renewable energy and carbon accounting...project directly reduces consumer’s purchases from the...
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Renewable Energy and Carbon AccountingJustin Brant, GHG & Sustainability PracticeNovember 1, 2017
http://energy.cadmusgroup.com/sustainability
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Overview
Scope 2 Accounting Overview
Challenges with Scope 2 Accounting
Enbridge Case Study
Options to Reduce Scope 2 Emissions
Carbon Accounting Lessons Learned
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Energy and environmental consulting firm with 550 employees
33 years of
experience in energy program evaluation
Energyindustryleaders
Understand energy efficiencyand management
Leaders in GHG quantification and reporting
Since1983
Climate risk and resilienceexpertise
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GHG Emissions Accounting
Image Credit: The Greenhouse Gas Protocol
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Corporate Standard
Reporting Emissions from Electricity
Scope 2 Guidance (amendment to CS)
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Scope 2 Guidance Overview
Provides consistent guidance on how to incorporate various energy agreements and electricity procurement choices into your inventory
Provides two methods of calculating your GHG emissions:
Companies with operations in a jurisdiction with the means to track renewable energy products shall report using both methods
Location‐Based
Market‐Based
Includes operations in U.S., Canada, and Europe
Emissions reduction targets are set using one of the available methods
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Dual Reporting of GHG Emissions from Electricity
Quantify emissions using regional
emissions intensity
Emissions reflect electricity
procurement choices
Market‐BasedLocation‐Based
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Emissions Factor Hierarchy
EF= Emissions Factor
Market‐BasedLocation‐Based
• Energy Certificates/Contracts(e.g., RECs, GOs, PPAs)
• Supplier‐Specific EF• Residual Mix EF• Regional/Subnational EF• National EF
• Regional/Subnational EF• National EF
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Enbridge Case Study
Historically developed location‐based GHG inventory
Wanted to account for nuclear and wind power purchases and align with best practices
Began with US liquid pipeline operations (150 pumping stations)
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Enbridge Case Study
2,450,000
2,500,000
2,550,000
2,600,000
2,650,000
2,700,000
2,750,000
2,800,000
Location‐Based Market‐Based
Scop
e 2 GHG
Emiss
ions (M
T CO
2e)
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Corporate Renewable Energy
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Options to Reduce Scope 2 Emissions
Energy Efficiency
Power Purchase Agreement (PPAs)
Owned onsite renewable generation
Switch to electricity provider with cleaner
mix, if possible
Bundled green products from utility or electricity supplier
Unbundled clean energy attributes (e.g., RECs or GOs)
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Clean Energy Attributes
REC
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Source: EPA Green Power Partnership
What is a Power Purchase Agreement?
Contract between specific consumer and energy generators to purchase electricity and/or RECs
• Generation can be offsite or onsite
• Generation from renewable energy project directly reduces consumer’s purchases from the grid
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• Renewable energy project and buyer do not need to be in same grid region
• Acts as a type of price hedge on total electricity spending
Source: EPA Green Power Partnership
What is a Virtual Power Purchase Agreement?
Financial agreement between renewable energy generation and buyer
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Carbon Accounting Lessons Learned
Ensure renewable energy meets GHG accounting
requirements
Develop corporate energy strategy
Maintain ownership of RECs
Must use market‐based accounting
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Must maintain RECs from PPAs or onsite renewables to include in GHG inventory
Maintain Ownership of RECs
If you sell the RECs you cannot account for generation as zero carbon
RECs must be retired, redeemed, or claimed to account for energy as zero carbon
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If you have operations in U.S.A, Canada, or Europe must use dual reporting
Must Use Market‐Based Accounting
Base year may need to be recalculated
Emissions reduction targets must use market‐based emissions to take credit for renewable energy
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Renewable energy production must be in same “electricity market” as consumption
Ensure Renewable Energy Meets GHG Accounting Requirements
Date of energy generation must be from same calendar year as consumption (+/‐ 6 months)
If no RECs, agreement should be verified by a third party
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Treat energy like a portion of your supply chain
Develop Corporate Energy Strategy
Assess energy procurement options holistically across organization
Invest in energy efficiency opportunities before renewable energy
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21LOGOHERE
Facebook.com/CadmusGroup
@CadmusGroup
Linkedin.com/company/the‐cadmus‐group
Justin BrantAssociate, GHG & Sustainability Reporting Practice
Boulder, CO303‐389‐[email protected]://energy.cadmusgroup.com/sustainability