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Greenhouse Gas Mitigation

in Small and Medium Scale Industries of Asia

S. Kumar
C. Visvanathan
Sizhen Peng
R. Rudramoorthy
Alice B. Herrera
Gamini Senanayake
Ly Dinh Son

School of Environment, Resources and Development
Asian Institute of Technology
PO Box 4, Klong Luang
Pathumthani 12120
Fax: (66) 2 524 5439
Email: or

Neither the Swedish International Development Cooperation Agency (Sida) nor the Asian
Institute of Technology (AIT) and its partners, the National Research Institutes of the
study countries, make any warranty, expressed or implied, or assume any legal liability for
the accuracy or completeness of any information, apparatus, products, or represents that
its use would not infringe privately owned rights. Reference herein to any trademark or
manufacturers or otherwise does not constitute or imply endorsement, recommendation,
or favoring by Sida or AIT.

ISBN 974 8208 59 1
600 copies

 Asian Institute of Technology, 2005
Printed in Thailand.
Project Team
Principal Investigators
Dr S. Kumar, Professor, Energy Field of Study, School of Environment, Resources
and Development, Asian Institute of Technology, Thailand (

Dr C. Visvanathan, Professor, Environmental Engineering and Management Field of
Study, School of Environment, Resources and Development, Asian Institute of
Technology, Thailand (

National Research Institute (NRI) Team Leaders
Dr Sizhen Peng, Director, Center for Environmentally Sound Technology Transfer,
Administrative Center for China’s Agenda 21, Beijing, China (

Dr R. Rudramoorthy, Professor, Energy Engineering Department, PSG College of
Technology and Industrial Institute, Coimbatore, India (

Dr Alice B. Herrera, Fuel and Energy Division, Industrial Technology Development
Institute, Department of Science and Technology, Metro Manila, The Philippines

Mr Gamini Senanayake, Director, Industrial Services Bureau of North Western Province,
Kurunegala, Sri Lanka (

Mr Ly Dinh Son, Director, Consulting Center for Cooperation and Capacity Building,
Hanoi, Vietnam (

Research Staff
Mr Aruna Manipura (March 2002 to December 2003)
Ms Priya Ambashankar (December 2003 to August 2004)
Mr Prajapati Shapkota (September 2003 to November 2004)
Mr Prantik Bordoloi (Since May 2004)

Research Fellows
Mr S. Sivasubramaniam (June 2004)
Mr Do Nam Trung (June 2004)
Mr R. Kannan (March to May 2005)
The Asian Regional Research Programme on and analysis of sector estimation of GHG
Energy, Environment and Climate emissions is presented. It includes significant
(ARRPEEC) funded by the Swedish issues related to energy use and GHG
International Development Cooperation emissions in the current scenario vis-à-vis the
Agency (Sida) conducts research on energy, move towards reducing emissions in each of
environment and climate change relevant to these countries as a follow up to the Kyoto
Asia. The Small and Medium Scale Industries Protocol, CDM.
in Asia project (SMI in Asia) is one of the
projects under ARRPEEC and was aimed at Of the five participating countries, China
(i) greenhouse gas emission estimation, (ii) and India represent the most populous
review of barriers inhibiting adoption of countries in the world with a large number
energy efficient and environmentally sound of SMIs dominating the industrial scene. For
technologies (E3STs) and (iii) techno- the Philippines, Sri Lanka and Vietnam, the
economic assessment of E3STs. The SMI in study focuses on specific SMI sectors which
Asia project is coordinated by the Asian account for the majority of the industrial
Institute of Technology (AIT), Thailand and sector.
involves the following research institutions:
the Center for Environmentally Sound This study presents the research findings and
Technology Transfer, China; PSG College of discusses sector approaches for GHG
Technology and Industrial Institute, India; emission reductions with sensitivity analysis
Industrial Services Bureau of North Western of stepwise emission reduction scenarios that
Province, Sri Lanka; Industrial Technology can be used as mitigation measures for
Development Institute, Department of sustainability. Several recommendations are
Science and Technology, Philippines; and made for continuing the research and
Consulting Center for Cooperation and implementing the findings for specific
Capacity Building, Vietnam. countries for the selected sectors. GHG
emission reduction and mitigation strategies
This report highlights the research carried out could be developed for other sectors based
to estimate Greenhouse Gas (GHG) on this approach. Recommendations also
emissions and present strategies for encompass new directions and strategies that
mitigation in selected sectors of small and can be adopted to help the study countries
medium scale industries (SMIs). It describes attain optimum GHG mitigation and
in brief the background to GHG emissions reduction for a sustainable environment and
in the SMIs with a review of the indicators development of the industrial sector.
and reporting systems using
Intergovernmental Panel on Climate Change We express our sincere appreciation to the
(IPCC) guidelines. The present policies following experts for critically reviewing this
regarding energy efficiency and GHG report and for their valuable suggestions prior
mitigations in the study countries are to publication:
described and the methodology for estimation

Dr Ajith de Alwis, University of Moratuwa,
Sri Lanka

Dr P. Balachandra, Indian Institute of
Science, Bangalore, India

Mr Liu Bin, Beijing Economic and Trading
University, China

Mr Le Nguyen Tuong, Institute of
Meteorology and Hydrology, Hanoi, Vietnam

Ms Clarissa C. Cabacang, Preferred Energy
Inc., Philippines

On behalf of the participating institutions,
we take this opportunity to thank the
Swedish International Development
Cooperation Agency for facilitating this phase
of an important piece of research and to AIT
and the management of the participating
national institutions for the congenial
atmosphere they provided for carrying out
this study. We look forward to the adoption
of the methodology for GHG emission
reductions in the study countries and in other
Asian countries.

S. Kumar
C. Visvanathan
Sizhen Peng
R. Rudramoorthy
Alice B. Herrera
Gamini Senanayake
Ly Dinh Son
April 2005

Executive Summary
This report presents the results of the study For estimation of SMI emissions by sector,
carried out to estimate the greenhouse gas an extrapolation methodology was used
(GHG) emissions from selected small and based on a weighted average specific
medium scale industries (SMI) in China, emissions factor (SEF) that was established
India, Sri Lanka, the Philippines and through surveys, energy-environment audits
Vietnam. This is one outcome of the project and literature surveys, and SMI sector
entitled Small and Medium Scale Industries production figures. This extrapolation
in Asia: Energy, Environment and Climate methodology aimed for a “ballpark estimate”
Interrelations, under the Asian Regional that is far better than a “guesstimate” of SMI
Research Programme on Energy, sector emissions at a macro level.
Environment and Climate (ARRPEEC)
Phase III. The CO2 emissions from selected sectors were
estimated and each estimate includes a
In Asia, SMIs account for over 85% of the measure of uncertainty. Among the selected
total manufacturing establishments and SMIs in the study countries, the highest
contribute significantly to national contributors of CO2 emissions are the brick
economies and industrial development. Due sector in China and India and the tea sector
to lack of capital, skilled personnel and in Sri Lanka.
awareness about the existing Energy Efficient
and Environmentally Sound Technologies To meet the challenge of GHG emissions
(E3STs), the SMI sector consumes excessive reduction, four instruments were selected
energy and generates increasing pollution and mitigation scenarios were studied. These
loads, of which CO2 emissions is the most were: enhanced operation and maintenance
significant. This study addresses these issues practices, adoption of E3STs, fuel switching
with the following objectives: and policy intervention.

• To develop a GHG emission estimation In the brick and foundry sectors in China,
methodology to quantify GHG emissions about 4-20% of the sector emissions can be
from SMI sectors reduced, which is over 10 million tonnes of
CO2 per year. In the brick sector in Vietnam,
• To estimate GHG emissions from selected there is potential for CO 2 emissions
SMI sectors in the participating countries, reductions of 5-42%. In the brick sector in
specifically: foundries, brick, tiles and India, 10-20% of the emissions could be
ceramic manufacturers, desiccated mitigated through adoption of E3STs and
coconut, tea and textiles switching to cleaner fuels, while the textile
sector has potential for about 5-25%
• To conduct scenario studies to estimate reduction. There is potential for a reduction
GHG mitigation potential from the of more than 13 million t-CO2 emissions from
selected SMI sectors the selected SMI sector in India.

The Philippines metal casting sector has a
reduction potential of about 0.13 million t-
CO2 which is about 50% of the total emissions
from the sector. Sri Lanka has a potential for
of up to 11% in the brick sector and 7.5% in
the desiccated coconut sector.

Realising the potential for CO 2 emission
reduction requires effective strategies that
encourage SMIs to improve their energy and
environmental performance. The strategy
could initially focus on enhancing O&M
practices, also known as “good housekeeping
practices”, as the first step for reductions of
5-10%. These initial results would help SMIs
gain confidence and consider further options
like changes to E3STs and alternative fuels,
which enable reductions of up to 50% in
selected SMI sectors. Policy options related to
incentives can then be implemented while
those related to regulations and legislation
should be enforced at a later stage to ensure
the sustainability of implemented programmes.

Table of Contents
Project Team ......................................................................................................... III
Preface ...................................................................................................................... IV
Executive Summary ............................................................................................... VI

1. Introduction .......................................................................................................... 1
1.1. Energy-Environment Interrelations ............................................................... 1
1.2. Small and Medium Scale Industries in Asia ................................................. 2
1.3. Overview of GHG Emission Mitigation in SMI Sectors ....................... 5
1.4. Objectives of the Study ................................................................................... 6
1.5. Organization of the Report ........................................................................... 6

2. GHG Emission Estimation Methodology for SMI .......................... 7
2.1. Introduction ....................................................................................................... 7
2.2. GHG Emission Estimation Methodologies ............................................... 8
2.3. Framework on GHG Emission Estimation Methodology ..................... 9
2.3.1. Data collection .............................................................................................. 10
2.3.2. Planning for a GHG inventory ................................................................ 12
2.3.3. GHG emission estimations ....................................................................... 14
2.3.4. Uncertainty .................................................................................................... 16
2.3.5. Options for GHG emission mitigation .................................................. 17

3. GHG Emissions from SMI Sector .................................................. 19
3.1. Introduction ...................................................................................................... 19
3.2. Data Collection ................................................................................................ 19
3.3. Emission Boundaries and Assumptions .................................................... 20
3.4. GHG Emission Estimation .......................................................................... 22
3.4.1. SEF at plant level ......................................................................................... 22
3.4.2. SMI sector GHG emissions ...................................................................... 24
3.5. Benchmarking Energy Use and Emissions for SMIs ............................. 31
3.6. Uncertainty Analysis ...................................................................................... 31
3.7. Summary ........................................................................................................... 34

4. GHG Emission Mitigation Scenarios ............................................. 37
4.1. Emission Reduction Scenarios ...................................................................... 37
4.2. Emission Reduction through Enhanced O&M ...................................... 37

