Accounting for Carbon?? Carbon Accounting?

EcoVision
Nov 14
2 min read

Carbon accounting (also called greenhouse gas accounting) is the process of measuring, recording, and reporting the amount of carbon dioxide (CO₂) and other greenhouse gas (GHG) emissions an organization, project, or product produces — and sometimes removes or offsets.

It’s a key tool in sustainability management and climate change mitigation, helping businesses understand and reduce their environmental impact.

Purpose of Carbon Accounting

To quantify emissions linked to activities (like energy use, travel, manufacturing, scope 1, 2, 3 categories etc.).
To track progress toward emission reduction targets or net-zero goals.
To comply with regulations (such as carbon taxes or reporting requirements).
To inform investors and stakeholders about sustainability performance.
To help identify opportunities for efficiency and decarbonization.

🧾 Types of Carbon Accounting

Organizational Carbon Accounting: Measures total emissions from a company’s operations — often reported annually (e.g., corporate carbon footprint).
Product Carbon Accounting: Calculates emissions related to a specific product or service — from raw materials to disposal (known as life cycle assessment or LCA).
Project Carbon Accounting: Used for specific projects, such as renewable energy or reforestation, to estimate emissions avoided or removed.

📊 Scopes of Emissions (as per the GHG Protocol)

Scope	Description	Examples
Scope 1	Direct emissions from *owned or controlled* sources	Company vehicles, on-site fuel combustion
Scope 2	Indirect emissions from purchased electricity, heat, or steam	Office electricity usage
Scope 3	All other indirect emissions in the value chain	Business travel, supply chain, waste disposal, product use

Methods and Frameworks

Commonly used standards and tools for carbon accounting include:

GHG Protocol (Greenhouse Gas Protocol) — most widely used international standard.
ISO 14064 — global norm for measuring and reporting emissions.
CDP (Carbon Disclosure Project) reporting.
Science Based Targets initiative (SBTi) — aligns corporate targets with climate science.