Carbon Credits Carbon Credits ProgramProgramPresented by: Caleb H. Dana, Jr., P.E.Presented by: Caleb H. Dana, Jr., P.E.

Eco-Systems, Inc.Eco-Systems, Inc.

At theAt the

Air & Waste Management Association’s:

2008 Southern Section A&WMA Annual 2008 Southern Section A&WMA Annual Meeting & Technical Conference – Meeting & Technical Conference – August 5-8, 2008August 5-8, 2008 Beau Rivage Resort, Biloxi, Mississippi

Kyoto ProtocolKyoto Protocol

United Nations Framework Convention on United Nations Framework Convention on Climate Change (UNFCCC) - 1992Climate Change (UNFCCC) - 1992

The United States signed and ratified the The United States signed and ratified the UNFCCC in 1992UNFCCC in 1992

The Framework took effect in 1994The Framework took effect in 1994 Kyoto Protocol text was adopted unanimously Kyoto Protocol text was adopted unanimously

in 1997in 1997 Marrakesh Accords adopted in 2001Marrakesh Accords adopted in 2001 Kyoto Protocol Convention took effect on Kyoto Protocol Convention took effect on

February 16, 2005February 16, 2005 More information:More information: ((http://www.unfccc.int/kyoto_protocol) )

Kyoto ProtocolKyoto Protocol

The Kyoto Protocol is “An international The Kyoto Protocol is “An international agreement with mandatory targets on agreement with mandatory targets on greenhouse-gas emissions (GHG) for the greenhouse-gas emissions (GHG) for the world’s leading economies which accept it. world’s leading economies which accept it. The Kyoto Protocol sets limits on total GHG The Kyoto Protocol sets limits on total GHG emissions by the world’s major economies, a emissions by the world’s major economies, a prescribed number of “emission units.” prescribed number of “emission units.” However, the Protocol does not set limits on However, the Protocol does not set limits on GHG emissions for developing countries.”GHG emissions for developing countries.”

The Kyoto Protocol is basically a cap-and-The Kyoto Protocol is basically a cap-and-trade system that allows countries that have trade system that allows countries that have emission units to spare – emissions emission units to spare – emissions permitted them but not “used” – to sell this permitted them but not “used” – to sell this excess capacity to countries that are over excess capacity to countries that are over their targets. their targets.

GHG Emissions related to Climate GHG Emissions related to Climate ChangeChange

Six gaseous compounds have been found to be Six gaseous compounds have been found to be significant relative to their capability to capture thermal significant relative to their capability to capture thermal radiation in the upper atmosphere:radiation in the upper atmosphere: Carbon Dioxide (CO2) – 60 % of GHG thermal Carbon Dioxide (CO2) – 60 % of GHG thermal

capture capture Methane (CH4) Methane (CH4) Nitrous Oxide (N2O) Nitrous Oxide (N2O) Chloro-, Hydro- , Hydrochloro-Chloro-, Hydro- , Hydrochloro- (CFCs/HFCs/HCFCs), and Perfluorocarbons (PFCs)(CFCs/HFCs/HCFCs), and Perfluorocarbons (PFCs) Sulfur Hexafluoride (SF6)Sulfur Hexafluoride (SF6) Water Vapor (H2O)Water Vapor (H2O)

Kyoto Protocol GHG Emissions Kyoto Protocol GHG Emissions Reduction TargetsReduction Targets

The reduction targets for CO2 range from -8% to The reduction targets for CO2 range from -8% to +10% of the country’s individual 1990 emissions +10% of the country’s individual 1990 emissions levels “with a view to reducing their overall levels “with a view to reducing their overall emissions of such gases by at lease 5% below emissions of such gases by at lease 5% below existing 1990 levels in the commitment period 2008 existing 1990 levels in the commitment period 2008 to 2012.to 2012.

These limits call for significant reduction in currently These limits call for significant reduction in currently projected emissions.projected emissions.

Future emissions mandatory targets are expected to Future emissions mandatory targets are expected to be established for “commitment periods” after 2012 be established for “commitment periods” after 2012 and will be negotiated well in advance of the periods and will be negotiated well in advance of the periods concerned.concerned.

Marrakesh Accords are rules adopted with Marrakesh Accords are rules adopted with instructions regarding how to implement the Kyoto instructions regarding how to implement the Kyoto Protocol. These rules specify the Protocol’s Protocol. These rules specify the Protocol’s emissions-trading system implementation procedures.emissions-trading system implementation procedures.

Countries actual emissions have to be monitored and Countries actual emissions have to be monitored and

guaranteed to be what they are reported to be, and guaranteed to be what they are reported to be, and precise records have to be kept of the trades carried precise records have to be kept of the trades carried out. Accordingly, “registries” – like bank accounts of a out. Accordingly, “registries” – like bank accounts of a nation’s emissions units – are being set up, along with nation’s emissions units – are being set up, along with “accounting procedures”, an “international “accounting procedures”, an “international transactions log”, and “expert review teams” to verify transactions log”, and “expert review teams” to verify compliance.compliance.

Kyoto Protocol GHG Emissions Kyoto Protocol GHG Emissions Reduction TargetsReduction Targets

Kyoto Protocol Commitments Kyoto Protocol Commitments for GHG Emission Reductionsfor GHG Emission Reductions

Commitments under the Protocol vary:Commitments under the Protocol vary: An overall 5% target for developed countries is to be met through An overall 5% target for developed countries is to be met through

cuts (from 1990 levels)cuts (from 1990 levels) European Union – 8% (member states vary from 28% reduction by European Union – 8% (member states vary from 28% reduction by

Luxembourg to 27% increase by Portugal)Luxembourg to 27% increase by Portugal) Switzerland – 8%Switzerland – 8% Most Central and East European states – 8%Most Central and East European states – 8% Canada – 6%Canada – 6% United States – 7% (US has since withdrawn its support)United States – 7% (US has since withdrawn its support) Hungray – 6%Hungray – 6% Japan – 6%Japan – 6% Poland – 6%Poland – 6% New Zeland, Russia, and Ukraine – stabilize (0%)New Zeland, Russia, and Ukraine – stabilize (0%) Norway – Increase by 1%Norway – Increase by 1% Australia – Increase by up to 8% (Australia has since withdrawn its Australia – Increase by up to 8% (Australia has since withdrawn its

support)support) Iceland – Increase by 10%Iceland – Increase by 10%

Mechanisms for Carbon Trading Mechanisms for Carbon Trading under the Kyoto Protocolunder the Kyoto Protocol

Three Mechanisms were established for Carbon Three Mechanisms were established for Carbon Trading under the Kyoto Protocol:Trading under the Kyoto Protocol:

1. International Emissions Trading (IET)1. International Emissions Trading (IET)

2. Clean Development Mechanism (CDM) 2. Clean Development Mechanism (CDM) (credits earned by sponsoring greenhouse-gas-(credits earned by sponsoring greenhouse-gas-reducing projects in developing countries).reducing projects in developing countries).

