Carbon footprint and GHG Inventories : two approaches for a better understanding of climate issues

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1 Carbon footprint and GHG Inventories : two approaches for a better understanding of climate issues Monday, 7th of December 2015 COP21 Le Bourget - France

2 Definition Carbon Footprint of a country Carbon footprint of an organisation, an enterprise

3 Carbon Footprint : a question of scope Carbon footprint of a country Direct household s emissions (energy consumption) Households

4 Carbon Footprint : a question of scope Carbon footprint of a country Emissions associated with exports Domestic economic activities Emissions from domestic production to satisfy domestic demand Direct household s emissions (energy consumption) Households

5 Carbon Footprint : a question of scope Carbon footprint of a country Emissions associated with exports Domestic economic activities Emissions from domestic production to satisfy domestic demand Direct household s emissions (energy consumption) Households Emission stemming from France = National INVENTORY (UNFCCC)

6 Carbon Footprint : a question of scope Carbon footprint of a country Emissions associated with exports Domestic economic activities Emissions from domestic production to satisfy domestic demand Direct household s emissions (energy consumption) Households Emission stemming from France = National INVENTORY (UNFCCC) Emissions related to final consumption in France = CARBON FOOTPRINT

7 Carbon Footprint : a question of scope Carbon footprint of a country Economic activities abroad Emissions associated with exports Domestic economic activities Emissions from domestic production to satisfy domestic demand Direct household s emissions (energy consumption) Emissions abroad for the production of imported goods to satify domestic demand Households Emission stemming from France = National INVENTORY (UNFCCC) Emissions related to final consumption in France = CARBON FOOTPRINT

8 Carbon Footprint : a question of scope Carbon footprint of an organisation, an enterprise Total amount of greenhouse gases emissions, directly and indirectly caused by an activity. Scope 1 : direct emissions on site Scope 2 : indirect emissions related to the energy use Scope 3 : other indirect emissions related to goods and services purchased, waste treatment, transport of employees,

9 Conference program 1. What does the carbon footprint show at the international level? Mr. Norihiko YAMANO, OECD 2. What are the carbon footprint detailed results for France? Mr. Jean-Louis PASQUIER, French Ministry of Ecology 3. How useful are indirect emissions in sectoral approaches? Mr. Romain POIVET, French Environment and Energy Management Agency 4. How are carbon footprint and indirect emissions included in French mitigation policies? Mr. Gilles CROQUETTE, French Ministry of Ecology

10 International comparisons Mr. Norihiko YAMANO, OECD

11 OECD CO2 embodied in trade (2015ed) Main data sources OECD ICIO IEA CO2 emissions from fuel combustion Methodology: CO2 multiplier * final demand CO2 multiplier is estimated by multiplying the intensities of the production-based emissions by sector with the global Leontief Inverse from ICIO note: Production-based emissions and foreign final demand are adjusted for expenditures by non-residents in domestic territories Coverage 61 Countries + Rest of the world (with flexible regional aggregates e.g. EU28, ASEAN) 34 industries (two digit ISIC Rev. 3 based)

12 Consumption-based and production-based emissions

13 Net CO 2 imports: selected countries OECD Non-OECD

14

15 Share of CO 2 emitted abroad in total CO 2 embodied in domestic final demand (G20 and OECD average, 2011)

16 Policy implications and actions Global efforts on reducing emissions should understand the interdependence between policy measures implemented in countries: environment, energy, trade and industrial policies Robust methodologies and improved understanding of consumption-based emissions can be an important complement to production-based measures Extensions: More detail industry More countries Computing challenges More interpretations (bilateral / technology )

17 Further readings and databases OECD work on trade in carbon dioxide emissions (data and methodology) OECD.ICIO Trade in Value Added OECD STI Scoreboard Thank you!

