What is carbon accounting? | Definition from TechTarget

What is carbon accounting?

Carbon accounting is the process of calculating and tracking the amount of carbon dioxide (CO2) and other greenhouse gas (GHG) emissions both produced and removed from the biosphere by an organization.

It is an essential part of measuring and managing an organization’s carbon footprint — the total GHG emissions released into the atmosphere because of human activities.

Carbon accounting allows individuals and organizations to measure the environmental impact of carbon emissions from their various activities, processes and steps taken to counterbalance the emissions. It helps these entities understand their impact on the climate and provides a basis for making informed decisions to reduce their carbon footprint.

Carbon accounting is an essential tool for businesses, governments and individuals striving to understand and reduce their impact on climate change. It plays a crucial role in advancing sustainability goals, promoting environmentally responsible practices and, therefore, meeting environmental, social and governance objectives.

Why does carbon accounting matter?

Carbon accounting is a fundamental tool in the fight against climate change. The following are a few reasons why:

• Climate change mitigation. Carbon accounting helps organizations or entities identify their production of greenhouse gas emissions, enabling them to take steps to reduce their carbon footprint. Tracking emissions and setting reduction goals are the initial steps in limiting climate change and reducing global carbon emissions.
• Environmental responsibility. Decades ago, it was agreed that factories belching black smoke into the atmosphere was no longer acceptable. Today, it’s been decided that current carbon emissions are unacceptable, and something needs to be done. Carbon accounting provides a means for individuals, businesses and governments to take responsibility for their contributions to climate change.
• Regulatory compliance. Environmental responsibility might appear altruistic in most business applications, but a growing number of countries and regions are mandating regulations and policies to reduce GHG emissions. Carbon accounting helps organizations comply with these regulations and report their emissions accurately, avoiding potential penalties and fostering a culture of transparency.
• Investor and stakeholder expectations. Investors and stakeholders in publicly traded companies increasingly demand transparency and accountability regarding an organization’s environmental impact. Proper carbon accounting in financial statements such as annual reports allows businesses to demonstrate their commitment to sustainability, which attracts socially responsible investors and can increase customer loyalty.
• Innovation and efficiency. After gaining a clear picture of their carbon footprint, forward-thinking organizations seek out innovative ways to reduce carbon output and replace less energy-efficient technologies. In the process, they often improve operational costs and other efficiencies thanks to the modernization of their infrastructure.
• International agreements and collaborations. Each nation has its own approach to reducing climate emissions, and they can vary considerably. Through proper carbon accounting, nations can more easily align their efforts.
• Carbon offset and market mechanisms. By engaging in proper carbon accounting, companies and organizations can better plan their carbon offset initiatives and invest in projects that remove or reduce CO2 from the atmosphere.

How does carbon accounting work?

Carbon accounting is a multistep process that typically involves the following:

• Identifying emissions sources. The first step in the process is to identify and categorize all sources of greenhouse gas emissions as related to a particular entity or activity. These sources can include both direct emissions — for example, operating a polluting factory — and indirect emissions, which come from a third party such as a business partner.
• Data collection. Thorough and accurate data collection is crucial for carbon accounting because a company does not want to invest too much or too little in addressing emissions. Data collection points include energy consumption, fuel use, transportation, waste generation and other relevant activities that produce carbon emissions.
• Emissions calculation. Once data is collected, carbon accountants calculate the net amount of CO2 and other GHG emissions after subtracting the gases absorbed for each identified source.
• Conversion to carbon dioxide equivalent (CO2e). Greenhouse gases trap varying amounts of heat in the atmosphere. To come to a fair comparison, they are converted to CO2e, a standardized unit used to express the global warming potential of various GHGs.
• Reporting and verification. The data is then compiled into a carbon inventory report, used for internal management or reporting to external stakeholders. In some instances, the data is shared with independent auditors to verify its accuracy and credibility.
• Reduction and offsetting strategies. Once they have the compiled data, organizations can go about developing strategies to reduce their carbon footprint using a variety of options, including upgrading equipment, purchasing renewable energy and buying carbon offsets.

Carbon accounting methods, from easy to accurate

Determining carbon emissions is a complex process with many variables. They include the following:

• Activity data and emission factors. With this basic, widely used method, organizations collect activity data and multiply it by appropriate emission factors to calculate carbon emissions.
• Direct measurement. Sensors gather data from equipment operation. While this is the easiest and most straightforward measurement to gather, it does not provide a complete picture.
• Indirect measurement.

