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.