As of November 15, 2022

Draft Contents for ASEAN Guidelines on Facility-level GHG Measurement andReporting (Semi-Final Version)
Contents
Abbreviations ................................................................................................................................................................................................ 2
I.

Background and Objectives............................................................................................................................................................ 5
1.

The Objectives of the Guideline .............................................................................................................................................. 52.

Key Concept and Structures of the Guideline ................................................................................................................... 7

II.

What is the facility-level GHG Reporting System? ................................................................................................................ 8
1.

The Objectives of the System ................................................................................................................................................... 82.

Essential Structure .....................................................................................................................................................................133.

Key considerations of facility-level GHG reporting ......................................................................................................14

III. Methodologies for the Measurement of GHG Emissions .................................................................................................16
1.

Target sectors ...............................................................................................................................................................................16

2.

Scope of GHG emissions measurement .............................................................................................................................18

3.

Methodologies for GHG emissions measurements.......................................................................................................21

4.

Quality of reporting and Quality Control activities ......................................................................................................26

5.

Relationship with national GHG inventories...................................................................................................................27

IV. Essential tools, procedure and institutional arrangements of facility-level GHG Reporting System ...........30
1.

Reporting format ........................................................................................................................................................................30

2.

Reporting line...............................................................................................................................................................................32

3.

Providing feedback ....................................................................................................................................................................35

4.

Other matters (criteria for designated emitters, frequency and cycle of reporting, etc.)............................35

V.

Common steps for developing a reporting system ............................................................................................................36
1.

Starting the development of a GHG M&R system ..........................................................................................................362.

Inter-ministerial coordination ..............................................................................................................................................39

3.

Private sector engagement .....................................................................................................................................................40

Annex 01- Singapore’s Carbon Tax .....................................................................................................................................................48
1.

Background .........................................................................................................................................................................................48

2.

Key Steps ..............................................................................................................................................................................................49

3.

Roles and Responsibility of Key Stakeholders .....................................................................................................................52

4.

Preparation for carbon pricing implementation ................................................................................................................54

5.

References ...........................................................................................................................................................................................54

Glossary of Terms ......................................................................................................................................................................................55

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Abbreviations
AD

Activity Data

AFOLU

Agriculture, Forestry and Other Land Use

AMS

ASEAN Member States

ASEAN

Association of Southeast Asian Nations

AR

Assessment Report

CDM

Clean Development Mechanism

CDP

Carbon Disclosure Project

CH4

MethaneCO2

Carbon dioxide

COD

Chemical Oxygen Demand

COP

Conference of the Parties

CPA

Carbon Pricing Act

ECA

Energy Conservation Act

EDMS

Emissions Data Monitoring and Analysis

EF

Emission Factor

ETF

Enhanced Transparency Framework

EU-ETS

European Union Emissions Trading System

GHG

Greenhouse Gas

GWP

Global Warming Potential

IPCC

Intergovernmental Panel on Climate Change

IPPU

Industrial Processes and Product Use

ISOInternational Organization for Standardization

JCM

Joint Crediting Mechanism

HFC

Hydrofluorocarbon

MOU

Memorandum of Understanding

MPG

Modalities, Procedures and Guidelines

M&R

Measurement & Reporting

MRV

Measurement, Reporting & Verification

NCCS

National Climate Change Secretariat

NDC

Nationally Determined Contributions

NEA

National Environment Agency

NF3

Nitrous trifluoride

N2O

Nitrous oxide

PDCA

Plan-Do-Check-Act

PFCs

Perfluorocarbons

QA

Quality Assurance

QC

Quality Control2

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TACCC

Transparency, Accuracy, Completeness, Comparability, Consistency.

TMG

Tokyo Metropolitan Government

UI

User-Interface

UNFCCC

United Nations Framework Convention on Climate Change

AD

Activity Data

AFOLU

Agriculture, Forestry and Other Land Use

AMS

ASEAN Member States

AR

Assessment Report

ASEAN

Association of Southeast Asian Nations

CDM

Clean Development Mechanism

CDP

Carbon Disclosure Project

CDP

Carbon Disclosure Project

CH4

MethaneCO2

Carbon dioxide

COD

Chemical Oxygen Demand

COP

Conference of the Parties

CPA

Carbon Pricing Act

ECA

Energy Conservation Act

EDMS

Emissions Data Monitoring and Analysis

EF

Emission Factor

ETF

Enhanced Transparency Framework

EU-ETS

European Union Emissions Trading System

GHG

Greenhouse Gas

GWP

Global Warming Potential

HFC

Hydrofluorocarbon

IPCC

Intergovernmental Panel on Climate Change

IPPU

Industrial Processes and Product Use

ISOInternational Organization for Standardization

JCM

Joint Crediting Mechanism

M&R

Measurement & Reporting

MOU

Memorandum of Understanding

MPG

Modalities, Procedures and Guidelines

MRV

Measurement, Reporting & Verification

N2O

Nitrous oxide

NCCS

National Climate Change Secretariat

NDC

Nationally Determined Contributions

NEA

National Environment Agency

NF3

Nitrous trifluoride3

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PDCA

Plan-Do-Check-Act

PFCs

Perfluorocarbons

QA

Quality Assurance

QC

Quality Control

SBT

Science Based Targets

TACCC

Transparency, Accuracy, Completeness, Comparability, Consistency.

TMG

Tokyo Metropolitan Government

UI

User-Interface

UNFCCC

United Nations Framework Convention on Climate Change

4As of November 15, 2022

I.

Background and Objectives<<For Government and Private Sector>>

1.