4.3. Emission Reduction through Adoption of E3STs ................................. 39
4.3.1. Tea sector ...................................................................................................... 39
4.3.2. Textile sector ................................................................................................. 40
4.3.3. Foundry sector ............................................................................................. 40
4.3.4. Brick sector ................................................................................................... 41
4.3.5. Scenario summary ....................................................................................... 41
4.4. Emission Reduction from Fuel Switching ................................................. 41
4.4.1. Natural gas .................................................................................................... 43
4.4.2. Renewable energy ........................................................................................ 44
4.5. Emission Reduction through Policy Intervention ................................... 44
4.6. Limitations of the Mitigation Scenarios Study ........................................ 46
4.7. CDM as a Tool to Mitigate GHG Emission in SMIs ............................. 48
4.8. Summary ........................................................................................................... 49

5. Conclusions and Recommendations .............................................. 51
5.1 Conclusions ........................................................................................................ 51
5.2. Recommendations .......................................................................................... 53
5.2.1. GHG emission estimations ....................................................................... 53
5.2.2. Emission mitigation .................................................................................... 53
5.2.3. CDM opportunities in SMI sectors ......................................................... 54

References ................................................................................................................ 55
Appendix A: Net Calorific Value of Fuels ......................................................... 60
Appendix B: Carbon Emission Factor and Carbon Oxidation
Factor of Fuels............................................................................................................61
Appendix C: Calculations of SMI Sector CO2 Emission from
Indian Textile Sector ............................................................................................. 63
Appendix D: National GHG Emission Inventory in 1994 .......................... 66

List of Abbreviations
CDM Clean Development Mechanism
CEF Carbon Emission Factor
CER Certified Emission Reduction
CH4 Methane
CO2 Carbon dioxide
CTC Cut-tear-curl
DOE United States Department of Energy
DSM Demand Side Management
E3ST Energy Efficient and Environmentally Sound Technology
EEF Electricity Emission Factor
EIA Environmental Impact Assessment
FBD Fluidized Bed Drier
GEF Global Environment Facility
HFC Hydrofluorocarbons
IEA International Energy Agency
IPCC Intergovernmental Panel on Climate Change
IPPC/IPC Integrated Pollution Prevention and Control/Integrated Pollution Control
IREDA Indian Renewable Energy Development Agency
JI Joint Implementation
kg-CO2 Kilogram of CO2
kWh Kilowatt-hour
LPG Liquefied Petroleum Gas
MJ Mega Joule
MNES Ministry of Non-conventional Energy Sources, India
N2O Nitrous Oxide
NCV Net Calorific Value
NRI National Research Institute
PFCs Perfluoro compounds
ppm Parts Per Million
SEC Specific Energy Consumption
SEF Specific Emission Factor
SF6 Sulphur Hexaflouride
SME/SMI Small and Medium Scale Enterprise or Industry
TCE Tonnes of Carbon Equivalent
t-CO2 Tonne of CO2
TJ Terra Joule
UNFCCC United Nations Framework Convention on Climate Change
WBCSD World Business Council for Sustainable Development

X Abbreviations

Chapter 1

1.1. Energy-Environment

Over 85% of the world’s primary energy There is strong g rowth in energ y
supply is met from fossil fuels (EIA, 2004). consumption among the developing nations
Burning fossil fuels and other human but the fastest growth is projected for the
activities are now accepted as the primary nations of developing Asia, including China
cause of changes in atmospheric carbon and India (EIA, 2004). The five Asian
dioxide (CO2) concentration and other heat- countries selected for this study, China, India,
trapping gases like methane (CH4) and nitrous Philippines, Sri Lanka and Vietnam, account
oxide (N2O). An atmospheric concentration for about 57% of the total CO2 emissions
of CO2 of 368 ppm in the year 2000 is a from Asia and Oceania, of which China and
significant increase compared with 280 ppm India contribute a major amount (EIA,
during the period 1000-1750. This human- 2004a). The share of CO2 emissions from
made greenhouse effect has the potential to fossil fuel use in the different regions of the
change the earth’s climate dramatically in a world and the participating countries of this
relatively short span of time. There is new study are illustrated in Figure 1.1.
and stronger evidence that most of the
warming has occurred over the last 50 years Global warming is expected to worsen unless
and is attributable to anthropogenic activities. concrete measures are taken to reduce the
The global average surface temperature has trend of increasing emissions. The Kyoto
increased by 0.6 ± ± 0.2°C
° in the 20th century. Protocol of the United Nations Framework
At the current emission rates, global Convention on Climate Change (UNFCCC)
atmospheric CO2 concentrations are expected began to address the issues related to climate
to double by the middle of the 21st century. change (UNFCCC, 1997). Under the
This will result in the warming of earth’s Protocol, industrialized countries agree to
atmosphere by 1.5-4.5°C ° and cause global meet quantitative targets for reducing or
mean sea level to rise by 0.25-0.50 meters limiting their GHG emissions. Studies and
(IPCC, 2001). The consequences of these actions pertaining to GHG emissions are
effects will be serious. Currently, climate carried out at the national level in many
change is the centrepiece of the world’s sectors of the economy, including large-scale
environmental agenda. The goal of industries. However, few measures are
environmental sustainability is incredibly undertaken in small and medium scale
complex. industries even though they form a major
share of the manufacturing sector.

Chapter 1 1
Greenhouse Gas Mitigation

Source: (EIA, 2004a)

Figure 1.1 Share of CO2 emissions by region (left) and in the study countries (2002)

1.2. Small and Medium Scale
Industries in Asia

There is a substantial economic growth in the Domestic Product (GDP) in the selected
selected five countries (Figure 1.2). Along countries (ADB, 2003) and their growth rates
with economic development, environmental are even stronger than the national GDP
pollution has also increased, especially GHG growth rates shown in Figure 1.2. This rapid
emissions from industry. The industrial sector industrial growth has led to significant
accounts for about 27-52% of National Gross increases in energy use and GHG emissions.

Figure 1.2 National GDP growth
rates in the selected countries

2 Chapter 1
The categorisation of small and medium scale producers belong to the SMI sector. In the
industries (SMIs) is based on country-specific Philippines nearly 50% of the SMI sector is
criteria (Table 1.1). SMIs account for about food processing. In India, textiles and
85% of the manufacturing establishments in foundries are important SMI sectors, while
Asia and play an important role in the national in Sri Lanka tea, coconut-based industries
economy in terms of GDP and employment and bricks and tiles are the important sectors.
creation (28-30% of the GDP in India, Textiles and apparel, tea, desiccated coconut,
Vietnam and the Philippines and 60% of bricks, wood and wood products constitute
Gross Industrial Production in China; 13- more than 80% of SMIs in each of the study
75% of total employment; Kumar et al., countries (AIT, 2002a). The sector
2002). Generally, SMIs are found in all ma- distribution of SMIs forms a significant
jor manufacturing sub-sectors. However, for portion of the overall manufacturing industry
each country there are characteristic sub- in the study countries as can be seen from
sectors that constitute the major part of the Table 1.2.
SMI sector. For example, in China, 95% of
foundries and 80% of textile and apparel

Chapter 1 3
Greenhouse Gas Mitigation

4 Chapter 1

1.3. Overview of GHG Emission
Mitigation in SMI Sectors

To mitigate GHG emissions, governments prevention, adoption of the polluter pay prin-
have initiated many activities and formulated ciple, and policies covering pollution mitiga-
laws and regulations. These include tion in SMIs.
improving energy efficiency, promoting
renewable energy technologies and SMIs are profit oriented and not much
regulations on emissions and pollutants. concerned about the impact of their energy
These are aimed at reducing energy use on local and regional pollution. They
consumption and pollution from industries face many difficulties such as lack of capital,
in general. A comparison of the energy and human resources, support and training,
environmental policies of the study countries standards and benchmarks, awareness of
is given in Table 1.3. So far, laws and plans resource management and access to E3STs.
do not specifically target SMIs but cover In most SMIs, the technology is old and
them under the general category of ‘industry’. inefficient. They are less energy efficient and
Almost all study countries have formulated they generate a lot of pollution (Kumar et
environmental protection laws, air emission al., 2002). Considering the potential for
standards, wastewater discharge standards economic development and employment
and requirements for Environmental Impact creation, it is expected that in the future they
Assessment (EIA) for new industries. will contribute significantly to energy use
However, only a few countries have and GHG emissions.
implemented and carried out efforts to
provide financial incentives for pollution

Chapter 1 5
Greenhouse Gas Mitigation
Energy-environment surveys were conducted 4. To conduct scenario studies to estimate
for SMIs in the selected countries to identify GHG mitigation potential through enhanced
their future significance in GHG emission operation and maintenance (O&M) practices,
mitigation measures. The results are adoption of E3STs, fuel switching and policy
presented in Table 1.4. There has been no intervention.
significant effort to address these issues.
Therefore, considering their large numbers,
energy inefficiency, and potential for emission 1.5. Organization of the Report
reductions, it is important to target the SMI
sector for pollution prevention and GHG The report structure is outlined in Figure 1.3
emission mitigation measures. Earlier SMI in below.
Asia project studies focused on capacity
building, analyzing and benchmarking energy-
use patterns of selected SMI sectors and
identification of E3STs for SMIs (AIT,
2002a; 2002b; 2002c; 2002d).

