CLIMATE CHANGE

«DEMAIN La neutralité carbone» special issue based upon the data of the ZEN2050 study

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Demain La neutralité carbone

Special issue based upon the data of the ZEN2050 study

A collaboration with the magazine We Demain, this attached file of the September issue, shows what is currently the meaning of neutral-carbon for each of us and interviews several persons, civilians, politicians and company leaders in regard of the study’s conclusions:

  • Fred Vargas, author ;
  • Ronan Dantec, senator EELV de Loire-Atlantique ;
  • Jean-Dominique Senard, Renault Chairman;
  • Jean-Laurent Bonnafé, CEO of BNP Paribas and Chairman of EpE.

The approach : commissioned by a group of companies and with their input, EpE led the ZEN 2050 study to explore the feasibility of carbon neutrality in France by 2050, which means an unprecedented reduction of our greenhouse gas emissions (GHG) and the balance of residual emissions by absorption through carbon sinks (forests, soil, industrial process). This study has been monitored with the support of a group of experts, academic experts, business and civil society stakeholders. The results of this study are available on EpE website, here.

ZEN 2050 – Imagining and building a carbon-neutral France – July 2019

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ZEN 2050 – Imagining and building a carbon-neutral France

Commissioned by a group of companies from all sectors, the ZEN 2050 study explores the feasibility of carbon neutrality in France by 2050, in terms of the balance between emissions in metropolitan France and absorption through carbon sinks.

It identifies a number of conditions for a successful transition, and concludes with proposals for short-term actions that ensure the transformation remains economically and socially viable.

What approach? The methodology of the study, after reviewing existing studies, consisted in the convergence of two parallel projects:

  • A definition of carbon neutrality by 2050: what role would carbon sinks play? How would emission reductions required for neutrality be shared between economic sectors?
  • A sociological review of lifestyle changes conceivable by 2050, consistent with and respectful of France’s diversity.

Upon completion of these two projects, the study focused on transformation pathways towards this goal, and on the consequences for employment and investment in the sectors most directly affected.

The next stage consisted in identifying and describing in detail some of the conditions necessary for the success of these pathways.

The last stage of the study consisted in drawing up 14 recommandations for all actors on the short-term actions to be taken to ensure that 2050 neutrality compliant pathways remain within reach.

Avoided emissions – March 2018

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Avoided emissions
Companies assess their climate solutions

Transition, companies and avoided emissions
Companies are increasingly taking climate issues into account in their strategies. Beyond a reduction of their own greenhouse gas emissions, they are positively contributing to energy transition by offering low-carbon solutions, i.e. products, services, projects or investments that enable their customers to reduce their own greenhouse gas emissions.
Assessment of companies’ direct and indirect emissions has developed significantly in recent years. It enables a company to reduce them, and its stakeholders to better understand current status and reduction strategies.
However, these emission balances do not reflect the potential value of the solutions provided by the company. Calculating and communicating the emissions avoided by a solution enables the company to document its contribution to emission reduction.

Why assess avoided emissions?
The avoided emissions first enable a company to position itself as an organisation that contributes positively to the fight against climate change. The company thus produces climate change reports that go beyond its impacts and extend it to its influence on other stakeholders, and especially its customers.
This information then allows investors, shareholders and insurers to better understand how the company addresses the climate change issues. They are paying an increasing amount of attention to this topic and expect economic actors to progressively build plans towards a low-carbon future.
For customers, knowing the emissions avoided by their decisions makes it possible to integrate climate change into their purchasing criteria and their investment decisions.
They are a useful tool for comparing different offerings, provided that the avoided emissions are calculated using similar methods for each.
At country level, avoided emissions can be useful for assessing the contribution of different sectors towards the 2°C target, and for identifying industrial sectors to be developed or created.

Moving towards increased rigour, consistency and transparency
However, assessing and communicating about avoided emissions can be somewhat risky. Without a robust and shared methodology, the results put forward by companies could seem inaccurate and difficult to compare, if not too optimistic.
Therefore, EpE enterprises have sought to develop clear and common guidelines so that they can estimate and communicate, whenever necessary, the emissions avoided by their solutions.
This document aims to provide increased rigour, consistency and transparency on this subject. Firstly, it defines “avoided emissions” as clearly as possible. It then provides recommendations on how to calculate and communicate about them. These recommendations are collectively built by the EpE member companies, based on joint work and good practice exchanges. (EpE – “Enterprises for the Environment”).
These recommendations cover both assessment and communication of avoided emissions. This work is just a start and, the methods will be refined over time based on experience as well as on the reactions of financial markets and customers.

