Difference between revisions of "Avoided Emissions"
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== Definition == | == Definition == | ||
| − | '''Avoided Emissions''' are [[Greenhouse Gas Emissions]] ''reductions'' that the financed | + | '''Avoided Emissions''' are [[Greenhouse Gas Emissions]] ''reductions'' that the financed [[GHG Project]] produces versus what would have been emitted in the absence of the project (the [[Baseline Emissions]]). As defined in<ref>PCAF (2020). The Global GHG Accounting and Reporting Standard for the Financial Industry. First edition.</ref> |
In the context of the [[GHG Protocol | Standard]], avoided emissions are only from [[Renewable Energy]] and [[Energy Efficiency projects]]. | In the context of the [[GHG Protocol | Standard]], avoided emissions are only from [[Renewable Energy]] and [[Energy Efficiency projects]]. | ||
| − | The TCFD (2017b) asks that avoided GHG emissions through the entire product life cycle should be disclosed by companies but does not specify any guidance on how exactly this should be reported. Measuring avoided emissions at a portfolio level therefore needs profound knowledge of ongoing and future energy efficiency and emission reduction | + | The TCFD (2017b) asks that avoided GHG emissions through the entire product life cycle should be disclosed by companies but does not specify any guidance on how exactly this should be reported. Measuring avoided emissions at a portfolio level therefore needs profound knowledge of ongoing and future energy efficiency and emission reduction projects within the investee companies, as well as an understanding of the relevant business-as-usual scenarios, which, in theory, could be different for every company. <ref>Swiss Sustainable Finance: Focus: Measuring Climate-Related Risks in Investment Portfolios. 2019</ref> |
| − | projects within the investee companies, as well as an understanding of the relevant business-as-usual scenarios, which, in theory, could be different for every company. <ref>Swiss Sustainable Finance: Focus: Measuring Climate-Related Risks in Investment Portfolios. 2019</ref> | ||
| − | + | == Example == | |
| + | Emissions avoided from fossil fuel power production by constructing additional renewable energy, or emissions avoided by reducing land-use change. These emissions are sometimes also called relative emissions, or [[GHG Emission Reduction]] | ||
| + | |||
| + | == See Also == | ||
| + | * [[Baseline Emissions]] | ||
| + | * [[Absolute Emissions]] | ||
== References == | == References == | ||
Latest revision as of 13:23, 3 November 2021
Contents
Definition
Avoided Emissions are Greenhouse Gas Emissions reductions that the financed GHG Project produces versus what would have been emitted in the absence of the project (the Baseline Emissions). As defined in[1]
In the context of the Standard, avoided emissions are only from Renewable Energy and Energy Efficiency projects.
The TCFD (2017b) asks that avoided GHG emissions through the entire product life cycle should be disclosed by companies but does not specify any guidance on how exactly this should be reported. Measuring avoided emissions at a portfolio level therefore needs profound knowledge of ongoing and future energy efficiency and emission reduction projects within the investee companies, as well as an understanding of the relevant business-as-usual scenarios, which, in theory, could be different for every company. [2]
Example
Emissions avoided from fossil fuel power production by constructing additional renewable energy, or emissions avoided by reducing land-use change. These emissions are sometimes also called relative emissions, or GHG Emission Reduction
