Carbon Footprinting: advancing company capabilities for future EU standard / requirements & Ecolabel Igor Davydenko & Richard Smokers, TNO

CONTENT EU and Paris targets GHG reduction targets Transport GHG emission reductions: FACTOR 6 EC position on carbon footprinting Carbon footprinting standardization: GLEC Framework LEARN Carbon Footprinting trials Policy and other developments 2 08 June 2017

Paris Agreement a long-term goal of keeping the increase in global average temperature to well below 2°C above pre-industrial levels; to aim to limit the increase to 1.5°C, since this would significantly reduce risks and the impacts of climate change; 3 08 June 2017

Official EU targets Key EU targets for 2020 20% cut in greenhouse gas emissions compared with 1990 20% of total energy consumption from renewable energy 20% increase in energy efficiency Key EU targets for 2030 At least 40% cut in greenhouse gas emissions compared with 1990 At least 27% of total energy consumption from renewable energy At least 27% increase in energy efficiency Long-term goal By 2050, the EU aims to cut its emissions substantially – by 80-95% compared to 1990 levels as part of the efforts required by developed countries as a group. Turning Europe into a highly energy efficient and low-carbon economy will also boost the economy, create jobs and strengthen Europe's competitiveness. 4 08 June 2017

Overall climate goal EU: -80% (to 95%) in 2050 relative to 1990 Transport sector is only sector with growing GHG emissions. Further volume growth up to 50% until 2050. Source: Roadmap for moving to a competitive low-carbon economy in 2050 5 08 June 2017

Reduction goal Paris: Freight transport CO2-emissions freight transport in EU CO2 historical trend CO2 reference trend assuming equal “CO2 productivity” relative to 2015 CO2 goal (60% reduction relative to 1990 in 2050) 2030: 20% reduction relative to 2008 2050: 60% reduction relative to 1990 Note: Reduction goals freight transport assumed equal to overall reduction goal for transport sector in EU Whitepaper (2011) Freight volume growth 1990-2050: 250% Reduction of absolute emissions: 60% Per ton-kilometre transported: FACTOR 6! Indicative graph, based on: "EU Energy, transport and GHG emissions, Trends to 2050", European Commission 2013 6 08 June 2017

Carbon footprinting practice Operators A way to differentiate from the competition Optimization of operations and cost reductions (KPI based) Shippers Green credentials Transport and logistics cost reduction Corporate responsibility targets, CSR reporting 7 08 June 2017

Our understanding of carbon footprinting LEARN Kick-off Meeting Our understanding of carbon footprinting method to generate data on GHG emissions from transport services; comparability of GHG performance of different transport operations; link between reducing GHG emissions and improving cost efficiency; criterion in the transport decisions; better choices and easier marketing of cleaner transport solutions; motivation to introduce emission-reducing measures; great potential for the improvement of the efficiency of transport operations; reducing emissions, combating the climate change; win-win situation for the businesses and the society.

EU policy view Source: Fact-finding study in support of the development of an EU strategy for freight transport logistics Introduction of a standardized carbon footprint methodology, CE Delft, 2014 9 08 June 2017

EC targets for LEARN project LEARN Kick-off Meeting EC targets for LEARN project support the development of the EU CF policy; reach broad consensus on the harmonised CF framework; create a coordinated network of key stakeholders (EU and international) involved in the CF harmonisation process; build upon the past and on-going initiatives and projects; avoid the creation of additional layer in the CF harmonisation process; avoid too narrow approaches: deliver results to be replicable/used in the entire EU transport sector; explore conditions for introduction of an EU eco-label scheme.

EcoLabels 11 08 June 2017

GLEC Framework: answer for the standardization needs 12 08 June 2017

Goals of LEARN trials Test GLEC Framework based GHG computations and footprinting in complex Supply Chain settings with the aim of getting emission data resulting from door-to-door movement of goods Help companies set up or enhance their current carbon footprinting capabilities Conduct test in different settings: Shippers LSP / 4PL / Control Tower Physical Transport Service Provider and Facility Operators

Test Benefits and expectations What benefits can companies expect? Support on logistics carbon accounting and reporting Introduce newcomers to logistics carbon accounting and learn from other companies Help prepare for logistics carbon reporting to customers Help solve specific issues companies face in carbon accounting Explore the use of generated data to improve reporting and decision-making Identify opportunities for emission reductions Recognition of companies in their carbon accounting efforts in the LEARN project Influence on future carbon accounting standards and related policies What are we asking companies to do? Collaborate with existing business partners for a selected logistics supply chain to calculate the carbon footprint, based on the GLEC Framework, with support from LEARN partners Allocate resources and make data available – companies retain full ownership of their data Provide feedback on gaps, challenges and opportunities in applying the methodology Help articulate the business case for logistics carbon accounting Make main results available for a published case study Give suggestions on how carbon accounting can be reflected in a label to recognize company efforts 14 08 June 2017

Test Cases Testbed partner status No CF program Newbie Data ready / accumulation Program member Integrated in bus. proc. Need for GHG reduction realized How? Where to start? What? Data collection, footprinting, choices L&G GFE GFA *** Carbon measures integrated decisions

Test Goals: Physical Transporter / Facility Scope: physical transport or facility operations of the company (GHG protocol Scope 1) Aim: get kg of CO2(e) emissions per shipment and / or normalized unit of work related to a shipment Attention: Scope 3 upstream reporting capability, emission data reporting

Relevant national / local policy developments Cities (Green Deal) Zero emission city logistics Municipalities consider to close city centres for non-ZEVs Demand for zero emission buses Sustainable logistics Carbon footprinting Eco-labelling National demonstration programmes National sustainable mobility policies NL fuel mix strategy 17 08 June 2017

OEMs see only modest role for improvements at the vehicle level… >20% CO2-reduction (3.5% p.a.) in 2014-2020 through an Integrated Approach : 6% through vehicle measures (fleet level) 2.5% through alternative fuels 13% through operations 18 08 June 2017

Multilevel Energy Optimisation Connections between system levels Integrated Approach is more than stacking all possible measures Multilevel Energy Optimisation Connections between system levels 19 08 June 2017

All hands on deck… LT goal can only be attained if all elements of the SYSTEM contribute… 20 | Sustainable (freight) transport MEO = Multi-level energy optimisation 21 June 2016

Questions? ? 21 08 June 2017