Greenhouse Gas Emission Inventorization in Oil & Gas Sector. CII Godrej GBC, Hyderabad. Climate Change. Impact of GHG on climate change

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1 Greenhouse Gas Emission Inventorization in Oil & Gas Sector CII Godrej GBC, Hyderabad Climate Change Impact of GHG on climate change Proven beyond doubt Several countries Already impacted by climate change Businesses, agriculture, services, economy affected Need to evolve a holistic approach globally to combat climate change More onus on industry to accept & discharge responsibilities

2 GHG Inventorization Quantification of total Green House Gas (GHG) emissions arising from Business activity The six greenhouse gases covered by the Kyoto Protocol Carbon Dioxide CO 2 Methane CH 4 Nitrous Oxide N 2 O Perfluoro Carbons Hydro Fluoro Carbons PFC HFC Sulphur Hexa Fluoride SF 6 GHG Concentration levels GHG Unit GWP 1 CO 2 ppm CH 4 ppb N 2 O ppb CFC 12 ppt HFC 134a ppt SF 6 ppt GWP Global Warming Potential Source : National Oceanic and Atmospheric Administration

3 Why GHG Inventorization? Inventorization of emission and setting targets in accordance with globally acceptable standards Direct reduction in energy consumption Reduction in energy costs power, fuel & transport Proactive approach to establish GHG baseline and reduction Gearing for Voluntary Emission Reduction (VER) Markets Fulfilling its social commitment of being an environmentally conscious company and working towards sustainable development GHG Protocol Standards A Corporate Accounting and Reporting Standard Project Accounting Protocol Measuring to Manage: A Guide to Designing GHG Accounting and Reporting Programs Designing a Customized GHG Calculation Tool Land Use, Land-Use Change and Forestry Guidance for GHG Project Accounting Guidelines for Quantifying GHG Reductions from Corporate Module Project Module

4 Global Initiatives Several Initiatives across the world Voluntary targets Canada - 20% below 2006 level by 2020 US - 17% below 2005 level by 2020 EU % below 2005 level by 2020 Russia 25% below 1990 level by 2020 China - 40% reduction emissions per GDP compared to 2005 by 2020 Post Copenhagen All countries to announce voluntary targets for reduction Global Initiatives Leading retail chains Walmart, Tesco Insist on Carbon Footprint Basis for customer buying All leading companies ready with Carbon Footprint & Mitigation

5 GHG Reduction Targets Global companies GHG Targets GE 1% yearly from 2004 to 2012 California Portland Cement 9% per production index from 2003 to 2012 Holcim US emissions reduction by 12% from 2000 to 2008 Dupont 15% reduction from 2004 to 2015 National companies Ambuja Cement 20% reduction in 2012 compared to 1990 levels Mahindra & Mahindra 5% by compared to GHG Reduction Targets (Oil & Gas) Global companies GHG Targets Shell Direct emissions 67 Mil T in 2009 (11% lower than 2008) Voluntary target for % lower than 1990 level Total Direct emissions Mil T in 2009 (3.8% lower than 2008) Voluntary target for % lower than 2008 levels Chevron Direct emissions Confederation Mil of Indian T Industry in 2009 (3.8% lower than 2008)

6 India & Climate Change Govt of India Committed to reduce GHG emission intensity of GDP by 20-25% between 2005 and 2020 PM s council on Climate Change released National Action Plan on Climate Change 8 National Missions as Way Forward Several efforts taken up India & Climate Change Recent Initiatives 1. Expert Group on Low Carbon Strategy for Inclusive Growth set up To develop roadmap for India s low carbon development Group s recommendations will become part of India s 12 th Five-Year Plan, effective Carbon Tax on Coal to Fund Clean Energy A clean energy cess on Rs. 50/ton on domestically produced and imported coal. The expected earnings from this cess is around USD 500 million for the financial year

7 India & Climate Change Recent Initiatives 3. Perform, Achieve & Trade (PAT) for Industrial Energy Efficiency 4. National Mission on Sustainable Habitat approved 5. Jawaharlal Nehru National Solar Mission (JNNSM) launched MW of solar power by Green India Mission (GIM) as part of NAPCC 7. Sub-National State-level Actions under preparation 8. Guidelines for industry New cement plants GHG Emissions to be less than Case Studies

8 Six prong approach Case Study : Shell 1. Increase the efficiency of operations 2 % energy saving at all manufacturing facilities 2. Establish a substantial capability in CCS 4 Projects 5.5 million tonnes 3. Technologies to increase efficiency & reduce emissions Introduced Cansolv Technology at a coal-fired power station Steam and chemicals used to capture CO 2 and sulphur dioxide gases 4. Develop low-co 2 sources of energy 9 billion litres of biofuels 5. Help customers use less energy and emit less GHG Shell FuelSave Introduced in 5 countries WAM Foam Technology Confederation for laying of Indian roads Industry -30% less CO2 emission 6. Work with governments for more effective GHG Case Study : Total Reduce flaring of associated gas Developing it locally, converting it to LNG, reinjecting it into fields and other solutions. Optimize energy efficiency Target: : 1% reduction annually in Refining 2% reduction annually in Exploration & Production and Petrochemicals Helping customers shrink their environmental footprint Total Ecosolutions program Certified Products and Services (EU) 500,000 metric tons of carbon emissions annually Carbon capture and storage 120,000 metric tons of carbon emissions (Pilot), Oxy fuel combustion Renewable Energy 155 MW Solar Power (MASDAR)

9 Case Study : Chevron Reduce flaring of associated gas 8% reduction in flares, Converting it to LNG, reinjecting it into fields or commercialization. Optimize energy efficiency % reduction from 1992 levels in all operations Helping customers shrink their environmental footprint Total Ecosolutions program Certified Products and Services (EU) 500,000 metric tons of carbon emissions annually Carbon capture and storage (CCS) 3.4 million metric tons of carbon emissions Renewable Energy 110 MW Geothermal Powerplant (Darjat, Indonesia) 650,000 metric tons of CO2 emissions reduced annually Case Study : Logistics Majors FedEx Reduced aircraft CO2 emissions by 3.7 %/ton mile over the past 3 years By replacing Boeing 727 aircraft with Boeing 757 planes, fuel consumption reduction by 36% while providing 20% more payload capacity Wallenius Wilhelmsen Logistics WWL (global shipping and logistics company) reduced its GHG emissions by 32 percent in 2009 DHL Emission reduction target of 30% over 12 years DHL GoGreen Express - customers offset shipping emissions. Reusable envelope to ship and return legal-size documents.

10 Case Study : ONGC Detailed action plan for Carbon Neutrality Methane recovery 3.2 Million cu.m of Methane saving in DNA approved CDM projects Constructing 4 green buildings Platinum Rating under USGBC s LEED rating system All buildings being developed as CDM projects ONGC has already set up 50 MW wind turbine project Developed as India s largest CDM project on renewable energy (Registered for CER of 85,762 Annually for 21 years) To sum up Immediate Step: Carbon Footprint assessment Evolving business-specific GHG mitigation plan Preparedness for future voluntary / mandatory requirements Guidelines for decision making with GHG emissions in context Commit for Voluntary targets for GHG Reduction Internal / external Display its social & environment commitment to its stakeholders Public reporting (eg., Confederation ITC, of Dr Indian Reddy Industry Labs, Infosys, Mahindra)

11 Thank you P V Kiran Ananth Senior Counsellor Confederation of Indian Industry CII - Godrej Green Business Centre, India Tel: Dir: Fax: kiran.ananth@cii.in /