Methodological guidelines for greenhouse gas emissions monitoring in organizations of the Russian Federation

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1 National Carbon Sequestration Foundation Methodological guidelines for greenhouse gas emissions monitoring in organizations of the Russian Federation Kazakov Roman Head of department, PhD July,

2 Legal basis for the GHG Guidelines development The action plan to ensure by 2020 the reduction of GHG emissions to 75 percent of emissions in 1990, approved by Governmental Degree 504 on 02/04/2014: item 3 Development of the methodological guidelines for quantifying of greenhouse gas emissions by organizations performing economic and other activities in the Russian Federation; implementation period June 2015; responsible agencies Ministry of Natural Resources and Ecology, Ministry of Economic Development, Ministry of Energy. Draft of the methodological guidelines is prepared by: National Carbon Sequestration Foundation; Institute of Global Climate and Ecology. 2

3 Goal and objectives of the GHG Guidelines Goal methodological support of the GHG monitoring, reporting and verification (MRV) system implementation in the Russian Federation and promotion of the GHG emission reductions. Objectives: 1. Drafts of methodological guidelines for monitoring of GHG emissions in the regions and organizations of the Russian Federation; 2. Common principles, requirements, steps, indicators and forms of documents for periodic monitoring and reporting of GHG emissions in the regions and organizations of the Russian Federation; 3. Consistency between the national GHG inventory of the Russian Federation and created MRV system of GHG emissions in the regions and organizations of the Russian Federation. 3

4 Main stages of the GHG Guidelines development Period September October 2014 November 2014 December 2014 January 2015 February March 2015 April May 2015 June 2015 July 2015 Stage description Open tender by Ministry of Natural Resources and Ecology for GHG methodological guidelines preparation Conclusion of governmental contract for GHG methodological guidelines preparation Collection, compilation and systematization of international and Russian experience in the area of MRV implementation Preparation of draft of the methodological guidelines; Consultation with Stakeholders Regulatory Impact Assessment; Consultation with Stakeholders Revision and approval of the methodological guidelines by the Ministry of Natural Resources and Ecology Registration of the methodological guidelines in the Ministry of Justice 4

5 Methodological basis for the GHG Guidelines development (1) o o o ISO Standards: - ISO :2006 Greenhouse gases -- Part 1: Specification with guidance at the organization level for quantification and reporting of greenhouse gas emissions and removals; - ISO/TR 14069:2013 Greenhouse gases -- Quantification and reporting of greenhouse gas emissions for organizations -- Guidance for the application of ISO ; - ISO/DIS Stationary source emissions -- Determination of greenhouse gas (GHG) emissions in energy-intensive industries; - ISO :2013 Calculation method of carbon dioxide emission intensity from iron and steel production -- Part 1: Steel plant with blast furnace; - ISO :2013 Calculation method of carbon dioxide emission intensity from iron and steel production -- Part 2: Steel plant with electric arc furnace (EAF). IPCC Guidelines: IPCC Guidelines for National Greenhouse Gas Inventories. GHG Protocol Standards: - A Corporate Accounting and Reporting Standard; - Sector-specific calculation tools. 5

6 Methodological basis for the GHG Guidelines development (2) o International experience: - EU (Commission regulation (EU) No 601/2012 of 21 June 2012 on the monitoring and reporting of greenhouse gas emissions pursuant to Directive 2003/87/EC of the European Parliament and of the Council; The Monitoring and Reporting Regulation General guidance for installations); - UK (Environmental Reporting Guidelines: Including mandatory greenhouse gas emissions reporting guidance); - USA (Mandatory Reporting of Greenhouse Gases, EPA); - Canada (Technical Guidance on Reporting Greenhouse Gas Emissions, Facility Greenhouse Gas Emissions Reporting); - Kazakhstan (Guidelines for the calculation of greenhouse gas emissions for various industries approved by the Ministry of Environment). o National experience: - LUKOIL (oil and natural gas production), GAZPROM (natural gas production), AEROFLOT (aviation), MOSENERGO (electricity generation), RUSAL (aluminum production), RUSSIAN STEEL ASSOCIATION (iron and steel production). 6

7 Structure of the GHG Guidelines Main sections of the GHG Guidelines: I. General provisions II. Procedures for the quantitative determination of GHG emissions III. Content and design of the initial data and the calculation of GHG emissions IV. Content and design of the report on GHG emissions Annexes to the GHG Guidelines: 1. Categories of GHG emissions sources 2. Classification of typical emissions sources by economic activities 3. Methods for GHG emissions calculation by sources 4. Reference values of global warming potentials 5. Forms for recording initial data and results of GHG emissions calculation 6. Forms for preparation of the report on GHG emissions 7. Forms for recording emissions sources and monitoring parameters 8. Examples of GHG emissions calculation by source categories 7

8 Basic principles and terms used in the GHG Guidelines Basic principles: o Completeness (coverage of significant GHG emissions > 5%) o Accuracy (ensuring the best available accuracy) o Comparability (national, regional and organizational levels) o Transparency o Consistency o Responsibility o Openness Basic terms: o Greenhouse gases (GHG) o Direct and Indirect GHG emissions o Source of GHG emissions o Category of GHG emission sources o Reporting organization o Reporting period 8

9 Stages of GHG emissions quantification in organization and reporting of results Stage of work Documents 1 2 Determination of organizational boundaries Identification of GHG emissions sources 1 Records of the sources of GHG emissions in the organization; Records about the parameters and the 3 Choice of GHG emissions calculation methods methods of GHG emissions calculation in the organization (Frequency: once in 5 years) 4 Collection of initial data for GHG emissions calculation 5 Calculation of GHG emissions and GHG inventory of organization 2 Records of initial data and calculations of GHG emissions for the reporting year including GHG inventory of organization (Frequency: annually) 6 Reporting of results of GHG emissions calculations 7 Submission of report on GHG emissions to the authorized body 3 Report on GHG emissions in organization and Explanatory notes (Frequency: annually) 9

