• Climate Crisis Facts• Green House Gasses• Where are we as a Planet• Measurement of CO2e• Emission Scopes Impact on Trucking• So What Can Be Done

Agenda

Climate Crisis Facts

Greenhouse effect – a necessity for life

Growth in CO2 emissions output

Rising surface temperature

No doubt that they are interlinked issues

Melting of the polar ice caps

Melting of arctic sea ice

Less polar ice and arctic sea ice means…

Intensified storm activity

Green House Gasses

The Kyoto Protocol is a protocol to the United Nations Framework Convention on Climate Change (UNFCCC or FCCC), aimed at combating global warming. The UNFCCC is an international environmental treaty with the goal of achieving "stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system."

The Protocol was initially adopted on 11 December 1997 in Kyoto, Japan and entered into force on 16 February 2005. As of October 2009, 184 states have signed and ratified the protocol.

The Kyoto Protocol

The IPCC has identified 6 greenhouse gases

Symbol Name Common Sources

CO2 Carbon Dioxide Fossil fuel combustion, forest clearing, cement production, etc.

CH4 Methane Landfills, production and distribution of natural gas & petroleum, fermentation from the digestive system of livestock, rice cultivation, fossil fuel combustion, etc.

N2O Nitrous Oxide Fossil fuel combustion, fertilizers, nylon production, manure, etc.

HFC's Hydrofluorocarbons Refrigeration gases, aluminum smelting, semiconductor manufacturing, etc.

PFC's Perfluorocarbons Aluminum production, semiconductor industry, etc.

SF6 Sulfur Hexafluoride Electrical transmissions and distribution systems, circuit breakers, magnesium production, etc.

Intergovernmental Panel on Climate Change The Intergovernmental Panel

on Climate Change (IPCC) is a scientific intergovernmental

body first established in 1988 by two United Nations

organizations, the World Meteorological Organization

(WMO) and the United Nations Environment

Programme (UNEP), and later endorsed by the United

Nations General Assembly through Resolution 43/53

Green House Gasses

Where are we as a planet

Human Activity Global Warming

Global Warming Climate Change

Accelerated warming though secondary impacts & feedback loops

If the weather engine that drives our ecosystems collapses we reach tipping point

We are rapidly reaching a tipping point!

Take Action?Do Humans Compound

Climate Change?

We don’t think we do!

We think We Do!

YESNO

CostUnrecoverable GlobalEconomic Depression

Global Catastrophes :Political

EnvironmentalEconomic

Public HealthSocial

Cost

Skeptic? – Take a Risk Management Approach!

NO

Measurement of CO2e

CO2e

What is a carbon footprint –

definition

A carbon footprint is defined as:• The total amount of greenhouse gases produced to directly

and indirectly support human activities, usually expressed in equivalent tons of carbon dioxide (CO2e).

CO2 Equivalent (CO2e) is the concentration of CO2 that would cause the same level of radioactive forcing as a given type and concentration of greenhouse gas

Calculating CO2e

Values for CH4 and N2O are presented as CO2 equivalents (CO2e) using Global Warming Potential (GWP) factors*, consistent with reporting under the Kyoto Protocol and the second assessment report of the Intergovernmental Panel on Climate Change (IPCC).

Combustion produces emissions

CO – carbon monoxide

CO2 – carbon dioxide

CH4 – methane

N2O – nitrous oxide

Measured in Kg Equivalent CO2 (CO2e) emitted

per liter of fuel combusted1 liter of petrol combusted = 2.3 Kg CO2 e

• Petrol Engine

fuel type unit CO2e emitted per unit 

Petrol 1 litre  2.31 kg 

Diesel  1 litre  2.67 kg 

CO2e for common fuels in common measures

*

Emission Scopes

Understanding Scope in emissions reporting

WRI (World Resource Institute) reporting guidelines classify business activities that generate emissions according to a “Scope” association as follows:

Scope 1 emissions are those directly occurring from sources that are owned or controlled by the business, including on-site stationary combustion of fossil fuels; mobile combustion of fossil fuels by company owned / controlled vehicles and “fugitive” emissions. Fugitive emissions result from intentional or unintentional release of GHG’s (e.g. leakage of HFCs from refrigeration and / or air conditioning equipment)

The World Resources Institute (WRI) is an environmental

think tank founded in 1982 based in Washington, D.C.

