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Product Carbon Accounting
   Market Assessment
    Joint GTZ/ISEAL Workshop
 Bonn, Germany – 27 October 2010
        Henk van Rikxoort
AGENDA
       Background
       Market Status
       Example: Unilever
       Example: Tesco
       Ongoing Discussion
       Conclusions




    2                        Product Carbon Accounting - Market Assessment
BACKGROUND
       Collaboration of ISEAL & GTZ on CC mitigation
       Ecofys commissioned to map Climate Assurance Systems
       Results refined by ISEAL & GTZ in report: “Accounting for
        Carbon: Mapping the Landscape of Climate Assurance
        Systems”.
       Additional research needed to assess the status of
        Product Carbon Accounting in the market




    3                                  Product Carbon Accounting - Market Assessment
MARKET STATUS
       9 Brands and 10 Retailers examined:                     Brands
       Assessed:
           Commitment to reduce GHG emissions
           Status on product carbon accounting
           Level of supplier cooperation/requirements
           Level of consumer communication

                                                               Retailers
       Status:
           PCF mostly in test-phase
           Used for internal knowledge building
           LCA (ISO 14044) and PAS 2050
            predominant methodologies

    4                                              Product Carbon Accounting - Market Assessment
EXAMPLE: UNILEVER
       Works with LCA (ISO 14044)
       Database with 1500 products examined                          “At an average
       Data is used to prioritise the GHG                          Unilever product
        reduction categories of focus                                most reduction
                                                                     can be achieved
       Developed a set of “Good Practices” for                     in the use stage”
        low GHG tea production

                             “We are afraid for a carbon
                                 tax on products.”


          “We found that that the differences
            between products in the same
               category are very small.”
    5                                           Product Carbon Accounting - Market Assessment
EXAMPLE: TESCO
       Started in 2007 with CFP among
        selected own-brand products
       Since this pilot work 500 CFP of own-
        brand products calculatated
       Works with suppliers to identify
        emissions hotspots and eliminate them
        throughout the supply chain


             “We found that aerosol
         deodorants tend to have higher
         carbon footprints than roll-ons.”


                “Recycled toilet paper has a
              footprint a third lower than the
                    standard product.”
    6                                            Product Carbon Accounting - Market Assessment
ONGOING DISCUSSION
       Credibility:                       “PCF only focuses on a single
                                         environmental aspect – emissions
         “Lack of harmonised                       of GHG’s.”
          methodologies and
           methodological
          constraints exist.”                         “Lack of product
                                                        specific rules
                                                          (PCRs).”
       Labels:
            “Half of all respondents
          understood what a carbon
         footprint was, nearly as many        “Reference to a CO2 quantity
           would seek products with          remains incomprehensible to the
              lower footprints.”               vast majority of consumers.”


    7                                         Product Carbon Accounting - Market Assessment
CONCLUSIONS
       Product carbon accounting common practice
       Results used to work on effective GHG reductions
        together with suppliers
       Ongoing discussion prevents breakthrough of carbon
        labels on products
       Demonstration and quantification of GHG reductions
        embedded in standard systems perceived as important by
        Brands and Retailers




    8                                Product Carbon Accounting - Market Assessment
gtz
    Henk van Rikxoort
    Consultant – Agriculture and Climate Change

    Wageningen
    The Netherlands

    Mobile Europe        +31618187108
    E-mail               henk.vanrikxoort@wur.nl



9       Product Carbon Accounting - Market Assessment

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Henk van Rikxoort - Product Carbon Accounting Market Assessment

  • 1. Product Carbon Accounting Market Assessment Joint GTZ/ISEAL Workshop Bonn, Germany – 27 October 2010 Henk van Rikxoort
  • 2. AGENDA  Background  Market Status  Example: Unilever  Example: Tesco  Ongoing Discussion  Conclusions 2 Product Carbon Accounting - Market Assessment
  • 3. BACKGROUND  Collaboration of ISEAL & GTZ on CC mitigation  Ecofys commissioned to map Climate Assurance Systems  Results refined by ISEAL & GTZ in report: “Accounting for Carbon: Mapping the Landscape of Climate Assurance Systems”.  Additional research needed to assess the status of Product Carbon Accounting in the market 3 Product Carbon Accounting - Market Assessment
  • 4. MARKET STATUS  9 Brands and 10 Retailers examined: Brands  Assessed:  Commitment to reduce GHG emissions  Status on product carbon accounting  Level of supplier cooperation/requirements  Level of consumer communication Retailers  Status:  PCF mostly in test-phase  Used for internal knowledge building  LCA (ISO 14044) and PAS 2050 predominant methodologies 4 Product Carbon Accounting - Market Assessment
  • 5. EXAMPLE: UNILEVER  Works with LCA (ISO 14044)  Database with 1500 products examined “At an average  Data is used to prioritise the GHG Unilever product reduction categories of focus most reduction can be achieved  Developed a set of “Good Practices” for in the use stage” low GHG tea production “We are afraid for a carbon tax on products.” “We found that that the differences between products in the same category are very small.” 5 Product Carbon Accounting - Market Assessment
  • 6. EXAMPLE: TESCO  Started in 2007 with CFP among selected own-brand products  Since this pilot work 500 CFP of own- brand products calculatated  Works with suppliers to identify emissions hotspots and eliminate them throughout the supply chain “We found that aerosol deodorants tend to have higher carbon footprints than roll-ons.” “Recycled toilet paper has a footprint a third lower than the standard product.” 6 Product Carbon Accounting - Market Assessment
  • 7. ONGOING DISCUSSION  Credibility: “PCF only focuses on a single environmental aspect – emissions “Lack of harmonised of GHG’s.” methodologies and methodological constraints exist.” “Lack of product specific rules (PCRs).”  Labels: “Half of all respondents understood what a carbon footprint was, nearly as many “Reference to a CO2 quantity would seek products with remains incomprehensible to the lower footprints.” vast majority of consumers.” 7 Product Carbon Accounting - Market Assessment
  • 8. CONCLUSIONS  Product carbon accounting common practice  Results used to work on effective GHG reductions together with suppliers  Ongoing discussion prevents breakthrough of carbon labels on products  Demonstration and quantification of GHG reductions embedded in standard systems perceived as important by Brands and Retailers 8 Product Carbon Accounting - Market Assessment
  • 9. gtz Henk van Rikxoort Consultant – Agriculture and Climate Change Wageningen The Netherlands Mobile Europe +31618187108 E-mail henk.vanrikxoort@wur.nl 9 Product Carbon Accounting - Market Assessment