What are the measurement methodologies for greenhouse gas emissions?
- Raphael Der Agopian
- Jul 15, 2024
- 4 min read
Updated: Jul 21, 2024
Climate action undertaken by companies, primarily focuses on measuring, reducing, and offsetting greenhouse gas emissions. Widely adopted in Europe and globally, there are several pathways to achieve this objective.
Over the course of four successive articles, we will decode the market benchmarks on (i) measuring the impact of a company's emissions, (ii) the various climate commitments and emission reduction actions, and (iv) certification labels framing the final stage of emission offsetting.
The first step in decarbonization involves a thorough assessment of greenhouse gas (GHG) emissions to understand their environmental impact and implement effective actions to reduce carbon footprint, while ensuring long-term monitoring of outcomes.
In this article, we will first outline the common basic process shared by all GHG measurement methodologies. Next, we will compare the various market benchmarks that are widely used.
THE APPROACH
A. Boundary
First step, it is essential to define the boundary of the emissions your company wishes to measure. The boundary is typically divided into three categories, or "scopes":
Scope 1: Direct emissions from sources owned or controlled by the company, such as company vehicles and industrial equipment.
Scope 2: Indirect emissions from purchased energy consumption, such as electricity, heat, and steam.
Scope 3: All other indirect emissions occurring in the company's value chain, including employee commuting, purchased goods and services, and the use of sold products.
B. Data collection
Data collection is a crucial and often complex step. Data can be monetary (cost of energy purchases, fuel invoices) or physical (quantity of raw materials, energy consumption in kWh).
C. Calculation of GHG Emissions
Once the data is collected, the next step is to convert it into greenhouse gas (GHG) emissions. This is done using emission factors, which translate activities (such as energy consumption) into quantities of emitted GHGs.
Emission factors vary depending on the energy source or type of raw material. For example, the amount of CO₂ emitted per liter of burned fuel or per kWh of electricity consumed. These considerations largely influence the existing methodologies in the market.
D. Analysis
After calculating emissions, it is crucial to consolidate, categorize, and analyze the results to understand your company's main emission sources. This analysis helps prioritize reduction actions and identify improvement opportunities by identifying hotspots.
E. Action plan
Lastly, use the results of your analysis to develop a concrete action plan aimed at reducing GHG emissions. This plan should include specific reduction goals, short and long-term initiatives, and performance indicators to track progress. These reduction actions will be the focus of an upcoming article.
2. METHODOLOGIES
After detailing the basic process of conducting a carbon footprint in five steps, it is crucial to explore the primary methodologies used for measuring greenhouse gas (GHG) emissions.
A. GHG protocol
Various methodologies for measuring GHG emissions vary depending on the industry sector, country, and specific objectives. However, they are all influenced by the GHG Protocol, a standard established by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD) in 2001 following the Kyoto Protocol. This framework provides a global framework for accounting GHG emissions.
Used by thousands of companies and organizations worldwide, the GHG Protocol covers scope 1, 2, and 3 emissions. It utilizes standardized coefficients to convert activities into GHG emissions and serves as the basis for numerous emission reporting programs, such as the Carbon Disclosure Project (CDP), which will be discussed in a dedicated article. This standard is widely adopted by multinational companies, governments, and NGOs.
The GHG Protocol benefits from extensive international resources, a broad community, and various software tools.
B. The Bilan Carbone
The Bilan Carbone method, developed by the French Environment and Energy Management Agency (ADEME), represents a specific and rigorous approach to assessing greenhouse gas (GHG) emissions. Introduced in the early 2000s and popularized by Jean-Marc Jancovici, it draws inspiration from the global methodological framework established by the GHG Protocol.
In France, the Bilan Carbone stands out for its adaptation to national realities, such as the national energy mix, and sector-specific practices, emphasizing Scope 3 emissions. Unlike the GHG Protocol, which provides a more generic treatment of indirect emissions, the Bilan Carbone delves deeper into analyzing impacts across organizations' value chains. This precise methodology enables a better understanding of emission sources and facilitates the identification of specific actions to significantly reduce carbon footprint.
C. Other Methodologies
There are several other recognized market methodologies, each offering specific features tailored to the diverse needs of organizations and sectors. The most well-known include:
ISO 14064: International standard for quantifying and reporting GHG emissions, widely adopted globally alongside the GHG Protocol.
PCAF (Partnership for Carbon Accounting Financials): Standardized framework for GHG emissions accounting by financial institutions, extensively used internationally.
PAS 2060: Specification for achieving carbon neutrality, encompassing measurement, reduction, and offsetting of GHG emissions, specifically adopted in the United Kingdom.
3. WHICH ONE TO CHOOSE?
When selecting the best methodology to quantify greenhouse gas (GHG) emissions, several strategic criteria should be considered. This decision-making process involves evaluating compliance with international standards, considering national regulatory and sector-specific requirements, and assessing ease of integration into existing operational processes. These criteria ensure not only global data consistency and comparability but also effective GHG emission management tailored to the national context.
For a French company with a significant international presence, opting for the GHG Protocol represents a strategic choice. This framework ensures compliance with international standards and facilitates global-scale communication and management of GHG emissions. For companies predominantly operating in France, ADEME's Bilan Carbone offers enhanced precision and relevance suited to the national context, thereby simplifying the management of GHG emissions specific to the French market.
Furthermore, for companies seeking to expand beyond GHG emission measurement, life cycle assessments provide a more comprehensive approach by examining the overall environmental impacts of a product or service beyond its carbon footprint alone.
ABOUT APOLOWNIA
Apolownia is a mission-driven company committed to making a significant impact in the climate sector.
We support businesses and funds willing to engage in long-term and impactful decarbonization strategies - within and beyond their own value chain - by designing, implementing and monitoring science-based carbon reduction projects that restore natural ecosystems.
Through technology and innovative solutions, we aim at shaping a resilient and environmentally friendly world, by encouraging the decarbonization of the economy and supporting social and environmental initiatives.
You can drive positive change for the climate, biodiversity and local communities.
Contact us to engage or for more information. Find us on www.apolownia.com.
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