Greenhouse Gas Emission Trading 

The aim of this strategy is to give ideas regarding Green House Gas Emission Trading impact calculations through the description of a preliminary model developed within Stora Enso

The main target group for this description of a calculation model are Emitters that needs to keep track of the costs for their Carbon dioxide emission allowances. But also economically responsible of that companies can benefit from the results. In the long run might also for instance future verifiers and authorities benefit from a consequent model. See also More about the Kyoto protocol for the background of the Greenhouse Gas Emission Trading and an impact calculation model for the pulp-and paper industry.

Since the rough estimation tool, based on an LCA flow model that is described under Working Procedure below is adapted to Stora Ensos pulp- and paper production units special needs, the actual calculation model will not be distributed here. The main purpose of the description below is instead to give ideas for those who likes to create a similar model themselves. Those really interested are also welcome to contact Stora Enso Environment for a demonstration or discussion regarding necessary adjustments to fit the line of business in question.

Prerequisites for using the actual computer based Excel model is first of all that the user has checked beforehand that it is applicable on own process conditions and/or having made the necessary adjustments. Each line of business has to develop according to its circumstances. What this will cost could however only be estimated by the business in question. The emitter is also recommended to investigate future development of instructions from authorities and of similar calculation tools. For instance can general calculation tools from WBCSD and WRI (World Business Council for Sustainable Development and World Resource Institute) today be downloaded from the Internet. This was however not the situation when this model was developed.

Information gathering might also take some time. But provided that everything is in order, the entrance of data into the model and the calculations are a matter of minutes or hours for the user.

The calculation model makes it possible to elaborate with costs for emission allowances that have to be bought in the nearest 1-5 years. The influence of increased production and thereby the possible influence of increased fossil CO2 (Carbon dioxide) emissions on costs for new emission allowances that has to be bought could also be analyzed. It is also possible to study the result of changes in the fuel mix for instance if more bio energy (carbon neutral fuels) are used instead of fossil Oil or Coal. The amount of fossil carbon dioxide, shown under the headline "Actual mill data", will be reduced accordingly.

Another example of addressing the emissions trading issue

Akzo Nobel’s chemical plant in Stenungsund is included in the emissions trading scheme within the European Union that commenced on 1 January 2005. In order to facilitate Akzo Nobel site Stenungsund’s future work concerning emissions trading, a study was performed with the aim to investigate how the issue has been dealt with so far, what is left to be done and how it will influence the company in the future. The focus of the study was to estimate the financial effect of the emissions trading by working with different scenarios and to describe routines for the company’s future work. These are methods that also Stora Enso has adopted to handle emissions trading. 

Publication: Study on how emissions trading will influence Akzo Nobel in Stenungsund

Please go to Working procedure