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1 GREENHOUSE GAS EMISSIONS REPORTING Prepared for: CESPEDES By: Dennis Aigner, Principal Researcher EGADE Business School, ITESM M. Paloma Giottonini B., Research Asst. Luskin School of Public Affairs, UCLA Date: June 26, 2013

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Page 1: GREENHOUSE GAS EMISSIONS R - CESPEDES...3 INTRODUCTION This report has been prepared in order to provide a better understanding of the Greenhouse Gas (GHG) emissions reporting protocols

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GREENHOUSE GAS EMISSIONS REPORTING

Prepared for: CESPEDES

By: Dennis Aigner, Principal Researcher

EGADE Business School, ITESM

M. Paloma Giottonini B., Research Asst.

Luskin School of Public Affairs, UCLA

Date: June 26, 2013

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CONTENTS Introduction

Key Findings

Summary

Information by Country:

I. United States

a. Environmental Protection Agency. Greenhouse Gas Reporting Program (GHGRP)

b. California. California Greenhouse Gas Emissions Mandatory Reporting under AB32

c. Oregon. Greenhouse Gas Emissions Protocol

II. Canada

a. National Level

b. Quebec

c. British Columbia

d. Ontario

III. Other entities

a. Western Climate Initiative

IV. European Union

V. Costa Rica

Definitions

Works Cited

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INTRODUCTION

This report has been prepared in order to provide a better understanding of the Greenhouse Gas

(GHG) emissions reporting protocols in different states, regions and countries. The protocols were

selected on the basis of probable comparison with the conditions of Mexico, either because of

geographical and economic trade reasons (North American countries) or because of regional

comparable characteristics (Latin America). The case of the European Union was incorporated in

order to provide a successful example of a GHG reporting system that has already been tested and

is continuously evolving.

The report explores three main components of GHG reporting: Coverage, Thresholds, and Sectors.

a. Coverage is the estimated or targeted percentage of total national, state or regional

emissions that is reported under the protocol of analysis.

b. Threshold is the total quantity of emissions per year of all regulated substances that is

established as a baseline. Facilities that surpass this threshold are required to report under

established regulations. Thresholds are usually set in metric tons of carbon dioxide

equivalent (MTCO2e). In this report, we also explore the arguments for their selection.

c. Sectors are the types of entities under regulation, usually categorized as direct emitters,

suppliers and CO2 injectors (source categories)

The information comprised in this report was collected via Internet research, literature review and

telephone interviews.

Selection of thresholds is correlated with the coverage of emissions required by the regulating

agency. In this manner, agencies that look for higher coverage (say, more than 95% of total

emissions) will stipulate a lower aggregate threshold (10,000 or 2,500 MTCO2e). Those who claim

that smaller entities will be adversely affected by GHG reporting under a lower threshold usually

resist these proposals. This is one of the main reasons why agencies that select lower thresholds

usually receive pressure to provide strategies that support entities on the lower end of the emissions

spectrum. For example, California allows low emitters to file abbreviated reports, and Oregon

allocates funds to support reporting by smaller entities. As a counterpart, the justification from

agencies that chose a higher threshold (above 25,000 MTCO2e) is that most of the high-pollution

facilities under their jurisdiction are above this threshold, so even when it is high there is confidence

that coverage is at least 85% or more of estimated total emissions. In addition, a high threshold will

accommodate smaller facilities, which may not be prepared to measure and report their emissions

due to financial and technical reasons.

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In terms of sectors under regulation, the selection of entities that are required to submit a report

usually depends on the regional context. Some regions are more oriented toward industrial and

manufacturing activities while other are more oriented toward energy supply.

KEY FINDINGS

United States. While the US Federal threshold is 25,000 MTCO2e, some states like California and

Oregon have lowered their thresholds. In the case of California, the lower threshold takes into

account the increased burden on smaller facilities that may fall under this requirement. California

allows those facilities whose emissions are between 10,000 and 25,000 MTCO2e to file an

abbreviated report using simpler emission calculation methods. In addition, these facilities are not

subject to third-party verification, missing data substitution, or calibration and accuracy

requirements.

In the case of Oregon, its Department of Environmental Quality has also established a lower

threshold of 2,500 MTCO2e. They argue that this threshold will help them obtain a more accurate

and comprehensive understanding of the State’s overall emissions (coverage estimated at 99%). The

original proposal for Oregon’s GHG protocol was to have no threshold, that is, to have all sources of

emissions measure and report. This, however, represented a great burden for smaller firms, which

are usually the lowest emitters (their emissions are estimated to account for 1% of the total).

According to the Oregon Department of Environmental Quality, the advantages of such a low

threshold are the provision of a more comprehensive understanding of overall emissions, and the

idea that emitters who fall under 2,500 MTCO2e have an incentive to stay under the threshold to

avoid future regulation. The disadvantage is that, under the potential creation of a regional cap and

trade program, some emitters may not be credited for the “early actions” they have already

implemented to reduce emissions.

In the particular case of North America, there are other entities that seek to regulate emissions at

the regional level. Particularly in the case of the United States, the Western Climate Initiative (WCI;

Western States and some Canadian provinces), and the Regional Greenhouse Gas Initiative (ReGGIe,

Eastern states) have been avid at setting thresholds for GHG emissions, but their main focus is the

creation of regional cap-and-trade programs. ReGGIe for example only considers CO2 emissions

from power plants of member states. WCI has set their reporting thresholds at 10,000 metric tons.