  SDGs, Targets, and Indicators

  SDGs Addressed:

  1. SDG 7: Affordable and Clean Energy
  2. SDG 9: Industry, Innovation, and Infrastructure
  3. SDG 11: Sustainable Cities and Communities
  4. SDG 12: Responsible Consumption and Production
  5. SDG 13: Climate Action
  6. SDG 17: Partnerships for the Goals

  Targets Identified:

  • Target 7.2: Increase substantially the share of renewable energy in the global energy mix
  • Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable
  • Target 11.6: Reduce the adverse per capita environmental impact of cities
  • Target 12.5: Substantially reduce waste generation through prevention, reduction, recycling, and reuse
  • Target 13.2: Integrate climate change measures into national policies, strategies, and planning
  • Target 17.16: Enhance the global partnership for sustainable development

  Indicators:

  • Indicator 7.2.1: Renewable energy share in the total final energy consumption
  • Indicator 9.4.1: CO2 emission per unit of value added
  • Indicator 11.6.1: Proportion of urban solid waste regularly collected and with adequate final discharge out of total urban solid waste generated, by cities
  • Indicator 12.5.1: National recycling rate, tons of material recycled
  • Indicator 13.2.1: Number of countries that have communicated the establishment or operationalization of an integrated policy/strategy/plan which increases their ability to adapt to the adverse impacts of climate change, and foster climate resilience and low greenhouse gas emissions development in a manner that does not threaten food production
  • Indicator 17.16.1: Number of countries reporting progress in multi-stakeholder development effectiveness monitoring frameworks that support the achievement of the sustainable development goals

  Analysis:

  1. Which SDGs are addressed or connected to the issues highlighted in the article?

  The following SDGs are addressed or connected to the issues highlighted in the article:

  • SDG 7: Affordable and Clean Energy
  • SDG 9: Industry, Innovation, and Infrastructure
  • SDG 11: Sustainable Cities and Communities
  • SDG 12: Responsible Consumption and Production
  • SDG 13: Climate Action
  • SDG 17: Partnerships for the Goals

  2. What specific targets under those SDGs can be identified based on the article’s content?

  Based on the article’s content, the following specific targets can be identified:

  • Target 7.2: Increase substantially the share of renewable energy in the global energy mix
  • Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable
  • Target 11.6: Reduce the adverse per capita environmental impact of cities
  • Target 12.5: Substantially reduce waste generation through prevention, reduction, recycling, and reuse
  • Target 13.2: Integrate climate change measures into national policies, strategies, and planning
  • Target 17.16: Enhance the global partnership for sustainable development

  3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

  Yes, there are indicators mentioned or implied in the article that can be used to measure progress towards the identified targets:

  • Indicator 7.2.1: Renewable energy share in the total final energy consumption
  • Indicator 9.4.1: CO2 emission per unit of value added
  • Indicator 11.6.1: Proportion of urban solid waste regularly collected and with adequate final discharge out of total urban solid waste generated, by cities
  • Indicator 12.5.1: National recycling rate, tons of material recycled
  • Indicator 13.2.1: Number of countries that have communicated the establishment or operationalization of an integrated policy/strategy/plan which increases their ability to adapt to the adverse impacts of climate change, and foster climate resilience and low greenhouse gas emissions development in a manner that does not threaten food production
  • Indicator 17.16.1: Number of countries reporting progress in multi-stakeholder development effectiveness monitoring frameworks that support the achievement of the sustainable development goals

  Table:

  SDGs	Targets	Indicators
  SDG 7: Affordable and Clean Energy	Target 7.2: Increase substantially the share of renewable energy in the global energy mix	Indicator 7.2.1: Renewable energy share in the total final energy consumption
  SDG 9: Industry, Innovation, and Infrastructure	Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable	Indicator 9.4.1: CO2 emission per unit of value added
  SDG 11: Sustainable Cities and Communities	Target 11.6: Reduce the adverse per capita environmental impact of cities	Indicator 11.6.1: Proportion of urban solid waste regularly collected and with adequate final discharge out of total urban solid waste generated, by cities
  SDG 12: Responsible Consumption and Production	Target 12.5: Substantially reduce waste generation through prevention, reduction, recycling, and reuse	Indicator 12.5.1: National recycling rate, tons of material recycled
  SDG 13: Climate Action	Target 13.2: Integrate Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together. Source: techtarget.com   Join us, as fellow seekers of change, on a transformative journey at https://sdgtalks.ai/welcome, where you can become a member and actively contribute to shaping a brighter future.