Not all carbon calculators are created equal…in fact, if you provide the same starting information to 10 different calculators, you will likely get ten totally different answers that could vary by several orders of magnitude. Does that mean that each of them is wrong? Not necessarily… part of the issue with calculating carbon emissions today comes from what assumptions are made and what standards are used in the calculations. There is no single “right” carbon calculation factor today. And since there is a variety of conversion protocols to choose from – TRACI, WRI/WBCSD, Climate Registry etc – it is not currently possible to get a definitive carbon number.
So, what are you to do? Gil Friend has collected many online calculators today here. It is a very good list if you are looking for what is available today and also takes advantage of social media and asks you to rank the calculators you try. I would recommend the free online calculators only to give you an idea of what your carbon footprint may be. If you really are interested in developing a baseline and report on your carbon, you need to understand more the underlying methodology of the conversion factors and choose those that are more reflective of your regional location and/or product type. And generally those are not free today. Several good sources are in the links section of my site where you can find out more about these carbon calculators.
Carbon Carbon, software
A recent summary in Environmental Leader indicated that by 2012 the cost of carbon, per the proposed budget and cap-and-trade scheme would be $13.70, resulting in a 6 to 7% increase in fuel and energy costs. This is based upon a US-only Cap and not a US-Canada-Mexico Carbon Cap which is an alternative possibility. It also doesn’t include efforts that may be in place for renewable/lower carbon producing energy and fuel alternatives.
Regardless of the details, it certainly looks imminent that some form of the long proposed cap-and-trade carbon scheme will be in effect soon. Though the potential costs may seem to be something that the current economy cannot support, I would tend to disagree.
A known carbon cap with a well defined financial impact on organizations will help to spur additional innovation in how energy is sourced and managed. It will promote more carbon management and accounting and a better, in depth understanding of many of the inefficiencies that exist today in businesses and organizations. By knowing and correcting these areas of waste, a net savings to business will be realized. In addition, there is an opportunity for leaders that implement carbon management solutions into their processes to also participate in carbon trading, generating carbon credits of a known value which can be sold on the open market and added directly to the bottom line.
Carbon Cap and Trade, Carbon Cap
In 2008, a survey of corporate executives published in McKinsey Quarterly [1] indicated that though climate change is considered important and awareness is high, relatively little is being done in terms of building climate change mitigation, energy usage and emissions reduction into corporate decision-making or operational processes. Now, in 2009, there are indications that climate change, specifically the contribution from energy use, is being addressed by businesses in an overall attempt to reduce cost.
Carbon management, as a whole, is the process by which any company can develop and implement a corporate climate strategy. A typical carbon management structure includes the following principles: measurement of emissions, set emission objectives, emission avoidance and reduction, assessment of residual emission and offsetting. The ultimate object is to achieve financial sustainability whilst meeting carbon targets set by the organization. The key element of Carbon Management principles is to consistently identify the emission source and measure emission from your operation.
Value of Carbon Management
The goal of the principles is to assist organizations in making sound decisions around the reductions in GHGs. These principles can be applied to the decision making process with regards to economic, technological and societal considerations. Ultimately, the principles can be used to assist in developing the appropriate carbon management strategies where the environmental, financial and social benefits are maximized – often, the benefits for each of these will coincide.
- Reducing Input Costs – this is around the various energy, materials, water etc. that a business may use in the production of it’s goods or in the operation of it’s facilities. The goal is to identify where emissions are occurring and reduce them. Today, the success for many climate change programs is built mostly on this ability of the process to identify areas of inefficiencies or waste that can be reduced that lead to cost savings.
- Building Environmental Leadership – creating value for the corporation/facility/project as an environmental leader. Builds reputation for environmental stewardship
- Creating Market Opportunity – through external GHG policies and the reduction in emissions, businesses may create opportunity for direct revenue as a carbon credit provider in those countries where carbon trading/regulation is or will be occurring. Also creates customer loyalty for efforts at being more “green” through the GHG reductions and the ensuing environmental benefits of the products/services being provided.
- Reducing Business Risk – There are increasing costs to all businesses associated with fuels, energy and material procurement that the awareness of the GHG emissions and options for alternatives (Coal vs. Solar, plastic vs. cardboard, one level of recycled content vs. a higher or lower level). In addition, forthcoming carbon regulations will impact business so awareness of current emissions and reductions will allow for mitigation of compliance risks and costs.
[1] A McKinsey Global Survey: How companies think about climate change, McKinsey Quarterly, Feb 2008
Carbon Carbon