Title: Components of a workable net-zero greenhouse gas emission standard

Abstract

The global business environment saw a move towards setting net-zero targets during 2021. Many large corporates have made public net-zero commitments in the absence of a workable standard that can objectively measure the quality of the commitment, and the progress made towards meeting the commitment. This paper covers some of the aspects required for such a workable standard. The analysis presented in the paper is done in the context that many of the foundational concepts in greenhouse gas accounting, mitigation management and emission reduction target setting were developed in the early 2000’s, and are in need of revision in order to remain useful tools in the current global decarbonisation attempts. This paper deals with the critical issues of the role of concepts such as baseline setting, indirect emissions, and avoided emissions in target setting. The work on baseline setting deals with the growing global trend to ignore the principle of common but differentiated responsibilities (CBDR) and shows how this can be integrated in a target setting system. The work on indirect emissions in greenhouse gas emissions, target setting, and the measurement and reporting against targets deals with the fundamental change in principles in greenhouse gas accounting introduced by the ISO organisation in 2018, and the importance thereof. The work on avoided emissions deals with the use of causal chain analysis to prove avoided emissions, as well as the principles and occurrence in the double counting of emissions in the reporting of the indirect emission categories. The paper also deals with the use of offsets in achieving net-zero commitments. The conclusion of the paper is that a fundamental re-think of the use of the greenhouse gas accounting and target setting principles of the early 2000’s is required if a workable net-zero standard is to be developed.