The Objectives of the Guideline[Introduction]
The objective of the Guideline is to support the establishment of facility level GHG measurement
and reporting systems (hereafter referred to as GHG reporting systems) for ASEAN Member States’
governments and private sector stakeholders in the measurement and reporting of facility-level
GHG emissions.
Since the use of the term “Measurement, Reporting and Verification (MRV)” in the Bali Action Plan
which was adopted by the COP in 2007, the UNFCCC and the Paris Agreement have developed andadded guidance on MRV (for example, Decision 1/CP.13 on Bali Action Plan and Decision 21/CP.19
on general guidelines for domestic measurement, reporting and verification of domesticallysupported nationally appropriate mitigation actions by developing country Parties). Internationally,“MRV” generally means submission of national reports (e.g., national communications, biennial
update reports, or biennial transparency reports) associated with national GHG inventory and theprogress of achieving national climate actions. In this context, in addition to the fact that Verification
may be required to different degrees for different purposes, the MRV system for GHG emissions at
facility level covered by these Guidelines may or may not require Verification, depending on the
country. However, this Guideline does not provide any steps on how to conduct verification of facilitylevel GHG emissions. Therefore, this Guideline refers to the Measurement and Reporting (M&R)
system as the common element.
In the context of domestic arena, there are still various types of “M&R” systems. Sectoral-level M&R
often refers to tracking the respective emissions of an entire sector, such as energy, IPPU, waste,agriculture, forestry and other land use (AFOLU). The sector-level M&R is often based on statistical
data to inform the general trend of emissions, and often to assess the degree of effectiveness ofsectoral mitigation policies.
The facility-level M&R is based on GHG emissions of designated facilities such as a power plant or afactory, whereby emitters can revisit their GHG emissions resulting from economic activities andconsider possible ways to reduce future emissions. Sometimes, this term has been used with“corporate-level M&R” interchangeably, however, “corporate-level M&R” can involve multiple
facilities. The project-level M&R covers GHG emissions within a boundary specific to a project. It isbasically used to assess the emission reduction of projects, such as those under the Clean
Development Mechanism (CDM) or Joint Crediting Mechanism (JCM) projects, which include5As of November 15, 2022
issuance of carbon credits for offsetting purposes.
In recent years, organizations tend to assess their carbon footprint voluntarily using different
Guidelines such as the GHG Protocol, ISO 14064, IPCC Guideline, etc., to meet different objectives (e.g.,
at the request of stock exchanges, shareholders or investors).
M&R of GHG emissions at the facility level, on which this Guideline focuses, will motivate the facilities
to contribute to the country NDCs under the Paris Agreement and the carbon markets by applying
mitigation actions to reduce their current GHG emissions. However, M&R of GHG emissions at thefacility level is subject to various policy considerations. It is therefore up to each country to decide
the purposes for which M&R of GHG emissions at facility level will be implemented.
Under the first phase of the PaSTI-JAIF project, the uptake of M&R for preparing GHG inventories wasanalyzed on three dimensions: i) At national level; ii) At sectoral and policy levels; and iii) At thefacility/installation level. The survey showed that ASEAN Member States (AMS) were at different
stages of development and levels of readiness for implementing M&R at the facility/installation level,
ranging from non-existent to fully implemented. In particular, many AMS have strong willingness toengage the private sector in climate change mitigation while some of them are interested to develop
domestic GHG measurement and reporting systems targeting the private sector, together with theneed to share relevant knowledge and experiences.
As some countries have not yet started to fully develop their GHG M&R systems, there is a need-toknow the steps to be taken while developing GHG M&R systems, and the possibility to make use of
the MRV experiences of other countries. This Guideline sets out the components to be included; andthe steps to be followed by administrative officials in AMS when establishing a national mandatory
or voluntary GHG M&R system.
Please note that the Guideline is not binding on the current system in any AMS or the GHG M&R
system to be established in the future, and those are left to the discretion of each country.
Objectives of the Guideline are as follows:✓

To share standard steps and procedures for developing facility level GHG reporting system for
AMS;✓

To provide useful prototypes, formats, and institutional models for a GHG reporting system; and✓To highlight key elements, including consistency with international standards, robustness of
GHG calculation, and scalability for other relevant systems such as carbon pricing mechanisms,
while promoting gradual improvement and capacity building.

The Guideline will provide guidance for operating a pilot GHG reporting system for demonstration.
It is expected that those in charge of M&R will be able to use the Guideline in order to establish a6

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facility level M&R system for GHG emissions, and finally be able to implement such a system. In
addition, it is expected to be an opportunity for the private sector to learn the basics of GHG emissions
M&R systems as well as potentially create opportunities for the private sector to be involved in thedevelopment of national M&R systems.
2.

Key Concept and Structures of the Guideline
This section provides a brief introduction to the chapters in this report.
Chapter 2 introduces the generic image of the facility-level GHG M&R System, including objectives(benefits for the private sector and the governments), institutional structure and essential modality
and procedure.
Chapter 3 provides an understanding of the target GHGs, the target sectors that emit GHGs and themethodologies for calculating GHG emissions. The methodology for calculating GHG emissions
includes references to various methodologies, including CDM, ISO 14064, GHG protocol, Singapore’s
carbon tax, Japan’s Mandatory GHG Accounting and Reporting System and refers to the philosophy
behind the construction of the methodology.
Chapter 4 enhances the understanding of the criteria for entities that emit GHGs, the reporting
content, and the documents that serve as a template for reporting. In developing a reporting system,
it will also focus on the benefits that can be gained by ensuring consistency with other reporting
systems, such as energy use monitoring systems.
Chapter 5 introduces the steps within an administrative body to establish a GHG emission reporting
system, such as taking stock of the existing relevant legal and policy framework. These steps include
not only the steps to be taken within an administrative body like one ministry, but also theengagement of private entities in the establishment of the system, and the coordination with otherrelevant ministries.
As these chapters are inter-related, you are expected to refer to each of them. The chart below
explains in detail how they relate to each other.

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II. What is the facility-level GHG Reporting System?
<<For Government and Private Sector>>[Introduction]
As a starting point, this chapter introduces the generic image of a facility-level GHG Measurement
and Reporting System, including objectives (benefits for the private sector and the governments),
institutional structure and essential modality and procedure.

1.

The Objectives of the System
The main objective of the facility-level GHG reporting system is to provide transparency on GHG
emissions at individual GHG emitting facilities and corporates, and to facilitate the emitters to reduce
the GHG emissions caused by their economic activities. The system can be introduced either by thegovernment or as a program by a group of corporates.
Here, the “system” means a set of institutional guidance and procedures of GHG reporting according
to which facilities or entities are required to measure and report their GHG emissions to the systemowners. The system is usually governed by the government based on legal designation or byvoluntary system owners (secretariat), which provides facilities with terms and conditions ofparticipation in the voluntary system. The “system” sometimes means an electronic platform where
facilities can submit their report to the system owners. In order to differentiate the institutional
system and the electronic vehicle, these Guidelines call the latter as “electronic reporting system”.
As illustrated in Figure 1, some of the activity data1 collected to assess the GHG emissions of facilities
can be used to prepare the GHG inventory of the country. Country specific/facility-specific emission
factors developed under the MRV system may also be used to develop the GHG inventory using higher
tier approaches (e.g., modelling). Further, governments may use the emissions of the facilities tocreate the basis for trading the GHG emission reductions 2 and developing carbon pricing
mechanisms, i.e., carbon tax, emissions trading scheme, and others. As these schemes will require
foundational data of periodic GHG emissions for imposing obligation, the GHG reporting systemcreates an enabling environment for the governments to consider such an extended intervention.