This study aims to quantify the GHG
emissions from SMI sectors to understand
their significance in the overall national GHG
emissions. Due to lack of participation of
SMIs, their large numbers and scattered
nature and lack of information on their
energy use, quantification of their GHG
emissions is fraught with challenges and

1.4. Objectives of the Study

The study aims to achieve the following four
1. To customize a GHG emission
estimation methodology from existing
methodologies to quantify emissions;
2. To estimate GHG emissions from the
selected SMI sectors (foundries, brick, tile
and ceramic manufacturers, desiccated
coconut, tea and textiles) in the participating
3. To compare emission indicators at a
cross-country level; and

6 Chapter 1
GHG Emission Estimation Methodology for SMI

Chapter 2
GHG Emission
for SMI
2.1. Introduction

The Intergovernmental Panel on Climate unions or manufacturers’ associations. The
Change (1996) developed guidelines for SEF can be established through surveys,
reporting national GHG emission inventories. energy-environment audits from a sample of
National inventory estimates are based on SMIs and the existing literature. From the
aggregate energy consumption data from SEF data of sample SMIs, a national weighted
various sectors of the economy such as average SEF can be established. Using this
power, transport and industry. Using the weighted average SEF and the total
same methodology, GHG emissions from the production of that sector, the sector
SMI sector can be estimated if the aggregated emissions can be estimated. The reliability
energy consumption data of a sector is of an extrapolated emission estimate largely
available. Unfortunately, such sector-specific depends on the robustness of the weighted
energy consumption data are not commonly average SEF, which depends on sample size.
available, except in some countries like Generally, the higher the sample number, the
Indonesia (Priambodo and Kumar, 2001). better the estimate. However, many
Therefore, it becomes necessary to seek uncertainties such as fuel mix, technology use
alternative approaches to estimate emissions. and production volume also need to be
considered in determining a national
One such approach is extrapolation of GHG weighted average SEF. These factors are
emission data gathered from a sample of highlighted in Box 2.1.
SMIs. The basic input data required for such
sector estimations are national production Extrapolation allows the use of inventory
data, sector contributions of SMIs in total data from a particular sector directly and
production and a reliable specific emissions employs transparent data sources for national
factor (SEF)1 per unit of product output. The inventories. Any changes in emissions from
national production data can be obtained or
estimated from national statistics, trade 1
SEF is defined in Section

Chapter 2 7
Greenhouse Gas Mitigation
the target sector inventory can be 2.2. GHG Emission Estimation
incorporated in the national inventory Methodologies
(WBCSD, 2001). Although the extrapolation
methodology may not lead to precisely To establish the weighted average SEF, an
accurate emission estimates (see Box 2.1), it estimation of SEF from a sample of SMIs is
helps establish “ballpark” values. Such required. Although methodologies are
estimates are far better than the available to estimate GHG emissions from
“guesstimates” of sector GHG emission individual and corporate industries and
figures at the macro level. business establishments, compatibility with
Box 2.1 the IPCC guidelines is important for the use
Reliability of extrapolation of SMI of these results. To estimate the GHG
sectoral emissions emissions from SMIs, two approaches can
It is assumed that emissions from sample SMIs
be used, namely, direct monitoring and SEF
are representative of the whole SMI sector. In based calculation.
some sectors or countries this is not always
the case. Many factors affect the robustness The direct monitoring approach is more
of the sample data including:
common in process industries and electric
1. Type of finished product, e.g. different utilities in the USA. If a direct monitoring
size of bricks, cast iron or steel system has already been established in a
2. Variations in production processes; facility, the associated data provides a good
e.g. tea is produced from two
production processes, Orthodox and estimate of CO2 emissions.
3. Production volume; typically higher In the SEF based estimation, source or
production volume lowers energy use
facility-specific fuel data is used. This
4. Energy use pattern of the sample
SMIs (also depends on technology approach is more accurate and will also
used in production process) facilitate the identification of emission
5. Fuel mix of energy use (depends on reduction opportunities. If calculating fuel
fuel availably in the region and type of
technology used)
data at this level is not possible, a corporate-
6. With electricity, indirect emission wide approach of calculating total fuel use
depends on fuel mix used to generate from fuel purchasing data can be employed.

Although these factors may affect the national
To meet the special needs of SMIs, the
weighted average SEF, a range of emissions following two GHG emission estimation
can be established by categorizing the data methodologies have been identified from the
qualitatively though inputs from experts and literature:
data from the literature.

8 Chapter 2
GHG Emission Estimation Methodology for SMI
1. GHG Indicator of the United Nations fuel consumed in each operation. These two
Environment Programme (see Box 2.2); and methods complement one another and differ
only in their magnitude or scope of study.
2. Greenhouse Gas Protocol initiative of the They are briefly described in Boxes 2.2 and
World Resources Institute/World Business 2.3.
Council for Sustainable Development (WRI/
WBCSD) (see Box 2.3).
2.3. Framework on GHG Emission
The UNEP GHG indicator methodology Estimation Methodology
describes a procedure for gathering all the
data required to estimate emissions from As noted in Section 2.1, the extrapolation
electricity use and other fuel consumption. methodology was used to estimate sector
The WRI/WBCSD GHG Protocol clearly GHG emissions. To establish a national
defines the procedure for determining the weighted average SEF, energy and
environmental audits were carried out in
Box 2.2 sample SMIs, which are described in Chapter
3. For the estimation of emissions from the
UNEP GHG Guidelines sample SMIs, also referred to as plant level
emissions, the IPCC (1996) guidelines and
UNEP’s Guidelines for Calculating
Greenhouse Gas Emissions for Businesses UNEP (2000) GHG Indicator approaches
and Non-Commercial Organizations helps were used. The former was used to estimate
organizations in accounting and reporting their emissions due to primary energy use, i.e.
emissions. The guidelines provide a method direct fuel consumption, while the latter was
whereby GHG emissions are calculated and used to estimate emissions due to secondary
combined to give a single GHG Indicator to
show an organization’s contribution to climate energy use such as electricity. The overall
change. An essential characteristic of the framework of the sector GHG emission
GHG Indicator is that it uses information estimation and measures for mitigation of
readily accessible by the industries. This GHG emissions is shown in Figure 2.1. It
data, expressed in commonly used basic consists of five steps based on the Plan-Do-
units, can be converted and aggregated to
calculate the total contribution to climate Check-Act cycle to deal with the dynamic
change. The indicator is applicable at all levels behaviour of GHG emissions in the SMI
of a company and regardless of their size. sector. It is aimed at continual improvement
The figure below shows the generic framework of estimating GHG emissions. The details
of the process and the information needed to of each step are described in the following
derive the GHG Indicator.

Source: Adapted from UNEP, 2000

Chapter 2 9
Greenhouse Gas Mitigation

Box 2.3 2.3.1. Data collection

Greenhouse Gas Protocol Initiative of Figure 2.2 illustrates the data collection
procedure for a GHG emission estimation.
The Greenhouse Gas Protocol Initiative was
The primary data collection includes energy
developed by the World Resources Institute
consumption (both primary and secondary
(WRI) and the World Business Council for
energy sources such as electricity, diesel, fuel
Sustainable Development (WBCSD) to promote oil, coal, coke and firewood) at SMI level,
the use of voluntary international accounting which requires energy and environmental
and reporting standards for businesses. The audits at a micro or factory level. These data
inventory has three separate but linked are used to calculate GHG emissions at plant
modules: the core inventory, reporting project- level and then extrapolated to the SMI sector
based reductions, and accounting for GHGs level. Information on sector production
in the value chain. The first module (core process/flow charts can also be collected to
inventory) was published in 2001 while the last facilitate the next step of planning the
two are currently being developed (GHG inventory.
Protocol Initiative 2004). The first module is
aimed at helping companies and organizations For the calculation of emissions at plant
develop credible inventory data underpinned by level, information and data such as fuel type,
GHG accounting and reporting principles, their heating values and carbon emission
account and report information from global factors have to be collected. These data may
operations, provide internal management to be available in national databases or from
build an effective strategy to manage and established databases such as IPCC (1996)
reduce GHG, and provide information that inventories or the UNEP (2002) Indicator.
compliments other climate initiatives, and
reporting and financial standards. This Protocol The secondary data at macro level are
also introduces operational boundaries that national annual production for the sector,
account for direct and indirect GHG emissions which can be obtained from national
and allows the treatment of other indirect statistics. These production data often
emissions. It aims to: include production from large industries. In
• account direct GHG emissions from sources this case it is necessary to identify the share
that are owned or controlled by the reporting of SMIs in national production. National
energy-related data such as annual fuel
• account for indirect emissions associated
consumption of the power sector, electricity
with the generation of imported/purchased
generation and efficiency of power
electricity, heat or steam
transmission and distribution are required to
• allow treatment of other indirect emissions
calculate the country specific emission factors
that are a consequence of the activities of
for electricity.
the reporting company, but occur from
sources owned or controlled by another
entity (e.g. emplemployee business travel,
commuting, and outsourced activities).

Source: Adapted from WBCSD/WRI 2004

10 Chapter 2
GHG Emission Estimation Methodology for SMI

Figure 2.1 Framework of SMI sector GHG emission estimation and mitigation measure

Figure 2.2 Data collection procedure

Chapter 2 11
Greenhouse Gas Mitigation
2.3.2. Planning for a GHG inventory

The demarcation of sources of emissions is for raw material/fuel production and
important in a GHG emission estimation. transportation, travel by employees and
Figure 2.3 shows typical sources of emissions logistics related to finished products also
from SMIs. CO2 is the main emission and is cause emissions. Therefore, before beginning
mainly due to energy use, some of which the estimate, the boundary of an emission
occurs on the SMI premises. For example, source should be clearly defined. To identify
fuel consumption, like coal, oil, firewood and the detailed emission sources, each unit
gas cause direct emissions. Other direct operation and production process needs to
emission sources include production be studied. An energy balance will clearly
processes. Indirect emissions occur outside show the amount of energy consumption by
the SMI premises but these are due to each category. For this study, CO 2 was
secondary energy use and wastewater considered the only GHG emission. Other
treatment. For example, electricity use causes gases were ignored because of their
CO2 emissions depending on the source of uncertainties or their insignificant
power generation but occurs on the utility contribution to the total GHG emission
premises. Other activities such as energy use figure.

Figure 2.3 Potential sources of GHG emissions from an SMI

12 Chapter 2
GHG Emission Estimation Methodology for SMI

Figure 2.4 Procedure for a plant level and SMI sector CO2 emission estimation

Chapter 2 13
GHG Emission Estimation Methodology for SMI

(2.3) • Specific emissions per energy use
(kg-CO2/kWh or kg-CO2/MJ)

(2.4) • Specific emissions per product value
where F e is annual fuel consumed for
In terms of production value, the plant level
electricity generation and E is annual
SEF can be calculated from the total GHG
electricity generation in the country.
emissions and total production, given by
Equation 2.6.
3. Emissions related to transportation
activities can be estimated using Equation
2.5 (IPCC, 1996). (2.6)

(2.5) SMIs sector level

The national weighted average SEF is calcu-
where EF is the emission factor of
abc lated from the sample of audited factories.
transportation for fuel type ‘a’, vehicle type From the SEF of individual SMIs, i.e. plant
‘b’ and type of emissions control ‘c’. EF abc level SEF, a weighted average SEF is estab-
values are available in IPCC (1996). lished using Equation 2.7.
Activity is the amount of energy consumed

or distance travelled for a given mobile
source activity.
4. The sum of the emissions from all the
above sources i.e. from fuel and electricity
use and transportation, is calculated as the
total GHG emission of the sample SMI. The weighted average SEF is calculated to
From the total GHG emissions at the plant avoid any large variation observed among
level, the following specific emission individual SMIs. This aggregate value has to
indicators can be estimated and used to be subjected to an uncertainty analysis so
compare the emission intensity among SMIs that the tolerance of accuracy can be
or at the country or regional level. This can estimated.
be done in terms of product unit, employee,
energy use and product value: GHG emissions from the SMI sector are
extrapolated by multiplying the weighted
• Specific emissions per unit product average SEF, total national production and
output (kg-CO2/kg of product or the share of SMI production, given by
kg-CO2/piece) Equation 2.8.
• Specific emissions per employee

