Calculating Scope 1 & 2 Emissions

Tom Klotz
GZA

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 Agenda

– Start with the Why (Session 1) 60 Minutes

• Economic Value to Measure, Manage, and Reduce Energy
• Energy Star, Energy Management Model
• CDP - Customers request

– Defining Boundaries (Session 2) 45 Minutes

• Organizational and Operational

– Calculating Scope 1 & 2 Emissions (Session 3): 45 Minutes

– Complete Carbon Foot Printing with Scope 3 (Session 4): 45 Minutes

– Allocating and Reporting Emissions (Session 5): 60 Minutes

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Agenda

GHG Emission Sources

Data Collection

Calculation Methods

Calculation Examples

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Agenda

GHG Emission Sources

Data Collection

Calculation Methods

Calculation Examples

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GHG Emission Sources

• Determine which emissions sources to include and how to

categorize emissions
• Direct and Indirect GHG Emissions
– Direct: emissions from sources owned or controlled by the reporting
company
– Indirect: emissions that are a consequence of the activities of the
reporting company but occur at sources owned or controlled by
another company
Indirect Emissions Direct Emissions Indirect Emissions

Upstream & Downstream Activities Power plant

Your operations
(owned by another company) (owned by utility company)

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GHG Emission Sources

The Greenhouse Gas Protocol

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GHG Emission Sources

The Greenhouse Gas Protocol

Optional Reporting

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GHG Emissions Sources – Scope 1

• Direct GHG emissions from sources a company owns

or controls
– Generation of electricity, heat, or steam
– Mobile combustion (Company owned/leased transportation)
– Physical or chemical processes
– Fugitive – intentional or unintentional releases
Scope 1
Direct Emissions

Your operations

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GHG Emissions Sources – Scope 2

• Indirect emissions from purchased electricity, steam,

heating and cooling
– For office-based businesses, Scope 2 usually most
significant
– Can be reduced through energy efficiency and
conservation Scope 2
Direct Emissions Indirect Emissions

Power plant
Your operations
(owned by utility company)

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Agenda

GHG Emission Sources

Data Collection

Calculation Methods

Calculation Examples

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Data Collection - Hierarchy

Invoices
(actual energy bills from utility)

Metered data

Emissions should be
derived based on the Inventory
following hierarchy:

Calculations (engineering)

Estimates (engineering)

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Data Collection – Activity Data
Needed
Emission Source Emission Type Gases to be Activity Data Where to Find
Reported Needed Activity Data
Boilers, Heaters, Stationary CO2, CH4, N2O Fuel consumption Utility invoices,
Generators, etc. Combustion Accounts payable,
(Scope 1) Meter readings,
Inventory
Electricity Purchased CO2, CH4, N2O Purchased Utility invoices,
Electricity Electricity Meter readings,
(Scope 2) Property
management
Vehicle Fleets Mobile Sources CO2, CH4, N2O Fuel consumption, Fleet management,
(Scope 1 or 3) total miles traveled, Accounts payable
vehicle fuel
economy
Refrigeration Fugitive Emissions HFCs, PFCs Equipment Inventory,
(Scope 1) inventory, Maintenance
Refrigerant records, Refrigerant
charge/leakage purchased

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Data Collection – Accounting
Spreadsheet

• A example of GHG Reporting Source Accounting Spreadsheet

• This document can be used as a master accounting form and includes:
– Scope 1 or Scope 2
– Type of Source
– Tracking Method
– Data Source & Owner
– Comments or Notes

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Data Collection – Scope 1
Approaches

Emission Source Approach

Fuel Combustion (Process

Track Fuel Use
Heaters, Turbines, Incinerators)

Process and Equipment Vents &

Oxidation/Reduction of Mass Balance Calculation
Substrates
Sales (Inventory), Life-Cycle
Refrigerants & Storage Tank
(Inventory), Screening (Emission
Leakage
Factor)

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Scope 1 Examples – Fuel
Combustion Sources

• Monthly invoices, meter readings, inventory, etc.