18 Analysis of the French carbon footprint Mr. Jean-Louis PASQUIER, French Ministry of Ecology

19 Agenda Carbon footprint versus GHG national inventory Respective trends of the carbon footprint and the GHG national inventory Evolution of the internal and external components of the carbon footprint Carbon footprint by consumption purpose

20 Millions of tonnes of CO 2 equivalent Carbon footprint versus national GHG inventory France, Mt CO 2 e soit 10.6 tonnes/capita Emissions associated with imports Emissions from the domestic production dedicated to the domestic demand Households' direct emissions (car and heating) Carbon footprint 460 Mt CO 2 e soit 7.3 tonnes/capita Emissions associated with exports Emissions from the domestic production dedicated to the domestic demand Households' direct emissions (car and heating) National inventory (territory) Source : SOeS, based on Citepa, Insee, Eurostat, IEA, French custom statistics

21 Carbon footprint of France versus national GHG inventory France, from 1990 to 2012 Millions of tonnes of CO 2 equivalent 800 Carbon footprint National inventory (territory) p CO2 CO2 CH4 CH4 N2O N2O Total carbon footprint Total emissions from the national territory Source : SOeS, based on Citepa, Insee, Eurostat, IEA, French custom statistics P : preliminary estimate

22 Millions of tonnes CO 2 equivalent 700 Recent evolution of the carbon footprint of France Domestic versus external component 600 Emissions associated with imports for final use Emissions associated with imports for intermediate consumption Emissions from national production to satisfy domestic demand p Source : SOeS, based on Citepa, Insee, Eurostat, IEA, French custom statistics Direct emissions from households (cars and heating)

23 tonnes of CO 2 equivalent per capita 3,0 Composition of the carbon footprint of France s consumption by purpose (year 2010) 2,5 2,0 1,5 Direct emissions from households (heating, cars & motorcycles, cooking, lown mowers...) Emissions of Imports for final use 1,0 Emissions of imports for intermediate consumption 0,5 0,0 Housing Transport Food Other goods & services Healthcare, education, public services Equipment, clothing Source : SOeS, based on Citepa, Insee, Eurostat, IEA, French custom statistics Emissions of the Domestic production for the domestic final demande

24 For more information (french and english version) (french and english version)

25 Carbon footprint and Sectoral approaches Mr. Romain POIVET, French Environment and Energy Management Agency Climate strategy for organizations

26 AGENDA Context of use Beyond direct emissions Limits and Added value Developing Sectoral Guidances

27 Since 2000 Companies assess and disclose their GHG emissions Methodologies are well known and consistent but really direct emissions focused ADEME supported the Bilan Carbone volontary program that enabled 5000 corporate carbon footprints Context of use

28 Beyond direct emissions Main direct emissions are already known and included in mandatory programs like EU ETS and so on Being only direct emissions focused : Let think that some business sectors are insignificant or not concerned regarding climate change Miss the value chain vision Miss the risks and opportunities vision Business sector (France) Inventory Agriculture, hunting 1 Electricity, heat & steam supply 2 Land transport services 3 Other non-metallic mineral products 4 Chemical industry 5 Business sector (France) Footprint Agriculture, hunting 1 Agri-food industry 2 Construction work 3 Chemical industry 4 Coke and refined petroleum products 5

29 Beyond direct emissions Breakdown of direct and indirect upstream GHG emissions from contributor business sectors to national consumption (except energy consumption from households) Data 1. Agriculture, hunting and related services 10. Agrifood industry 11. Construction work 5. Chemical Industry 63% = Median for french indirect + imported emissions +++ contribution Coke and refined petroleum products 2. Electricity, heat & steam supply 24. Motor vehicles, trailers and semi-trailers 7. Basic metal 3. Transports terrestres 4. Other non-metallic mineral products 15. Retail trade services 17. Human health services 9. Air transport 21. Accommodation and food services 13. Public administration and defence services 26. Rubber and plastics products 12. Paper and paper products 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% SCOPE 3 Imported emissions SCOPE 3 French indirect emissions Scope 2 (Electricity) Scope1 (Direct Emissions)

