Greenhouse Gas (GHG) Footprinting Strategy

July 2008

Description

The New Zealand Greenhouse Gas (GHG) Footprinting Strategy for the Land-Based Primary Sectors was an initiative developed in partnership with the primary sector at the end of 2007.

The strategy seeks to position New Zealand’s land-based primary sectors to respond to significant and increasing pressure by key export markets for information on the GHG-intensity for primary products.

It also responds to a growing need in New Zealand for:

  • more proactive involvement in international efforts determining international ‘rules’ for measuring GHG embodied in a product and in any subsequent labeling regimes;
  • a means by which primary producers can measure and validate their GHG footprints;
  • addressing gaps in current research and information on GHG emissions;
  • identifying weaknesses and threats regarding New Zealand’s GHG product and production profiles; and
  • capitalising on business opportunities for low carbon-intensity products.

Background

Changes in consumer and retailer demands in some markets are driving substantial changes in the value chains that New Zealand’s primary industries participate in. There is an increasing expectation that products have sustainability credentials, and that these can be verified.

Over the last 18 months there has been growing international interest in GHG footprinting of products and services. Governments are also becoming increasingly involved, for example, the UK Government’s work on developing a standardised methodology for measuring embodied GHGs in products and services. The International Standards organisation has also recently announced its intention to develop an international standard for GHG footprinting as well as the World Resources Institute who developed the GHG Protocol – the most widely used standard for corporate accounting of GHG emissions.

GHG footprinting (also referred to as carbon footprinting)

GHG footprinting uses a life-cycle analysis approach to determine the total emissions of greenhouse gases (in carbon equivalents) across the entire life-cycle of a product or service. It is a more valid comparison then just food miles (or distance travelled) because it includes all the inputs and outputs of GHGs in the production, supply, use and disposal of a product.

Goal and outcomes of the NZ Strategy for the Land-Based Primary Sectors

The goal for the New Zealand GHG Footprinting Strategy for the Land-Based Primary Sectors is:

New Zealand primary industries can operate in markets with credibility and where necessary use internationally recognised, transparent and validated GHG footprinting methodologies (‘rules’).

There are three overall outcomes for the strategy:

  • international rules to verify GHG footprinting are fair and transparent;
  • rules are applied fairly and without discrimination internationally; and
  • New Zealand primary producers participate in GHG measurement and enhance their GHG performance.

Six additional intermediate outcomes support these:

  • methodologies for GHG footprinting of New Zealand primary products are developed;
  • companies can access information and tools to improve GHG product performance;
  • New Zealand producers can do the calculations, or have them done by a third party at reasonable cost;
  • transaction costs for multiple requirements are minimised;
  • New Zealand engages effectively in the development of international standards; and
  • a process exists for the robust verification of compliance with standards.

Potential benefits of GHG footprinting

  • Developing a broader understanding of the environmental impacts, risks and liabilities associated with a product, process or service;
  • identifying key areas for product and process improvements;
  • developing indicators for the potential environmental impacts of a product or service;
  • identifying potential efficiency gains;
  • reducing GHG emissions and demonstrating commitment to tackling climate change;
  • maintaining and/or enhancing market access; and
  • improving relationships with suppliers and customers.

Initiatives

The Strategy includes work in two main areas:

International engagement

International engagement will be aimed at positioning New Zealand at the forefront of international work around GHG footprinting of primary products by:

  • ensuring that New Zealand is an influential leader in developing robust, transparent and pragmatic GHG footprinting methodologies for primary products;
  • contributing world-class analysis and research input into the development of overarching international standards for GHG footprinting;
  • telling a wider story around New Zealand’s desire to reduce GHG emissions and backing this up with case studies that demonstrate robust practices of measuring, managing and mitigating GHG emissions across the primary sector supply chain; and
  • advocating for collaboration across countries and markets to ensure consistent and fair approaches are taken on GHG footprinting issues.

Sector-led initiatives to establish GHG footprints for primary sector supply chains

The development of sector-specific approaches (‘sector methodologies’) to GHG footprinting are activities that work with primary sector ‘early adopters’ to develop comprehensive methodologies for measuring GHG emissions across the supply chain of a primary product.

The methodology developed for a specific industry (e.g. kiwifruit) can then be used to leverage learning to the wider sector (e.g. horticulture). This approach aims to facilitate sectors to measure, manage and (if desired) mitigate GHG emissions across the supply chain.

The successful projects for the 2007/08 funding round were: Dairy, Lamb, Kiwifruit, Wine, Forestry, Onions and Berryfruit.