• Direct (usually your entire gas and/or fuel consumption)
– Boilers (coal, natural gas, LPG, fuel-oil, etc.)
– Gas heating (unit heater, infrared, direct/indirect fired)
– On-site electric generation (Solar & wind = 0 GHG emissions)
– Duct burners heat recovery steam
– Ovens, Incinerators, Furnaces
– Heated washers with stand-alone heaters
– Vehicles owned or controlled by company

Keep Account of Bio-mass Fuel Burned and Report Separately (Biogenic

Portion Only) and do not Include in GHG Totals

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Data Collection – Scope 2 Approaches

Emission Source Approach

Electricity (from off-site utility Track by account if emission

company) factors are known

Steam or Hot/Chilled Water from 3rd Identify source of delivered

Party off-site heat (coal, gas, bio-fuel, etc.)

Compressed Air (over the fence) Identify energy source

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Agenda

GHG Emission Sources

Data Collection

Calculation Methods

Calculation Examples

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Calculating Emissions - Systems

• Collected activity data should be entered into

calculation tools.
• Common systems include:

Third party
software
Internal
customized
system
Spreadsheet
system

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Calculating Emissions – Tools
Available

• Detailed guidance and calculation tools are provided

for free by the WRI/WBCSD GHG Protocol
– GHG Protocol http://www.ghgprotocol.org/

• Additional guidance with calculation methodologies:

– The Climate Registry
http://www.theclimateregistry.org/downloads/GRP.pdf
– EPA Mandatory GHG Reporting Rule
http://www.epa.gov/climatechange/emissions/ghgrulema
king.html

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Calculating Emissions – Tools
Available
http://www.ghgprotocol.org/calculation-tools/all-tools

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Calculating Emissions – Tools
Available
http://www.ghgprotocol.org/calculation-tools/all-tools

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Calculating Emissions – GWPs

• GHG emissions are reported based on the sum of six

gases on CO2 equivalent (CO2e) basis using their
Global Warming Potential (GWP)
• GWP is a measure of how much a gas contributes to
global warming GHG GWP (100 yr.)
• See GHG Protocol resource for CO 2 1
CH 25
a summary of IPCC AR4 values. 4

N2O 298
HFCs Varies (12-14,800)

• Primary GHGs and their GWP:

PFCs Varies (7,390 – 22,800)
SF6 22,800
GWPs applied by USEPA using
IPCC 4th Assessment Report (AR4)

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 Calculating Emissions – CO2e
Calculation

• Example CO2e calculation:

GHG Emissions GWP GHG Emissions
(tpy) (100 yr.) (CO2e)

CO2 50,000 x 1 = 50,000

CH4 60 x 25 = 1,500
N2O 1 x 298 = 298
HFC-32 5 x 675 = 3,375

PFC-14 3 x 7,390 = 22,170

Mass-Based CO2e-Based
Emissions = 50,069 tpy Emissions = 77,343 tpy

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GHG Emission Calculation Methods

• Emission Factor Method

– Most common approach
– Stationary and mobile combustion sources
• Mass Balance Method
– Fugitive emissions, process emissions
– Use raw material consumption data
• Direct Measurement – Continuous Emissions Monitoring
(CEMS)
– Uncommon
– Typically larger emitters such as power plants
The Emission Factor Approach is the Most Common and Considered the
Easiest Calculation Method

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Emission Factor Method – Sources
of Factors

• Scope 1 – Direct Fuel Combustion / Mobile

– GHG Protocol Calculation Tools
– IPCC Database
– EPA Mandatory Reporting (Table C-1 & 2)
– Environment Canada GHG Emissions Quantification Guidance
– Invoice Information from Supplier
– Testing (e.g. – coal carbon content)
• Scope 2
– US EPA eGrid
– International Energy Agency CO2 Emissions from Fuel Combustion

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Agenda

GHG Emission Sources

Data Collection

Calculation Methods

Calculation Examples

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Emission Factor Method – Calculation
Approach

• Emission factors for combustion of fuels or generation of electricity or

other utilities
• GHG = Volume X Calorific Value X Emission Factor
– Calorific Value – use common approach, either Gross (higher heating
value) or Net (lower heating value)
• Example: Scope 1 – Fuel Combustion
– Combustion of 1,000,000 ft3 of natural gas
– 1,000,000 ft3 (scf) X 0.00128 mmBtu/scf X 53.04 KG/mmBtu
 67,891 KG = 67.9 metric Tons CO2e
• CO2e = CO2 equivalent, emission factor from IPCC includes CO2, CH4, and
N2O

GHG = Volume X Calorific Value X Emission Factor

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Emission Factor Method – Calculation
Approach

