Risk Management for Climate Change in the World and China

With the global challenge of climate change, it becomes crucial to understand the factors that can guide carbon intensive companies to comply with environmental regulations through significant reductions in greenhouse gas (GHG) emissions. Using the natural-resource-based view, the argument in this paper is that focusing on sustainability-driven resources by companies is a way to meet environmental compliance and reduce GHG emissions while gaining differential competitive benefits. A specific analysis on Alberta case has discussed large GHG emitters’ environmental compliance mechanisms in the context of their sustainability resources. The aim is examining if large GHG emitters in Alberta related to corporations having sustainability resources are complying with the Specified Gas Emitters Regulation (SGER) reduction requirement through cleaner-production driven internal mechanisms. The paper examines the existence of the sustainability resources in the reporting companies related to large GHG emitters responsible for 86% of total GHG reported by facilities with emissions above the threshold of 100 kilotonnes of GHG per year under SGER in Alberta. Corporations are found not using their sustainability resource potential to achieve internal reductions in GHG emissions throughout their facilities. Thus, some recommendations are presented for Alberta case as well as for environmental regulations in other jurisdictions that can potentially help policy makers improve their climate change regulations and achieve their global targets and enable companies to gain competitive advantage while meeting GHG reduction compliance.

The aim of this study was to explore the association between travel mode choice and individual sociodemographic characteristics among urban city dwellers, as the selection of daily travel modes is influenced by several factors. The study collected 1,290 short daily trips data from 415 respondents living in Klang Valley using a random sampling technique. Logit regression models were utilized to identify the impact of sociodemographic traits on travel mode choices. Men, low education levels, students, and households without children and do not own private vehicles are more likely to choose active transportation. Besides, the study examines the potential for greenhouse gas (GHG) emission reduction. Based on Life Cycle Assessment (LCA), 142 kgCO2e or 108 kgCO2e/km of GHG were released by automobiles from the collected travel trip data. The result shows that active transport could potentially achieve 14.52% GHG emission reduction by stated preference and nearly 17% GHG emission reduction by criteria fulfillment. These findings could provide valuable information for developing practical planning policies aimed at reducing GHG emissions from the road transport sector.

The dairy Carbon Offset Scenario Tool (COST) was developed to explore the influence of various abatement strategies on greenhouse gas (GHG) emissions for Australian dairy farms. COST is a static spreadsheet-based tool that uses Australian GHG inventory methodologies, algorithms and emission factors to estimate carbon dioxide, methane and nitrous oxide emissions of a dairy farm system. One of the key differences between COST and other inventory-based dairy GHG emissions calculators is the ability to explore the effect of reducing total farm emissions on farm income, assuming the strategy was compliant with Kyoto rules for carbon offsets. COST provides ten abatement strategies across the four broad theme areas of diet manipulation, herd and breeding management, feedbase management and waste management. Each abatement strategy contains four sections; two sections for data entry (baseline farm data specific to the strategy explored and strategy-specific variables) and two sections for results (milk production results and GHG/economic-related results). Key sensitive variables for each strategy, identified from prior research, and prices for milk production and carbon offsets are adjusted through up/down buttons, which allows users to quickly explore the impact of these variables on farm emissions and profitability. For example, if the cost to implement an abatement strategy is doubled, what carbon offset income would be required to negate this additional cost? Results are presented as changes in carbon offset income, strategy implementation cost, additional milk production income and net farm income on a per annum and on a per GHG emissions intensity of milk production basis. COST currently contains a comprehensive range of strategies for GHG abatement, although some strategies are still in development. As new technologies or farm management practices leading to a reduction in GHG emission become available, these too will be incorporated into COST. To date, two dairy-specific abatement methodologies have been legislated as part of Australia’s commitment to reducing on-farm GHG emissions through it’s the carbon offset scheme, the Carbon Farming Initiative (CFI) and are incorporated into COST. These are the ‘Destruction of methane generated from dairy manure in covered anaerobic ponds’ and the ‘Methodology for reducing greenhouse gas emissions in milking cows through feeding dietary additives’. As an example, we explored the mitigation option Replace supplements with a source of dietary fats (reflecting the second above-mentioned CFI legislated abatement strategy) as feeding a diet higher in dietary fats has been shown to reduce enteric methane emissions per unit of feed intake. A 400 milking herd was fed a baseline diet of 2.6% dietary fat. By replacing grain with hominy meal, at a rate of 5.0 kg dry matter/ cow per day for 90 days during the 3 summer months, the summer diet fat concentration was increased to 6.4%. Enteric methane emissions were reduced by 40 tonnes of carbon dioxide equivalents (t CO 2 e) per annum for the farm. Waste methane and nitrous oxide emissions were also reduced by 0.5 and 1.6 t CO 2 e/annum, respectively. However, as reductions from these two sources of GHG emissions do not qualify for payment with this CFI methodology, their reduction could not be included as an offset income. At a carbon price of $20/ t CO 2 e, the reduction in enteric methane emissions was valued at $800/farm. The implementation cost of replacing grain with hominy was valued at $18,000/farm due to the hominy meal costing an additional $100/t dry matter compared to the grain. However, the additional milk production achieved due to the higher energy concentration of the diet resulted in an additional 70,200 litres and based on a summer milk price of $0.38/ litre, this equated to an additional income from milk valued at $26,676/farm. The overall result was a net increase in farm profit of $9,476/farm when paid on a reduction in total GHG emissions. COST can quickly allow users to ascertain the level of GHG emission reduction possible with various mitigation options and explore the sensitivity of key variables on GHG emissions and farm profitability.

