Power of carbon accounting in the low-carbon fuel industry Why life-cycle assessments are essential for renewable diesel and sustainable aviation fuel producers to meet ESG and net-zero goals
Kristine Klavers EcoEngineers
I n today’s carbon-conscious world, carbon accounting is essential for industries to measure, manage, and reduce greenhouse gas (GHG) emissions. It goes beyond compliance, helping organisations meet their environmental, social, and governance (ESG) and net-zero goals, optimise production processes, and tap into financial incentives that drive return on investment (ROI). Emerging climate regulations, low-carbon fuel markets, subsidies, and tax credits offer significant opportunities to support companies and their stakeholders on their ESG journey, making literacy in carbon accounting and carbon markets all the more critical. Understanding carbon accounting and exploring the challenges involved is important for achieving compliance and strategic goals. As businesses market low- carbon products, they must be confident and transparent with
Figure 1 Many industries are focusing on reducing the carbon intensity (CI) of their products Source: EcoEngineers
success in an increasingly regulated marketplace requiring minimum CI scores that are verified. This article is not meant to be a complete analysis of LCAs, but rather it is meant to reinforce their importance in the context of carbon accounting. Foundations of carbon assessments LCAs are the foundation of product-level carbon accounting. They are a systematic and comprehensive method for evaluating the environmental impact of a product, service, or system, from its inception to its end-of-life (cradle-to-grave). LCAs are a tool used to ensure
the results they communicate to stakeholders, including the public, clients, and financial entities (see Figure 1 ). A key to unlocking the power of carbon accounting is life-cycle assessments (LCAs). LCAs are particularly important in determining the carbon intensity (CI) of low-carbon renewable fuels such as renewable diesel (RD) and sustainable aviation fuel (SAF). Understanding carbon accounting enables businesses to communicate their low-carbon calculations effectively to stakeholders, positioning them for
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