Part of the information required for GHG inventory preparation can be collected from the M&R system and further information on available
data in the M&R system is reported in section 3.1 – Target Sectors
2 Estimated GHG emissions of facilities can be used to decide the CAP of ETS and tax base of carbon tax when planning and implementing the
CPIs.
1

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If facilities are interested in voluntary corporate reporting systems such as Science-Based Targets(SBT), Carbon Disclosure Project (CDP), etc., the facility-level MRV system will be a great asset tomaintain the sustainability of the reporting system3. Also, as an essential aspect of contemporary
economic activities, disclosure of GHG emissions is required at various times. These include thedisclosure requests to producers and service suppliers in a supply chain, the listing of stocks in acertain market segment of stock exchange, and other occasions.
Moreover, an M&R system provides the inputs to develop climate change policy, energy efficiency
policy, GHG reduction strategy, etc. at the facility, sector, and country levels.

3

Part of the information required for SBT, and CDP can be collected from the M&R system9As of November 15, 2022

Figure 1: Linkage of proposed Guideline with international and national reporting requirements 4

4 Activity data relevant to energy sector may not be collected for GHG Inventory.

10

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A) Expected outputs[For the private sector]⚫

The facility-level GHG reporting system will provide a Plan-Do-Check-Act (PDCA) cycle for GHG
emitters at facility level to understand and revisit their own emissions, with a view to reduce
them.

⚫

In the recent trends, by participating in facility-level GHG reporting systems, corporates aremeeting requirements in the supply-chain by their business partners, increasing
competitiveness, and in some cases, obtaining better access to Environmental, Social andGovernance (ESG) investments5.

[For the governments]⚫

The facility-level GHG reporting system will provide access to bottom-up data, directly reported
by facilities.

⚫

It will help the governments to develop more effective policies and measures targeting specificgroups of GHG emitters (Once the data are verified)

Data at the national GHG inventory are based more on statistics, and in many cases, they have amacro-perspective (for example, GHG emissions in the energy sector are based on the amount ofimported fuels), and they are not always accurate in elaborating a policy to lead GHG reduction in a
specific economic sector. On the other hand, the facility-level GHG reporting system will provide abreakdown of emissions and historical data of individual facilities, which enable analysis byhighlighting trends of certain groups/sub-sectors, identifying root causes of emissions, andelaborating potential solutions.
B) Potential benefits, providing foundation for extended schemes with scalability
The facility-level GHG reporting system can provide a foundation for extended interventions,
including introducing and linking with other indicated activities such as carbon pricing, disclosure,stock exchange etc.
As the system provides specific data and information, emission standards, incentives anddisincentives can be introduced. Also, awareness raising and capacity-building through consultations
with emitters may be useful. [See “Column 1” on the case of the Tokyo Metropolitan Government and
its GHG reporting system under the Environmental Protection Ordinance]

In some stock markets, sustainability index criteria are introduced, requiring disclosure of corporates’ GHG emission amount.
This can be a variation of facility-level GHG reporting, which is closely linked with ESG investments.
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Column 1
GHG reporting system under the Global Warming Action Planby the Tokyo Metropolitan Ordinance on Environmental Protection
In 2002, the Tokyo Metropolitan Government (TMG) issued the Ordinance on Environmental
Protection to oblige corporates to measure and report their GHG emissions and submit theiremissions reduction targets. Also in 2005, the TMG strengthened the system by adding its
mandate to provide administrative guidance and advice to respective corporates, for the purposeof leading them to develop and implement GHG emissions reduction efforts. For example,
reporting corporates are provided information on comparison with other corporates in the samebusiness sector and become aware of the ranking of their carbon intensity per energy
consumption. Also, the TMG often organizes demonstration workshops or training by sector (e.g.
hotels, retailers, factories, etc.,) for technical staff members of reporting corporates to share anddiscuss effective ways to reduce GHG emissions. Also, in the reporting system, corporates are
required to report not only the GHG quantities but also the equipment specifications anddurability. This has enabled the TMG to provide specific recommendations to corporates toconsider introducing more energy-efficient equipment along with their equipment updating
cycles.
As a result of the series of efforts, the TMG’s energy-based GHG emissions gradually decreased asshown in figure X. Also, based on these practices, the TMG initiated an emissions trading scheme(Cap and Trade system) for mandatory participation by large corporates in 2010, while small andmedium sized corporates continued to be under the mandatory reporting system.

Figure 2:(left)- Changes in the final energy consumption and CO2 emissions in Tokyo.
Figure 3:(right)- Changes in GHG emissions per unit/floor area in Tokyo and Japan’s average(source: Source: City-led building energy efficiency Tokyo and Other Cities, Bureau of Environment, TMG)

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2.

Essential Structure
The essential structure of a GHG reporting system (a case of introducing the system by government
legislation) can be as follows:

Figure 4: Generic structure and steps for facility-level GHG reporting

As shown in Figure 4, the generic structure of the facility-level GHG reporting is as follows.
⚫

Step 1: Designated GHG emitters will measure their own emissions at facility-level using GHG
measurement methodologies issued by the government.

⚫

Step 2: Designated GHG emitters will fill out the calculated GHG emissions amount in a format
given by the government and submit the report to the government.

⚫

Step 3: Line ministries in charge of the sector will receive the submitted reports and forward
those to the focal point ministry.

⚫

Step 4: The focal point ministry will provide feedback to the designated emitters, including
advice for potential reduction, as well as improvement of reporting.

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Column 2
Singapore’s Carbon Tax

Figure 5: Key steps of Singapore’s Carbon tax*Detailed information on Singapore’s Carbon tax is in Annex 01

3.

