The Carbon Border Adjustment Mechanism (CBAM)
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In this article, we break down what the EU CBAM is, how it works, and what businesses need to do to comply.
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Emissions factor database: Greenly’s comprehensive guide
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The emission factor database is essential for accurate carbon footprint calculation, but understanding its nuances can be challenging. Our comprehensive guide is here to help simplify and explain the significance of emissions factors, both local and international, in carbon accounting. We’ll outline the important role they play in effective carbon management and showcase Greenly's commitment to blending ongoing research with a global outlook.
👉 In this article, we'll explore why emissions factor databases, encompassing both local and international emissions factors, are crucial in accurate carbon footprint assessments.
What are emission factors?
Emissions factors (EFs) are an important part of carbon accounting, allowing us to calculate accurate carbon footprints. Essentially, an EF is a coefficient that quantifies the emissions or removals of a gas per unit activity. In simpler terms, it provides a way to translate various activities - whether it's burning a gallon of gasoline or using a kilowatt-hour of electricity - into their corresponding carbon emissions.
The role of EFs in carbon accounting is crucial. They allow businesses, governments, and organisations to quantify their carbon footprint, a vital step in strategising for carbon reduction. By understanding the emissions associated with different activities, entities can make informed decisions to reduce their environmental impact.
💡 However, it's important to understand that EFs are not static. As our scientific understanding of emissions evolves and as technological advancements occur, EFs must be routinely updated to reflect these changes. This dynamic nature of EFs is where ongoing research plays a pivotal role. New research can lead to more accurate EFs or even entirely new factors for emerging technologies or processes. This constant evolution in EFs is necessary to ensure that carbon accounting remains relevant and accurate, aligning with the latest scientific consensus and technological capabilities.
At Greenly, recognising the dynamic nature of EFs is a cornerstone of our approach. We are committed to continuously integrating the latest research and updates into our emissions database, ensuring our clients have access to the most current and accurate data for their carbon accounting needs.
What is an emissions factor database?
An emissions factor database is a comprehensive repository of emissions factors (EFs) used for calculating the environmental impact of various activities. It provides detailed information on the amount of greenhouse gasses (primarily carbon dioxide) released into the atmosphere as a result of specific activities, products, or services.
The essence of an emissions factor database lies in its detailed categorisation. It encompasses a wide range of activities and processes, from industrial production, energy generation, transportation, to waste management, and more. Each category within the database has associated EFs, calculated and regularly updated to reflect the latest scientific research and environmental policies.
The purpose of such a database is multifold:
- Accuracy - It allows businesses and organisations to accurately calculate their carbon footprint. By using the EFs from the database, they can determine the amount of greenhouse gasses emitted from their operations and activities.
- Decision-making - The database serves as a crucial tool for making informed decisions about reducing emissions. By understanding the EFs associated with different activities, companies can strategise to shift towards more sustainable practices.
- Regulatory compliance - For many organisations, an emissions factor database is essential for compliance with environmental regulations. It helps in reporting emissions accurately to regulatory bodies, ensuring adherence to environmental standards and laws.
- Benchmarking and comparisons - It enables comparisons and benchmarking against industry standards or past performance, helping organisations to track their progress in reducing emissions.
- Public transparency and reporting - With growing concerns about climate change, stakeholders, including customers and investors, are increasingly interested in the environmental impact of organisations. An emissions factor database aids in transparent reporting of these impacts.
Greenly’s emissions factor database is particularly robust, as it not only compiles EFs from various reputable sources but also involves ongoing research and updates. Additionally, Greenly creates and maintains its own EFs. This ensures that the database reflects the most current understanding of emissions impacts, making it a reliable resource for accurate and effective carbon accounting. By incorporating a mix of local and international EFs, Greenly’s database is uniquely positioned to serve a diverse range of clients, offering tailored solutions in different geographic contexts.
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Local vs international emission factors
When it comes to emissions factors (EFs), it’s important to understand the distinction between local and international EFs. Local EFs are specific to a particular geographic region or country. They are calculated based on local energy mixes, industrial processes, transportation methods, and environmental policies. For example, the EF for electricity in Norway would largely be influenced by the country's significant reliance on hydropower, which may differ from a country with a coal-dependent energy mix.
