Reducing Greenhouse Gases on a Global Level

The ratification of the Kyoto Protocol and the commencement of the European Emissions Trading Scheme at the beginning of this year have resulted in a very different set of operating rules applying to companies located throughout the various countries of the world. This is also true for divisions of the same company operating in different countries.

Whereas most companies operating only in the U.S. have yet to be directly affected by limitations on their greenhouse gas (GHG) emissions, for many European companies, just the opposite is true. Emissions from major facilities face limits on emissions of GHGs much like those for conventional air pollutants.

The imposition of emission limitations on European facilities creates a range of uncertainties for those affected. While companies know the amount of emission reductions they need, figuring out the most cost-effective means to achieve these reductions is not an easy task. Companies may change their operations to reduce their emissions or they may acquire emission allowances from other companies that do not need them. They may also acquire approved emission reduction credits created under the Joint Implementation (JI) or Clean Development Mechanism (CDM) programs of the Kyoto Protocol.

Major capital changes that may reduce GHG emissions will often have lifetimes that extend far past the year 2012 when the Kyoto Protocol and the first phase of the European Emissions Trading Scheme expire. Specific requirements beyond these initial phases are currently unknown.

The market price of European Union (EU) emission allowances has been volatile, reaching over $30 per metric ton of CO2 equivalent in the summer of 2005. JI and CDM emission reduction credits can be acquired for one fifth of this amount. However, until these credits are actually created and approved, there is uncertainty as to whether they will be delivered and useable in the EU program.

To help make sense of these involved complexities, Battelle experts are currently assisting international companies with understanding both their GHG emissions and their options for reducing them. Battelle is also quantifying the emission reductions and cost effectiveness of various GHG emission reduction technologies.

Additionally, working with the petroleum industry, Battelle developed guidelines for reporting GHG emissions throughout oil and gas operations worldwide (see www. ipieca.org/downloads/climate_change/GHG_Reporting_ Guidelines.pdf) and is supporting individual companies in conducting corporate GHG emission inventories using the SANGEA™ Emissions Estimation Software co-developed by Battelle staff (see http://ghg.api.org).

To learn more about how Battelle assists industrial clients in understanding and reducing GHG emissions, contact Mr. Christopher Loreti at (781) 869-1419, loretic@battelle.org, or Dr. Bernhard Metzger at (781) 869-1409, metzgerb@battelle.org.