Canada. GHG inventories and reporting systems in Canada are very similar to those in the United

States. Canada has a national inventory, which presents data on national greenhouse gas emissions,

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and is submitted to the United Nations in accordance with the Framework Convention on Climate

Change (UNFCCC). As regards their reporting system, similar to the US, Canada has a two-tier system

of reporting GHG emissions. The Greenhouse Gas Reporting Program (GHGRP) at the national level

collects data from the largest industrial GHG emitters. The threshold is established at 50,000

MTCO2e. The second tier operates at the provincial level, where some regulations differ greatly from

the federal threshold. For example, the provinces of Quebec and British Columbia have a threshold

of 10,000 MTCO2e, while Ontario has a threshold of 25,000 MTCO2e. Additionally, there are regional

initiatives (some shared with US states) as well as local initiatives, which have established their own

thresholds.

European Union. The European Union, as a party to the UNFCCC, reports annually on greenhouse

gas (GHG) inventories for the current year and the two prior years for the area covered by its

member states. The EU inventory helps to monitor anthropogenic GHG emissions in the member

states, implement UNFCCC and Kyoto Protocol obligations and evaluate progress towards meeting

these commitments.

Latin America. As a relevant example, we also included information for the Costa Rican GHG

emissions inventory, which has an estimated coverage of 95% of the country’s emissions. The

reporting of GHG emissions in Costa Rica follows the World Resources Institute (WRI) Protocol.

Costa Rica has established a goal of becoming carbon-neutral by 2021. This case is relevant because

Costa Rica’s Carbon-neutral program creates a new market incentive through differentiation, via the

certification C-neutral.

Regarding the selection of source categories (sectors), and the consequent organization of the

information, most entities follow the categorization established by the Intergovernmental Panel on

Climate Change (IPCC) common reporting framework used by the UNFCCC. The main sectors, which

will be explained in detail below, include: Fuel Combustion, Energy, Industrial Processes, Solvent

and Other Product Use, Agriculture, Land-Use, Land-Use Change and Forestry, and Waste. Each

entity has the ability to choose the categories and subcategories that best fits their context.

Fuel Combustion. Emissions of greenhouse gases from all fuel combustion activities. CO2 emissions

from combustion of biomass fuels are not included (see Emissions from Biomass Burning). Other

greenhouse gases from biomass fuel combustion are considered net emissions and are included.

Incineration of waste for waste-to-energy facilities are included here and not under Waste.

Emissions from fuel used in ships or aircraft engaged in international transport are not included

here.

Energy Industries. Emissions from fuels combusted by the fuel extraction or energy producing

industries. There is usually a clear distinction between sources related to the combustion of fossil

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fuels and those that are not caused by combustion. In most cases the specific fuel combusted in the

former is added to the source definition.

Transport. Emissions from the combustion and evaporation of fuel for all transport activity,

regardless of the sector. Emissions from fuel sold to any air or marine vessel engaged in international

transport (international bunker fuels) are not included.

Industrial Processes. By-product or fugitive emissions of greenhouse gases from industrial

processes. Emissions from fuel combustion in industry are included under Fuel Combustion.

Solvent and Other Product Use. Emissions resulting from the use of solvents and other products

containing volatile compounds. When the solvents and other products are, or are produced from,

petroleum products, the carbon in the Non-Methane Volatile Organic Compounds (NMVOC)

emissions will be included in the CO2 inventory if the Reference Approach for CO2 emissions from

energy is used. All other non-energy emissions not included under Industrial Processes are included

here.

Agriculture. All anthropogenic emissions from agriculture except for fuel combustion and sewage

emissions.

Land-Use Change and Forestry (LUCF). Total emissions and removals from forest and land use

change activities (activities impact on three different carbon sources/sinks: aboveground biomass,

belowground biomass and soil carbon).

Land-Use, Land-Use Change and Forestry (LULUCF). Total emissions and removals from activities

relating to land use, land-use change and forestry (from the following categories: forest land,

cropland, grassland, wetlands, settlements and other land).

Waste. Total emissions from solid waste disposal on land, wastewater, waste incineration and any

other waste management activity. Any CO2 emissions from fossil-based products (incineration or

decomposition) are not included here. CO2 from organic waste handling and decay are not included

here.

Other. Emissions that do not fit under any other emission source/sink categories of the main

categories described above.

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International Bunkers. Emissions resulting from fuel use in ships or aircraft engaged in international

transport.

Aviation. Emissions resulting from fuel use in aircraft engaged in international transport.

Marine. Emissions resulting from fuel use in ships engaged in international transport.

Table 1 presents a summary of the categories used by the GHG reporting systems analyzed in this

report. A more detailed version of the source categories can be found in the Appendix.

SOURCE CATEGORIES (IPCC)

NOTES

Fuel

Co

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ust

ion

Ener

gy In

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stri

es

Tran

spo

rt

Ind

ust

rial

Pro

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es

Solv

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and

O

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Pro

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Agr

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ltu

re

LUC

F

LULU

CF

Was

te

Oth

er

Inte

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ion

al

Bu

nke

rs

Avi

atio

n

Mar

ine

USA X X X X X

Categorized by Direct Emitters, Suppliers and CO2 Injectors

USA - CA X X X X X X X X Categorized by Facility, Supplier, Power Entity

USA - OR X X Categorized by Facilities and Suppliers of fuels and electricity

CANADA X X X X X X X X X X

Quebec X X X X X X X

British Columbia X X X X X X X X X X X

Ontario

WCI X X X

Costa Rica X X X X X X X

European Union X X X X X X X X

Table 1. Source Categories as defined by the International Panel on Climate Change and Greenhouse Gas reporting systems analyzed in this report.

