1. International Telecommunication Union Introduction to ISO TC 207/SC 7 Standards Yong-Woon KIM ETRI Hiroshima Meeting 24-27 March 2009

2. 2 Table of Contents History Corporate responsibility Market status GHG assessment process ISO TC 207 Structure TC 207/SC 7 standards TC 207/SC 7 std relationship & positioning ISO 14064-1 ISO 14064-2 ISO Verification std Problem statements for ITU-T What to do for ITU-T

3. 3 Presentation focus History for problem statements of GHG Protocol Initiative and ISO Positioning and relationship among relevant standards Scope of standards, not covering detail contents of theirs What to do for ITU-T

4. 4 History (1/2) 1988198919901991199219931994199519961997 Intergovernmental Panel on Climate Change (IPCC) was established by WMO and UNEP. It is publishing special reports on topics relevant to the implementation of the UNFCCC. United Nations Framework Convention on Climate Change (UNFCCC) was produced for stabilization of GHG emission at 1990 levels by 2000. UNFCCC came into force. COP-1 (1 st Conferences of the Parties) was held in Berlin, Germany. 1998 COP-3 was held in Kyoto, Japan, and the Kyoto Protocol was adopted for industrialized countries to reduce their collective emissions of GHG by 5.2% compared to the year 1990. IPCC Guidelines for National Greenhouse Gas Inventories was published. IPCC Guidelines for National Greenhouse Gas Inventories (Revised 1996) was published in 1994. IPCC Guidelines for National Greenhouse Gas Inventories (Revised 2006) was published in 2006.

5. 5 History (2/2) 199819992000200120022003200420052006200720082009 WRI/WBCSD: a partnership initiated to develop standardized methods for GHG accounting. "The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard" "The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (revised)" "The Greenhouse Gas Protocol: The GHG Protocol for Project Accounting" ISO identified a need to standardize aspects of GHG accounting and verification; and, Its gap analysis result: no internationally recognized best practice guidelines on GHG verification ISO 14064-1 ISO 14064-2 ISO 14064-3 ISO 14065 ISO WD 14066 ISO NWIP 14067-1 ISO NWIP 14067-2 Verification-relevant standards

6. 6 Corporate responsibility Corporate responsibility under the Kyoto Protocol Annual GHG emissions reporting is required. ICT sector companies also should do that. Survey results of Research and Markets "Corporate Greenhouse Gas Emissions Reporting 2008" was announced Staggering inconsistencies in calculation and verification of GHG emissions of Fortune 500 companies BT Group, Sony, Toshiba, GE, British Sky Broadcasting, Matsushita, Cisco, Dell, EMC, Intel, Motorola, Siemens, Deutsche Telekom, Telenor, Verizon, Vodafone, Samsung, etc. 34 different public protocols or guidelines used The most widely used is WRI/WBCSD GHG Protocol (http://www.ghgprotocol.org/)

7. 7 Market status (1/3) Programs using GHG Protocol 63% of Fortune 500 companies use the GHG Protocol. Source: WRI/WBCSD

8. 8 Market status (2/3) Standards options CorporationsProjects Accounting and Reporting GHG Protocol, corporate; and ISO 14064-1 ISO 14067-1 (Quantification) GHG Protocol, project California Registrys General Reporting Protocol ISO 14064-2 IPCC Guidelines (national level reporting) EU Emissions Trading Scheme (facility-level mandatory reporting) … … Verification GHG Protocol, corporate ISO 14064-3, ISO 14065, ISO 14066 … Labeling ISO 14067-2 EPEAT …

9. 9 Market status (3/3) Study results of Research and Markets Verification Over half of the companies using standards External verification Less than half of the companies using the GHG Protocol Estimated costs Between 75,000 and 800,000 for collecting data and calculating GHG Protocol Scope 1 GHG emissions Between 50,000 and 500,0000 for verification ISO standards are more competitive for the verification phase.

