6.3.2.3. Fossil Fuel Substitution
The Guidelines capture reduced emissions resulting from fossil fuel substitution
in the energy sector. Biomass fuels include wood, wood waste, charcoal, bio-alcohol,
biogas, and so forth (IPCC, 1997, Vol. 1, p 1.20). The Guidelines state that
"Biomass fuels are included in the national energy and carbon dioxide emissions
accounts for information only. Within the energy module biomass consumption
is assumed to equal its regrowth. Any departures from this hypothesis are counted
within the Land Use Change and Forestry module" (IPCC, 1997, Vol. 2, p. 1.3).
Specifically, under the UNFCCC, the accounting of biomass changes occurs in
the "changes in forest and other woody biomass stocks" category of the LUCF
module. Hence, fossil fuel substitution by reduced carbon dioxide emissions
in the energy sector is already "rewarded."
To avoid underreporting, therefore, any changes in biomass stocks on lands
under Article 3.4 resulting from the production of biofuels would need to be
included in the accounts. For non-CO2 greenhouse gases, the situation differs
because "non-CO2 greenhouse gas emissions from biomass as fuels are included
in the Energy sector" (IPCC, 1997, Vol. 2, p. 1.15); hence, underreporting is
not expected to occur.
6.3.3. Forest Harvesting and Wood Products
In the Guidelines, all CO2 emissions and removals associated with forest harvesting
and the oxidation of wood products are accounted for in the year of harvesting
by the country in which the wood was grown. This approach may be inaccurate
because of the underlying assumption that there is no change in the size of
the wood products pool.
To resolve this issue, the IPCC (Brown et al., 1999; Lim et al.,
1999a) identified three approaches for estimating emissions and removals of
CO2 from forest harvesting and wood products. All of these approaches are more
data intensive than the current Guidelines, and concerns over their practicality
have been raised (Maclaren, 1999; see also Chapter 2).
Furthermore, if the Guidelines are applied, CO2 emissions from forest harvesting
are already counted; therefore, these emissions should not be counted again.
If wood products are brought into the inventory under the Protocol, however,
more accurate methods-such as those described below-may be elaborated. Further
work, however, cannot be initiated until there is guidance from the Parties
on which, if any, of the approaches below is adopted.
Stock-change approach. This approach estimates net changes in carbon
stocks in the forest and wood products pool. Changes in carbon stock in forests
are accounted for in the country in which the wood is grown (the producing country).
Changes in the products pool are accounted for in the country where the products
are used (the consuming country). These stock changes are counted within national
boundaries, where and when they occur.
Production approach. This approach also estimates net changes in carbon
stocks in the forest and wood products pool, but it attributes both to the producing
country. This approach inventories domestically produced stocks only and does
not provide a complete inventory of national stocks. Stock changes are counted
when but not where they occur if wood products are traded.
Atmospheric-flow approach. This approach accounts for net emissions
or removals of carbon to and from the atmosphere within national boundaries,
where and when the emissions and removals occur. Removals of carbon from the
atmosphere resulting from forest growth is accounted for in the producing country;
emissions of carbon to the atmosphere from oxidation of harvested wood products
are accounted for in the consuming country.
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