Taiwan Specification for Product Carbon Footprint

Taiwan Specification for Product Carbon Footprint
Following Carbon Footprints: A New Road to Carbon Reduction International Forum Taiwan Specification for Product Carbon Footprint Yuh-Ming Lee, Ph.D. Professor Institute of Natural Resource Management National Taipei University January 19, 2010

Content International Standards for Product Carbon Footprint
Ⅰ UK: PAS 2050 Japan: TS Q 0010 ISO 14040/14044 WRI/WBCSD Product Life Cycle Accounting ISO Product Carbon Footprint - Part 1 Taiwan Specification for Product Carbon Footprint Ⅱ Overview Background and Development Criteria, Procedure and Application Conclusion Ⅲ

1. Scope, 2. Normative References, 3.Terms and Definitions
I. International Standards for Product Carbon Footprint UK: PAS Specification for the assessment of the life cycle greenhouse gas emissions of goods and services Developed by: BSI, Carbon Trust, Defra ... Date of Publication: October, 2008 A publicly available specification, not yet a British Standard (BS) Key Documents Overview PAS 2050 PAS 2050 Forward, Introduction 1. Scope, 2. Normative References, 3.Terms and Definitions 4. Principles and Implementation Guide to PAS 2050 5.Emission Sources, Offsetting and Unit of Analysis 6.System Boundary 7. Data Code of Good Practice for Product GHG Emissions and Reduction Claims 8.Allocation of Emissions 9.Calculation of the GHG emissions of products 10.Claims of Conformity

I. International Standards for Product Carbon Footprint
UK: PAS 2050 Key Elements Contents 1. Product Scope All goods and services 2. Accounting Gasses Gases listed in the latest version available from the IPCC: CO2, CH4, N2O, substances controlled by Montreal Protocol, hydrofluorocarbons, Perfluorinated compounds, Fluorinated ethers 3. Life Cycle B2C (cradle to grave) and B2B(cradle to gate) 4. Reference Standard ISO and ISO 14044 5. Calculation Carbon Footprint of an activity = activity data x emission factor x GWP (expressed as CO2e) 6. Data Quality Time-related coverage, geographical specificity, technology coverage, accuracy, precision, completeness, consistency, consistency, reproducibility, data sources 7. Allocation 1. Dividing the unit process 2. Expanding the product system 3. be allocated in proportion to economic value 8. Communication 1. Third Party Certification 2. Other Party 3. Self Verification

Japan: TS Q General principles for the assessment and labeling of Carbon Footprint of Products Developed by: Japanese Standards Association (JSA) Date of Announcement: April, 2009 A Technical Specification (TS), not yet a Japan Standard Key Documents Overview TS Q 0010: 2009 TS Q 0010 Normative document to guide PCF quantification method and processes Forward Introduction 1. Scope 2. Normative References 3.Terms and Definitions Product Category Rules 4. Quantification Method for CFP 5. Communication Method for CFP 4.1 Subject of Quantification 4.2 Quantification Coverage 4.3 Quantification Method 4.4 Product Category Rules (PCR) 4.5 Calculations at Each Stage 5.1 Basic Communication Rules 5.2 Selective/Optional Actions Supportive documents under development to make sure the consistency of PCF quantification

Japan: TS Q 0010 Key Elements Contents 1. Product Scope All goods and services 2. Accounting Gasses Six gases covered by Kyoto Protocol: CO2, CH4, N2O, HFCs, PFCs, SF6 3. Life Cycle B2C (cradle to grave); B2B (national label cannot be issued) 4. Reference Standard ISO and ISO 14044 5. Calculation GHG emissions = ∑ (activityi x GHG emission factori ), where i stands for a process 6. Data Quality Secondary data must clarify: stages and coverage of data to be collected, places of collection, and collection period 7. Allocation Allocation methods to be established in PCRs 8. Communication Absolute value of CO2e of a product carbon footprint labeled