10 Categories of GHG emissions sources Category of GHG emission sources GHG emissions 1 Stationary fuel combustion СО 2 2 Flaring СО 2, СН 4 3 Fugitive emissions СО 2, СН 4 4 Oil refining СО 2 5 Coke production СО 2 6 Cement production СО 2 7 Lime production СО 2 8 Glass production СО 2 9 Ceramic production СО 2 10 Ammonia production СО 2 11 Nitric acid and other nitrogen compounds production N 2 O 12 Petrochemical production СО 2 13 Fluorine-containing compounds production SF 6, CHF 3 14 Iron and steel production СО 2 15 Ferro-alloys production СО 2 16 Primary aluminum production CF 4, C 2 F 6, СО 2 17 Other industrial processes СО 2 18 Aviation СО 2 19 Railway transport СО 2 10

11 GHGs and Global Warming Potentials (GWP) GHG Code of substance 1 Chemical formula GWP 2 1 Carbon dioxide 0380 СО Methane 0410 СН Nitrous oxide 0381 N 2 O Trifluoromethane (HFC-23) 0966 CHF Perfluoromethane (PFC-14) 0965 CF Perfluoroethane (PFC-116) 0963 C 2 F Sulfur hexafluoride 0369 SF List and codes of pollutants / NII Atmosphere, Saint Petersburg, Decision 24/СР.19 Conference of the Parties to the UNFCCC. 11

12 Methods of GHG emissions determination and initial data sources Methods of GHG emissions determination: o Calculation based on the activity data and emission factors; o Calculation based on the mass balance approach; o Calculation based on the periodic measurement of GHG emissions; o Continuous measurement of GHG emissions. Sources of initial data: - activity data: o Results of direct instrumental measurements; o Results of calculations based on the direct instrumental measurements; o Results of calculations based on the data on supply, shipment and stocks change. - emission factors: o Results of laboratory tests; o Data from the quality certificates provided by supliers; o Reference data provided in the GHG guidelines; o Reference data from other sources. 12

13 Recommended forms for recording information about emissions sources and monitoring parameters Category of GHG emission sources GHG emissions source / group of sources Name Description Accounted GHG Parameters for GHG emissions calculation Comments Parameters for GHG emissions calculation Name Units of measurement Data source / method of measurement Uncertainty Frequency of registration Responsible person for recording Comments

14 Recommended form of GHG inventory compilation Indicator 1 GHG emissions, СО 2 -equivalent total for organization by categories and emission sources : 2 СО 2 emissions total for organization by categories and emission sources : 3 СH 4 emissions total for organization by categories and emission sources : Period Year 1 Year 2 Year 3 Change, % in comparison to the first year 14

15 Report on GHG emissions in organization for a reporting year Indicator Data for reporting year СО 2 СН 4 N 2 O CF 4 C 2 F 6 CHF 3 SF 6 Total, СО 2 -eq. Data for previous year Total, СО 2 -eq GHG emissions in organization (total) by source category: 1 Stationary fuel combustion 2 Flaring 3 Fugitive emissions 4 Oil refining 5 Coke production 6 Cement production 19 Railway transport 15

16 Main features of the GHG Guidelines for organization in Russia o o o o o o Comprehensive unified methodological tool for GHG emissions accounting; No requirement for instrumental measurements of GHG emissions; Consistency with international standards and guidelines on GHG emissions monitoring and reporting; Maximum use of the monitoring and reporting experience of Russian companies; Standardized forms for GHG emissions accounting and results reporting; Flexible approach to: Determination of organizational and operational boundaries of GHG emissions accounting; Choice of calculation methods; Choice of initial data sources. 16

17 Further stages for development of MRV methodology Period August 2015 June 2016 Stage Approbation of GHG Guidelines, revision and approval of the changes (if necessary) July 2016 June 2017 Monitoring of GHG emissions in organizations and preparation of monitoring reports for Expansion of MRV coverage by inclusion of new organizations and categories GHG emissions: - Waste; - Water transport; - Vehicles; - Energy indirect emissions Further improvement of MRV in Russian Federation 17

18 Potential problems of MRV implementation in Russia (1) 1. Lack of practical examples (templates, guidances) for GHG monitoring and reporting in different economic sectors; 2. Unavailability of national emission factors for specific fuels, raw materials, products, and indirect energy emissions; 3. Absence of decisions on key issues of MRV implementation: - Criteria and procedures for identification of the reporting organizations; - Corporate / plant specific reporting; - Accounting of GHG / pollutants emissions; - Regional / centralized approach for reporting data collection; - Verification by the authorized body / accredited bodies; - Responsibility of organizations; - Compensation mechanisms of unreasonable costs. 18

19 Potential problems of MRV implementation in Russia (2) 4. Absence of the authorized body for the collection, verification and registration of GHG emissions reports provided by organizations; 5. Lack of regulations obliging organizations to carry out GHG monitoring and reporting and establishing verification procedures; 6. Lack of information and analytical systems for collection, processing and recording data on GHG emissions and efficient interaction between the participants of MRV; 7. Absence of mechanisms to ensure consistency and comparability of data on GHG emissions between the organizations, regions of the Russian Federation and the national inventory; 8. Insufficient awareness of organizations about MRV implementation in the Russian Federation and their responsibilities of GHG monitoring and reporting. 19

20 National Carbon Sequestration Foundation Thank you for attention! , Moscow, Varshavskoe shosse, build. 36/8 Tel/fax: (499)

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