Carbon Management: Ports assess their options

The concept of carbon management is still in its infancy, and various approaches are emerging. Within the ports sector, most are engaged in carbon reduction initiatives such as renewable energy projects. Others are taking a systematic approach across their whole operation. This article provides an overview of some of the approaches being pursued. Articles in subsequent issues will examine case examples in more detail, and follow their progress over a period of time.

Terminology

The basic terms are “Carbon”, “Carbon Foot printing” and “Carbon Management”:

1. Carbon

‘Carbon’ is generally taken to refer to the GHG emissions covered by the Kyoto Protocol i.e. carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulphur hexafluoride (SF6). These are reported as CO2 equivalents.

2. Carbon Foot printing

‘Carbon foot printing’ is ascertaining the total set of greenhouse gas emissions caused directly or indirectly by an individual, organisation, event or product over a defined period of time. It involves creating a list of the organisation’s emissions sources, by activity, and actual emissions. This is an emissions register. At the simplest level this might be a list of all the electricity and fuel used on site, and the fuel used by the business’ vehicles. The emissions are converted to their carbon dioxide equivalent (or CO2-e) of global warming potential (GWP) with the help of conversion tables. Applying the correct conversion factors can be complicated. It is important to ensure that the correct factors are used. These will depend upon the scheme being followed, and will also vary by year and geographic region. The GWP of emissions will be influenced by a region’s environmental conditions. Emissions in Europe, for example, will have a different impact than in tropical latitudes determining the boundaries of the organisation, and the scope to be included, is also an important aspect. The GHG Protocol identifies 3 scopes:

Scope 1: Direct GHG emissions from sources owned or controlled by the company

Scope 2: Electricity indirect emissions from generation of purchased electricity consumed by the company

Scope 3: Other indirect emissions occurring as a result of the activities of the company

3. Carbon Management

‘Carbon management’ is a systematic approach to assessing a carbon footprint and using its results to reduce the organisations emissions and improve its efficiency. Different ports may have different drivers. These include cost reduction e.g. energy bills and legislation and regulation requirements e.g. taxes. Indications are that stakeholders including customers and suppliers prefer to work with ‘lower carbon’ businesses. Some may require it.

Standards, frameworks and tools

At the global level there, are two leading standards for calculating GHGs. These are:

– The Greenhouse Gas (GHG) Protocol: A Corporate Accounting and Reporting Standard (The GHG Protocol) (http:// www.ghgprotocol.org/standards)

– The ISO 14064-1 Standard (ISO 14064- 1:2006 Greenhouse Gases – Part 1 Specification with guidance at the organisation level for quantification and recording of greenhouse gas emissions). Both of these provide detailed guidelines on monitoring and reporting greenhouse gas emissions. ISO 14064 closely follows the GHG Protocol. Following the principles in these standards is important for organisations, particularly when wishing to have their emissions verified. The GHG Protocol principles should be complementary to any mandatory or voluntary schemes an organisation is participating in, but this should always be checked. There is a growing trend to assess the life cycle GHG emissions of products and services. In an effort to improve comparability and transparency the British Standards Institute (BSI) has developed a Publicly Accessible Standard with the Carbon Trust and DEFRA (UK Department of Food and Rural Affairs). This is PAS 2050 (PAS 2050:2008 – Specification for the assessment of the life cycle greenhouse gas emissions of goods and services ). This assesses the emissions of a product or service from its raw material inputs to its final disposal or recycling. This may be of interest where the carbon credentials of a particular aspect of the business are required e.g. as part of a customers supply chain assessment. A growing number of organisations and consultancies are developing expertise and approaches to carbon foot printing and carbon management. In the UK the government funded carbon trust is a leading institution in this area and works with its accredited consultancies.

Active ports and the WPCI

The World Ports Climate Initiative (WPCI) is focused on reducing the impact of port related emissions and also has a specific carbon foot printing programme. Many ports are also progressing on an individual basis. Examples are also given below of progress at three ports in the UK.

• Port of Felixstowe

• Port of Dover

• Belfast Harbour

WPCI emerged from the C40 cities initiative and was formalised in 2008. It is now under the chairmanship of the IAPH. Supported by the Clinton Climate Initiative (CCI) its principal aim is for ports to work together to improve air quality and reduce CO2 emissions. There are 5 main areas of work:

• initiatives to reduce CO2 emissions from:

– deep sea shipping

– port operations and design

– hinterland transport

• promoting the use of renewable energy

• developing carbon footprints.

The Port of Oslo has been active in Carbon footprint research. In July 2008 the CEO of the Port of Oslo, Ann Sigrid Hamran, presented calculations for Oslo and Rotterdam at the WPCI conference in Rotterdam. These were also presented in an article in the October/November 2008 issue of GreenPort Journal “Measuring a Port’s carbon footprint”.

