CLEPA Inputs for a CO 2-LCA Workshop at GRPE - Geneva, 31st May 2022 - UNECE
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The context and aim of the GRPE initiative from CLEPA’s understanding • To assess the climate effect of various new technologies in view of the carbon neutrality commitment, it is more and more important to include a full lifecycle analysis into regulatory approaches: – The in-use CO2 emissions due to electric energy and fuel consumption – tank-to-wheel (TTW) – The CO2 emissions due to the production of fuel and electricity – well-to-tank (WTT) – The CO2 emissions during the production of the vehicle itself (for example battery as major component) and recycling or / and disposal of the vehicle • Develop a fair, impartial and reproducible method that takes into consideration the circumstances relevant to the automobile based on the ISO 14040/44/14067/14027. • This activity aims to develop a Carbon Foot-Print – Product Category Rules for automobiles which may be used by contracting parties (CPs) as a guideline to assess the lifecycle CO2 emissions of automobiles for assistance in policy making or product development. CLEPA’s main motivation to contribute to this initiative (as stated in our position paper from 25/02/2021): • Incentivize technologies with the lowest carbon impact for the entire value chain. • Emissions from vehicles should ideally be regulated on a life cycle basis. 2
Scope of Responsibilities and Stakes along the Life Cycle Cradle-to-Grave or Life Cycle Production Utilization End-of-Life Distribution/Retail Raw materials Components Vehicle Fuel Supply Driving Recycle Dispose Life Cycle … Mine-to-Gate Gate-to-Gate … to-Gate Well-to-Tank Tank-to-Wheel Cradle-to-Gate Tier Well-to-Wheel Cradle-to-Gate Tier 1 OEM • Raw material industry • OEM • Vehicle owner • Energy provider • Energy provider • Recycling industry • Supplier industry • Driver • OEM (and Supplier) • OEM • Energy provider Regulation needs to account for scope of responsibilities: • OEMs have limited influence on the driver's ultimate use of the vehicle • Suppliers have limited influence on the OEM’s powertrain choice 3
Scope of Responsibilities and Stakes along the Life Cycle as of today Cradle-to-Grave or Life Cycle Production Utilization End-of-Life Distribution/Retail Raw materials Components Vehicle Fuel Supply Driving Recycle Dispose Life Cycle … Mine-to-Gate Gate-to-Gate … to-Gate Well-to-Tank Tank-to-Wheel *** Cutoff approach recycling not considered Cradle-to-Gate Tier Well-to-Wheel Cradle-to-Gate Tier 1 OEM *** ICE(1) Data are typical order of magnitude as of today *** BEV(1) ** * CO2-share of *Battery portion **EU-Mix life-cycle-phase Focus of CO2-footprint is shifting to “Cradle-to-Gate Tier 1” phase with electrification (1) CLEPA estimate based on Volvo C40 Recharge LCA Report 4
The supplier industry Suppliers’ responsibility and impact (Tier x to Tier 1 supply chain) • Suppliers have a big part of responsibility for the upstream CO2eq emissions of automobiles • Supplier’s design choices takes part in recyclability at end-of-cycle • The vehicle manufacturer has to take in account the embedded CO2eq of the components received from the suppliers (Cradle-to-gate: CO2eq footprint of components as received by the vehicle manufacturer) • Each supplier has to account for embedded CO2eq of the components received from for the sub-suppliers throughout the supply chain (gate-to-gate for each sub-supplier). Suppliers depend on the supply chain performance Limitation of supplier impact • Supplier develop and deliver to vehicle manufacturers’ specifications • Supplier do not control the vehicle application for its product nor the regional market addressed • Supplier do not control the use phase of the complete vehicle 5
Need for Harmonization Vehicle manufacturers’ requests/specifications to suppliers vary greatly in terms of: • Type of standard to be applied: System boundaries, cut off criteria, allocation schemes • Type of data requested by the vehicle manufacturer: Scope of data, level of detail (Scope 1 & 2 vs. 1, 2 & 3up, measured data vs. estimation using commercial tools (ERP), GHG or GHG & energy & recycled content) • Type of tools (commercial software tool and databases like GaBi, Ecoinvent etc.) • Scope of supply chain disclosure: Transparency within the supply chain • Required verification: Audit by third-party external/internal vs. ISO standards or specific rulebooks • Claim of completeness: Hotspot analysis vs. Product Carbon Footprint for all supplied parts 6
Requirements to a Product Carbon Footprint Rulebook from Supplier Perspective 1. Quantifying actual CO2eq emissions must be the target, replacing generic data wherever possible. CO2eq emissions for individual vehicles and components under specific production conditions and supply relationships are the goal instead of industry averages and approximations. 2. A collective approach is required accumulating the real CO2eq-emission contributions along the supply chain. CO2eq-emission contributions across different companies requires a consistent set of rules for accounting for emissions to allow summation along chains. 3. The regulations must therefore be globally applicable and verifiable for companies of all sizes. 4. Suppliers are in a competitive environment. PCF is a performance criterium that will be relevant for awarding contracts in the medium to long term. The CO2eq-emission contributions in the supply chain must enable a comparative analysis globally across companies to avoid distortion of competition. 5. Reuse of existing networks like the Catena-X-platform could facilitate and accelerate the implementation. 7
CLEPA Message Supplier Industry needs a harmonized set of rules for the cradle to gate CO2eq emissions of automotive components to improve CO2eq footprint in a competitive environment at affordable cost CLEPA is willing to support actively the GRPE activity on LCA CO2eq footprint rules for automotive product categories initiated by Japan and Korea 8
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Terms and Definitions • Cradle-to-Gate: A definition of scope that includes part of the product’s life cycle, from the time natural resources are extracted from the ground and processed through each subsequent stage of manufacturing until the studied product stage which can be at an intermediate supplier or at the delivery of the OEM to the end user, excluding the product use phase or end-of-life stages. • Cradle-to-Grave: A definition of scope that considers each stage of the product’s life cycle, from the time natural resources are extracted from the ground and processed through each subsequent stage of manufacturing, transportation, product use, recycling, and ultimately, disposal. • Gate-to-Gate: A definition of scope that designates the part of a product’s life cycle within one Tier level or at OEM level. In- or outbound transport for that Tier/OEM level are included according to specific definitions applied. • End-of-Life: End-of-life means the end of a product’s life cycle. Traditionally it includes waste collection and waste treatment, e.g. reuse, recycling, incineration, landfill, etc. • Mine-to-Gate: A definition of scope that designates extraction of raw material from the ground early material processing steps up to an initial tradable product (=cradle-to-Gate first step in supply process) • Raw Material: Materials or substances in its natural condition before processed for use or primary production. • Well-to-Tank: A definition of scope that includes the cascade of steps required to produce and distribute a fuel / an electric energy (starting from the primary energy resource), including vehicle refueling / recharging • Tank-to-Wheel: A definition of scope that covers the transformation of the fuel / electric energy filled / stored inside a vehicle reservoir/ battery into a driving torque at the wheels • Well-to-Wheel: A definition of scope that covers Well-to-Tank and Tank-to-Wheel • OEM Original Equipment Manufacturer, equal to the vehicle manufacturer • Tier 1 / Tier x Module or system supplier / components supplier within the supply chain . Tier 1 supplies to the OEM. • CO2eq: mass unit of CO2 to quantify Greenhouse gases that contribute to global warming, e.g. carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), as well as freons/CFCs. • GaBi: GaBi is a LCA modelling software, provided by company Sphera • Ecoinvent: Ecoinvent database provides consistent and transparent life cycle inventory data 11
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