Solving Challenges in GHG Quantification & Verification

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1 Solving Challenges in GHG Quantification & Verification June 2, 2010 Presented by Diane Wittenberg, Executive Director at NIST GHG Emissions Quantification and Verification Strategies Workshop

2 The Climate Registry MISSION: To standardize and centralize high quality GHG data into a North American GHG registry to support voluntary and mandatory reporting programs BOARD: 13 Canadian Provinces/Territories 41 U.S. States, plus D.C. 6 Mexican states 4 Native Sovereign Nations MEMBERS: 420 Members June 2,

3 What We Do Maintain a robust, voluntary, entity-wide reporting program across North America Assist organizations in preparing and reporting their GHG inventories Coordinate with mandatory GHG reporting programs Develop reporting protocols, performance metrics Create a community of members to share best practices June 2,

4 Our Community of Members includes June 2,

5 Supply Chain Challenges Data Collection from Suppliers and Customers is the primary challenge Improvements can be implemented through: Supply Chain Partner Education Standardized Data Collection Practices Data Quality Assessment Standardized Descriptions of Uncertainty Enhancements to corporate inventory databases to enable customer use

6 International GHG Reporting Country specific emissions information is not always available or accessible Research needs to be conducted in key areas like landfills and wastewater, domestically and internationally. Centralized emission factor resource would allow for consistent and streamlined emissions accounting and reporting worldwide.

7 Verification Challenges Separation of financial auditing standards from ISO standards Quantifying inherent uncertainty in GHG measurement and estimation methodologies Sector-specific reporting and verification considerations Overcoming misconceptions regarding the cost of verification and educating reporters regarding the benefits of verification June 2,

8 GHG Verification & Financial Auditing The Climate Registry Sets forth verification requirements in it s General Verification Protocol Consistent with ISO Requires Verification Bodies to be accredited to ISO International Auditing & Assurance Standards Board (IAASB) Issued consultation paper Assurance on a GHG Statement No mention of ISO or ISO June 2,

9 Sector-Specific Considerations Some industries have unique structures and/or complex sources to quantify: Consortiums Process and fugitive emissions The Registry maintains reporting & verification protocols for: Local Government Organizations Electric Power Sector (EPS) Oil & Gas (O&G) Production The Registry requires Verification Bodies to be specifically accredited for EPS & O&G June 2,

10 Cost of Verification Factors that affect cost include: 1. Complexity of organization 2. Number of facilities 3. Geographic boundaries 4. Number of emission years for simultaneous verification 5. Emission source types 6. GHGs reported 7. Organizational boundary method June 2,

11 Cost of Verification Factors that affect cost include: 8. Reporting methodologies 9. Data monitoring systems 10. Data management 11. Proximity to simplified estimation threshold 12. Quality assurance Check out Guidance to Understanding Factors that Affect Verification Costs Home Page > Member Resources > Verification > Verification Tips and Resources June 2,

12 Why is Verification Important? GHG emissions result from multiple sources and can come from complex processes. Verification ensures conformance with: Reporting requirements Minimum quality standard (95% accuracy threshold) Principles (completeness, transparency, and accuracy) Accountability Places credible data in the public domain June 2,

13 What Will You Gain from Verification? Identify errors voluntarily No financial or legal penalties Improve your data management systems High confidence in the quality of your data before it meets the public eye Reporting helps you to link your costs to your organizational efficiency & performance June 2,

14 ?? Questions June 2,

15 THANK YOU for your participation! Diane Wittenberg For Verification Questions: Jackie Zorovich, Manager of Verification Services (201) For Inventory Development and Reporting Questions: Member Services x 3 June 2,

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