Key considerations of facility-level GHG reporting

The following are the key considerations under this reporting system. They are explained in the next section.
⚫

Methodologies for measurement of GHG emissions (Chapter III)⚫

Reporting format (Chapter IV)⚫

Line of reporting in the government (Chapter IV)⚫

Ways to provide feedback, including publicization (Chapter IV)

Figure 6 and 7 below indicate the process of establishing a voluntary and mandatory M&R system respectively.
Relevant chapter numbers are shown in the white circles in the diagram. Further, they are provided quick
overview of each chapter which is intended for government or private sector.
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Figure 6: Process of establishing a voluntary M&R system

Figure 7: Process of establishing a mandatory M&R system15As of November 15, 2022

III. Methodologies for the Measurement of GHG Emissions<<For Government and Private sectors>>
Introduction: This chapter explains the measurement of GHG emissions using the M&R Guideline. Target
sectors, scope of GHG emission measurements, Gases covered, methodologies for GHG emission
measurements, and issues related to estimation of GHG emission amounts are explained in detail.
Further, it will describe how to maintain the quality of reporting GHG emissions using Transparency,
Accuracy, Completeness, Comparability, Comparability (TACCC) principle. The Guideline also addresses
the issues of consistency and coordination of the administrative divisions of each country and those
based on the classification of national GHG inventories under the IPCC Guidelines or the Enhanced
Transparency Framework (ETF) under the Paris Agreement.
1.

Target sectors

The English word “sector” can be used in different ways when discussing GHG emissions. In this document,
unless other words are used (such as “private sector”), the word “sector” would mean one of the five national
GHG inventory sectors (Energy, Industrial Processes and Product Use (IPPU), Agriculture, Forestry and Other
Land Use (AFOLU), and Waste) as defined in 2006 IPCC Guidelines. Each sector consists of several categories(The term “sub-sector” used in the report “Road Map for Designing Facility Level GHG M&R Guideline for ASEAN
region” is equivalent or similar to “category” here).
Figure 8 below shows an example of a hierarchical sector-category-subcategory structure defined for the
Energy sector in 2006 IPCC Guidelines. Each country doesn’t have to follow this classification; however, it isrecommended to develop a set of hierarchical classification of emission categories to reduce risk of doublecounting or omission of emissions. Other classification systems may be developed based on, for example, areasof administration of ministries/departments.
Each country must decide on target sectors to be reported. Fuel combustion under energy sector will be coveredin all M&R systems. The IPPU sector - cement production in particular, can also be a significant source of GHG
emissions. Industrial waste data can be informative for national GHG inventory, while it will pose substantial
technical challenges for reporting facilities. Agriculture and Forestry can be significant sectors in AMS.
Consideration and consultation are required on whether facility-level reporting is necessary (no other feasible
options available), significant (compared to the national total), efficient (workload for reporters andadministration is minimized), and technically feasible to cover the sectors for National GHG inventory and/or
mitigation monitoring purposes.
When defining the target sectors, existing reporting requirements within the country should be reviewed.
Harmonization of reporting requirements is necessary to minimize the burden on both reporting facilities and16As of November 15, 2022
administration. In particular, close coordination with energy audit systems is critical.

Figure 8: Categorization of GHG emissions in the energy sector, ramified into subsectors

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2.

Scope of GHG emissions measurement

Scope of GHG emissions measurements must be defined, typically into project level, facility level, local andnational measurements. Emission inventories of facility, local or national level accounts for all emissions (andremovals if appropriate) within the geographical boundary, while project level measurement is interested inemission reduction amount from a series of interventions (e.g. energy saving, gas recovery and so on). This
Guideline focuses mainly on facility level inventory. Some readers of these Guidelines may be familiar with the
Clean Development Mechanism (CDM) or the Joint Crediting Mechanism (JCM), where project levelmeasurements are performed. It should be noted that emission reduction amount may be reported
additionally, however, it will not be discussed further in this Guideline.
When thinking about emissions within the geographical boundary, emissions from burning fuels in theproperty is a straightforward example. Such emissions are called direct emissions. It is also natural to consider
that a facility is responsible for some emissions outside the location, such as consumed grid electricity that are(partially) supplied from fire power plants. Those are called indirect emissions. For further classification, theidea of scopes 1, 2 and 3 as defined in the GHG protocol has become popular currently. Scope 1 means
emissions attributed to sources which are owned or controlled by the organization. According to theGreenhouse Gas Protocol, scope 1 emissions at company level can be summarized as follows:• Generation of electricity, heat, or steam. These emissions result from combustion of fuels in stationary
sources, e.g., boilers, furnaces, turbines• Physical or chemical processing. Most of these emissions result from the manufacture or processing ofchemicals and materials, e.g., cement, aluminum, adipic acid, ammonia manufacture, and waste processing• Transportation of materials, products, waste, and employees. These emissions result from the combustionof fuels in company owned/controlled mobile combustion sources (e.g., trucks, trains, ships, airplanes,
buses, and cars)• Fugitive emissions. These emissions result from intentional or unintentional releases, e.g., equipment
leaks from joints, seals, packing, and gaskets; methane emissions from coal mines and venting;hydrofluorocarbon (HFC) emissions during the use of refrigeration and air conditioning equipment; andmethane leakages from gas transport.
Scope 2 includes some indirect emissions. These are emissions associated with commodities called secondary
energy such as electricity or heat used within the facility but the emissions from production of the commodity
occur outside the facility. Electricity generation related emissions occur at power companies which are usually
direct emitters. GHG emissions from secondary energy productions attributed to energy producers will beconsidered as scope 1 in National GHG inventories. Scope 3 is also indirect emission even covering production,
use and disposal of products, passenger and freight transport conducted for the facility by third parties,
disposal of waste outside facilities and any other activities as far as relevant. For scopes 1 and 2, the facility18

As of November 15, 2022
managers can take measures to reduce the emissions by actions within the facility. For scope 3, addressing
emissions is basically beyond the control of the facility managers, except for delegated activities by the facility.
Following illustration indicates how emissions are categorized.