Understanding Scope in emissions reporting

Scope 2 emissions are indirect emissions generated in the production of electricity consumed by the business

Scope 3 emissions are all the other indirect emissions that are generated as a consequence of the activities of the business, but occur from sources not owned or controlled by the company (e.g. commuting, air travel, waste disposal, water usage, etc)

Emissions Scopes: GHG Protocol

Courtesy of Barloworld Logistics

Measure – Emissions footprint analysis

• Energy use assessments* – based on energy consumption data (electricity, LPG, Diesel, Petrol)

• GHG audits** – based on GHG protocol

• * Scope 1 and 2 emissions factors only• ** Scope 1, 2 and 3 emissions factors

New standard in Scope 3 calculations: GHG Protocol

Courtesy of Barloworld Logistics

Impact on Trucking

EXECUTIVE SUMMARY

The National Treasury of the Republic of South Africa has recognized that South Africa, as one of the top twenty CO2 emitters in the world, will need to take positive steps to reduce its greenhouse gas emissions, whilst still ensuring economic growth, increased employment and poverty reduction. As part of this process the National Treasury released a discussion paper for public comment in December 2010 on the carbon tax option to reduce greenhouse gases.

RESEARCH REPORT TOTHE ROAD FREIGHT ASSOCIATION

… This document is a response to the Road Freight Association’s requirement to investigate the impact of carbon taxes on the freight logistics sector and determine some of the potential effects of this on consumers.

…The effect as a percentage of GDP in 2009 terms. At a carbon tax rate of R75 per ton the carbon tax is likely to be in the region of 1,4% of GDP and at a rate of R250 per ton it would comprise approximately 4,6% of GDP.

75.00

Litres Per 100 kms

Kms per Litre

Kg CO2

per KmTax Value

RandsKg CO2 per

10 KmTax Value

RandsKg CO2 per

100 Kms Tax Value

RandsKg CO2 per 1000 Km

Tax Value Rands

45 2.22 1.199 0.09 11.988 0.90 119.88 8.99 1198.8 89.9146 2.17 1.225 0.09 12.254 0.92 122.54 9.19 1225.4 91.9147 2.13 1.252 0.09 12.521 0.94 125.21 9.39 1252.1 93.9148 2.08 1.279 0.10 12.787 0.96 127.87 9.59 1278.7 95.9049 2.04 1.305 0.10 13.054 0.98 130.54 9.79 1305.4 97.9050 2.00 1.332 0.10 13.320 1.00 133.20 9.99 1332.0 99.9051 1.96 1.359 0.10 13.586 1.02 135.86 10.19 1358.6 101.9052 1.92 1.385 0.10 13.853 1.04 138.53 10.39 1385.3 103.9053 1.89 1.412 0.11 14.119 1.06 141.19 10.59 1411.9 105.8954 1.85 1.439 0.11 14.386 1.08 143.86 10.79 1438.6 107.8955 1.82 1.465 0.11 14.652 1.10 146.52 10.99 1465.2 109.8956 1.79 1.492 0.11 14.918 1.12 149.18 11.19 1491.8 111.8957 1.75 1.518 0.11 15.185 1.14 151.85 11.39 1518.5 113.8958 1.72 1.545 0.12 15.451 1.16 154.51 11.59 1545.1 115.8859 1.69 1.572 0.12 15.718 1.18 157.18 11.79 1571.8 117.8860 1.67 1.598 0.12 15.984 1.20 159.84 11.99 1598.4 119.88

Fuel Consumption

Carbon Tax Per Ton - Rands (insert)

Equivalent Carbon Dioxide Emission and Tax Value

Calculation of Applicable Carbon Tax Based on Fuel Consumption

Courtesy of Jim Campbell

The two main economic policy instruments available for putting a price on carbon and curbing GHG emissions are carbon taxation and emissions trading schemes. The carbon tax seeks to reduce emissions through the price mechanism directly, while emissions trading schemes establishes targets for specific levels of emissions through the trade in allowances.

