GHG Reduction Strategies

Evolving a reduction strategy.

Evolving a carbon footprint into a GHG reduction strategy will involve the following steps:

Analyzing the footprint
Listing the potential reduction projects. This is typically a list of potential technologies or actions.
Doing first cuts at defining costs and anticipated GHG reductions
Identify areas where further investigation is necessary. These can be considered as GHG Project Evaluations
Schedule reduction projects over time to produce year by year GHG reduction program identifying Implementation Barriers (if any)
Revisit at least annually, or as shifts in available technology and markets occur.

In many organizations, large projects such as a highly visible solar array are what are in people's minds when the subject of reduction strategies is discussed. In practice however, these projects, although they can generate a lot of excitement and kick start initiatives rarely offer the lowest cost GHG reductions. What works for any organization will clearly depend on the type of organization and how advanced it is as far as GHG reductions.

Implementation Barriers

Barriers in implementing GHG reduction projects are typically:

Capital constraints – These can be lessened by Monetization strategies and bringing GHG reductions into corporate messaging.
Education – the implementation of some GHG reductions, sometimes ones with low marginal implementation cost can be delayed due to a lack of understanding among employees. Examples include sleep mode for computers, etc.
Policy – Some potentially low hanging fruit – teleworking, for example, can meet understandable internal policy barriers, at least in the short term.

Monetization

Monetization is term given to process of converting or establishing something into legal tender. It has been used to cover the use of Renewable Energy Credits and Carbon Credits in GHG reduction programs. In practice, many GHG reduction projects need far more financial help than these to make economic sense. As such, the term Monetization has been stretched to include finding any and all financial tail winds that can help a project's viability. In the US at least, the last 18 months has seen an explosion in both the availability and the potential complexity of such benefits which include:

Carbon Credits
Renewable Energy Credits
American Recovery and Reinvestment Act (ARRA) provisions
Federal and State incentives including
Capital Tax Credits
Production Tax Credits
Property Tax allowances
Accelerated Depreciation
Using a third party to own the asset, and use benefits unavailable to you
Grants and Endowments

Even further removed from the strict definition of Monetization, but still providing necessary financial help – understanding and incorporating the natural replacement cycle of capital goods and appliances and building this into a GHG reduction strategy does two things – firstly it means that the financial justification is only for the increment in cost for a more efficient unit, and secondly it is likely standards of efficiency will have improved over time reducing price premiums.

Over the last 2 years, Axiom Methods has evaluated numerous energy and offset projects from a monetization perspective and helped organizations bring projects to life.