Figure 9: Scopes of GHG emissions

For scope 2, it should be noted that secondary energy providers should deduct emissions from soldenergy to avoid double-counting of emissions. In this case, a power company is responsible for its
energy consumption and corresponding GHG emissions from the self-consumption (as well astransmission and distribution if transmission is not delegated to another company). Identifying gridemission factors poses another challenge on timelines of reporting. Secondary energy users can’t
complete estimation unless the grid emission factor is derived from reports from secondary energy
providers. Japan applies grid emission factors calculated from data of the previous year, which
reduces stringency in estimated emissions. In addition, scope 1 has a larger emission coverage thanscope 2 when it comes to facility-level reporting because a certain portion of sold electricity goes toresidential and other consumers who are not reporting entities under the scheme. When summing
up total emissions from reporting entities, scopes 1 and 2 will not result in overlap of emissions,while double counting is inevitable for scope 3.
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Many carbon reporting systems such as the Carbon Pricing Act of Singapore, are based on scope 1
emissions. The M&R Guidelines recommend at least scope 1 emissions to be subject to mandatory
reporting. Scope 2 emissions would be adopted in systems stemming from energy audit purpose or
the like, for the interest of reducing overall energy consumption at each facility. Application of scope
2 depends on the specific objectives of the M&R system, institutional arrangement, preparedness ofreporting entities and so on. Scope 3 is informative for consumers when choosing products with lessemissions, while it may not be necessary for a government to require reporting. Moreover, its
estimation method is not as established as scopes 1 or 2. In the case of ISO 14064-1 “Specification
with guidance at the organization level for quantification and reporting of greenhouse gas emissions
and removals”, reporting of scope 2/ 3 emissions are required in addition to Scope 1 if they are
determined as significant by the reporting entity.
Japan’s Mandatory GHG Accounting and Reporting System basically covers scope 1 and 2 emissions
from transport of raw material and products by third party transportation providers, and amethodology is also provided for that purpose. Although GHG emissions from such activities areusually classified as scope 3; however, this arrangement could encourage selection of less-emitting
transportation by facility side. Such partial scope 3 might be adopted as scope 2 under certain
conditions such as: (i) facilities having control of the emissions through selection of the service
provider or contract, (ii) such options are available throughout the country, (iii) the system ownerhas capacity to provide information and guidance on estimation, and (iv) existence of a policy topromote such mitigation action. Disposal of wastes could be another example of such. It is advisablefor the system owner to be aware of such modifications in scope 2, if any, for international
comparability.
The table below shows indicative choices of scopes against purposes. An M&R system may serve
different purposes and require data from a particular scope, provided that reporting formats indicatethat explicitly, and reporting burden is minimized. For example, the primary objective of an M&R
system may be energy audit thus scope 2 is chosen, while scope 1 emissions are also estimated basedon the same data set and used for international carbon trading.
Scope 1

Preparation of national energy statistics and/or GHG inventory(specially for international), carbon pricing mechanisms, calculating
grid emission factor, voluntary reporting/disclosure schemes

Scope 2

Energy audit, awareness raising on emissions, (domestic) carbon pricing
mechanisms(moredetailed

designneeded),voluntaryreporting/disclosure schemes
Scope 3

Information for investors, customers and public including voluntary20

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reporting/disclosure schemes, awareness raising on environmental
impacts; (expanded scope 2)
Coverage of GHG emissions must be defined. carbon dioxide (CO2), methane (CH4) and nitrous oxide(N2O) are common GHGs. On the contrary, many AMS may not have perfluorocarbons (PFCs) andnitrous trifluoride (NF3) emissions covered in the system. Hydrofluorocarbons (HFCs) must havebeen emitted in all AMS while only some countries have reported such emissions due to technicalchallenges in identifying and monitoring the emission streams. Sulfur hexafluoride (SF6) may be also
the case. According to the Modalities, Procedures and Guidelines (MPG) under the Paris Agreement,
national GHG inventories of the additional four gases (HFCs, PFCs, SF6 and NF3) must be reported
and included in the Party’s NDC under Article 4 of the Paris Agreement; are covered by an activity
under Article 6 of the Paris Agreement; or have been previously reported (para 48, Annex to Decision
18/CMA.1). An M&R system could cover gases that have not been reported in the national GHG
inventory to fulfil the requirement, however, a legal basis for doing so may be required in somecountries.
For aggregation of emission quantities expressed in CO2 equivalent, Global Warming Potential (GWP)
values have been applied globally. GWP should be in line with the NDC of the country, taking into
account the Enhanced Transparency Framework under the Paris Agreement designates 100-yeartime-horizon GWP values from the IPCC’s Fifth Assessment Report (AR5) or from a subsequent IPCC
assessment report as agreed upon by the CMA for national GHG inventories (para 37, Annex toDecision 18/CMA.1). If the M&R system is designed to also handle HFC data and serve foradministration on the Kigali Amendment under the Montreal Protocol, it should be noted that theKigali Amendment refers to GWP values from AR4.
Under both ISO 14064 and GHG protocol, HFC is considered to assess the organizational CFP,
therefore, it is important to consider HFC in facility level M&R as well. Further, as all the countries
have to report under the ETF, it is recommended the use of GWP values given in the AR5. Data
collection by gas species in actual amount, in addition to CO2 equivalent emissions, is recommended(see para 49, Annex to Decision 18/CMA.1).
However, companies tend to prefer aggregated reporting rather than by gas species for the sake ofconfidentiality. Consultation with the industry will be necessary.
3.

Methodologies for GHG emissions measurements
For the sake of simplicity in measurement, almost all M&R systems adopt Activity Data (AD) × Emission
Factor (EF) method to calculate emissions as the first choice. UNFCCC requires reporting of GHG
21

As of November 15, 2022
emissions caused by human activities, it is straightforward to apply data on activities for calculation.
For example, almost all facilities to be reported under the facility-level GHG measurement andreporting, consume fuels and electricity to implement economic activities. In such a case, theequation is likely to be determined as below:

Emission [Fuel Combustion] = AD [Amount of fuels by fuel type]× EF [GHG emission amount per consumption of fuels by fuel type]
The combination of AD and EF must be defined for each emission category. Examples of equations
can be found in IPCC Guidelines, GHG Protocols and so on. CDM or JCM may also be referred to,
keeping in mind that they are project-based methodologies to calculate emission reduction amounts.
The following list shows some typical examples. More extensive examples can be found in the Annex.
Activity/category (GHG)

AD (unit)

EF

Fuel combustion (tCO2e)

Consumed amounts of fuels byEmission factor per calorific value

fuel type (kt, kl, m3) × Calorificvalue
Grid electricity

Consumed amount of electricity

Gridemissionfactorconsumption (tCO2e)(kWh)

CO2/kWh)

Transportation load (tkm)

Load-based emission factor(kt-[scope 2]
Freight transport by third
party (tCO2e)[scope 3]or(t-CO2/tkm)

