Investigation
This research looked at a number of areas that influence or impact upon LCI within New Zealand. The results are detailed in the following pages.
LCA Process
Life Cycle Assessment (LCA) is included here as the LCI Process was created and defined in the context of the LCA Framework. It is therefore useful to discuss the LCA framework and the position of LCI in this.
Life Cycle Assessment (LCA) is a framework or methodology for the quantitative environmental assessment of product systems. It is a structured approach that is defined in ISO 14040 standards. It establishes the context, goal, scope and intent of a study to ensure that the correct aspects of the life cycle are considered along with the appropriate impacts to provide balanced and objective assessment.
The Life Cycle Assessment process is defined as the investigation and valuation of the environmental impacts of a product or service caused or necessitated by its existence. The process has evolved through a lengthy gestation period with the current methodology being finalised in the 2006 ISO 14040 and 14044 standards.
Figure 3. Life Cycle Assessment Framework
→ Full size version of Figure 3 [38 kB JPG]
The ISO standards prescribe the LCA process and methodology through the following two standards:
- ISO/DIS 14040: Principles and Framework
- ISO/DIS 14044: Requirements and Guidelines
These standards provide practitioners with a wide range of choices which influence the shape or efficacy of any targeted LCA study.
A standard LCA is defined as being formed through a four-step process:
- Goal & Scope Definition: Determining what the aims are and whether these can be delivered in the given scope.
- Inventory Analysis (LCI): Modelling the flow of the life cycle and collecting any underlying data that is required.
- Life Cycle Impact Assessment (LCIA): characterising the impacts and evaluating against the defined impact categories (such as Global Warming Potential).
- Interpretation: Analysing the information and determining whether the aims of the study can or have been met.
Life Cycle Inventory (LCI) refers to the inventory analysis phase of Life Cycle Assessment. LCI is a base step and is an essential part of any quantitative environmental assessment. The LCI is a mass and energy balance of environmental flows (Baumann & Tillman) and as such forms the cornerstone of eco-verification.
Figure 4. LCA Type
The LCI phase is primarily concerned with the capturing, research, creation and modelling of Inventory data related to the inputs and outputs of processes and product systems. There is a separate ISO standard for LCI data documentation ISO/TS 14048. This format is a standard for LCA data;
"This Technical Specification provides the requirements and a structure for a data documentation format, to be used for transparent and unambiguous documentation and exchange of Life Cycle Assessment (LCA) and Life Cycle Inventory (LCI) data, thus permitting consistent documentation of data, reporting of data collection, data calculation and data quality, by specifying and structuring relevant information".
This study had a focus on the 'Inventory analysis' or LCI part of the process. A wide range of parameters that influence or are part of the LCI process were considered and discussed with participants of the study. Please refer to the main report for a complete list of parameters considered.
LCA Type
To more effectively understand the nature and purpose of the LCI work currently being undertaken these were grouped into LCA types. The three classifications used were:
- Stand alone: Single and exploratory, used to describe a single product.
- Accounting: Comparative and retrospective.
- Change oriented: Comparative and prospective.
The prevalent types of LCA study being undertaken are stand alone or accounting based, therefore retrospective and comparative. These are being used for identifying areas that can be mitigated but are not product development oriented or integrated into the product development process.
Figure 4 illustrating LCA type is also useful in highlighting the number of experienced practitioners from the total pool surveyed. Six practitioners actively practised across all three types indicating a good level of experience and depth in the application of LCA.
System Boundary
The 'system boundary' is largely defined in to the goal and scope of an LCA study. What processes are selected for consideration and analysis depend largely on the intentions and aims of the environmental assessment.
For example a farmer would primarily be interested in considering the impacts up to the farm gate (i.e. one tonne of greasy wool) and the impact to produce this, while the apparel manufacturer would have to take this through processing, fabric and distribution to the end consumer.
Due to its relationship with the goal and scope of a study the system boundary is context specific and cannot be harmonised. It may however be possible to create a consistent 'approach' amongst New Zealand practitioners.
Figure 5. Allocation Type
Figure 6. Impact Assessment Categories
Allocation
'Allocation' is defined as "partitioning the input or output flows of a process to the product system under study" (ISO14040 1997). Put in simpler terms many products are linked and share processes and resources. This means that the impact or the burden of the impact needs to be allocated between different products and processes.
'Allocation' provides a framework to do this. An example might be a log which is split into a percentage allocated to milled graded timber and another percentage allocated physically (by mass) to pulp and paper production.
Allocation is one of the most difficult areas in LCA methodology. It complicates the data collection process and can greatly increase the threshold of data required in the given system. Most practitioners surveyed adhere to the ISO standard prescription for the procedure of allocation procedure which specifies system expansion as the preferred method, with physical the next preferred, and economic the least preferred.
Allocation is an important consideration for inventory analysis due to its potential impact on New Zealand industry. Figure 5 illustrates
most practitioners utilise the ISO preferred method of Physical allocation with the more advanced practitioners using system expansion to discover additional relevant details.
Impact Categories
The definition of impact categories falls under the 'impact assessment' (LCIA) phase of the LCA process. Technically it does not have a bearing on the data collected, but the decisions made during the goal and scope phase about what impact categories are used are of interest to this study. It is during this phase that inputs and outputs are related to the environmental impact they have (i.e. CO2 would be attributed to Global Warming).
The ISO classification (illustrated in Figure 6) of impact categories provides three broad categories or groupings; human health, resources and ecological consequences. In the New Zealand context there is an overriding focus on Global Warming Potential and Energy and Materials, with only experienced practitioners working in other impact categories. There are exceptions, such as eutrophication which is an important consideration in pastoral farming.