Chapter 2 15
Greenhouse Gas Mitigation

SMI sector GHG emission = estimates can be due to systemic errors or
inherent errors or a combination of both.
SEF Average
x National total production
x Share of SMI’s production Systemic uncertainty results from choices
such as:
SEF Average
x National total production
x Share of SMI’s production (2.8) • Use of factors that are poorly researched
and uncertain;
• Use of average case factors not
A sample calculation of CO2 emissions from perfectly matched to specific and
the sample of SMIs, weighted average SEF varying circumstances (e.g. average
and sector CO2 emissions for the Indian textile km/litre, average kg CO2/MWh
sector are shown in Appendix C. generated);
• Deliberate estimation to compensate
for missing data (e.g. non-
2.3.4. Uncertainty reporting facilities, or missing fuel
bills); and
Calculating the range, confidence interval or • Assumptions that simplify calculation
other limitations of the estimated emissions of emissions from highly complex
are important in assessing their uncertainty processes.
levels. However, these statistics are not
complete measures of quality because there Inherent uncertainty results from random
may be systematic errors (biases) associated errors such as imprecise measurement of
with the emissions estimates that are not emissions-producing activity, insufficient
bounded by the range or confidence intervals. frequency of measurement, omissions and to
In addition, uncertainty is due to many errors of calculation.
causes, one of which is the inherent
variability in the process or processes that The process of estimating uncertainties in
cause the emissions. Even if all other sources GHG inventories is based on certain
of uncertainty are taken into consideration, characteristics of the variable of interest
this variability remains. As some processes (input quantity) as estimated from its
are more variable than others, some always corresponding data set. The ideal information
have larger error bounds than others. Such includes:
estimates are not of lower quality nor do they
indicate less confidence in the ability to • The arithmetic mean (mean) of the data
predict emissions at a particular point in time set
but do indicate that it is possible to • The standard deviation of the data set (the
confidently predict a range (EPA, 1996). square root of the variance)
• The standard deviation of the mean (the
The first step towards characterizing standard error of the mean)
uncertainty associated with emissions data • The probability distribution of the data
is to understand and quantify the different • Covariance of the input quantity with
sources of variability and inaccuracies in the other quantities used in the inventory
data being used. Uncertainty in emission calculations

16 Chapter 2
GHG Emission Estimation Methodology for SMI
To estimate uncertainty by source categories 2.3.5. Options for GHG emission mitigation
and gases for sector emission estimations, it
is necessary to develop information specific After planning, performing and checking the
to the individual industrial sector in a country GHG emission estimate, a baseline for each
and the methodology and data sources used. sector is established. The next step is to
In scientific and process control literature, a identify options for GHG emission mitigation
confidence limit of 95% (±2) ± is often and to estimate its potential. For this study,
regarded as appropriate for range definition. the following four instruments were selected
Where there is sufficient information to to perform GHG mitigation scenarios:
define the underlying probability distribution
for conventional statistical analysis, a 95% 1. Enhanced Operation & Maintenance
confidence interval should be calculated as practices (O&M): SMIs generally lack good
a definition of the range. Uncertainty ranges O&M practices. Therefore, improving their
can be estimated using classical analysis or O&M could lead to energy savings and
the Monte Carlo technique. Otherwise the emissions reductions.
ranges have to be assessed by local experts
in the study countries. The following 2. Adoption of E3STs: SMIs are using
Equation (2.9) shows how to calculate the outdated technologies, which consume more
overall uncertainty (UT) using the individual energy. Implementation of E3STs could
uncertainties of emission factors (UE ) and reduce energy use and thereby reduce
socio-economic activity data (UA). emissions.

3. Fuel switching: Changing from high
U T = ± (U E + U A ) ; s
2 2

(2.9) carbon intensive fuel to low carbon fuel or
use of renewable energy sources also reduces
so long as U E , U A < 60%
fossil energy use and GHG emissions.

For individual uncertainties greater than 60%, 4. Policy inter vention: For effective
the sum of squares procedure is not valid. implementation and the success of any
Therefore, limiting values can be combined emission reduction measure, a supportive
to define an overall range, although this leads policy is crucial. Appropriate policy is an
to upper and lower limiting values which are important part of any GHG emission
asymmetrical about the central estimate mitigation campaign.
(IPCC, 1996). A detailed analysis of
uncertainties for the selected SMI sector is
presented in Chapter 3.

Chapter 2 17
GHG Emissions from SMI Sector

Chapter 3
GHG Emissions
from SMI Sector

3.1. Introduction 3.2. Data collection

This chapter describes the estimation of As described in Section 2.3.1, the primary
GHG emissions from selected SMI sectors and secondary level data were collected from
in five countries. The uncertainties involved various sources. Table 3.2 summarises the
in the estimations are also discussed. The annual production and number of employees
five SMI sectors selected for the estimation engaged in the selected manufacturing
of GHG emissions are shown in Table 3.1. sectors. Brick production in China is seven
fold higher than in India. In the foundry
sector, the total production in China is six
times higher than that in India, but China
employs only half the workforce of India.

Chapter 3 19
Greenhouse Gas Mitigation
In the tea sector, Sri Lanka produces two- 3.3. Emission Boundaries and
fifths the amount of tea produced in India, Assumptions
but employs nearly as many people.
To estimate CO2 emissions, the source of the
The share of SMI production in total national emission boundary was selected in such a way
production is shown in Table 3.3. In the as to account for all major sources of
selected industrial sectors, SMIs account for emissions from an SMI. Figure 3.1 illustrates
85% of manufacturing establishments: about the boundaries of emission sources. Fuel and
24,000 foundries and 95,000 brick kilns in electricity use were considered the main
China; up to 10,000 foundries in India and sources of emissions and were included in
nearly 1,300 brick factories in Vietnam. In the boundary. CO2 emissions from biomass,
total national production, SMI production e.g. firewood, raw materials transportation
accounts for 60-100% depending on the and employee travel, were generally not
sector and country. In the tea sector in India included. However, in sectors where use of
and Sri Lanka, almost all tea is produced by firewood was accounted for it has been
SMIs. In the foundry sector in India and the specified explicitly. Upstream processes and
Philippines, over 80-90% of the products are transportation of fuels were not included in
from SMIs, while this figure is about 63% in the boundary. Process-related emissions were
China. Similarly, in the brick, tile and ceramic also ignored due to their insignificant
sector, over 90% of the products are magnitudes. A detailed boundary of
produced from SMIs.

20 Chapter 3
GHG Emissions from SMI Sector

production processes in the studied SMI • although they are from a small sample
sector is illustrated in each sector emission of SMIs (3 foundries in the Philippines
estimate. or 3 brick factories in Vietnam) they
are assumed to be representative of the
The following general assumptions are made whole sector in the region (see also the
in the estimation of sector CO2 emissions: sensitivity analysis in Section 3.6)
• emissions are estimated for the year
2000 A few other sector specific assumptions are
• the SEF was based on the audited sample described in Sections 3.3.1 to 3.3.5.
of SMIs (Table 3.4)

Figure 3.1 Boundary of CO2 emission sources considered

Chapter 3 21
Greenhouse Gas Mitigation
3.4. GHG Emission Estimation converted into their primary energy using the
net calorific values of fuels.
3.4.1. SEF at plant level From the specific fuel and electricity con-
sumption data, CO2 emissions are estimated
The primary data were collected from samples using the methodology described in Chapter
of SMIs through energy and environment 2 Section 2.3. Country specific emission fac-
audits. Table 3.4 shows the number of tors and fuel heating values were employed
sample SMIs audited in the selected when available. When not available, default
countries. From these audits, the average values from IPCC (1996) were used. The

specific fuel consumption data were esti- specific CO2 emission factors were estimated
mated and are summarized in Table 3.5. in terms of unit product outputs, number of
There is a great diversity in fuel use among employees and energy consumption. A cross-
the selected countries and this indicates their country comparison of selected SEFs is sum-
technology use. For example, coal and coke marized in Table 3.7.
in the foundry sector in China, India and
Philippines account for 60-70% of total From Table 3.7, it can be interpreted that:
energy consumption. This indicates that
cupola furnaces are predominantly used in . The Chinese foundry sector is
this sector. Similarly, diesel consumption in generating higher specific CO2 emissions
India and the Philippines indicates the use than in India and the Philippines. This is
of diesel rotary furnaces. When comparing mainly due to the cupola furnaces used in
the brick and tile sector of Sri Lanka and Chinese foundries, which have a lower
Vietnam, the differences are wide, as biomass thermal efficiency compared to electric
(firewood) is mainly used in Sri Lanka. furnaces, and thus burn more fuel to
produce higher amounts of CO2. The CO2
Based on the average specific fuel emission estimate is from a relatively large
consumption from each country, a range of sample of SMIs (see Table 3.4) and more
sector-specific fuel consumption rates were than 80% of products are processed by
established and are shown in Table 3.6. To coal/coke-fired cupola furnaces (Daben,
calculate the CO 2 emissions, these were 2002). The other SEFs based on energy
use and employees per capita have the

22 Chapter 3
GHG Emissions from SMI Sector

same pattern, but are less comparable with energy use in Sri Lanka’s tile industry is
India. from firewood (see Table 3.5) for which
. In the brick and tile industry, Sri Lanka’s specific CO 2 emissions are high (see
Appendix B).
SEF per unit product output and
electricity are significantly high when . In the tea sector, India recorded lower
compared to China and Vietnam. This is specific CO2 emissions of 2.43 kg-CO2/
probably because more than 95% of kg of processed tea, which is 14% less

Chapter 3 23
Greenhouse Gas Mitigation
than in Sri Lanka. This is principally due be considered a benchmark for energy use
to the low specific energy consumption and CO2 emissions in the tea sector.
in Indian tea factories. Energy and
environmental audit data from tea 3.4.2. SMI sector GHG emissions
factories revealed that energy efficiency
in the tea industry is generally low mainly Using the weighted average SEF (Table 3.7),
because of they use old equipment and national total production (Table 3.2) and the
outdated technologies. There is wide share of SMI production (Table 3.3), total
variation in the specific energy SMI sector CO2 emissions were estimated.
consumption ranging between 4 and 18 Based on the analysis, the sector annual
kWh/kg of tea. As far as sources of production data are more reliable and
emissions are concerned, fuel wood and therefore, the reliability of the SMI sector
coal are the major fuels used in the tea emission estimations depends on the
sector. India and Sri Lanka are the two weighted average SEF. Estimates are
largest tea producers with nearly similar presented in the following sub-sections. A
production processes (AIT, 2002c). detailed calculation of plant and SMI sector
Therefore, the lower value in India could level emissions for the Indian textile sector
is in Appendix C.

