Administrative GHG Inventory, avoided and removed emissions
Climate change represents one of the biggest challenges of the century, generating effects on elementary aspects of human life, such as access to drinking water and the intensification of extreme events and temperatures. Measuring greenhouse gas emissions, avoided emissions, and removed emissions is the first step towards defining the Bank's alignment strategy with the Paris Agreement and establishing climate goals, in addition to contributing to the management of risks associated with climate change.
The GHG Emissions inventory is a tool that allows mapping the sources of emissions from an activity, process, organization, or economic sector, in addition to quantifying, monitoring and recording these emissions.
BNDES has been calculating its admninistrative inventory, which includes emissions related to its operation.
BNDES also estimates the avoided and removed emissions from the climate mitigation projects it supports, based on consolidated standards, such as the Clean Development Mechanism (CDM) of the United Nations Framework Convention on Climate Change (UNFCCC).
Administrative GHG Inventory
What is it?
The calculation of Greenhouse Gas Emissions (GHG) resulting from BNDES' operation.
Methodology
The Brazilian GHG Protocol Program is an initiative of the Center for Sustainability Studies at Fundação Getúlio Vargas (FGVces), in partnership with WRI (World Resources Institute), the Ministry of the Environment and Climate Change (MMA), the Brazilian Business Council for Sustainable Development (CEBDS) and the World Business Council for Sustainable Development (WBDS). Its emissions calculation tool is a reference and it is the most used to understand, quantify and manage company emissions.
What does the inventory consider?
BNDES considers Scopes 1, 2 and 3 to calculate its emissions.
- Scope 1: direct emissions from BNDES operations, such as generators, mobile fleet, fire extinguishers and air conditioning.
- Scope 2: indirect emissions from BNDES' electricity consumption.
Since 2020, the BNDES has purchased renewable energy purchasing certificate (I-REC).
- Scope 3: indirect emissions from BNDES' activity, namely sources that do not belong or are not controlled by the Bank.
It encompasses employees' home-to-work commute, business trips, effluents generated in operations, transportation, and distribution (upstream – moving trucks).
Publication
The administrative GHG inventory is published annually in the Public Registration platform of the Brazilian GHG Protocol Program.
The Brazilian GHG Protocol Program classifies the inventories in three categories: Bronze Seal (partial inventory); Silver Seal (complete inventory - scopes 1 and 2), but not certified; Gold Seal (complete inventory and certified by an independent third party).
BNDES published the administrative inventory for the 2022 base year and, for the first time, received the Gold Seal from the Brazilian GHG Protocol Program.
Result
Years | Emissões (tCO2e) | ||||
---|---|---|---|---|---|
Scope 1 | Scope 2* | Scope 3 | |||
Location Approach | Purchase Approach |
Total | |||
2022 | 59.66 | 557.78 | - | 557.78 | 2,006.54 |
2021 | 54.79 | 1,512.41 | - | 1,512.41 | 291.82 |
2020 | 55.35 | 795.67 | - | 795.67 | 260,23 |
* The location-based approach quantifies emissions using an average emission factor for a given electrical system, considering the geographic limit and a specific period. In the case of Brazil, the emission factor of the National Interconnected System is adopted. The purchasing choice approach quantifies emissions considering a specific factor of each source of electricity generation that the organization chooses to purchase. BNDES emissions through the purchase choice approach are zero because it acquires energy from certified renewable sources.
Avoided and removed emissions
What is it?
Avoided emissions can be defined as the “positive” impact on GHG emissions of a solution when compared to the impact of an alternative reference scenario where the solution would not be used.
The removed emissions originate from projects that capture carbon from the atmosphere, whether through nature-based or technological solutions.
Methodology
In 2023, BNDES, with the support of the consulting firm WayCarbon, updated and expanded the Climate Fund tool for new sectors (Forest planting with commercial species, Production of biofuel for use in transport applications, Acquisition of electric buses and trucks, rail freight transport and waterway and battery storage projects). The tool is now called the Avoided and Removed Emissions Calculator and will be used for all projects within its scope. All emission factors were also updated, and the calculation began to consider a project year, allowing for annualized emissions reporting.
The first version of the tool, which was sponsored by the British Embassy in Brazil and the Latin America Regional Climate Initiative (LARCI), within the “Green Credit in Brazil” Project, was developed by the FGV Sustainability Studies Center (FGVces), with reference to the methodologies approved and used by the United Nations Framework Convention on Climate Change (UNFCCC) for approving Clean Development Mechanism (CDM) projects. Its publication was made in August 2016.
In May 2017, through technical cooperation between KfW and BNDES, a new version of the tool was developed, with the participation of FGVCes, providing an evolutionary review of the methodologies TE1 - Urban passenger transport on rails and TE3 - Support to Bus Rapid Transit (BRT) project modules. This work aimed to improve the tool to make it more friendly for non-technical users, seeking calculation variables closer to the project before it is carried out, as well as allowing another form of calculation for the same project already in full operation, always seeking adherence with applicable standards. In which case, among others, the network emission factor - SIN (2018) was also updated.
> Access the Avoided and Removed Emissions Calculator (XLSM - 16.3 M - Portuguese)
> Get to know about Avoided Emissions Calculation Methodologies (PDF - 3.1 MB - Portuguese)
Result
> Access the NDC Panel here to consult the avoided and removed emissions from the BNDES.