Figure 7. Tools
Participants noted that the restriction of impact categories through the focus on energy and green house gas (GHG) emissions has impacted on the data collected. This was jointly attributed to budget and the current focus and pressure around climate change. This may potentially lead to a reduction in quality and coverage of the data sets being created, and could limit their potential application in other areas.
Experienced practitioners have stated that the restriction of impact assessment categories should not affect the integrity of data collected, as all critical inputs and outputs should be collected. It would therefore be important to further define what data is being omitted and what steps could be taken to address this issue.
Uptake of Tools
Development of the LCA methodology has resulted in the creation of software tools which enable dynamic modelling of systems.
These tools allow the performance of calculations and visualisations, making the process easier and more streamlined.
The adoption of these tools in New Zealand is patchy, with a range of practitioners still using self-generated Excel spreadsheets, mainly due to the intermittent nature of LCA projects and the capital cost of software purchase (not necessarily that they resist uptake).
Both GABI and SimaPro are advanced LCA software tools with a range of available databases for different industries. A greater number of participants used SimaPro, although GABI has only recently started to be taken up in Australasia, and may develop a greater following over time.
Excel is used across the board for the collation and documentation of data in the inventory process. It is also used in relatively advanced applications, as various research organisations have their own formulas and custom spreadsheets for working carbon emissions.
Some research organisations also used Excel as a tool to prepare the inventory information prior to insertion in an LCA tool. Experienced practitioners using Excel cited the transparency as a key benefit.
Other practitioners said they did not have a requirement to conduct a full LCA so were content with using spreadsheet tools and formulas for completion of data collection and inventory analysis.
The other two tools recorded in use were; Everdee, a free tool created through the EcoSMEs initiative in the EU, and the Landcare CarboNZero programme which has developed its own tool with a built-in GHG protocol.
The intermittent nature of LCA work in recent years appears to have been an impediment to the uptake of more advanced life cycle engineering tools. This is likely to change with increasing demand and the requirement for standardisation.
Data collection
The inventory analysis stage relies on the 'bottom up' collection of process data from the production, consumption and disposal of products and services. It is reliant on the quality of research data and hinges on the availability of usable data to form an accurate picture of the system being assessed. The credibility of any LCA results rests substantially on the data's quality.
Most of the work in generating data in New Zealand has been biased toward the primary sector. As a result, there is a growing body of information up to and past the farm gate to processing.
As markets have become more interested in climate change, studies are increasingly considering the whole supply chain including distribution, use and end of life.
The evidence gathered in this study shows that manufacturing and value-added industries have little New Zealand-specific data to reference. At the same time these manufacturing sectors have increased offshore production which has led to difficulties in procuring environmental information from extended supply chains (McLaren, 2008).
Data quality and availability appear to be variable, with some studies from basic literature research (which may be of uncertain age and provenance).
Most practitioners cite data quality as a serious issue, both in terms of availability and accuracy for New Zealand's context. In addition, they expressed real concerns about the cost of data collection and maintenance, which were seen as a recurrent hurdle cost to both SMEs and even to larger enterprises.
This hurdle is due in part to the requirement for continuous data collection that requires technically-sophisticated methods or devices and specialised staff.
Dataset creation
There are a range of approaches taken by most participants which could be broadly categorised as:
- Created Datasets: researched and created for the environmental assessment
- Modified Datasets: existing datasets modified for a particular application
- Existing Datasets: using existing datasets for a particular application
Most of the advanced practitioners have been, or are, involved in the creation of homogenous datasets, as well as using modified international databases of materials and processes where required.
Datasets that were created ranged from highly detailed studies (direct measurement), to studies which are based solely on research papers. One particular study went as far as collating all material and energy used in the construction of the plant and using that in the final assessment of the product (the capital cost of producing the goods). Most studies would not consider the cost of capital.
Modified datasets and existing datasets are primarily international (originating from the EU or the USA), that are generally linked to, or embedded in, LCA software tools. These databases, such as Ecoinvent, contain a wide variety of materials and processes which enable modelling at a schematic level and in some cases offer detailed levels at which there is parity in application and context.
Data availability
Many datasets are classed as private, which prevents them from being openly exchanged or used for the benefit of other companies.
There are a number of data exchange formats available. The most widely used exchange file format is XML (extended mark-up language). This supports a fast and easy exchange of LCI data into different software packages, such as GABI or SimaPro.
Research organisations often retain the right to use aggregated data for other applications (in their projects). This type of practice would appear to work against wider transparency, discourage openness, and generally encourage a competitive approach.
Some data is published, and is therefore partly available in aggregated form (although not accessible at a detailed application level) and some data is made available on specific request.
Currently there is no central repository for data collection and therefore no easy way to determine if a study has been conducted in the area or if there is other useful data in New Zealand that could be used in other studies.
Currently there is strong interest in the government sector around the concept of 'Eco-Verifi cation', which is, in broad terms, the enabling, quantifying and substantiating of improved environmental performance by industries.
The Ministry of Economic Development and the Ministry of Research, Science and Technology commissioned this publication from authors Locus Research in 2008 to learn more about the activities of New Zealand Life Cycle Inventory (LCI) practitioners, the LCI approaches and methods in common use, and their key parameters.
This report investigates the application of LCI in the New Zealand context to provide evidence about current activities, and to isolate potentially signifi cant issues and opportunities, so that all parties can advance Eco Verifi cation activity more effectively.
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