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CEMARS and the
carboNZero programme
Ann Smith – Acting Chief Executive
22 August 2012
Who we are?
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A wholly owned subsidiary of Landcare Research, a Crown
Research Institute owned by the New Zealand government
o Board
o Independent Advisory Panel
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A GHG certification body accredited by the Joint Accreditation
System of Australia and New Zealand (JAS-ANZ)
Our numbers
2 offices: Lincoln and Auckland
5 countries
17 staff
200+ clients
775+ certifications
1.86m+ tCO2e reductions
74.5m+ tCO2e verified footprint
250
Number of certificates
265,000+ tCO2e offsets
EVENT
S
200
CEMAR
S
150
SEC
100
CZ
50
PARTIC
IPANT
0
2001/02 2003/04 2005/06 2007/08 2009/10 2011/12
Financial year end
Our credentials
• ISO 14065:2007 accredited by the Joint
Accreditation System of Australia and New
Zealand (JAS-ANZ) to verify/certify against
o ISO 14064-1:2006 (organisation)
o PAS 2050:2008 (product)
• Assessed by the UK Environment Agency and
licensed under the UK Climate Change Act 2008
as meeting and exceeding the Carbon Trust
Standard for the Carbon ReducEQUItion
Commitment (CRC) and Energy Efficiency Scheme
• Accredited by the Carbon Disclosure Project as a
verification standard suitable for organisations
reporting into the CDP
What we do?
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Certify organisations, products, services, events
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Two certification brands
o CEMARS (Certified Emissions Measurement And Reduction Scheme)
o carboNZero programme
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Provide rules, tools and guidance
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Undertake the third party audits
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Programme requirements are influenced by and aligned with
international standards and sector best practice
What is it all about?
• Climate change is the issue
• GHG emissions is the problem
• Price on carbon to encourage
emissions reduction is the
solution
• Carbon trading is the mechanism
• 1 tonne of CO2e is the currency
• Measurement and verification is
essential
Six greenhouse gases are measured and
converted to carbon dioxide equivalents
(CO2e) by multiplying by Global Warming
Potentials from the Assessment Reports
of the Intergovernmental Panel on
Climate Change (IPPC)
What are companies doing?
• Setting corporate climate change policies
• Measuring and reporting their corporate
greenhouse gas emissions
• Setting emissions reduction targets
• Offsetting their emissions
• Influencing others to measure, report and reduce
• Participating in compliance schemes
• Participating in voluntary schemes
• Preparing climate change adaptation plans
What is driving companies to take action?
• Regulators
o Compliance reporting/trading
o Fair trading
• Shareholders
o Annual reporting
o Some stock exchanges require risk
disclosure including carbon emissions
• Institutional investors
o Global Reporting Initiative (GRI)
o Carbon Disclosure Project (CDP)
• Ethical investment
o Dow Jones Sustainability Index
o FTSE4Good
• Insurance and banking
o UNEP Finance Initiative (UNEP FI)
o The Geneva Reports
o Equator Principles
Carbon Disclosure Project
• 655 institutional investors worth
US$78 trillion
• Over 3,000 listed companies report
from over 60 countries
Insurance Associations with climate
change focus
• Association of British Insurers
• Malaysia Insurance Institute
• National Association of Insurance
Commissioners (USA)
• National Association of Mutual
Insurance Companies (USA)
• United Nations Environment
Programme’s Finance Initiative
Consumer law and advertising standards
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Accurate and not misleading
Substantiated and verified
Relevant to the company, product or service
Used in the appropriate context or setting
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Footprint based on full life cycle
Footprint based on international standards
Offsets must be additional
Ensure claims are certified
Ensure certifier is accredited
Fair Trading Act 1986
Guidelines for Carbon
Claims July 2009
What is involved?
• Measure footprint
o An emissions inventory report
o Product carbon footprint report
• Reduce emissions
o An emissions management plan
• Offset the emissions that can’t be reduced
o Cancel carbon credits equivalent to your remaining emissions
What is a footprint?
