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What is Marine Carbon Accounting?
Carbon accounting, or carbon footprinting is a systematic approach for measuring and managing emissions produced by an organization, individual, or activity. It is a crucial tool in the fight against climate change, enabling entities to understand their carbon footprint and develop strategies to decarbonise (reduce greenhouse gas (GHG) emissions).
In the context of the marine industry, marine carbon accounting is essential for ensuring compliance with environmental reporting regulations is essential for vessels and companies operating within this sector. This also acts as a concrete display of dedication to sustainability.
Key Concepts
A Company Carbon Footprint
Expressed in tCO2e (Tonnes of Carbon Dioxide Equivalent). This is the total amount of CO2 and other greenhouse gases (GHGs) emitted directly or indirectly by an entity. This generally includes emissions from activities such as energy consumption, transportation, manufacturing, and waste management.
A Product Carbon Footprint
Also expressed in tCO2e, a product carbon carbon footprint is related specifically to an individual product, and has a slightly different approach to calculating the emissions related to its footprint.
Greenhouse Gases (GHGs)
Besides CO2, carbon accounting also tracks other GHGs like methane (CH4), nitrous oxide (N2O), and fluorinated gases, which have a higher global warming potential.
Scopes
Understanding the concept of 'scopes' is really important as it is a fundamental aspect of carbon accounting, determining how emissions are classified within a company, for company carbon accounting and reporting.
Scope 1: Direct emissions from owned or controlled sources (e.g., owned/leased vessels, support boats, company vehicles, on-site fuel combustion).
Scope 2: Indirect emissions from the generation of purchased electricity, steam, heating, and cooling (this includes shorepower electricity purchased by a vessel) .
Scope 3: All other indirect emissions that occur in the value chain of the reporting company, including both upstream and downstream emissions.
Objectives of Carbon Accounting
Quantification: Precisely measuring the amount of GHGs emitted to establish a baseline.
Monitoring: Continuously tracking emissions to identify trends and areas for improvement.
Reporting: Communicating emissions data to stakeholders, including regulatory bodies, investors, and the public.
Reduction: Implementing strategies to lower emissions through energy efficiency, renewable energy adoption, process optimization, and other initiatives.
Compliance: Ensuring adherence to national and international regulations and standards related to GHG emissions.
Methodologies
While there are many different carbon accounting methodologies, the two most widely used corporate carbon accounting methodologies are;
GHG Protocol: Developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD), this is the most widely used framework for carbon accounting. It provides standards, guidance, tools, and training for business and government to measure and manage climate-warming emissions.
ISO 14064-3: This is an international standard that specifies principles and requirements for the quantification and reporting of GHG emissions and removals.
Life Cycle Assessments (LCA)
To measure a product carbon footprint, you would usually run a life cycle assessment (LCA). There are a number of LCA methodologies and standards, which include ISO (14040, 14044 and 14067), or the GHG Product Life Cycle Accounting and Reporting Standard .
This approach evaluates the environmental impacts of a product or service throughout its life cycle, from raw material extraction to disposal. From there, you might commission an Environmental Product Declaration (EPD), to comprehensively report and certify your LCAs.
Benefits of Carbon Accounting and LCAs
Environmental Impact: By identifying and reducing emissions, organizations can mitigate their impact on climate change.
Cost Savings: Improved energy efficiency and resource management can lead to significant cost reductions.
Reputation: Demonstrating a commitment to sustainability can enhance a company’s reputation and appeal to environmentally conscious consumers and investors.
Regulatory Compliance: Staying ahead of regulatory requirements can prevent legal and financial penalties.
Challenges
Data Collection: Accurately gathering data across diverse operations and supply chains can be complex and resource-intensive.
Consistency and Standardization: Ensuring consistent and standardized reporting practices across different industries and regions.
Transparency and Verification: Providing transparent data and undergoing third-party verification to build trust and credibility.
Conclusion
So, hopefully you now have a better understanding of what carbon accounting is and how it is an essential practice for organizations committed to sustainability and climate action.
By systematically measuring and managing GHG emissions, your company or vessel can not only contribute to global efforts to combat climate change but also realize economic benefits and enhance corporate responsibility.
As climate concerns grow, and regulatory requirements increase, carbon accounting will play an increasingly vital role in driving environmental stewardship and sustainable development.
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