• Example – Fuel Combustion of Boiler (Scope 1) in the US using the

invoice and inventory of coal by month/year
• Use default EPA Higher Heat Value (HHV), Emission Factor (EF) for type
of coal from Table C-1, and Global Warming Potential (GWP) from Table
A-1
– Volume = 9,000 short tons bituminous/year
– HHV = 17.25 mmBtu/short ton
– EFCO2 = 97.02 Kg CO2/mmBtu, GWPCO2 = 1
– EFCH4 = 0.011 kg CH4/mmBtu, GWPCH4 = 25
– EFN2O = 0.0016 kg N2O/mmBtu, GWPN2O = 298
• Calculate CO2 equivalent, (CO2e) Sum [Vol. X HHV X EF X GWP]
– CO2e = 9,000 X 17.25 X ((97.02 X 1)+(0.0011 X 25)+(0.0016 X 298))
=15,140,647 Kg = 15,140 Tonnes CO2e

CO2e = Volume x HHV x (EF x GWP)CO2 + (EF x GWP)CH4 + (EF X GWP)N2O

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Mass Balance Method – Calculation
Approach

• Input - Output = Emission

• Example: Iron/Steel in Blast Furnace

– Inputs – Coke, Coal, Limestone, electrodes, Cook Oven Gas
• = Weight X Carbon Content
– Output – Steel produced, iron not converted to steel, blast
furnace gas transferred
• =Weight X Carbon Content
– CO2 Emissions = Input – Output X 44/12 Tonnes

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Mass Balance Method –
Physical & Chemical Processes

• Use total emissions from calculation method using USEPA or

other industry-accepted methods
• USEPA method can be found at
http://www.epa.gov/climatechange/emissions/subpart.html

USEPA Website Provides Guidance Method for GHG Emissions

Calculations for Chemical and Production Processes

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 Scope 1 Example – Fugitive
Emissions

• HFC example from WRI Protocol

Sales Approach Life-Cycle Screening

Producers Users Users

+ Decrease in Inventory + Install Net Emissions 1. Install Emissions

+ Purchase / Acquisition (Installed Tons X Emission factor)
+ Use Net Emissions
-- Sales / Disbursements 2. Leakage Emissions
GHG Emissions (Charge X Emission factor)
GHG Emissions
3. Disposal Emissions
Users Calculation
Inventory Easiest Method
Same method, but deduct
increase charge Method to Use

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Scope 1 Example – Fugitive
Emissions

1. Installation or Production of New Air Conditioning (# units, type of

HFC/PFC)
2. Operation of units – leakage (# units, type of HFC/PFC)
3. Disposal of unit (# units, type of HFC/PFC)
Type of Equipment Air Conditioning…
Number of Units # new installed, ops, disposed Information
Refrigerant Used HFC / PFC
GWP of the Refrigerant Table 1
required
Total Refrigerant Charge (kg) Table 2 - estimate 1 kg/Ton
Assembly Emission Factor (%) Table 2
Annual Leakage Rate (%) Table 2 Reference
Recovery (%) Table 2
Refrigerant Destroyed (kg) Kg for disposal / recycle Data Provided
Equipment Lifetime (years) Years

Total Emission = Emissions from New Units Installed or Produced +

Operations Leakage Estimate – Disposal Credit

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 Scope 1 Example – Fugitive
Emissions

1. New Units Installed or Produced

A B C D E F G H
Refrigeration/Air- Number of Units Type of GWP of Original Refrigerant Assembly/Installation Conversion Factor Assembly Emissions
Conditioner Refrigerant Refrigerant Charge in Each Unit Emission Factor (tonnes/kilograms) (tonnes of CO2
Equipment Name (kilograms) equivalent/yr)

Optional Optional See Table 1 See Table 2 See Table 2 Bx DxExFxG

Installed 100 ton units 10 HFC 134a 1300 100.00 2% 1.00E-03 26

2. Operations Leakage Estimate
Refrigeration/Air- Number of Units Type of GWP of Refrigerant Charge Annual Leakage Rate (%) Conversion Factor Operation Emissions
Conditioner Refrigerant Refrigerant (kilograms) (tonnes/kilograms) (tonnes of CO2
Equipment Name equivalent/yr)

