Veolia Environnement

Over the next 30 years, the acceleration of climate change will force the world economy to reduce considerably its greenhouse gas (GHG) emissions. During this period, power generation based on the use of fossil fuels will peak and start to decline, requiring a substantial shift in our individual behaviours and habits.

Environmental issues and, more broadly, sustainable development principles, have today a major role at the heart of the economy. Local authorities are facing a broad range of measures out of which a priority should be established by taking into account the environmental cost. In this context, the Group, partner of local governments for a long time, has decided to sponsor the city of Poznan in the realisation of a carbon inventory of its activities.

More broadly, the carbon strategy of Veolia Environnement can be broken down into three areas: accompanying innovation, promoting renewable and alternative energy for decentralised systems, rationalising the use of energy to reduce waste by improving energy efficiency.

Veolia Environnement is committed to this global effort of reduction of GHG emissions : In 2007, the Group contributed 24.6 million metric tons of CO2 equivalents (eq.) to the global reduction of GHG emissions.

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Veolia and the Kyoto mechanisms

In Europe, Veolia Environnement operates 230 installations for which carbon emissions have been capped, representing a total of 15.09 Mt of CO2 eq. In France, these measures impact on 130 facilities and 3.6 Mt of CO2 eq.

The Kyoto Protocol sets out a number of “flexibility mechanisms” providing different ways to meet emissions reduction targets, including an option to invest in emission-reducing projects either through the Clean Development Mechanism (CDM) or under the Joint Implementation (JI) mechanism.

Veolia Environmental Services has registered four CDM projects with the UNFCCC designed to capture methane from landfills and provide waste-to-energy solutions. Veolia Energy is working on several CDM projects to switch fuels used to power desalinisation plants.

The Group has established an in-house entity called VEETRA (Veolia Environnement Emission Trading) to manage its exposure on the various carbon trading platforms and optimise the Group’s carbon assets portfolio. VEETRA has naturally extended its activities to include all “carbon currencies”, i.e. “currencies” traded under bilateral agreements rather than in the regulated market.

The Group and its Divisions are thus equipped to provide precise and efficient analyses of the various products available – and the price differences between them. One of VEETRA’s roles is to sell at their best value, the reduction credits from projects undertaken by the Group through the different flexibility mechanisms. By nature of its geographical spread, Veolia operates in a number of markets, including new American initiatives such as the Regional Greenhouse Gas Initiative (RGGI), the Chicago Climate Exchange (CCX) and California, for which VEETRA will help optimise the company’s asset portfolios.

Environmental Commitment

As a producer and user of renewable energy, Veolia Environnement pledges to contribute to meeting the target set by the European Commission of reaching a share of renewable energy of 20% in 2020. The Group, at a minimum, will contribute to national targets regarding the production and use of renewable energy in all regions where Veolia operates (particularly in the United States, where some states have already set ambitious renewable energy targets). This mainly involves the use of biomass and the development of solar-powered solutions.

Alongside this drive, Veolia Environnement will calculate the reductions in greenhouse gas emissions made possible through the use of such technology.

In the transportation sector, Veolia Transport works to improve emissions reductions in both its own fleet of vehicles and those it operates on behalf of clients, by focusing on: fuel efficiency; environmental driving; sustainable biofuels; electrification; hydrogen Fuel Cell Vehicles.

In the buildings sector, Veolia Environnement is already actively working to develop the energy savings identified in the residential and service sectors. To this end, Veolia reviews both its own buildings and those in which it conducts operations on behalf of customers. All should be exemplary, both in terms of physical assets, installations, and technical operations.

Research and development

More than 70% of Veolia Environnement’s R&D programmes involve work to help combat climate change. These are developed along three lines:

• Energy efficiency and demand management;
• Renewable energy development;
• Capture, reuse or storage of greenhouse gases (geological storage).

Veolia Environnement is working to improve the energy facilities it operates. Veolia Environmental Services captures and converts to energy the methane emanating from 80% of the landfills it manages. The company is also conducting research to improve carbon capture and storage, optimise the production of methane and enhance the quality of this resource to optimise its reuse as an energy source or transportation fuel.

In 2005, Veolia Environnement began a programme to capture, transport and store CO2. To this end, the company launched a pilot scheme to capture and store carbon at the Claye-Souilly landfill, aimed at providing a better understanding of related costs and financing for such facilities. This scheme was conceived in light of the EU energy and climate package, and the growing appeal of this technology in Europe, Asia and the United States.

W: www.sustainable-development.veolia.com
W: www.veolia.com