Session 6

Carbon Accounting

Abstract

Session 6 explains the Carbon Accounting methodology: definitions of scope 1, 2 & 3, emissions factors and volumes of activity.

It develops the strategic interest of Carbon Accounting for companies, as it measures physical flows and market conditions necessary to the company operations.

Session 6 presents the Net Zero Initiative and differentiates CO2 emissions from Avoided Emissions and Captured CO2, and stresses the irrelevance of subtracting them to each other.

Course Outline

0:00
Quiz on Session 5
00:15
0:15
Kaya Identity
00:30
0:45
Corporate Carbon Footprint
01:00
1:45
Break
00:15
2:00
Neutrality
00:20
2:20
Carbon Pricing
00:20
2:40
Business Case Example
00:20

Key Learnings

3 Scopes

  1. Scope 1: direct emissions of company assets
  2. Scope 2: indirect emissions due to company energy consumption
  3. Scope 3: upstream and downstream indirect emissions

Definitions

  • Emission Sources: based on the scope.
  • Emissions Factors: CO2 emission by activity unit. Emissions factors are provided by public database.
  • Activity Volume: number of units operated over a period of time.

Collecting the data in a company can represent a significative time investment.

The 3 Scopes of Carbon Accounting

Greenhouses gas

  1. CO2: Fossil energies, Cement, Deforestation
  2. CH4: Leaks, Beef, Rice, Waste fermentation
  3. N2O: Agricultural
  4. Fluorinated gases: refrigerant system leaks

Estimated vs. Actual Emissions

  • Scope 1 & 2: mandatory. Scope 3: not mandatory and no rules on scope 3 limits.
  • Few Greenwashing techniques:
  • Limit emissions sources to scope 1 & 2, outsource carbon intense activities to other companies.

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Basic Maths

1. List: the emission sources by scope.

2. Multiply: the Emission factor by the Activity Volume for each source.

3. Add: the emissions of all sources

Sector Predominance of Scope 3

Scope 3 represent the largest scope for most business activities.

Scope 3 over 90%: Banking, Retail, Software & Services, Real Estate.

Scope 1+2 over 50%: Extraction, Passenger Transportation, Energy.

3 Actions for Companies

1. Reduce Internal Emissions: Induced emissions

2. Reduce Tierce-Party Emissions: Avoided emissions

3. Develop Carbon Sinks: Negative emissions

Subtracting Induced, Avoided and Negative emissions makes no physical sense.

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Student Projects

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Speaker

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Focus

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Pedagogical Note