WPCI Carbon foot printing

A key objective of this initiative is to prove the methodology and its applicability to any port, large or small. The ports of Oslo and Rotterdam were selected for an initial trial. The pilot was assisted by CCI and three stages for a carbon management strategy followed:

• Management Decisions requires the involvement and commitment of the management team in determining points such as stakeholder requirements, objectives risks and opportunities, communication strategy and the emission reduction target.

• Carbon Accounting establishes the carbon footprint through identifying and measuring emissions sources for scopes 1, 2 and 3 (see carbon foot printing box)

• Emissions Reductions takes the results and begins the process of keeping emissions monitored and importantly determining and implementing reduction opportunities.

Port of Felixstowe

The Port of Felixstowe began their journey following an energy survey. Having invited the Carbon Trust to undertake the survey in 2006, the port subsequently decided to follow the Carbon Trust’s full carbon management programme. Involving a detailed study, initiatives are identified to bring cost and environmental benefits to the port. The port is also progressing towards ISO14001 and will embed the Carbon Trust findings within their environmental management system (EMS).

Port of Dover

The Port of Dover has also used the services of the Carbon Trust. Commencing in July 2005 Dover Harbour Board (DHB) began a partnership with the Carbon Trust and Energy Management Solutions (EMS) to review the port’s energy consumption. Recommendations were implemented including ongoing upgrade of the Port’s Energy Information System. Comprehensive metering in defined operational areas is a critical component of energy management. In anticipation of the UK Carbon Reduction Commitment (CRC) DHB are striving to reduce their carbon emissions and achieve the Carbon Trust Standard based on their 2006 to 2008 emissions performance. This will provide independent recognition of successful emissions reductions and can reduce the cost of CRC compliance. DHB are using DEFRA guidelines for their emissions calculations which allows inclusion of emissions from electricity, fuel consumption, waste production, transport and vehicle emissions among many others in their footprint. Christine Marsh, Dover Harbour Board’s Environmental Officer, stresses the need to use the correct conversion factors. Depending on the reporting scheme used, these vary by year and by geographic region and the right factors must be applied to each year’s data. The resultant footprint will be influenced by the mix of activity at each port and over time. DHB will be providing statistics of their carbon footprint to other factors such as turnover, number of employees and port area. This will aid comparison and targeting areas for improvement. The Port’s Environmental Policy has now been updated to reflect the importance of reducing its carbon footprint, and carbon management initiatives are incorporated within their ISO14001 EMS.

The Carbon Trust’s Carbon Management programme is a five stage process and incorporates the principles of the GHG Protocol. For more information see: http://www. carbontrust.co.uk. Source: The Carbon Trust

Carbon Reduction Commitment

The CRC, a new carbon trading scheme developed by DEFRA, is applicable to non-energy intensive organisations in the UK. Starting in 2010 it will be applicable to all organisations with more than 6000MWh consumption measured through a half hourly electricity meter.

Belfast Harbour Company

In January 2008 Belfast Harbour Company (BHC) was certified as a Carbon neutral© company. Having begun with carbon foot printing in 2005 they have been working with Climate Neutral and the Edinburgh Centre for Carbon Management (ECCM). A programme was established to measure, verify and reduce emissions and offset any that were unavoidable. Key elements of the Carbon neutral© approach are

– Measure

– Set Targets

– Reduce

– Communicate

As with others, the GHG Protocol methodology underpins the emissions calculations. In addition Carbon Neutral provide verification of the business’s reported emissions and support offsetting any remaining emissions. BHC recognise offsetting isn’t a long term solution. However, the process has raised awareness and supported introduction of carbon budgets and a determined process of reduction. Since 2005 CO2 emissions have been reduced by 12%, recycling increased from 38% to 72% and landfill waste reduced by 240 tonnes to 432 tonnes. Cost benefits have also resulted. Championed by David Knott, their Safety and Environmental Manager, the port recognises the importance of a systematic approach. Its OHSAS 18001 (Occupational Health and Safety Management System) implementation has been used as the basis to introduce ISO14001 EMS together with the carbon management programme.

An important component

The examples illustrate the importance of taking a management approach to carbon reduction within the business. Ideally it should be approached in the same way as other management systems such as quality, safety or environmental management and become business as usual. The focus of carbon management is on climate change mitigation, reducing the operation’s emissions of GHGs. Climate change is, however, already having an impact. With its coastal or riverine vulnerability it is essential that a port also puts in place the necessary adaptation strategies to defend the business. Carbon management is only one component of a sustainable port.

Readers are invited to send their news and programmes. Please email: kate.royston@robbeesmole.com