Internal carbon pricing – November 2016

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Internal carbon pricing,
a growing corporate practice

Towards a society with “zero net emission”
In the Paris Agreement, signed in December 2015, the international community set itself the ambitious goal of achieving zero net emission before the end of the century, in order to comply with the average global warming cap of 2°C or less, if possible. The transition towards this low-carbon world means rapidly reinventing development in every field, including energy, transport, housing, production, farming, finance and consumption.
Most actors agree that assigning a price to greenhouse gas emissions has an influence on their decisions and is an effective means of encouraging economic decision-makers to invest in clean energy, low-carbon technologies and even in different products and services that meet the same requirements. Government authorities in several countries have already taken decisions along these lines and,
in 2016, 13% of global emissions were covered by a regulatory pricing mechanism. This figure is likely to increase.

What is internal carbon pricing?
Companies are conscious of the risks relating to climate change and the need to transition to a low-carbon economy. They are also aware of the effectiveness of carbon pricing mechanisms and the important role that they have to play in decarbonisation. As a result, they pay close attention to this trend and are even making an active contribution to it, which is reflected in the development of voluntary pricing tools.
An internal carbon price is a value that companies voluntarily set for themselves, in order to internalise the economic cost of their greenhouse gas emissions. It can be used both as risk management tool and as part of a company’s decarbonisation strategy. An internal carbon price can help companies enhance their global strategies to become more resilient to regulatory climate policies and more favourable to emission reductions.
Internal carbon pricing primarily takes two forms:
• A shadow price: which represents a carbon value (determined by the company) that is incorporated into investment decisions and applied to the greenhouse gas emissions generated by projects;
• An internal carbon tax: a levy that companies voluntarily apply to their operations and that increases operating costs depending on the resulting greenhouse gas emissions; the company then uses the proceeds of this tax as it sees fit.

What are the benefits for the company?
Introducing an internal carbon pricing system can offer several benefits to companies by enabling them to:
• Effectively reach established emission reduction targets;
• Protect against risks relating to compliance with future carbon pricing systems imposed by government, or future decarbonisation policies more generally;
• Prepare themselves for future climate policies, which could lead to competitive advantage in cases where these policies influence operating conditions (costs, changes in energy supplies or technical systems, etc.);
• Direct investments to low-carbon technologies more effectively;
• Drive R&D and identify new markets.

How to adopt this approach
Many companies, including those that are members of Entreprises pour l’Environnement, have embarked on this approach in order to effectively reduce their emissions, show their commitment to a low-carbon economy and protect themselves against the risks posed by this transition. Based on their experience in this area, this publication proposes a methodological approach to implementing an internal carbon

pricing programme.

Business strategies for climate – November 2015

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Business strategies for climate

Growth and decarbonisation
Studies published in 2014, whether by IPCC(1) scientists or New Climate Economy economists, showed that it is till possible to combat climate change without having to give up on economic growth and human development. This applies both to emerging countries which do not want to give up on their promised growth and to developed countries that fear having to surrender their lifestyles.
Positioning ourselves on a greenhouse gas emission trajectory enabling us to limit global warming to 2°C by the end of this century nonetheless requires a far-reaching and immediate response coordinated by all economic and political stakeholders.

Solutions exist
Companies know that they have a major role to play in dealing with the climate challenge. They are ready to change direction, as the United Nations Secretary-General Ban Ki-moon urged them to do in September 2014. Companies of all sizes engaged in this process innovate and develop technological, organisational and financial solutions to reduce greenhouse gas emissions and adapt to the consequences of climate change. They are adjusting their strategies and economic models in response to these new challenges. It is these solutions that are presented in this publication “Business strategies for climate”.

The solutions are everywhere
All sectors of the economy are concerned; companies in all sectors can take a forward-looking approach to the changes caused by climate change and mobilise their resources to provide effective responses in line with the issues at stake.

Transport
Global economic growth is resulting in a huge increase in the demand for mobility and transport. Companies are working on ways to improve vehicles, develop engines that are less fossil-fuel dependent, and on finding new ways for people to move around and to transport goods. The challenge is considerable: it will involve working with the growing need for transport while at the same time massively reducing the sector’s greenhouse gas emissions.

