Baseline Emissions in the Context of a Carbon Credit Project
For carbon credit projects, baseline emissions are meticulously calculated to predict what the emissions level would be without the project's intervention. This calculation is vital, as it underpins the project's legitimacy, ensuring that the carbon credits it generates represent true, additional emission reductions or removals.
Baseline Emissions In the Context of a Company's Emissions and Net Zero Journey
Companies embarking on a net zero journey utilise baseline emissions to benchmark their current greenhouse gas emissions. Establishing this baseline is a first step in setting clear, measurable goals for emissions reduction, enabling companies to track their progress over time and adjust strategies as needed to meet their sustainability targets.
How to Set a Baseline?
Organisations begin by collecting data on past emissions. This includes direct emissions from owned or controlled sources (Scope 1), indirect emissions from the generation of purchased electricity (Scope 2), and, if relevant, all other indirect emissions that occur in the value chain of the company (Scope 3).
Some of the key frameworks and standards that deal with setting baselines include: The Greenhouse Gas Protocol (GHG Protocol), ISO 14064-1, Intergovernmental Panel on Climate Change (IPCC), and Science-Based Targets initiative (SBTi).
Why is it important to set a baseline?
Baselines play a crucial role in the fight against climate change. They allow for the quantification of emissions reduction achievements, provide transparency in sustainability reporting, and help stakeholders make informed decisions. By establishing a clear starting point, companies and projects can track and show real progress towards their environmental goals.