10. 10 GHG assessment process Assign resources Design GHG inventory Collect data Account for GHG emissions Report GHG emissions Verify GHG emissions Set GHG targets Reduce GHG emissions Planning phase Developing phase Reporting phase Verifying phase Managing phase (Managing phase)

11. 11 GHG assessment process Assign resources Design GHG inventory Collect data Account for GHG emissions Report GHG emissions Set GHG targets Reduce GHG emissions Manage inventory quality Iterate improvement process

12. 12 GHG assessment process Assign resources Design GHG inventory Collect data Account for GHG emissions Report GHG emissions Verify GHG emissions Set GHG targets Reduce GHG emissions -Determine resource requirements -Establish a team -Prepare a budget -Define inventory boundaries -Determine emissions sources -Select a base year -Obtain appropriate data -Ensure data quality -Apply calculation tools -Guard against calculation errors -Identity emission reduction opportunities -Decide on target type: absolute or intensity -Decide on target level -Implement emission reduction activities -Publicly report complete inventory information -Verify asserted inventory information

13. 13 ISO TC 207 Structure SC 1 : Environmental Management Systems (EMS) SC 5 : Life Cycle Assessment (LCA) SC 2 : Environmental Auditing & Related Investigations (EA&RI) TCG : Terms and Definitions (T&D) SC 3 : Environmental Labeling (EL)SC 7 : Greenhouse Gas Management and Related Activities SC 4 : Environmental Performance Evaluation (EPE) WG 7 : Environmental Aspects in Product Standards Source: ISO TC 207

14. 14 TC 207/SC 7 standards Published standards ISO 14064-1 (Greenhouse gases – Part 1: Specification with guidance at the organization level for quantification and reporting of greenhouse gas emissions and removals) ISO 14064-2 (Greenhouse gases – Part 2: Specification with guidance at the project level for quantification, monitoring and reporting of greenhouse gas emission reductions and removal enhancements) ISO 14064-3 (Greenhouse gases – Part 3: Specification with guidance for the validation and verification of greenhouse gas assertions) ISO 14065 (Greenhouse gases – Requirements for greenhouse gas validation and verification bodies for use in accreditation or other forms of recognition) WG 1 working draft standards (Competency requirements for greenhouse gas validators and verifiers document) ISO/WD 14066 (Greenhouse gases – Competency requirements for greenhouse gas validators and verifiers) WG 2 working draft standards (GHG management in the value or supply chain) ISO NWIP 14067-1 (Greenhouse gases – Carbon footprint of products – Part 1: Quantification) ISO NWIP 14067-2 (Greenhouse gases – Carbon footprint of products – Part 2: Communication)

15. 15 SC 7 std relationship Source: ISO TC 207/SC 7

16. 16 SC 7 std positioning Assign resources Design GHG inventory Collect data Account for GHG emissions Report GHG emissions Verify GHG emissions Set GHG targets Reduce GHG emissions ISO 14064-1 CorporationsGHG Projects ISO 14064-2 Validators/Verifiers ISO 14064-3 ISO 14065 ISO 15066

17. 17 ISO 14064-1 Keys It is consistent with and refers specifically to GHG Protocol, corporate. Design GHG inventory Define inventory boundaries Organizational boundary; and –Either Equity share approach; or, Organization accounts for emissions according to its portion of equity. –Control approach Organization accounts for all emissions from operations over which it has financial or operational control. Operational boundary –Direct GHG emissions (called Scope 1 in GHG Protocol) –Energy indirect GHG emissions (called Scope 2) –Other indirect GHG emissions (called Scope 3)

18. 18 ISO 14064-1 Keys Design GHG inventory (contd) Operational boundaries Source: New Zealand Business Council for Sustainable Development

19. 19 ISO 14064-1 Keys Design GHG inventory (contd) Definitions: direct GHG emission vs. indirect GHG emission Direct GHG emissions: those from sources that are owned or controlled by organization Indirect GHG emissions: those which are a consequence of the activities of the organization but occur at sources owned or controlled by another organization Scope 1: Direct GHG emissions Emissions caused by sources that are owned or controlled by organization (e.g. generation of electricity, heat or steam; physical or chemical processing; transportation of materials, products, waste and employees; and, fugitive emissions) Scope 2: Energy indirect GHG emissions Emissions from the generation of purchased electricity, heat or steam consumed by the organization. Scope 3: Other indirect GHG emissions Examples: extraction and production of purchased materials and fuels; transportation of waste, sold products, and purchased materials and fuels; employee business travel, use of sold products and services, waste disposal, etc.

20. 20 ISO 14064-1 Keys Design GHG inventory (contd) Accounting for indirect GHG emissions by purchased electricity Source: GHG Protocol Initiative

21. 21 ISO 14064-2 Key Key: accounting for GHG reductions from Projects Source: GHG Protocol Initiative Baseline emission: an estimate of GHG emissions, removals, or storage associated with a baseline scenario Baseline scenario: a hypothetical reference case of what would have most likely occurred in the absence of a proposed GHG project.

