Australia – Major Life Cycle Assessment study helps dairy farmers aim for GHG emissions reduction

Dairy Australia worked closely with the Australian dairy industry to measure the carbon footprint of producing a number of dairy foods. This initiative was one of the first carbon footprinting projects to report the emissions of dairy farming on a country level and following the International Dairy Federation sector specific guidelines “A common carbon footprint approach for dairy” (IDF, 2010).

This major Life Cycle Assessment study, carried out by PE INTERNATIONAL, measured the GHG emissions emitted from the production of a number of dairy products to identify the industry’s overall carbon footprint.  An industry cross section of primary data has been analysed from 140 farms across Australia, the life cycle inventory data collection for this project was extensive. A key project objective was to develop a customised software platform which ensures transparency and high data quality during data collection and modelling, which is auditable and can be used by the industry and expanded in future.

This was achieved by developing a linked software platform, combining the benefits of PE’s  SoFi software system including web-based data collection functionality, and the GaBi Life Cycle Assessment software and database package.


Dairy farmers and processors in Australia have a strong track record of working to improve financial, environmental and social outcomes. They understand that sustainability and industry profitability are interdependent. The large number of sustainability initiatives the industry currently undertakes demonstrates this. Dairy Australia invests in a number of key programs and initiatives aimed at helping farmers and processors with GHG emission reduction strategies. One of these initiatives is the Life Cycle Assessment study.

A summary of the final project report is available for download here

Insights from the CarbonExpo

Opportunity or threat for the food and agriculture sector?

Identifying opportunities related to a well-designed carbon price rather than dwelling on potential negative implications were discussed in a panel at last week’s Carbon Expo in Melbourne. Deborah Kerr, Manager for Natural Resource Management from Australia's National Farmers Federation, talked about their members looking for opportunities to increase productivity based on carbon management. Initiatives leading to better soil health and therefore higher productivity and less cost for fertiliser, such as increasing soil carbon, are popular with farmers. Overall, she sees a great opportunity for farmers in the Carbon Farming Initiative.

“More food – fewer emissions” was the key message from Jack Holden, Sustainability Strategy Manager at Fonterra. To achieve this, Fonterra is working closely with their farmers to identify profitable options to reduce the “on farm” contribution. Jack explained how Fonterra supports its farmers in identifying energy savings options in the milking shed and how results from the Dairy Australia carbon footprinting project that was undertaken by PE INTERNATIONAL will help them move beyond on their emissions reductions journey.

Olivia Tyler from Treasury Wine Estates explained their holistic approach to carbon management both locally in Australia and globally across the sixteen countries in which it operates. While Treasury Wine Estates are not liable under Australia’s carbon tax, they put great effort in reducing carbon in their products by using a full life cycle approach. They successfully communicate their efforts through voluntary Carbon and Water Disclosure Project reporting, as well as having achieved the carboNZero certification for one of their wines.
Summarising the session, Barbara Nebel from PE INTERNATIONAL commented, “It is good to see a positive attitude towards the carbon price and that industry focuses on the related opportunities.”

One of the other highlights of the conference was when Australian’s Climate Change Minister, Greg Combet, announced that Australia will sign up for a second commitment to the Kyoto Protocol which is to be discussed at global climate talks in Doha in December.  In his view the protocol, which covers less than 15 per cent of global greenhouse gas emissions and only from developed nations, was not enough on its own. Therefore, Australia will push for a broader deal which will be concluded by 2015. Without taking action to reduce emissions, the Australian economy would face a "severe economic shock" beginning in the year 2020 and so it was better to tackle it now, said Greg Combet.

New Zealand’s Climate Change Minister Tim Groser announced at the same time that New Zealand will not be following Australia but will instead make voluntary pledges under the UN Framework Convention on Climate Change, meaning that New Zealand will no longer have a legal obligation to reduce emissions.

Trans-Tasman collaboration on development of an EPD scheme

Life Cycle Association New Zealand (LCANZ) and Australian Life Cycle Assessment Society (ALCAS) are currently working on the development of an Australasian EPD scheme based on the well-established German IBU EPD system.

