Building trust in the low carbon economy
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DNV KEMA Energy & Sustainability Global Response A carbon-constrained world is a new reality for organisations and companies. Emissions regulations are changing and stakeholders are increasingly pressuring management on environmental performance. Meanwhile, opportunities for competitive differentiation are emerging, energy and other input costs are rising, new risks from climate change are increasing and carbon markets are evolving.
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Building trust in the low carbon economy
Businesses recognise the climate change issue as a serious societal problem. To take their part in the solution, they need to act in a responsible and responsive manner which implies: ■ being seen as doing what they reasonably can to combat climate change, ■ being innovative as their business models will be challenged, ■ anticipating the regulatory risks, directly or indirectly, ■ responding to owner and stakeholder pressures.
DNV is uniquely positioned to help companies and organisations understand and manage these risks and pressures through our climate change expertise, technological know-how and independence. Our customers in the carbon markets recognise that both the business and the risks associated with climate change are international. We have a strong global presence providing local and global capabilities to deal with risk, transparency and trust issues where they may occur. Carbon strategy and policy services
Our carbon strategy and policy services give companies a competitive advantage by providing economically and environmentally sound solutions to evolving climate change policy, both in GHG regulated and non-regulated sectors.
DNV Global response Carbon strategy and policy services
Energy and carbon management
Carbon Market Advisory
Carbon credit validation and verification
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Carbon strategy and policy services For companies in both GHG (greenhouse gas) regulated and non-regulated sectors, carbon strategy and policy services include strategic risk assessment, risk management, positioning for competitive advantage and climate-friendly consumer product development. We bring global experience and expertise to our work with private sector, public sector, and non-profit customers.
Purpose
Climate change policy will create winners and losers. By being well positioned, companies can significantly increase their odds of being on the winning side of the table. We work with our customers to determine the services most appropriate for them. Although we do offer a standardised suite of products and services, including entry-level products and sophisticated decision support tools, we specialise in designing customised solutions for various regulatory, voluntary and branding needs. Benefits
We work with you to investigate climate change from both risk management and business opportunity perspectives. We provide decision support services that help assess corporate risks to establish the basis for better internal decision-making. This includes the development of forward price curves and analysis of project and general business opportunities. We help you develop a mitigation strategy based on
your company’s own GHG goals and objectives by: ■ Assessing internal emissions reductions options ■ Implementing sophisticated positioning strategies that allow rapid market entry in the future and enhanced competitive advantage ■ Identifying external reduction, offset and portfolio opportunities and strategies ■ Preparing strategy papers on climate policy and market developments and workshops and competence building ■ Staffing internal corporate task forces relating to climate change policy We also help develop strategies for international organisations, governments and private sector companies. This includes establishing and implementing regulatory frameworks, procedures and mechanisms.
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Features
Our services are supported by a variety of strategy and decision support tools. These help companies improve their climate change decision making. Our specialised staff, who have worked on climate change risk and opportunity management for more than a decade, can provide the following to both corporate customers and public organisations: Corporate services
■ Corporate climate risk and opportunity assessment ■ Getting companies positioned for competitive advantage ■ Climate change executive briefings ■ Developing carbon offset strategies ■ Developing climate neutral product strategies ■ Strategic policy advisory and capacity building ■ Emissions trading system design ■ Government capacity building ■ Project based emissions trading ■ Climate change public policy initiatives ■ Sustainable community development
■ Greenhouse gas benchmarking & mitigation strategies ■ Corporate sustainability plans ■ National Appropriate Mitigation Actions (NAMA) Our Experience
In 2009, our climate change consultancy team was strengthened with several specialists, some previously related to TC+ES, a leader in the field. This brings unparalleled global experience and expertise to DNV’s work with private, public and non-profit sector customers. Our team has thus accumulated a long list of “firsts” in the climate change field, such as writing the first carbon offset contracts, assembling the first carbon offset portfolio, creating the first GHG market software, winning the first power-plant siting case involving CO2 emissions, designing the first coalmine methane carbon offset project and representing the first climate neutral company.
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Energy and carbon management
Energy use is the single largest source of greenhouse gas (GHG) emissions, making energy management crucial for reversing global warming. Renewables and carbon capture and storage are suitable solutions for the medium and long term. In the short term, however, energy efficiency improvements are critical. DNV has developed and tested effective services to support and drive these changes. Purpose
Successful reduction of climate change requires dramatic changes in the way energy is produced, distributed and used. Sound energy and carbon management is crucial in all branches of society to establish the necessary framework for the timely and effective implementation of these vital changes throughout the energy chain. Benefits
Proper energy management provides a solid framework for realising the necessary changes to effectively improve energy performance of an organisation. In a cycle of continuous improvement,
the economic, environmental and social feasibility of technical, organisational and behavioural changes is systematically assessed in order to identify and implement the most effective measures. This approach is a proved and tested method to increase competitiveness and profitability by reducing operational cost. At the same time business risk is limited by reducing exposure to the volatility of energy prices and by complying with increasingly stringent climate regulations. An enhanced energy performance will improve the sustainability of your organisation, an aspect which is under increased scrutiny by stakeholders.
