CarbonOffsetManagementStrategiesandBestPractices
Forecasting,Selection,Optimisation
AndrewGunstResource Intelligence PtyLimitedCarbonIntelligence PtyLimited
www.CarbonIntel.com.auLevel29,ChifleyTower,2ChifleySquare,SydneyNSW2000Australia
ResourceIntelligenceAddresstoIETABPMR|Chongqing2016-01-21
ResourceIntelligenceisaprofessionalconsultancydeliveringcarbonmeasurement,reportingandindustrialoffsetsprojectservices.
CarbonIntelligenceisaverificationserviceinmarketswhichallowprivateverifiers.
Carbon IntelligenceKnowtheFacts
aboutyourcarbonpositionaboutyourregulatoryposition
aboutcarbontrading.BeIntelligent
inyourresponsetothechallengesandopportunitiesthatcarbonreportingandemissionstradingbring.
ResourceIntelligenceAddresstoIETABPMR|Chongqing2016-01-21
ResourceIntelligence____.CarbonIntelligence____.
ResourceIntelligenceAddresstoIETABPMR|Chongqing2016-01-21
CarbonIntelligence了解
您碳方面的情况您在法律规定方面的情况碳交易方面的情况
在碳排放报告与碳排放交易规定带来的挑战与机会面前,我们帮助您有智慧地应对
Presentationbasedonindustrials• Metals– CITICPacific,Glencore,Newcrest,Barrack,GoldFields• Oil&Gas– AGL,AirLiquide,Chevron,Exxon,Transocean• Power– Stanwell• Telecommunications– Telstra• Nuclear– ANSTO,BeverleyUranium(GeneralAtomics)• Chemicals- BASF• CoalandSteel– AngloAmerican.CaledonCoal(GuangdongRisingAssetsManagement),ICC
• Food– Wilmar,PenriceSoda(solvay)• Transport– Boeing,CobhamAviation,QueenslandRail• Water– SAWater,SunWater
ResourceIntelligenceAddresstoIETABPMR|Chongqing2016-01-21
UpstreamOffsets
•ResourceIntelligenceisthelargestindustrialoffsetsadvisoranddevelopmentpartnerinAustralia(approximately70%ofnationalprojectvolume).
•CarbonIntelligenceisaverifieroflandbasedoffsetsinAustralia.
ResourceIntelligenceAddresstoIETABPMR|Chongqing2016-01-21
OffsetsManagementForecasting,Selection,Optimisation
Production plan
Decide number offsets needed
Which offsets acceptable?
Lowest price?
Optimise offsets
buy /sell
Tonne CO2-e / tonne
product
ResourceIntelligenceAddresstoIETABPMR|Chongqing2016-01-21
Whythenumberofoffsetsneededisaprobabilitycurve
• TonneCO2-e/tonneproductisaUshapedcurve.• PlantmanagementwillreducetonneCO2-e/tonneproductonceapriceisestablishedbychangingair/fuelmixbeforecombustion,reducinguncombustedventingofmethane,etc.• Reportingboundary– howaggressivewastheMeasurementandReportingapproach,howmuchriskofincreaseduringVerification.•MeasurementMethod(Tier)– reducereportedemissionsbyselectingahigherordermethod,forexampleusinginstrumentanalysisnotassumedcalorificvaluesandemissionsfactors.Maybevoluntaryorregulatorimposed.
AddresstoAustraliaChinaTradeandInvestment2014|Beijing25062014
tonneCO2-e/tonneproduction
Cumulative
tonne CO2-e / tonne
product
ResourceIntelligenceAddresstoIETABPMR|Chongqing2016-01-21
Marginal
tonne production
0
10
20
30
40
50
60
70
80
90
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
Reportingboundaryexampleshowingcomplexity
Power stations
Gas pipeline
Mine site
Transfer to Port
Port ShipsProcess Plant
ResourceIntelligenceAddresstoIETABPMR|Chongqing2016-01-21
________举例说明复杂性
电厂天然气管道
矿产地
送至港口 港口 船舶加工厂
ResourceIntelligenceAddresstoIETABPMR|Chongqing2016-01-21
Reportingboundaryexampleshowingcomplexity
Power Stations
Coal or Waste
Crops
Transfer to Port
Port ShipsProcess Plant
ResourceIntelligenceAddresstoIETABPMR|Chongqing2016-01-21
___________举例说明复杂性
电厂煤及废物
作物
送至港口 港口 船舶加工厂
ResourceIntelligenceAddresstoIETABPMR|Chongqing2016-01-21
OffsetsManagementForecasting,Selection,Optimisation
Efficiency curve
Production plan
Production Optimisation
ForecastDecidenumber offsets needed
Which offsets acceptable?