3. Joint Implementation Projects (JI)3. Joint Implementation Projects (JI)

Carbon Credits Under the Kyoto Carbon Credits Under the Kyoto ProtocolProtocol

Under the Kyoto Protocol agreement, Under the Kyoto Protocol agreement, countries have flexibility in how they will countries have flexibility in how they will meet the targets (i.e., they may increase meet the targets (i.e., they may increase “sinks” such as forests at home or abroad or “sinks” such as forests at home or abroad or pay for foreign projects that result in carbon pay for foreign projects that result in carbon emission reductions or greenhouse gas emission reductions or greenhouse gas cuts.)cuts.)

It is assumed that greenhouse-gas It is assumed that greenhouse-gas emissions damage the atmosphere equally emissions damage the atmosphere equally wherever they occur, and emission cuts help wherever they occur, and emission cuts help equally wherever they are made.equally wherever they are made.

Countries will get credit for reducing Countries will get credit for reducing greenhouse–gas totals by planting or greenhouse–gas totals by planting or expanding forests (“removal units”); for expanding forests (“removal units”); for carrying out “joint implementation projects” carrying out “joint implementation projects” with other developed countries, usually with other developed countries, usually countries with “transition economies”; and countries with “transition economies”; and for projects under the Protocol’s Clean for projects under the Protocol’s Clean Development Mechanism, which involves Development Mechanism, which involves funding activities to reduce emission by funding activities to reduce emission by developing nations. Credits earned this way developing nations. Credits earned this way may be bought and sold in the emissions may be bought and sold in the emissions market or “banked” for future use. market or “banked” for future use.

Carbon Credits Under the Kyoto Carbon Credits Under the Kyoto ProtocolProtocol

International Emissions Trading International Emissions Trading (IET)(IET)

Article 17 of the Kyoto ProtocolArticle 17 of the Kyoto Protocol

Countries with commitments under the Kyoto Countries with commitments under the Kyoto Protocol can acquire emission units from other Protocol can acquire emission units from other countries with commitments under the Protocol and countries with commitments under the Protocol and use them towards meeting a part of their targets.use them towards meeting a part of their targets.

An international transaction log, a software-based An international transaction log, a software-based accounting system, ensures secure transfer of accounting system, ensures secure transfer of emission reduction units between countries.emission reduction units between countries.

Clean Development Mechanism Clean Development Mechanism (CDM)(CDM)

Article 12 of the Kyoto ProtocolArticle 12 of the Kyoto Protocol Because the atmosphere is equally damaged by Because the atmosphere is equally damaged by

greenhouse-gas emissions wherever they occur and greenhouse-gas emissions wherever they occur and equally helped by emissions cuts wherever they are equally helped by emissions cuts wherever they are made, the Protocol includes an arrangement for made, the Protocol includes an arrangement for reductions to be “sponsored” in countries not bound reductions to be “sponsored” in countries not bound by emissions targets.by emissions targets.

Emission-reduction (or emission removal) projects in Emission-reduction (or emission removal) projects in developing countries are allowed to earn certified developing countries are allowed to earn certified emission reduction (CER) credits, each equivalent to emission reduction (CER) credits, each equivalent to one tonne of COone tonne of CO22..

These CERs can be traded and sold, and used by These CERs can be traded and sold, and used by industrialized countries to meet a part of their industrialized countries to meet a part of their emission reduction targets under the Kyoto Protocol.emission reduction targets under the Kyoto Protocol.

Projects must qualify through a rigorous public Projects must qualify through a rigorous public registration and issuance process designed to ensure registration and issuance process designed to ensure real, measurable and verifiable emission reductions real, measurable and verifiable emission reductions that are additional tothat are additional to what would have occurred what would have occurred without the project. To be certified by the Clean without the project. To be certified by the Clean Development Mechanism Executive Board, a project Development Mechanism Executive Board, a project must be approved by all involved parties, demonstrate must be approved by all involved parties, demonstrate a measurable and long-term ability to reduce a measurable and long-term ability to reduce emissions, and provide reductions that would be emissions, and provide reductions that would be additional to any that would otherwise occur.additional to any that would otherwise occur.

Options to the program are also being considered. Options to the program are also being considered. Less red tape, for example, may be required for small-Less red tape, for example, may be required for small-scale projects, such as small renewable energy scale projects, such as small renewable energy facilities. Another proposal is to allow afforestation facilities. Another proposal is to allow afforestation and reforestation projects to be included.and reforestation projects to be included.

Clean Development Mechanism Clean Development Mechanism (CDM)(CDM)

Joint Implementation (JI)Joint Implementation (JI)

Article 6 of the Kyoto ProtocolArticle 6 of the Kyoto Protocol

A country with an emission-reduction limitation A country with an emission-reduction limitation commitment under the Kyoto Protocol may take part commitment under the Kyoto Protocol may take part in an emission reduction (or emission removal) in an emission reduction (or emission removal) projects in any other country with a commitment projects in any other country with a commitment under the Protocol, and count the resulting emission under the Protocol, and count the resulting emission units towards meeting its Kyoto target. It allows units towards meeting its Kyoto target. It allows industrialized countries to meet part of their required industrialized countries to meet part of their required cuts in greenhouse-gas emissions by paying for cuts in greenhouse-gas emissions by paying for projects that reduce emissions in other industrialized projects that reduce emissions in other industrialized countries.countries.

JI projects earn emission reduction units (ERUs), each JI projects earn emission reduction units (ERUs), each equivalent to one tonne of COequivalent to one tonne of CO22, ,

As with CDM, all emission reductions must be real, As with CDM, all emission reductions must be real, measurable, verifiable, and additional to what would measurable, verifiable, and additional to what would have occurred without the project. To be approved for have occurred without the project. To be approved for a joint implementation project, industrialized countries a joint implementation project, industrialized countries must meet requirements under the Protocol for must meet requirements under the Protocol for accurate inventories of greenhouse-gas emissions and accurate inventories of greenhouse-gas emissions and for detailed registries of emissions “units” and “credits”. for detailed registries of emissions “units” and “credits”. Projects may start and receive credits during 2008. Projects may start and receive credits during 2008. Sponsoring governments will receive credits that may Sponsoring governments will receive credits that may be applied to their emissions targets’ the recipient be applied to their emissions targets’ the recipient nations will gain foreign investment and advanced nations will gain foreign investment and advanced technology (but not credit toward meeting their own technology (but not credit toward meeting their own emissions caps; they have to do that themselves).emissions caps; they have to do that themselves).

