The first Internet portal dedicated to the carbon footprint of water activities

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1 PRESS FILE The first Internet portal dedicated to the carbon footprint of water activities 1. Greenhouse gas (GHG) emissions: situation and challenges 2. Application to the water industry: measuring the carbon footprint of water treatment plants the first essential step 3. Degrémont, water treatment specialists 4. Lyonnaise des Eaux PRESS RELATIONS Constance Covillard constance.covillard@degremont.com 1

2 GREENHOUSE GAS (GHG) EMISSIONS: SITUATION AND CHALLENGES Two major agreements have been adopted at international level to fight climate change: the United Nations Framework Convention on Climate Change (UNFCCC), adopted in 1992 in Rio; and the Kyoto Protocol, adopted in The UNFCCC arranges a conference of stakeholders each year and aims to stabilize greenhouse gas (GHG) concentrations in the atmosphere "at a level that would prevent dangerous anthropogenic interference with the climate system". Industrialized countries had set themselves the goal of stabilizing GHG emissions at their 1990 level before the year The "Kyoto Protocol", which came into force on February 16, 2005, was adopted at the third conference of stakeholders in Kyoto and ratified by the European Union in The Kyoto Protocol aims at a collective goal of 8% reduction in GHG emissions. Definition: Greenhouse gases (GHG) are gases that absorb some solar radiation and then re-radiate them into the Earth's atmosphere, a phenomenon known as the greenhouse effect. Greenhouse gases usually included in a Bilan Carbone audit are those listed in the Kyoto Protocol: Carbon dioxide (CO 2 ) Methane (CH 4 ) Nitrous oxide (N 2 O) Sulfur hexafluoride (SF 6 ) Hydrofluorocarbons (HFC) Perfluorocarbons (PFCs) and: Water vapor emitted into the stratosphere (by airplanes) Chlorofluorocarbons (CFC) In 2008, France stabilized its greenhouse gas emissions at 527 million tons of CO 2 equivalent, down 0.6% on 2007 and 6.4% below the ceiling set by the Kyoto Protocol for the period GHG emissions in France under the Kyoto Protocol in million tons of CO 2 equivalent Gas emissions /2009 CO CH N 2 O HFC 15, PFC 0, SF 6 0, Global warming potential (GWP) Source Insee 2

3 Changes in GHG emissions under the Kyoto Protocol In % compared with 1990 IPCC (Intergovernmental Panel on Climate Change) special report on extreme events After a year rife with natural disasters, dramatic floods in Thailand and intense drought in Texas and Africa, the IPCC has released a special report on extreme climate events. A summary of this report was published on November 18. It is impossible to attribute climate events to one single factor, but it is possible to know if events fall outside the "natural climate variability" zone. According to the IPCC, GHG emissions can be blamed for the extreme aggravation of a number of climatic deregulations such as heat waves, torrential rains, etc. The full report will be released in February APPLICATION TO THE WATER INDUSTRY: MEASURING THE CARBON FOOTPRINT OF WATER TREATMENT PLANTS THE FIRST ESSENTIAL STEP Climate change is a key environmental concern of the 21st century, and it is clear that reducing GHG emissions is the central concern of local community initiatives such as Agendas 21, Territorial Climate-Energy Plans or CSR (corporate social responsibility) policies. The national "3x20" approach, aiming for a 20% reduction in GHG emissions, 20% energy savings and 20% of energy generated from renewable sources (1990 reference base) by 2020, is a reality supported by many local authorities. Furthermore, the obligation introduced by the Grenelle II de l Environnement to implement Territorial Climate-Energy Plans by 2012 has paved the way for virtuous policies aimed at reducing the GHG emissions of all public services. Article 75 of French Act No of July 12, 2010 (known as Grenelle II) made it mandatory for French corporations with more than 500 employees to conduct an assessment of their greenhouse gas emissions (known as GHG assessment) and for local communities with more than 50,000 residents to 3

