ISO 14064

Awareness
Training Session
Course objectives:
• To understand the requirements of ISO14064-1 and know how to prepare an
organisation inventory according to GHG Protocol for Corporate Accounting

• To understand the requirements of ISO14064-3

• To understand the requirements of ISO14064-3

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Agenda

• Climate Change and GHG Framework

• Scope and Terms and Definitions (ISO14064-1)
• GHG Accounting and Reporting Principles (ISO14064)
• Organisational and operational boundaries (ISO14064)
• Quantification of GHG emissions and removals (ISO14064)

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Abbreviation
• Part I: ISO14064-1
• Part I: ISO14064-2
• Part III: ISO14064-3
• Protocol: GHG Protocol for Corporate Accounting
• RP: The Responsible Party

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Session Outline
• The facts of global warming

• The mechanism of GHG framework

• Scope (Part I, clause 1)

• Terms and definitions (Part I, clause 2)

• GHG accounting and reporting principles (Part I, clause 3)

• Organisational and operational boundaries (Part I, clause 4.1 & 4.2)

• Quantification of GHG emissions and removals (Part I, clause 4.3 - 4.6)

• GHG inventory quality management (Part I, clause 5,6,7,8)

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 The Facts of Global Warming

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The Facts of Global Warming
Vanishing Glaciers - Photos of Alaska Portage glacier in 1914 and 2004

02/03/2022 Awareness Training on ISO 14064 http://worldviewofglobalwarming.org/

The Facts of Global Warming
Arctic is thawing, and polar bear is facing extinction
The polar bear might be drowned due to no ice to stand

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The Facts of Global Warming
The Intergovernmental Panel on Climate Change (IPCC) is a scientific body tasked to
evaluate the risk of climate change caused by human activity.

IPCC was established in 1988 by the World Meteorological Organisation (WMO) and the
United Nations Environment Programme (UNEP), two organisations of the United Nations.

The Summary for Policymakers (SPM) is a summary of the IPCC reports intended to assist
policymakers. The content is determined by the scientists, but the form is approved line by
line by governments.

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The Facts of Global Warming
1995 - 2006 have been the warmest 12
years since 1850

The temperature increases 0.65°C in five

decades (1961-2006); it is six times more
than temperature increase (0.11°C) from
1850 to 1960

In the end of the 21st century, globally

averaged temperature is expected to raise
1.8 ~ 4 °C against the 20th century. Global
sea level will raise 0.18 ~ 0.59 meters

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IPCC-Summary for Policymaker, Feb 2nd 2007
 The Mechanism of
GHG Framework

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 GHG

Shortwave Temperature
Radiation

Long-wave
Radiation

Climate Changes

Human Activities Sea level

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Human Introspections
May 1992 United Nations Framework Convention on Climate Change (UNFCCC)

Dec 1993 The 50th country approved UNFCCC and UNFCCC was executed in Mar 1994
”Berlin Mandate” established a process that would enable the Parties to
Mar 1995 take appropriate actions for the period beyond 2000 through the adoption
of a protocol or other legal instructions
“Declaration of Geneva “ stated legally binding objectives and significant
July 1996 reductions in GHG emissions

Dec 1997 COP3 approved ”Kyoto Protocol”

1998 to 2003 COP discussed flexible mechanism details, rules and procedures
Annex I countries (55 countries) approved Kyoto Protocol and the total GHG
Nov 2004 emissions of Annex 1 countries were more than 55%
Feb 2005 “Kyoto Protocol” was on the road

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Human Introspections
United Nations Framework Convention on Climate Change (UNFCCC)

The ultimate goal of this Convention is to stabilize GHG concentrations in the

atmosphere at a level that would prevent dangerous anthropogenic
interference from the climate system

On the basis of equity and in accordance with their common but differentiated
responsibilities and respective capabilities.

Two parties, Annex I and Non-Annex I, undertake different responsibilities

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Human Introspections
Annex I countries (38 countries)

· Australia · Hungary* · Russian Federation*

· Austria · Iceland · Spain
· Belarus* · Ireland · Sweden
· Belgium · Italy · Switzerland
· Bulgaria* · Japan
· Turkey
· Canada · Latvia*
· Czechoslovakia* · Ukraine*
· Lithuania*
· Denmark · United Kingdom of
· Luxembourg Great Britain and
· European Economic · Netherlands
Community Northern Ireland
· Estonia* · New Zealand · United States of
· Finland · Norway America
· France · Poland*
· Germany · Portugal
· Greece · Romania*

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* Countries that are undergoing the process of transition to a market economy
Control Targets
The six greenhouse gases (GHGs) covered by the Kyoto Protocol are

Carbon Dioxide (CO2)

Methane (CH4)
Nitrous Oxide (N2O)
Hydro fluorocarbons (HFCs)
Per fluorinated Compounds (PFCs)
Sulfur Hexafluoride (SF6)

Other GHG Programs might cover addtional GHGs, e.g. Fluorcarbons that are
covered by the Montreal Protocol

E.g. R22 (CFCs) is covered under Montreal Protocol but R23 (HFCs) is covered
under Kyoto Protocol

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Control Targets
Kyoto Protocol
Reduction Targets ： average 5% reduction for Annex 1 countries

GHG Base-year Target Rate Country

European Union (15 countries)

Switzerland, Lithuania, Czechoslovakia,
Latvia ,Romania, Portugal, etc.

