Greenhouse gas inventory in accordance with ISO 14064-1

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Greenhouse gas inventory in accordance with ISO 14064-1

What is a greenhouse gas inventory?

There are various definitions of a greenhouse gas inventory. Under Government Decree No. 06/2022/ND-CP, issued on January 7, 2022, on greenhouse gas emissions mitigation and ozone layer protection:

“A greenhouse gas (GHG) inventory involves collecting information and data on greenhouse gas emission sources, calculating greenhouse gas emissions and removals within a defined boundary and for a specific year, using methods and procedures issued by the competent authority.”

This is considered the official definition of a greenhouse gas inventory and can be used as a basis for reviewing and checking your inventory activities.

What are greenhouse gases (GHGs)?

ISO 14064-1 defines greenhouse gases as gaseous constituents of the atmosphere, both natural and anthropogenic, that absorb and emit radiation at specific wavelengths within the spectrum of infrared radiation emitted by the Earth’s surface, atmosphere and clouds.

NOTE: GHGs include carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulfur hexafluoride (SF6).

In simple terms, greenhouse gases absorb long-wave infrared radiation from the Earth’s sun-warmed surface and redistribute heat back toward the Earth, producing the greenhouse effect. Major greenhouse gases include water vapour, CO2, CH4, N2O, O3 and CFCs. Greenhouse gases contribute to global warming. Preparing a GHG inventory is part of businesses’ environmental management obligations.

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Why prepare a greenhouse gas inventory?

Organizations need to prepare greenhouse gas inventories for the following reasons:

1. Under the Law on Environmental Protection 2020 (Law No. 72/2020/QH14), enterprises included in the list of greenhouse gas-emitting facilities subject to inventory requirements must prepare GHG inventories.

(Click the following link to download the list of greenhouse gas-emitting facilities required to prepare GHG inventories)

2. Under Clause 2, Article 10 of Circular No. 96/2020/TT-BTC on information disclosure in the securities market, and Section 6.1, Part II, Appendix IV, public companies must disclose their total greenhouse gas emissions and emissions reduction initiatives when submitting financial reports.

3. Requirements of the Higg Index (Higg FEM 3.0).

4. Textile Exchange’s Global Recycled Standard (GRS 4.0).

5. The Global Organic Textile Standard (GOTS 6.0).

6. A company’s need to disclose greenhouse gas emissions, emissions reduction initiatives and its environmental protection responsibilities.

Sources of greenhouse gas emissions:

ISO 14064-1 identifies six groups of greenhouse gas emission sources:

Group 1: Direct GHG emissions and removals.
Group 2: Indirect GHG emissions and removals from imported energy.
Group 3: Indirect GHG emissions and removals from transportation.
Group 4: Indirect GHG emissions and removals from products used by the organization.
Group 5: Indirect GHG emissions and removals associated with the use of products from the organization.
Group 6: Indirect GHG emissions and removals from other sources.

References on greenhouse gas emission sources and corresponding emission factors

Greenhouse gas emission factors under Decision No. 2626/BTNMT

Vietnam electricity grid CO2 emission factor for 2021

Benefits of managing greenhouse gas emissions:

Meet legal requirements under the Law on Environmental Protection 2020 and implementing decrees and circulars on GHG inventories, including Decision No. 01/2022/QD-TTg listing sectors and facilities required to prepare inventories, and Decree No. 06/2022/ND-CP on greenhouse gas emissions mitigation and ozone layer protection.
Demonstrate the company’s commitment to reducing greenhouse gas emissions and protecting the environment.
Meet the environmental requirements of customers and other interested parties, including expectations for GHG inventories, emissions reduction and environmental protection.

