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carbon
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Carbon footprinting
Greenhouse gas inventories made easy 
Henk Harmsen, 2008
 
carbon
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oluntary carbon reductions
T
he measures to reduce emissions of greenhousegases are not sufficient to revert or even stabilizeclimate change. Therefore more, and more stringent measures will be introduced. This brings a price to theemissions of greenhouse gases [“carbon”]. Wherethere are prices, there are costs and benefits. It is not surprising that 70% of listed companies are evaluatingthe financial impact of those costs and benefits.The first step will be to measure the emissions: this iscalled a
carbon footprint 
. There are several protocolsavailable to do this. The best known is the GreenhouseGas Protocol, the most compact is ISO14064-1. Appli-ance of these protocols require the reporting organi-zation to make choices on scope and the baseline year against which future emissions are measured.Setting a
emission reduction target 
means that youhave an idea of the possibilities of emission reductionsin your organization and the costs thereof. Otherwise you do not know whether your reduction is feasible. Insome cases it is possible to get emission rights forthose reductions, and this requires separate protocolsand procedures.The reduction measures may still not be enough tomeet the target of your company. In that case you can
offset emissions
by buying emission reductions. Thesereductions can come from a variety of emission reduc-tion schemes. The best known are the Clean Develop-ment Mechanism [CDM] and the Voluntary CarbonStandard [VCS].There are some issues to take into account whenbuying offsets from voluntary schemes: these reduc-tions are not included in the national emission admin-istrations of countries - and therefore not accountedfor officially.
 
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Designing a carbon footprint 
T
he carbon footprint is the amount of greenhouse gas emissions that it emitted during the reporting period.In order to get this, you will need to undertake three activities. First you need to design and set up an GHGinventory: the emissions sources and their emissions. Then you collect and process greenhouse gas emissiondata. The resulting emission report is often verified by a third party.Both the GHG Protocol and the ISO14064-1 standard leave some important choices open for the user. The first step in the design of an emission inventory is therefore to see what these choices are, what consequences they have, and take a decision on the application in your specific case. What are these choices?
Organizational boundaries
 You may have different installations, and youhave 2 main options for consolidating these emissions: the control approach and the equity approach. In a
con-trol approach
 you account for all GHG emissions from facilities over which you have financial or operational con-trol. In an
equity share approach
 you would account for GHG emissions in proportion to the percentageownership over the facility. A special case is leased assets. In a financial control or equity share approach youdon’t own or operate the emission sources. Therefore you would report these emissions as scope 3. In anoper-ational control approach you would report 100% of the emissions.
Base year
 You have to set a base year so you can follow the emission trend. You can choose a sin-gle base year, an average of several years or a rolling base year [the base year is always last year].There may be circumstances that require the recalculation of the GHG inventory. For example, you may havedetected an error in the calculation methodology or emission sources have been transferred in or out the or-ganizational boundaries. You will have to develop a policy for this, stating how the recalculation has to takeplace, and at at what threshold.
Operational boundaries
 You have to decide which emissions you report. Re-porting of direct emissions and energy indirect emissions is mandatory. Reporting of other indirect emissions[scope 3] is not, and there is also no definition of what these emissions are in your particular case. So you haveto decide whether you report scope 3 emissions or not. Then you decide which emissions you would report.
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