Joint Implementation (JI)Joint Implementation (JI)

Under the JI there are two “tracks” by which projects Under the JI there are two “tracks” by which projects can apply for approval: 1) third-party verification and can apply for approval: 1) third-party verification and 2) international independent body verification.2) international independent body verification.

National ApprovalNational Approval

Before a project will be recognized as a CDM or JI Before a project will be recognized as a CDM or JI project, the project participants must receive a letter project, the project participants must receive a letter of approval from the host country. Likewise, project of approval from the host country. Likewise, project participants require a letter of authorization. A list of participants require a letter of authorization. A list of designated national authorities under the CDM is designated national authorities under the CDM is available at: (available at: (http://cdm.unfccc.int/DNA/index.html))

Joint Implementation (JI)Joint Implementation (JI)

Third Party Oversight Required Third Party Oversight Required by the Kyoto Protocolby the Kyoto Protocol

Third-party oversight is required by the Kyoto Third-party oversight is required by the Kyoto ProtocolProtocol

Independent, third-party validation or determination Independent, third-party validation or determination of project design documents and verification and of project design documents and verification and certification of GHG emission reductions is a key certification of GHG emission reductions is a key feature of the CDM and JI.feature of the CDM and JI.

A list of accredited designated operational entities A list of accredited designated operational entities under the CDM is available at: (under the CDM is available at: (http://cdm.unfccc.int/DOE/list/index.html))

Scientific Assessment of Climate Scientific Assessment of Climate ChangeChange

Global Change Research Act of 1990 Global Change Research Act of 1990 U.S. Climate Change Science Program (CCSP)U.S. Climate Change Science Program (CCSP) Intergovernmental Panel on Climate Change (IPCC)Intergovernmental Panel on Climate Change (IPCC) Section 515 of the Treasury and General Government Section 515 of the Treasury and General Government

Appropriations Act for Fiscal Year 2001 and the Appropriations Act for Fiscal Year 2001 and the Information Quality Act guidelines issued by the Information Quality Act guidelines issued by the Department of Commerce and NOAADepartment of Commerce and NOAA

Scientific Assessment of the Effects of Global Change Scientific Assessment of the Effects of Global Change on the United States, May 2008, prepared by the on the United States, May 2008, prepared by the Committee on Environment and Natural Resources Committee on Environment and Natural Resources National Science and Technology CouncilNational Science and Technology Council

More information : (More information : (http://www.climatescience.gov/ Library/scientific-assessment/))

Scientific Assessment of the Scientific Assessment of the Effects of Climate Change on Effects of Climate Change on

the United Statesthe United States The IPCC concluded that it is unequivocal that the The IPCC concluded that it is unequivocal that the

average temperature of the Earth’s surface has average temperature of the Earth’s surface has warmed recently and it is warmed recently and it is very likelyvery likely (greater than (greater than 90% probability) that most of this global warming is 90% probability) that most of this global warming is due to increase concentrations of human-generated due to increase concentrations of human-generated greenhouse gases.greenhouse gases.

The IPCC determined that the globally averaged The IPCC determined that the globally averaged temperature rise over the last 100 years (1906-2005) temperature rise over the last 100 years (1906-2005) is 1.33 + 0.32 F when estimated by linear trend.is 1.33 + 0.32 F when estimated by linear trend.

The rate of global warming over the last 50 years The rate of global warming over the last 50 years (0.23 + 0.05 F per decade) is almost double that for (0.23 + 0.05 F per decade) is almost double that for the 100 years (0.13 + 0.04 F per decade).the 100 years (0.13 + 0.04 F per decade).

Greenhouse Gases (GHGs) are at their highest levels Greenhouse Gases (GHGs) are at their highest levels in at least 400,000 years.in at least 400,000 years.

Scientific Assessment of Scientific Assessment of Climate ChangeClimate Change

““Are Humans Responsible for Global Are Humans Responsible for Global Warming, A Review of the Facts”, Warming, A Review of the Facts”, Environmental Defense, April 2007Environmental Defense, April 2007 ((http://www.edf.org/documents/5279_GlobalwarmingAttributuion.phttp://www.edf.org/documents/5279_GlobalwarmingAttributuion.pdfdf))

““Nature, Not Human Activity, Rules the Nature, Not Human Activity, Rules the Climate, Climate, Nongovernmental International Panel Nongovernmental International Panel on Climate Change”, April 2008 U.S.on Climate Change”, April 2008 U.S. ((http://www.heartland.org/pdf/22835.pdfhttp://www.heartland.org/pdf/22835.pdf))

Costs for Addressing Climate Costs for Addressing Climate ChangeChange

““The United States can enjoy robust economic growth The United States can enjoy robust economic growth over the next several decades while making ambitious over the next several decades while making ambitious reduction in greenhouse-gas emissions. If we put a reduction in greenhouse-gas emissions. If we put a cap-and–trade policy in place soon, we can achieve cap-and–trade policy in place soon, we can achieve substantial cuts in greenhouse-gas emissions without substantial cuts in greenhouse-gas emissions without significant adverse consequences to the economy. significant adverse consequences to the economy. And in the long run, the coming low-carbon economy And in the long run, the coming low-carbon economy can provide the foundation for sustained American can provide the foundation for sustained American economic growth and prosperity.” … What Will it Cost economic growth and prosperity.” … What Will it Cost to Protect Ourselves from Global Warming?”, to Protect Ourselves from Global Warming?”, Environmental Defense Fund Environmental Defense Fund ((http://www.edf.org/climatecostshttp://www.edf.org/climatecosts))

Costs for Addressing Climate Costs for Addressing Climate Change …Change …

A national policy to cut carbon emissions by as much A national policy to cut carbon emissions by as much as 40 percent over the next 20 years could still result in as 40 percent over the next 20 years could still result in increased economic growth, according to an interactive increased economic growth, according to an interactive Web site that reviews 25 of the leading economic Web site that reviews 25 of the leading economic models used to predict the economic impacts of models used to predict the economic impacts of reducing emissions. Robert Repetto, professor in the reducing emissions. Robert Repetto, professor in the practice of economics and sustainable development at practice of economics and sustainable development at the Yale School of Forestry & Environmental Studies the Yale School of Forestry & Environmental Studies created the interactive web site. Growth rates of the created the interactive web site. Growth rates of the U.S. GDP have been 3% historically. According to the U.S. GDP have been 3% historically. According to the Web site’s predictions, “With emissions reduced by 40 Web site’s predictions, “With emissions reduced by 40 % of business-as-usual, even under the most % of business-as-usual, even under the most pessimistic assumptions, the GDP would grow 2.4 % a pessimistic assumptions, the GDP would grow 2.4 % a year, reaching $23 trillion by 2030, and rising above year, reaching $23 trillion by 2030, and rising above 3% under favorable assumptions.” 3% under favorable assumptions.” ((http://www.climate.yale.edu/seeforyourselfhttp://www.climate.yale.edu/seeforyourself))

