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Carbon Policy measurement and verification book now available

Carbon Policy: How measurement and verification can improve policy effectiveness, written by Bruce Rowse, is now available.

Around the world, over one thousand carbon policy measures to reduce carbon emissions have been implemented, with varying degrees of effectiveness. In many cases the level of carbon abatement achieved as a result of a policy is unknown and unquantifiable because it simply has not been measured. The consequence of failing to measure savings is wasted energy efficiency investments of up to billions of dollars globally. Moreover, the actual carbon abatement may be much lower than if a methodological approach had been employed based on a rigorous Measurement and Verification (M&V) plan.

With the concentration of atmospheric carbon dioxide now around 400 parts per million (ppm) and rising at close to 3 ppm per annum understanding the efficiency and effectiveness of carbon abatement policy is ever more critical, particularly in a world with considerable economic uncertainty.

Carbon Policy – How robust Measurement and Verification can Improve Policy Effectiveness, puts forward the case for incorporating more robust M&V (also known as Measurement Reporting and Verification,MRV) – in the synthesis and assessment of carbon abatement policy.

Click here to go the book’s website where you can access a copy for free up to 21 August 2013.

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Greenwashing and carbon accounting standards

I’ve been invited to comment on a recent article by Hunter Richards of Software Advice on greenwash. The article calls for an improvement to environmental accounting infrastructure through software, so that consumers can have greater confidence in claims of carbon neutrality.  Financial accounting methods, standards, auditing procedures and tools are well developed, but not so with carbon accounting. By way of example Richards highlights how a well known company that stated it was carbon neutral hadn’t accounted for its scope 3 emissions.

Scope 3 emission are “indirect” emissions that are embodied in products and services that a company may use. For example scope 3 emissions for a drinks manufacturer would be the carbon emission embodied in the aluminium the drinks company makes its cans out of. However the Greenhouse Gas Protocol, the major global carbon accounting standard in use, hasn’t yet prescribed inclusion of scope 3 emissions in carbon accounting practices

Scope 3 emissions are challenging to measure, and ultimately can only be accurately tracked if every product is labelled with its embodied carbon emissions. Financial accounting practices rely on everything having a price. For example, the sale price of a car is comprised of the cost of everything that goes into making the car, down to the wheel nuts. The price of the wheel nuts in turn depends on the price of the steel used to make the nuts, and the amortised cost of the tooling used to make the nuts. The price of the steel depends on the ingredients in the steel, for example its molybdemum  content, amongst others. The price of molybdemum depends on the cost of energy and labour and amortised machinery used to mine it, process it and transport it. The amortised price of mining machinery depends on many factors as well. Ultimately there are probably well over a million prices that come together to make up the price of a car. In the same way complete carbon accounting also relies on every product or service having emissions associated with it accounted for.

This is complex to do. Daniel Goleman’s book Ecological Intelligence gives the example of glass, which typically has over one hundred ingredients in it in addition to sand. To provide thorough scope 3 carbon accounting requires being able to identify the emissions arising from each ingredient. Thorough scope 3 accounting for something like a computer or a mobile phone is thus very hard to do if the embodied emissions of each constituent part is not known. In the absences of mandated carbon labelling for all products and services, voluntary carbon reporting of scope 3 emissions is very challenging.

This is where emissions databases, and associated software, are useful. “Generic” emission factors could be developed for a particular type and size of product or service, in the absence of actual numbers, and applied when estimating scope 3 emissions. Global sharing of this information via on-line databases could make scope 3 carbon accounting much easier. However generic emission factors will only ever be rough approximations. Ultimately if accuracy is the aim everything in the economy needs to be labelled with its carbon emissions.

Standards, auditing standards, certification schemes and clear rules are needed for accurate carbon accounting. In the absence of complete carbon labelling of everything there needs to be transparency around methodologies and recognition that scope 3 carbon accounts will at best be estimates with a long list of assumptions behind them.

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DHL express Asia Pacific cuts emissions by 19% in 12 months

Last week I had the pleasure of interviewing Christopher Ong, Vice President Business Development, First Choice & GoGreen for DHL Asia Pacific , Eastern Europe, Middle East and Africa. The express division has cut its emissions by 19%, an impressive achievement given the large size of DHL. Globally DHL employs around half a million people.

