Climate change
Aracruz is carefully following the debate about climate change and is aware of the importance of stabilizing greenhouse gas (GHG) concentrations in the atmosphere as a way of preventing adverse effects on the global climate system and protecting the environment.
In 2004, Aracruz estimates carbon emissions from its Barra do Riacho (ES) and Guaíba (RS) Unit's forestry, industrial and transportation operations. An estimate was also made of the carbon stores in the company's commercial forests and native reserves. For these purposes, the Aracruz Greenhouse Gases Protocol (PGEEA) was prepared.
The PGEEA contains the methodology and the premises adopted in preparing the GHG emissions inventory and the estimate of the amount of carbon stored in our plantations.
With the support of the University of São Paulo's Institute of Astronomy, Geophysics and Atmospheric Sciences (IAG), an estimate was also made of the carbon stores in the native reserves of the Barra do Riacho Unit, in which a number of different ecosystems associated with the Atlantic Forest are represented. For greater detail of the assumptions used in this estimate, please consult the document Estimate of the biomass and carbon stock in Aracruz's native areas.
Economic reports and scientific studies confirmed the warnings of scientists and researchers from around the world, attaching even greater importance to the climate change. Aracruz seeks to make its own contribution by monitoring and publishing since 2003 data about its greenhouse gas emissions and carbon stocks and evaluating opportunities for improving these indicators. As an example of this effort, 84,3% of the energy used by the Company today derives from renewable sources.
In 2008, as in previous years, Aracruz conducted a review of the adopted premises, emission factors and sources, and the internal procedures used to compile data on GHG emissions and carbon sequestration related to its processes. The current review was based on the latest versions of documents that are used all around the world for drawing up GHG inventories, as well as on modified internal procedures and premises.
As in previous years, Aracruz's 2008 GHG Emissions Inventory followed the calculation methodology released by the International Council of Forest and Paper Associations (Calculation Tools for Estimating Greenhouse Gas Emissions from Pulp and Paper Mills, ICFPA, 2004). We also used the GHG emissions methodology adopted by WRI/WBCSD (A Corporate Accounting and Reporting Standard, WRI, 2004).
During 2008, companies around the world found themselves having to take action with respect to the effects of temperature change and drastic alterations to the landscape, brought about by climate change. Global warming is no longer merely the concern of environmentalists, but has been placed on the agenda of social, economic and strategic planning discussions at company and national levels.
In alignment with this trend, Aracruz, which has been monitoring and revealing its greenhouse gas emissions and carbon stocks since 2003, continues to include in its strategic planning measures to mitigate global warming. As well as constantly looking into opportunities to reduce emissions by replacing fossil fuels with renewable ones, Aracruz endeavors to increase the efficiency of its processes, so as to reduce its consumption levels and, consequently, the level of GHG emissions in relation to its industrial activities.
Since 2003, the Company has managed to reduce the direct emissions from the burning of fossil fuels at fixed points by about 2.8% and, since 2006, by 24.7% from mobile sources. Presently, around 84% of the energy used at fixed points, in Aracruz's production processes, is derived from renewable sources.
By 2008, the Guaíba Unit had managed to reduce the level of its direct GHG emissions per manufactured production unit by about 17%, compared to the 2003 figure. This is a useful indicator for monitoring GHG emissions and energy efficiency, since the results are not distorted by fluctuations in production level. A decline in this indicator reflects improved emissions management.
Moreover, Aracruz had managed to reduce its total energy consumption in 2008 by around 8%, in relation to 2003, the year when it first began to monitor its GHG emissions.
The Company reports the direct emissions from its operations (Scope 1), those relating to its energy imports (Scope 2), and those from other sources that are attributable to the Company, such as transportation in vehicles that are not part of the Company's fleet or whose operations are not controlled by the Company (Scope 3).
The estimates of Aracruz's emissions can be seen in the following charts:
To obtain more detailed information about Aracruz's emissions please click here for 2003, 2004, 2005, 2006, 2007 or 2008.
About the survey of the carbon stock within the native forest reserves, approximately one third of the area belonging to Aracruz is covered by native vegetation that is protected, in the form of Legal Reserves, Permanent Preservation Areas and conservation units, such as the RPPNs (Private Natural Heritage Reserves). The adopted production model, having commercial eucalyptus plantations interspersed with natural areas, enables the interaction, multiplication and conservation of local species of fauna and flora.
What is more, by consuming wood from renewable plantations, the Company plays an effective role in the global effort to alleviate the pressure on native forests and mitigate climate change. The carbon sequestration by the native forests is worth emphasizing in this context, as it helps to reduce the level of GHG in the atmosphere.
The amount of carbon stored in the native forest reserves at the Barra do Riacho Unit, in areas located in the states of Espírito Santo, Bahia and Minas Gerais, was estimated at 5.4 million tons, in December 2008, which is equivalent to the emissions that would be given off by a car driving round the Earth, at the equator, one million times.
