GHG accounting, or greenhouse gas accounting, refers to the process of quantifying and tracking greenhouse gas emissions and removals produced by an organization, project, or activity. It involves measuring and reporting the emissions of various greenhouse gases, such as carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), and fluorinated gases, that contribute to climate change. Greenhouse Gas Accounting is an essential component of corporate sustainability and climate action initiatives.
Here are key points to understand about GHG accounting:
Greenhouse Gas Protocol:
- The Greenhouse Gas Protocol, developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD), is a widely used standard for GHG accounting. It provides guidelines for identifying, quantifying, and reporting GHG emissions.
Scope of Emissions:
GHG accounting typically considers three scopes of emissions:
Scope 1:
- Direct emissions from sources owned or controlled by the organization, such as fuel combustion in owned vehicles or on-site emissions from manufacturing processes.
Scope 2:
- Indirect emissions associated with purchased electricity, heat, or steam consumed by the organization.
Scope 3:
- Indirect emissions from sources not owned or controlled by the organization, including emissions from the supply chain, business travel, employee commuting, and product use.
Calculation Methods:
- GHG accounting involves using calculation methods to estimate emissions based on relevant activity data, emission factors, and conversion factors. Emission factors represent the amount of greenhouse gases emitted per unit of activity or energy consumption, while conversion factors convert emissions from one unit of measure to another (e.g., from volume to weight).
Reporting and Verification:
- Organizations often report their GHG emissions and removals in sustainability reports or to external initiatives like the Carbon Disclosure Project (CDP) or the Greenhouse Gas Protocol. Some organizations may also seek third-party verification of their Greenhouse Gas Accounting to ensure accuracy and credibility.
Mitigation Strategies:
- GHG accounting helps organizations identify emissions hotspots and prioritize mitigation strategies. By quantifying emissions and tracking performance over time, organizations can set reduction targets, implement energy efficiency measures, invest in renewable energy, optimize transportation, and adopt other measures to mitigate their environmental impact.
Carbon Offsetting:
- In cases where organizations cannot fully eliminate their emissions, they may choose to offset their remaining emissions by investing in projects that reduce or remove greenhouse gases elsewhere. Carbon offsetting allows organizations to compensate for their emissions by supporting projects like reforestation, renewable energy installations, or methane capture initiatives.