SUMMARY

In North America and the EU, annual aggregate emissions thresholds are used to determine when a facility must report GHG emissions. These range widely, from a low of 2,500 metric tons of CO2

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equivalent in Oregon to a high of 50,000 MTCO2e in Canada. Consequently, coverage ranges from a high of 99% (Oregon) to a low of __% (Canada). The US standard is 25,000 MTCO2e but, as is the case with other entities, some categories of emitters are required to report no matter what their emissions levels are (e.g., power plants), and some categories of emitters are excluded from reporting entirely (e.g., certain aspects of agriculture). California has a two-tiered system, where emitters between 10,000 and 25,000 MTCO2e are able to file an abbreviated report and certain other requirements are waived. Both Quebec and British Columbia have adopted 10,000 MTCO2e thresholds, as has the Western Climate Initiative. The list of covered substances generally follows the IPCC guidelines, as is also the case in the European Union and Costa Rica, the one Latin American country included in this report. In Costa Rica, all facilities in the designated sectors must comply. There are no thresholds. But some sectors are excluded and, as a result, estimated coverage is 95%. In Oregon, with its low threshold, it has been recommended that the legislature provide subsidies to smaller facilities in order to ease their financial burden in measuring and reporting GHGs. Some general conclusions follow. In industrialized entities (countries, states, provinces), the bulk of GHG emissions are generated by relatively few large emitters. Imposing mandatory reporting on them is likely to capture upwards of 85% of total emissions. To achieve higher coverage requires the imposition of lower reporting thresholds and/or fewer sectors excluded from reporting. Such decisions tend to be entity-specific, reflecting aspects of national or regional industrial policy, cultural norms, etc. Two approaches to easing the burden of measurement and reporting for smaller facilities are worth mentioning: California’s approach, where reporting requirements are streamlined and other aspects of the reporting standard are waived; or Oregon’s approach, where a high level of assistance is provided to help small emitters comply.

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INFORMATION BY COUNTRY

I. UNITED STATES

EPA GREENHOUSE GAS REPORTING PROGRAM (GHGRP)

NOTE that there are two different programs: the Inventory and the GHG Reporting Program, which

are described below.

The Inventory of U.S. Greenhouse Gas Emissions and Sinks (Inventory) is a comprehensive top-

down assessment of national GHG emissions, and presents emissions across multiple years starting

in 1990. The Inventory estimates the total greenhouse gas emissions across all sectors of the

economy using national-level data such as fuel use. This includes estimates of greenhouse gas

emissions from fossil fuel combustion, various industrial processes, and agricultural sources. The

comprehensive greenhouse gas data presented in the Inventory comprise the official U.S. estimate

of total national emissions that is submitted to the United Nations in accordance with the

Framework Convention on Climate Change.

The use of the aggregated national data results in total coverage of sources, but means that the

national emissions estimates for most source categories are not broken down at the geographic or

facility level. This aggregated national data includes coverage of small emitters, such as those in the

commercial and residential sector, in its national totals.

2) The Greenhouse Gas Reporting Program (GHGRP) is a relatively new program that collects

detailed emissions data from the largest greenhouse gas emitting facilities in the U.S.

The GHGRP provides bottom-up data on individual facilities, mainly above certain GHG emissions

thresholds. While the GHG Reporting Program provides specific facility and supplier-level data for

approximately 85-90% of total GHG emissions in the U.S., it does not provide full coverage of total

annual U.S. GHG emissions (e.g., excludes emissions from the agricultural sector).

EPA collected data from facilities through the GHGRP for the first time in 2010. Twelve new industry

types reported GHG data for the first time in 2011. EPA has released summary emissions data from

all facilities covered by the GHGRP as well as aggregated totals by industry type.

The information below corresponds to the Greenhouse Gas Reporting Program:

Agency: US Environmental Protection Agency (EPA)

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Website: http://www.epa.gov/ghgreporting/index.html

GHGRP Established: 2010

Report period: Annual, due on March 31

Mandatory or Voluntary: Mandatory for suppliers of certain products that would result in GHG

emissions if released, combusted or oxidized; direct emitting source categories; and facilities that

inject CO2 underground for geologic sequestration or any purpose other than geologic sequestration

Enforcement: 40 CFR Part 98 from the Mandatory Reporting of Greenhouse Gases Rule (74 FR

56260)

Coverage: The GHGRP includes most, but not all, U.S. emissions. Approximately 8,000 facilities

reported greenhouse gas data to EPA for 2011, covering approximately 85-90% of total U.S.

greenhouse gas emissions.

Threshold: Facilities that emit 25,000 metric tons or more per year of GHGs are required to submit

annual reports to EPA. Also, some facility types such as power plants, refineries and several others

are required to report regardless of their total annual emissions.1

Sectors covered: 40 CFR part 98 applies to direct greenhouse gas emitters, fossil fuel suppliers,

industrial gas suppliers, and facilities that inject CO2 underground for sequestration or other

reasons.

40 CFR part 98 requires reporting by 41 industrial categories. For calendar year 2010, facilities in 29

categories reported. For calendar year 2011, an additional 12 categories reported data.

