Supporting the Low Carbon Economy

Building trust in the low carbon economy

2 Building trust in the low carbon economy

DNV Global responseA 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 com-petitive differentiation are emerging, energy and other input costs are rising, new risks from climate change are increasing and carbon markets are evolving.

Building trust in the low carbon economy 3

Building trust in the low carbon economyBusinesses recognise the climate change issue as a seri-ous societal problem. To take their part in the solution, they need to act in a responsible and responsive man-ner implying:n to be seen as doing what they reasonably can to com-

bat climate change,n to be innovative as their business models will be chal-

lenged,n to anticipate the regulatory risks, directly or indirectly,n to respond 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, tech-nological 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 pres-ence providing local and global capabilities to deal with risk, transparency and trust issues where they occur.

Carbon strategy and policy servicesOur carbon strategy and policy services gives compa-nies a competitive advantage by providing economi-cally and environmentally sound solutions to evolving climate change policy, both in GHG regulated and non-regulated sectors.

Energy and carbon management

Carbon Market Advisory

Carbon credit validation and verification

Training

DNV Global response

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Carbon strategy and policy services


Carbon strategy and policy services

PurposeClimate 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 serv-ices most appropriate to them. Although we do offer a standardised suite of products and services, includ-ing entry-level products and sophisticated decision-support tools, we specialise in designing customised solutions for various regulatory, voluntary and brand-ing needs.

BenefitsWe 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: n Assessing internal emissions reductions options n Implementing sophisticated positioning strategies

that allow rapid market entry in the future and enhanced competitive advantage

n Identifying external reduction, offset and portfolio opportunities and strategies

n Preparing strategy papers on climate policy and market developments; workshops and competence building

n Staffing internal corporate task forces relating to climate change policy

We also help develop strategies for international organisations, governments and private sector com-panies. This includes establishing and implementing regulatory frameworks, procedures and mechanisms.

For companies in both GHG (greenhouse gas) regulated and non-regulated sectors, carbon strategy and policy services include strategic risk assessment, risk manage-ment, positioning for competitive advantage and climate-friendly consumer product development. We bring global experience and expertise to our work with private sec-tor, public sector, and non-profit customers.


FeaturesOur 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 n Corporate climate risk and opportunity assessment n Getting companies positioned for competitive ad-

vantage n Climate change executive briefings n Developing carbon offset strategies n Developing climate neutral product strategiesn Strategic policy advisory and capacity building n Emissions trading system design n Government capacity building n Project based emissions trading

Our ExperienceIn 2009, our Climate change consultancy team was strengthened with several specialists, some previously related to TC+ES, a US-based leader in the field. This brings unparalleled global experience and expertise to DNV’s work with private sector, public sector and non-profit customers.

Our team has then accumulated a long list of “firsts” in the climate change field, like writing the first car-bon 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.


PurposeSuccessful reduction of climate change requires dra-matic changes in the way energy is produced, distrib-uted and used. Sound energy and carbon management is crucial in all branches of society to establish the neces-sary framework for the timely and effective implementa-tion of these vital changes throughout the energy chain.

BenefitsProper energy management provides a solid frame-work for realising the necessary changes to effectively improve energy performance of an organisation. In a

cycle of continuous improvement, the economical, en-vironmental and social feasibility of technical, organisa-tional 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 reduc-ing 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

Energy and carbon management

Energy use is the single largest source of greenhouse gas (GHG) emissions, making en-ergy management crucial for reversing global warming. Renewables and carbon capture and storage are likely solutions for the medium and long term. In the short term, how-ever, energy efficiency improvements are critical. DNV has developed and tested effec-tive services to support and drive these changes.


sustainability of your organisation, an aspect which is under increased scrutiny by stakeholders.

FeaturesThe 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 ‘plan-do-check-act’ – approach and relies on optimally combining technical, organisational and behavioural measures. For this purpose, a technical and a non-technical 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.

Based on this baseline, potential technical, organisa-tional and behavioural improvements are identified and

prioritised using a feasibility analysis that takes financial, environmental and social aspects into account. Depend-ing on the customer’s needs, assistance for the actual implementation of the selected improvements can also be included.

Once the selected improvements have been imple-mented, a new technical, organisational and behaviour-al 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 experienceTo 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.




Carbon market advisoryCarbon markets have the potential to dramatically reduce compliance costs in future carbon regimes – what carbon will cost is the trillion-dollar question facing govern-ments 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.

PurposeCarbon 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.

