The mission of the GHG Protocol is to develop internationally accepted GHG accounting and reporting standards and tools, to achieve a low emissions economy worldwide.
Greenhouse gas (GHG) emissions are one of the major causes of climate change. The increase in the concentration of these gases in the atmosphere leads to a rise in global temperatures, which can have severe impacts on the environment and human health. In response to this issue, the Greenhouse Gas Protocol (GHG Protocol) was established as a globally recognized standard for measuring and managing GHG emissions.
The GHG Protocol provides guidelines for businesses, organizations, and governments to measure, manage, and report their greenhouse gas emissions. This article will provide a detailed overview of the GHG Protocol, its history, and its key components.
History of the GHG Protocol
The GHG Protocol was established in 1998 by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD) to provide a standardized approach to measuring and reporting GHG emissions. Since then, it has become the most widely used GHG accounting tool in the world.
The GHG Protocol has undergone several revisions over the years, with the most recent update being in 2019. The updates reflect changes in the global climate policy landscape and the latest scientific understanding of climate change.
Who should use the standard
The standard is intended for a wide range of organizations and institutions. The primary intended users are analysts and policymakers assessing government policies and actions at the national, state, provincial, sector, or municipal level. Other potential users include donor agencies and financial institutions, research institutions, non-governmental organizations, and businesses.
The following examples show how different types of users can use the standard:
• Governments: Estimate the GHG effects of planned policies and actions to inform decision making; monitor progress of implemented policies and actions; and retrospectively evaluate GHG effects to learn from experience.
• Donor agencies and financial institutions: Estimate the GHG effects of finance provided, such as grants or loans to support GHG reductions and low emissions development strategies.
• Businesses: Estimate the GHG effects of private sector actions larger than individual projects, such as company-wide energy efficiency programs implemented by electric utilities; voluntary commitments; implementation of new technologies, processes, or practices; private sector financing and investment.
• Research institutions and NGOs: Estimate the GHG effects of any of the above types of policies or actions to assess performance or provide support to decision makers.
Components of the GHG Protocol
The GHG Protocol consists of two components: the Corporate Accounting and Reporting Standard and the Project Accounting Standard.
- Corporate Accounting and Reporting StandardThe Corporate Accounting and Reporting Standard provides a framework for businesses and organizations to measure and report their GHG emissions. It is divided into three scopes:
- Scope 1: Direct emissions from sources that are owned or controlled by the reporting organization, such as emissions from combustion of fossil fuels or process emissions.
- Scope 2: Indirect emissions from the generation of purchased electricity, heat, or steam consumed by the reporting organization.
- Scope 3: Other indirect emissions, such as emissions from the production of purchased goods and services or the transportation of employees.
The standard also includes guidance on setting GHG reduction targets and reporting GHG emissions.
- Project Accounting StandardThe Project Accounting Standard provides guidelines for quantifying and reporting GHG emissions reductions from specific projects or activities, such as renewable energy projects or energy efficiency initiatives.
The GHG Protocol provides a standardized approach to measuring, managing, and reporting GHG emissions, which offers several benefits:
- Improved AccountabilityUsing the GHG Protocol helps businesses and organizations become more accountable for their GHG emissions. By providing a clear framework for measuring and reporting emissions, the GHG Protocol helps ensure that organizations are accurately reporting their emissions and taking steps to reduce them.
- Enhanced CredibilityThe GHG Protocol is a globally recognized standard for GHG accounting. By using the GHG Protocol, organizations can enhance their credibility and demonstrate their commitment to environmental sustainability.
- Better Decision MakingThe GHG Protocol provides valuable information on GHG emissions, which can be used to inform decision-making. By understanding their emissions profile, organizations can identify areas where they can reduce emissions and make more sustainable business decisions.
Relationship to other GHG accounting standards
Before choosing to use the Policy and Action Standard, users should consider the broader landscape of GHG accounting standards to determine the most appropriate standard to use. GHG emissions can be accounted for at the country, city, company, or facility level using GHG inventories. GHG accounting can also be used to estimate GHG reductions from specific projects, policies, or actions, or to assess progress toward GHG reduction goals.
The table below provides an overview of standards and guidelines available for measuring emissions, emissions reductions, and goal progress at multiple levels. Taken together, the methods provide a basis for comprehensive GHG management.