CNS ISO 14040/ Environmental management -- Life Cycle Assessment Developed by: International Organization for Standardization (ISO) Date of Publication: July, 2006 Adopted as Taiwan Standard (CNS) Key Documents Overview ISO 14040 ISO 14044 Environmental management – Life cycle assessment Principles and framework Forward, Introduction 1. Scope, 2. Normative References 3.Terms and Definitions 4. Methodological framework for LCA 5.Reporting 6.Critical Review ISO 14044 4.1 General Requirements 4.2 Goal and Scope Definition 4.3 Life Cycle Inventory Analysis (LCI) 4.4 Life Cycle Impact Assessment (LCIA) 4.5 Life Cycle Interpretation 5.1 General 5.2 Third-Party Report 5.3 Disclose to the Public 6.1 General 6.2 Review by Experts 6.3 Review by Panel of Interested Parties Environmental management – Life cycle assessment Requirements and guidelines

ISO 14040/14044 Key Elements Contents 1. Product Scope All goods and services 2. Subjects of Assessment Any environmental issues of concern or impact category 3. Life Cycle B2C (cradle to grave), B2B (cradle to gate) and others 4. Reference Standard ISO or ISO 14044 5. Calculation No specific formulae 6. Data Quality Time-related coverage, geographical specificity, technology coverage, accuracy, precision, completeness, consistency, consistency, reproducibility, data sources 7. Allocation 1. Dividing the unit process 2. Expanding the product system 3. be allocated in proportion to economic value 8. Communication Third-party Reports

WRI/WBCSD -- Product Life Cycle Accounting and Reporting Standard Developed by: WRI/WBCSD Date of Publication: December, 2010 Review draft for Stakeholder Advisory Group: Nov., 2009 Documents in the Pipeline Overview Scope 3 Accounting and Reporting Standard 1. Introduction 8.Allocation 2. Principles of Product GHG Accounting 9.Assessing Data Quality and Uncertainty Quantify and report major GHG emissions in the value chain at the company/organization level (scope 3) 3. Overview of Product GHG Accounting 10. Calculating GHG Emissions 4. Establishing the Methodology 11.Assurance Product Life Cycle Accounting and Reporting Standard 5. Defining the Functional Unit 12.Reporting 6.Boundary Setting 13.Accounting for GHG Emission Reductions Quantify and report product -level emissions 7.Collocting Data Appendix A-F

ISO 14067-1 & ISO 14067-2 to be released in Mar. 2010
I. International Standards for Product Carbon Footprint ISO —Carbon Footprint of Products --Part 1: Quantification Developed by: International Organization for Standardization (ISO) Estimated Date of Publication: March, 2010 Development of ISO 14067 Overview ISO/TC 207 (Environmental Management) ISO include: Part 1—Quantification Part 2—Communication SC7 SC1 SC2 SC3 SC4 SC5 GHG Management Labelling: based on ISO 14020 GHG Emission Inventory : based on ISO 14064 Life Cycle Assessment: based on ISO 14040 2007/6 SC 7: Greenhouse Gas Management and Related Activities 2008/1 SC 7 First Meeting: WG 2 was formed to study GHG management in the value or supply chain Labelling 14067 GHG 2008/4 Part 1 WG 2 First Meeting: a new standard for Product Caron Footprint recommended ISO 14025 ISO Part 2 2008/6~2009/6 ISO/TC 207 Bogota/Cairo Meeting: working draft of ISO 14067 LCA ISO & ISO to be released in Mar. 2010 ISO14040/44 ISO14040

ISO/WD Key Elements Contents 1. Product Scope All goods and services 2. Accounting Gases Gases listed in IPCC reports: CO2, CH4, N2O, substances controlled by Montreal Protocol, Hydrofluorocarbons, Perfluorinated compounds, Fluorinated ethers 3. Life Cycle B2C (cradle to grave), B2B(cradle to gate) and others 4. Reference Standard ISO 14040, ISO 14044, ISO 14025, ISO , ISO 5. Calculation GHG Emissions x GWP (100-year time horizon) 6. Data Quality Time-related coverage, geographical specificity, technology coverage, accuracy, precision, completeness, consistency, reproducibility... 7. Allocation 1. Dividing the unit process 2. Expanding the product system 3. Allocating relationships between the products and functions 8. Communication ISO Part 2 -- Communication

Reference of Standards GHG Emission Inventory
I. International Standards for Product Carbon Footprint Reference of Standards Product Carbon Footprint Japan TS Q 0010 UK PAS 2050 ISO/WD ISO/WD ISO 14040/44 Life Cycle Assessment ISO GHG Emission Inventory ISO 14025 Type 3 Eco-Labeling ISO Standards