BenefitsMany decision makers see the future of climate policy as pivotal to influencing their future competitiveness, whether at the company or sector level. With the right information and tools for understanding and antici-pating carbon markets, government and corporate de-cision makers can make much more robust decisions across a range of business topics: n Assessing and quantifying future carbon risk n Making material capital investment decisions n Making strategic and R&D decisions n Determining corporate policy and legislative

positions n Assessing the advantages of early emissions

reductions n Protecting long-term corporate competitiveness

FeaturesDNV has developed a powerful suite of tools and asso-ciated services that provide customers with the ability to make more robust business decisions in the face of policy and market uncertainties. Waiting for these un-certainties to be resolved simply isn’t 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 forecastingDNV experts have been helping companies make bet-ter 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 mak-ing 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 experts have been helping companies evalu-ate mitigation projects, portfolios, and even sectors for more than 20 years. At the project level we have developed sophisticated Monte Carlo based project as-sessment tools for clients’ use in evaluating project op-portunities. At the portfolio level we have developed decision-support tools that allow a comprehensive GHG project portfolio to be evaluated against alterna-tive risks, and expressed through balance sheets and profit and loss statements. At the sector level, our glo-bal market assessments (GMAs) provide a deep dive into specific offset sectors, providing a roadmap for entering the carbon market through those sectors.

Project development support DNV 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 how they are likely to fare in alternative carbon markets. And through our global market assessments, we can help actually identify specific project opportunities.

Our experienceOur 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 develop-ment of corporate strategies that effectively manage these risks and opportunities in both voluntary and regulatory markets.



Carbon credit validation and verificationCarbon credit validation and verification is a third party service related to the com-pliance market, regulating emission allowances and offsets according to the Kyoto Protocol’s flexible mechanisms , the European Directive on Emissions Trading (EU ETS) or voluntary emission reductions.


Carbon credit validation and verification

Emissions tradingEmissions trading is a Kyoto Protocol mechanism es-tablished to cost effectively reduce emissions and meet Kyoto Protocol commitments.

Joint implementation schemeThe joint implementation scheme encourages and re-wards emission reduction initiatives between industr-ialised 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 industr-ialised countries to reduce emissions cost-effectively through cooperative efforts.

The Clean Development Mechanism (CDM)The Clean Development Mechanism (CDM) allows you to reduce greenhouse gas emissions in a cost-efficient manner. Your active contribution to sustain-able development in a developing country is awarded with emission credits that can fulfil your own reduc-tion commitments or be traded in the greenhouse gas market.

Voluntary emission reductionVoluntary emission reduction actions allow you to take advantage of voluntary efforts to reduce greenhouse gas emissions by following certain regulations and standards.


TrainingWe provides several courses that will give you the overview, knowledge and tools needed in order to reduce your company's environmental footprints. Join our masterclasses to get a broad overview and deep insight, or choose the individual courses to fill a specific knowledge gap.

Offset project development & implementation – masterclassDNV’s new masterclass programme combines several competence modules in order to provide project de-velopers with the best skills for efficient management of carbon offset projects.

Carbon management - masterclassThe Carbon management masterclass provides comprehensive insight on important components of a company’s carbon strategy, as well as tools and proce-dures on how to reduce the company’s environmental footprint.

Carbon market fundamentalsIn a world of too much and misleading information about climate change issues, it can be difficult to sepa-rate the facts from the myths, and to decide what to do. This course gives you the basic knowledge about climate change, and an overview of the opportunities in the regulated and voluntary carbon markets.

Developing carbon offset projectsThe rules and regulations for the Clean Development Mechanism (CDM) and Joint Implementation (JI) are fast changing. This also affects voluntary offset schemes like the Voluntary Carbon Standard (VCS) and the Gold Standard. It is a challenge to stay on top of the latest developments. This course enables you to understand the latest guidance and update your skills in an efficient way.

Monitoring carbon assetsMany Clean Development Mechanism (CDM), Joint Implementation (JI) and carbon offset projects fail to realise the full potential for carbon revenue, due to incorrect monitoring and reporting of emission reductions. This course provides the knowledge, skills and tools needed for the implementation of efficient emission reduction monitoring.


Building a corporate greenhouse gas inventoryBusinesses today are under increasing pressure from consumers, shareholders and the media to report their contribution to climate change. This course pro-vides participants with the necessary skills to ensure compliance of their corporate greenhouse gas inven-tory with applicable standards.

Energy productivity managementAlthough energy productivity has been on the agenda for decades, now more than ever it is crucial for climate change abatement, balanced energy policy development, and optimised business performance. Through key background and practical guidelines, this new course enables participants to capitalise on the full potential of energy productivity improvement.

Supply chain carbon managementConsumers are increasingly aware and interested in the carbon footprint of the products they buy, which poses important challenges to consumer goods

organisations. Successful efforts to reduce the carbon footprint of products require the adoption of in-novative, cost-effective and responsible supply chain management practices.

Carbon portfolio risk managementSteering a carbon offset project all the way from project initiation through to the issuance of carbon credits can be a long and rocky journey. Managing a project portfolio in line with an investor’s business objectives requires an understanding of the unique risk profile produced by the different carbon offset trading schemes.

ISO 14001 Environmental Management SystemDNV provides three ISO 14001 courses, the Founda-tion course, the Internal Auditor course and the Lead Auditor course.

Det Norske Veritas ASNO-1322 Høvik, [email protected]

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Supporting the Low Carbon Economy