Integrating Greenhouse Gas Emissions Management Into Capital Projects Planning

Abstract

Abstract Issues of international interest, economics, energy technology and public perception drive the complexity of the climate change issue for businesses and industries. Since 2002, ChevronTexaco has compiled comprehensive annual emissions inventories of its worldwide operations and interests using the SANGEA™ system. At the same time, ChevronTexaco made a public commitment to integrate greenhouse gas emissions management into its business planning processes. This paper describes ChevronTexaco's process and tools for integrating greenhouse gas emissions management into the planning and review of new projects. The tools include a screening tool, to quickly and with minimal data estimate the potential impact of greenhouse gas emissions on a project's economics, and the more rigorous ChevronTexaco Projector, for detailed greenhouse gas and criteria pollutant emission projections. The tools also include a mitigation options planning tool and a tool for evaluating the greenhouse gas implications of potential mergers, acquisitions, and divestitures. Finally, a capital projects GHG evaluation flowchart provides guidance regarding when each tool should be applied, with the recommendations made appropriate according to the potential significance of greenhouse gas concerns for the specific project. The tools and flowchart are innovative applications in greenhouse gas emissions management. They allow capital project teams to quickly determine the magnitude of potential greenhouse gas concerns for their projects, and then tailor their analyses appropriately. This assures that any capital project team, regardless of whether greenhouse gas emissions are a major issue or a relatively insignificant issue for their project, will devote the appropriate level of effort, at the right times, and with the necessary support tools, to evaluating potential greenhouse gas emissions impacts and benefits from greenhouse gas emissions reductions. ChevronTexaco Climate Change Action Plan ChevronTexaco is responding to the concern about climate change with a four-fold plan of action. We are:Reducing emissions of greenhouse gases and increasing energy efficiency: Our goal is to reduce emissions per unit output from operations. We inventory our emissions and use innovative technologies to continually improve the energy efficiency of our existing operations, new projects and products. We are incorporating greenhouse gas emission assessments into our capital project evaluations.Investing in research, development and improved technology: We invest in research to: improve understanding of global climate change; to identify mitigation strategies; and to improve the cost effectiveness of mitigation technology. We develop and apply cost-effective technologies that reduce the carbon emissions of producing, delivering and consuming our products.Pursuing business opportunities in promising innovative energy technologies: Our research and business units are actively evaluating and investing in advanced energy technologies that have the potential of being commercially viable and beneficial to the environment.Supporting flexible and economically sound policies and mechanisms that protect the environment: We respect the varied views of partner nations on this complex issue. We assist government policy development and decision making on energy issues and participate constructively in dialogue with a broad range of stakeholders on this complex challenge. We support the development and use of international mechanisms such as Emissions Trading, Clean Development Mechanism and Joint Implementation, which provide flexible, market-based, economically sound means to reduce emissions.