Greening ports through Carbon Management

The maritime and aviation sectors are increasingly coming under pressure to respond to environmental demands to lower their carbon emissions. The pressure on the maritime sector to have a strong environmental position is coming from governments in the form of regulation, from manufacturers in the desire to improve sales, and increasingly from consumers with enhanced awareness about the environmental impact of distribution.

Science is telling us that an absolute reduction of 80% in GHG emissions is required by mid-century to prevent material damage to the world’s economy. This is at a time when global emissions are growing at their fastest rate ever. Each port and business within the maritime sector faces a similar challenge: how to grow profitably and reduce emissions.

If they take a strategic approach to carbon management it is possible for the maritime and aviation sectors to combine growth with a reduction in carbon emissions. These sectors must respond to the need to balance the demand for delivering internationally produced and manufactured goods, with the requirement to shift to a low carbon economy. As consumer demand increases for goods so does the quantity of greenhouse gas emissions (GHGs) through transportation. Leading retailers such as Walmart are putting pressure on manufacturers to disclose and improve the environmental footprint of their products, including distribution, by creating transparent measurements which will help them reward sustainable suppliers and products.

Within the maritime sector, ports, as fixed facilities, are able to lead the way in measuring and reducing carbon emissions. Forward thinking organisations such as the World Ports Climate Initiative (WPCI), under the leadership of the International Association of Ports and Harbors (IAPH), are playing an essential part in encouraging ports to be proactive and reduce their environmental impact. In order to achieve this goal it is essential to create programmes which enable ports to measure their carbon footprints, understand ways to reduce CO2 emissions and promote the use of renewable energy. These innovative projects are being led by the Port of Los Angeles which has measured its footprint and implemented programmes leading to significant greenhouse gas reduction. The Ports of Oslo and Rotterdam have also taken the first steps to implement carbon management strategies by calculating their carbon footprints. In addition to the work that the WPCI is currently undertaking in greening ports, The CarbonNeutral Company, which specializes in carbon management, has worked with The Port of Belfast since January 2008, to achieve CarbonNeutral® company status. CarbonNeutral company status was granted after The Port of Belfast had completed a four stage programme which involved:

Measuring all the carbon emissions produced at the Port; setting reduction targets; and reducing emissions through a comprehensive plan of reductions. This included a carbon offset programme where offsets were established as immediate, cost effective reductions to enable the port to meet the target of zero emissions and communicating and encouraging others to also put in place proactive plans to reduce their emissions.

A baseline study calculated that The Port of Belfast generated over 3,200 tonnes of carbon a year, the equivalent of 2,700 return flights between Belfast and New York. Electricity used to power items such as cranes and quay lighting were identified as the primary source of emissions. In order to reduce the carbon emissions to net zero, the Port’s carbon offsetting plan enabled it to counter balance every tonne of CO2 emitted with a tonne of CO2 saved by a validated emission reduction project that has met international standards. This was achieved through offsetting projects such as Callahuanca Hydro Power Project in Western Peru which delivers clean electricity to Peru’s National Grid, displacing energy that would otherwise have been supplied by fossil fuel fired power stations. In order to be able to offer carbon credits, offset projects have to show that they would not have happened without carbon financing.

Carbon offsets are an immediate and cost-effective way for a port to present itself as a credible low carbon business. Implementing an offset inclusive carbon management programme is a simple and immediate way to demonstrate leadership. A strong position on carbon management delivers real commercial advantages including additional planning permission benefits, enhanced relationships with the local community and a powerful competitive differentiator.

In order for ports to develop a strategic approach to carbon management, the first step is to assess the size of the issue by measuring their footprint. Measuring a carbon footprint entails measuring the amount of CO2 produced directly and indirectly over a period of time. For a footprint measurement to be credible it must do three things. Firstly, the boundary of the carbon assessment must be set in a clear and consistent way. Secondly, the port must ensure the assessment is completed according to a recognised standard. And finally, the measurement must use third party endorsed emissions factors. The most widely-accepted measurement Protocols are the WRI/WBCSD Greenhouse Gas Protocol (www.ghgprotocol.org).

Once the current status of the carbon footprint is established, a port can begin thinking about a reduction target. All the reduction proposals, both internal and offsets, can then be evaluated in terms of the amount of carbon reduced versus the cost of implementation. The target is met by selecting the most cost effective reduction measures available. In simple terms, the ports will pay to outsource emissions reductions when it is more cost-efficient or technologically feasible than doing so in-house, in the same way as if they were making the decision to outsource a business process like accounts payable or payroll. Every business makes strategic decisions to make or buy, to in-source or outsource, and delivering emissions reductions is no different. There is no doubt that climate change presents a significant risk to the planet and to business. However, as ports throughout the world think about how to make themselves ‘green’, they should remember that, if carbon management is considered strategically and proactively now, this risk can rapidly be turned into an opportunity. An opportunity to gain immediate commercial benefits from a strong carbon position, in addition to being prepared in advance for increased legislation and a rising cost of carbon in the future.

www.carbonneutral.com

About The CarbonNeutral Company:

Established more than a decade ago, The CarbonNeutral Company is a leading carbon offset and carbon management business, helping companies and organisations, throughout the world, to measure and reduce their carbon footprint. The company sources and retails carbon credits in any volume, across all major standards and from projects worldwide. The CarbonNeutral Company is committed to project quality and developing the best solution for each client. The company guarantees every tonne of carbon supplied, commissions a major international accounting firm to review and report on its carbon business, and is a member of the International Carbon Reduction and Offset Alliance (ICROA).