In general only large suppliers of greenhouse gas emitting products, or facilities that emit more than

25,000 metric tons of CO2 equivalent (CO2e) per year are required to report their annual greenhouse

gas emissions. Some entire sectors, such as the agricultural sector and land-use changes, are not

required to report GHG emissions to the EPA.

Substances:

Carbon dioxide (CO2)

Methane (CH4)

Nitrous oxide (N2O)

Hydrofluorocarbons (HFCs)

Perfluorocarbons (PFCs)

Sulfur hexafluoride (SF6 )

Nitrogen trifluoride (NF3)2

1 The World Resources Institute (WRI) has recommended lowering the threshold to 10,000 metric tons.

2 Nitrogen trifluoride was incorporated in 2012 into the group of GHG gases recognized by the Kyoto Protocol in its second compliance period from 2012-2017/2020

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Mechanisms: Data Collection: Electronic Greenhouse Gas Reporting Tool (e-GGRT) via EPA’s

website. Third Party Verification: Not required by EPA. Reporters are required to self-certify before

submitting to EPA

Access and presentation of data: In January 2012, EPA made the first year of GHGRP reporting data

available to the public through its interactive Data Publication Tool, called Facility Level Information

on Greenhouse gases Tool (FLIGHT)

UNITED STATES - CALIFORNIA

CALIFORNIA GREENHOUSE GAS EMISSIONS MANDATORY REPORTING UNDER AB32

Agency: California Environmental Protection Agency, Air Resources Board

Website: http://www.arb.ca.gov/cc/reporting/ghg-rep/ghg-rep.htm

Established: 2007, revisions on 2010 and 2012. The California’s Cap and Trade Program took effect

in 2012.

Report period: Annual

Mandatory or Voluntary: Reporting is mandatory regardless of emission levels for the operators of

facilities located in California with the following source categories: Electricity generation units that

report CO2 mass emissions through 40CFR part 75; Cement production facilities, Lime

manufacturing, Nitric acid production, Petroleum refineries; Geologic sequestration of Carbon

dioxide; Injection of Carbon dioxide.

Enforcement: Assembly Bill (AB)32 – Global Warming Solutions Act of 2006.

2012 Air Resources Board Mandatory Reporting Regulation. In effect January 1, 2013.

Coverage: Approximately 80 to 85% of total emissions.

Threshold: For most industrial sectors, the mandatory reporting regulations specifies a reporting

threshold of 25,000 metric tons of CO2e. Other operators of facilities located in California with

source categories are subject to reporting when stationary combustion and process emissions equal

or exceed 10,000 metric tons CO2e for a calendar year. There are also reporting thresholds by fuel

type. For example, if a facility uses more than 471,520 MMBtu (460,000,000scf) of natural gas, or

12,000 short tons of coal, this facility is likely to be subject to the reporting regulation. Similarly, if

the facility has the capacity to generate more than 1 MW of electricity and emits at least 2,500

metric tons of CO2 from generating activities, it is required to report. Electricity retail providers and

marketers are also required to report.

Variations and support for smaller facilities: For facilities with emissions between 10,000 and

25,000 MTCO2e, operators have the option to file an abbreviated report using simpler emission

calculation methods, and they are not subject to third-party verification, missing data substitution,

or calibration and accuracy requirements. Beginning with the reporting of 2013 data in 2014,

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abbreviated reporters must include both emissions from stationary fuel combustion and process

emission sources in their GHG reports and in comparison with the 10,000 MTCO2e threshold for

determining rule applicability. If the sum of emissions from stationary fuel combustion and process

sources exceeds 25,000 MTCO2e, the facility is not eligible for abbreviated reporting. For facilities

in the Petroleum and Natural Gas Systems sector, they must also include vented and fugitive

emissions in their threshold comparison and in their GHG reports. The abbreviated reporting option

is provided to help reduce the cost of compliance for smaller facilities. It is the responsibility of

facility operators to conduct a comprehensive emission inventory of all emission sources at their

facility and determine applicability using the correct sum of emissions.

Sectors covered: The reporting regulation classifies three types of reporting entities: facility, supplier (of natural gas, CO2, and transportation fuels), and electric power. Rule applicability is determined based on the total emissions summed across all applicable source categories for each type of reporting entity. However, reporting entities within the petroleum and natural gas systems sectors may be subject to different “facility” definitions. As an example, the operator of a facility would determine the applicable source category for each emission source within the facility boundary and then sum the emissions from all emission sources to determine whether the facility is under or over the reporting thresholds in section 95101 (CA EPA ARB, 2013)

Substances:

Carbon dioxide (CO2)

Methane (CH4)

Nitrous oxide (N2O)

Hydrofluorocarbons (HFCs)

Perfluorocarbons (PFCs)

Sulfur hexafluoride (SF6 )

Nitrogen trifluoride (NF3)

Mechanisms: Data Collection: California Electronic Greenhouse Gas Reporting Tool (Cal e-GGRT).

Third Party Verification: Reporting entities are required to have their GHG emissions data reports

verified each year by an ARB-accredited verification body, beginning in 2010 for 2009 emissions.

Verification bodies under CARB (California Air Resource Board) can complete verifications for large

emitter (above the 25,000 MTCO2e threshold) reports under the regulation.