Increasing concentrations of greenhouse gases (GHGs) are causing global climate change and decreasing the stability of the climate system. Long-term solutions to climate change will require reduction in GHG emissions as well as the removal of large quantities of GHGs from the atmosphere. Natural climate solutions (NCS), i.e., changes in land management, ecosystem restoration, and avoided conversion of habitats, have substantial potential to meet global and national greenhouse gas (GHG) reduction targets and contribute to the global drawdown of GHGs. However, the relative role of NCS to contribute to GHG reduction at subnational scales is not well known. We examined the potential for 12 NCS activities on natural and working lands in Oregon, USA to reduce GHG emissions in the context of the state's climate mitigation goals. We evaluated three alternative scenarios wherein NCS implementation increased across the applicable private or public land base, depending on the activity, and estimated the annual GHG reduction in carbon dioxide equivalents (CO2e) attributable to NCS from 2020 to 2050. We found that NCS within Oregon could contribute annual GHG emission reductions of 2.7 to 8.3 MMT CO2e by 2035 and 2.9 to 9.8 MMT CO2e by 2050. Changes in forest-based activities including deferred timber harvest, riparian reforestation, and replanting after wildfires contributed most to potential GHG reductions (76 to 94% of the overall annual reductions), followed by changes to agricultural management through no-till, cover crops, and nitrogen management (3 to 15% of overall annual reductions). GHG reduction benefits are relatively high per unit area for avoided conversion of forests (125-400 MT CO2e ha-1). However, the existing land use policy in Oregon limits the current geographic extent of active conversion of natural lands and thus, avoided conversions results in modest overall potential GHG reduction benefits (i.e., less than 5% of the overall annual reductions). Tidal wetland restoration, which has high per unit area carbon sequestration benefits (8.8 MT CO2e ha-1 yr-1), also has limited possible geographic extent resulting in low potential (< 1%) of state-level GHG reduction contributions. However, co-benefits such as improved habitat and water quality delivered by restoration NCS pathways are substantial. Ultimately, reducing GHG emissions and increasing carbon sequestration to combat climate change will require actions across multiple sectors. We demonstrate that the adoption of alternative land management practices on working lands and avoided conversion and restoration of native habitats can achieve meaningful state-level GHG reductions.

PurposeThe purpose of this paper is to examine significant steps taken by the Pennsylvania State University (Penn State) to account for both energy cost savings and greenhouse gas (GHG) emissions reduction goals through strategic investments in energy conservation measures (ECMs) in campus buildings. Through an analysis of multiple years of investment in facility upgrades across the university, the impacts of ECMs of various types are characterized by building type. The standards and criteria for ECMs investments are also evaluated with the goal to develop a predictive tool to support decision making pertaining to an annual investment in a portfolio of ECMs that will maintain a trajectory to achieve both financial return on investment as well as GHG reduction goals.Design/methodology/approachThis study is comprised of three main parts: analyzing the energy costs saving and GHG emissions reduction contribution of various building types in which ECMs were conducted, analyzing costs saving and GHG emissions reduction contribution of each ECM while considering the average annual investments made in them and estimating the impact of upgrading Penn State’s steam plants from firing a mixture of coal and natural gas to natural gas only on the GHG emissions.FindingsThese analyses help identify which types of buildings and ECMs would have larger savings and emissions reduction contributions. A calculator is also created to enable forecasting of costs saving and GHG emissions reduction of investment distribution strategy among ECMs. This study demonstrates that the calculator based on data from previous years will benefit decision makers in more wisely configuring the investment portfolio.Originality/valueThis paper fulfills an identical need to couple energy efficiency strategies coupled with the environmental impacts associated with different fossil fuel energy sources.

