Position Paper

The GHG Protocol Update should include Market-Based Accounting.

Eurogas and 17 other organisations call on the GHG Protocol Secretariat to include market-based accounting and the recognition of low-carbon fuels certificates in Scope 1 of its GHG Protocol Update. This proposed update can help reshape the landscape of emissions reduction strategies and redefine the role that low-carbon fuels can serve as a positive solution towards a more sustainable future.

This proposal follows the already established market-based approach in Scope 2 GHG Protocol that has been instrumental in increasing renewable electricity use. By allowing the usage of low-carbon fuel certificates within Scope 1 inventory calculations, we can unlock a multitude of benefits:

  • Greater Real-World Impact: By integrating market-based solutions, the GHG Protocol update will have a tangible and measurable impact on emissions reduction, aligning with the global climate goals outlined in the Paris Agreement.
  • Global Leadership: Embracing a market-based approach demonstrates our collective commitment to leading the fight against climate change. This approach has already gained traction and success in the renewable energy sector, and it's time for us to extend its reach through the GHG Protocol.
  • More Flexibility and Viability: Businesses often face challenges when transitioning to low-carbon alternatives due to infrastructure limitations and technological barriers.
  • Stronger Market Incentives: Including low-carbon fuel certificates in the Scope 1 inventory will create a strong economic incentive for industries to shift towards greener energy sources.

The net-zero energy systems of the future will be a combination of various technologies impacting how we produce and use energy. Alongside electrification, green hydrogen, and sustainable bioenergy, Carbon Capture and Utilisation (CCU) technologies applied to recycled carbon fuel generation will play a major role in reducing and removing emissions across key sectors to balance emissions that cannot be avoided – a critical part of the “net” zero goals. Therefore, there is also a need in the future to provide new guidance on emissions accounting for recycled carbon fuels or CCU technologies that are not currently included in GHG protocols.