22. 22 ISO 14064-2 Scope Assess project concept/ feasibility/ program Consult stakeholders before & after establishing GHG-project plan Validate GHG project Obtain approval of the project Plan the GHG project Register project Periodic verification, certification and recognition of GHG units Present final GHG report Verify final GHG emission reduction and removal enhancements Certify final GHG emission reductions and removal enhancements Recognition of GHG units Terminate project Undertake project activities ImplementationPlanning Describe project; Determine baseline scenario; Establish procedures to monitor, quantify and report GHG emissions, removals, storage, emission reductions and removal enhancements; and Validate the GHG project Implement procedures to monitor, quantify and report GHG emissions, removals, storage, emission reductions and removal enhancements; and Verify GHG emission reductions, removal enhancements and reports A typical GHG project cycle Source: ISO 14064-2

23. 23 ISO 14064-2 Process Describe the project Identify SSRs relevant for the project Determine the baseline scenario Identify SSRs for the baseline scenario Select relevat SSRs for monitoring or estimation Quantify emissions and/or removals Quantify emission reductions and removal enhancements Manage data quality Monitor the GHG project Document the GHG project Validation and/or verification Report GHG project SSRs: GHG sources, sinks and reservoirsSource: ISO 14064-2

24. 24 ISO verification std Reporter GHG Registry Consulting firms Validator/ Verifier Perform GHG reduction projects; and Account for and report GHG emissions, reductions and removals Consulting for project planning; and Evaluating project plan and inventory Validating project plan; and Verifying asserted report Requesting to endorse reduction results Registering reduction project Managing results Validator/ Verifier A registry is an organization where companies can declare the results of their GHG emissions. Registries incentivize early action because companies will receive recognition for their voluntary emissions reduction efforts under any future regulatory schemes. Registries are often used to track GHG emissions, GHG emission reductions or GHG removal enhancements by assigning them unique identifier. Korea granted validation/verification licenses to 7 organizations.

25. 25 ISO verification std Validator/ Verifier ISO 14064-3, verification process ISO 14065, valiator/verifier requirements ISO 14066, validator/verifier competency requirements ISO 14064-3 specifies principles and requirements and provides guidance for those conducting or managing the validation and/or verification of GHG assertions. ISO 14065 specifies principles and requirements for GHG validators and verifiers that undertake validation and/or verification of GHG assertions. ISO 14066 specifies personal attribute, knowledge and skill (competency) requirements, required levels of proficiency and methods to evaluate competencies for GHG validators and/or verifiers by areas of competence.

26. 26 ISO standards users Canadian Standards Associations (CSA) GHG Registries (http://www.ghgregistries.ca/)http://www.ghgregistries.ca/ ANSICA (http://www.ansi.org/ghg/), and so on.http://www.ansi.org/ghg/

27. 27 Problem statements Survey results of Research and Markets Inadequate standards yet All investors surveyed suggested that the current standards available to companies are inadequate. Suggestions given as to what would improve corporate emissions-reporting standards included a greater link between carbon-performance reporting and financials. Mandatory for certain threshold of emissions levels Australia, Canada, and the UK are the only countries in which it is or will soon be mandatory for companies with emissions levels over a certain threshold (or meeting other specific criteria) to report on their emissions.

28. 28 Problem statements Market news U.S. President Obama is planning to pay for tax cuts with some of the money generated by a carbon cap-and-trade regulation. Thus, GHG accounting and reporting is a critical management factor for companies.

29. 29 What to do for ITU-T Work itemsValidityJustification New accounting and reporting protocol No Leading solutions exist. No severe problems to leading solutions ICT sector-inventory design guide Yes Designing GHG inventory is not easy. Design reference will be helpful. Operation boundary of Scope 3 should be carefully analyzed because ICT can make GHG mitigation impacts to other sectors. ICT sector-specific calculation tool within the framework of GHG Protocol or ISO standards. Yes Reference cases: Refrigeration and Air- conditioning equipment (manufacturing, installation, operation and disposal); Semiconductors; etc. A tool for office-based and service sector organizations exist. But ICT sector-specific situations might require its own calculation tool. How to incorporate four types of methodologies: national level; organization level; facility level; and product/service level. Yes There are four types of GHG accounting and reporting methodologies which all may be involved with ICT sector companies. Thus how to incorporate them needs to be exploited into a protocol standard.

30. 30