International EFs, on the other hand, are more generic and are applicable on a global scale. These are often derived from international research and databases, and may not account for the specific nuances of a particular region. However, they serve an important purpose in providing a standardised approach to emissions calculation, especially in cases where local data may not be available or is less comprehensive.
The question arises, then, about the appropriateness of using international EFs, particularly for organisations like Greenly, which operate on a global scale and cater to a diverse international clientele. Here are key points highlighting why it’s acceptable and often necessary to use international EFs:
- Standardisation and comparability - International EFs offer a level of standardisation that is beneficial for companies operating in multiple countries. It allows for consistent and comparable calculations across different regions, facilitating a global understanding of emissions.
- Best available data - In many cases, especially for emerging economies or specific sectors, local EFs may not be available or as rigorously researched. International EFs provide the best available data in such scenarios, ensuring that all activities are accounted for, rather than omitted due to lack of localized data.
- Broad coverage - International EFs tend to cover a wider range of activities and processes, offering a comprehensive tool for organisations to calculate their emissions, regardless of their geographical location.
- Flexibility and adaptability - Using international EFs allows organisations to adapt more swiftly to changes in global environmental standards and practices, as these EFs are often at the forefront of incorporating new research and technological advancements.
However, it’s important to note that while international EFs are valuable, they should be used with consideration, and complemented by local EFs where available and relevant. This balanced approach ensures both the accuracy and relevance of emissions calculations. At Greenly, we recognise the importance of this balance. This is why our database includes a mix of international EFs such as those from the US, UK, and Europe. Their inclusion is reflective of the extensive research in these regions - we also integrate EFs from localized databases. This approach not only caters to our diverse client base but also maintains the integrity and accuracy of our emissions reporting, ultimately aiding our clients in their journey toward sustainability.
👉 Learn more about Greenly's carbon accounting methodology in our blog.
The value of leveraging international emission factors
International emissions factors (EFs), particularly those from the US, UK, and European countries offer a mix of rigorous research and development, stringent regulations, and global applicability. The integration of these EFs into databases like Greenly's is essential for several reasons:
- Robust research and development - These territories are at the forefront of environmental R&D, which means that there’s comprehensive research behind the EFs. This research is often more extensive in these territories than in other regions, providing a depth of data that is invaluable for accurate emissions calculations.
- Stringent environmental regulations - These countries typically have more stringent environmental policies compared to other regions. These regulations drive the need for more precise and detailed EFs, ensuring they reflect the true environmental impact of various activities.
- Global applicability - While local EFs are crucial for specific geographic accuracy, international EFs often have broader applicability due to their comprehensive nature. They can serve as a valuable reference point, especially in regions where local data might be lacking or less developed.
Geographical considerations in EFs
It’s important to recognise that geography doesn’t always significantly impact EF calculations. For example, Scope 1 emissions from burning a gallon of gasoline are consistent worldwide. However, geography can play a role in Scope 3 emissions, like those from the extraction, processing, and transport of gasoline, which can vary from region to region. Yet, even in such cases, using European EFs - known for their inclusivity of both Scope 1 and Scope 3 emissions - may still be the more comprehensive option. For example, some EFs from the US EPA do not include Scope 3 emissions - in this case, using more comprehensive European EFs offers more accuracy.
This balanced approach towards EFs – acknowledging when geography matters and when it doesn’t – enhances the accuracy and reliability of emissions reporting. At Greenly, we leverage the strengths of European EFs, known for their robustness and comprehensive nature, alongside international and local EFs. This integration ensures our clients have access to the most accurate and relevant emissions data, supporting their sustainability journey effectively, regardless of their geographical location.
What about Greenly?
At Greenly we can help you to assess your company’s carbon footprint, and then give you the tools you need to cut down on emissions. Why not request a free demo with one of our experts - no obligation or commitment required.
If reading this article has inspired you to consider your company’s own carbon footprint, Greenly can help. Learn more about Greenly’s carbon management platform here.
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