Sector Project leader Other project members
Berry-fruit Landcare Research TBC
Dairy Fonterra AgResearch, University of New South Wales, Scion
Forestry Scion Landcare Research, Wood Processors Association; Nelson Forests, Tenon, Laminex, Earnslaw Bioenergy
Kiwifruit Landcare Research Zespri, HortResearch, AgriLink NZ Ltd, Massey University
Lamb AgResearch Meat Industry Association, Balance AgriNutrients, Landcorp, Meat & Wool New Zealand, Institute of Environmental Science and Research Limited
Onions AgriLink TBC
Wine Landcare Research New Zealand Winegrowers, HortResearch

The following criteria apply to all projects:

  • any methodology developed has to be a practical and feasible option for New Zealand producers to use to calculate a GHG footprint for primary products;
  • the development of a methodology must be industry/sector led in conjunction with research providers. Industry must contribute financially to the development of the methodology;
  • any methodology must be aligned with ISO GHG emissions inventory and reporting standards and New Zealand’s national GHG emission inventory and be consistent with international best-practice;
  • the Crown owns intellectual property, copyright or merchandising rights in or arising from such work. The methodology developed will be freely available to New Zealand primary industries; and
  • options and guidance for GHG footprinting must be developed for the sector, including industry strategies for uptake, promotion and leveraging of learning to the wider primary sector.

The next round of funding of $500,000 will be available in late July 2008 for new sectors to develop GHG footprinting expertise. Applications for this funding close 3pm, 19 September 2008.

International Standards

Three of the most influential processes currently underway in the development of international standards for the GHG footprinting of products and services are:

  • UK DEFRA/British Standards/Carbon Trust draft standard (PAS 2050);
  • an International Standards Organisation (ISO) proposal to develop an international standard for GHG footprinting and communication; and
  • a World Resources Institute (WRI) proposal to establish an international standard for product accounting of GHG emissions.

Publicly Available Specification on GHG Footprinting for Products and Services (PAS 2050)

In April 2008, MAF coordinated a New Zealand primary sector view on the second draft of the Publicly Available Specification on GHG Footprinting for Products and Services (PAS 2050) being developed by British Standards, DEFRA and the Carbon Trust.

Update

International Standards Organisation (ISO)

Earlier this year, ISO announced its intention to develop an international standard on GHG footprinting of products and services and an accompanying communication standard.

New Zealand secured an opportunity to present to the relevant ISO Committee on the lessons learnt under the GHG Footprinting Strategy. MAF sent one official and funded a Standards New Zealand representative to attend the most recent meeting, in Bogota, Colombia in June 2008.

Officials are currently evaluating options for future engagement in this forum. Information on this work will be posted shortly.

World Resources Institute (WRI)

The other main international standard-maker in GHG footprinting, the World Resources Institute (WRI) has also recently announced its intention to develop a product level GHG footprint standard. The WRI (and the World Business Council for Sustainable Development) developed the Greenhouse Gas Protocol (GHG Protocol) which is the most widely used international accounting tool to measure and manage greenhouse gas emissions at firm level. It is therefore likely that a WRI standard for product accounting would have widespread international uptake.

Officials are monitoring this development carefully. For more information see:
http://www.ghgprotocol.org/standards/product-and-supply-chain-standard

Government investment

Initiative 2007/08
$million		 2008/09
$million		 2009/10
$million		 2010/11
$million		 2011/12
$million		 Total to
2012
$million		 From 2013
annually
$million
Greenhouse-Gas
Footprinting Strategy		 1.469 1.250 1.250 1.100 1.200 5.869 1.150

Links to other government initiatives

The programme is linked to other initiatives, including:

  • initiatives within the Sustainable Land Management and Climate Change Plan of Action;
  • the Government’s Eco-verification Initiative, one of six sustainability initiatives;
  • the Government’s ongoing response to “food miles” and sustainable exporting issues.

New Zealand Workshop on GHG Footprinting for the Primary Sectors

MAF is convening a one-day workshop for the primary industry on its GHG Footprinting Strategy and associated sector methodologies (tentatively set for 8 September 2008). This will bring together all those involved in the current GHG footprint projects and other stakeholders in the primary sector to:

  • share information from current projects, including the risks, opportunities and future strategies around GHG footprinting for the NZ primary sector;
  • discuss next steps from a sector perspective, including opportunities to work together;
  • provide a chance for industries not yet undertaking GHG footprint work to learn from others and assess the potential for undertaking similar projects themselves; and
  • provide a market intelligence update on related sustainability issues in international markets.

More information on this workshop will be posted soon.

Wider focus on sustainability

The strategy also provides a platform for assessing other environmental information needs. MAF are investigating pilot projects to look at how our primary sectors might respond to these growing demands and what work might have already been done.

Contact for Enquiries

Sustainable Land Management and Climate Change
MAF
Pastoral House
25 The Terrace
PO Box 2526, Wellington
Tel: 0800 CLIMATE (254 628)
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