Access and presentation of data: Historical data are available through their website and through

the GHG Data Visualization Tool (Google Earth and Google Maps)

USA - OREGON

GREENHOUSE GAS REPORTING PROTOCOL

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Agency: Oregon Department of Environmental Quality

Website: http://www.deq.state.or.us/aq/climate/reporting.htm

Established: 2008 (initial reporting year of 2009, with initial reports due 2010)

Report period: Annual

Mandatory or Voluntary: Mandatory

Enforcement: ORS 468A.050

Coverage: 99% of total emissions

Threshold: 2,500 metric tons or more of carbon dioxide equivalent (MTCO2e) per year for air quality

permit holders, landfills and wastewater treatment facilities. The same threshold is applied to all

suppliers of fuels and electricity including gasoline, diesel and aircraft fuel distributors; propane

wholesalers; natural gas suppliers; investor-owned utilities and electricity service suppliers; and

consumer-owned utilities.

Sectors covered: Industrial facilities with air quality permits, water treatment facilities, fuel distributors, electricity suppliers and large landfills.

Indirect emissions (such as emissions from power consumption, employee commuting, or air travel)

are reported on a voluntary basis.

Certain types of direct emissions are excluded from reporting, including mobile activities (such as

delivery vehicles, forklifts, and fleets) and “categorically insignificant” emission activities.

“Categorically insignificant” emissions include food service, janitorial, grounds keeping, onsite

laundry, and recreational and other activities.

Substances:

Carbon dioxide (CO2)

Methane (CH4)

Nitrous oxide (N2O)

Hydrofluorocarbons (HFCs)

Perfluorocarbons (PFCs)

Sulfur hexafluoride (SF6 )

Mechanisms: Data Collection: Most facilities must report their GHG emissions through the online

system called EZ-Filer. Third Party Verification: Not required

Access and presentation of data: Reports from previous years are available online at the Oregon’s

DEQ website

Other considerations:

Budget and funding: Because greenhouse gases are produced by all sectors of Oregon’s economy,

and because GHG reporting is mandatory in Oregon, the Advisory Committee recommended that

the legislature considered general funds to support the program. This takes the form of a high level

of assistance available to help small emitters comply.

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The lower threshold: It is thought that the low threshold creates an incentive for smaller sources to

stay below the threshold to avoid future regulation. Originally, there was no threshold, so all sources

had to report. The application of the 2,500 MTCO2e to only air-quality permitted sources reduced

by 50% the number of sources required to report. The rationale for this decision was the fact that

the sources above the threshold account for most of the emissions. DEQ calculated that the sources

below the threshold account for 1% of the state’s industrial GHG emissions.

“Oregon’s Department of Environmental Quality states that: The 2,500 metric ton threshold provides us a more accurate and comprehensive understanding of Oregon’s emissions compared to higher thresholds. During rule development, there was going to be no threshold; however, DEQ added the threshold in response to comments about impacts to small businesses, which were primarily the smallest emitters. Having a threshold of 2,500 metric tons excludes the smallest emitters from reporting, but still provides comprehensive information about Oregon’s emissions. DEQ held an advisory committee of stakeholders and that committee recommended the reporting requirements” (OR-DEQ)

Oregon’s GHG Reporting is not currently associated with any cap-and-trade programs.

II. CANADA

GHGRP - GREENHOUSE GAS EMISSIONS REPORTING PROGRAM

Similar to the USA, Canada has two different programs: an inventory at the national level, and the

GHG Reporting Program, which are described below.

1) Canada’s National Inventory Submission is the annual communication through which Canada

meets its annual reporting obligations under the UNFCCC, and demonstrates compliance with

monitoring and reporting requirements under the Kyoto Protocol. The National Inventory

Submission further constitutes the authoritative indicator and basis of comparison of national

performance; is a source of high-quality, detailed information for Canadians on key emission trends

for specific sources, sectors and regions; and provides a core data source for setting baseline

emissions and scenarios development.

2) The Greenhouse Gas Reporting Program provides a more precise picture of the sources and

amounts of GHG emissions from Canadian facilities. The facility data collected through this program

is published annually and is used to verify data presented in the National Greenhouse Gas Inventory

Report.

The main difference between the two programs described above is that under the GHG Emissions

Reporting Program (GHGRP), currently no specific estimation methods are prescribed. Reporters

can choose the quantification methodologies most appropriate for their own particular industry or

application. However, reporting facilities must use methods for estimating emissions that are

consistent with the guidelines adopted by the UNFCCC for the preparation of national GHG

inventories.

The information below corresponds to the Greenhouse Gas Reporting Program:

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Agency: Environment Canada

Website: http://ec.gc.ca/ges-ghg/default.asp?lang=En&n=8044859A-1

Established: 2004

Report period: Annual

Mandatory or Voluntary: Mandatory

Enforcement: Section 46 of the Canadian Environmental Protection Act, 1999 (CEPA, 1999)

Coverage: Only the largest industrial GHG emitters. 36% of Canada’s total GHG emissions; 57% of

Canada’s industrial GHG emissions.

Threshold: 50,000 MTCO2e (used to be 100,000 MTCO2e before 2009)

Sectors covered: Energy, Industrial Processes, Solvent and Other Product Use, Agriculture, Land Use, Land-Use Change and Forestry (LULUCF), Waste and Wastewater

Substances:

Carbon dioxide (CO2)

Methane (CH4)

Nitrous oxide (N2O)

Hydrofluorocarbons (HFCs in Co2e)

Perfluorocarbons (PFCs in Co2e)

Sulfur hexafluoride (SF6 )

Emissions from natural, unmanaged sources (material decay, plant and animal respiration, volcanic and thermal venting, etc.), and absorption of emissions by natural sinks (forests, oceans), are not captured

Mechanisms: Data collection: Single Window Information Manager (SWIM). Third Party Verification:

Currently, there are no specific requirements for a facility to have its emissions verified by a third

party. The information reported by a facility should nevertheless be verifiable, which means that

any information that would allow a facility’s emissions to be verified by either the government or a

third party certified by the government to carry out such verifications should be retained. Facilities

can choose to have their emissions verified by a third party if they wish

Access and presentation of data: The information is published on Environment Canada's GHG

website (www.ec.gc.ca/ges-ghg).