Cumulative distance oftransportation (km)or
Fuel efficiency (t-CO2/km)

ororConsumed amounts of fuels byEmission factor per calorific value

fuel type (kt, kl, m3) × Calorificvalue
Cement production

Amount of clinker produced (kt)(tCO2)orEmission factor for clinker (ktCO2/kt-clinker)

Amount of cement produced bycement type (kt) × clinker
fraction of cement (±purchased/sold clinker)
Enteric fermentation of

The number of head of livestock

Emission

livestock (tCH4)

species (head)species (kg-CH4/head/year)

22

factorbylivestockAs of November 15, 2022
Wastewater treatment

COD (Chemical Oxygen Demand)

Emission factor by treatment type(tCH4)

loading of wastewater (kg-COD)(incl. direct discharge)orVolume of wastewater (m3) ×unit COD loading by industry
type (kg-COD/m3-wastewater)

Examples of information sources for reporting entities to fill activity data and other relevant
information may be indicated as:⚫

Bills for purchasing fuels, energy commodities and relevant materials⚫

Stock changes of fuels and relevant materials between the initial and final days of the reporting
period.

⚫

Measuring equipment (e.g. air pollutant monitor, electricity meter, flowmeter)⚫

Records on waste disposal⚫

Other activity reports

Some categories under IPPU sector of the national GHG inventory consume fossil fuels as feedstock
which are not consumed to produce energy (e.g. ammonia production and other petrochemicalindustries, coke for iron and steel production). One of the reasons for such segregation is for moreaccurate estimation of CH4 and N2O because of differences in oxidation conditions.

It should be

accounted for in the IPPU Sector as per IPCC Guidelines. However, it is often difficult to separate energy
and non-energy uses and poses additional burden for reporting entities. Unless the reporting entity inthe country has capabilities to report consumption as a feedstock or fuel, aggregated consumption ofsuch fuels under energy sector may be sufficient. It is always good practice to consult with energy
statistics compilers and the industries in the country to make a uniform reporting format in order toavoid lower comparability within the country.

23

As of November 15, 2022
Transportation is a tricky category for estimation. Typical scope 1 emissions include emissions fromcompany-owned vehicles (e.g trucks or commuting buses), even though most of such emissions
usually occur outside the geographical boundary of the facility. The approach is proposed by thefacility owners. Control approach may be applied for scope 2/3 reporting as mentioned previously.
The coverage of transportation for the M&R system should be clearly stated in the definition of facility.
Data sources may also be diverse, as vehicles can be fueled at gas stations outside the boundary of the
facility. These days, plug-in hybrid and electric vehicles would consume electricity taken from thefacility or external recharging stations, which may further complicate calculation of total input energy
for transportation.

Column 3
Building a definition of Facility
Physical boundary

Physical property, plant, building, structure, source, or stationary
equipment, on contiguous or adjacent properties; in actual
physical contact or separated solely by public roadway or otherpublic right of way;

Ownership/control

owned/ controlled by a single person or entity

Operational

Any activity or series of activities (including ancillary activities)

boundarythat involves the emissions of greenhouse gases

SectorEnergy, Industrial Processes and Product Use (IPPU), Waste,
Agriculture, Forestry, and Other Land Use (AFOLU)**This guideline can be used in AFOLU if there are appropriate methodologies in the boundaries under the control of theowners

It is important for the authority to define and acknowledge a methodology for every reporting item.
In most cases, default EFs in IPCC guidelines and country specific EFs for national GHG inventories
are good information sources. Most EFs may not require frequent updates, but some, grid electricity
EF for scope 2 reporting in particular, should be calculated and updated regularly by the relevant
authority. Countries with experiences in CDM or JCM can utilize the section which provides gridemission factors every year, and/or this facility-level reporting may replace existing data collection
process for the grid emission factor. While national GHG inventory will update EFs for continuous
improvement, EFs for M&R system may be kept for a certain period to keep time-series consistency
without recalculation (see column below).
On the other hand, the M&R system may be designed to allow application of facility-specific EFs. It is24As of November 15, 2022
particularly useful under some conditions such as: 1) For very large emitters of GHG relative to thenational total emissions; 2) Have sufficient capacity to do so at facility side; 3) Third-party
verification; 4) Such data are informative for the facility side (e.g. for monitoring energy saving or
participating in carbon markets). Estimation based on mass balance, direct measurement of exhaust,
or modeling (so-called higher tier methods) may also be the case.
Application of facility-level EFs or higher tier method should be encouraged as the first choice,followed by country-specific EFs for national GHG inventories of the country.

Column 4
Time-series consistency, methodological improvement, and simplicity of reporting⚫

Under the ETF of the Paris Agreement, continuous improvement of reporting isrequired (Section I.D, Annex to Decision 18/CMA.1). In the case of national GHG
inventory, “recalculation”, or updating the previously reported numbers by applying
the latest methodology throughout the time series, is to be conducted where
methodological improvement (such as revision of EFs) occurs in order to foster
methodological improvement while keeping time-series consistency (Section II.C.3
Annex to Decision 18/CMA.1).

⚫

Recalculation may not be applicable for M&R systems in many cases in view ofadditional burden of handling historical data.
➢

Where accuracy of the latest emission data is more critical for the reporting
system than time-series consistency (e.g. carbon market), EFs should be
updated as frequently as applicable.

➢

In view of the objective for private sector to stimulate self-checking of emission
levels, it may not be worth updating EFs frequently.

Methodology for facility level can be simpler than that of national/local GHG inventories in some cases,in order to minimize burden to businesses. This is especially the case for categories where the activity
in previous years affect emissions in this year. Methane emissions from solid waste disposal sites
under the waste sector and HFC emissions from recharging refrigerants under IPPU sector are someexamples. In Japan’s Mandatory GHG Accounting and Reporting System, AD [annual organic waste
amount] multiplied by EF is the methodology for facility-level reporting, instead of the complex First
Order Decay method which requires cumulative amount of organic waste for more than 20 years. For
HFC refrigerants, annually recharged amount is the activity data for annual emissions instead of25

As of November 15, 2022
refrigerant bank amount, or estimated total amount used in equipment.

4.

Quality of reporting and Quality Control activities
On quality of reporting, TACCC principles on GHG inventories and reporting to UNFCCC are wellknown, TACCC stands for:⚫

Transparency: Methodology and results are clearly described so that a third-party can
reproduce a result. This includes archiving of historical data for ex-post verification.

