Carbon footprint – an introduction
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Concerted action towards an imminent large-scale greening of the economy
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Parikshit Shrivastava
Debates on the appropriate use of Carbon Footprints are spreading through society like rings in water. The idea that is put forward is that a carbon footprint is what has been left behind as a result of an organisation’s activities. In a landmark paper published this year titled “A Definition of ‘Carbon Footprint’,” Thomas Wiedmann and Jan Minx state that while the term ‘carbon footprint’ originates in the language of ‘ecological footprint’, it is a measure of the exclusive total amount of carbon dioxide emissions that is directly and indirectly caused by an activity or is accumulated over the life stages of a product. The data which calculates the carbon footprint needs to be relevant, complete, consistent, transparent, and accurate.
On the basis of the level of control which an organisation has over the emissions, the greenhouse gas (GHG) emissions can be classified into three main types, namely, the Direct or Scope I emissions (combustion of fuels; most common, also known as the primary carbon footprint), the Electricity or Scope II emissions (not directly controlled; contributes to 17 per cent of the global GHG emissions), and the Indirect emissions from products and services purchased or Scope III emissions (also known as secondary carbon footprint). Scope I and Scope II emissions must be reported while Scope III emission is optional. Also, when making a corporate-wide inventory, small emission-causing activities are discovered. Hence, producing a full carbon footprint covering all the three types of emissions can be quite a complex task.
Appropriate method
There are numerous approaches for the calculation of the carbon footprint of an organisation. The reasons for needing a carbon footprint will determine which approach is the most appropriate. There is a Basic Method (covers direct emissions and emissions from electricity); the process based life cycle assessments or the PALCA Method (bottom-up approach, only on-site, most first-order impacts); the Environmental Input-Output or the EIO Method (top-down approach, provides a picture of all economic activities); and, the Hybrid Method (combines the strength of both methods). Detailed calculations of carbon footprints are provided in the GHG Protocol’s Corporate Accounting and Reporting Standard (revised edition); the ISO 14064; and the PAS 2050 standard of the British Standards Institution (BSI).
The smaller the carbon footprint, the more environment-friendly is the organisation. Once we have accurately determined the current carbon footprint, we will need to identify the hotspots of energy consumption, optimise energy efficiency, and identify solutions to neutralise the CO2 emissions that cannot be reduced by any energy saving measures. That being said, relying entirely on one indicator can sometimes be misleading. One example could be biofuels, for which a low carbon footprint could give the impression of a truly eco-friendly product, despite its negative land use impacts, ultimately increasing the pressure on rainforests and other rich habitats.
A study by KPMG India, titled “Climate Change: Is India Inc. Prepared?” published this year states that the Indian businesses regard climate change as an important business issue.
Creating awareness
An encouraging 88 per cent of the respondents feel that it is important to evaluate their carbon footprint for making investment decisions. However there is low awareness as to why it is important and how it can affect business. The recently announced National Action Plan on Climate Change (NAPCC-2008) and the launch of India’s first carbon footprint calculator — CARBONyatra.com — are steps in the right direction.
India’s development agenda focusses on the need for rapid economic growth as an essential pre-condition to poverty eradication and improved standards of living. According to the NAPCC-2008, India aims to limit its per capita GHG emissions below that of developed countries — is this possible with the economy growing at an annual average growth rate of eight per cent? Only time will tell, but the country will definitely need to focus attention on adaptive capacity building, identify and start implementing adaptation measures, and follow a low carbon development pathway.
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