Absolute Emissions

From Open Risk Manual

Definition

Absolute Emissions are Greenhouse Gas Emissions that are generated and sequestered as a result of a project (or an investment attributed to a financial institution’s lending and investing activity) [1], [2], expressed in (tonnes CO2 eq)

There are two types of activities used in the absolute GHG accounting approach: Physical Activity and Economic Activity. Physical activity is relevant when primary data is available, and economic activity is relevant when no primary data is available. Physical activity is the physical act that generates or sequesters emissions. When primary data is not available, data on economic activities can be used.

Example

GHG emissions produced by a company or project due to agricultural expansion, the construction of a windfarm or the sequestration of carbon in a forestry plantation. These emissions are referred to as gross emissions.

Issues and Challenges

  • The concept is juxtaposed to relative emission reduction / increase metrics defined versus Baseline Emissions

See Also

References

  1. PCAF (2020). The Global GHG Accounting and Reporting Standard for the Financial Industry. First edition.
  2. FMO, Absolute GHG Accounting Approach for Financed Emissions, 2018