Project Finance GHG Emissions Reporting

From Open Risk Manual


Project Finance GHG Emissions Reporting are the requirements stipulated by the Equator Principles, more precisely Equator Principle 10: Reporting and Transparency about the quantification and reporting of a Project in the context of Project Finance.

GHG emissions should be calculated in line with the GHG Protocol14 to allow for aggregation and comparability across Projects, organisations and jurisdictions. Clients may use national reporting methodologies if they are consistent with the GHG Protocol. The client will quantify Scope 1 and Scope 2 Emissions.

The EPFI will require the client to report publicly on an annual basis on GHG emission levels (combined Scope 1 and Scope 2 emissions) and GHG efficiency ratio, as appropriate, during the operational phase for Projects emitting over 100,000 tonnes of CO2 equivalent annually.

Clients will be encouraged to report publicly on Projects emitting over 25,000 tonnes.

Public reporting requirements can be satisfied via host country regulatory requirements for reporting or environmental impact assessments, or voluntary reporting mechanisms such as the Carbon Disclosure Project, where such reporting includes emissions at Project level.

Where appropriate, EPFIs will encourage clients to publish a summary of the alternatives analysis as part of the ESIA. In some circumstances, public disclosure of the full alternatives analysis or Project-level emissions may not be appropriate.