHG emissions: those from sources that are owned or controlled by organization • Indirect GHG emissions: those which are a consequence of the activities of the organization but occur at sources owned or controlled by another organization • Scope 1: Direct GHG emissions • Emissions caused by sources that are owned or controlled by organization (e.g. generation of electricity, heat or steam; physical or chemical processing; transportation of materials, products, waste and employees; and, fugitive emissions) • Scope 2: Energy indirect GHG emissions • Emissions from the generation of purchased electricity, heat or steam consumed by the organization. • Scope 3: Other indirect GHG emissions • Examples: extraction and production of purchased materials and fuels; transportation of waste, sold products, and purchased materials and fuels; employee business travel, use of sold products and services, waste disposal, etc.

  20. ISO 14064-1 Keys • Design GHG inventory (cont’d) • Accounting for indirect GHG emissions by purchased electricity Source: GHG Protocol Initiative

  21. ISO 14064-2 Key • Key: accounting for GHG reductions from Projects Source: GHG Protocol Initiative Baseline emission: an estimate of GHG emissions, removals, or storage associated with a baseline scenario Baseline scenario: a hypothetical reference case of what would have most likely occurred in the absence of a proposed GHG project.

  22. ISO 14064-2 Scope A typical GHG project cycle Planning Implementation Consult stakeholders before & after establishing GHG-project plan Assess project concept/ feasibility/ program Undertake project activities Validate GHG project Recognition of GHG units Terminate project Obtain approval of the project Plan the GHG project Register project Periodic verification, certification and recognition of GHG units Present final GHG report Verify final GHG emission reduction and removal enhancements Certify final GHG emission reductions and removal enhancements Describe project; Determine baseline scenario; Establish procedures to monitor, quantify and report GHG emissions, removals, storage, emission reductions and removal enhancements; and Validate the GHG project Implement procedures to monitor, quantify and report GHG emissions, removals, storage, emission reductions and removal enhancements; and Verify GHG emission reductions, removal enhancements and reports Source: ISO 14064-2

  23. Describe the project Quantify emission reductions and removal enhancements ISO 14064-2 Process Identify SSRs relevant for the project Manage data quality Determine the baseline scenario Monitor the GHG project Identify SSRs for the baseline scenario Document the GHG project Select relevat SSRs for monitoring or estimation Validation and/or verification Quantify emissions and/or removals Report GHG project SSRs: GHG sources, sinks and reservoirs Source: ISO 14064-2

  24. ISO verification std A registry is an organization where companies can declare the results of their GHG emissions. Registries incentivize early action because companies will receive recognition for their voluntary emissions reduction efforts under any future regulatory schemes. Registries are often used to track GHG emissions, GHG emission reductions or GHG removal enhancements by assigning them unique identifier. GHG Registry Requesting to endorse reduction results Validator/ Verifier Validator/ Verifier Validator/ Verifier Registering reduction project Managing results Consulting firms Validating project plan; and Verifying asserted report Consulting for project planning; and Evaluating project plan and inventory Reporter Perform GHG reduction projects; and Account for and report GHG emissions, reductions and removals Korea granted validation/verification licenses to 7 organizations.

  25. ISO verification std • ISO 14064-3 specifies principles and requirements and provides guidance for those conducting or managing the validation and/or verification of GHG assertions. • ISO 14065 specifies principles and requirements for GHG validators and verifiers that undertake validation and/or verification of GHG assertions. • ISO 14066 specifies personal attribute, knowledge and skill (competency) requirements, required levels of proficiency and methods to evaluate competencies for GHG validators and/or verifiers by areas of competence. ISO 14064-3, verification process ISO 14065, valiator/verifier requirements Validator/ Verifier ISO 14066, validator/verifier competency requirements ISO 14065, valiator/verifier requirements Validator/ Verifier

  26. ISO standards users • Canadian Standards Association’s (CSA) GHG Registries (http://www.ghgregistries.ca/) • ANSICA (http://www.ansi.org/ghg/), and so on.

  27. Problem statements • Survey results of “Research and Markets • Inadequate standards yet • All investors surveyed suggested that the current standards available to companies are inadequate. Suggestions given as to what would improve corporate emissions-reporting standards included a greater link between carbon-performance reporting and financials. • Mandatory for certain threshold of emissions levels • Australia, Canada, and the UK are the only countries in which it is or will soon be mandatory for companies with emissions levels over a certain threshold (or meeting other specific criteria) to report on their emissions.

  28. Over-emission Reduction Problem statements • Market news • U.S. President Obama is planning to pay for tax cuts with some of the money generated by a carbon cap-and-trade regulation. • Thus, GHG accounting and reporting is a critical management factor for companies.

  29. What to do for ITU-T

  30. Thank you for your attention!

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