GHG Emission Accounting in presentation form

GHG accounting

1. Climate Change and its Impact on the
Competitiveness of Pakistan's Textile Sector
•Round Table Discussion
•November 21, 2022
Training and Technical Support on Greenhouse
Gas (GHG) Emissions Accounting Methods for
Export Sectors of Pakistan
USAID Pakistan Regional Economic Integration Activity

2. Climate Change and its Impact on the
Competitiveness of Pakistan's Textile Sector
•Round Table Discussion
•November 21, 2022
Session 1: Significance of GHG Emissions Accounting

3. TODAY’S WORKSHOP
Significance of GHG Emissions Accounting | Session - 1 | 1
•Introduction
•Importance of GHG Emissions Accounting
•Pakistan's Export Sector
•CBAM: Overview and Implications
•Green New Deal
•Challenges for Pakistan
•Opportunities for Pakistan
•Recommendations
•Conclusion

4. INTRODUCTION
| 2
BRIEF DEFINITION OF CLIMATE
CHANGE AND ITS GLOBAL IMPACT
EXPLANATION OF GREENHOUSE GAS
(GHG) EMISSIONS AND THEIR ROLE
QUICK OVERVIEW OF CBAM AND ITS
RELEVANCE TO THE TOPIC
Significance of GHG Emissions Accounting | Session - 1

5. INTRODUCTION
| 3Significance of GHG Emissions Accounting | Session - 1
Climate Change:
•Long-term shift in temperature and weather patterns
•Primary cause: Human activities, especially burning fossil fuels
Greenhouse Gas (GHG) Emissions:
•Gases that trap heat in the atmosphere, leading to global warming.
Main types include Carbon Dioxide (CO
2) - Emitted from burning
fossil fuels and industrial processes.
•Methane (CH
4) - Released from agriculture, waste decomposition, and
fossil fuel extraction.
•Nitrous Oxide (N
2O) - Linked to agricultural practices and industrial
processes.
•Fluorinated Gases (F-gases) - Used in refrigeration, air conditioning,
and other industrial applications.
CBAM (Carbon Border Adjustment Mechanism):
•EU initiative to price carbon content of imports
•Aims to prevent 'carbon leakage'
The annual average air
temperature has warmed 1.5˚C in
the past six decades.
There is a great loss of snow
cover in spring and summer.
Ocean acidification – too much
carbon dioxide is absorbed into
the water, deeming the water
“corrosive” to the aquatic life.

6. IMPORTANCE OF GHG EMISSIONS ACCOUNTING
| 4Significance of GHG Emissions Accounting | Session - 1
Accounting Global efforts to reduce
emissions (Paris Agreement, etc.)
Why accurate emissions data is
crucial for policy-making
Economic implications of emissions
accounting
Specific challenges for developing
countries

7. IMPORTANCE OF GHG EMISSIONS ACCOUNTING
| 5Significance of GHG Emissions Accounting | Session - 1
Accounting Global context:
•Paris Agreement goal (2015): Limit global warming to well below 2°C or preferably 1.5 °C, compared
to pre-industrial level.
•Net-zero emissions targets by mid-century to achieve environmental neutrality.
Accurate data crucial for:
•Setting realistic national targets
•Designing effective mitigation strategies
•Tracking progress and ensuring accountability
Economic implications:
•Carbon pricing and trading mechanisms
•Investment decisions and risk assessment
Challenges for developing countries:
•Limited technical and financial resources
•Balancing development needs with emissions reduction

8. PAKISTAN'S EXPORT SECTOR: CURRENT STATUS
| 6
OVERVIEW OF
PAKISTAN'S MAJOR
EXPORT
INDUSTRIES
CONTRIBUTION OF THESE
INDUSTRIES TO THE
NATIONAL ECONOMY
CURRENT GHG
EMISSIONS PROFILE OF
KEY EXPORT SECTORS
Significance of GHG Emissions Accounting | Session - 1

9. PAKISTAN'S EXPORT SECTOR: CURRENT STATUS
| 7
Key export industries:
•Textiles and apparel (60% of exports)
•Leather goods
•Sports goods
•Surgical instruments
•Rice and other agricultural products
Economic contribution:
•Exports account for about 10% of GDP
•Major source of foreign exchange earnings
GHG emissions profile:
•Energy-intensive sectors: textiles, leather processing
•Agricultural emissions: rice cultivation, livestock
Exports of
Pakistan
Textile
Leather
Sports
goods
Agricultural
Products
Rice
Surgical
Instrumen
ts
Significance of GHG Emissions Accounting | Session - 1

10. CBAM: OVERVIEW AND IMPLICATIONS
| 8Significance of GHG Emissions Accounting | Session - 1
EU'S CARBON
BORDER
ADJUSTMENT
MECHANISM
INDUSTRIES
AFFECTED BY
CBAM
HOW CBAM
CALCULATES AND
APPLIES CARBON
PRICING
POTENTIAL
IMPACT ON
PAKISTAN'S
EXPORTS TO
THE EU
TIMELINE FOR
CBAM
IMPLEMENTAT
ION