24 Chapter 3
GHG Emissions from SMI Sector Foundry sector Brick, tile and ceramic sector

Figure 3.2 shows the boundaries of processes Figure 3.3 shows the boundary of the
included in the estimation of energy use in a processes included in the estimation of
foundry. For national annual production, cast energy use in the brick sector. In Sri Lanka,
iron, cast steel and non-ferrous are tiles and bricks are considered similar
considered together even though their SEC products and piece-to-weight conversion
varies. Using the weighted SEF, the annual factors of 1.05-1.25 kg/piece for brick and
CO2 emissions from the foundry sector is 2.0-2.2 kg/piece for tile are used. For India,
estimated and is shown in Table 3.8. a conversion factor of 2.25-2.5 kg per brick

Chapter 3 25
Greenhouse Gas Mitigation

Figure 3.2 Foundry production processes

was used. Estimated sector CO2 emissions
in these countries are given in Table 3.9.

It is difficult to compare the energy efficiency
of brick making in the study countries due
to the variations in product type and quality.
The brick sector is an energy-consuming
sector in China, India and Vietnam. In 2000,
the total primary energy consumption in this
sector was more than 406,835 million kWh
in China and about 487.6 million kWh in
Finished foundry products, India

26 Chapter 3
GHG Emissions from SMI Sector

Vietnam. Thermal and electric energy is used
in SMI brick factories with coal and coke as
the major fuels in the study countries. CO2
emissions were found to be very high in the
brick sector in China and India compared to
other countries. Since drying and firing
processes are done using annular and tunnel
kilns with low fuel efficiencies, CO2 emissions
from this sector are high. For the tile sector
in Sri Lanka, firewood is the major source of
fuel contributing to direct GHG emissions.

Garg (2002) estimated that total industrial
CO2 emissions in India in 2000 were about
267 million tonnes, of which the brick sector
accounted for 6%. This works out to be 16 Figure 3.3 Brick making production processes
million tonnes compared to 37 million tonnes
estimated in this study. The details of the
estimation by Garg (2002) are not available. Desiccated coconut sector

The desiccated coconut sector is an
important foreign exchange earner in Sri
Lanka and accounts for 40% of all coconut
products. This sector mainly uses firewood
for boilers which have a specific energy
consumption ranging from 3.5-6.5 kWh/kg
of desiccated coconut. Figure 3.4 shows the Brick kiln, Vietnam
boundary of the processes considered in the
desiccated coconut sector. The CO2 emissions
from firewood combustion are higher due to

Chapter 3 27
Greenhouse Gas Mitigation
low boiler efficiency and high losses
during the drying process. The GHG
emission estimation from the Sri Lankan
desiccated coconut sector is shown in
Table 3.10. Tea sector

Figure 3.5 shows the boundary of the
processes considered in the tea sector
emission estimation. Tea produced from
CTC and Orthodox processes are
considered to have similar energy
consumption rates although they vary
slightly. Emissions from firewood use
is included in Sri Lankan estimates. The
CO 2 emissions for the tea sector is
estimated and shown in Table 3.11. The
annual emissions from the Indian tea
sector are estimated to be about two
million tonnes and 0.85 million tonnes
Figure 3.4 Desiccated coconut production process
in Sri Lanka. Textile sector

The textile industry is an energy
intensive industry. It accounts for about
9-10% of the industrial energy use in
India and for 20% of the total
production cost. Figure 3.6 shows the
boundary of the processes included in
the estimation of CO2 emissions. CO2 Deshelling process in a desiccated coconut mill, Sri Lanka
emissions from biomass (firewood) fuel
combustion are included in the emission
inventories. The entire output of the
textile sector was assumed to be from
semi-modern mills. In dyeing and

28 Chapter 3
GHG Emissions from SMI Sector
study countries due to the high production

Figure 3.5 Processes in tea production

printing, the estimation was done by assum-
ing that some percentage of output from
knitting and weaving were processed for dye-
ing and printing. CO2 emissions for the In-
dian textile sector are presented in Table 3.12.
This sector has many sub-sectors such as
spinning, weaving and dyeing. Emissions
from textile sub-sectors are shown in Figure Figure 3.6 Textile processing in India
3.7. It is estimated that spinning and weav-
ing account for about 80% of the total emis-
sions. Summary of SMI sector emissions

SMI sector CO2 emissions are summarized in
Table 3.13. Among the selected sectors, the
highest contributors are the brick sector in
China and India, and the tea sector in Sri
Lanka. At the country level, China and India
dominate in GHG emissions in foundries,
bricks and tea. Total CO2 emissions from
foundries and brick and tile industries in
China are many times higher than in other
Figure 3.7 CO2 emissions in Indian textile sub-sectors

Chapter 3 29
Greenhouse Gas Mitigation

The induction furnace (56%) in India, cupola The results obtained from this study indicate
furnace (80%) in China, traditional brick kiln that efforts to reduce GHG emissions should
(78.6%) in Vietnam and annular brick kiln target the brick sector in China, brick and
(90%) in China are major contributors to the textile sectors in India, and the tea sector in
total emission figures. Sri Lanka.

Although the SEF for the tea sector in India Appendix D summarise the details of GHG
is lower than in Sri Lanka, the Indian total is emissions in 1994 from the five countries
double because of higher annual production based on their reports to the UNFCCC. In
- about 2.7 times higher than Sri Lanka. China, energy related CO2 emissions in 1994
were 2,795 million tonnes (NATCOM-China,

30 Chapter 3
GHG Emissions from SMI Sector
2004). Emissions from the brick and tile and scenario. When there is a benchmark it is
foundry sectors were estimated in this study always possible to set targets for energy sav-
at about 214 million tonnes in 2000. ings and emission reductions.
In India, CO2 emissions associated with in-
dustrial energy use in 1994 were 149 million Based on the energy audits carried out for
tonnes, while those from electricity genera- this study, a range of specific energy
tion (energy and transformation industries) consumption (SEC) values have been
were 353 million tonnes (NATCOM-India, identified and compiled as benchmark values.
2004). For the year 2000, CO 2 emissions A summary of benchmark values is given in
from foundries, bricks, tea and textiles were Table 3.14. They are presented in
estimated at 57.53 million tonnes. conventional units so that SMI managers and
policy makers can quickly compare with their
In the Philippines, emissions from the own data and compare their energy
foundry sector were estimated at 0.24 million performance. From the literature, SEC data
t-CO 2. Philippines total energy related for developing and developed countries have
emissions from industrial and power sectors also been compiled and presented in Table
were about 9.5 and 15.5 million t-CO2 in 1994 3.14.
(NATCOM-Philippines, 1999).
Table 3.14 shows a gap between the SEC of
In Sri Lanka, the energy related CO 2 the study countries and the literature,
emissions in 1994 were 5.45 million tonnes although the values depend on the production
(NATCOM-Sri Lanka, 2000). This study processes, technologies, O&M practices and
estimates CO 2 emissions from the tea, fuel mix. This gap can be used as a bottom
desiccated coconut and brick and tile sectors line for setting up emission mitigation targets
at 0.9 million tonnes. and possible CO2 reduction potentials can be
In Vietnam, the industrial and construction
sectors produced 7.7 million t-CO2 in 1994, Table 3.15 compares the ranges of specific
while power generation was 4.4 million t-CO2 CO2 emissions of selected countries and in
(NATCOM-Vietnam, 2003). This study the literature. Ranges indicate the emissions
estimates CO2 emissions from the brick sector are on par with values reported in the
at 1.8 million tonnes for 2000. literature.

3.5. Benchmarking Energy Use and 3.6. Uncertainty Analysis
Emissions for SMIs
Estimation of CO2 emissions are fraught with
Benchmarking refers to the collection, uncertainties due to many factors. These
analysis and reporting of energy data for include production processes, variations in
assessing comparative energy efficiencies. It the technology used, fuel mix, and
helps identify deficiencies and better measurement of data reliability of sample
practices. Therefore, benchmarking energy SEFs. Therefore, an uncertainty analysis of
consumption should be considered the the estimated CO2 emissions is necessary to
bottom line for any emission reduction ensure reliability. Total uncertainty (UT) is

Chapter 3 31
Greenhouse Gas Mitigation

32 Chapter 3
GHG Emissions from SMI Sector
estimated using a database on uncertainties emit CO2 in the firing process. However, be-
of emission factors (UE) and socio-economic cause of differences in carbon content, their
activity data (UA), which is judged by national net calorific values and carbon emissions fac-
experts. However, since the database is tors are not noted in IPCC Guidelines. As a
currently not available in the study countries, result, the CO2 emissions resulting from sin-
the range of total uncertainty was assessed tering gangue and fly ash are not included in
beforehand by national experts as indicated the calculations. The type of product can
in Table 3.15. In China, the total uncertainty greatly influence the CO2 emissions if spe-
is estimated at ±20% in the foundry sector, cific energy consumption rates are different.
with information from many sample factories. For example, in the foundry sector, coal con-
sumption for cast steel and cast iron are 162
In Sri Lanka, the total uncertainty is set at kg/tonnes and 408 kg/tonnes respectively.
±10-20% for the three studied SMIs. By
taking into consideration the number of units Technologies employed in the process also
in each sector, variations in processes, influence the amount of CO 2 emissions,
managerial practices, manpower skills and which sometimes depend on the factory. In
competence levels and, more importantly, general, the energy consumption of an
the degree of accuracy of record keeping, the electric furnace per tonne of casting (1800-
uncertainty factor has been estimated as 2350 MJ/tonne) is about two times lower
given in Table 3.16. than a conventional cupola furnace (4800
MJ/tonne), but the energy consumption of
Some factors are recognized as main causes the modern cokeless cupola (2540 MJ/tonne)
of uncertainty. These are: can nearly reach the levels of an electric
furnace. The capacity of a cupola furnace also
• National carbon emission factors (CEF) influences CO2 emissions, as a larger cupola
and fractions of oxidized (fo) fuels may be emits less CO2 per product or product value.
different from the default values of IPCC.
This was considered in the study, particularly Fuel mix, which depends on fuel availability
for China. and price, also contributes to variations in
emission estimations. For example, in
• Special energy use, such as renewables, Vietnam, most brick kilns in the north use
may not be considered as some factories use coke/anthracite as the main fuel, while
hydro, wind or solar energy that does not firewood and biomass are mostly used in the
emit CO2. When collecting data at the plant south. In this case, the uncertainty of the
level, these energy forms may not be emission estimation is evaluated as high and
considered, and thus result in imprecision more factories should be surveyed for better
from factory to sector levels. results.