QUEBEC, CANADA The Quebec GHG emission inventory uses data provided by Quebec companies. Until 2007, the

companies provided their data on emissions or energy consumption and production on a voluntary

basis to the Ministry of Sustainable Development, Environment, Wildlife and Parks.

Since 2007, companies are required to provide this information under the regulation respecting

mandatory reporting of certain emissions of contaminants into the atmosphere

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Since 2012, mandatory reporting is required for specific contaminants that are causing increments

in the greenhouse effect, acid rain, smog and toxic pollution.

Agency: Ministry of Sustainable Development, Environment, Wildlife and Parks.

Website: http://www.mddefp.gouv.qc.ca/air/declar_contaminants/index.htm

Established: Revised 2012

Report period: Annual

Mandatory or Voluntary: Mandatory

Enforcement: Règlement sur la déclaration obligatoire de certaines émissions de contaminants dans

l'atmosphère, RRQ, Chapter Q-2, r. 15

Coverage: Unknown

Threshold: 10,000 MTCO2e.

Sectors covered: Industry; Transportation; Heating for residential, commercial and institutional buildings; Agriculture; Electricity; Waste

Substances:

Carbon dioxide (CO2)

Methane (CH4)

Nitrous oxide (N2O)

Hydrofluorocarbons (HFCs in Co2e)

Perfluorocarbons (PFCs in Co2e)

Sulfur hexafluoride (SF6 )

Nitrogen trifluoride (NF3)

Carbon monoxide (CO)

Nitrogen oxide (NOx)

Volatile Organic Compounds (NMVOC)

Sulphur dioxide (SO2)

Ammonia (NH3)

PM, PM10, PM2.5

Mechanisms: Data collection: GHG Reports can be filed online through the system enviroWEB, at the website of Quebec’s Ministry of Sustainable Development, Environment, Wildlife and Parks. Third Party Verification: Required, Verifications must be completed by an ISO 14065 accredited body.

Access and presentation of data: Available on the website of Quebec’s Ministry of Sustainable Development, Environment, Wildlife and Parks.

BRITISH COLUMBIA, CANADA Agency: BC Ministry of Environment

Website: http://www.env.gov.bc.ca/cas/mitigation/ghg_inventory/

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Established: 2009

Report period: Annual

Mandatory or Voluntary: Mandatory

Enforcement: GHG Reduction (Cap and Trade) Act. Mandatory Reporting Regulation 272/2009

Coverage: Approximately 90%.

Threshold: 10,000 MTCO2e.

Sectors covered: Industrial, Electricity generation, Electricity imports, Landfill gas, among others.

Substances:

Carbon dioxide (CO2)

Methane (CH4)

Nitrous oxide (N2O)

Hydrofluorocarbons (HFCs in Co2e)

Perfluorocarbons (PFCs in Co2e)

Sulfur hexafluoride (SF6 )

Nitrogen trifluoride (NF3)

Mechanisms: Data collection: Reports are submitted online via the One-Window Reporting (OWR) at: https://ec.ss.ec.gc.ca/. Third Party Verification: Reporting operations with 25,000 MTCO2e emissions per year (exclusive of CO2 emissions from specific types of biomass) are required to provide a supplementary report including a verification statement from an accredited third party verifier.

Access and presentation of data: The reports are available online at the BC Ministry of Environment’s website.

ONTARIO, CANADA Agency: Ontario’s Ministry of the Environment

Website:

http://www.ene.gov.on.ca/environment/en/category/climate_change/STDPROD_085095

Established: 2010

Report period: Annual

Mandatory or Voluntary: Mandatory

Enforcement: Ontario Regulation 452/09 (http://www.e-

laws.gov.on.ca/html/regs/english/elaws_regs_090452_e.htm#Top)

Coverage: Not available.

Threshold: 25,000 MTCO2e; companies with GHG emissions between 10,000 and 25,000 MTCO2e

per year are encouraged to voluntarily report.

Sectors covered: Industry (selected manufacturing), Electricity generation, Petroleum refining.

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Substances:

Carbon dioxide (CO2)

Methane (CH4)

Nitrous oxide (N2O)

Hydrofluorocarbons (HFCs in Co2e)

Perfluorocarbons (PFCs in Co2e)

Sulfur hexafluoride (SF6 )

Nitrogen trifluoride (NF3)

Mechanisms: Data collection: Emissions reports are submitted via the Environment Canada’s Single Window System. Third Party Verification: Verification is required by an ISO 14065 by a member of the International Accreditation Forum (IAF).

Access and presentation of data: Reports are available at the Ontario Ministry of the Environment website.

III. OTHER REPORTING INITIATIVES:

WESTERN CLIMATE INITIATIVE INC.