How has it achieved these savings?

Firstly the chairman identified that it was important for the company to reduce its emissions, as part of being a good corporate citizen.
Secondly, it set a carbon reduction target, of globally reducing emissions by 30% per kg delivered, by 2015.

Third it put in place a measurement and tracking system. Unlike many organisations which centralise their data collection for the purpose of tracking emissions, DHL developed a system where the data entry is decentralised system.

Fourth it got staff using the system. Initially it was hard to motivate staff to do this. However with strong management support, monthly data entry into the system is now the norm. Each month each facility fills in a on-line questionnaire, entering in information such as the litres of diesel used. This only takes a few minutes.

Fifth, graphs and reports from the system are printed out at each facility, and put on the facility noticeboard where they are prominent to staff and drivers.

Sixth, it has fostered competition, encouraged ideas that reduced energy consumption, and empowered staff to take actions to reduce their energy use. For example, in their facilities in Singapore DHL now practices “lights off at lunchtime”, an idea suggested by a staff member.

Chris highlighted the fact that saving energy saves money, and that the Global Financial Crisis has actually accelerated their savings.  He said that their total savings to date of 19,000,000 kgs have come from lots of people each saving a few kgs each day. Financial savings so far total ten million euros. His advice to other organisations:

  1. Be able to measure your emissions accurately.
  2. Give power to the people on the ground. Give them the information they need – what their emissions are now, what they were, how much they have saved. The results can be very immediate, and this reinforces what more can be done.

DHL provide a inspiring example for other organisations to follow. This good news interview with Christopher Ong can be found at https://carbonetix.com.au/wwx/good-news-interviews.

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What Smart Grids will Australia get?

After a $100 million smart grid trial in July this year, the Australian Government released the Australia smart grid guideline on the 30th September.

“With this investment, Australia will showcase the world’s best practice when it comes to investing in smart grid technologies, helping industry get on with the job of rolling out these technologies and supporting clean energy jobs,” Mr. Garrett said.

The potential benefits of a full smart grid implementation are dramatic. Some studies have suggested that savings of between 10% and 25% in electricity demand are achievable.

In contrast, the USA Department of Energy delayed to reveal the smart grid standards last month. “Basically because the development of smart grids is a larger task than the electricity utilities can handle. There is also a lack of understanding and willingness by them to investigate how to best form partnerships with the rest of the industry.” Paul Budde posted.

This has not slowed some big names to rush into the market including Microsoft, Google, IBM, Cisco and AT&T, who are all eager to rock and roll.

My concern is the communication ability of smart grid and smart meters. At present, the meters only store 30 minute intervals of data and transmit the data bi-monthly or quarterly. If Australia has to replace all the electricity meters again after 5 years, who would pay for it?

What smart grids will Australia get? We will just have to wait and see!

image from www.greentechmedia.com

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You have SPAM with a huge carbon footprint

You may have come across this news item a couple of months ago but it is worth taking another look. Although, the study was conducted by a major spam-ware corporation, it is clear that junk e-mails have a huge carbon footprint.

(image: www.fotolia.com)

Anything powered by electricity emits greenhouse gases. Recently research was conducted in the US to find out the amount of energy needed to transmit, process and filter spam globally. The results were startling. According to the ‘Carbon Footprint of Spam’ report the average greenhouse gas emission of a single spam message is 0.3 grams of CO2. Is this a lot? Well, if you multiply this by the number of spam sent annually it translates into a huge figure.

It is estimated that there are 62 trillion junk e-mails sent each year. In terms of energy this equals to the energy needed to drive a car around the planet 1.6 million times. If looking at the electricity needed to power these spam it equals to 33 billion kWh. This amount of electricity could power 2.4 million homes for a year! Spam-related emissions for all e-mail users around the world in 2008 totalled 17 million tons of CO2 or about the same as the emissions produced by 3.1 million passenger cars. That’s 0.2% of the total global emissions.