⚫

Accuracy: Estimation is based on the best knowledge available at the moment, and systematic
under-estimation or over-estimation is minimized.

⚫

Completeness: All relevant emissions and removals occurring within the boundary are included,
minimizing double-counting or omission.

⚫

Comparability: Applying the same scope, classification, and methodology as far as appropriate.

⚫

(Time-series) Consistency: Same methodology is applied throughout the time series whichallows trend analyses.

These principles are more or less applicable for facility level reporting, with different focuses.
Comparability and consistency would be the most important for awareness-raising purposes. Timeseries consistency enables observation of trends in GHG emissions from reported data which may
reflect mitigation efforts of each facility. Comparability in this context would mean comparability
among reporting entities, in particular under a same industry, for benchmarking purpose.
Transparency and completeness would be mainly the responsibility of the authority for the designof reporting formats. Reporting entities are encouraged to archive the basis for reporting as apractice on transparency. The required level of accuracy depends on the purposes and preparednessof reports. Accuracy is particularly necessary when the M&R system is linked with any carbon pricing
mechanism or other statistical reporting. A pilot reporting period (for a few years at least) should
allow reporting entities to be acquainted with reporting practices and improve accuracy.
In order to ensure the quality of reporting and results as far as possible, Quality Control (QC) shouldbe implemented. The QC system is designed to:(i) Provide routine and consistent checks to ensure data integrity, correctness, and completeness.
(ii) Identify and address errors and omissions; and(iii) Document and archive inventory material and record all QC activities.
Even though it is impossible to detect all the errors, there may be several possible measures to screen26

As of November 15, 2022
potential issues. For example:⚫

Detection of blank cells (especially when they are mandatory reporting items) andinappropriate inputs (e.g. sentences in a numerical cell)⚫

Detection of potential typographical errors in numerical figures: Activities and corresponding
GHG emissions tend to be rather stable in the private sector. When there is a difference of
numbers from the previous submission over threshold (e.g. ＋5/ -10%), it is worth highlighting
the difference to encourage recheck.

⚫

Comparison with default emission factors: Where a facility reports emissions based on facilitylevel emission factors, whether such emission factors are realistic should be checked. Impliedemission factor, i.e., the number derived by dividing the reported emissions by activity data, canbe checked against aggregated emissions, direct measurement or any other method to comparewith default emission factors. If these numbers are substantially different from default emission
factors (e.g., beyond the uncertainty range), this may be highlighted to both reporter andadministrator.

These checks may be automated if an electronic reporting system is to be employed.
For reporting entities, normal data QC procedure of their own can be applied (e.g., regular calibrationof measuring equipment, sanity check of spreadsheets, random check, calculation by an independent
spreadsheet). In addition, archiving of previous submissions and background data at their side isencouraged, or even mandated in some cases, to correct mistakes and improve future reporting aswell as facilitate auditing.
Apart from QC, Quality Assurance (QA) can be conducted by a third party on the report before orafter its submission. It may be understood as a form of verification. Thus, this Guideline will not
explain the details.

5.

Relationship with national GHG inventories
The M&R system may be designed to collect data for national GHG inventories. However, technicalconsideration is critical to make such a bottom-up approach successful. Some important statistical
data for GHG inventories are top-down, which means the total amount is segregated to sub-items.
This approach tends to result in better overall accuracy, especially when there are many reporting
entities. It means that sum of reported values is different from the national total of the relevant
statistical item. If bottom-up data are mixed up, errors in GHG estimation is inevitable. Section 2.3,
Volume 1 of 2019 Refinement to the IPCC Guidelines gives technical details on this approach.

27

As of November 15, 2022

Energy balance is an example. It is an accounting framework for compilation of data on all energy
products entering, exiting, and used within the national territory of a given country during areference period. It is recommended as AD for tier 2 methodology of national GHG inventories. Even
in EU where a carbon market mechanism (EU-ETS) has been in place for years, EU member countries
usually rely on an energy balance table for a national GHG inventory, with supplemental uses of EUETS data such as facility-specific emission factors for some subcategories. On the contrary, local GHG
inventories, if they are to be compiled, would take a bottom-up approach for the emissions due to thelack of an energy balance table for their boundary.
Many other statistics are compiled on a bottom-up basis, which means that the sum of reported
values becomes the national total. In such a case, the sum of reported emissions can be the national
total of the category, and disaggregation into subcategories is also straightforward. For this type of
data, it must be ensured that the reported values for this M&R system and other national statistics
are identical. For avoiding discrepancy in data and minimizing reporting/compiling burdens,
coordination on reporting items across different statistical data is critical. Data on industrial solid
waste and wastewater management are some examples of bottom-up data that national GHG
inventory compilers in developing countries usually face difficulty in accessing. Direct data collection
could contribute to improve estimation of such categories, in addition to fulfilling other sectoral dataneeds.

28

As of November 15, 2022

Column 5
Confidential data⚫

Data to be collected under the reporting system should be transparent and are supposed
to be publicly available or accessible in general. However, data providers might restrict
access to information to prevent inappropriate use of the data, unauthorized commercial
exploitation, or sensitivity to possible imperfections in the data. (i) Clear explanation on
the intended use of the data; and (ii) written agreement as to the level at which it will bemade public; may help coordination of data collection.

⚫

In some cases, the data provider simply does not have the resources required to compileand check confidential data. Offering cooperation and capacity building on measurement
could address the issue.

⚫

National Statistical Offices have experience in handling confidential data. They may havealready collected the relevant data. It will always be beneficial to consult with them.

⚫

Raw data can be aggregated in a way that protects confidentiality and yet produces useful
information for national inventory purposes. In general, if there are 3 or more entities
under one item, aggregation can mask individual data. Aggregation before submission(e.g., reporting entity submits emissions amounts without indicating AD nor EF) may also
be allowed.

⚫

More technical details can be found in the Section 2.2, Vol. 1, of IPCC 2006 Guidelines and2019 Refinement.

29

As of November 15, 2022

IV. Essential tools, procedure and institutional arrangements of facility-level GHG Reporting System<<For Government >>[Introduction]
This section explains essential tools, procedure and institutional arrangements required tooperationalize the facility-level GHG reporting system and introduces some examples andprototypes.

1.