The Western Climate Initiative (WCI) is a regional organization formed in February 2007 by seven western states (Oregon, Washington, California, Montana, Utah, New Mexico and Arizona) and four Canadian provinces (British Columbia, Quebec, Ontario and Manitoba). A number of other US and Mexican states, as well as Canadian provinces, used to participate in WCI as observers. The purpose of WCI is to fill the void left by the lack of federal GHG regulation and to create a regional GHG strategy that can minimize the differences between GHG reporting requirements. Currently (2008) the main focus of WCI is on the development of a GHG cap and trade program. Most member states have left the WCI. Only California, and the provinces of British Columbia, Ontario, Manitoba and Québec (Canada) remain participating.

Agency: Western Climate Initiative Inc.

Website: http://www.wci-inc.org/

Established: 2007

Report period: Annual

Mandatory or Voluntary: Mandatory for certain facilities that directly emit GHG, by importers of

electricity, and by suppliers of fossil fuels.

Enforcement: WCI Essential Requirements for Mandatory Reporting (ERs)

Coverage: Not Available

Threshold: 10,000 MTCO2e (individual states can push the threshold lower)

Sectors covered: Cement manufacturing, Electricity Generation, Industries, Waste

Substances:

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Carbon dioxide (CO2)

Methane (CH4)

Nitrous oxide (N2O)

Hydrofluorocarbons (HFCs)

Perfluorocarbons (PFCs)

Sulfur hexafluoride (SF6 )

Nitrogen trifluoride (NF3)

Mechanisms: Data collection: Third Party Verification: Third party verification required only for facilities with annual emissions of 25,000 MTCO2e or more.

Access and presentation of data: The most up-to-date information relating to implementation state and provincial emissions trading programs is on their new website: www.wci-inc.org.

IV. EUROPEAN UNION

EU GHG INVENTORY

Agency: European Environment Agency

Website: http://www.eea.europa.eu/themes/climate

Established: 1993, Revised 2004

Report period: Annual

Mandatory or Voluntary: Mandatory

Enforcement: Council Decision No. 280/2004/EC

Coverage: Sum of national inventories, based on member states’ own monitoring

Threshold: No thresholds; all sources must report.

Sectors covered: Energy, Industrial processes, Commercial airlines, Solvent and Other Product Use,

Agriculture, Land-Use, Land-Use Change and Forestry, and Waste.

Substances:

Carbon dioxide (CO2)

Methane (CH4)

Nitrous oxide (N2O)

Hydrofluorocarbons (HFCs in Co2e)

Perfluorocarbons (PFCs in Co2e)

Sulfur hexafluoride (SF6 )

"Indirect" GHGs

Carbon monoxide (CO),

Nitrogen oxide (NOx)

Volatile Organic Compounds (NMVOC)

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Sulphur dioxide (SO2)

Mechanisms: Data collection: Under the UNFCCC reporting guidelines for Annex I Parties, inventory

submissions are in two parts: 1) Common reporting format (CRF) – a series of standardized data

tables containing mainly numerical information and submitted electronically; and 2) National

Inventory Report (NIR) – a comprehensive description of the methodologies used in compiling the

inventory, the data sources, the institutional structures and quality assurance and control

procedures. Third Party Verification: Expert review teams review all inventories submitted to the

UNFCCC.

Access and presentation of data: Reports are available online at the Data Centre of the European Environment Agency’s website, or at the UNFCCC website.

V. COSTA RICA

REPORTE DE INVENTARIO DE EMISIONES DE GASES DE EFECTO INVERNADERO (REPORT OF THE

INVENTORY OF GHG EMISSIONS)

In 2010, Costa Rica established the goal of being carbon-neutral by 2021. In order to achieve this,

Costa Rica is receiving technical support from the German government. In 2009, Costa Rica had an

increment of 44% in its carbon emissions, in relation to 1995. Participation in the Carbon-neutral

program is voluntary. Participant organizations must provide GHG reports, will be able to receive

the recognition of being “C-neutral” and participate in the local carbon market (in order to receive

compensation).

Although all sources must comply, Costa Rica does not reach 100% of total emissions being reported

because it lacks the capacity to obtain complete accuracy in all sectors.

Agency: Ministerio del Medio Ambiente y Energía, Dirección de Cambio Climático (Ministry of

Environment and Energy, Department of Climate Change)

Website: http://www.minae.go.cr

Established: 2009

Report period: Annual

Mandatory or Voluntary: Mandatory

Enforcement: Acuerdo 36-2012 MINAET

Coverage: 95% of the country’s total emissions

Threshold: None, everybody must comply

Sectors covered: Energy, Industrial Processes, Agriculture, Land Use Change and Forestry, and Waste Management.

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Substances:

Carbon dioxide (CO2)

Methane (CH4)

Nitrous oxide (N2O)

Hydrofluorocarbons (HFCs)

Perfluorocarbons (PFCs)

Sulfur hexafluoride (SF6 )

Indirect GHGs included:

Carbon monoxide (CO),

Nitrogen oxide (NOx)

Volatile Organic Compounds (NMVOC)

Sulphur dioxide (SO2)

Mechanisms: Data collection: GHG reporting must follow the WRI Greenhouse Gas Protocol: A

Corporate for Accounting and Reporting Standard (available at:

http://www.wri.org/publication/greenhouse-gas-protocol-corporate-accounting-and-reporting-

standard-revised-edition). Third Party Verification: Verification must be conducted by agencies

accredited by Ente Costarricense de Acreditación (ECA), or by organizations accredited by ISO

14065, or by organizations approved by MINAET.