CO2 - 8% Non Annex 1 countries

CH4 Morocco 、 Slovenia 、 Liechtenstein
N2O 1990 2008~2012
HFCs
PFCs - 7% America
SF6
- 6% Japan, Canada, Hungary , Poland
- 5% Croatia (Non Annex 1)
0% New Zealand , Russian Federation , Ukraine
+ 1% Norway
+ 8% Australia
+ 10% Iceland
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Flexible Mechanisms
Kyoto Protocol – Flexible Mechanism

Clean Development Mechanism, CDM

Annex I countries invest in Non-Annex I countries’ reduction projects by
providing funding or technologies. Annex I countries can obtain Certified
Emission Reductions (CERs) to achieve reduction commitment
Similar to ISO14064-2

Joint Implementation, JI
Annex I countries invest in other Annex I countries’ reduction projects by
providing funding or technologies. Annex I countries can obtain Emission
Reductions Units (ERUs) to achieve reduction commitment
Similar to ISO14064-2

Emission Trading, ET
GHG credits can be traded in market, but only for Annex I countries

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Standard and Protocol
International Standard (ISO 14064, 01 March 2006)

ISO 14064-1 – Specification with guidance at the organisation level for

quantification and reporting of greenhouse gas emissions and removals

ISO 14064-2 – Specification with guidance at the project level for quantification,
monitoring and reporting of greenhouse gas emission reductions or removal
enhancements

ISO 14064-3 – Specification with guidance for the validation and verification of
greenhouse gas assertions

ISO14064-3 is aimed to verify inventories developed by ISO14064-1 and

validate/verify projects developed by ISO14064-2

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Standard and Protocol
 GHG protocol: A Corporate Accounting and Reporting Standard (revised version)

 Developed by WBCSD and WRI

 Five inventory tools:

1. Organisational and operational boundaries investigation table

2. GHG emission sources identification table
A. Stationary combustion
B. Mobile combustion
C. Process emissions
D. Fugitive emissions
3. GHG activity data management table
4. GHG emission factors management table
5. GHG emissions calculation table
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Standard and Protocol
Structure of the ISO 14064 Standard •
Part 1: GHG Inventories
• Specifications for the quantification, monitoring and reporting of entity emissions and
removals •
Part 2: GHG Projects
• Specifications for the quantification, monitoring and reporting of project emissions
and removals •
Part 3: Verification
• Specifications and guidance for validation, verification and certification

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GHG Inventory Design and Development
Organisation
Process Implementation
Training and Programme  Identification of GHG
education sources and sinks
 GHG activity data
 GHG emission or
Quantification removal factor
 GHG information Steps and Exclusion
 Calculation of GHG
management emissions or removals
 Document retention  Inventory
and record keeping
Management
procedure
Procedures
 Base-year
recalculation
procedure
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GHG Reduction
Project-based reduction:
Organisational reduction:
Cap and trade (ISO14064-1 ) Project and credit (ISO14064-2)

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 Stationary Greenhouse Global warming
Mobile Effects Sea level raise
Process
Fugitive Human
Human Introspection
Activity
UNFCCC
Confirmation of Kyoto Protocol
GHG emissions
Validation and and reductions
Verification Control Target
Confirmed
approach
GHG Reduction
Continual Measurement and CO2 、 CH4 、 N2O
Improvement Calculation HFCs 、 PFCs 、 SF6
Organisational Reduction Flexible
Project Reduction Continual Mechanism
Improvement
EU ETS CDM 、 JI 、 ETS
ISO 14064 Standard and
Scheme GHG Protocol Protocol

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DRIVERS FOR REPORTING
 Concerns from customers and investors
 Corporate Social Responsibility
 Carbon disclosure project, “CDP”

 Expected market advantages

 Carbon neutral product
 Potential trade sanctions

 Opportunities of carbon trading

 Cap and trade
 Project and credit

 Requirements from mandatory schemes

 Kyoto Protocol
 EUETS
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 ISO 14064-1
Specification with guidance at the organisation level for quantification and reporting of
greenhouse gas emissions and removals
Scope (1)
• ISO14064-1 specifies principles and requirements at the organisation level for
quantification and reporting of GHG emissions and removals

• ISO14064-1 includes requirements for the design, development, management,

reporting and verification of an organisation's GHG inventory

• ISO 14064 is GHG programme neutral. If a GHG programme is applicable,

requirements of that GHG programme are additional to the requirements of ISO
14064

• If a requirement of ISO 14064 prohibits an organisation or a GHG project

proponent from complying with a requirement of the GHG programme, the
requirement of the GHG programme takes precedence