U.S. Greenhouse Gas Inventory U.S. Greenhouse Gas Inventory ReportsReports

In 1992 the U.S. signed and ratified the UNFCC In 1992 the U.S. signed and ratified the UNFCC which required that ratifying parties “shall develop, which required that ratifying parties “shall develop, periodically update, publish and make available…periodically update, publish and make available…national inventories of anthropogenic emissions by national inventories of anthropogenic emissions by sources and removals by sinks of all greenhouse sources and removals by sinks of all greenhouse gases not controlled by the Montreal Protocol using gases not controlled by the Montreal Protocol using comparable methodologies…”comparable methodologies…”

Inventory of U.S. Greenhouse Gas Emissions and Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2006, USEPA #430-R-08-005, (April Sinks: 1990-2006, USEPA #430-R-08-005, (April 2008)2008)

More information: More information: ((http://www.epa.gov/climatechange/ emissions/usinventoryreport.htm))

GHG Emissions – EPA GHG Emissions – EPA InventoryInventory

GHG Emissions – EPA GHG Emissions – EPA InventoryInventory

GHG Emissions – EPA GHG Emissions – EPA InventoryInventory

GHG Emissions – EPA GHG Emissions – EPA InventoryInventory

A Business Guide to U.S. EPA A Business Guide to U.S. EPA Climate Partnership ProgramsClimate Partnership Programs

A Business Guide to U.S. EPA Climate Partnership A Business Guide to U.S. EPA Climate Partnership Programs, EPA-100-B-08-001, June 2008Programs, EPA-100-B-08-001, June 2008

More than 13,000 firms and other organizations More than 13,000 firms and other organizations participating in climate-related EPA Partnership participating in climate-related EPA Partnership ProgramsPrograms

The EPA Climate Leaders Program allows The EPA Climate Leaders Program allows companies to create a lasting record of its GHGs companies to create a lasting record of its GHGs emissions reductions activities and accomplishmentsemissions reductions activities and accomplishments

More information: (More information: (http://www.epa.gov/partners) )

A Business Guide to U.S. EPA A Business Guide to U.S. EPA Climate Partnership ProgramsClimate Partnership Programs Addressing climate change issues and COAddressing climate change issues and CO2 emissions emissions

represents business opportunities and advantages for represents business opportunities and advantages for becoming a Climate Leader such as:becoming a Climate Leader such as: Substantial energy cost savingsSubstantial energy cost savings Improved bottom lineImproved bottom line Improved operating efficienciesImproved operating efficiencies Improved risk managementImproved risk management Improved insurabilityImproved insurability Expanded market opportunitiesExpanded market opportunities Improved job satisfaction and worker productivityImproved job satisfaction and worker productivity Enhance brand and corporate reputationEnhance brand and corporate reputation

Climate Change Legislative Climate Change Legislative InitiativesInitiatives

Energy Policy Act of 1992Energy Policy Act of 1992 Required reporting of GHG emissionsRequired reporting of GHG emissions

Climate Stewardship and Innovation Act of 2007Climate Stewardship and Innovation Act of 2007 Requires a declining cap-and-trade systemRequires a declining cap-and-trade system

Electric Utility Cap-and-Trade ActElectric Utility Cap-and-Trade Act Establishes a cap-and-trade system for electric utilities Establishes a cap-and-trade system for electric utilities

onlyonly Global Warming Pollution Reduction Act of 2007Global Warming Pollution Reduction Act of 2007

Establishes emission and energy efficiency standardsEstablishes emission and energy efficiency standards Global Warming Reduction Act of 2007Global Warming Reduction Act of 2007

Establishes economy-wide emissions cap-and-trade Establishes economy-wide emissions cap-and-trade programprogram

Low Carbon Economy Act of 2007Low Carbon Economy Act of 2007 Establishes a GHG credit and allowance trading systemEstablishes a GHG credit and allowance trading system

America’s Climate Security Act of 2007America’s Climate Security Act of 2007 Establishes a GHG registry and trading programEstablishes a GHG registry and trading program

Regional Climate AgreementsRegional Climate Agreements

Regional Climate Agreements have been pursued in Regional Climate Agreements have been pursued in the absence of Federal Initiativesthe absence of Federal Initiatives

((http://www.pewclimate.org))

Source: State of the Voluntary Carbon Markets 2007, Ecosystems Marketplace/New Carbon Finance, July 2007.Source: State of the Voluntary Carbon Markets 2007, Ecosystems Marketplace/New Carbon Finance, July 2007.

Historically Traded Volume on Historically Traded Volume on the US Voluntary Carbon the US Voluntary Carbon

MarketMarket

Increasing interest in voluntary Increasing interest in voluntary Verified Emissions Reductions Verified Emissions Reductions (VERs)(VERs) Verification protocols criticalVerification protocols critical Great diversity of projects Great diversity of projects

and structuresand structures Growing sophistication of Growing sophistication of

both bids and offersboth bids and offers Project values dependent on Project values dependent on

buyer preferences:buyer preferences: TechnologyTechnology VintageVintage LocationLocation Social side-benefitsSocial side-benefits

Source: State of the Voluntary Carbon Markets 2007, Ecosystems Marketplace/New Carbon Finance, July 2007.Source: State of the Voluntary Carbon Markets 2007, Ecosystems Marketplace/New Carbon Finance, July 2007.

Voluntary GHG MarketsVoluntary GHG Markets

Carbon Trading Exchanges in Carbon Trading Exchanges in the U.S.the U.S.