The estimates of the carbon stocks in Aracruz's native reserve areas can be seen in the following charts:
| Estimate of carbon stocks in native reserves |
||||
|---|---|---|---|---|
| Ecosystem | Biomass (t/ha) | Area (ha) | Total C (t) | % Total C |
| Advanced stage * | 384 | 12,400 | 2,383,280 | 46.0 |
| Medium stage * | 92 | 24,200 | 1,110,780 | 21.5 |
| Initial stage * | 13 | 46,400 | 296,960 | 5.7 |
| Salt marshes | 15 | 6,100 | 45,750 | 0.9 |
| Coastal tidal lowlands | 40 | 5,100 | 102,000 | 2.0 |
| Bushland | 47 | 14,500 | 340,025 | 6.6 |
| Swampland | 135 | 13,300 | 896,420 | 17.3 |
| Total | 122,000 | 5,175,215 | 100.0 | |
* Atlantic Forest reserve areas.
The technical and economic viability of a new scientific methodology - FullCAM - was also evaluated in 2008. This is a more thorough method of determining the carbon stock in native forest reserves, that has been developed in partnership with the Commonwealth Scientific and Industrial Research Organization (CSIRO), an Australian scientific and industrial research body. In 2009, field trials will be carried out in order to calibrate the new tool to the specific conditions of each of Aracruz's units.
Aracruz seeks to improve the system it uses to estimate native forest reserve carbon stock. Consequently, a partnership was formed in 2006 with Australia’s Commonwealth Scientific and Industrial Research Organisation (CSIRO) to develop and calibrate a scientific methodology appropriate to Aracruz’s situation.
Survey of the carbon stock within the platations - The Company possesses areas of land planted with eucalyptus trees, for the production of pulp and solid wood products, and these are extremely important for maintaining the balance and stability of this model of sustainable production. In this context, the carbon sequestration by the forests is fundamental, as it helps to reduce the level of GHG in the atmosphere, by retaining the carbon in the wood of the trees.
During 2008, the carbon sequestration by Aracruz's planted forests amounted to 340,500 tons, equivalent to 1.25 million tons of CO2. In December of that year, the carbon stored in the forest plantations at the Barra do Riacho and Guaíba units was estimated at 9.8 million tons, representing a stock of 35.8 million tons of CO2. In comparison with 2007, there was a 24.4% increase in the amount of carbon stored in the Guaíba Unit's forests, equivalent to an increase of approximately 465,000 tons in the carbon stock.
The Company's strategy for managing these forests envisages an increase in the carbon stock over the years, as areas that are in the initial and intermediary stages of regeneration evolve to an advanced stage and new areas are added.
The estimates of the carbon stocks in Aracruz's plantation areas can be seen in the following charts:
Chicago Climate Exchange – Aracruz joined the Chicago Climate Exchange (CCX) in 2005, and was the first Latin American company to commit itself to GHG emission reduction targets. The targets assumed by the Company with the CCX establish emission reductions of 1% in 2003, 2% in 2004, 3% in 2005 and 4% in 2006, compared to the baseline.
During 2007, forest audits were approved referring to the quantification of carbon stocks in Aracruz's plantation areas and the choice of areas which integrate the presented project to the CCX. The datas referring to these stocks are already with CCX.
Currently, the Company is undergoing an outside audit by two international verification organizations. One of these audits relates to the quantification processes for the eucalyptus forest carbon stock and the choice of areas that are part of the CCX project.
The baseline for GHG emissions was also approved by CCX e auditors from Financial Industry Regulatory Authority (Finra), and was submitted to the CCX Emissions Committee to the final approval in 2008. For the baseline calculation, it was considered the emissions related to the pulp production process - emissions scope 1 and transportation in Barra do Riacho Unit.
The exceeding forests credits, which are the credits resulting from annual increases of the carbon stock in the forests (from 2003 to 2006), will be able to be commercialized in the future. The decision to enroll in Phase II of CCX is still pending and it will be decided by the new company created by the integration of Votorantim Celulose Papel and Aracruz Celulose, Fibria.
Learn more:
- Brazilian Ministry of Science and Technology
- United Nations Framework Convention on Climate Change
- Clean Development Mechanism
- The European Union Greenhouse Gas Emission Trading Scheme
- Chicago Climate Exchange
- GHG Protocol Initiative
- Intergovernmental Panel on Climate Change
- World Business Council for Sustainable Development
- Brazilian Business Council for Sustainable Dvelopment
Sources:
- MCT, BNDES, UNCTADand FGV,2002 - The Clean Development Mechanism(CDM): A Brazilian Implementation Guide
- ICF Consulting, "Protocols for Measurement and Generation of Data regarding Greehouse Gases (GHGs) for Aracruz"
- Simone Vicente de Azevedo, "Climate Change / Greenhouse Effect - Implementation of the Clean Development Mechanism in Brazil"