This paper discusses the opportunities that exist for reducing greenhouse gases (GHG) emissions by switching from coal to gas-fired units in electricity generation, ‘forced’ by the European Union Greenhouse Gas Emission Trading Scheme (EU ETS) price level of CO2. It attempts to find efficient GHG cost profiles leading to a reasonable GHG emission reduction. In a methodological demonstration case (an electricity generation system consisting of two coal and two gas-fired power plants), we demonstrate how a GHG emission cost can lead to a certain switch of power plants with an accompanying GHG emission reduction. This GHG emission cost is dependent on the load level. The switching point method is applied to an electricity generation system similar to the Belgian one. It is found that the greatest opportunities for GHG emission reductions are situated in the summer season. By switching only the coal-fired units with the combined cycle (CC) gas-fired units, a significant GHG emission reduction is possible at a modest cost. With the simulation tool E-Simulate, the effect of a GHG emission cost in the summer season is investigated. A potential GHG emission reduction of 9.5% in relation to the case where there is no cost linked to GHG emission is possible at a relative low cost. When implementing a GHG cost in winter season, a smaller GHG reduction occurs while costs are higher. Copyright © 2006 John Wiley & Sons, Ltd.

Renewable energy achievements in CO2 mitigation in Thailand's NDCs

Comparison of integration options for gasification-based biofuel production systems – Economic and greenhouse gas emission implications

Open image in new window This chapter shows how the Global Environment Facility (GEF) has utilized public funds to close the global energy efficiency gap. It provides an analysis of the cost-effectiveness of the 49 completed energy efficiency projects and compares levels of mobilized co-finance by sub-area; the length of project preparation period by sub-area, implementing Agency, and country; and the cost of GHG mitigation. A list of these 49 projects is presented in the appendix. On average, one dollar of GEF investment in energy efficiency was matched with approximately 8.2 dollars of co-finance. Heating projects generated the highest co-finance ratio. Appliances and equipment projects achieved the lowest unit abatement costs: US$0.24 per metric ton of direct greenhouse gas (GHG) emissions reductions (In this book, GHG emissions reductions refers to direct emissions reductions if they are not specifically indicated as “indirect emissions reductions”) with GEF resources, and US$0.96 per metric ton with total funds (GEF resources and co-finance). The unit abatement cost for all 49 projects, which collectively mitigated approximately 600 million metric tons of carbon dioxide (CO2) equivalent (MMTCO2e) emissions, was approximately US$0.53 per metric ton with GEF funds and US$4.87 per metric ton with total funds. Six of the 10 sub-areas had below-average preparation period lengths. The average time used for preparation was approximately 4 months less than that estimated in the project preparation guidelines, signifying efficient project preparation. Both tangible and intangible technological investments can significantly mitigate GHG emissions if the investments are appropriate. Tangible investments can lead to visible or measurable GHG emissions reductions, and intangible investments are essential to completing market transformations for energy efficient technologies. Tangible investments in the 49 analyzed projects realized not only hardware acquisition, but also the transfer of 49 technology patents, the training of more than 1.3 million people, and the creation of 12 energy efficiency standards and codes, 21 financial instruments, and 29 market-based mechanisms for energy efficiency development.

Previous studies have confirmed the agricultural stage as an important contributor to total tea life cycle greenhouse gas (GHG) emissions. We therefore focus on the growing and processing of black tea and evaluate the GHG reduction potential of possible agricultural management interventions for tea produced from Unilever’s tea estates and factories in Kenya. A baseline GHG footprint was calculated using data collected over four years. Potential interventions to reduce the GHG footprint per kg of black tea focused on key drivers (yield and fertiliser use) of the GHG footprint. These interventions and their effects on production are evidence-based but hypothetical and relate to possible changes in: (1) Harvesting practices; (2) Fertiliser application (timing) and (3) Organic production. Improvements in fertiliser application and harvesting practices could potentially deliver 16% and 9% reduction in GHG emissions, respectively. Under favourable conditions (sourcing fertiliser locally and no yield decline), changing to organic production could theoretically deliver 25% reduction in GHG emissions. However, under less favourable conditions (European sourced fertiliser and 30% yield decline), GHG emissions could increase by 41%. The availability of locally sourced organic fertiliser, sufficient to maintain nitrogen application rates, is seen as the biggest challenge in delivering sustainable organic tea cultivation.