Chicago Carbon Exchange (CCX)Chicago Carbon Exchange (CCX) Voluntary Carbon Offsets ProgramVoluntary Carbon Offsets Program ((http://www.chicagoclimatex.com))

New York Merchantile Exchange (NYMEX)New York Merchantile Exchange (NYMEX) New “Green Exchange” opened March 2008New “Green Exchange” opened March 2008 Carbon derivatives, NOCarbon derivatives, NOxx, SO, SO22 trading trading

((http://www.greenfutures.com) )

Chicago Climate ExchangeChicago Climate Exchange

Integrated GHG reduction and trading systemIntegrated GHG reduction and trading system CCX issues tradable Carbon Financial Instrument CCX issues tradable Carbon Financial Instrument

(CFI) contracts(CFI) contracts Types of projects:Types of projects:

Agricultural methaneAgricultural methane Coal mine methaneCoal mine methane Landfill methaneLandfill methane Agricultural soil carbonAgricultural soil carbon Rangeland soil carbon managementRangeland soil carbon management ForestryForestry Renewable EnergyRenewable Energy Ozone depleting substance reductionOzone depleting substance reduction

Third party verification and final check by Financial Third party verification and final check by Financial Industry Regulatory Authority (FINRA, formerly NASD)Industry Regulatory Authority (FINRA, formerly NASD)

CCX Carbon Credits CCX Carbon Credits ProgramProgram

Greenhouse GasEmission Reductions

Carbon Credit Program

• Eligibility Assessment • Protocol Development• Monitoring• Reporting• Verification• Registration

Carbon Credits(certified, tradable, $$)

Chicago ClimateExchange protocols

Achieved viaqualifying GHGemission reduction projects

Sell on CCX through an aggregator

Mechanics of CCX TradingMechanics of CCX Trading CCX RegistryCCX Registry

CCX Trading FloorCCX Trading Floor

CCX Carbon Offsets ProgramCCX Carbon Offsets Program

CCX Offsets and Early Action CCX Offsets and Early Action CreditsCredits

The Green ExchangeThe Green Exchange

Globally integrated marketplace for trading Globally integrated marketplace for trading environmental productsenvironmental products

Began trading March 2008Began trading March 2008 Trading Platform with financial products, expertise, Trading Platform with financial products, expertise,

and clearinghouse by NYMEX with environmental and clearinghouse by NYMEX with environmental markets leadership of Evolution Marketsmarkets leadership of Evolution Markets

Types of trades:Types of trades: Carbon – Futures, Options, SwapsCarbon – Futures, Options, Swaps U.S. Emissions (SO2 and NOx) – Futures, Options, U.S. Emissions (SO2 and NOx) – Futures, Options,

SwapsSwaps Coming soon – Renewable Energy, Voluntary Carbon Coming soon – Renewable Energy, Voluntary Carbon

Credits, CER Options, RGGI Allowances – Futures, Credits, CER Options, RGGI Allowances – Futures, Options, SwapsOptions, Swaps

Carbon RegistriesCarbon Registries

Department of Energy (DOE) Registry – National Department of Energy (DOE) Registry – National Voluntary Reporting of Greenhouse Gases Program Voluntary Reporting of Greenhouse Gases Program under section 1605(b) of the Energy Policy Act of 1992under section 1605(b) of the Energy Policy Act of 1992

California Climate Action Registry (CCAR)California Climate Action Registry (CCAR) Chicago Climate Exchange Registry (CCX)Chicago Climate Exchange Registry (CCX) Regional Greenhouse Gas Initiative Registry (RGGI)Regional Greenhouse Gas Initiative Registry (RGGI) Western Climate Initiative Western Climate Initiative Midwestern Greenhouse Gas Reduction AccordMidwestern Greenhouse Gas Reduction Accord The Carbon Trading Exchange and The Green The Carbon Trading Exchange and The Green

Exchange (recently formed)Exchange (recently formed)

US Commitments to Carbon US Commitments to Carbon ReductionsReductions

Two States: New Mexico and IllinoisTwo States: New Mexico and Illinois 284 U.S. Cities: Chicago, Boulder, …284 U.S. Cities: Chicago, Boulder, … 542 Universities and Colleges: Colby, …542 Universities and Colleges: Colby, … 27 States have Renewable Energy Portfolio Standards 27 States have Renewable Energy Portfolio Standards

- Renewable Energy Certificates (CERs)- Renewable Energy Certificates (CERs) Commitments for carbon emission reductions are being Commitments for carbon emission reductions are being

made voluntarily through the CCX and various made voluntarily through the CCX and various RegistriesRegistries

Through the CCX trading platform, states, counties, Through the CCX trading platform, states, counties, cities, municipalities are committing to 6% reductions in cities, municipalities are committing to 6% reductions in GHG emissions by 2010GHG emissions by 2010

U.S. registries include CCX, DOE, CCAR, and RGGIU.S. registries include CCX, DOE, CCAR, and RGGI

Carbon Trading and Carbon Trading and ForestryForestry

The IPCC reported in its third assessment that 10-30% The IPCC reported in its third assessment that 10-30% of human-induced global GHG emissions are due to of human-induced global GHG emissions are due to Land Use, Land Use Change, and Forestry (LULUCF). Land Use, Land Use Change, and Forestry (LULUCF). The IPCC concluded that globally, changes in forest The IPCC concluded that globally, changes in forest management could induce future carbon sequestration management could induce future carbon sequestration adequate to offset an additional 15-20% of COadequate to offset an additional 15-20% of CO22 emissions. Within the U.S., LULUCF activities in 2004 emissions. Within the U.S., LULUCF activities in 2004 resulted in a net carbon sequestration of 780.1 million resulted in a net carbon sequestration of 780.1 million tons COtons CO22 equivalent. This represented an offset of equivalent. This represented an offset of approximately 13 percent of total US COapproximately 13 percent of total US CO22 emissions, or emissions, or 11 percent of total GHG emissions in 2004 (EPA, 11 percent of total GHG emissions in 2004 (EPA, 2006). Source: 2006). Source: Forest Carbon Trading and Marketing in the United States, Ruddell, Walsh, and Kanakasabai, Oct., 2006. (http://www.fs.fed.us/ecosystemservices/pdf/forest-carbon-trading.pdf)

Carbon Trading and Carbon Trading and ForestryForestry

Non-governmental organizations involved with Non-governmental organizations involved with developing voluntary carbon markets in forestry in the developing voluntary carbon markets in forestry in the U.S.:U.S.: CarbonFund CarbonFund The Climate TrustThe Climate Trust National Carbon Offset CoalitionNational Carbon Offset Coalition PowertreePowertree Pacific Forest TrustPacific Forest Trust AgraGate Climate Credits CorpAgraGate Climate Credits Corp

These organizations work with established registries These organizations work with established registries and buyers to market forestry offset credits for carbon and buyers to market forestry offset credits for carbon emission reductionsemission reductions

Carbon Trading and Carbon Trading and ForestryForestry

The Kyoto Protocol authorized only afforestation and reforestation The Kyoto Protocol authorized only afforestation and reforestation activities and excludes soil carbon storage, sustainable forest activities and excludes soil carbon storage, sustainable forest management, and avoided deforestations.management, and avoided deforestations.

