1. Setting the scene World Resources Institute US State Registries and Programs Background, Overview, and Perspective Presented by: Pankaj Bhatia, World Resources Institute WRAP, April 5 2006 Salt Lake City

2. Setting the scene World Resources Institute Summary of the Presentation Topics Part I – Background and Context –Emissions measurement and reporting –GHG emissions – unique aspects –GHG management - key business drivers –Types, relationship, and examples of different climate initiatives –Brief overview on the GHG Protocol Initiative Part II – US Registries/Programs Overview –US state and national registries/program –Key common features, differences, and issues in US registries Part III – Registry Collaboration and Linked GHG Programs –Emerging Need for a Multi-state Registry Collaboration –Relationship between a Registry, Program, and Applications

3. Setting the scene World Resources Institute Measurement Management Emissions Measurement and Emissions Management What you measure, you can manage What you measure WELL, you can manage WELL

4. Setting the scene World Resources Institute GHG Emissions Measurement and Management: Unique Context Not a Localized Impact –Tracking global emissions is meaningful No National Regulation to Facilitate Emissions Management and Reductions –Applying comprehensive measurement approaches (e.g. direct and indirect; facility and corporate) focused on multiple management objectives (including voluntary reporting, mandatory reporting, cap and trade, reduction programs etc) becomes highly relevant

5. Setting the scene World Resources Institute Key Business Drivers for GHG Management Realize Co-benefits of Existing Programs Improve Investors Relationships Capture New GHG Market Opportunities Manage and Reduce GHG Risks Prepare for Future Regulations Develop New Products/Technologies

6. Setting the scene World Resources Institute Emissions Measurement and Management: Types of Climate Initiatives GHG Standards: oSet of commonly accepted concepts, terminologies, and framework to establish a true and fair account of GHG emissions GHG Registries: oA database to receive and store a credible and comprehensive set of GHG data oGHG data collected at various levels including unit/source, facility, corporate oBased on the international standards such as the GHG Protocol GHG Programs: oAn application using the GHG information provided by a registry oExamples: Public reporting; Cap and trade; Voluntary GHG reduction targets; Voluntary emissions trading scheme

7. Setting the scene World Resources Institute Measurement Management GHG Registry GHG Programs Relationship between a GHG Standard, Registry, and Program GHG RegistryGHG Standards

8. Setting the scene World Resources Institute An International GHG Standard GHG Protocol Initiative  Convened in 1998 by WBCSD & WRI  Mission: to develop international GHG measurement & reporting standards for business through an inclusive & transparent multi-stakeholder process  Published two modules: corporate standard & project protocol  Provides 16 calculation tools on the website (www.ghgprotocol.org)

9. Setting the scene World Resources Institute Climate Initiatives (based on or informed by GHG Protocol) Voluntary GHG Reduction Programs  U.S. EPA Climate Leaders Program  WWF Climate Savers Program  Respect Europe BLICC Program  USAID GHG Pollution Prevention Program  Climate Neutral Network GHG Registries  California Climate Action Registry  Eastern Climate Registry  WEF Global Registry Reporting Programs  Global Reporting Initiative  CERES Sustainable Governance Initiative Industry GHG Protocols  International Industry Associations: IAI, IISI, IPIECA, IFFPA, WBCSD Sustainable Cement Initiative  NZ BCSD  European, Japanese, Canadian, and Australian Cement Industry Associations  French REGES Protocol Trading Programs  UK and EU Emissions Trading Scheme  Chicago Climate Exchange Other  International Standards Organization  EBRD

10. Setting the scene World Resources Institute Existing & Emerging U.S. State GHG Registries California Climate Action Registry: Approximately 71 members Follows WRI/WBCSD GHG Protocol Eastern Climate Registry: 10 Northeast and Mid-Atlantic states participating - CT, DE, ME, MA, NH, NJ, NY, PA, RI, VT Scheduled to become operational by Fall 2006 Follows WRI/WBCSD GHG Protocol Midwest States (LADCO): Six states participating in process - WI, OH, MI, IL, IN, MN Goal to develop registry by Fall 2006 Plans to follow WRI/WBCSD GHG Protocol

11. Setting the scene World Resources Institute Other U.S. GHG Registries/Programs US EPA Climate Leaders Program –Not a GHG Registry –Designed as a Voluntary Reduction Program –Completely Based on the GHG Protocol Standards Chicago Climate Exchange (CCX) –Designed as a GHG Reduction and Trading program –Largely Based on the GHG Protocol Standards DOE’s 1605(b) Voluntary GHG Registry –Meant to serve as a GHG Registry –Final guidelines slated for release in March 2006 –Criticized by industry and environmental groups as too flexible –Not Based on the GHG Protocol Standards

12. Setting the scene World Resources Institute Existing/Emerging US State Registries/Programs: Some Observations Provide a platform on measurement and reporting (i.e. serve at least one key function of a Registry) Support a variety of program applications including voluntary public reporting, voluntary corporate reduction targets, and cap and trade program Use the GHG Protocol Standards

13. Setting the scene World Resources Institute Multiple US State or Regional Registries Key Issues Different programs and requirements leading to: –Increased reporting burden on businesses –De-standardization and uncertainty Reinventing the wheel leading to: –Waste of resources –Delay in the launch of new programs

14. Setting the scene World Resources Institute A Multi-state GHG Registry Collaboration with Linked GHG Programs Primary Goal of the Multi-state Registry Collaboration Receiving and storing a credible and comprehensive set of GHG information prepared based on the international standards such as the GHG Protocol Primary Goal of GHG programs Developing and implementing city, state, regional, or national applications using the information provided by such a registry

15. Setting the scene World Resources Institute Multi-state GHG Registry National Programs State Programs Regional Programs City Programs Voluntary Entity Reductions Mandatory Cap & Trade Registry, GHG Program, and Potential Applications – Long-term Vision Offset Projects Voluntary Reporting Voluntary Cap & Trade

16. Setting the scene World Resources Institute Multiple Objectives –Support a wide range of applications including voluntary programs, efficiency standards, RPS etc. Integrated Emissions Quantification –GHGs, Energy Use, Other Criteria Pollutants (So x, NO x, etc.) Broad Emissions Assessment –Direct, Energy use indirect, and Other indirects Multi-level Entity Reporting –Allow tracking at unit/source, facility, and company levels Linkages with GHG Programs –Facilitate data transfer and applications Long-term Relevance and Evolution in the Design of Registries - Summary

17. Setting the scene World Resources Institute Questions? Contact Information: Pankaj Bhatia Manager, GHG Protocol Initiative (www.ghgprotocol.org)www.ghgprotocol.org World Resources Institute, Washington DC, USA pankaj@wri.org 1-202-729-7629