• Organisation
o An account of the operational GHG emissions
owned and controlled by the organisation with
defined boundary and scope
• Scope 1
• Scope 2
• Scope 3
• Product
o An account of the GHG emissions associated with
the life cycle of the product
• Upstream
• Core process
• Downstream
Six greenhouse gases
Greenhouse gas
Global Warming
Potential
Main emissions source
Carbon dioxide CO2
1
Fossil fuel use
Methane CH4
21
Ruminant animals and waste
Nitrous oxide N2O
310
Agriculture
Hydrofluorocarbons HFCs
1,300-11,700
Refrigerants
Perfluorocarbons PFCs
6,500 -9,200
Aluminium production
Sulphur hexafluoride SF6
23,900
Electricity industry
Three scopes
Scope 1 emissions
Fuel (petrol, diesel), coal,
gas, process emissions from
sources owned or controlled
by company, e.g. boilers,
vehicle fleet
Scope 2 emissions
Purchased electricity,
heat and steam
Scope 3 emissions
Contractors, business
travel (air travel, trains,
coaches, taxis, rental
cars), couriers, freight,
waste to landfill
Organisation vs product boundary and scope
What we do?
• Certify footprints in accordance with
ISO 14064-1 (organisation), PAS 2050 (product)
and the Programme rules for management and
reduction
• We provide the rules, tools, templates and
guidance for clients to prepare for audit
• Audits are undertaken by internal and
contracted auditors – we train and assess
auditors
• We undertake the independent reviews and
issue certificates
• We issue and control the use of the CEMARS
and carboNZero certification marks
• Support clients through marketing and
implementation of management plan
What our clients do?
• Register on the programme
o Access rules, templates and guidance via password
protected page
o Access E-Manage on-line inventory management tool
with approved emissions factors
• Prepare for audit:
o Emissions inventory report
o Emissions management and reduction plan
o Disclosure statement
• Undergo audit and address any issues that arise
• Receive certificate and access to the certification
marks or logo
• Implement the emissions management programme
International standards
How we relate to standards and reporting schemes?
Why certification?
• Provides a level playing field by
interpreting the standards in a consistent
manner
 This is critical for sectors, supply chains and
suppliers responding to government and
other corporate procurement requirements
• Enhances credibility by providing
internationally recognised assurance over
carbon claims
 This is critical for exporters and supply chains
• Provides the additional rules needed for
certified companies to be able to use a
mark or logo
 This enhances access to markets
What makes us successful?
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Standards and science based
Accreditation by JAS-ANZ – internationally recognised
Integration of compliance requirements with voluntary
standards thus reducing duplication of effort for clients
Recognition by the UK regulator
Provision of rules, tools, templates, guidance
Rigorous peer review of resources provided
Rigorous independent review of results of verification
Marketing the achievements of clients and the value of
certification
Working with partners
Willingness to collaborate with our accreditation body to
develop policies and procedures for the emerging
greenhouse gas standards
What is reported?
COMPLIANCE SCHEMES
VOLUNTARY SCHEMES
Organisation only
Organisation, product, service, events
CO2 alone OR
All six GHGs
All six GHGs
Scope 1 emissions OR
Scope 1 and 2 emissions
Scope 1 emissions
Scope 2 emissions
Scope 3 emissions (up to 15 categories)
Emissions liable under the scheme
Emissions that company owns, controls,
can influence
Rules for reporting are set by the
regulator and vary by sector
Rules for reporting are based on
international standards
Self declaration OR
Selection of reporting organisations are
third party verified
All organisations are third party verified
Accredited certifier
What is required for the offset or carbon credit?
COMPLIANCE SCHEMES
VOLUNTARY SCHEMES
Only the emissions that the organisation is
liable to report
All emissions reported within the certified
boundary and scope
ONE offset unit per each TWO tCO2e
reported
ONE offset unit per every ONE tCO2e
reported
May surrender offset units or pay money
instead
Offset must be based on an emissions
reduction
Offsets can be NZUs or CERs (from CDM)
Offsets may be CERs or VCUs from
projects certified under the CDM or VCS
NZUs are not created from an emissions
reduction and are not additional
Offsets must be additional, permanent,
verified, no leakage
Offset units are surrendered not cancelled
and may be recycled or reallocated e.g. to
agriculture in 2017 – that means there
could be double use
Offsets must be cancelled (or equivalent)
in the relevant public registry to ensure no
double use of the offset