Greenhouse Gas Emission Trading 

Figure. Principe for Excel based Greenhouse Gas Emission Trading impact calculation model for the pulp- and paper industry developed within Stora Enso (click on picture)

Provided that all necessary preparations have been made it is just to put in figures in the 10 numbered cells that could be seen in the example above, see further description below.

1. Next years estimated production in tons.
2. The estimated or actual steam requirement in MWh from own production, for one ton product produced. If no steam is produced, enter the required steam demand.
3. The estimated or actual electricity requirement in MWh from own production, for one ton product produced. If no electricity is on site produced the number is cero.
4. The actual or estimated energy efficiency of the on site produced Steam and Electricity.
5. Authority Interface. The carbon dioxide (CO2) emissions allocation that are granted to the Emitter free of charge in tons. If there is no knowledge of your allocation, calculate that 95% will be free of charge.
6. Make an estimation of fuel consumption in percentages per fuel type over a year. If steam or electricity is delivered from external sources, find out the used fuel mix, and enter them in the model. (The difference is that one has no influence over the used fuel mix in that case. But the model can be used as an emission controlling device of energy suppliers.)
   Converting factors of CO2 (IPCC 2003) to be used in kg/GJ:
      Oil 77.3 
      Coal 94.5 
      Natural Gas 56.06
      Bio Energy 0.00
      Peat 106.0
      Liquid Gas 63.2
7. Budget. Deduct the emission rights that are given for free from the forecasted emissions. This will give an opportunity for elaborating with short time (during a year) cost for purchased emission allowances or if a surplus will occur, and then the value will be presented.
8. Start with the predicted production figures as a base for a five year production forecast. If there are no knowledge of the coming years production, then a creep of 2%/year should be used.
9. Here one can elaborate with the cost for purchased emission allowances for the next coming five years. Recommended numbers are for year 1. 15€, year 2. 15€, year 3. 18€, year 4. 20€ and year 5. 20€.
10. Put in figures for total electricity consumption in GWh each year

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