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Lead or be Led: GHG Reporting and Verification John Fraser Product Manager Environment May 2, 2011 Energy Matters 2011 Peel Region


Agenda

• • • • • •

QMI SAI Overview ISO History GHG Programs Reporting and Verification Ontario Regulation Why Report and Verify


QMI SAI Overview

• QMI Founded in 1984 as North America’s first registrar • Acquired by SAI Global in February 2008 • Today: - Global resources - Greater than 14,000 registrations in North America - 350 auditors in North America, over 800 Worldwide - ISO, sector and customer-specific standards - Conducted verifications since 2004 for Power Utilities, Oil and Gas, Service, Cement and Chemical industry facilities


ISO History

Source: Greenhouse Gas Protocol

Source: Tufts University

ISO 14064-1/2/3

ISO 14065


ISO History National Delegations (industry, science, academics, consumers, government, NGOs)

Need

Liaison Organizations

TC &WG National Member Body

• • • •

Scope CD DIS FDIS

Approved standard 5 Yr Review


GHG Programs

Types of GHG Programs • Inventories • Offsets • Voluntary • Regulatory Scopes of GHG Programs • Gases • Scope 1, 2 or 3


GHG Programs

TCR

TCR

TCR TCR

TCR Reg Reg

TCR

TCR TCR Reg Reg

TCR


Reporting and Verification

Reporting • • • • • • • • • •

Choose your GHG program Study program rules Create Inventory Management Plan Identify your GHG sources Select the defined quantification protocols Determine activity data for the protocols Calibrate instrumentation Collect activity data Apply quantification protocol calculations Check your work


Reporting and Verification

Example – CO2 General Stationary Combustion CO2 = Fuel x HHV x EF x 0.001 where Fuel = annual natural gas use in m3 HHV = default high heat value of fuel EF = fuel specific default emission factor * for illustration purposes only


Customer Requirements Customer Company/Project Info External Requirements/Schemes

Qualified Team

Reporting and Verification

Strategic Review

Verification Steps Sample Plan Verification Prep and Plan

Assess Information System and Information System Controls

Assess Data and Information

Assess Against Verification Criteria Formulate Conclusions

Closing Meeting

Draft Report

Customer Response

Draft Statement

Peer Review Decision

Review Final Report and Statement with Customer

1. 2. 3. 4. 5. 6.

Review company info Develop Sample Strategy & Plan Assess management systems Assess data Compare against criteria QMI verification report & statement


Customer Requirements Customer Company/Project Info External Requirements/Schemes

Qualified Team

Reporting and Verification

Strategic Review

Verification Steps Sample Plan Verification Prep and Plan

Assess Information System and Information System Controls

Assess Data and Information

Assess Against Verification Criteria Formulate Conclusions

Closing Meeting

Draft Report

Customer Response

Draft Statement

Peer Review Decision

Review Final Report and Statement with Customer

Review Company Information • The Report • Description of facilities and organization • Operational and control procedures for ensuring data quality


Customer Requirements Customer Company/Project Info External Requirements/Schemes

Qualified Team

Reporting and Verification

Strategic Review

Verification Steps Sample Plan Verification Prep and Plan

Assess Information System and Information System Controls

Assess Data and Information

Assess Against Verification Criteria Formulate Conclusions

Closing Meeting

Draft Report

Customer Response

Draft Statement

Peer Review Decision

Review Final Report and Statement with Customer

Develop Sample Strategy & Plan • Analyze for risks • Link risk areas to data/information • Identify data and processes to verify in the plan


Customer Requirements Customer Company/Project Info External Requirements/Schemes

Qualified Team

Reporting and Verification

Strategic Review

Verification Steps Sample Plan Verification Prep and Plan

Assess Information System and Information System Controls

Assess Data and Information

Assess Against Verification Criteria Formulate Conclusions

Closing Meeting

Draft Report

Customer Response

Draft Statement

Peer Review Decision

Review Final Report and Statement with Customer

Assess Management Systems • Data handling • Records management • Instrumentation calibration • Training • Internal checks Refine sampling/verification plan


Customer Requirements Customer Company/Project Info External Requirements/Schemes

Qualified Team

Reporting and Verification

Strategic Review

Verification Steps Sample Plan Verification Prep and Plan

Assess Information System and Information System Controls

Assess Data and Information

Assess Against Verification Criteria Formulate Conclusions

Closing Meeting

Draft Report

Customer Response

Draft Statement

Peer Review Decision

Review Final Report and Statement with Customer

Assess Data and Information • Physical, documentary or testimonial evidence • Test it • Full data trail


Customer Requirements Customer Company/Project Info External Requirements/Schemes

Qualified Team

Reporting and Verification

Strategic Review

Verification Steps Sample Plan Verification Prep and Plan

Assess Information System and Information System Controls

Assess Data and Information

Assess Against Verification Criteria Formulate Conclusions

Closing Meeting

Draft Report

Customer Response

Draft Statement

Peer Review Decision

Review Final Report and Statement with Customer

Compare Against Criteria • Accuracy, • Completeness, • Consistency, • Transparency and • Relevancy


Customer Requirements Customer Company/Project Info External Requirements/Schemes

Qualified Team

Reporting and Verification

Strategic Review

Verification Steps Sample Plan Verification Prep and Plan

Assess Information System and Information System Controls

Assess Data and Information

Assess Against Verification Criteria

Verification Report • Opportunities for improvement related to the Reporting processes

Formulate Conclusions

Closing Meeting

Draft Report

Customer Response

Draft Statement

Peer Review Decision

Review Final Report and Statement with Customer

Verification Statement • Enhance its credibility


Reporting and Verification

Example of a material discrepancy The reported Stationary Fuel Gas GHG Emissions of 30,000 tCO2e in 2010 does not correctly reflect the composition of the fuel gas used. The GHG emission factors used to calculate the total GHGs are from the GHG program guide, but the plant does not use “typical� natural gas as fuel gas. Using site-specific CO2 emission factors, the discrepancies in GHG emissions were 6.0% of total GHGs .


Ontario Regulation Requirements Facilities emitting 25,000 tonnes of carbon dioxide equivalent (CO2e) or more per year annually submit verified reports Source activities • 26 source types, including: general stationary combustion; electricity generation; and process emissions Facility • All buildings, equipment, structures and stationary items Regulated GHGs Carbon dioxide Sulphur hexafluoride Methane HFCs (19 compounds) Nitrous oxide PFCs (7 compounds) Nitrogen trifluoride (newly added)


Ontario Regulation

Requirements •

Third party verification of 2011 emissions

Verification by an accredited verification body

Scope – Facility – 5% materiality – Reasonable level of assurance


Why Report and Verify

Why Report • • • • • • • •

Improved management of processes through new reporting tools Identify reduction opportunities Prioritize reduction efforts Demonstration of leadership Satisfy external disclosure pressures Peer pressure Regulatory requirement Comply with corporate requirements


Why Report and Verify

Reasons to verify •

The value of the report will be more easily achieved

Credibility

Management confidence

Due diligence

Reporting processes and performance improvements


Questions and Answer Session

John Fraser | Product Manager | Environment email : john.fraser@qmi-saiglobal.com


9)lead or be led ghg reporting and verification