• ISO14064 is the basis from which a scheme can add or remove elements of
ISO14064
02/03/2022
considering its specific demands
Awareness Training on ISO 14064
Scope (1)
No matter the organisations are complex or simple, they shall comply with the
requirements of ISO14064-1 to design, develop, manage, and report their GHG
inventories

Complex organisations or sectors generally adopt specific methodologies to develop

inventories

Process emissions: Ferrous metals, mineral oil refining, mineral industries (lime,
cement, ceramics, glass), pulp and paper

Simple organisations or sectors generally do not adopt specific methodologies but

report common emission sources into inventories

Office-based organisations such as financial institutions, schools, governmental

agencies…

Report common sources such as electricity, gasoline (company vehicles), septic tank
(methane), refrigerant (air conditioning), combustion devices (natural gas)
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Relationship Between the Parts of ISO 14064
ISO 14064-1
ISO 14064-2
Design and develop
Design and implement
organisational GHG
GHG projects
inventories

GHG Inventory GHG project documentation

documentation and reports and reports

Requirements of the
applicable GHG
GHG assertion Level of assurance GHG assertion program or
consistent with intended users
Verification needs of intend Validation and/or
users verification

ISO 14064-3
Verification process Validation and verification process

Accreditation or recognition Programme

Programme
(e.g. ISO14065) specific
specific
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 ISO 14064-1

Terms and Definitions

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Terms and Definitions
• Greenhouse Gas “GHG” (2.1)
• GHGs include carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons
(HFCS), perfluorocarbons (PFCS), and sulfur hexafluoride (SF6)

• Greenhouse Gas Source (2.2)

• Physical unit or process that releases a GHG into the atmosphere
• Greenhouse Gas Emission (2.5)
• Total mass of a GHG released to the atmosphere over a specified period of time

• Greenhouse Gas Sink (2.3)

• Physical unit or process that removes a GHG from the atmosphere
• Greenhouse gas removal (2.6)
• Total mass of a GHG removed from the atmosphere over a specified period time

• Greenhouse Gas Reservoir (2.4)

• physical unit or component of the biosphere, geosphere or hydrosphere with the capability to
store or accumulate a GHG removed from the atmosphere by a greenhouse gas sink or a GHG
captured from a greenhouse gas source
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 Interaction and Application of Several Definitions
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Source: ISO 14064 Part 2
Terms and Definitions
• Greenhouse Gas Emission or Removal Factor (2.7)
• Factor relating activity data to GHG emissions or removals
• Factor could include an oxidation component

• Direct Greenhouse Gas Emission (2.8)

• GHG emission from greenhouse gas sources owned or controlled by the
organisation

• Energy Indirect Greenhouse Gas Emission (2.9)

• GHG emission from the generation of imported electricity, heat or steam
consumed by the organisation

• Other Indirect Greenhouse Gas Emission (2.10)

• GHG emission, other than energy indirect GHG emissions, which is a
consequence of an organisation’s activities, but arises from greenhouse
gas sources that are owned or controlled by other organisations
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Terms and Definitions
• Greenhouse Gas Activity Data (2.11)
• Quantitative measure of activity that results in a GHG emission or removal

• Global Warming Potential GWP (2.18)

• Factor describing the radiative forcing impact of one mass-based unit of a given
GHG relative to an equivalent unit of carbon dioxide over a given period of time

• Carbon Dioxide Equivalent CO2e (2.19)

• Unit for comparing the radiative forcing of a GHG to carbon dioxide

• Base Year (2.20)

• Historical period specified for the purpose of comparing GHG emissions or
removals or other GHG-related information over time

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Terms and Definitions
• Facility (2.21)
• Single installation, set of installations or production processes, which can be defined
within a single geographical boundary, organisation unit or production process

• Organisation (2.22)
• Company, corporation, firm, enterprise, authority or institution, or part or
combination thereof, whether incorporated or not, public or private, that has its
own functions and administration

• Responsible Party (2.23)

• Person or persons responsible for the provision of the GHG assertion and the
supporting GHG information

• Client (2.25)
• Organisation or person requesting verification

• Intended User (2.24)

• Individual or organisation identified by those reporting GHG –related information as
being the one who relies on that information to make decisions
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Terms and Definitions

• Level of assurance (2.27)

• Degree of assurance the intended user requires in a validation or verification

• Materiality (2.28)
• Concept that individual or an aggregate of errors, omissions and
misrepresentations could affect the GHG assertion and could influence the
intended users’ decisions

• Material discrepancy (2.29)

• Individual or an aggregate of actual errors, omissions and
misrepresentations in the GHG assertion that could affect the decisions of
the intended users

• Uncertainty (2.37)
• Parameter associated with the result of quantification which characterizes
the dispersion of the values that could be reasonably attributed to the
quantified amount
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Terms and Definitions
• Greenhouse Gas Assertion (2.12)
• Declaration or factual and objective statement made by the responsible party

• Greenhouse Gas Report (2.17)

• Stand-alone document intended to communicate an organisation's or project's
GHG-related information to its intended users

• Verification (2.35)
• Systematic, independent and documented process for the evaluation of a GHG
assertion against agreed verification criteria

• Verifier (2.36)
• Competent and independent person, or persons, with responsibility for
performing and reporting on the verification process

• Verification Statement (2.33)

• Formal written declaration to the intended user that provides assurance on the
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statements in the GHG assertion of the responsible party
 ISO 14064-1

GHG Accounting and

Reporting Principles

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Interpreting ISO standards
• Shall (IAF)
• indicating those provisions which, reflecting the requirements of the relevant
standard, are mandatory.