The CCX is the only exchange platform for trading forestry offset The CCX is the only exchange platform for trading forestry offset credits in the U.S. The Registries that are currently active in the credits in the U.S. The Registries that are currently active in the U.S. include the CCX, the DOE’s 1605(b) program, and the U.S. include the CCX, the DOE’s 1605(b) program, and the CCAR. However, these are all in the development phase and lack CCAR. However, these are all in the development phase and lack direction due to the absence of mandatory emissions reduction direction due to the absence of mandatory emissions reduction requirements and an established price of carbon emission requirements and an established price of carbon emission reductions.reductions.

Forestry credit issues: baseline setting, additionality, leakage, and Forestry credit issues: baseline setting, additionality, leakage, and permanencepermanence

““Carbon Credits: A possible source of new income for Missisippi Carbon Credits: A possible source of new income for Missisippi forest landowners”, Randy Rousseau, Tree Talk - Winter 2008forest landowners”, Randy Rousseau, Tree Talk - Winter 2008

American College and University American College and University President’s Climate Commitment President’s Climate Commitment

(ACUPCC)(ACUPCC) Agreement with signatures from 542 colleges and Agreement with signatures from 542 colleges and

universities as of May 7, 2008 universities as of May 7, 2008 Objective is to pursue “Carbon Neutrality”Objective is to pursue “Carbon Neutrality” Agreement calls for:Agreement calls for:

Institutional body to monitor and guide the process Institutional body to monitor and guide the process Conduct annual emissions inventory Conduct annual emissions inventory Formulate a carbon neutrality action plan Formulate a carbon neutrality action plan Develop a financing program to implement the plan Develop a financing program to implement the plan Incorporate “sustainability” into school’s academic Incorporate “sustainability” into school’s academic

experience experience First signatory to achieve carbon neutrality was the College First signatory to achieve carbon neutrality was the College

of the Atlantic in December of 2007of the Atlantic in December of 2007 Colby College, Maine, joined the commitment in May 2008 Colby College, Maine, joined the commitment in May 2008

American Colleges and Universities American Colleges and Universities RoleRolein Reducing Carbon Emissions in Reducing Carbon Emissions - Thesis paper by Jamie O’Connell, 2008- Thesis paper by Jamie O’Connell, 2008

Colleges and universities play a unique role in Colleges and universities play a unique role in society as centers of research and progressive society as centers of research and progressive thought. These institutions have a responsibility of thought. These institutions have a responsibility of educating and preparing the next generation of educating and preparing the next generation of leaders in every aspect of society. leaders in every aspect of society.

The United Nations International Panel on Climate The United Nations International Panel on Climate Change (IPCC) has stated that emissions must be Change (IPCC) has stated that emissions must be reduced by 50 to 85 percent below 2000 levels by reduced by 50 to 85 percent below 2000 levels by 2050, with peak CO2050, with peak CO22 occurring before 2015, to hold occurring before 2015, to hold

temperature increase to within 2.0 to 2.4 degrees temperature increase to within 2.0 to 2.4 degrees Celsius of the pre-industrial era (Dautremont-Smith et Celsius of the pre-industrial era (Dautremont-Smith et al. 2007a, IPCC 2007)al. 2007a, IPCC 2007)

Colleges and universities comprise a $317 trillion Colleges and universities comprise a $317 trillion industry that spends billions on energy consumption industry that spends billions on energy consumption and fossil fuel products (Dautremont-Smith et al. and fossil fuel products (Dautremont-Smith et al. 2007b) 2007b)

Given the role of higher education in preparing Given the role of higher education in preparing students to find solutions to climate change, the students to find solutions to climate change, the potential impact on markets for clean energy and potential impact on markets for clean energy and sustainable products, and the importance of tanking sustainable products, and the importance of tanking immediate climate action, Colby College embarked on immediate climate action, Colby College embarked on a study of the feasibility to achieve “carbon neutrality” a study of the feasibility to achieve “carbon neutrality” and the timeframe over which it could be reached.and the timeframe over which it could be reached.

American Colleges and Universities American Colleges and Universities Role…Role…

What is Carbon Neutrality?What is Carbon Neutrality?

Carbon NeutralCarbon Neutral is a term used to describe any is a term used to describe any organization, entity, or process that has a net organization, entity, or process that has a net greenhouse gas (GHG) emissions level of zero greenhouse gas (GHG) emissions level of zero (Dautremont-Smith et al. 2007a)(Dautremont-Smith et al. 2007a)

Net emissions are equivalent to the gross emissions Net emissions are equivalent to the gross emissions minus any carbon offsetsminus any carbon offsets

A A carbon offsetcarbon offset is any activity that reduces carbon is any activity that reduces carbon emissions so as to exactly compensate for a carbon emissions so as to exactly compensate for a carbon emitting activity elsewhere (Dautremont-Smith et al. emitting activity elsewhere (Dautremont-Smith et al. 2007a)2007a)

Thus organizations may reduce or eliminate emissions Thus organizations may reduce or eliminate emissions where possible and offset carbon emissions where where possible and offset carbon emissions where reduction or elimination of emission is not an option, or reduction or elimination of emission is not an option, or when it costs less to purchase offsets than to reduce when it costs less to purchase offsets than to reduce emissionsemissions

Process Steps to Evaluate the Process Steps to Evaluate the Feasibility of Carbon NeutralityFeasibility of Carbon Neutrality

1.1. Conduct and create a greenhouse gas emissions Conduct and create a greenhouse gas emissions inventory and establishment of an emissions inventory and establishment of an emissions baselinebaseline

2.2. Identify, investigate, and evaluate options for Identify, investigate, and evaluate options for reducing or eliminating emissions from individual reducing or eliminating emissions from individual sourcessources

3.3. Conduct modeling to predict and evaluation future Conduct modeling to predict and evaluation future emissions under different reduction scenarios emissions under different reduction scenarios

4.4. Develop timeframe and costing models for emission Develop timeframe and costing models for emission reductions for each source and for selected reductions for each source and for selected reduction scenariosreduction scenarios

5.5. Evaluate the role of offsets in achieving emissions Evaluate the role of offsets in achieving emissions and develop offsetting options and develop offsetting options

6.6. Prepare an implementation plan and costs for the Prepare an implementation plan and costs for the selected approach selected approach

Conducting Carbon Emissions Conducting Carbon Emissions InventoryInventory

The World Business Council for Sustainable The World Business Council for Sustainable Development (WBCSD) and the World Resources Development (WBCSD) and the World Resources Institute (WRI) have published the “Greenhouse Gas Institute (WRI) have published the “Greenhouse Gas Protocol: a corporate accounting and reporting Protocol: a corporate accounting and reporting standard” standard”

The standard is the most widely accepted set of The standard is the most widely accepted set of standards for both calculation of GHG emissions and standards for both calculation of GHG emissions and deciding which carbon sources should be included in deciding which carbon sources should be included in an inventory an inventory

The Campus Carbon Calculator version 5.0, an excel-The Campus Carbon Calculator version 5.0, an excel-based document created by an environmental non-based document created by an environmental non-governmental organization Clean-Air Cool-Planet was governmental organization Clean-Air Cool-Planet was utilized. The program contains a series of utilized. The program contains a series of spreadsheets that comprise three general modules: spreadsheets that comprise three general modules: data input, emissions factors, and summary. data input, emissions factors, and summary.

