Choosing the right emission factors is crucial for measuring emissions accurately. In the EU #cbam context, this will become even more relevant. After 2024, third-country operators will have to follow the EU method to monitor the emissions of the facilities where they produce the #cbam goods. EU reporting declarants need to understand both what is being measured and how the reported values are calculated to avoid adding incorrect information to their #cbam reports and expose themselves to potential penalties.
1. What is an emission factor?
An emission factor represents the amount of greenhouse gas emissions that a particular activity generates. It can be expressed in various units, both in the numerator (the amount of emissions) and the denominator (the activity).
2. How is an emission factor determined?
Emission factors can be determined in a variety of ways, such as through direct measurements, research studies, and statistical analysis. Once determined, emission factors are often reviewed and updated periodically to ensure they remain accurate as technologies, fuels, and practices evolve. Entities such as the U.S. Environmental Protection Agency (EPA), the UK Department for Environment, Food and Rural Affairs (UK-Defra), or the Intergovernmental Panel on Climate Change (IPCC) provide databases of emission factors for different activities and sources.
3. What rules does the EU #cbam introduce for determining emission factors?
Under the EU #cbam, the term 'emission factors' is defined as "the average emission rate of a greenhouse gas relative to the activity data of a source stream assuming complete oxidation for combustion and complete conversion for all chemical reactions". It falls under the broader category of 'calculation factors', which also encompasses net calorific value, preliminary emission factor, oxidation factor, conversion factor, carbon content, and biomass fraction.
If third-country operators opt for the calculation-based methodology to monitor their emissions, they have three methods at their disposal to determine which calculation factors, including emission factors, to apply:
- The use of standard values;
- Relying on proxy data;
- The use of values derived from laboratory analysis;
Although the regulation doesn't mandate one in particular, it advocates for the use of laboratory analyses for all major source streams, and recommends limiting the use of standard values for source streams which correspond to minor emission quantities.
#cbam #carbonaccounting #emissions #data #eu #carbonpricing