• Should (IAF)
• indicating recognised means of meeting the requirements of the standard.
• A validation or verification body (V/VB) can meet these in an equivalent way
provided this can be demonstrated to an Accreditation Body (AB)

Those clauses with “shall” in Part I and Part III must be fulfilled!

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Five Accounting Principles
• The application of principles is fundamental to ensure that GHG-related information
is a true and fair account. The principles are the basis for, and will guide the
application of, requirements in this part of ISO 14064 (3.1)

• Relevance (3.2)
• Completeness (3.3)
• Consistency (3.4)
• Accuracy (3.5)
• Transparency (3.6)

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GHG and Financial Statements
Quantification of GHG Financial Statements

Identify Emission Statement of Change in

Source Stockholder’s Equity
Activity Data Cash-Flow Statement
Emission Factor Income Statement
Inventory Balance Sheet
Assets Liabilities
Emission
Trading GHG Credits GHG Emissions

Equity of
GHG reduction Shareholder
$

Government Investor Customer Shareholder

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GHG and Financial Statements

This is not only an environmental auditing

This is also equivalent to FINANCIAL STATEMENT AUDITING!

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Accounting Principle - Relevance

• Select the GHG sources, GHG sinks, GHG reservoirs, data and methodologies
appropriate to the needs of the intended user (3.2)

• Protocol: Selection of an appropriate inventory boundary that reflects the substance

and economic reality of the company’s business relationships

• Organisational structures: control, ownership, joint venture

• Operational boundaries: activities, processes, services
• Business context: industry sectors, nature of activities

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Accounting Principle - Completeness
• Include all relevant GHG emissions and removals (3.3)

• Protocol: All relevant emissions sources within the chosen inventory boundary need to
be accounted for so that a comprehensive and meaningful inventory is compiled

• Protocol: completeness principle vs. minimum emissions accounting threshold

• Part I, 4.3.1 (minimum emissions accounting threshold)
• Emissions not material
• Quantification not technically feasible
• Quantification not cost effective

• Protocol: Verifiers can determine the potential impact and relevance of the exclusion, or
lack of quality, on the overall inventory report

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Accounting Principle - Consistency
• Enable meaningful comparisons in GHG-related information (3.4)

• Protocol: Track and compare GHG emissions information over time in order to meet
the requirements of intended users

• Consistency of accounting approaches, inventory boundary, and calculation

methodologies
• The aggregate information is internally consistent and comparable over time
• If there are any changes affecting emission estimates, they shall be transparently
documented and justified

E.g. Consistency of base-year data and current year data

02/03/2022 Awareness Training on ISO 14064

Accounting Principle - Accuracy
• Reduce biases and uncertainties as far as possible (3.5)

• Protocol: Data should be sufficiently precise to enable intended users to make

decisions with reasonable assurance that the reported information is credible

Verifiers shall judge if the accuracy of reported information meets the requirements
of intended users according to the reporting purposes

E.g. EUETS has different tiers for different sectors

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Accounting Principle - Transparency

• Disclose sufficient and appropriate GHG-related information to allow intended users

to make decisions with reasonable confidence (3.6)

• Protocol: The information should be sufficient to enable a third party to derive the
same results if provided with the same source data

A “transparent” report can help intended users understand the GHG emissions and
GHG information management of an organisation

The verifier shall obtain transparent GHG information in order to establish appropriate
audit trails by which to verify and form his/her verification opinion

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 ISO 14064-1
Organisational and Operational
Boundaries

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Organisational and Operational
Boundaries
• According to the principle of relevance, the organisation should indicate the organisational
boundaries and operational boundaries when reporting GHG information

• The following figure illustrates the organisational boundaries and operational boundaries
for a sample company

02/03/2022 Awareness Training on ISO 14064 GHG Protocol

Organisational Boundaries (4.1)
Confirmation of the inventory boundaries GHG Emission Source

Facility
GHG Emission Source
Organisation
GHG Emission Source
Facility

GHG Emission Source

Company Factory Boiler, Vehicles, etc

E.g.

• The organisation could be sole proprietorship, joint ventures, subsidiaries or other

types of organisations
• The organisation should use equity share or control approach to consolidate its
facility-level GHG emissions
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GHG Protocol
Organisational Boundaries (4.1)
• Equity share approach

The organisation accounts for its portion of GHG emissions and/or removals from
respective facilities

E.g. Company A owns 70% interest in company C, and company B owns 30%
interest in company C.

