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IFC GHG Portfolio Footprinting
Shilpa Patel
Chief, Climate ChangeEnvironment and Social Development Department
14 July 2009
Background and Overview
• The World Bank Group made a public commitment to measure
and report on the GHG impact of its activities
The IFC Management Group endorsed a proposal for implementation
starting February 1, 2009
• IFC GHG footprint information will be used in the first instance
to form a better appreciation of the GHG implications of IFC’s
activities
The information collected may also be reported on an aggregate basis in
the annual report and other relevant WBG publications.
• IFC also intends to use the measurement of its portfolio GHG
emissions as additional analysis that can be used for its internal
decision and business risk analysis
2
Why are we doing this?
The private sector is more and more focused on GHG emissions
and a carbon constrained future
We want to be ready
3
IFC and The World Bank
IFC and The World Bank differ in many ways:
Typology of projects
• Projects are smaller
• Boundaries are easier to define
• Good data is usually available
• Many companies already perform GHG calculations
• Current available methodologies for project based
approaches
IFC private sector approach is not adequate for World
Bank projects
4
The Carbon Emissions Estimator Tool (CEET)
• The IFC Climate Change Team developed the CEET to
support investment departments
• Based on the Agence Française de Développement’s
(AFD) carbon tool
• Uses IPCC and GHG Protocol emission factors and
calculations
• Modified by IFC to reflect GHG Protocol definitions and
IFC sectoral needs
• Implemented since February 1, 2009
Required for any real sector project with approved PDSER
5
Scopes and Boundaries
• WBCSD/WRI GHG Protocol: A Corporate Accounting
and Reporting Standard
• Scopes Scope 1: Direct
Scope 2: Indirect (purchased power, steam,…)
Scope 3: can be estimated but are not required
• Boundaries Real sector
“Use of funds”
6
Status Report
• Currently collecting GHG emissions data for all real sector
projects approved since 1 February 2009
Analysis is forward moving, no backfill
• Over the next few years, baseline GHG portfolio emissions will be
established
• Also developing methodologies to evaluate GHG emissions for
complex projects:
Financial intermediaries
Corporate loans with an unspecified use of funds
• Other IFC sectors are developing their own tools
IFC forestry tool developed in collaboration with National
Council for Air and Stream Improvement, Inc. (NSCASI)
General Manufacturing and Services (GMS) built GHG
calculation tools for glass and cement industries
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Lessons Learned
Most feedback is positive
GHG data required for calculations available in project
documentation, then complemented as necessary during
appraisal
Best to keep accounting separate from analysis
GHG Portfolio Footprinting is not too
complex nor is it unnecessary
All GHG analysis is a work in progress,
the more we learn the better our method
Getting
started was
the
greatest
challenge!
9
Some Reported Problems
Most common concerns have been:
Makes some clients uncomfortable
Excessive for small projects
Not applicable to all investments
Does not capture net carbon impacts of a project
10
GHG Portfolio Measurement Benefits
Standardization of internal GHG calculations
Capacity building,
Investment teams learning carbon accounting and
common sectoral emission sources
Better overall understanding of IFC projects, leading to:
Potential carbon credit opportunities
Identification low-cost mitigation opportunities
Identification of energy efficiency opportunities
In the long run, a greener portfolio
11
Other Benefits
In addition to portfolio footprinting:
Cleaner Production team use the CEET project evaluations
EE projects use the CEET to measure the impacts comparing
various project scenarios
Regional use for strategies and reports
The Carbon Finance team uses CEET as a reference tool
Internal shadow cost analysis
Other MDBs and banks have asked us to share the CEET
with them
12
Thank you!
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