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Carbon Offset Management Strategies and Best Practices Forecasting, Selection, Optimisation Andrew Gunst Resource Intelligence Pty Limited Carbon Intelligence Pty Limited www.CarbonIntel.com.au Level 29, Chifley Tower, 2 Chifley Square, Sydney NSW 2000 Australia [email protected] Resource Intelligence Address to IETA BPMR | Chongqing 2016-01-21
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Page 1: Carbon Offset Management Strategies and Best Practices ... 2016/Presentations... · 1/21/2016  · Strategies and Best Practices Forecasting, Selection, Optimisation Andrew Gunst

CarbonOffsetManagementStrategiesandBestPractices

Forecasting,Selection,Optimisation

AndrewGunstResource Intelligence PtyLimitedCarbonIntelligence PtyLimited

www.CarbonIntel.com.auLevel29,ChifleyTower,2ChifleySquare,SydneyNSW2000Australia

[email protected]

ResourceIntelligenceAddresstoIETABPMR|Chongqing2016-01-21

Page 2: Carbon Offset Management Strategies and Best Practices ... 2016/Presentations... · 1/21/2016  · Strategies and Best Practices Forecasting, Selection, Optimisation Andrew Gunst

ResourceIntelligenceisaprofessionalconsultancydeliveringcarbonmeasurement,reportingandindustrialoffsetsprojectservices.

CarbonIntelligenceisaverificationserviceinmarketswhichallowprivateverifiers.

Carbon IntelligenceKnowtheFacts

aboutyourcarbonpositionaboutyourregulatoryposition

aboutcarbontrading.BeIntelligent

inyourresponsetothechallengesandopportunitiesthatcarbonreportingandemissionstradingbring.

ResourceIntelligenceAddresstoIETABPMR|Chongqing2016-01-21

Page 3: Carbon Offset Management Strategies and Best Practices ... 2016/Presentations... · 1/21/2016  · Strategies and Best Practices Forecasting, Selection, Optimisation Andrew Gunst

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

Page 4: Carbon Offset Management Strategies and Best Practices ... 2016/Presentations... · 1/21/2016  · Strategies and Best Practices Forecasting, Selection, Optimisation Andrew Gunst

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

Page 5: Carbon Offset Management Strategies and Best Practices ... 2016/Presentations... · 1/21/2016  · Strategies and Best Practices Forecasting, Selection, Optimisation Andrew Gunst

UpstreamOffsets

•ResourceIntelligenceisthelargestindustrialoffsetsadvisoranddevelopmentpartnerinAustralia(approximately70%ofnationalprojectvolume).

•CarbonIntelligenceisaverifieroflandbasedoffsetsinAustralia.

ResourceIntelligenceAddresstoIETABPMR|Chongqing2016-01-21

Page 6: Carbon Offset Management Strategies and Best Practices ... 2016/Presentations... · 1/21/2016  · Strategies and Best Practices Forecasting, Selection, Optimisation Andrew Gunst

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

Page 7: Carbon Offset Management Strategies and Best Practices ... 2016/Presentations... · 1/21/2016  · Strategies and Best Practices Forecasting, Selection, Optimisation Andrew Gunst

Whythenumberofoffsetsneededisaprobabilitycurve

• TonneCO2-e/tonneproductisaUshapedcurve.• PlantmanagementwillreducetonneCO2-e/tonneproductonceapriceisestablishedbychangingair/fuelmixbeforecombustion,reducinguncombustedventingofmethane,etc.• Reportingboundary– howaggressivewastheMeasurementandReportingapproach,howmuchriskofincreaseduringVerification.•MeasurementMethod(Tier)– reducereportedemissionsbyselectingahigherordermethod,forexampleusinginstrumentanalysisnotassumedcalorificvaluesandemissionsfactors.Maybevoluntaryorregulatorimposed.

AddresstoAustraliaChinaTradeandInvestment2014|Beijing25062014

Page 8: Carbon Offset Management Strategies and Best Practices ... 2016/Presentations... · 1/21/2016  · Strategies and Best Practices Forecasting, Selection, Optimisation Andrew Gunst

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

Page 9: Carbon Offset Management Strategies and Best Practices ... 2016/Presentations... · 1/21/2016  · Strategies and Best Practices Forecasting, Selection, Optimisation Andrew Gunst

Reportingboundaryexampleshowingcomplexity

Power stations

Gas pipeline

Mine site

Transfer to Port

Port ShipsProcess Plant

ResourceIntelligenceAddresstoIETABPMR|Chongqing2016-01-21

Page 10: Carbon Offset Management Strategies and Best Practices ... 2016/Presentations... · 1/21/2016  · Strategies and Best Practices Forecasting, Selection, Optimisation Andrew Gunst

________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

Page 11: Carbon Offset Management Strategies and Best Practices ... 2016/Presentations... · 1/21/2016  · Strategies and Best Practices Forecasting, Selection, Optimisation Andrew Gunst

Reportingboundaryexampleshowingcomplexity

Power Stations

Coal or Waste

Crops

Transfer to Port

Port ShipsProcess Plant

ResourceIntelligenceAddresstoIETABPMR|Chongqing2016-01-21

Page 12: Carbon Offset Management Strategies and Best Practices ... 2016/Presentations... · 1/21/2016  · Strategies and Best Practices Forecasting, Selection, Optimisation Andrew Gunst

___________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

Page 13: Carbon Offset Management Strategies and Best Practices ... 2016/Presentations... · 1/21/2016  · Strategies and Best Practices Forecasting, Selection, Optimisation Andrew Gunst

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

Page 14: Carbon Offset Management Strategies and Best Practices ... 2016/Presentations... · 1/21/2016  · Strategies and Best Practices Forecasting, Selection, Optimisation Andrew Gunst

Whydosomeindustrialemittersnotbuythelowestcostunits?