4 develop a Plan Climat Énergie Territorial (PCET or Territorial Climate-Energy Plan). The first GHG assessments and PCETs are to be submitted to Prefects of Regions before December 31, 2012 and revised every 3 years. Increasing regulatory obligations are forcing communities and corporations to provide statistical reports on their progress in terms of environmental impact, thus enhancing the importance of carbon assessments. Like many industrial activities, the water sector, in both the construction and operation of water treatment plants, is a potential source of greenhouse gas (GHG) emissions. At the scale of a community, these emissions are not insignificant and account for 10 to 15% of the emissions of local public utilities. For example, water and sanitation rank third on the list of public utilities in terms of GHG emissions, after transport and waste. 1 m3 of produced and sanitized water = 1 kg CO2 equivalent Drinking Water Network Production plant, etc Drinking water Operation 0.10 kg CO2 equiv./m3 0.2 kg CO2 equiv./m3 60% Asset Sanitation Sanitation 40% Operation Network Treatment plant, etc. 0.4 kg CO2 equiv./m3 Operation 0.30 kg CO2 equiv./m3 Operation Tougas WWTP 0.25 kg CO2 equiv./m3 In the water treatment sector, the challenge concerns possibilities of avoiding GHG emissions, as well as offsetting these emissions through possible recycling initiatives, such as the recovery of biogas as renewable energy. The diagnostics is a key step in strategies aimed at reducing GHG emissions. It rapidly became clear that the water industry businesses needed a suitable assessment tool. The large number of measuring tools and methods in the water sector has created confusion and led to gross inaccuracies. That is why Degrémont and Lyonnaise des Eaux have decided to share their expertise and develop a freely accessible website entirely devoted to the carbon footprint of water activities: Intended for all those involved in water activities and more particularly to design and engineering offices, local communities and project managers, the site offers a carbon calculator specifically for water treatment plants, called O 2 C, and offers information on GHG emissions and user-friendly features for managing emission reduction plans. Industry operators now have access to a single protocol and a benchmark platform with an international scope that allows them to share their experiences and good practices with respect to reducing GHG emissions. Visitors to the website can also contact one of the Group's experts for a more advanced 4

5 analysis. In addition, studies are ongoing about the network's integration and GHG emissions linked to the domestic use of water. The O 2 C carbon calculator, developed in collaboration with PwC (Price Waterhouse Coopers), allows local authorities or manufacturers to evaluate the GHG emissions of their water treatment plants: desalination plants, drinking water production plants or wastewater treatment and recycling plants. Degrémont conducted an exhaustive study of the sources of the emissions below before developing its calculator: o Energy consumption (fuel, electricity, natural gas, etc.) o Procedures specific to water and waste management activities (biological treatment, etc.) o Production of inputs (reagents, consumables, construction materials, equipment, etc.) o Movement of persons o Transport of goods, sludge, waste, materials (incoming freight, internal freight, outgoing freight) o Waste treatment and sludge processing This evaluation is a fundamental step and provides the entity with a snapshot of its major GHG emission sources. The entity can then identify the priority sectors to maximize its contribution to the fight against climate change. In addition to the immediate advantage of the carbon assessment of the water treatment plant, the O 2 C tool allows users to: o Update greenhouse gas reports periodically online o Create and record confidential carbon assessment scenarios for different plants o Compare scenarios o Share results online with selected users The special feature of O 2 C is the integration in its calculations of specific emissions related to wastewater treatment procedures: Methane (CH 4 ), which comes from the decomposition of organic matter under anaerobic conditions. Nitrous oxide (N 2 O), which is related to the treatment of nitrogenous life forms present in water (urea, ammonium, proteins). N 2 O is produced during nitrogen nitrification and denitrification phases and may have a global warming potential (GWP) 300 times higher than CO 2. 5

6 Example: Carbon assessment of a wastewater treatment plant WWTP /Reagents Byproducts /Discharge /Energy A benchmark evaluation system for all The O 2 C tool is based on Life Cycle Analysis (LCA) and the greenhouse gas metrics (ISO 14040) defined by international guidelines. France was one of the first countries to vigorously tackle the issue of GHG emissions and make concrete commitments. O 2 C therefore integrates the methodological rules of the Bilan Carbone audit defined by ADEME in France and is based on the guide published by ASTEE (Scientific and Technical Association for Water and the Environment). The inputs required to conduct a carbon assessment of a plant are known as emission factors. These emission factors are obtained from public sources (Bilan Carbone by ADEME, ASTEE, ECOINVENT, etc.) but also in order to adapt to the water treatment industry investigations conducted by the CIRSEE, the research center of SUEZ ENVIRONNEMENT. This is the case for emissions related to the decomposition of organic materials in anaerobic conditions (CH 4 ) or the treatment of nitrogenous life forms (urea, ammonium, proteins) present in water (N 2 O generated during the nitrification and denitrification phases). Research into these matters has appeared in recent publications. The emission factors database is the foundation of O 2 C, and is the result of a collaborative process. It is shared transparently with the entire water industry on the website The Bonnard & Gardel 1 group carried out a critical and independent appraisal of the emission factors database. 1 Bonnard & Gardel is a Group of independent multidisciplinary consulting-engineering firms owned by its associates. BG comprises 450 associates, including 100 engineers and academics, and reports annual revenue of around 85 million Swiss francs. 6