The report found that about 85 to 91% of all e-mails globally is spam. Nearly 80% of the spam-related GHG emissions came from the energy used by the PC users viewing, deleting and searching for legitimate e-mails amongst the junk e-mails. But spam filtering itself accounts for about 16% of spam-related energy use. To view and trash a piece of spam takes about 3 seconds.

If every inbox were protected by spam filters, organisations and individuals could reduce today’s spam energy by 75% or by 25 billion kWh per year. This would save the same amount of greenhouse emissions as produced by 2.3 million cars. In late 2008 a major source of online spam was taken off line and global spam volumes dropped by 70%. However, there are always new ones to take its place.

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The five essentials to effectively “do” energy efficiency

Reflecting on my interviews with various leaders in the energy efficiency space there are five things you must have to successfully reduce energy use and carbon emissions.

First you need leadership commitment.

Second you need a measurement and monitoring system. Whether you are a school (listen to Hannah Lewis, Westernport Secondary College, which has halved its energy use in the last four years) or a major corporation such as Wesfarmers, you must be able to track your progress.

Third you need more than one person active and driving the program. Witness Linfox, where a few programmers voluntarily took on the extra project of building a carbon tracking tool.

Fourth you need a well informed plan as to what you need to do. An energy audit by experienced energy efficiency engineers will provide this.

Fifth, you need investment. Money is needed to get the savings. The money could be spent on people (eg the driver training undertaken by LinfoX) or technology (eg lighting upgrades at Darebin City Council and Newcastle City Council, or the new paint plant at Toyota). 

Do this and with time you’ll have a self-funding system that will continue to reduce your energy use and carbon footprint.

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Linfox cuts energy use by 9%, on track for 15%

Linfox is well known for the “You are passing another Fox” sign on the back of its vehicles. But the company has also cut its greenhouse gas emissions by 9% in the last eighteen months, and is on track to cut its emissions by 15% by December 2010.

David McInnes, Linfox

David McInnes, Linfox

I had the privilege of interviewing David McInnes, Group Manager Environment and Climate Change yesterday and being inspired about Linfox’s approach to the climate change challenge. It was refreshing not to hear the Carbon Pollution Reduction Scheme mentioned once in the interview. Linfox is reducing its carbon emissions because it wants to, not because its being forced to, and is quietly getting on with it.

So how does a organisation with 15,000 staff, whose carbon emissions mostly come from diesel consumed in trucks, reduce its per km emission by 9% in eighteen months? You can find the interview on our “Good News Interviews” page.

For me a couple of the standouts from the interview were:

  • Their staff engagement program. Almost all of their savings have come about by making better use of what they already have, rather than investing in new technology. This has been achieved by getting their staff involved in changing the way things are done and in how trucks and buildings are operated, and making hundreds of small changes.
  • Their carbon accounting system – developed in-house. Linfox programmers set up their SAP system such that now monthly carbon reports can be generated, down to the level of individual trucks if necessary. A consistent theme of all organisations cutting their carbon footprints is their focus on accurately and frequently tracking their emissions
  • David’s recommendation to any organisation wishing to cut their carbon footprint to undertake an energy audit, which provides the business case for action. Thanks for the plug for my profession David!

After the interview we discussed Linfox’s Greenfox program, and I wish I had left the voice recorder on. This is a fantastic program. Staff can become a Greenfox by passing five training modules. Everyone who completes the training gets a framed certificate, and drivers who complete the training get a Greenfox badge on the shoulder of their uniform. David mentioned that Greenfox’s often become ambassadors, with truck drivers going to their kid’s schools and talking about climate change.

Also not covered in the interview was the great help David got from Linfox’s IT department in modifying SAP. Normally there is a long queue in the organisation for projects requiring SAP changes. The carbon accounting adjustments though were undertaken by the SAP programmers on top of their normal requirements, such was their commitmen to the company reducing its carbon footprint.

Finally David also spoke off the record about the need to focus less on the science and more on the community and the emotional response that when sparked can result in great change.

As one of Australia’s larger businesses Linfox is taking a leadership role by getting on with reducing its corporate carbon footprint. David McInnes is providing inspirational leadership. Take half an hour to listen to David McInnes and I guarantee you’ll come away motivated and hopeful about what is possible if we focus on cutting carbon emission.

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