Taiwan Specification for Product Carbon Footprint
II. Taiwan Specification for Product Carbon Footprint Overview Taiwan Specification for Product Carbon Footprint General Principles (1-4) PCF Methodology (5) Emission Sources and Offsetting (6) Data and Calculation (7-8) Reporting and Verification (9-10) Forward Introduction 1. Scope 2. Normative Reference 3. Terms and Definition 4. Principles 5.1 General Requirements 5.2 Goal and Scope Definition of the Quantification of PCF 5.3 Functional Unit 5.4 Product System and System Boundary 5.5 Material Contribution and Threshold 5.6 System Boundary Exclusion 6.1 Subjects of GHG Emission Assessment 6.2 Sources of GHG Emission 6.3 Treatment of Specific GHG Emission Sources 6.4 Offsetting 7.1 General 7.2 Data Quality Req. 7.3 Primary Activity Data 7.4 Secondary Data 7.5 Renewable Energy-Specific Emission Factors 7.6 Data Collection Period 7.7 Data Sampling 7.8 Supporting Documents 8.1 Allocation 8.2 Calculation of PCF 8.3 Time Period for Assessment of GHG Emissions 9.1 General Requirements 9.2 Additional requirements and guidance for third-party reports 9.3 Confidentiality 10.1 General 10.2 Validity of Assessment 10.3 Claims of Conformity 10.4 Identification of the Basis of a claim

II. Taiwan Specification for Product Carbon Footprint
Overview Key Elements Contents 1. Product Scope All goods and services 2. Accounting Gases Gases listed in IPCC reports: CO2, CH4, N2O, substances controlled by Montreal Protocol, Hydrofluorocarbons, Perfluorinated compounds, Fluorinated ethers 3. Life Cycle B2C (cradle to grave), B2B (cradle to gate) and others 4. Reference Standard ISO 14040/44, ISO 14025, ISO , WD , PAS 2050 5. Calculation GHG Emissions x GWP (100-year time horizon) 6. Data Quality Time-related coverage, geographical specificity, technology coverage, accuracy, precision, completeness, consistency, reproducibility... 7. Allocation 1. Dividing the unit process 2. Expanding the product system 3. Allocating relationships between products and functions 8. Communication 1. Third Party Certification 2. Other Party 3. Self Verification

Background and Development Relevant Government Agencies LCA Experts Verification Bodies Companies with PCF experiences 2009/06-08 2009/11/20 2010/01 Analysis of Data Collection and PCF Quantification Methodology Second Expert Technical Consultation Meeting Evaluation and Approval by EPA for announcement 2009/04-06 Research on International Standards/Specifications of PCF and Literature Review 2009/09/08 2009/12/31 Final Version First Expert Technical Consultation Meeting PAS 2050 TS Q 0010 ISO/WD ISO 14040/44 Others Relevant Government Agencies LCA Experts Verification Bodies Companies with PCF experiences

2.Checking Boundaries and Prioritization
II. Taiwan Specification for Product Carbon Footprint Criteria. Procedure and Application Development based on the 5 steps of Product Carbon Footprint Calculation identified in the Guide to PAS 2050 1.Building Process Map 2.Checking Boundaries and Prioritization Establish the functional unit to be assessed Building up life cycle process map, including material acquisition, manufacture, transportation, use and final disposal and waste treatment 3. Data Collection B2C or B2B Perform High Level Analysis; prioritizing large emission sources; system boundary exclusions 4.Calcuation Collecting activity data of each stage of product life cycle and relevant emission factors Data Quality Requirements, Primary Activity Data, Secondary Data 5.Reporting Allocation Calculation of Product Carbon Footprint Reporting of PCF analysis must be unbiased, comprehensive and accurate Self Verification, Other Party Verification or Third-Party Certification Reporting Format and Content of Disclosure

The functional unit must be measurable and meaningful in a way that reflects how the product is actually consumed by the end user For example, compact discs are usually sold as a pack of 50 discs that is hence a meaningful functional unit II. Taiwan Specification for Product Carbon Footprint Criteria, Procedure and Application Step Criteria Provisions Clause Functional Unit 5.3 If the product to be assessed is not a final product, a B2B (cradle to gate) life cycle scoping is suggested. if the product is sold to consumers a B2C (cradle to grave) life cycle scoping is suggested. If there exists a relevant Product Category Rule (PCR), the system boundary shall be defined in accordance with the boundary conditions specified in the PCR. Building a Process map (1/5) System Boundary 5.4