Basic data is collected from the college’s activities Basic data is collected from the college’s activities and loaded in. The calculator then uses these and loaded in. The calculator then uses these variables to calculate GHG emissions, and offsets variables to calculate GHG emissions, and offsets based on conversion factors stored in the emissions based on conversion factors stored in the emissions factors module. All emission and conversions factors factors module. All emission and conversions factors came from the US DOE, EPA or the USDOT.came from the US DOE, EPA or the USDOT.

The gross emissions, net emissions, and emissions The gross emissions, net emissions, and emissions by source for all GHG emissions are converted into by source for all GHG emissions are converted into metric tons of carbon dioxide equivalents (MTCDE) metric tons of carbon dioxide equivalents (MTCDE) and can be viewed in the summary module.and can be viewed in the summary module.

Conducting Carbon Emissions Conducting Carbon Emissions InventoryInventory

Defining the Scope of Defining the Scope of Emissions Emissions

at Colby Collegeat Colby College Not always clear which emissions are the Not always clear which emissions are the

responsibility of – or controllable by – the institution responsibility of – or controllable by – the institution pursuing neutralitypursuing neutrality College rented housing not owned by the college College rented housing not owned by the college Solid wastes leaving the grounds Solid wastes leaving the grounds Non-owned vehicle energy consumption for off-Non-owned vehicle energy consumption for off-

site students site students Emissions from energy production for energy Emissions from energy production for energy

used on-campus used on-campus

Adopted from the Greenhouse Gas Protocol: Scope 1, Adopted from the Greenhouse Gas Protocol: Scope 1, 2, and 3 category Emissions: 2, and 3 category Emissions: Scope 1 Emissions: defined as “all direct sources of Scope 1 Emissions: defined as “all direct sources of

GHG emissions from sources that are owned or GHG emissions from sources that are owned or controlled by the institution”controlled by the institution”

Scope 2 Emissions: encompasses emissions Scope 2 Emissions: encompasses emissions “associated with the generation of imported sources “associated with the generation of imported sources of energy”of energy”

Scope 3 Emissions: includes “all other indirect Scope 3 Emissions: includes “all other indirect sources of GHG emissions that may result from the sources of GHG emissions that may result from the activities of the institution by occur from sources activities of the institution by occur from sources owned or controlled by another company owned or controlled by another company

After categorizing emissions into Scope 1, 2, or 3, an After categorizing emissions into Scope 1, 2, or 3, an institution can then define its institution can then define its operational boundaryoperational boundary, or , or the sources and emissions for which it is responsiblethe sources and emissions for which it is responsible

Defining the Scope of Defining the Scope of Emissions Emissions

at Colby Collegeat Colby College

Emission Sources and CategoryEmission Sources and Category

Gross Greenhouse Gas Emissions, Gross Greenhouse Gas Emissions, Energy Use, and Building Area at Energy Use, and Building Area at Colby College from 1990 through Colby College from 1990 through

20072007A switch to “green electricity” in 2003, produced by A switch to “green electricity” in 2003, produced by biomass and hydroelectric power, caused a 34 percent biomass and hydroelectric power, caused a 34 percent drop in emissions and energy use. drop in emissions and energy use. The addition of two buildings receiving a Leadership in The addition of two buildings receiving a Leadership in Energy and Environmental Design (LEEDEnergy and Environmental Design (LEEDTMTM) ) certification from the U.S. Green Building Council’s certification from the U.S. Green Building Council’s LEED Green Building Rating SystemLEED Green Building Rating SystemTMTM..The new Alumni Center uses geothermal heating, a The new Alumni Center uses geothermal heating, a carbon-free source of heat. The Diamond Building carbon-free source of heat. The Diamond Building provides for more energy efficiency. provides for more energy efficiency.

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Fiscal Year

MM

Btu

x 1

0^1,

MT

CD

E, o

r sq

. ft.

x

10^

2

EnergyUse

GHGemissions

Buildingarea

Gross Greenhouse Gas Emissions, Gross Greenhouse Gas Emissions, Energy Use, and Building Area at Energy Use, and Building Area at Colby College from 1990 through Colby College from 1990 through

20072007

Energy Use per Square Foot of Energy Use per Square Foot of Building Space at Colby CollegeBuilding Space at Colby College

0.00

0.05

0.10

0.15

0.20

0.25

0.30

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

Fiscal Year

MM

Btu

/sq

. ft.

Greenhouse Gas Emissions by Greenhouse Gas Emissions by Source at Colby College 1990 Source at Colby College 1990

through 2007through 2007

0

5,000

10,000

15,000

20,000

25,000

30,000

90 97 98 99 00 01 02 03 04 05 06 07

Fiscal Year

MT

CD

E

Electricity

Residual oil

College relatedtravel

Commuters

Landfilled waste

Non-residual oilfuel

PPD vehicles

Fertilizer

Percent contribution to gross Percent contribution to gross greenhouse gas emissions by source greenhouse gas emissions by source

at Colby College in 2007at Colby College in 2007 1%

0.1%

Landfilled w

aste

Comm

uters

College transport

Residual oil

3%

Residual oil

College related travel

Commuters

Landfilled waste

Non-residual oil fuels

PPD vehicles

Fertilizer

Summary of Greenhouse Gas Summary of Greenhouse Gas Reduction Strategies at Colby Reduction Strategies at Colby

College and Their Impact on 2007 College and Their Impact on 2007 Gross EmissionsGross Emissions

OffsetsOffsets A carbon offset is any activity that reduces carbon A carbon offset is any activity that reduces carbon

emissions to compensate for carbon released by a emissions to compensate for carbon released by a different activity (Dautremont-Smith et al. 2007a) and different activity (Dautremont-Smith et al. 2007a) and may be used as a complement or a substitute for on-may be used as a complement or a substitute for on-campus reductionscampus reductions