Lowest price? Best marketing?
Optimise offsets
buy /sell
Tonne CO2-e / tonne
product
Risk appetite
Reporting boundary
(regulatory risk)
Reporting Method(measurement cost,
regulatory risk)
ResourceIntelligenceAddresstoIETABPMR|Chongqing2016-01-21
Whydosomeindustrialemittersnotbuythelowestcostunits?
•Buylocalgeneratedoffsets• Alargecoalfiredelectricitygeneratorbuysoffsetsfromprojectsneardischargesfromitsfluestacks.• Aregionalgovernmentownedwateroperationbuysinthesamestate/provinceastheoperation.
•Buycreditswithaperceivedmarketingbenefit• Forestryunitsconsistentlypopularevenif10xmoreexpensive,especiallywithindustrieswhichusepaper.Hydroandothercleantechnologyunitsalsopopular.• GlobalbuildingproductsmanufacturerbuyAfricancleanwaterunits– healthychildren.
ResourceIntelligenceAddresstoIETABPMR|Chongqing2016-01-21
Whydosomeindustrialoperatorsnotbuythelowestcostunits?
ResourceIntelligenceAddresstoIETABPMR|Chongqing2016-01-21
OffsetsManagementForecasting,Selection,Optimisation
Efficiency curve
Production plan
Production Optimisation
Forecast number offsets needed
Which offsets acceptable?
Lowest price? Best marketing?
Optimise offsets
buy /sell
Tonne CO2-e / tonne
product
Risk appetite
Reporting boundary
(regulatory risk)
Marketing BenefitsLocal?Trees /Water /
Children?
Reporting Method(measurement cost,
regulatory risk)
ResourceIntelligenceAddresstoIETABPMR|Chongqing2016-01-21
Theneedforprofessionalskills
•Understandingthecarbonoffsetsoptionsforacompanyrequiresamixofprofessionalskills•processengineering,•accounting,• legal,•audit, audit,•marketing,
allwithcarbonexpertise.ResourceIntelligenceAddresstoIETABPMR|Chongqing2016-01-21
.
Externalprofessional skills usedduringtheintroductionofcarbonreportingandpaymentinAustralia
ResourceIntelligenceAddresstoIETABPMR|Chongqing2016-01-21
Quantifyingthesupportneeded.• Allofthemajorcompaniesarecapturedbythecarbon
schemes.Earlymoverswillbeabletominimisecostsandimprovetheircompetitivepositionwithintheirindustry.
• InAustralia300liableentitiesspentaverageAUD$0.5-1million(CNY¥3-6million)each.Californiasimilar.
• SeventradingschemesalreadyoperatinginChinacoverabout2,000companies;anationalschemewouldcovermorethan10,000companies.Eachofthosecompaniesmustgetreadyforthemandatoryreportingandthecarbontradingschemes…nomatteriftheyarestateownedorprivatecompanies.
ResourceIntelligenceAddresstoIETABPMR|Chongqing2016-01-21
Whatvaluewilltheyadd?• Thosecarbonprofessionalswill:– Helpdeterminewhatmustbereportedandhowitshouldbemeasured.
– Buildsystemsforcompaniessotheycancalculateandreporttheircarbonemissions.
– Findtheopportunitiesforcompaniestocapitalisefromthenewcarbonschemescomparedtotheircompetitors.
ResourceIntelligenceAddresstoIETABPMR|Chongqing2016-01-21
Acknowledgments
Dataandinformationinthispresentationthanksto:
ResourceIntelligence
CarbonIntelligence
CarbonMarketInstitute
InternationalEmissionsTrainingAssociation
AustralianInstituteofEnvironmentalAccounting
ResourceIntelligenceAddresstoIETABPMR|Chongqing2016-01-21
ThankYou
Questions?AndrewGunst
Resource Intelligence PtyLimitedCarbonIntelligence PtyLimited
www.CarbonIntel.com.auLevel29,ChifleyTower,2ChifleySquare,SydneyNSW2000Australia
ResourceIntelligenceAddresstoIETABPMR|Chongqing2016-01-21