Global markets increasingly demand science-based, verified and comparable information about the environmental performance of products and services. Environmental Product Declarations, or EPDs, provide a standardized report on the environmental impacts linked to a product or service over its entire life cycle. However, there is currently no standardized internationally-recognised EPD programme in place.

LCANZ and its Australian counterpart, ALCAS, are currently looking to fill this gap for Australasia. The two not-for-profit associations are partnering to investigate the development of an Australasian scheme similar to the well-established European scheme run by the Institute for Construction and Environment (IBU).

Barbara Nebel, President of LCANZ, is excited to work together with ALCAS to establish a cross-Tasman EPD scheme: “It makes most sense for New Zealand and Australia to have one scheme across the Tasman, making it a lot more efficient for companies to develop their EPDs.”

The impetus to examine IBU’s EPD scheme was that 25 European organizations recently signed a MoU to establish a Pan-EU EPD platform. “The European ECO-EPD platform with 17 countries and numerous GBC is the leading one in the world”, says Barbara Nebel, President of LCANZ.

David Baggs, ALCAS President, underlines the goal, “This initiative that the Board of ALCAS and LCANZ are undertaking, it will ensure that all EPDs performed in Australia and New Zealand will be compatible with those in the EU will facilitate the export of Australasian manufactured goods into the EU - the largest single marketplace in the world with a GDP of nearly USD$18 trillion.”

The German EPD scheme, administered by IBU, is a leading force in the ECO-EPD platform and has offered their support to developing an Australasian scheme.

Responsible Steel in Australia

The Steel Stewardship Forum has been established to bring together all participants in the Australian Steel Supply Chain with the common goal of achieving sustainability improvements across the entire chain.

An early initiative of the Forum is the development of a certification scheme for Australia.


PE INTERNATIONAL is currently working with the Forum to develop the Business Case for this initiative. The project seeks to develop a clear and measurable sustainability certification process across the entirety of the steel supply chain, from mining to scrap recovery, and to measure progress in sustainability improvement against a set of agreed benchmarks.


The Steel Stewardship Forum’s goal is to develop a credible and independently verifiable steel certification scheme, to be known as Responsible Steel, which  seeks to minimise impact and improve performance throughout the steel value chain, and is recognised by the industry and external stakeholders.



More information: www.steelstewardship.com or contact b.nebel@pe-international.com

Australian Dairy study to establish industry´s carbon-cred

The Australian subsidiary of PE  is conducting a Life Cycle Assessment to establish the Australian dairy industry´s carbon footprint. The study aims to quantitatively evaluate the carbon footprint from a systems analysis point of view, i.e. farm-to-distributor´s warehouse or export harbour and focuses on the major dairy products produced for export and retail. Once completed in 2012, the assessment will identify the life-cycle phases with the highest environmental impact and highlight areas of potential improvement along the supply chain.

In the magazine Food & Drink Business, Neil van Buuren, the project leader, states “The study will generate a reliable basis for carbon footprinting, environmental product reporting and product labelling, for example environmental product declarations and carbon-reduction labels. It will enable benchmarking at both the farm and the corporate level to help drive best practice.”

More widely, it will support strategic decision-making to promote a more competitive Australian dairy industry and build the basis for sustainable leadership.

Australia is being told that it needs to increase its food supply by 50% by 2050 without increasing the amount of resources it uses. “All food production comes at an environmental cost and CO2 emissions arise at all points of supply chain,” van Buuren says.” This study is part of the dairy industry´s response to that challenge.”

For more information please contact Barbara Nebel

Carbon neutral travel in Australia

PE Australia, in collaboration with Northern Territory Government’s Tourism NT, has developed and implemented an innovative framework to enable Small to Medium Enterprises in the Northern Territory tourism industry to publish statements of claims about their greenhouse gas emissions and offsets.

The system, called Outback Offsets  was based around completion of a Greenhouse Gas Emission Life Cycle Assessment compliant with ISO standards and third party verified offsets.

The solution has been supported by the WWF. The Chief Executive Officer of WWF Australia, Greg Bourne, congratulated Tourism NT, on the “independent, transparent and credible programme for small and medium businesses to reduce their greenhouse emissions”. The scheme has the potential to be applied to many other industry sectors keen to become involved in accredited climate change initiatives.

www.pe-international.com