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Features
The integrated carbon and energy (ICE) Management service has been developed to improve the energy efficiency and reduce the carbon emissions of an organisation. It is based on the proven ‘plando-check-act’ – approach and relies on optimally combining technical, organisational and behavioural measures. For this purpose, a technical and a nontechnical track run horizontally through all four service phases. Energy savings of 5-15% or more have been achieved by using this approach. During the first phase, the organisation’s technical, organisational and behavioural baseline is established. The energy and carbon footprint is determined and the energy management performance is assessed using a proprietary rating protocol. In accordance with this baseline, potential technical, organisational and behavioural improvements are identified and prioritised in the second phase, using a feasibility analysis that takes financial, environmental and social aspects into account. Depending on the customer’s needs, assistance for the actual implementation of the selected improvements can also be included.
Once the selected improvements have been implemented, a new technical, organisational and behavioural assessment is conducted in the third phase to verify the effectiveness of the changes. Customised training and guidance constitutes the fourth phase of the service. This is aimed at ensuring a cycle of continuous improvement in the organisation so that the energy performance will continue to be enhanced after completion of the service. Our Experience
To deliver this service, DNV combines an unequalled track record in the carbon market with vast experience in terms of technical consulting, management system assessment and certification, and training.
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Carbon market advisory Carbon markets have the potential to dramatically reduce compliance costs in future carbon regimes – what carbon will cost is the trillion-dollar question facing governments and corporations alike. Choices regarding the “when and how” of carbon market entry will fundamentally affect the competitiveness of both regulated GHG emitters and companies offering GHG mitigation solutions. DNV’s climate change team can help companies understand and plan for carbon markets through a variety of products and services.
Purpose
Carbon markets are based on climate change policy and remain fundamentally uncertain. The challenge facing companies is how to make decisions in the short to medium terms that stand the best chance of proving robust in the face of uncertainty about the future. Benefits
Many decision makers see the future of climate policy as pivotal to influencing their future competitiveness, whether at company or sector level. With the right information and tools for understanding and anticipating carbon markets, government and corporate decision-makers can take much wiser decisions across a diverse range of business topics: ■ Assessing and quantifying future carbon risk ■ Making material capital investment decisions ■ Making strategic and R&D decisions ■ Determining corporate policy and legislative positions ■ Assessing the advantages of early emissions reductions ■ Protecting long-term corporate competitiveness Features
DNV KEMA has developed a powerful suite of tools and associated services that provide customers with the ability to make more robust business decisions in the face of policy and market uncertainties. Waiting for these uncertainties to be resolved simply is not a viable option for companies facing material impacts from climate change policy, and from carbon markets. Examples of specific areas where DNV can help include: Market forecasting
DNV KEMA experts have been helping companies make better carbon market decisions since carbon markets first appeared more than twenty years ago. This includes the development of decision support tools that help companies understand both global
and region-specific carbon markets, and processes by which companies can integrate carbon price forecasts into their decision making that appropriately reflect their view of the world, as well as their risk profile and sensitivity to different risks. Project, portfolio, and sectoral support
DNV KEMA experts have been helping companies evaluate mitigation projects and portfolios for more than 20 years. At the project level we have developed sophisticated Monte Carlo based project assessment tools for clients’ use in evaluating project opportunities. At the portfolio level we have developed decisionsupport tools that allow a comprehensive GHG project portfolio to be evaluated against alternative risks, and expressed through balance sheets and profit and loss statements. At the sectoral level, our global market assessments (GMAs) provide an in-depth look at the specific offset sectors, providing a roadmap for entering the carbon market through these sectors. Project development support
DNV KEMA staff has developed project methodologies for a variety of regulatory and voluntary carbon standards. Through our buyers and sellers reports, we offer companies a cost-effective due diligence assessment of specific projects and technologies and show how they are likely to fare in alternative carbon markets. And through our global market assessments, we can actually identify specific project opportunities. Our experience
Our experts have more than 20 years of experience in helping companies understand and participate in carbon markets. We have worked with companies of all sizes, and from all parts of the world, in assessing carbon risks and opportunities, and in the development of corporate strategies that effectively manage these risks and opportunities in both voluntary and regulatory markets.
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Carbon credit validation and verification Carbon credit validation and verification is a third party service related to the compliance market, regulating emissions allowances and offsets according to the Kyoto Protocol’s flexible mechanisms, the European Directive on Emissions Trading (EU ETS) or voluntary emission reductions.
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Emissions trading
The Clean Development Mechanism (CDM)
Emissions trading is a Kyoto Protocol mechanism established to cost-effectively reduce emissions and meet Kyoto Protocol commitments.
The Clean Development Mechanism (CDM) allows you to reduce greenhouse gas emissions in a cost efficient manner. Your active contribution to sustainable development in a developing country is awarded with emission credits that can fulfil your own reduction commitments or be traded in the greenhouse gas market.
Joint implementation scheme
The joint implementation scheme encourages and rewards emission reduction initiatives between industrialised countries that have signed the Kyoto Protocol. The emission reduction credits earned will help you meet your reduction commitments. Established under the Kyoto Protocol, the Joint Implementation (JI) mechanism is an incentive to companies in industrialised countries to reduce emissions cost-effectively through cooperative efforts.
Voluntary emission reduction
Voluntary emission reduction actions allow you to take advantage of voluntary efforts to reduce greenhouse gas emissions by following certain regulations and standards.  
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