•Buylocalgeneratedoffsets• Alargecoalfiredelectricitygeneratorbuysoffsetsfromprojectsneardischargesfromitsfluestacks.• Aregionalgovernmentownedwateroperationbuysinthesamestate/provinceastheoperation.

•Buycreditswithaperceivedmarketingbenefit• Forestryunitsconsistentlypopularevenif10xmoreexpensive,especiallywithindustrieswhichusepaper.Hydroandothercleantechnologyunitsalsopopular.• GlobalbuildingproductsmanufacturerbuyAfricancleanwaterunits– healthychildren.

ResourceIntelligenceAddresstoIETABPMR|Chongqing2016-01-21

Page 15: Carbon Offset Management Strategies and Best Practices ... 2016/Presentations... · 1/21/2016  · Strategies and Best Practices Forecasting, Selection, Optimisation Andrew Gunst

Whydosomeindustrialoperatorsnotbuythelowestcostunits?

ResourceIntelligenceAddresstoIETABPMR|Chongqing2016-01-21

Page 16: Carbon Offset Management Strategies and Best Practices ... 2016/Presentations... · 1/21/2016  · Strategies and Best Practices Forecasting, Selection, Optimisation Andrew Gunst

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

Page 17: Carbon Offset Management Strategies and Best Practices ... 2016/Presentations... · 1/21/2016  · Strategies and Best Practices Forecasting, Selection, Optimisation Andrew Gunst

Theneedforprofessionalskills

•Understandingthecarbonoffsetsoptionsforacompanyrequiresamixofprofessionalskills•processengineering,•accounting,• legal,•audit, audit,•marketing,

allwithcarbonexpertise.ResourceIntelligenceAddresstoIETABPMR|Chongqing2016-01-21

Page 18: Carbon Offset Management Strategies and Best Practices ... 2016/Presentations... · 1/21/2016  · Strategies and Best Practices Forecasting, Selection, Optimisation Andrew Gunst

.

Externalprofessional skills usedduringtheintroductionofcarbonreportingandpaymentinAustralia

ResourceIntelligenceAddresstoIETABPMR|Chongqing2016-01-21

Page 19: Carbon Offset Management Strategies and Best Practices ... 2016/Presentations... · 1/21/2016  · Strategies and Best Practices Forecasting, Selection, Optimisation Andrew Gunst

Quantifyingthesupportneeded.• Allofthemajorcompaniesarecapturedbythecarbon

schemes.Earlymoverswillbeabletominimisecostsandimprovetheircompetitivepositionwithintheirindustry.

• InAustralia300liableentitiesspentaverageAUD$0.5-1million(CNY¥3-6million)each.Californiasimilar.

• SeventradingschemesalreadyoperatinginChinacoverabout2,000companies;anationalschemewouldcovermorethan10,000companies.Eachofthosecompaniesmustgetreadyforthemandatoryreportingandthecarbontradingschemes…nomatteriftheyarestateownedorprivatecompanies.

ResourceIntelligenceAddresstoIETABPMR|Chongqing2016-01-21

Page 20: Carbon Offset Management Strategies and Best Practices ... 2016/Presentations... · 1/21/2016  · Strategies and Best Practices Forecasting, Selection, Optimisation Andrew Gunst

Whatvaluewilltheyadd?• Thosecarbonprofessionalswill:– Helpdeterminewhatmustbereportedandhowitshouldbemeasured.

– Buildsystemsforcompaniessotheycancalculateandreporttheircarbonemissions.

– Findtheopportunitiesforcompaniestocapitalisefromthenewcarbonschemescomparedtotheircompetitors.

ResourceIntelligenceAddresstoIETABPMR|Chongqing2016-01-21

Page 21: Carbon Offset Management Strategies and Best Practices ... 2016/Presentations... · 1/21/2016  · Strategies and Best Practices Forecasting, Selection, Optimisation Andrew Gunst

Acknowledgments

Dataandinformationinthispresentationthanksto:

ResourceIntelligence

CarbonIntelligence

CarbonMarketInstitute

InternationalEmissionsTrainingAssociation

AustralianInstituteofEnvironmentalAccounting

ResourceIntelligenceAddresstoIETABPMR|Chongqing2016-01-21

Page 22: Carbon Offset Management Strategies and Best Practices ... 2016/Presentations... · 1/21/2016  · Strategies and Best Practices Forecasting, Selection, Optimisation Andrew Gunst

ThankYou

Questions?AndrewGunst

Resource Intelligence PtyLimitedCarbonIntelligence PtyLimited

www.CarbonIntel.com.auLevel29,ChifleyTower,2ChifleySquare,SydneyNSW2000Australia

[email protected]

ResourceIntelligenceAddresstoIETABPMR|Chongqing2016-01-21


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