• Use of special materials such as recyclableSome regions in which the production of
materials may not be considered. electricity is mainly based on hydropower or
other forms of energy that do not cause CO2
For example, resource conservation is highly emissions can result in overestimations of the
promoted in the brick sector in China, where sector emissions.
sintering gangue and fly ash are reused and

Chapter 3 33
Greenhouse Gas Mitigation
Thus, uncertainties vary considerably de- 3.7. Summary
pending on the local conditions. One way of
reducing uncertainty is by increasing the This chapter provided an overview of the
sample size. sector emissions in the selected countries.
Although some estimates are not exact, they
Based on the total uncertainties evaluated by provide “ballpark” emission values which can
local experts in China, India and Sri Lanka be used in policy and decision-making to
(Table 3.16), the total estimation of CO2 decide on future courses of action in GHG
emissions by some SMIs (Table 3.13) can be mitigation measures. A number of mitigation
expressed in terms of total emissions ± ±E, scenarios are discussed in the next chapter.
where E is total uncertainty in emission units
(not a percentage). Figure 3.8 illustrates the
uncertainty in CO 2 emissions from the
selected SMI sectors.

Therefore, estimates of uncertainty in
emission factor activity data need to be based
on expert judgments when empirical data are
lacking. It is important to select appropriate
experts with respect to the emissions
inventory inputs for which uncertainty
estimates are needed.

34 Chapter 3
GHG Emissions from SMI Sector

000 t-CO 2

S ri Lanka

S ri Lanka

S ri Lanka

P hilippines


Figure 3.8 SMI sector CO2 emissions and their ranges of uncertainty

Chapter 3 35
GHG Emission Mitigation Scenarios

Chapter 4
GHG Emission

This chapter discusses the results obtained implementing a particular measure.
from the earlier estimations of GHG Therefore, to assess the results of the
emissions from the various SMI sectors scenarios in each country and to quantify the
through scenario analysis. Four instruments emission reduction options, CO2 emission
were considered and the mitigation that could reduction potentials were calculated for 10%,
result from each of the various scenarios is 30%, 50%, 70% and 90% implementation
presented. for the above four instruments. The following
sections describe these scenarios.
4.1. Emission Reduction Scenarios
4.2. Emission Reduction through
Several GHG emission reduction scenarios Enhanced O&M
were studied based on the following
instruments: In general, SMIs lack good O&M and
housekeeping practices. Even when they
1. Enhanced operation and maintenance employ qualified personnel, good O&M and
2. Adoption of E3STs housekeeping practices are not generally
3. Fuel switching implemented due to a number of barriers.
4. Policy intervention Enhancing O&M is one of the important
measures that could help reduce energy use
The effectiveness of these instruments will and GHG emissions from SMIs. Potential
vary within the selected country when areas to improve O&M and housekeeping

Chapter 4 37
Greenhouse Gas Mitigation
practices in the selected SMI sectors include,
but are not limited to: Box 4.1
• preventive maintenance, e.g. on electrical Efficiency improvement in air heaters
motors and boilers
• improving thermal efficiencies, e.g. in Tea drying is an energy intensive process. A
boilers, furnace, driers considerable amount of moisture needs to be
• retrofitting, e.g. employing better removed from freshly harvested leaves using
hot air at 100 -120°C. Hot air can be obtained
insulation and prevention of leaks of hot from flue gas or from burning firewood and the
air, steam efficiency of the air heater and drier has a direct
• providing information and awareness to bearing on overall fuel consumption and
workers and employees consequent CO2 emission rate. The higher the
efficiency of the air heater, the less fuel used
and hence reduced GHG emissions.
Specific activities for enhanced O&M include
cleaning and lubricating electric motors, The unit in this example manufactures about
repair of insulation materials, reducing waste, 5,000 kg of tea per day. It requires 150 kg/h of
reuse of materials and waste heat, minimizing firewood to produce air at 100°C at a flow rate
leaks, loading ovens and furnaces to their full of 13,000 cfm.The heat capacity of the heater
is 0.6 million kcal/h.
rated capacity, uniform feeding of firewood,
uniform size of firewood, and periodic Considerable heat loss from the chimney was
cleaning of heater tubes. Implementing these observed. CO2 was found to be 3% in the flue
O&M options would help reduce fuel and gas indicating excess air of about 500-600%.
electricity consumption and thereby CO2 The furnace was operated by an induced draft
fan with full damper opening. Leaks through
emissions. The reduction could be significant valves and openings in the heater caused high
as there is little or no initial investment cost heat lost. The damper was adjusted to reduce
incurred. the flow and resulted in a marginal
improvement in the amount of CO2 emitted.
From the energy and environment audits and
When a forced draft fan was introduced and
other case studies on energy efficiency, furnace pressure was adjusted, CO2 in the flue
implementation of good housekeeping gas was 18%. This decreased firewood
practices is expected to result in 5-25% consumption to 100 kg/h. This substantial
reduction in total energy consumption and decrease through controlling the excess air
emissions depending on the current energy could save 33% on fuel consumption with no
additional investment.
consumption in factories. Enhancing
awareness of technicians and operators
usually leads to a 5-10% reduction in fuel
consumption. Box 4.1 shows an example that
highlights the potential for energy efficiency
improvement in the tea processing sector.

Table 4.1 shows several emission reduction
scenarios based on good housekeeping prac-
tices. The potential for achieving emission
reductions with small investments are shown
in bold and are based on inputs from experts.

38 Chapter 4
GHG Emission Mitigation Scenarios

4.3. Emission Reduction through
Adoption of E3STs

Many E3STs have been identified that can Use of direct-fired heater systems in the
be economically implemented to reduce conventional dryer is also ideal for the FBD
energy use and emissions. Several are dryer. The limitation is that it can use only
discussed in the following sub-sections. clean fuels such as low sulphur diesel or LPG.
Other technologies, such as design
4.3.1. Tea sector modifications in air heater-cum-dryers, and
two stage motors for weathering trough fans
In the tea industry in India and Sri Lanka, would also help reduce GHG emissions.
many orthodox tea producers still use the
conventional dryer because it can be used to
dry both CTC and orthodox tea. Replacement
of the conventional dryer by energy efficient
fluidized bed dryers (FBD) or the combined
dryer (tempest) requires a high capital
investment. Tempest dryers are used in India
and Sri Lanka due to their higher production
and energy efficiency. A GHG emission
scenario quantified the potential for emission Figure 4.1 Emission reductions using fluidized bed drier
reductions if the conventional driers were
replaced with FBDs. The results are shown
in Figure 4.1.

Chapter 4 39
Greenhouse Gas Mitigation
4.3.2. Textile sector • variable frequency drives at a low initial
investment cost for improving energy
In the Indian textile sector the soft-flow efficiency and air-to-fuel ratio
dyeing machine is energy efficient and a
highly economical method for fabric dyeing.
It reduces GHG emissions in a cost effective Box 4.2
manner. Soft-flow dyeing and fluidized bed Energy saver for weaving sector
combustion boilers in Tirupur, one of the of composite mills by Bombay Textile
major textile clusters in South India, could Research Association (BTRA)
save annually about 0.566 million t-CO 2
which is about 3% of the CO2 emissions. The average electric power consumption in
Another technology option is the installation composite mills is around 23 kWh/loom shift.
of photocells for speed frames. Installation That works out to be Rs 276 (6.27 USD) per
day/loom. Of the total power consumed, 22-
of a soft starter-cum-energy saver in the
25% is used for weaving alone. For economy
simplex frames and use of energy efficient in weaving, there is an urgent need to reduce
pneumafil fans in spinning mills requires a the power consumption and hence the cost. It
small investment. An example of the has been observed that at every warp/weft
application of an indigenously developed break/mechanical stop, loom oiling and
cleaning work, the loom is stopped while the
E3ST implemented in a textile mill in India
electric motor runs idle.
is given in Box 4.2. Locomotive boilers are
also being used in the textile sector with an Considering the average time an automatic
shuttle loom is in use is 75%, the remaining
efficiency of about 20% and can be replaced 25% of the time attending to faults is wasted
with energy efficient boilers. energy. Bombay Textile Research Association
(BTRA) has developed an ‘Energy Saver’, for
shuttle looms that is handy, portable and
4.3.3. Foundry sector compact; safe to handle; easy to fix over the
loom; and free of maintenance. The techno-
One technological option is the improvement economic benefits are as follows:
of energy efficiency in heat treatment systems
and electric motors, which would reduce
annually about 8,700-51,800 t-CO2. The
cost of implementing these environmental
friendly options ranges from:

• a high initial investment cost for the
installation of waste heat recovery
• replacement of main frequency induction
furnaces with medium frequency furnaces
• replacement of the conventional cupola
with a cokeless cupola
• use of Automatic Star-Delta converters
for lightly loaded motors

40 Chapter 4
GHG Emission Mitigation Scenarios
4.3.4. Brick sector 4.4. Emission Reduction from Fuel
In the brick and tile sector, use of autoclaved
aerated concrete blocks for kiln walls, Fuel switching is another option for reducing
replacement of traditional kilns with vertical CO2 emissions. In the study countries, high
continuous kilns, use of kilns with ceramic GHG emissions are also due to the use of
wool insulation, and introduction of carbon intensive fuels. The cupola furnace
thermometers have shown CO 2 emission is the most common type of melting furnace
reductions. These technologies require a used for the production of castings in the
small investment and can result in large foundry sector (Pal et al., 2003). This sector
economic benefits. uses coal and coke as the major fuels. In the
tea and textile sectors in India, coal and
firewood are the major fuels used in the
furnaces and boilers. In the brick sector, coal
and coke are the major fuels consumed in
China and Vietnam. Firewood is mostly used
in tea, desiccated coconut and tile sectors
in Sri Lanka. Alternative fuels with a low
carbon content would help reduce emissions.
Among all fossil fuels, natural gas has the
lowest CO2 emission rates per unit energy
output (g-C/MJ) as can be seen in Appendix
B. Switching to fuels with a lower carbon-
to-hydrogen ratio, such as wood/coal to oil/
natural gas or oil to natural gas can reduce
In China, only about 0.6% of brick kiln walls GHG emissions in a cost effective manner.
are lined with autoclaved aerated concrete An example of fuel switching from coal/
blocks. A reduction scenario considered the firewood to LPG in a ceramic factory in
increased use of autoclaved aerated concrete Vietnam is described in Box 4.3. The
blocks with the resulting emission reductions opportunities for fuel switching are,
shown in Table 4.2. An annual emissions however, limited by geographic and market
reduction potential of about one million t- availability of alternative fuels and by cost.
CO2 could be achieved. Coal is the major source of energy in most
of the countries. In India, coal and natural
4.3.5. Scenario summary gas are abundantly available but the
changeover depends on other factors such
The GHG emission mitigation scenarios in as government policy, price advantages and
the selected SMI sectors and CO2 reduction the availability of alternative fuels.
potentials have been analysed and the results
presented in Table 4.3.