GHG inventory consulting — guidance on quantifying and reporting emissions in accordance with ISO 14064-1

To help businesses prepare greenhouse gas inventories as required by law, ITVC Global provides GHG inventory consulting and guidance on quantifying and reporting emissions in accordance with ISO 14064-1. The inventory process comprises the following eight basic steps:

(Based on Circular No. 38/2023/TT-BCT of December 27, 2023, issued by the Ministry of Industry and Trade, providing technical regulations on measuring, reporting and verifying GHG emissions mitigation and preparing GHG inventories in the industry and trade sector.)

Step 1: Define the scope of the facility-level GHG inventory

A facility-level GHG inventory covers emission sources under the facility’s management, specifically:

Direct emission sources:
Emissions from stationary sources, including fuel combustion in fixed equipment such as boilers, kilns, burners, turbines, heaters and incinerators.
Emissions from mobile sources, including fuel combustion in transport equipment;
Industrial process emissions from physical or chemical processes that generate GHGs within the facility’s production lines.
Fugitive emissions from machinery, equipment, mineral extraction or mineral processing.
GHG emissions from refrigerants in equipment and from refrigerant production and business activities.
Emissions from waste collection, management and treatment.
Indirect emission sources:
Emissions from electricity consumption;
Emissions from the use of steam energy.

Step 2: Collect activity data for the facility-level GHG inventory

The facility collects, manages and retains activity data relating to emission sources under its management.
The activity data required for facility-level GHG inventories are specified in Section 1, Appendix II of the Circular.

Step 3: Select facility-level GHG emission factors

Facilities calculate and determine GHG emission factors appropriate to their technology and production processes in accordance with the 2006 IPCC Guidelines and obtain approval from the competent authority.
Where Clause 1 of this Article does not apply, facilities use the emission factors in the inventory emission factor list published by the Ministry of Natural Resources and Environment.
Where emission factors are not specified under Clause 2 of this Article, facilities apply GHG emission factors from IPCC guidance.

Step 4: Apply facility-level GHG inventory methods

Calculation methods for GHG-emitting activities are provided in Section 2, Appendix II issued with the Circular.
Formula for calculating GHG emissions

KNK_i = AD_i* EF_i

Where:

i is the type of greenhouse gas
KNK_i is the quantity of emissions of GHG i (tonnes)
AD_i is the activity data for GHG i
EF_i is the emission factor for GHG i
Formula for calculating a facility’s total GHG emissions:

TPT= ∑_i KNK_i * GWP_i

Where:

TPT is the facility’s total GHG emissions (tonnes CO2e)
GWP_i is the global warming potential of GHG i applied in accordance with the latest IPCC guidance

Step 5: Quality control of the facility-level GHG inventory

Facility-level GHG inventory quality control follows Subclause 6.1.2, Clause 6 of the national standard TCVN ISO 14064-1:2011, Part 1: Specification with guidance at the organization level for quantification and reporting of greenhouse gas emissions and removals. It includes the following steps:
Identify and verify the responsibilities and authority of personnel responsible for implementing the GHG inventory;
Identify, provide and verify appropriate training for GHG inventory team members;
Identify and verify GHG sources and sinks;
Select and review quantification methodologies, including activity data, emission factors and GHG types appropriate to the intended use of the inventory;
Review the application of quantification methodologies to ensure consistency across multiple production facilities;
Develop and maintain a data collection system;
Check the application of GHG inventory methods for consistency across facilities;
Use, maintain and verify measuring equipment;
Conduct internal audits and periodic technical reviews;
Periodically review opportunities to improve information management processes.

Step 6: Assess uncertainty in the facility-level GHG inventory

Uncertainty in facility-level GHG inventory results is assessed in accordance with Article 11 of this Circular.

Step 7: Recalculate facility-level GHG inventory results

The facility must explain and recalculate inventory results for previous periods when any of the following occurs:
A change in the GHG inventory boundary;
A change in the GHG inventory methodology that affects the most recent inventory results;
A change in GHG sources or emission factors.
The facility must include the recalculation of the previous period’s GHG inventory results in its facility-level inventory report for the current reporting period.