Buildings
Cities are home to an ever-increasing number of people wanting to enjoy an ever-higher level of comfort, which leads to a notable increase in the building sector’s energy consumption and GHG(2) emissions. The required changes are many, both for the existing building stock which requires major renovation and for new buildings which are already incorporating stringent energy performance standards.

Energy
Energy systems are at the heart of the economic development of regions and countries. But the choice of the world’s energy mix has a significant effect on the future of the planet climate. New sources of energy are appearing or becoming profitable, new strategies are contributing to the sector’s transition to more efficient production modes that emit less greenhouse gas.

Land use
Land use is coming under increasing pressure as it must meet the needs of the world’s population for food, energy and housing. But land use outside built-up areas is becoming increasingly rationalised: forestry, biomass, changing food supply and less carbon-emitting uses of farming land are all solutions that contribute to combating climate change.

Finance
The emissions by financial stakeholders are very low. But as the funders of the world’s economy, they have a central role to play in the transition towards a low-carbon economy. Factoring climate change increasingly into investment decisions and the risks it places on assets are beginning to inform the strategies adopted by the sector’s companies.

Companies’ strategies for climate : Mobility – November 2014

Mobility - November 2014

” Companies’ strategies for climate: Mobility”,
a guide on decarbonated mobility for companies and individuals

Transportation, development and greenhouse gas

The global transport development has accompanied and still accompanies the growth of world economies and allows the development of territories. However, transport weighs heavily in global greenhouse gas emissions, with 14% of annual global emissions. The transport sector is mobilizing to find solutions that enable social and economic development, while fighting against climate change.

Numerous companies, particularly in Entreprises pour l’Environnement (EpE), worked in the last decade on the solutions to reduce GHG emissions from transport. These solutions include passengers as well as commodities. These companies believe that mobility is both a lever for reducing GHG emissions and for social and economic development. That is why the EpE members improve existing vehicles each day, while inventing new ways for the mobility of goods and people.

A guide to share experience of EpE members

The guide ” Companies’ strategies for climate: Mobility” comes from the work of the EpE working group “Mobility in a sustainable city”, conducted between 2012 and 2014. This group includes representatives of EpE members from all sectors of mobility: carriers, manufacturers and shippers; air, rail or road; vehicles, infrastructure or energy. To foster a constructive debate on the subject, external experts, scientific and associations, public authorities and consultants were also invited to intervene and engage with EpE members. These exchanges have provided the basis for this book.

A word from Pierre-André de Chalendar, Chairman of EpE and Chairman and CEO of Saint-Gobain

This publication is intended for companies wishing to better integrate climate change issues in the mobility of their customers, employees and goods. Moreover, it is for all those who wish to discover the solutions to reduce GHG emissions in the transport sector, proposed by EpE member companies.

How can we imagine meeting IPCC1 recommended objectives without reducing emissions from transport? How can we imagine reducing these emissions without giving up on our development and mobility that has become an essential need for humanity to make progress? EpE member companies have understood these stakes. They are working in all sectors to reduce these emissions, and developing and deploying transport solutions is now at the very heart of their strategies. These companies believe that mobility is both a lever to reduce greenhouse gas emissions and a lever for social and economic development of the territories.

Protocol for the quantification of greenhouse gases emissions from waste management activities – Version 5 – October 2013

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The Waste Sector GHG Protocol is intended to provide guidelines for calculating and reporting greenhouse gas (GHG) emissions associated with a waste management service, over a specific time period (usually one year) and based on simple operational data.

The Protocol itself has evolved with time, going through 4 version updates. The different versions correspond to evolutions initiated by the original Entreprises pour l’Environnement Working Group (Séché Environnement, Suez Environnement and Veolia Environnement) but also to the suggestions and feedback provided by several waste associations that have reviewed and commented on the Protocol. As a result, several worldwide associations have validated and used the Protocol for their own greenhouse gas inventories.

The version 5 of the Waste Sector GHG Protocol has received the “Built on the GHG Protocol” label. With such label, the Waste Sector Protocol reinforces its desire to be the reference tool for the waste sector by ensuring its users of a total and transparent coherence and conformity with the GHG Protocol Corporate Standard’s requirements. The Protocol is also available on the following webpage: http://www.ghgprotocol.org/Tools-Built-on-GHG-Protocol.

