Environment Facility (GEF). The GPSC provides a more holistic approach to urban development rather than through a sectorial or project by project

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2 the Global Platform for Sustainable Cities (GPSC) was launched in March 2016 as part of the Sustainable Cities Integrated Approach Pilot (SC IAP) supported by the Global Environment Facility (GEF). The GPSC provides a more holistic approach to urban development rather than through a sectorial or project by project approach. The GPSC covers around 30 cities across 11 pilot countries: Brazil, China, Cote d Ivoire, India, Malaysia, Mexico, Paraguay, Peru, Senegal, South Africa, and Vietnam. Each country is supported with designated GEF grants that are executed by one or several implementing agencies ( As a core component of the program, an Urban Sustainability Framework (USF) is being developed in collaboration with partner organizations. The USF streamlines existing indicators and enables cities to select indicators suitable for achieving their policy objectives. It contains five components: 1) sustainability indicators, 2) diagnostic process, 3) sustainability action plan, 4) financing and investment, and 5) process for implementing the framework. Serving as an overarching guidance document for supporting cities to pursue integrated approach, USF will facilitate implementation of existing GPSC IAP programs as well as support cities for the new round of participation. An official launch of USF is scheduled in the second quarter of Climate action for URBan sustainability is an interactive planning tool designed to help cities take action on climate change to improve, health and air quality, economy and jobs energy independence whilst saving costs. CURB uses local city data to provide tailored analyses that will help cities evaluate low carbon actions. In case there are some data gaps, a common problem in many cities, CURB provides alternative data that can be used from comparable cities, countries or regions. Free and accessible: As an Excelbased tool, CURB can be used offline and allows for transparent modeling. Cities can use CURB at no charge with technical support available upon request. CURB has been adopted by major city networks: CURB has been developed in partnership with the C40 Cities Leadership Group and is now embraced by the Compact of Mayors, which includes hundreds of cities 2

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4 PMR is leading two chapters Manufacturing industries & construction Cross sectoral activities Work on manufacturing & construction chapter started Expected to be ready by September 2017 Purpose Different baseline approaches are needed for different purposes Provide options for baseline approaches and discusses their pros and cons on different levels of aggregation and under different national circumstances 4

5 Definition of sector: Manufacturing is a subset of activities within the industrial processes sector. It includes all activities engaged in chemical, mechanical, or physical transformation of materials, substances, or components into consumer or industrial goods (e.g. steel, cement, machinery, textiles, etc.) except for energy products. Construction refers to the activity that produces a specific component (e.g. masonry, electrical work, etc.) for the construction of buildings (except for energy consumed during the construction). Emissions from industry, which are around 30 % of total global GHG emissions, arise mainly from material processing. Manufacturing is responsible for about 98 % of total direct carbon dioxide (CO2) emissions from the industrial sector (IEA, 2012). Globally, greenhouse gas (GHG) emissions from manufacturing industry are higher than GHG emissions from any other end use sectors and continue to increase, this despite the declining share of manufacturing industry in the global gross domestic product (GDP) for the last twenty years. The reason for the sustained increase in GHG emissions is attributable to the increased demand for manufactured products. The main drivers responsible for this increase in demand are population, wealth, lifestyle, and the whole social system of expectations and aspirations (IPCC Fifth Assessment Report, 2013). Most manufacturing CO2 emissions arise from chemical reactions or fossil fuel combustion that provides the intense heat required to bring the physical and chemical transformations that convert raw materials into industrial products. During these production processes, other gases aside from CO2 are released including methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs) and perfluorocarbons (PFCs). Examples include GHG emissions during the production of chemicals and petrochemicals, iron and steel, cement, pulp and paper and aluminium. Greenhouse gases are also used directly in the manufacturing of products. For example, greenhouse gases are used in refrigeration, foams, electrical equipment and aerosols. The most common greenhouse gases that are used and released into the atmosphere are nitrous oxide (N2O), hydrofluorocarbons (HFCs), and Sulphur hexafluoride (SF6). Fluorinated greenhouse gases are used in special processes in the manufacturing industry. For example, in semiconductor manufacturing and aluminium production processes, Perfluorocarbons (PFCs) are used. NOTE: Missing comments on third diagram special processes reference in last sentence above refers to PFCs?? 5

6 Controls Data on production levels and fuel consumption is typically available within this sector. Consequently, the general approach to determining GHG emissions is through the application of activity level data with specific emission factors per unit of production. In instances where GHG emissions per source are high, mainly when dealing with non CO2 GHG emissions, direct measurement of the GHG is the most appropriate option to improve accuracy and reduce uncertainties. In this industry, it is not common to use models to calculate GHG emissions. For existing facilities, the baseline scenario is the continuation of the current practices in the facility where the implementation will occur. Therefore, the baseline emissions will be determined using historical data with consideration of actual operating conditions. And lifespan of the technologies. For new facilities, the baseline is determined from the most plausible alternative scenario and data can be sourced from experimental information (e.g. following an experimental protocol to determine methane emissions in charcoal production) or by analysis of common practice in the sector in the country or region providing the same level of service Methodologies are usually only applicable if the mitigation action does not increase the production capacity of the plant. This is required to avoid over estimation of emission reductions given that the emissions in the baseline and mitigation scenarios are calculated based on emission factors multiplied by the actual production. Some methodologies also cap the production capacity to the average historical values to avoid this problem. To further ensure that the mitigation action is attributable to the energy efficiency measure, inputs such as final product and energy sources should remain constant in both the baseline and project scenarios. 6

7 There are five main mitigation action categories that have been identified in the manufacturing industry: energy efficiency, fuel switch, feedstock switch, material efficiency and destruction of GHG. A final mitigation action has also been included which pertains to the construction sector; manufacturing of construction materials. 7

8 Compendium works to establish guidance on how to determine GHG baselines for three different levels: Project level to allow the assessment of GHG emissions reductions that have resulted from specific mitigation actions implemented at a specific location. For each type of mitigation action key drivers for the emissions are provided, guidance on baseline determination and MRV are provided. Sector level implementing measures at sectoral level, the measures are often associated with co benefits. These co benefits (e.g. improve competitiveness, environmental compliance, or increase cost effectiveness in production processes) could drive industrial decision and policy choices. For the implementation of policies to reduce GHG emissions, the measures are most of the times implemented on a geographical area like a region or a country and the goal is to help the specific geographical area to achieve a relative or absolute target in terms of emission reductions. As in the case of sectoral measures, policy level mitigation actions are most ambitious and comprehensive than project based approaches National Level 8

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13 As part of the TWP, in order to support PMR countries working on crediting programs, PMR is involved and collaborating with UNFCCC to support preparation of the compendium. 13