Optional Optional See Table 1 See Table 2 See Table 2 Bx DxExFxG

Operate Air Conditioning
Units 100 R-134a 1300 100.00 5% 1.00E-03 650

3. Disposal Credit
A B C D E F G H I J K
Refrigeration/Air- Number of Type of GWP of Original Refrigerant Annual Time since last Recycling Destruction Conversion Factor Disposal Emissions
Conditioner Units Refrigerant Refrigerant Charge (kilograms) Leakage Rate recharge (years) Efficiency (%) (kilograms) (tonnes/kilograms) (tonnes of CO2
Equipment Name (%) equivalent/yr)
((B x E) x ( 1 - (F * G ))
Optional See Table 1 See Table 2 See Table 2 See Table 2 x (1 - H)-I)* D * J
Removed 100 Ton Units 10 R-134a 1300 100.00 5% 10.00 90% 500.00 1.00E-03 (585.00)

Total Emission = 26 + 650 – 585 = 91 Metric Tons

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Scope 2 Example – Indirect Emission
Sources
– Indirect – produced off-site, consumed on-site
• Monthly Invoice or Meter readings
– Electricity (from off-site utility company…)
» Track by account if emission factors are known
 Renewable energy source
 Various emission factors (coal, hydro, nuclear…)
 Mix – use E-grid, Intergovernmental Panel on Climate Change, other
– Steam or Hot / Chilled Water from 3rd Party off-site
» Identify source of delivered heat – coal, gas, bio-fuel…
» Chilled Water – what’s energy source?
 Electric - 1KWh / Ton-Hour
– Compressed Air (over the fence)
» Identify energy source
 Electric – 3.5 KWh/1,000 Cubic Feet

Convert Utilities to Energy units & apply emission factors, e.g. –

500,000 ft3 air x 3.5 KWh/1,000 ft3 = 1,750 KWh Electricity
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 Scope 2 Example – Purchased
Electricity

• Plant in Australia
– Invoice has GHG emissions data
– Use information from invoice
– 3,382 MWh equates to 2,435 tonnes

• Plant in France
– No emission information on invoice
– 3,383 MWh used; use WRI table
– EF = 0.084953 Kg CO2e/KWh
– CO2e = 3,383 X 1,000 X 0.084953/1000
• 287 tonnes CO2e (lots of nuclear)

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Scope 2 Example – Purchased
Electricity

• Plant in Michigan, US – purchased electricity

– Invoice amount for a month = 3,382 MWh
– Use WRI reference “eGrid” data for Michigan
• CO2 = 1563.28 Lb./MWh, Emission Factor (EF)
• CH4 (Methane) = 33.93 Lb./GWh
• N2O (Nitrous Oxide) = 27.17 Lb./GWh
– Calculate CO2e = Sum of [Consumption X EF X GWP]
• 3,382 X 1563.28 X 1+3,382/1,000 X (33.93 X 21+27.17 X 310)
• 5,317,908 Lbs. CO2e X 0.45359 Kg/Lbs. / 1,000 Kg/Tonne
• 2,412 metric Tons (Tonnes) CO2e

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Scope 2 Example – Purchased Steam

1. Supplier provides emission factor (EF) on invoice

 CO2e = Consumption X EF

2. Alternatively, customer calculates emissions:

– Identify combustion source of purchased steam – coal, gas, combined
heat and power, bio-mass… to identify emission factor
– Example: 1,500,000 lbs./year @ 150 psig, No emission factor on
invoice. Steam from natural gas boiler
• 1,196 BTU/Lb. (steam table), EF = 53.04 Kg CO2e/mmBtu
– CO2e = 1,500,000/1,000,000 X 1,196 X 53.04
• 95,154 Kg = 95 metric Tons per Year CO2e

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Scope 2 Guidance

• On January 20, 2015, the Scope 2 Guidance, an amendment

to the GHG Protocol’s “Corporate Standard”, went into affect
– 2014 inventories do not need to conform with new guidance

• Guidance provides a unified, internationally-

consistent, transparent basis for companies
to account for electricity purchase, especially
relating to renewable resources

• The full guidance can be found at:

– http://ghgprotocol.org/files/ghgp/Scope%202%2
0Guidance_Final.pdf

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Scope 2 Guidance

• Key Changes:

– Companies that provide data in the form of contractual

instruments (e.g., RECs) now report scope 2 according to a
location-based method and a market-based method

– Instruments used to determine emission factors used in

market-based method must meet quality criteria

– The key features of a company’s contractual instruments

should be disclosed

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