Climate-adaptive crop distribution can feed food demand, improve water scarcity, and reduce greenhouse gas emissions

ABSTRACTThis paper investigates strategies that could achieve an 80% reduction in transportation emissions from current levels by 2050 in the City of Philadelphia. The baseline daily lifecycle emissions generated by road transportation in the Greater Philadelphia Region in 2012 were quantified using trip information from the 2012 Household Travel Survey (HTS). Emissions were projected to the year 2050 accounting for population growth and trends in vehicle technology for both the Greater Philadelphia Region and the City of Philadelphia. The impacts of vehicle technology and shifts in travel modes on greenhouse gas (GHG) emissions in 2050 were quantified using a scenario approach. The analysis of 12 different scenarios suggests that 80% reduction in emissions is technically feasible through a combination of active transportation, cleaner fuels for public transit vehicles, and a significant market penetration of battery-electric vehicles. The additional electricity demand associated with greater use of electric vehicles could amount to 10.8 TWh/year. The use of plug-in hybrid electric vehicles (PHEV) shows promising results due to high reductions in GHG emissions at a potentially manageable cost.

ABSTRACTThis paper examines the influence of firms’ reductions of greenhouse gas (GHG) emissions on firm value, measured by Tobin's q. If the stockholders/investors regard the reduction of GHG emissions as a form of intangible value, the reduction of GHG emissions will enhance firm value. To prove this relation more precisely, this paper analyzes not only the effect of the reduction of GHG emissions on firm value but also that of the market discipline imposed by the stockholders/investors in terms of the reduction of GHG emissions. Using data on 641 Japanese manufacturing firms in the period 2006–2008, the random effect instrumental variable estimate supports the view that firms with strong market discipline imposed by stockholders/investors are more likely to reduce GHG emissions and, consequently, firms that reduce more GHG emissions are more likely to enhance firm value. Copyright © 2011 John Wiley &amp; Sons, Ltd and ERP Environment.

China is a large agricultural country, where agricultural activities and rural life cause a large amount of greenhouse gas (GHG) emissions. In the process of crop growth, production, and processing, a large number of crop straws and agricultural wasted products are produced, which become one of the important sources of biomass resources. However, few detailed studies focused on the potential of China's agricultural biomass energy conversion and carbon emission reduction, and fewer studies proposed GHG emission reduction strategies from the perspective of making full use of China's agricultural waste resources. In this study, the quantity calculation index of agricultural biomass energy was given, and the GHG emission reduction potential calculation index of agricultural biomass energy was constructed, with which the amount of GHG emissions caused by agricultural waste use in China was measured and the potential of GHG emission reduction caused by agricultural waste use would be easily speculated. Based on the statistical data of China, the quantity and GHG emission reduction potential of agricultural biomass resources in China in the recent 10 years (2009∼2018) were clarified. According to the research, the amount of agricultural waste equivalent to standard coal in China from 2009 to 2018 reached 280,0711 million tons. If all these resources were used to replace coal, a total of 4,474,483 million tons of carbon dioxide emissions could be saved. Assuming that these wastes are anaerobic, carbonized, or fully burned as fuel, CH4 emissions could be reduced by up to 12.024 million tons and N2O emissions by up to 185,000 tons. It can be seen that the effective utilization of agricultural biomass resources can replace coal, reduce backwardness such as land burning, and then reduce CO2, CH4, N2O, and other greenhouse gas emissions, and promote the realization of carbon peak and carbon neutrality.

To reduce carbon intensity, an improved management method balancing the reduction in costs and greenhouse gas (GHG) emissions is required for Tianjin’s waste management system. Firstly, six objective functions, namely, cost minimization, GHG minimization, eco-efficiency minimization, cost maximization, GHG maximization and eco-efficiency maximization, are built and subjected to the same constraints with each objective function corresponding to one scenario. Secondly, GHG emissions and costs are derived from the waste flow of each scenario. Thirdly, the range of GHG emissions and costs of other potential scenarios are obtained and plotted through adjusting waste flow with infinitely possible step sizes according to the correlation among the above six scenarios. And the optimal scenario is determined based on this range. The results suggest the following conclusions. 1) The scenarios located on the border between scenario cost minimization and GHG minimization create an optimum curve, and scenario GHG minimization has the smallest eco-efficiency on the curve; 2) Simple pursuit of eco-efficiency minimization using fractional programming may be unreasonable; 3) Balancing GHG emissions from incineration and landfills benefits Tianjin’s waste management system as it reduces GHG emissions and costs.