The importance of energy balances to estimate greenhouse gas emissions

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1 The importance of energy balances to estimate greenhouse gas emissions Roberta Quadrelli Head - Energy Balances, Prices, Emissions, Efficiency IEA Energy Data Centre Capacity Development for Mainstreaming Energy Sustainable Development Goals (SDGs), Targets and Indicators into Statistical Programmes in Selected Latin American Countries Panama, February 2015

2 GHG emissions: why do we focus on energy balances?

3 What sectors drive GHG emissions? Waste 3% Agriculture 8% Energy 82% CO 2 93% Industrial processes 7% Source: UNFCCC - based on Annex I only countries data for 2012 CH 4 6% N 2 O 1% Generally, energy-related CO 2 dominate GHG emissions

4 Note: Energy role varies across countries Share of energy emissions Source: IEA / EDGAR estimates, 2014 Always need to consider country circumstances

5 In all cases: an accurate accounting of all energy flows is essential Supply Transformation Final consumption The importance of the energy balance to estimate CO 2 emissions

6 How to estimate CO 2 emissions?

7 Focus on fuel combustion: the largest source of energy emissions Combustion of fossil fuels (coal, oil, natural gas) generates CO 2 Note: Biofuels are considered as not emitting within energy sector (IPCC Guidelines) Source: IEA World Energy Balances, 2014

8 For all products: estimating CO 2 emissions based on carbon conservation MODULE ENERGY CATEGORY FUEL COMBUSTION ACTIVITIES CATEGORY CODE 1A (FOR EACH SOURCE CATEGORY) SHEET CO 2, CH 4 AND N 2 O FROM FUEL COMBUSTION BY SOURCE CATEGORY TIER 1 Energy consumption CO 2 A B C D E Consumption (Mass, Volume or Energy unit) Conversion Factor (TJ/unit) Consumption (TJ) CO 2 Emission Factor (Kg CO 2 /TJ) CO 2 emissions (Gg CO 2 ) Crude Oil Energy Natural Gas Liquids Gasoline consumption Jet Kerosene Other Kerosene Gas/Diesel Oil Residual Fuel Oil C=(AxB) Calorific CO 2 emission x x = values factors E=(CxD) CO 2 Emissions Source: 2006 IPCC Guidelines Accuracy of energy data by product and by sector including calorific values reflected in emissions data quality

9 Strengthening the energy balance to produce accurate emissions indicators

10 1: Energy supply Basis for reference approach emissions ( top-down ) and quick indicator of overall trends Sources: IEA World Energy Balances, 2014 IEA CO emissions from fuel combustion, 2014

11 Note the relevance of international bunkers data Need accurate data on all supply elements Sources: IEA, 2014 IPCC Guidelines: international aviation and marine bunkers are not included in national emissions totals

12 Energy and emissions: understanding the relative weights of sources Sources: IEA World Energy Balances, 2014 IEA CO emissions from fuel combustion, 2014

13 A supply indicator: CO 2 /TPES carbon intensity of the energy mix Brazil Coal Oil Gas Nuclear Hydro Biofuels Other Total TPES (PJ) CO 2 ( Mt) CO 2 /TPES (tco2/tj) Total CO 2 /TPES Weighted average across supply fuels Need accurate supply data for all fuels including solid biofuels! Source: IEA CO 2 emissions from fuel combustion, 2014

14 2: Transformation sector Transforming energy sources Input (oil) Output (electricity) Need accurate input/output data by product type (e.g. electricity generation)

15 A transformation indicator: CO 2 /kwh the carbon intensity of electricity Cuba Costa Rica Brazil Guatemala Ecuador Panama World Total CO 2 /kwh: weighted average across all power plants For an individual power plant: Increases with carbon intensity of (fossil) fuel used Decreases with efficiency of electricity generation Need accurate data on amounts of combusted fuels and of electricity generated, by source

16 3: Final consumption Basis for Sectoral approach emissions estimates ( bottom-up )

17 Reconciling supply and demand sides Assessing differences to enhance data quality

18 Demand indicators: shares by sector Understanding country-specific drivers of emissions

19 Analysing indicators together to understand drivers of emission trends

20 What drives global CO 2 trends? Applying the Kaya identity : CO 2 = population x GDP/population x TPES/GDP x CO 2 /TPES Population Per capita GDP Energy intensity of the economy Carbon intensity of energy mix

21 Understanding different dynamics at country level Source: IEA CO 2 emissions from fuel combustion, 2014 CO 2 = population x GDP/population x TPES/GDP x CO 2 /TPES Population Per capita GDP Energy intensity of the economy Carbon intensity of energy mix

22 The importance of energy balances: bringing all pieces of information together Emissions indicators: another good reason to develop a complete and accurate national energy balance

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