Company C emitted 1 million tonnes CO2e last year. Under equity share approach,
company A was assigned 700,000 tonnes CO2e and company B was assigned
300,000 tonnes CO2e

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Organisational Boundaries (4.1)
• Control approach

The organisation accounts for all quantified GHG emissions and/or removals from
facilities over which it has financial or operational control

E.g. Company A owns 70% interest in company C, and company B owns 30%
interest in company C. Company B has control over company C’s operational policy.

Company C emitted 1 million tonnes CO2e last year. Under control approach,
company A was assigned 0 tonnes CO2e and company B was assigned 1,000,000
tonnes CO2e

Under the control approach, an organisation accounts for 100% of the GHG
emissions/removals from operation over which it has control. Control may be
defined in either financial or operational terms (A.2)

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Organisational Boundaries (4.1)
• Operational control: an organisation or its subsidiaries has the full authority to
introduce and implement its operating policies at the operation level (A.2)

• Having operational control does not mean that a company necessarily has authority
to make all decisions concerning an operation (Protocol)

• E.g. To invest big capital in an existing incineration plant will likely require the
approval of all partners that have joint financial control, but the partners may not
have operational control because it is the operator to introduce and implement
operational policies (investing big capital)

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Organisational Boundaries (4.1)
• Financial control: an organisation has the ability to direct the financial and operating
policies of the operation with a view to gain benefits from its activities (A.2)

• The economic substance of the relationship between the company and the
operation takes precedence over the legal status (Protocol)

• Taking into account the voting rights

• May have financial control but own less than 50% shares
• Financial control if the operation is considered as a group company or subsidiary
• Based on the equity share approach if emissions from joint ventures where
partners have joint financial control

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Organisational Boundaries
ISO14064 is a voluntary reporting standard, the RP has rights to decide which facilities are
included in the organisational boundaries

Control approach and equity share approach are to consolidate facility level GHG emissions to the
organisational level

E.g. Company X has 3 domestic facilities and 2 overseas facilities

Company X can choose to report on its 3 domestic facilities only (the organisational boundaries)

Company X shall choose either control or equity share approach to consolidate the GHG
emissions of the 3 facilities into the company

The emissions can not represent the company’s total emissions because only 3 of 5 facilities
included

The verifier shall clearly list the names of the facilities verified in the verification statement to
avoid any misinterpretation of the GHG emissions

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Operational Boundaries (4.2)
• The establishment of operational boundaries includes identifying GHG emissions and
removals associated with the organisation's operations, categorizing GHG emissions
and removals into direct emissions, energy indirect emissions and other indirect
emissions

• Direct emissions: GHG emissions from sources that companies own or control
(Protocol)

• Indirect emissions: GHG emissions that are a consequence of the activities of the
company but the GHG emission sources are owned or controlled by another
company (Protocol)

• Energy indirect emissions

• Other indirect emissions

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Operational Boundaries (4.2)
• Scope 1: Direct GHG emissions
• The organisation shall quantify direct GHG emissions and GHG removals from
facilities within its organisational boundaries

• Direct GHG emissions from electricity, heat and steam generated and exported or
distributed by the organisation may be reported separately, but shall not be
deducted from the organisation's total direct GHG emissions

• CO2 emissions from the combustion of biomass shall be quantified separately

• Scope 2: Energy indirect GHG emissions

• The organisation shall quantify indirect GHG emissions from the generation of
imported electricity, heat or steam consumed by the organisation

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Operational Boundaries (4.2)
• Scope 3: Other indirect GHG emissions

• The organisation may quantify other indirect GHG emissions based on requirements
of the applicable GHG programme, internal reporting needs or the intended use for
the GHG inventory

• (Protocol) Companies shall separately account for and report on scopes 1 and 2 at a
minimum

Q: Company A imports electricity and exports all the imported electricity to company B.
Shall company A identify and quantify the electricity? What scope is the electricity
categorized?

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Operational Boundaries (4.2)
• GHG emissions are principally the result of the following types of activities undertaken
by the company (Protocol) :

• Stationary combustion
• Combustion of fuels in stationary equipment such as boilers, furnaces,
burners, turbines, heaters, incinerators, engines, flares, etc.

• Mobile combustion
• Combustion of fuels in transportation devices such as automobiles, trucks,
buses, trains, airplanes, boats, ships, barges, vessels, etc.

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Operational Boundaries (4.2)

• GHG emissions are principally the result of the following types of activities undertaken
by the company (Protocol):

• Process emissions
• Emissions from physical or chemical processes such as CO2 from the calcination
step in cement manufacturing, CO2 from catalytic cracking in petrochemical
processing, PFC emissions from aluminum smelting, etc.

• Fugitive emissions
• Intentional and unintentional releases such as equipment leaks from joints,
seals, packing, gaskets, as well as fugitive emissions from coal piles, wastewater
treatment, pits, cooling towers, gas processing facilities, etc.