11. CBAM: OVERVIEW AND IMPLICATIONS
| 9Significance of GHG Emissions Accounting | Session - 1
Introduction:
•Equalizes carbon price between domestic and imported products
•Initially covers cement, iron and steel, aluminum, fertilizers, electricity
Calculation method:
•Based on direct emissions from production processes
•Considers carbon pricing in country of origin
Timeline:
•Transitional phase: 2023-2025 (reporting only)
•Full implementation: 2026 onwards
Potential impact on Pakistan:
•Direct effect on cement, steel exports
•Indirect effect on textile sector (through electricity emissions)
•Possible extension to other sectors in future

12. CBAM: OVERVIEW AND IMPLICATIONS
| 10Significance of GHG Emissions Accounting | Session - 1
Current state of emissions data collection and reporting
Technical and financial constraints in implementing robust accounting
systems
Potential economic impacts on export-oriented industries
Competitiveness concerns in global markets
Challenges for Pakistan

13. | 13Significance of GHG Emissions Accounting | Session - 1
CHALLENGES FOR PAKISTAN
Current emissions data status:
•Lack of comprehensive, sector-specific emissions data
•Limited implementation of international reporting standards
Technical constraints:
•Shortage of trained personnel for emissions accounting
•Inadequate monitoring and verification systems
Financial constraints:
•High costs of implementing robust accounting systems
•Limited government and private sector investment
Economic impacts:
•Potential loss of market share in EU
•Increased compliance costs for exporters
Competitiveness concerns:
•Risk of falling behind regional competitors in low-carbon transition
Environment
Social
Impacts
Economy

14. GREEN NEW DEAL
•The Green New Deal (GND) is a set of proposed economic stimulus
programs in the United States that aims to address climate change.
•The Green New Deal (GND), although not yet implemented as a set
of concrete policies, represents a significant potential shift in the U.S.
approach towards climate change.
•If its principles and goals were to be enacted into law, exporters to
the U.S. would experience several impacts, both directly and indirectly.
Significance of GHG Emissions Accounting | Session - 1
| 11

15. GND: IMPLICATIONS FOR EXPORTERS
•Exporters would face tighter regulations regarding the
environmental impact of their products.
•Goods imported into the U.S. could be subject to higher
environmental standards, requiring cleaner production methods
and lower carbon footprints.
•U.S. consumers and businesses may increasingly prefer products
that are environmentally friendly and sustainably produced.
•Companies in the U.S. might prioritize suppliers who meet higher
environmental standards, potentially reshaping supply chains.
•Exporters would need to demonstrate their commitment to
sustainable practices to remain competitive.
Significance of GHG Emissions Accounting | Session - 1 | 12

16. | 14Significance of GHG Emissions Accounting | Session - 1
Potential for improving
export competitiveness
through emissions
reduction
Accessing international
climate finance and
green investments
Developing new, low-
carbon industries and
technologies
Potential for regional
leadership in
sustainable practices
OPPORTUNITIES FOR PAKISTAN

17. | 15Significance of GHG Emissions Accounting | Session - 1
OPPORTUNITIES FOR PAKISTAN
Improving export competitiveness:
•Adopting cleaner production technologies
•Enhancing energy efficiency in manufacturing
Accessing green financing:
•Climate funds (e.g., Green Climate Fund)
•Sustainable finance initiatives
Developing low-carbon industries:
•Renewable energy manufacturing
•Sustainable textiles and organic agriculture
Regional leadership:
•Potential to become a hub for sustainable manufacturing
•Sharing best practices with other developing countries

18. | 16Significance of GHG Emissions Accounting | Session - 1
WAY FORWARD
Steps to enhance
national emissions
accounting capabilities
Suggested policy
measures to support
low-carbon transition
in export sectors
Strategies for
international
cooperation and
accessing support
Roadmap for industry
engagement and
capacity building

19. | 17Significance of GHG Emissions Accounting | Session - 1
WAY FORWARD
Enhancing emissions accounting capabilities:
•Establish a national GHG inventory system
•Implement sector-specific emissions monitoring
•Develop capacity building programs for industry and government
Policy measures:
•Introduce incentives for low-carbon technologies
•Develop a national carbon pricing mechanism
•Integrate climate considerations into export strategies
International cooperation:
•Seek technical assistance from international organizations
•Engage in bilateral cooperation with EU on CBAM compliance
•Participate actively in global climate negotiations

20. | 18Significance of GHG Emissions Accounting | Session - 1
SUMMARY
RECAP OF KEY POINTS
ON THE IMPORTANCE OF
EMISSIONS
ACCOUNTING
EMPHASIS ON THE URGENCY
OF ACTION FOR PAKISTAN'S
EXPORT SECTOR
CALL TO ACTION FOR
VARIOUS STAKEHOLDERS
(GOVERNMENT, INDUSTRY,
INTERNATIONAL PARTNERS)

21. | 19Significance of GHG Emissions Accounting | Session - 1
SUMMARY
GHG emissions accounting is
crucial for climate action and
economic competitiveness
CBAM presents both
challenges and opportunities
for Pakistan's export sector
Proactive measures can turn
climate challenges into economic
advantages
Government: Prioritize emissions data
systems and supportive policies
Industry: Invest in low-carbon
technologies and practices
International partners: Provide
technical and financial support
Academia and civil society: Contribute
to awareness and capacity building

22. THANK YOU
Significance of GHG Emissions Accounting | Session - 1