Veolia: Climate Crusaders
As a provider of environmental services, Veolia is engaged in the fight against climatic change in a practical way every day, by making better fuel choices, promoting the use of renewable energy and emissions permit trading, experimenting with new projects, and more. These are the first fruits of our unique expertise.
"Save an iceberg - do a video conference instead of a meeting." This slogan has become a catchphrase in the press, illustrating how commonplace the climate disruption discussion has become. It also indicates a growing awareness, showing how far we have come since the first conclusions of the Intergovernmental Panel on Climate Change (IPCC) in the late 80s and the signing of the Kyoto Protocol in 1997. Uncertainties remain concerning the scale of climate disruption, and consequently about the magnitude of its consequences. But one thing is certain: the human contribution - known as the anthropogenic contribution - from using the fossil fuels (coal, oil and gas) that supply over 80% of the energy produced worldwide is no longer in question. According to climate scientist Jean-Marc Jancovici (1), "The scientific understanding of climate change is at present clear enough to justify quick action from nations."
In this crucial fight to control greenhouse gases (GHG), Veolia Environnement has acquired real expertise over many years to benefit business and local governments. And while Veolia is not a big producer of GHG itself, we do offer our clients a serious potential for reducing their waste.
The Role of Energy and Waste Management
With over 230 facilities in Europe under the quota regime (1% of the European Union's quotas), Veolia Energy (Dalkia) does not really make the Group a major actor in this area. However, the company "holds the advantage of a having a wide presence and strong representation on the European continent", says Sylvain de Forges, Director of Financial Operations. This presence in many locations is turning out to be essential in taking effective action, and "puts us in a favorable position to offer a line of services and promote awareness among local actors and decision-makers".(2) With Dalkia's 6.1 MT C02 eq. emissions avoided in 2004, and Veolia Environmental Services' 2.3 MT C02 eq. emissions avoided, we are under no obligation to reduce emissions; this puts us on the front lines in the battle to control GHGs. On this score, the European Emissions Trading Directive, which entered into effect in 2005, has accelerated the development of innovative local solutions combining energy efficiency with greenhouse effect mitigation.
Pilot Projects
In addition to processes like cogeneration (the simultaneous production of electricity and thermal energy), Dalkia promotes the use of renewable energy technologies, which allowed us to avoid one million tons of CO2 emissions in 2004 (out of a total of 19 million tons). An area in which Veolia was a forerunner was the completion of the first French JI project (Joint Implementation) in Lithuania in 2003. This pilot project, conducted in partnership with the Caisse des Dépôts through our subsidiary Litesko, should lead to a 250,000-ton reduction in CO2 emissions, thanks to the installation of seven wood-fired boilers on heating systems. The anticipated emissions credits from 2008 to 2012 will be sold to the European Carbon Fund. Exemplifying the kind of desirable industrial development that will help to reduce unwanted emissions, the biomass project undertaken in Lithuania should allow Veolia to develop the technical and financial expertise needed to undertake larger projects in Europe and on other continents. As a significant emitter of methane (in the biogas produced by fermentation of stored waste), Veolia Environmental Services is also very involved in the fight against climate disruption. Our goal by the end of 2006 is to capture and treat all gases whose greenhouse coefficient is 21 times greater than that of CO2. Like Dalkia, the environmental services division has gained expertise in low-carbon projects by using the flexibility mechanisms abroad.
Veolia Mobilizes
Veolia conducted an initial CDM-certified project in Brazil in late 2005 to collect and recover methane at the Tremembe waste storage center north of São Paulo, with an emissions reduction target of 700,000 tons of CO2 eq. over 10 years. This year, we are working on a similar project to capture and recover biogas for two storage facilities located in Alexandria, Egypt. No less than 3.7 million tons of CO2 eq. should be avoided, and an agreement has already been signed with the World Bank to resell nearly a third of the emission credits generated by this project.
Although business is currently the sector most involved in the fight against GHGs, the fact remains that a mobilization of local governments and citizens in the coming years could provide a powerful impetus for climate protection.
Veolia is also getting ready for the probable inclusion of the transportation sector - which is responsible for more than one quarter of GHG emissions in France - in the European quota system. Veolia Transport is helping to reduce GHG emissions by providing its technical and logistical expertise to local governments and by optimizing less GHG-intensive, collective transport systems (60% less emissions, compared to individual car use). Veolia Transport is also getting ready to meet upcoming challenges by experimenting with domestic project mechanisms(3). One project that may be eligible has been launched in the department of Sarthe in France. The bus fleet for the entire region is being run on biofuel.
In anticipation of the transport sector's inclusion in the European quota system, Veolia has also developed an innovative system to identify the main sources of GHG and to evaluate the potential for reducing emissions from transport by creating a tramway system. This system was developed in conjunction with the Nice-Côte d'Azur metropolitan area and ADEME (the French Environment and Energy Management Agency).
But the future of the global climate also depends vitally on coordinating discussions and research efforts undertaken by the big companies that are dealing with GHGs.
A Step Ahead of Kyoto
Veolia is helping to build synergy by participating in the CO2 Action Group, created in June 2005 under the aegis of MEDEF (an acronym for the movement involving French companies). This "club", which includes companies like EDF, Air Liquide, Rhodia and Total, is in hot pursuit of new strategies to explore, as well as the "technological breakthroughs that must be made to meet the challenge", explains Jean-Yves Gilet, the president of MEDEF's environment committee.
(1) L'avenir climatique, Le Seuil.
(2) ) April 5, 2006 workshop on "The consequences of climate change for VeoliaEnvironnement", organized by Institut Veolia Environnement.
(3) A domestic project grants credits for emissions reductions achieved on projects carried out by national actors within their own country.