Access and presentation of data: GHG emissions inventories are available at the National Meteorological Institute website: http://cglobal.imn.ac.cr/documentos?catid=5

DEFINITIONS

Carbon dioxide (CO2). Chemical compound containing one atom of carbon and two atoms of oxygen.

Carbon dioxide equivalent (CO2e) means the quantity of a given greenhouse gas multiplied by a

Global Warming Potential (GWP) factor provided in emissions reporting protocols.

Carbon monoxide (CO). A colorless, odorless, and tasteless gas that is slightly lighter than air. It is

toxic to humans and animals when encountered in higher concentrations, although it is also

produced in normal animal metabolism in low quantities, and is thought to have some normal

biological functions. In the atmosphere it is spatially variable, short lived, having a role in the

formation of ground-level ozone.

Direct emissions. Emissions from an air contamination source, including but not limited to fuel

combustion activities, process related emissions, and fugitive emissions.

Global Warming Potential factor (GWP). The radiative forcing impact of one massbased unit of a

given greenhouse gas relative to an equivalent unit of carbon dioxide over a given period of time.

Greenhouse gas (GHG). Any gas that contributes to anthropogenic global warming including, but

not limited to, carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and

sulfur hexafluoride.

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Hydrofluorocarbons (HFCs). Gaseous chemical compounds containing only hydrogen, carbon and

fluorine atoms.

Indirect emissions. Emissions associated with the purchase of electricity, heating, cooling or steam.

Methane (CH4). The chemical compound containing one atom of carbon and four atoms of

hydrogen.

Metric ton, tonne, or metric tonne. One metric tonne (1000 kilograms) or 2204.62 pounds.

Mobile combustion emissions. Emissions from the combustion of fuels in mobile combustion

sources such as cars, trucks, buses, trains, airplanes, ships including dredge vessels, and construction

equipment.

Nitrogen oxide (NOx). A binary compound of oxygen and nitrogen. Usually refers to NO and NO2.

Nitrogen triflouride (NF3). The chemical compound consisting of one nitrogen atom and three

fluorine atoms.

Nitrous oxide (N2O). The chemical compound containing two atoms of nitrogen and one atom of

oxygen.

Perfluorocarbons (PFCs). Gaseous chemical compounds containing only carbon and fluorine atoms.

Sulfur hexafluoride (SF6). The chemical compound containing one atom of sulfur and six atoms of

fluorine.

WORKS CITED

BLUE. 2010. Greenhouse gas emissions thresholds: What will the magic number be? Posted by Arash

Guity on January 09, 2010 at 2:39p Available at:

http://www.mazzetti.com/index.php/blue/blog_view/321/

British Columbia Ministry of Environment

http://www.env.gov.bc.ca/cas/mitigation/ghg_inventory/

California Environmental Protection Agency, Air Resources Board

http://www.arb.ca.gov/cc/reporting/ghg-rep/ghg-rep.htm

Costa Rica, Ministerio del Medio Ambiente y Energía, Dirección de Cambio Climático (Ministry of

Environment and Energy, Department of Climate Change) http://www.minae.go.cr

Costa Rica MINAE & IMN. 2009. Inventario Nacional de Gases con Efecto Invernadero y Absorción

de Carbono en Costa Rica en el 2000 y 2005. Available at: http://www.imn.ac.cr

Environment Canada, Greenhouse Gas Division http://www.ec.gc.ca/ges-

ghg/default.asp?lang=En&n=83A34A7A-1

Environment Canada. Greenhouse Gas Emissions Reporting Program http://ec.gc.ca/ges-

ghg/default.asp?lang=En&n=8044859A-1.

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Environment Canada. 2013. Overview of Reported Emissions 2011. Facility GHG Emissions Reporting

Program, Available online at:

http://www.ec.gc.ca/Publications/default.asp?lang=En&xml=75BCDCD3-0F65-462A-95F5-

A750B5556FDC.

ERA Environmental Management Solutions (blog) By Alex Chamberlain. Available online at:

http://info.era-environmental.com/blog/bid/49322/Understanding-Canadian-

Greenhouse-Gas-Emission-Reporting

European Environment Agency. http://www.eea.europa.eu/themes/climate

European Environment Agency. 2013. Annual European Union Greenhouse Gas Inventory 1990-

2011 and inventory report 2013. EEA Technical Report no. 8.

Ontario’s Ministry of the Environment

http://www.ene.gov.on.ca/environment/en/category/climate_change/STDPROD_085095

Oregon Department of Environmental Quality.

http://www.deq.state.or.us/aq/climate/reporting.htm

Perkins Coie. 2009. Mandatory Greenhouse Gas Emissions Reporting Under the Western Climate

Initiative. Available online at: http://www.perkinscoie.com/mandatory-greenhouse-gas-

emissions-reporting-under-the-western-climate-initiative-03-18-2009/

Quebec Ministry of Sustainable Development, Environment, Wildlife and Parks.

http://www.mddefp.gouv.qc.ca/air/declar_contaminants/index.htm

Regional Greenhouse Gas Initiative (RGGI or ReGGIe) Available online at http://www.rggi.org/

The Daily Fusion. 2013. EU Carbon Dioxide Emissions Lowest since 19990. Available online at:

http://dailyfusion.net/2013/06/eu-carbon-dioxide-emissions-lowest-since-1990-10431/

US Environmental Protection Agency (EPA) http://www.epa.gov/ghgreporting/index.html

Western Climate Initiative, Inc. http://www.wci-inc.org/