Chapter 4 41
Greenhouse Gas Mitigation

42 Chapter 4
GHG Emission Mitigation Scenarios
4.4.1. Natural gas
Box 4.3

Application of fibre lined kiln and LPG In Sri Lanka, due to the total reliance on
in ceramic industry in Bat Trang, imported fossil fuels, switching to fuels like
Vietnam coal and natural gas may not be feasible.
Furthermore, switching to coal would result
Bat Trang ceramic village of Vietnam has more
than 1,000 enterprises involved in ceramic in other environmental difficulties while for
production and export. It has more than 1,400 natural gas the required infrastructure does
coal-fired ceramic kilns. Introduction of fibre- not exist at present. Under these
lined kilns and LPG as fuel in 1999 has circumstances, there are initiatives to use
revolutionized the energy consumption pattern commercially grown wood as an alternative
in the sector.
to jungle, forest and rubber wood and other
Comparison of energy consumption and fossil fuels (Dendro power). In terms of
emission in fibre-lined versus traditional
GHG emission reductions, this is considered
to be the best option as the net emission
Energy Unit Fibre lined Coal effect is zero. However, there are constraints
Power KWh/m3 0.2 0.5 both on the supply and demand side of
Gas Kg/m3 25.7 - commercially or sustainably grown wood.
Coal Kg/m3 - 560
Potential growers are worried about the lack
Firewood Kg/m3 - 37
CO2 Kg/m3 - 1,168.6 of demand from the industry and this could
lead to price instabilities. On the other hand,
During the baking process, temperatures as industries are reluctant to invest in the
high as 1,000°C are produced and in the required technology changes due to fear of
process of firing the traditional kilns, a large
facing a short supply situation and price
amount of heat dissipates to the baking bags
and kiln walls and is lost through the exhaust escalation in the future due to the anticipated
gases. The space requirement is larger, the high demand.
working condition is poorer and the volume of
product rejects is higher. The large volume In foundries, switching to low carbon fuels
emissions from coal and wood have decreased
such as furnace oil or natural gas can mitigate
significantly by the use of fibre-lined kilns which
reduces the dissipation of heat from the kiln GHG emissions in a cost effective manner
walls and with waste gases. The use of (Box 4.4). However, this may not be possible
cleaner, more energy efficient fuel would in cupola furnaces because fuels other than
mitigate GHG emissions from the ceramic coke cannot be used. A better option is to
industry, enable a better working environment,
change from conventional coke-fired cupolas
require less space for installation, shorter
baking time, uniform heating and lower to cokeless cupolas in which oil and gas can
production costs. The fibre-lined LPG kiln is be used. If the cokeless cupola operates on
known to save 30-50% energy and energy cleaner fuel, the flue gas would be fairly
costs per batch of firing. It not only increases clean.
ceramic production but decreases energy
consumption and thereby minimizes the
emission. The investment for a 6 m3 fibre-lined While there are many factors that affect fuel
kiln is 1,900 USD with a payback period of 1- switching options, it remains one of the best
3 years based on savings on energy (coal, options for GHG emission mitigation. The
firewood and electricity). estimated emission reductions due to fuel
switching in selected industrial sectors in all

Chapter 4 43
Greenhouse Gas Mitigation
the participating countries is given in Table UNFCCC, 2002). Minimizing greenhouse gas
4.4. Replacing 50% of the coke used in the emissions will require policymakers to take
Chinese foundry sector with natural gas concrete decisions every time a subsidy is
would reduce annually about two million t- added or removed or a regulation or reform
CO2. In the Indian tea sector, using fuel oil is put in place. Even though the economy as
to replace 30% of the firewood would reduce a whole stands to benefit from well-designed,
CO2 emissions by 0.17 million tonnes. In Sri market oriented policies for reducing
Lanka, if 50% of the fuel oil were to be emissions, action or inaction by government
replaced with commercially grown fuel wood invariably creates winners and losers in the
in 10% of the desiccated coconut factories, marketplace (UNEP/UNFCCC, 2002).
this would have an emission reduction
potential of about 1,700 t-CO2. In this study, a policy scenario for the
Philippines metal casting industry switching
4.4.2. Renewable energy to cleaner low carbon fuels was considered.
Under this policy option, if coal or oil were
Renewable energy technologies can also be replaced with natural gas, there would be a
used in SMIs. For example, installation of potential to reduce annually about 23,000 t-
solar hot water systems in textile factories, CO 2. However, this option would face
solar air dryers for the tea sector, micro-hydro technical and economic barriers such as
in the tea sector in India and Sri Lanka, and replacement of burners and the high cost of
biomass gasifier systems in the brick and tea natural gas. The emission reduction potential
sector can replace fossil fuel use. of such fuel switching scenarios are shown
in Table 4.5. At present, there is no
The tea sector in Sri Lanka uses mini-hydro infrastructure for natural gas distribution.
power as a source of electric energy. The Natural gas could either be tapped by the
disadvantage of these small power systems industry directly from installed pipelines or
is the seasonal availability of water, which through individual cylinder tanks.
could override the advantage of a cheaper
energy supply with low environmental Box 4.4
impact. However, this option for renewable
energy generation needs detailed Fuel Switching in SMIs
investigation and depends largely on location,
Fuel switching to natural gas requires
resource availability and demand. significant investment and could be difficult to
implement in the SMI sector. Natural gas is
4.5. Emission Reduction through Policy not available as a domestic energy source in
Intervention most of the study countries. Thus, a shift to
natural gas would lead to changes in energy
import dependency raising a number of policy
National governments can build fiscal and issues. Initial investment and administrative
policy frameworks that discourage emissions. costs may be substantial. New transport,
They can phase out counter-productive distribution and end-use infrastructures would
subsidies on carbon-intensive activities, and need to be developed. Hence, the achievable
reduction potentials may differ significantly
introduce energy-efficiency and other among regions, depending on local conditions
regulatory standards that promote the best such as relative fuel prices or gas availability
current and future technologies (UNEP/ (Watson et al. 1996).

44 Chapter 4
GHG Emission Mitigation Scenarios

Chapter 4 45
Greenhouse Gas Mitigation

Similarly, for the other selected countries, in Table 4.6. These are the general options
CO2 emission reduction estimates are based common to most SMI sectors (Box 4.5).
on the options and the results are presented Policy options used in the mitigation
scenarios take into account the SMI sector
Box 4.5 introduced constraints on emission levels
(Box 4.6). It is possible to achieve a 5-10%
Policy options to meet SMI needs
GHG emission reduction by adopting policy
1. For many SMIs, specific energy options for the selected sectors.
consumption is higher than the benchmark
values. Policies must take this into 4.6. Limitations of the Mitigation
consideration to assist the industries to
adopt energy efficient technologies. Scenarios Study

2. Incentives could be offered to existing Implementing emission reduction options
industries to motivate them to apply energy does not always require high capital
conservation techniques. Government expenditures. Some options incur only
agencies should assist them to upgrade
technologies and provide financial support
marginal costs but can achieve high emission
for energy conservation. reductions. This is possible by reducing
energy consumption using E3STs or adopting
3. Organizations providing research and alternative resources. Any improvement in
development and technology transfer should energy use and adoption of alternative
be encouraged to introduce appropriate
information on E3STs to enterprises. For
technologies in the selected SMI sector plays
example, SMIs in Vietnam lack information a role at the factory and national level.
and are weak in accessing information.
Considering the nature of SMIs,
4. It is necessary to set up and promulgate implementing emission mitigation measures
official standards for energy consumption in
the brick sector. Correct guidance and
requires effective strategies that should
support should be given to the SMIs during encourage SMIs to improve energy and
the process of selecting the technology. environmental performance. The strategy
focuses on O&M options, also known as
5. Motivating energy conservation and pollution “good housekeeping” practices as the first
reduction could be achieved through setting
standards and/or norms. This will guide
step to reduce up to 5-10% of the emissions.
investors to select the right technology at This first good results can help SMIs gain
the initial stage of product development. more confidence and look at further options

46 Chapter 4
GHG Emission Mitigation Scenarios
at a later stage to ensure sustainability of the
Box 4.6
implemented programmes.
Barrier study and techno-economic
analysis of E3ST The four categories of CO 2 mitigation
instruments have substantial potential for
To help SMIs identify and implement GHG CO2 emission reductions in each sector. The
emission mitigation, studies on techno
Chinese foundry sector has a potential of
economic analysis and barriers to E3ST
between 4-20% depending on the
promotion were conducted. Along with the
GHG emission estimation, the outcomes of
instruments used, whereas it is about 10-49%
these studies help to prioritize the influencing
factors when adopting the E3STs in SMIs and
discuss the policy options for overcoming

Main barriers to promoting E3ST:
• Financial and economic costs are the most
significant barriers inhibiting the promotion
of E3STs in SMIs.
• Policy and market barriers are also
significant for the non-adoption of E3STs.
• Technical and information, management and
organizational weaknesses do not pose a Figure 4.2 Effectiveness of four instruments
significant barrier for the promotion of E3STs;
however they are not insignificant. in the Philippines metal casting sector. The
overall mitigation potential considered is
Major techno-economic analysis issues: summarised in Table 4.7. However, it should
• Policy, technical and management be emphasized that all this potential cannot
stakeholders were involved in the study.
be achieved or implemented together as the
• In China and India, financial viability of E3ST
is the major concern, whereas in Sri Lanka,
four instr uments are interdependent
it is technological feasibility because the (although in this study they were considered
technology may have to be imported. independently). For instance, the potential
• Among the study countries, China stresses to achieve emission reductions through
most the environmental benefits of E3STs enhanced O&M practices might not be
whereas Sri Lanka ranks it as the least possible if the existing technology is replaced
important. with E3STs. Similarly, fuel switching depends
• Foundries in China, textiles in India and the on technology and national energy policies.
desiccated cocnut industry in Sri Lanka are
Therefore, implementing one measure may
the prioritized sectors for E3ST promotion.
have positive as well as negative affects on
the other. Thus, CO2 mitigation potential
should be quantified cautiously to minimize
like adoption of E3STs and fuel switching. over estimation of emission reduction
Policy options related to incentives can then potentials. The qualitative impact of these
be implemented while those related to four instruments in emission mitigation is
regulation and legislation should be enforced illustrated in Figure 4.2.