30 Beyond direct emissions Top-down vision confirmed by bottom-up vision AGRIFOOD INDUSTRY (Bottom-up) Direct French Emissions (Scope1) 25% Electricity (Scope2) 1% AGRIFOOD INDUSTRY (Top-Down) Indirect imported Emissions (Scope3) 26% French Indirect Emissions (Scope3) 55% Direct French Emissions (Scope1) 17% Electricity (Scope 2) 2% Based on final consumption (French data 2007) French Indirect Emissions + Imported Emissions 74% Based on 14 French companies (Région Basse Normandie, ADEME Basse Normandie, ADEME ; Juin 2011)

31 Limits and added value Limits : Inherent rules of Input-Output matrix For now, downstream emissions are not allocated from consumers to providers. Added value : Identify hotspots New glasses for decision-makers : Risk, Opportunities, Resiliency Starting point for reduction action-plans and Climate strategy Useful data for others sector : emission factor, proxy, benchmark Developping Corporate Carbon Footprint Sectoral Rules

32 Developing Sectoral Guidances Nearly 20 Sectoral Guidances developped in France since 2009 with Business Representatives Federations Focus on real and relevant climate stakes for sectors and companies Prioritize relevant emissions categories Share rules within business sector Enhance the quality of companies GHG footprint assessing

33 THANKS FOR YOUR ATTENTION VISIT :

34 Carbon Footprint in French regulation Mr. Gilles Croquette, French Ministry of Ecology

35 National carbon footprint

36 French law on energy transition The law on energy transition was adopted in August 2015 with ambitious targets for energy and GHG emissions Reduce by 50% our final energy consumption in 2050 (compared to a 2012 baseline) with an intermediary objective of 20% reduction to be achieved in 2030 Reduce by 30% of fossil energy consumption in 2030 Reduce by 40 % GHG emissions of France in 2030 (compared to 1990) (a target of 75 % in 2050 was adopted in 2005) A trajectory for the price of carbon is defined (56 /tco2 in 2020 and 100 /tco2 in 2030)

37 National carbon footprint Context : adoption of a first low carbon strategy including five-years budgets for GHG emissions (for the 1st strategy : , and ) This strategy must take into account the emissions occuring abroad : the increase of carbon content of imported products must not replace domestic mitigation efforts The national carbon footprint is also one of the ten new indicators for wealth (law on new wealth indicators in public policies 1st report adopted in October 2015)

38 The French carbon footprint There is no quantitative target for emissions corresponding to consumption in the national strategy Emissions from consumption are depending on many factors (intensity of trading, policies of other countries...) The uncertainty attached to the results is high The target for emissions reductions remains the national emissions (measured in the national inventory) The notion of carbon footprint is very useful but it is complementary to commitments by countries to mitigate domestic emissions

39 A carbon footprint : for what use? The communication of information on carbon footprint is a first important step It allows consumers to realize the impact of their decisions It integrates emissions from international transport which are not included in inventories For designing new policies and measures The transfer of emissions abroad has to be considered This is already assessed for policies like biofuels, EU-ETS and must be extended to all policies and measures It helps to foster policies promoted by the law on energy transition like energy efficiency, circular economy, waste reduction or eco-design

40 Carbon footprint of organizations and products

41 GHG accounting and action plans A principle of mandatory GHG accounting adopted in 2010 for companies (> 500 employees), local authorities and national public services GHG emissions must be assessed every 3 years (since 2012) The accounting of direct emissions and indirect emissions from energy use is mandatory Organizations are encouraged to take into account other indirect emissions An action plan must be adopted The documents are published and available for everyone The next steps for GHG accounting and action plans in 2016 : Centralization of documents on a national platform Financial sanctions

42 Obligations for specific actors Information on GHG emissions of transport services (since 2013) New obligations introduced in 2015 (law on energy transition) In annual reports of companies : information on impacts of activities and use of goods and services produced For companies participating in a financial market : financial risks induced by climate change Carbon footprint of financial assets and exposure to climate risks for insurance companies, institutions for complementary retirement provision, investment company with variable capital...

43 Thank you for your attention

44 CONCLUSION

45 Questions?

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