Transcript RTFO Carbon & Sustainability Verification workshop 05 December 2008 Aaron Berry Renewable Fuels Agency.

RTFO Carbon & Sustainability
Verification workshop
05 December 2008
Aaron Berry
Renewable Fuels Agency
Presentation outline
 RTFO C&S reporting verification
 Background & Objectives to Ernst & Young work
 Next Steps
Why Sustainability standards?
2006
2007
Carbon and sustainability reporting
 To distinguish between
bifouels
 Reporting as a first step
 Mandatory standards from
April 2010
 Carbon incentivisation?
C&S reporting overview
C&S reports must be supplied on all fuels for which RTFC’s are claimed
Monthly reports by fuel suppliers to RFA
Independent verification of reports & claims
Limited assurance to ISAE 3000
Annual targets for company performance
Company targets
2008-2009
2009-2010
2010-2011
Percentage of feedstock meeting the
‘Qualifying’ Environmental Standard
30%
50%
80%
GHG saving
40%
45%
50%
Data provision
50%
70%
90%
Independent 3rd party verification must be
undertaken annually in support of C&S claims
Process
 Annual not monthly
 Reporting company responsible for verifier statement
 Limited assurance (ISAE 3000): risk-based
 Results in verifier statement -> annual report
What data is verified and who needs to keep the evidence?
 All info in annual report is subject to verification
 COC records provide traceability to evidence
 Certificates of existing standards = proof of compliance
 Other claims (carbon, land use, etc) subject to verification
Chain of Custody & RTFO Mass balance
system: Units in = units out
+
_
+
C&S data
Oil
Oil
_
C&S data
Biodiesel
+
_
C&S data
B5
Rapeseed
Meal
Fossil
•Each legal owner of the product keeps C&S records of:
•Input & Output
•Monthly inventory
•Conversion factor
•Invoice or related doc is C&S data carrier
•Detailed guidance in Chapter 7
RTFO
admin.
Example – Chain of custody records
Input record rapeseed crusher
Order
Number
Transaction
date
Supplying Quantity
company (tonne)
Product
Product
Origin
Standard
Land use
Carbon
on 30 Nov intensity (g
2005
CO2e /
tonne)
22001
15-4-2008
F1
1,000 Rapeseed UK
LEAF
Cropland
949
22002
15-4-2008
F2
1,000 Rapeseed UK
LEAF
Cropland
987
22001
15-4-2008
F3
1,000 Rapeseed UK
-
Cropland
987
Output record rapeseed crusher
Order
Number
23001
23002
Transaction
date
20-4-2008
20-4-2008
Receiving
Company
B
B
Quantity
(tonne)
Product
400 RSO
400 RSO
Product
Origin
UK
UK
Standard
LEAF
-
Land use
Carbon
on 30 Nov intensity (g
2005
CO2e /
tonne)
Cropland
Cropland
2287
2287
Chain of Custody illustration:
Through the chain of custody records, the verifier
should be able to trace back to the part that generated
the data.
Chain of Custody: scope
 Each party in the biofuel supply chain needs to
put in place the administration necessary to
maintain the chain of custody (record keeping)
 Gap in the records: the Chain of Custody stops
at this point and no claims related to C&S data
can be made by parties further downstream
Good Practice
Involve verifier early
Liaise with supply chain to set up chain of custody
Produce data in a consistent manner
Document the system
Organise internal checks of data
Requests for additional guidance
Large number of C&S queries about verification:
- What kind of evidence is necessary?
- Can verifiers rely on other verifiers?
- Will there be a level playing field?
RFA held several meetings with suppliers & verifiers
Established need for guidance – commissioned E&Y
Objectives for E&Y work
To provide additional guidance for verifiers on
C&S verification to supplement the C&S TG.
Add a further level of detail to the current TG, not
to re-define the requirements.
To answer key questions.
Objectives for today
Opportunity to consider and challenge E&Y
thinking
Influence draft guidance before it’s published
To discuss burning questions
Next steps
RFA consulting on 2009/10 C&S TG shortly
Intend to include verification
Guidance will be updated ahead of April
[email protected]
Tel +44 (0) 207 944 8287
www.renewablefuelsagency.org
[email protected]