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Operational Boundaries (4.2)
Scope Scope 1 Scope 2 Scope 3
(sources)
Direct GHG Energy Indirect GHG Other Indirect GHG
Emissions and Emissions Emissions
Removals
Types of Stationary Stationary Stationary
activities
Mobile Mobile Mobile

Process Process Process

Fugitive Fugitive Fugitive

Reporting Shall be calculated Optional

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Leased assets, outsourcing and franchises
• Use one consolidation approach to categorize emissions from contractual
arrangements (leased assets, outsourcing, franchises)

• Equity share or financial control approach

• A lessee only accounts for emissions from leased assets that are treated as
wholly owned assets (finance lease or capital lease) and are recorded on the
balance sheet, e.g. leased cars and leased dormitory

• Operational control approach

• The lessee only accounts for emissions from leased assets that it operates, e.g.
leased cars and leased building

Q: Company A rents an apartment for its employees. Who shall account for the
emissions from the apartment under equity share approach and operational
control approach?
02/03/2022 Awareness Training on ISO 14064
GHG Protocol
 ISO 14064-1

Quantification of GHG Emissions

and Removals

02/03/2022 Awareness Training on ISO 14064

Quantification Steps and Exclusions (4.3.1)
• Within its organisational boundaries, the organisation shall quantify and document
GHG emissions and removals by completing, as applicable, the following steps:

• Identification of GHG sources and sinks (4.3.2)

• Selection of quantification methodologies (4.3.3)

• Selection and collection of GHG activity data (4.3.4)

• Selection or development of GHG emission or removal factors (4.3.5)

• Calculation of GHG emissions and removals (4.3.6)

02/03/2022 Awareness Training on ISO 14064

Quantification Steps and Exclusions
(4.3.1)
 The organisation may exclude from quantification direct or indirect GHG sources
or sinks whose contribution to GHG emissions or removals is not material or
whose quantification would not be technically feasible or cost effective

So called “Minimum Emissions Accounting Threshold”

Relationship with completeness principle
Suggest to request the RP to report and quantify every source in the first
time inventory, then decide which emission is material or not

 The organisation shall explain why certain GHG sources or sinks are excluded
from quantification

02/03/2022 Awareness Training on ISO 14064

Identification of GHG Sources and Sinks
(4.3.2)
• The organisation shall identify and document GHG sources contributing to its direct
GHG emissions

• The organisation should separately document suppliers of imported electricity, heat or

steam consumed by the organisation

• The organisation shall, as appropriate, categorize identified GHG sources and sinks

Q: Can the RP apply “minimum emissions accounting threshold” to exclude from
identification of GHG sources and sinks?

02/03/2022 Awareness Training on ISO 14064

Selection of Quantification Methodologies (4.3.3)
• The organisation shall select and use quantification methodologies that will reasonably minimize
uncertainty and yield accurate, consistent and reproducible results

• Quantification methodologies can be classified into the following types

• Calculation based on
• GHG activity data multiplied by GHG emission or removal factors
E.g. 1000 m3 of gasoline x 2.24 CO2 tonnes/m3

• The use of models

Emissions of PFCi = (PFCi)(1-h)[(1-Ci)(1-Ai)(GWPi)+(Bi)(1-ACF4)(GWPCF4)] (IPCC Guideline 2006)

• Facility-specific correlations
Use Plant A’s assumptions to calculate Plant B’s emissions assuming the two plants are
identical or similar

• Mass balance approach

E.g. CaCO3 CO2 + CaO
02/03/2022 Awareness Training on ISO 14064
Selection of Quantification Methodologies
(4.3.3)
• Measurement, either
• Continuous or intermittent
E.g. Continuous Emission Monitoring System (CEMS)

• Combination of measurement and calculation

Comparisons of Accuracy
Measurement>Mass balance>Activity factor*Emission factor
Local emission factor> Domestic emission factor> International emission factor

• The organisation shall explain any changes to quantification methodologies previously

used by the organisation

02/03/2022 Awareness Training on ISO 14064

Selection and Collection of GHG Activity Data (4.3.4)
• The organisation shall select and collect GHG activity data consistent with the
requirements of the selected quantification methodology

Scope 1 (Direct GHG emissions):

Consumption of fuel, raw material, gasoline and refrigerant
E.g. 10 m3 diesel, 1 tonne clinker, and 500 liter gasoline

Scope 2 (Energy indirect GHG emissions):

E.g. Electricity bill

Scope 3 (Other indirect GHG emissions):

usually qualitative but not quantitative
E.g. Waste disposal, outsourcing transportation

02/03/2022 Awareness Training on ISO 14064

Selection or Development of GHG Emission or Removal Factors (4.3.5)

• The organisation shall select or develop GHG emission and removal factors that:

• are derived from a recognized origin

IPCC 2006, IEA, IISI, Your Scheme

• are appropriate for the GHG source or sink concerned

Use designated GHG emission factors in specific industry

• are current at the time of quantification

 Use the most updated EF which is more accurate

• take account of quantification uncertainty and are calculated in a manner intended to yield accurate and
reproducible results
The uncertainty of national electricity emission factor is higher than that of local grid emission factor

• are consistent with the intended use of the GHG inventory

 The RP shall report the inventory in accordance with the requirements of the intended users, e.g.
scheme requirements

Q: Shall we adopt the current GWPs?