The Waste Sector GHG Protocol aims at :

  • Providing a consistent and transparent approach to quantify, report and verify GHG direct (scope 1), indirect (scope 2) and avoided emissions of waste management actors;
  • Establishing best practice across the waste sector for the implementation of coherent and homogeneous GHG emissions inventories;
  • Explaining waste sector’s particularities in terms of GHG emissions (diffuse emission from landfills, GHG avoided emissions, carbon sequestration);
  • Helping companies to take proper commitments and stakeholders to understand and verify those commitments.

The Protocol consists of a manual (in pdf format) and a calculation tool (in excel format) :

  • The former describes waste management activities and their different emissions source types. It guides the user through the different steps of the establishment a relevant, complete, consistent, transparent and accurate GHG inventory and states some rules to follow.
  • The calculation tool is divided into several sheets:
    – One for the establishment of the source type list i.e. the operational perimeter,
    – One for each waste management activity and its associated emissions source types, where calculation can be performed,
    – Different summary tables,
    – Sheets which give indicative emissions factors which can be used for direct (scope 1), indirect (scope 2) and avoided emissions calculations.

Two additional documents are joined to the Protocol :

  • A “Frequently Asked Questions” document;
  • A “Follow-up of modifications” document.

The quantification of GHG emissions from waste management activities is a complex exercise. This Protocol is a living document which is going to evolve together with the improvement of calculation and measurement techniques.

Attention: This Protocol is a tool for quantifying and reporting a greenhouse gas inventory from waste activities over a given timeframe, typically a year. In this regard, the landfill methane emissions reported are only those estimated to be emitted in the given reporting year. The reported value does not include the future emissions resulting from the degradation of waste landfilled in and prior to the reporting year. Therefore, the reported landfill methane values based on this Protocol should not be used in the context of a comparison of greenhouse gas footprint of various waste technologies.

Corporate actions for the climate – Greenhouse gas reduction practices at EpE member companies – October 2013

Corporate actions climate

Corporate awareness of the reality of climate change and the impact of human activity on global warming goes back some twenty years. It was at this time that EpE members decided to take voluntary action towards lowering greenhouse gas emissions.

EpE member companies started out by measuring their emissions (see EpE publication entitled “Measuring and Controlling Greenhouse Gas Emissions”), then worked to identify initiatives easiest to implement and those that would have the best reduction potential.

This booklet is prepared to contribute to other businesses improving their knowledge and understanding of the best practices identified and implemented by EpE members, in order to speed up the reduction of global emissions, without hampering their competitiveness. The practices showcased here have intentionally been detailed so that they can be easier to adopt.

WBCSD – Carbon pricing – The role of a carbon price as a climate change policy instrument – 2011

Carbon pricing

This issue brief, Carbon Pricing: The Role of a Carbon Price as a Climate Change Policy Instrument, produced by WBCSD explains the business case and the economic rationale for establishing a price on carbon emissions. Based on the economical theory, the price of goods and services needs to reflect their full cost and benefits – economic, social and environmental.  In the case of a carbon price, this is a value that reflects a negative externality, the impact of CO2 emissions from the product or an activity on the environment. This price can be direct or indirect, and applied in various ways. This issue brief defines what is a carbon price, what it can deliver, its economics and how it can be implemented in the economy.

Scenarios for transition towards a low-carbon world in 2050 : What’s at stake for heavy industries ?” : Results and final report – December 2008

EpE-Iddri Scenarios

EpE – IDDRI study “Launched in 2004, the study explores how major industrial sectors will be impacted by a carbon constraint stabilizing atmospheric CO2 concentration at 450 ppm. By means of an innovative hybrid modelling platform and ongoing dialogue between researchers and industrials, the study produces conclusions concerning both general climate policy as well as the economic response of industrial sectors— specifically of the steel, aluminium, cement, and sheet glass sectors, as well as of the energy sector.

This study was carried out within the framework of the Fondation pour le Développement durable et les relations internationales (Fonddri / Foundation for sustainable development and international relations). This study received the financial support of ArcelorMittal, Caisse des Dépôts, EdF, GdF-Suez, Lafarge, Saint-Gobain, SNCF, Total, Veolia Environnement, and EpE. The steering committee of this study brought together EpE, Iddri, ArcelorMittal, Caisse des Dépôts, EdF, GdF-Suez, Lafarge, Saint- Gobain, SNCF, Total and Veolia Environnement. It was led by Patrick Nollet and Richard Baron.