Boundary and Priorities
B2C: Life cycle include stages from raw materials, through manufacture, distribution and sales, to consumer use and finally disposal and/or recycling B2B: the calculation of footprint stops at the point where the product is delivered to another manufacturer II. Taiwan Specification for Product Carbon Footprint Criteria, Procedure and Application Step Criteria Provisions Clause Adopt the materiality threshold of 1% to ensure that very minor sources of life cycle GHG emissions do not require the same treatment as more significant sources At least 95% of the anticipated life cycle GHG emissions of the product must be accounted Basic Processes within Boundary ~ Human labor, administration, marketing and sales, private transportation of employees, transportation from point of sales to home, and business travel of employees Boundary and Priorities (2/5) Material Contribution 5.5 System Boundary Exclusions 5.6

Gases listed in the latest available reports from the IPCC II. Taiwan Specification for Product Carbon Footprint Criteria, Procedure and Application The assessment shall include GHG emissions arising from processes, inputs and outputs in the life cycle of a product: energy use, combustion processes, chemical reactions, refrigerant loss and other fugitive gases, operations, service provision and delivery, livestock and other agricultural processes, and waste Step Criteria Provisions Clause GHGs to be Assessed 6.1 GHG emissions arising from fossil carbon sources shall be calculated; GHG emissions arising from combustion of biomass carbon can be excluded from the calculation Sources of GHG Emission 6.2 Boundary and Priorities (2/5) Treatment of Specific GHG Sources 6.3

Where atmospheric CO2 is taken up by a product, and that product is not a living organism, the impact of this carbon storage over the 100-year assessment period shall be included in the assessment of the life cycle GHG emissions of the product II. Taiwan Specification for Product Carbon Footprint Criteria, Procedure and Application Step Criteria Provisions Clause Where GHG emissions arising from the supply chain are stored, that proportion of the emissions modeled as stored for 100 years or more following the formation of the product shall be treated as in carbon storage in products Carbon Storage in Products 6.3.3 Emissions offset mechanisms, including but not limited to, voluntary offset schemes or recognized offset mechanisms, shall not be used at any point in the life cycle of the product in order to claim reduction in the emissions associated with the product Boundary and Priorities (2/5) Carbon Capture and Storage 6.3.4 Offsetting 6.4

Time-related coverage, geographical specificity, technology coverage, accuracy, precision, completeness, consistency, reproducibility, and data sources II. Taiwan Specification for Product Carbon Footprint Criteria, Procedure and Application Step Criteria Provisions Clause Data Quality Require’ts 7.2 Primary activity data shall be collected from those processes owned, operated or controlled by the organization carrying out the PCF analysis; where the collection of primary activity data is not possible or feasible, secondary data shall be used If the organization carrying out the PCF analysis does contribute to 10% or more to the upstream GHG emissions of the product, the primary activity data rule does not apply to upstream suppliers Collecting Data (3/5) Primary Activity data and Secondary Data 7.3、7.4

Time Period for Assessing GHG Emissions
Dividing the unit process Expanding the product system be allocated in a way that reflects other relationships between the products and functions II. Taiwan Specification for Product Carbon Footprint Criteria, Procedure and Application Step Criteria Provisions GHG Emissions x GWP (100-year time horizon) The assessment result must be added up together to obtain GHG emissions in terms of CO2e emissions per functional unit The GHG emissions shall then be scaled to account for any minor raw materials or activities that were excluded from the analysis Clause Allocation 8.1 The assessment of the impact of GHG emissions shall be the CO2e impact of the GHG emissions over the 100-year period (i.e. the 100-year assessment period). Calculation 8.2 Calculation (4/5) Time Period for Assessing GHG Emissions 8.3