02/03/2022 Awareness Training on ISO 14064
GWPs of IPCC SAR, TAR, and AR4
GHGs GWPs

Origin IPCC SAR (1996) IPCC TAR (2001) IPCC AR4 (2007)

CO2 1 1 1
CH4 21 23 25
N2 O 310 296 298
HFCs 140~11,700 120 ~ 12,000 140 ~ 14,800

PFCs 7,000~9,200 5,700 ~ 11,900 7,390 ~ 17,200

SF6 23,900 22,200 22,800

Selection or Development of GHG
Emission or Removal Factors (4.3.5)
Commonly used GHG emission factors
Stationary combustion: 2.53 kg-CO2/kg-coal, 2.26 kg-CO2/L-gasoline, 2.09 kg-CO2/m3-
natural gas (IPCC 2006)

Mobile combustion:
Check first the direct fuel consumptions, which is multiplied by GHG emission
factors
If no fuel consumption data is available, the mileage data should be converted into
fuel consumptions
E.g. 1020 km ÷ 10.2 km/L gas consumption rate (Mercedes Benz S320) = 100 liters
GHG emissions: 100L x 2.26 kg CO2 /L = 226 kg CO2 / y

Process emissions: the organisation may refer to recognized origin (e.g. IISI) or develop
its own GHG emission factors
02/03/2022 Awareness Training on ISO 14064
Selection or Development of GHG
Emission or Removal Factors (4.3.5)
Commonly used emissions factors (continued)

Fugitive emissions (IPCC Good Practice 2006):

Chapter 5.2 Waste – Emissions from Wastewater Handling
Anaerobic wastewater treatment: 0.6 kg-CH4/kg-BOD
Anaerobic sludge digestion: 0.25kg-CH4/kg-COD
Septic tanks: 0.6 kg-CH4/kg-BOD

Q: What will be the emission factor for refrigerant?

Priority to select GHG emission factors

Organisation-specific GHG emission factors
Regional/Country published GHG emission factors
Relative international business associations or organisations published GHG
emission factors
02/03/2022 Awareness Training on ISO 14064
 ISO 14064-1
GHG Inventory
Quality Management

02/03/2022 Awareness Training on ISO 14064

Chapter Outline
• GHG inventory component (Part I, clause 5)

• GHG inventory quality management (Part I, clause 6)

• Reporting of GHG (Part I, clause 7)

• Organisation’s role in verification activities (Part I, clause 8)

02/03/2022 Awareness Training on ISO 14064

Component of GHG Inventory
• GHG inventory includes following information:

• GHG emissions and removals (5.1)

• Organisational activities to reduce GHG emissions or increase GHG removals

(5.2)

• Base-year GHG inventory (5.3)

• Assessing and reducing uncertainty (5.4)

02/03/2022 Awareness Training on ISO 14064

GHG Inventory Components (5.0)
• The organisation shall document the following components in GHG inventory:
• GHG emissions and removals (5.1)
• Base-year GHG inventory (5.3)

• The organisation may plan and implement directed actions to reduce or prevent GHG
emissions or increase GHG removals (5.2)

• The organisation should complete and document an uncertainty assessment for GHG
emissions and removals, including the uncertainty associated with emission and
removal factors (5.4)

• The organisation shall use tonnes as the unit of measure and shall convert the
quantity of each type of GHG to tonnes of CO2e using appropriate GWPs (5.1)

02/03/2022 Awareness Training on ISO 14064

GHG Emissions and Removals (5.1)
• The organisation shall document the following, where quantified in accordance with Clause 4,
separately at facility and organisation levels:

• Direct GHG emissions for each GHG (4.2.2)

• GHG removals ( 4.2.2, 4.3.6)

• Energy indirect GHG emissions (4.2.3)

• Other indirect GHG emissions (4.2.4)

• Direct CO2 emissions from the combustion of biomass (4.2.2)

02/03/2022 Awareness Training on ISO 14064

Base-Year and Performance Tracking
• The organisation shall establish a historical base year for (5.3.1)
• Comparative purposes
• Meet GHG programme requirements
• Other intended uses of the GHG inventory

• In establishing the base year, the organisation

a)shall quantify base-year GHG emissions and removals using data representative of
the organisation's activity, typically single-year data, a multi-year average or a
rolling average
b)shall select a base year for which verifiable GHG emissions or removals data are
available
c)shall explain the selection of the base year
d)shall develop a GHG inventory for the base year consistent with the provisions of
this part of ISO 14064