Average Increases for Petrol and Diesel at 2009 average Gauteng prices

2009 Average price in cents

Carbon tax at R75/ton

Carbon tax at R165/ton

Carbon tax at R250/ton

Petrol Retail 739.9 2.2% 4.6% 7.0% Diesel Wholesale 664.5 2.4% 5.1% 7.8% Diesel Retail 717.87 2.2% 4.7% 7.2%

Industry group CO2 emissions and tax based on the various tax scenarios as a percentage of transport cost

Industry Group Total CO2 tax @ R75 per ton

(in millions)

Total CO2 tax @ R165

per ton (in millions)

Total CO2 tax @ R250 per

ton (in millions)

Automotive 0.01% 0.02% 0.03% Chemicals 0.07% 0.16% 0.25% Construction 0.10% 0.23% 0.34% Energy 0.25% 0.54% 0.82% FMCG 0.26% 0.58% 0.87% Fruit 0.03% 0.06% 0.09% Grain 0.03% 0.08% 0.12% Metal industries 0.14% 0.32% 0.48% Other agriculture 0.09% 0.20% 0.31% Other manufactured products

0.10% 0.22% 0.34%

Other mining 0.06% 0.14% 0.21% Grand Total 1.16% 2.55% 3.86%

Source: CSCM calculations

So What Can Be Done

ULS grade diesel = 2,3% of total annual diesel salesthe cost to the South African oil refining industry to

upgrade … , is estimated to be between R20 billion and R40 billion the full cost to be carried by the oil industry without any major returns in adjusted fuel price margins.

“Clean” Diesel Fuel South African Availability

Courtesy of Jim Campbell

An after market product added to fuel claimed to enhance the performance of the fuel and so improve the consumption

Which are the solutions that deliver the nett financial benefit???

Fuel management solutions are available, the approach is holistic and requires a management focus

Fuel Additives

Liquefied Petroleum GasDiesel/LPG mixtures100% bio-mass based fuel and Bio diesel mixtures, Pure methane, Compressed natural gas (CNG) Liquefied

Natural Gas (LNG)Methane /diesel mixturesHybrid power units, a combination of fossil fuel and electrical

power.Pure electrical using on-board electrical storage.Hydrogen fuel cells

Alternative Fuel and or Energy Sources

Courtesy of Jim Campbell

For an initial installed cost of around R100 000, there will be savings in CO2 emissions of up to 15%, and based on the current price of LPG for automotive use, an anticipated reduction in combined fuel costs of between 25 – 30% compared to an engine fuelled by diesel only.

Diesel/LPG mixtures

Courtesy of Jim Campbell

There are a number of busses currently operating in Europe and the US with hydrogen fuel, carried in storage vessels located on the roof of the vehicle in compressed gas form at pressures of up to 34 mega Pascals (5000 psi). As with electrically powered buses and the restricted area of operation, and the space required for the hydrogen storage vessels, this power source is not currently suitable for medium and long distance vehicles.

Hydrogen Fuelled Busses

Courtesy of Jim Campbell

Improved Vehicle Routing Vehicle technology and efficiency

vehicles combinations aerodynamics can account for up to 50% of fuel consumption (especially at cruising/trunking speeds)

equip the vehicle and trailer/s with fairings to ease the flow of air around the vehicle

Performance Based Standards (PBS) Vehicles From a Paper by Paul Nordengen The overall benefit in terms of the environment is to allow greater

loads to be carried, in greater safety to other road users, for a given engine capacity and power, with a minimal increase in fuel consumption and without additional damage to the road infrastructure

Improving transport efficiency

Courtesy of Jim Campbell

What ever we do, we can’t do NOTHING

Thank You