When results of the LCA are to be communicated to any third party, a third-party report shall be prepared The repot shall include the following: general aspects, goal of assessment, scope of the assessment, life cycle inventory analysis…etc. II. Taiwan Specification for Product Carbon Footprint Criteria, Procedure and Application Step Criteria Provisions When communicating in B2B transactions, confidential information relating to the producer or the production operations may be involved The parties involved shall draw proper legal instruments to guarantee confidentiality Clause Additional Require’ts for Third-party Reports 9.2 Validity of the assessment: 2 years Verification and claims of conformity: Third Party Certification Other Party Verification Self Verification Confiden-tiality Reporting (5/5) 9.3 Verification and Claims of Conformity 10

Features 1.Compariability with other or future standards Development basis: Taiwan specification was developed mainly based on the criteria in PAS 2050; provisions or principles in ISO/WD and TS Q 0010 were also taken into consideration LCA Methodology: based on ISO 14040/44, which is the same as PAS 2050, TS Q 0010, ISO/WD Data Collection Principles and Quality Rules: the same as PAS 2050 and ISO/WD , including the setting of system boundary, data quality requirements, allocation, and the acquisition of primary activity data and secondary data Main difference from PAS 2050: Taiwan specification does not include the emissions arising from direct/indirect land use change. Such difference may affect the PCF assessment of agricultural products and food products

Features 2. ISO/WD Limitations of LCA Methodology “LCA methodology in accordance with ISO AND ISO is subject to inherent limitations and trade-offs involving a number of subjective choices. These include e.g. the establishment of system boundaries, the availability and selection of appropriate data sources, allocation rules, transport and disposal scenarios and assumptions regarding the user behavior. Many choices are rough approximations to the real world bearing in mind e.g. that supply or transport chains can change quickly and that the use of a product can vary considerably. Energy mixes and conversion factors are different in different countries. Using average data may be practical to avoid the indication of region or country specific product carbon footprints but introduces a further deviation from the ‘true’ values. “ “Consequently, the LCA methodology may not deliver sufficiently precise figures allowing to differentiate between products (differing by, say, less than 30-50%) as a result of limitations of LCA methodology. In addition, product carbon footprint figures will be normally only comparable within one scheme as the methodological choices between practitioners will be typically different. “

Features 3. Material Contribution and threshold Any one source of GHG emissions less than 1% is considered non-material and could be excluded (cut off); the total excluded GHG emissions cannot exceed 5% (95% of the expected life cycle GHG emissions of a product must be accounted Where a single source of GHG emissions accounts for more than 50% of the potential life cycle GHG emissions of a product, the 95% threshold rule shall apply to the remaining GHG emissions For the use phase of a product along, at least 95% of the potential life cycle emissions of the use phase

95% Threshold Rule of PAS 2050 Cut off can not exceed 5% Another 5% cut off is allowed for “use” phase along Use phase The 95% threshold rule is applied to the remaining GHG emission sources Where single emission source accounted for more than 50% of the potential PCF If the expected assessment of life cycle GHG emissions is determined to be less than 100%, the assessed emissions shall be scaled up to 100%. 100%

Features 4. The minimum requirements to use primary activity data (Taiwan Specification and PAS 2050) Primary activity data shall be collected from those processes owned, operated or controlled by the organization carrying out the footprint analysis. Where the organization carrying out the footprint analysis does not contribute 10% or more to the upstream GHG emissions of the product or input prior to its provision to another organization or the end-user, the primary activity data requirement shall apply to the emissions arising from those processes owned, operated or controlled by the first upstream supplier that does contribute 10% or more to the upstream GHG emissions of the product or input. The primary activity data requirement shall not apply to downstream emission sources.

Conclusion The quantification of product carbon footprint is mainly based on the methodology of LCA. Case studies and capacity building related to LCA practices can facilitate the implementation of carbon footprint calculation. The uncertainty that arises from database selection, inventory analysis and data quality variation has long been an issue to life cycle assessment and will also be obstacles to carbon footprint calculation. PAS 2050 is effective until 2010, if not adopted as a British Standard. Other existing standards related to product carbon footprint are very likely to be terminated or replaced once ISO is published. ISO appears to be a key standard for carbon footprint calculation. Taiwan Specification for Product Carbon Footprint can serve as a normative document to provide a methodological guidance for the calculation of product carbon footprints. The specification is suggested to be only effective until ISO (or relevant CNS) is published.

Further inquiry: yml@mail.ntpu.edu.tw
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Taiwan Specification for Product Carbon Footprint

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