02/03/2022 Awareness Training on ISO 14064

GHG Information Management System
Required Procedures by ISO 14064
• Management procedure shall include

• GHG information management procedure (6.1)

• To ensure conformance with ISO14064, intended use and accuracy and
completeness of GHG inventory
• Identify and address errors and omissions
• Document and archive relevant GHG inventory records
• Document retention and record keeping procedure (6.2)
• To support the design, development and maintenance of the GHG inventory
to enable verification
10 years for EUETS operators and verifiers
Suggest to following accounting retention time
• Recalculation of GHG inventory procedure (5.3.2)
• To account for changes to operational boundaries, organisational boundaries
and quantification methodologies
02/03/2022 Awareness Training on ISO 14064
GHG Information Management System –
Required Procedures by ISO 14064
• GHG information management procedures should consider (6.1.2)
• Responsibility of GHG inventory
• Appropriate training of GHG inventory team
• Organisational boundaries and operational boundaries
• Appropriate application of quantification methodologies
• If applicable, calibration of measurement equipment
• Data collection system
• Regular accuracy check
• Internal audit
• Opportunities to improve information management process

Reviewing the GHG information management procedures is an important part of

the verification activity

02/03/2022 Awareness Training on ISO 14064

GHG Information Management
System

Suggest to check following GHG information

Organisational chart and personnel responsibility

Automatic computer collection system
Operation daily log (flow reading, weight reading)
Procurement invoice
Daily, monthly, and annual financial reports
Information flow (who process activity data and emission factors and retain in
where)
Origins of emission factors
Internal audit
Quality control procedure

02/03/2022 Awareness Training on ISO 14064

GHG Information Management System
Raw Data GHG Report
Information Collecting INVENTORY

Responsible Source List

Persons
Activity Data
Aggregation

Preservation Emissions
Factors
EVIDENCE
Invoice
Daily Log
GWP
Flow meter
Calculations
System Boundary
02/03/2022 Awareness Training on ISO 14064
Example of GHG Information Management System – Process
Flow Diagram
Flow Diagram Executive Procedure Documents and Tables
GHG inventory
1. Establish committee •GHG inventory management procedure
implement meeting 2. High level managers sign the declaration •GHG inventory and voluntary reduction
3. Illustrate GHG inventory procedure statement

4. Overview of GHG develop

Education training 5. Specification and standard of GHG management system
6. GHG inventory technical index
•GHG organisational boundary table
Establish organisational 7. Discuss organisational and operational boundaries
boundary, operational
boundary, and base-year
8. Establish base-year

9. Identify emission sources •GHG emission source table

Identification of GHG 10. Collect activity data •GHG activity data table
emission source and
emission calculation
11. Analysis activity factors •GHG emissions factors table
12. Calculate emission •GHG emission calculation table
13. Consolidate emissions of all units and make inventory •Annual GHG emission inventory
Create annual inventory
and inventory report 14. Make inventory report •GHG inventory report
15. Confirm and execute internal verification procedure •GHG inventory and verification
procedure
Internal inventory,
calibration, and external 16. Continue to execute verification by using inventory •GHG verification certification
verification

Adjust and improve

system continuously

02/03/2022 Awareness Training on ISO 14064

Purpose of GHG Report (7.1)
• The organisation should prepare a GHG report to facilitate GHG inventory verification,
participation in a GHG programme, or to inform external or internal users

• If the organisation makes a public GHG assertion claiming conformance to ISO 14064-1,
the organisation shall make available to the public a GHG report prepared in
accordance with ISO 14064-1 OR an independent third-party verification statement
related to the GHG assertion

The organisation can present to the public a GHG report without a third-party
verification statement

02/03/2022 Awareness Training on ISO 14064

Planning the GHG Report (7.2)

 The organisation should consider and document the following in planning its GHG
report:

 Purpose and objectives of the report (organisation’s GHG policies, strategies or

programmes, and applicable GHG programmes
 Intended use and intended users of the report
 Overall and specific responsibilities for preparing and producing the report
 Frequency of the report
 Period for which the report is valid
 Report format
 Data and information to be included in the report
 Policy on availability and methods of dissemination of the report

02/03/2022 Awareness Training on ISO 14064

GHG Report Content (7.3)
• The organisation’s GHG report shall describe • The organisation should consider
the organisation’s GHG inventory and shall including in the GHG report (7.3.2)
include the following (7.3.1):
• Programme requirements
• Description of the reporting organisation • Directed action or project reduction
(7.3.1 a-d)
• Uncertainty assessment
• Description of quantification (7.3.1 e-i)
• Other indirect GHG emissions if
• Selection and change of base-year (7.3.1 quantified
j,k)
• Emission intensity ratio
• Selection and change of quantification
• GHG information management and
methodology (7.3.1 l-m)
monitoring procedures
• Factors and data quality (n,o)
• Statement (7.3.1 p,q)

02/03/2022 Awareness Training on ISO 14064

THANK YOU FOR YOUR ATTENDANCE!