7 A virtuous sharing policy to fight climate change This unique expertise and data sharing has helped to: o Identify the main items that generate the most greenhouse gases in order to define and manage which priority reduction actions are to be implemented to significantly reduce the carbon footprint of plants already in operation. o Design low GHG emission drinking water and wastewater treatment productions plants. Conducting an evaluation and reducing greenhouse gas emissions also means reducing exposure to fluctuations in the price of fossil fuels over the mediumterm. Since three quarters of greenhouse gas emissions come from fossil fuels, reducing greenhouse gas emissions within an internal or external scope reduces dependence on fossil fuels and consequently exposure to price fluctuations. Through the very nature of their activities Degrémont and Lyonnaise des Eaux are major sustainable development players and assist local authorities in meeting environmental challenges and fighting climate change. Degrémont and Lyonnaise des Eaux draw on the group's focus on innovation to propose virtuous solutions to their customers in the following areas: o o o Reducing GHG emissions o Reducing energy and fossil fuel consumption (Greenbass ) o Reducing reagents and consumables o Efficient management of construction and works o Efficient management of transport Avoiding GHG emissions o Incineration of sludge in cement plants, to replace fossil fuel o Spreading, to replace chemical agricultural inputs o Process-related generation of renewable energy (methanization, Degrés Bleu, etc.) o Using renewable energy sources (wind, photovoltaic, geothermal, etc.) Offsetting GHG emissions o Emissions offset through clean development mechanisms (CDM) 7

8 2. DEGRÉMONT, 70 YEARS OF EXPERIENCE As a water treatment specialist, Degrémont designs, builds, equips, operates and finances installations that combine technical and economic performance with respect for natural and urban sites. For more than 70 years, Degrémont, subsidiary of SUEZ ENVIRONNEMENT, has been a major sustainable development player through the nature of its activities and is now a trailblazer in the sustainable management of water resources. 4 ACTIVITIES o Design and Build o Operation and Maintenance o Equipment and Technologies o BOT: Build, Operate, Transfer 5 EXPERTISES o Drinking water production o Desalination o Treatment and reuse of urban wastewater o Sludge treatment o Treatment and production of industrial water KEY FIGURES o 4,500 employees throughout the world o Revenues of 1,520 billion euros in 2010 o 13.5 million euros assigned to R&D in 2010 o More than 500 technologies patented to date o 1 billion people served by a facility built by Degrémont o 10,000 plants worldwide equipped with Degrémont technology o In 2010, Degrémont s operating teams delivered drinking water to nearly 19 million people and treated the wastewater of more than 21 million people 8

9 3. LYONNAISE DES EAUX Lyonnaise des Eaux, subsidiary of SUEZ ENVIRONNEMENT, employs 11,502 people, distributes drinking water to 12 million people, and decontaminates 723 million m 3 of water every year. The company is focused on its customers and strives to promote sustainable development in all its initiatives and projects. In September 2006, Lyonnaise des Eaux launched its charter of 12 commitments for sustainable water management, audited every year by Vigeo. This charter is part of the sustainable development policy of SUEZ ENVIRONNEMENT and reflects its commitment to protect the environment and keep its energy consumption under control. OUR AUDIENCE o Individuals o Professionals (manufacturers, real estate management professionals ) o Local authorities OUR MISSIONS o Commit to sustainable water management Nearly 1,665 resource sites More than 106,843 km of distribution networks o Prevent and treat contaminations Manage more than 1,450 wastewater treatment plants More than 723 million m 3 of wastewater treated o Respond to social expectations 72 Fonds de Solidarité Logement (housing solidarity funds) agreements signed More than 300,000 children and adults informed about water issues More than 4,000 employees made aware of Sustainable Development issues KEY FIGURES o 1,060,000 volumes of water delivered to the network in 2010 (in thousands of m 3 ) o More than 12 million consumers served with drinking water o Revenues of 2 billion euros in 2010 o 2,600 contracts with local authorities o 1 million people exposed to the "Idées neuves sur l eau" (New ideas about water) initiative o 190,000 "Dolce Ô" customers o 60% GHG emissions avoided through the Degrés Bleus process 9

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