Carbon offsets must be quantified and certified by third Carbon offsets must be quantified and certified by third parties and thus must be credible and must also be parties and thus must be credible and must also be “additional”“additional”

Additional means that for an emissions reduction Additional means that for an emissions reduction project to count as an offset, the reduction in carbon project to count as an offset, the reduction in carbon must not have otherwise occurred without the purchase must not have otherwise occurred without the purchase of the offset (Kollmuss and Bowell 2007). “Leakage” is of the offset (Kollmuss and Bowell 2007). “Leakage” is also another concept inherent in counting as an offset. also another concept inherent in counting as an offset. Leakage means that emission reductions resulting from Leakage means that emission reductions resulting from a project are offset by emissions increases resulting a project are offset by emissions increases resulting from moving essentially the same action to another from moving essentially the same action to another location. Emission reductions must also be cataloged location. Emission reductions must also be cataloged and tracked in order to not be “double-counted”.and tracked in order to not be “double-counted”.

Carbon offsets used to fulfill regulatory obligations, Carbon offsets used to fulfill regulatory obligations, such as the Regional Greenhouse Gas Initiative such as the Regional Greenhouse Gas Initiative (RGGI), or the Clean Development Mechanism (RGGI), or the Clean Development Mechanism (CDM) will be overseen by a regulatory body. For (CDM) will be overseen by a regulatory body. For voluntary carbon offsets, a third party must be voluntary carbon offsets, a third party must be engaged to verify that standards are met.engaged to verify that standards are met.

Offsetting activities considered by Colby College Offsetting activities considered by Colby College included:included: Composting Composting Renewable Energy Credits (RECs) Renewable Energy Credits (RECs) Forest Preservation Forest Preservation

OffsetsOffsets

Cost to Offset 2007 Gross Cost to Offset 2007 Gross Emissions by Source at Colby Emissions by Source at Colby

CollegeCollege

Forecasting Future Carbon Forecasting Future Carbon EmissionsEmissions

Evaluation of future facilities and expansions at Colby Evaluation of future facilities and expansions at Colby CollegeCollege

Evaluation of future community plans that could affect Evaluation of future community plans that could affect Colby CollegeColby College

Identification and evaluation of actions available to the Identification and evaluation of actions available to the college to reduce or eliminate carbon emissionscollege to reduce or eliminate carbon emissions

Development of likely scenarios for future activities Development of likely scenarios for future activities and emissions and emissions

Future Projected Greenhouse Gas Future Projected Greenhouse Gas Emissions at Colby College from 2007 Emissions at Colby College from 2007

through 2017through 2017 Scenario I – represents business as usual with no Scenario I – represents business as usual with no

community or college initiativescommunity or college initiatives Scenario II – represents business as usual for the Scenario II – represents business as usual for the

college but with the new proposed waste to electricity college but with the new proposed waste to electricity facility at the Norridgewock Landfill built and on-line in facility at the Norridgewock Landfill built and on-line in 2011 2011

Scenarios III – V show the potential impact of various Scenarios III – V show the potential impact of various levels of implementation of solar hot water on levels of implementation of solar hot water on emissions emissions

Scenarios VI – VII show the potential impact from Scenarios VI – VII show the potential impact from emissions modeling if existing boilers at the co-emissions modeling if existing boilers at the co-generation facility are converted to biomass boilers. generation facility are converted to biomass boilers. Scenario VI also assumes that waste is brought to al Scenario VI also assumes that waste is brought to al landfill with methane gas recapture and electricity landfill with methane gas recapture and electricity generation generation

Scenario VII assumes that the waste is brought to a Scenario VII assumes that the waste is brought to a mass burn incinerator with electricity generation mass burn incinerator with electricity generation

Future Projected Greenhouse Gas Future Projected Greenhouse Gas Emissions at Colby College after 2007, Emissions at Colby College after 2007,

through 2017through 2017

0

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4,000

6,000

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14,000

16,000

18,000

20,000

22,000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Fiscal Year

MT

CD

E

IIIIIIIVVVIVII

Gross Greenhouse Gas Emissions Gross Greenhouse Gas Emissions and the Cost of Offsetting at Colby and the Cost of Offsetting at Colby

College in 2017College in 2017

Gross Greenhouse Gas Emissions Gross Greenhouse Gas Emissions and the Cost of Offsetting at Colby and the Cost of Offsetting at Colby

College in 2017College in 2017 Discount rate of 3% used Discount rate of 3% used Does not include forest carbon sequestration Does not include forest carbon sequestration Converting to biomass for boiler fuel at Colby is Converting to biomass for boiler fuel at Colby is

anticipated to have a payback time of between 3.4 anticipated to have a payback time of between 3.4 and 3.9 years and cut fuel costs between 45 and 46 and 3.9 years and cut fuel costs between 45 and 46 percent percent

The question is not so much can Colby achieve The question is not so much can Colby achieve carbon neutrality, but when should Colby achieve carbon neutrality, but when should Colby achieve neutrality and by what means. Colby College can neutrality and by what means. Colby College can achieve carbon neutrality at a reasonable cost and achieve carbon neutrality at a reasonable cost and over a short timeframe over a short timeframe

RecommendationsRecommendations

Switch from residual oil to biomass at the Switch from residual oil to biomass at the cogeneration facility – top priority cogeneration facility – top priority

Monitor, encourage, and support the methane gas to Monitor, encourage, and support the methane gas to electricity facility for the Landfillelectricity facility for the Landfill

Continue with the purchase of green electricity Continue with the purchase of green electricity

Future building should be LEED certified and use Future building should be LEED certified and use carbon-free sources of energy such as biomass, carbon-free sources of energy such as biomass, geothermal, solar thermal and PV electricalgeothermal, solar thermal and PV electrical

Continue to refine the plan for carbon neutrality and prioritize Continue to refine the plan for carbon neutrality and prioritize actionsactions

Improve measurement techniques and data collectionImprove measurement techniques and data collection

Scope 3 emissions should still factor into the decision Scope 3 emissions should still factor into the decision making processmaking process

Reducing emissions should be favored over purchasing Reducing emissions should be favored over purchasing offsets when possibleoffsets when possible

Carbon sequestration on the college-owned forest lands Carbon sequestration on the college-owned forest lands should be further studied and pursued for carbon offsets if should be further studied and pursued for carbon offsets if allowableallowable

More information:More information: ((http://www.colby.edu/environ/documents/http://www.colby.edu/environ/documents/EmissAuditthesis.doc))

RecommendationsRecommendations