Chapter 4 47
Greenhouse Gas Mitigation

Box 4.7
4.7. CDM as a Tool to Mitigate GHG
UNFCC, Kyoto Protocol and the Clean
Emission in SMIs Development Mechanism

The Clean Development Mechanism (CDM) The United Nations Framework Convention on
provides financial opportunities under the Climate Change (UNFCCC) came into force in
Kyoto Protocol that could be employed to 1994 followed by the Kyoto Protocol in 1997.
The objective of the Convention is “to achieve
reduce GHGs (see Box 4.7). At present, stabilization of atmospheric concentration of
developing countries do not have any GHGs at levels that would prevent dangerous
obligatory emission reduction targets under anthropogenic interference with the climate
the Protocol but CO2 mitigating projects can system”.
be carried out through the CDM (Wathanyu
The Protocol has divided the signatories into
and Christian, 2003). This is a facility for two groups – Annex I Parties comprising the
trading Certified Emission Reductions developed nations and the non-Annex I (Annex
(CERs) between developing and developed II and Annex B) countries of the developing
countries, thus saving non-renewable carbon world. To achieve the targets of the Protocol,
emissions by promoting renewable energy, parties are required to achieve the following
targets within 2008-2012:
energy efficiency and carbon sequestration
projects in Developing Countries. Now, with • Enhance energy efficiency
the Kyoto Protocol in effect since February • Promote renewable energy
16, 2005, opportunities to introduce CDM • Favour sustainable agriculture
initiatives can be considered. • Recover methane emissions through waste
• Encourage reforms in relevant sectors to
Several approaches may be used to estimate reduce emissions
emission reductions for SMIs through an • Remove subsidies and other market
energy efficiency or a fuel switching CDM distortions
project. In all cases, the energy savings are • Protect and enhance GHG sinks
• Reduce transport sector emissions
estimated first and then translated into
emission reductions using fuel or grid The mechanism used to achieve the these goals
electricity emission factors. These emission is called the Kyoto Mechanism, which is (i) Joint
factors should be the same as the ones used Implementation, (ii) Emission Trading, and (iii)
to set the baseline emissions. The GHG Clean Development Mechanism (CDM).
estimation based on this study methodology The CDM is anticipated to create development
can be used to find baseline emission values. in the non-Annex I countries through investment
by Annex I Parties and enhance the transfer of
The main barrier to implementing CDM is environmentally friendly technology and promote
the availability of financing and a revenue sustainable development. The CDM projects
must be approved by all parties concerned and
stream directly proportional to the should lead to real, measurable and long-term
investments made in E3STs and the relatively climatic benefits that can be achieved by
high transaction costs for small-scale projects. emission reductions and removals which would
The procedures are quite complex, hence be in addition to those that would have occurred
there is a need for capacity building for project without the projects.
development before CDM initiatives can be Source: UNFCCC 2003; 2004
considered a source of revenue generation.

48 Chapter 4
GHG Emission Mitigation Scenarios

4.8. Summary

This chapter proposed and discussed four
instruments that could be employed in the
selected SMI sectors for the reduction of
GHG emissions. Table 4.7 summarises the
emissions reductions that could be
anticipated in the study countries. Further
possibilities for emission reductions through
CDM have also been considered.

Chapter 4 49
Greenhouse Gas Mitigation

50 Chapter 4
Conclusions & Recommendations

Chapter 5
Conclusion and

5.1 Conclusions

A framework on GHG emission estimation 0.03 million tonnes in Sri Lanka. Among the
methodology for the SMI sector was selected sectors, CO2emissions are mainly
established by customising the IPCC from the brick sector in China and India and
Guidelines and the UNEP GHG Indicators. the tea sector in Sri Lanka.
This can be a useful tool to estimate GHG
emissions from SMIs at the plant and sector GHG emission mitigation options were based
levels. on four instr uments: enhanced O&M
practices, adoption of E3STs, fuel switching
Using this methodology, GHG emissions and policy inter vention. CO 2 emission
from selected SMI sectors of the participating reduction potentials are summarised in Table
countries were estimated and their 5.1.
uncertainties highlighted. The same
framework can be used for estimation of In China, reductions of between 4 and 20%
emissions from other SMI sectors. A could be achieved in the foundry sector. The
summary of estimated CO2 emissions from adoption E3STs has a potential of about 20%,
the selected SMI sectors of the study while policy interventions could help to
countries is presented in Figure 5.1. Among reduce about 4% of the sector emissions.
the selected countries, China has the highest In the textile sector, enhancing O&M
emissions. From the brick sector in China, practices and effective policies could lead to
total emissions are about 190 million t-CO2 a 10% reduction.
compared to 37 million tonnes in India and

Chapter 5 51
Greenhouse Gas Mitigation
In India, the brick sector has the highest In the Philippines metal casting sector,
emissions among the selected sectors and adoption of E3STs such as energy efficient
about 10-20% could be mitigated. The motors and efficiency improvements to heat
E3ST option has the highest potential of treatment systems could lead to reductions
about 20%, while fuel switching could of 0.13 million tonnes. However, it will
reduce about 14%. The textile sector has require effective policies to attain the
the second highest emissions and has a potential of 23% of the total emissions.
reduction potential of about 5-25%. Among
the selected emission mitigation In Sri Lanka, adoption of E3STs in the tea
instruments, fuel switching has the highest sector could reduce the CO2 emissions by
potential for reductions in the textile sector 1.5% using specific technologies including
while in the other three sectors it is about replacement of conventional driers with
5%. In the foundry sector, adoption of fluidised bed driers. In the brick sector, about
E3STs could lead to a emission reductions 11% can be reduced by adoption of E3STs.
of 14%. Firewood is the major source of fuel in the
selected SMI sectors. Use of sustainably
grown wood could reduce the emissions from
the desiccated coconut sector by 7%.

Figure 5.1 SMI sector CO2 emissions

52 Chapter 5
Conclusions & Recommendations

minimize the risk of high estimate
uncertainties. Another option is to consider
5.2. Recommendations fuel extraction, transport, waste disposal,
agriculture and forestry as separate sectors
5.2.1. GHG emission estimations and make estimates, as national data with
reasonable accuracies may be available.
The following recommendations are offered
to help ensure the accuracy of data collection 4. Inventories of other GHG gases, such
and analysis of future studies: as CH 4
, N2O, SF 6, HFCs and PFCs from
various sectors should be considered even
1. Improvements in the reliability of data though they may not be significant compared
by including more factories in the surveys, to the contribution of CO2 from SMIs.
particularly in regions where a sector is
strongly developed as a cluster so that 5.2.2. Emission mitigation
estimations are more accurate and detailed
uncertainty analysis can be carried out. To achieve the goal of environmental
sustainability in the SMI sector, the following
2. Distributions of SMI production type, recommendations are offered:
scale of production, their specific energy
consumption, etc. should be established so 1. Specific technologies and processes
that SMI sector emissions can be estimated that help mitigate GHG emissions across
with reasonable accuracy. Local associations multiple industry sectors should be identified.
and experts should be involved in the data
gathering exercise. 2. Promotion of energy efficient
technologies and processes through the
3. CO2 emissions from fuel upstream bottom-up approach should be explored.
processes and transportation, and process-
related emissions should also be considered 3. Cleaner production approaches should
for widening the scope of the emission source be introduced as a tool for GHG emission
boundaries. However, when doing so a proper mitigation.
methodology needs to be adopted to

Chapter 5 53
Greenhouse Gas Mitigation
4. Benchmarking energy efficiency and 5.2.3. CDM opportunities in SMI sectors
GHG emissions should be further developed
to set a baseline for SMIs. GHG mitigation through Kyoto Protocol
5. The reliability of potential E3STs mechanisms such as Carbon Trading and
should be demonstrated through projects that CDM should be explored. Although these
enable SMIs to invest in E3STs. mechanisms cannot be implemented by
individual SMIs due to their small size and
6. Cost of emission reductions should be scattered nature, SMIs could be grouped or
estimated for each of the scenarios so they clustered to explore CDM opportunities.
can be prioritised. Implications of climate
change policy from the SMI perspective The capacity of local institutions should be
should be studied. enhanced to more effectively identify
potential CDM projects and prepare baseline
Any course of action for industry and policy emission estimates and techno-economic
makers should be complementary to feasibility studies. Therefore, an appropriate
achieving the desired financial and socio- mechanism should be developed for capacity
economic benefits to both parties. Mitigation building by involving all stakeholders,
options should be suggested for financial industry associations and, in particular, policy
benefits at plant level, while policy options makers.
at the macro and national levels should be
suggested to policy makers to make the
business environment more conducive for
industry to embrace suggestions. Even
though the economy as a whole stands to
benefit from well-designed, market oriented
policies for reducing emissions, action or
inaction by government invariably creates
winners and losers in the marketplace
(UNEP/UNFCCC, 2002).

54 Chapter 5

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Appendix A: Net Calorific Value of Fuels

Appendixes 59
Greenhouse Gas Mitigation

Appendix B: Carbon Emission Factor and Carbon Oxidation Factor of Fuels

60 Appendixes

Appendixes 61
Greenhouse Gas Mitigation

For factory 3

A. CO2 emission from electricity use = 3,259,100 × 0.000890/0.75 = 3867.5 t-CO2
B. CO2 emission from Diesel use = (365816/1000) × (0.869/1000000) × 43.33 × 20.2 × 0.99 ×
(44/12) t CO2 = 1010.7 t-CO2
Total CO2 emissions = (3867.5 + 1010.7) t-CO2 = 4878.1 t-CO2
Specific emission factor (SEFFactory 3 ) = 4878.1/1314 CO2 = 3.7 kg-CO2/kg of yarn
(Summary of SEFs are given in Table C2)

SMI sectoral emissions

From Equation (2.7), weighted average,

SEFFactory1x[Annual Production Factory1]+SEFFactory2x[Annual ProductionFactory2]+...
SEF Average=
Total production of all factories

= (2.441×2848) + (4.053×3560) + (3.712×1314) kg-CO2 /kg of product
(2848 + 3560 + 1314)

= 3.4 kg-CO2/kg of year

From Equation (2.8), SMI sector GHG emission =SEFAverage x National total production x
Share of SMI’s production
Annual cotton yarn production from SMIs in India = 2,204,000 tonnes
∴ SMI sectoral CO 2 emission =
2,204,000 tonnes × 3.4 kg-CO2/kg
= 7.495 Million t-CO2/year

STEP 4: Uncertainty Analysis
Total uncertainty is directly
estimated by national expert:
UT = ±36%

STEP 5: Identifying CO2 emission mitigation options and reduction potentials (Table C3)

64 Appendixes

Appendix D: National GHG Emission Inventory in 1994

Total GHG emissions in 1994 were 3,650 million tonnes of CO2 equivalent

Total GHG emissions in 1994 were 1,228 million tonnes of CO2 equivalent

Total CO2 emissions in 1994 were 100.86 million tonnes

Appendixes 65
Greenhouse Gas Mitigation

Sri Lanka
Total CO2 emissions in 1994 were 33.63 million tonnes

Total GHG emissions in 1994 were 25.64 million tonnes of CO2 equivalent

66 Appendixes