ISO GHG Quantification and Verification Standards Dr. Chan Kook Weng, Malaysian Palm Oil Board, Convenor, ISO TC207 WG5

ISO Facts ISO is the International Organization for Standardization; ISO was established in 1947; ISO is an NGO based in Geneva; ISO is a federation of 140 national standards bodies and 500 international/regional liaison members; ISO is comprised of 2,850 technical committees, subcommittees and working groups; ISO has published over 13,000 international standards; ISO meetings attract some 30,000 experts a year; ISO standards are consensus based.

TC Environmental Management Working Group 5 on Climate Change   Established in   Malaysia-Canada leadership.   Developing new International Standard for quantifying, reporting and verifying organization- and project-level GHG emissions / removals. Working Group 5 on Climate Change   Established in   Malaysia-Canada leadership.   Developing new International Standard for quantifying, reporting and verifying organization- and project-level GHG emissions / removals. National “Mirror” Committees - Government- Business - Service Providers- NGOs National “Mirror” Committees - Government- Business - Service Providers- NGOs National International ISO WG5 on Climate Change

ISO Greenhouse gases (1 Standard in 3 Parts) Part 1: Specification for the quantification, monitoring and reporting of organization emissions and removals Part 2: Specification for the quantification, monitoring and reporting of project emissions and removals Part 3: Specification and guidance for validation, verification and certification ISO WG5 Deliverables

Part 1: Specification for the quantification, monitoring and reporting of organization emissions and removals (DRAFT) 1Scope 2Normative References 3Definitions 4Principles 5GHG inventory design and development 5.1Organizational boundaries 5.2GHG emission and removal boundaries 5.3Quantification of GHG emissions and removals 5.4GHG inventory components 5.4.1Gross GHG emissions and removals 5.4.2Internal GHG projects 5.4.3External GHG projects Targeted internal actions 5.4.5GHG inventory matrix 5.5Base year GHG inventory 5.5.1Base year selection/ establishment 5.5.2Base year GHG inventory adjustment 5.6Assessing and reducing uncertainty 6GHG inventory quality management 7GHG reporting 8Verification 8.1Preparing for third party verification 8.2First party verification

Part 2: Specification for the quantification, monitoring and reporting of project emissions and removals (DRAFT) 1Scope 2Normative references 3Definitions 4Principles 5Requirements for GHG projects 5.1The GHG project cycle 5.2General requirements 5.3GHG project planning 5.3.1Project elements 5.3.2Baseline elements 5.3.3GHG emissions reductions and removal enhancements 5.3.4Quality, monitoring and reporting elements 5.3.5Validate the GHG project 5.4GHG project implementation – Monitor, quantify and report 5.4.1Implement project master plan procedures 5.4.2Report on GHG project implementation 5.4.3Verify the GHG project assertion

Part 3: Specification and guidance for validation, verification and certification (DRAFT) 1Scope 2Normative references 3Definitions 4Principles 5Validation and verification requirements 5.1 General 5.2 Quality control 5.3Validation or verification objectives, scope, and criteria 5.4Strategic review 5.5GHG information sample design 5.6Preparation for the validation or verification 5.7Assessment against principles and requirements of a GHG scheme or standard or internal programmes 5.8Assessment of the internal control environment 5.9Assessment of GHG information 5.10Assessment of the GHG assertion 5.11Completion of the validation or verification 5.12Validation report 5.13Validation and verification statement 5.14Certification of GHG performance

ISO WG5 Schedule st Working Draft 12/026/026/0312/036/0412/046/05 1st2nd WG5 Working Drafts WG5 Meetings WG5 Actual Dates months ISO Target Dates  1st Committee Draft International Standard Final Draft International Standard International Standard WG5 Committee Drafts 1st Next Meeting, March 2004, UK 

The ISO Value Add Process  Systematic participation by up to 140 countries and liaison bodies.  ISO standards represent international consensus.  ISO standards are “living documents”. Verifiability  WG5 intends to develop GHG quantification standards that can be verified by independent third parties.  WG5 is developing a validation/verification standard. Infrastructure  ISO federation includes extensive network of national bodies and associated accreditation/verification systems.  Opportunity to reduce transaction costs. Reputation  The ISO mark has credibility.  ISO standards are used as international benchmarks of good practice.

Consistency Issues Entity vs. Project  Consistency important in both areas (eg, markets, transaction costs).  Perhaps more challenging for projects given technical complexities (eg, baseline, additionality, leakage).  “Technical” and “GHG scheme/regime” components. Important Areas  Boundaries (eg, organizational, project, emissions).  Baseline, additionality, leakage rules.  Level of assurance (eg, 1 st, 2 nd, 3 rd party validation / verification). “Quality” of GHG Units  Diminish market liquidity (eg, ability to buy and sell at will) in some segments?  Increase transaction costs, slow down investment?  Decrease market confidence, increase public skepticism. Assuring Consistency  International standards.   ISO WG5’s stated goal is that ISO should be compatible with the GHG Protocol.

Guiding Principles Technical rigour. Speed to market. Extensive participation. Policy/regime neutral.