A new WRI methodology enables fossil fuel companies to measure and disclose their upstream emissions, an increasingly scrutinized factor for investors and regulators.
WRI used its Greenhouse Gas Protocol tools to help a major city in China and businesses in India measure and manage greenhouse gas emissions. Chengdu – one of China’s most populous cities – and nine large companies in India set clear and ambitious targets to reduce emissions intensity, supporting the achievement of China and India’s national emission reduction goals.
Cities and businesses have a critical role to play if China and India are to meet their ambitious greenhouse gas (GHG) emissions targets. Megacity Chengdu, with an administrative area population of 14 million, is China’s fifth largest city and continues to grow rapidly. In India, the industrial and energy sectors account for three-quarters of emissions. Slowing the rise of, and ultimately reducing, these emissions requires tools to measure and manage them.
WRI has worked with Chengdu since 2011 through the Sustainable and Livable Cities Initiative. In 2014, Chengdu developed its first GHG inventory using WRI’s GHG Protocol tools. In 2016, WRI conducted an analysis suggesting that Chengdu’s emissions could peak by 2025 and helped the city develop a roadmap to achieve the target.
In India, WRI has worked since 2013 with The Energy and Resources Institute and the Confederation of Indian Industry to convene and support the India GHG Program (IGHGP), a voluntary industry-led partnership of over 50 large companies committed to measuring and managing their GHG emissions. The potential is large: members account for about 15 percent of India’s GHG emissions and include, for example, NTPC and Indian Railways, the nation’s largest electricity producer and consumer, respectively. Through IGHGP, members receive training on GHG Protocol tools and support on developing GHG inventories and cost-effective emission reduction strategies.
In June 2016, Chengdu announced it would peak its emissions by 2025, ahead of China’s national target of peaking carbon dioxide emissions around 2030. Chengdu’s commitment could avoid emissions equivalent to shutting down 20 U.S. coal-fired power plants by 2025 and demonstrates confidence that a low-carbon economy and economic growth can be pursued together. In India, nine IGHGP members, including the nation’s largest automobile, cement, and chemical companies, have committed to reduce GHG emissions intensity by at least 20 percent, most by 2020, and have agreed to work with their supply chains to measure and manage emissions.
WRI will continue to support cities and companies in contributing to national climate targets, offering input to Chengdu’s strategy for emission reductions after 2025 and expanding the India GHG Program.
More and more companies are setting science-based emissions-reduction targets. These targets represent a company’s share of the global carbon budget, the amount of carbon the world can collectively emit while hoping to limit global temperature rise to 2 degrees C.
Approximately 40 percent of the world’s greenhouse gas emissions come from energy generation, and about half of that energy is consumed by industrial or commercial users.
If a fifth of the world’s emissions come from the energy that keeps the world’s businesses running, how does business report those emissions?
An amendment to the GHG Protocol Corporate Standard
This new Scope 2 Guidance represents a four-year global collaboration to harmonize methods for how companies report greenhouse gas (GHG) emissions from purchased electricity, steam, heat, and cooling (called scope 2 emissions).
It amends the existing...
China’s National Development and Reform Commission (NDRC) created GHG accounting and reporting guidelines for 10 industries, using the GHG Protocol’s (GHGP) framework and methodologies created by WRI and WBCSD. In 2014, NDRC mandated GHG reporting for more than 20,000 companies and organizations, all of which will measure and manage emissions based on GHGP guidelines.
China’s size and rapid growth have made it an economic powerhouse. Yet it’s come at a cost: China is the world’s leading greenhouse gas emitter, burning almost as much coal as the rest of the world combined. The country’s energy and manufacturing sectors account for more than 80 percent of its energy consumption.
Despite Chinese companies’ role in fueling climate change, most do not measure or manage their greenhouse gas emissions.
WRI, in partnership with the World Business Council for Sustainable Development (WBCSD), created the Greenhouse Gas (GHG) Protocol Corporate Standard, a framework for companies to consistently, accurately account for and reduce emissions. In 2013, China’s National Development and Reform Commission (NDRC) created GHG accounting and reporting guidelines for 10 industries, using the GHG Protocol’s framework and methodologies as a reference. In 2014, NDRC mandated GHG reporting for more than 20,000 companies and organizations, all of which will measure and manage emissions based on guidelines mentioned above. Companies reporting their emissions as part of China’s pilot Emission Trading Scheme (ETS)—which comprises five cities and two provinces—will also use the standards.
Since 2009, WRI has organized regular workshops and training with NDRC and local officials to make the case for mandatory emissions reporting. WRI worked closely with the China Business Council for Sustainable Development and the China Electricity Council to develop GHG accounting methodologies specifically for the chemical and power sectors. And WRI experts advised on the development of online GHG reporting systems for Jiangsu Province, Guangdong Province and Qingdao city.
NDRC has laid the political and technical groundwork for a national GHG reporting program. It will raise companies’ awareness on carbon management and help the government track emissions performance. Measuring emissions is the first step in getting companies to reduce them. If China — the world’s biggest emitter — can decrease its corporate sector emissions, it would help prevent warming globally.
What’s more, a robust GHG reporting program is imperative for creating a national emissions trading scheme, which is a key policy instrument for China to mitigate GHG emissions.