Lead or be Led: GHG Reporting and Verification

Transcription

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

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

3 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 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

4 ISO History Source: Greenhouse Gas Protocol Source: Tufts University ISO /2/3 ISO 14065

5 ISO History Need National Delegations (industry, science, academics, consumers, government, NGOs) Liaison Organizations National Member Body TC &WG Scope CD DIS FDIS 5 Yr Review Approved standard

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

7 GHG Programs TCR TCR TCR Reg TCR Reg TCR TCR TCR TCR Reg TCR Reg

8 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

9 Reporting and Verification Example CO2 General Stationary Combustion CO2 = Fuel x HHV x EF x 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

10 Customer Requirements Customer Company/Project Info External Requirements/Schemes Qualified Team Reporting and Verification Strategic Review Sample Plan Verification Steps Verification Prep and Plan Assess Information System and Information System Controls Assess Against Verification Criteria Formulate Conclusions Closing Meeting Draft Report Assess Data and Information 1. Review company info 2. Develop Sample Strategy & Plan 3. Assess management systems 4. Assess data 5. Compare against criteria 6. QMI verification report & statement Customer Response Draft Statement Peer Review Decision Review Final Report and Statement with Customer

11 Customer Requirements Customer Company/Project Info External Requirements/Schemes Qualified Team Reporting and Verification Strategic Review Sample Plan Verification Steps Assess Information System and Information System Controls Verification Prep and Plan Assess Against Verification Criteria Formulate Conclusions Closing Meeting Assess Data and Information Review Company Information The Report Description of facilities and organization Operational and control procedures for ensuring data quality Draft Report Customer Response Draft Statement Peer Review Decision Review Final Report and Statement with Customer

12 Customer Requirements Customer Company/Project Info External Requirements/Schemes Qualified Team Reporting and Verification Strategic Review Sample Plan Verification Steps Assess Information System and Information System Controls Verification Prep and Plan Assess Against Verification Criteria Formulate Conclusions Assess Data and Information Develop Sample Strategy & Plan Analyze for risks Link risk areas to data/information Identify data and processes to verify in the plan Closing Meeting Draft Report Customer Response Draft Statement Peer Review Decision Review Final Report and Statement with Customer

13 Customer Requirements Customer Company/Project Info External Requirements/Schemes Qualified Team Reporting and Verification Strategic Review Sample Plan Verification Steps Assess Information System and Information System Controls Verification Prep and Plan Assess Against Verification Criteria Formulate Conclusions Closing Meeting Draft Report Assess Data and Information Assess Management Systems Data handling Records management Instrumentation calibration Training Internal checks Refine sampling/verification plan Customer Response Draft Statement Peer Review Decision Review Final Report and Statement with Customer

14 Customer Requirements Customer Company/Project Info External Requirements/Schemes Qualified Team Reporting and Verification Strategic Review Sample Plan Verification Steps Assess Information System and Information System Controls Verification Prep and Plan Assess Against Verification Criteria Formulate Conclusions Assess Data and Information Assess Data and Information Physical, documentary or testimonial evidence Test it Full data trail Closing Meeting Draft Report Customer Response Draft Statement Peer Review Decision Review Final Report and Statement with Customer

15 Customer Requirements Customer Company/Project Info External Requirements/Schemes Qualified Team Reporting and Verification Strategic Review Sample Plan Verification Steps Assess Information System and Information System Controls Verification Prep and Plan Assess Against Verification Criteria Formulate Conclusions Closing Meeting Assess Data and Information Compare Against Criteria Accuracy, Completeness, Consistency, Transparency and Relevancy Draft Report Customer Response Draft Statement Peer Review Decision Review Final Report and Statement with Customer

16 Customer Requirements Customer Company/Project Info External Requirements/Schemes Qualified Team Reporting and Verification Strategic Review Sample Plan Verification Steps Assess Information System and Information System Controls Verification Prep and Plan Assess Against Verification Criteria Assess Data and Information Verification Report Opportunities for improvement related to the Reporting processes Formulate Conclusions Closing Meeting Draft Report Verification Statement Enhance its credibility Customer Response Draft Statement Peer Review Decision Review Final Report and Statement with Customer

17 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.

18 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)

19 Ontario Regulation Requirements Third party verification of 2011 emissions Verification by an accredited verification body Scope Facility 5% materiality Reasonable level of assurance

20 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

21 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

22 Questions and Answer Session John Fraser Product Manager Environment john.fraser@qmi-saiglobal.com