Reporting format
The reporting format is necessary for submission of GHG reports by the emitters.
It should have an accurate but uncomplicated layout.
The generic elements that are provided by a standard format are as follows.
A) Reporting boundaries
The organization shall establish its reporting boundaries, including the identification of direct andindirect GHG emissions and removals associated with the organization’s operations. Grouping of GHG
emissions or GHG removals reported within the boundary of facility is called as reporting boundary.
B) Classification by gas
The format provides the kinds of GHGs that reporting facilities are required to report, including theprovision of rule documents by GHG reporting systems. The basic reporting may require CO2 only.
However, to the extent possible, other gases, such as CH4, N2O, HFCs, PFCs, SF6, and NF3 should be
included. It is recommended to use GWP values given in the IPCC AR5 for all GHGs.
In the case of CO2 emissions, it may be useful to differentiate energy derived CO2 and non-energy
derived CO2. The former covers CO2 emissions from energy consumption (direct combustion of fuels
or electricity consumption from the grid), and the latter covers CO2 emissions from chemical
reactions in industrial processes, such as clinker production in the cement industries. Such
differentiation can help identify emissions for reduction efforts.
C)

Business categories

In many countries, line ministries have a regular administrative jurisdiction and a deep knowledge
on the nature of business in the respective sectors. For this reason, the format should provide space
to identify business categories that reporting facilities belong to. This categorization will facilitate
further actions from the reporting system, such as providing feedback or advice to facilities on30

As of November 15, 2022
emissions reduction.
D) Types of fuels, energy commodities and electricity
Identification of types of fuels, energy commodities and electricity are important to the reporting of
accurate emissions data, together with their emission factors. In general, the reporting systemowners (e.g. government) can check if the emissions calculation is appropriate in certain types ofbusiness which use of specific fuels. Also, when leading reporting facilities reduce GHGs emissions,switching to low carbon or decarbonized fuels, such as renewable energy, such information can
provide useful information.
E)

Emissions by scope 1, 2 (+3)

In general, the facility-level reporting should have scopes 1 and 2 as a basic format. Reporting ofscope 3 emissions is useful for facilities to further provide information on their emissions for the
purpose of meeting specific standards or carbon disclosure of corporate value. However, datacollection and calculation would require more effort, and sometimes is not easy for many facilities.
In such cases, scope 3 can be optional.
If significant indirect emissions are excluded from the GHG emission quantification, explanation/
Justification shall be provided in facility level M&R system.
F)

Selection of Base year

The facility shall establish a historical base year for GHG emissions and removals for comparative
purposes of the GHG M&R system. Base year emissions or removals may be quantified based on a
specific period (e.g. a year or part of a year where seasonality is a feature of the organization’s activity)
or averaged from several periods (e.g. several years). If sufficient information on historical GHG
emissions or removals is not available, the organization may use its first facility level GHG M&R period
as the base year.
In establishing the base year, the facility:•

shall quantify base-year GHG emissions and removals using data representative of theorganization’s current reporting boundary, typically single-year data, a consecutive multi-year
average or a rolling average•

shall select a base year for which verifiable GHG emissions or removals data are available•

shall explain the selection of the base year•

shall develop a GHG inventory for the base year consistent with the provisions of thisdocument.

31

As of November 15, 2022
The facility may change its base year but shall justify any change to the base year.
G) Uncertainties
Assumptions made in collecting activity data, and uncertainties in GHG emission calculations may berecorded separately. Description of planned actions for reducing uncertainty for the future year may
add to respective sectionH) Recalculation
If any change is made to the base year or other historical GHG data, recalculation of the base year orother historical year may need to compare the respective year result.
Sample formats are attached as Annex
2.

Reporting line
When introducing the reporting system, it is necessary to consider what will be an ideal reporting
line. In many cases, the GHG reporting system is introduced by the Environment Ministry or Ministryin charge of climate change. In this case, emitters’ businesses do not necessarily be under theirjurisdiction. Also, in developing GHG emission measurement methodologies, in-depth knowledge ofsectors is required.
For this reason, it is important to consider allocation of roles of line ministries (and in some cases
local governments), for their effective engagement. This will allow smooth implementation of thesystems.

Figure 10: prototype of the Institutional Arrangement for a facility level reporting system32As of November 15, 2022

(A) Roles of the focal point ministry or voluntary system administrator
The focal point ministry designated by law, or the voluntary reporting system administrator plays the role ofoverseeing the system including developing and executing rules, modalities and procedures; GHG
measurement methodologies; making announcements to reporting facilities; and final data collection andstorage. Further, the focal point ministry or the system administrator should set principles that line
ministries or local governments should follow, and the system provides feedback to reporting facilities.
Key roles•

Set the rules and oversee the system.

•

Establish an MRV coordination unit

(B) Role of the MRV coordination unit

MRV Coordination unit provides guidance and training to stakeholders on accurate data collection, data
recording, data reporting, data analysis, and calculation of GHG emissions.
Key roles•

Provide technical and financial support•

Establish extensive and effective communication with stakeholders•

Plan and conduct all coordination and consultation activities with governmental and, if appropriate
non-governmental stakeholders•

Carry out and keep track of capacity-building efforts, both domestic (unilateral) as well asinternational•

Conduct an evaluation exercise to identify key lessons learned and areas for improvement•

Incorporate reporting from all line ministries and their regulatory bodies and keep an updated
registry•

Establish guidelines for quality control of collected data and develop and oversee theimplementation of a quality control strategy for the entire MRV process; and•Mediate between parties when concerns surface, for example, over a disagreement in terms of
responsibilities or a potential conflict of interest.

(C) Role of line ministries
Line ministries can play a role of supporting the system, based on their knowledge and experiences with33

As of November 15, 2022
specific sectors. This includes the development of or providing inputs on GHG measurement methodologies.
Facilities can go through specific line ministries in the reporting line to submit reports to the focal point
ministries. Line ministries can play an active role in providing feedback, based on the regular relationships
with facilities under their sectoral jurisdiction.
Key roles•

Line ministries and local governments will oversee the implementation of rules established by focal
point Ministry•

Establish MRV units at each ministry(D) Role of MRV Unit- MRV Focal Point

Key roles•

Allocate responsibilities for all institutions, ensuring that there is a clear lead for each institution,and establish an institutional level formal approval process•

Develop and monitor a time frame and schedule for preparing and submitting necessary data,
including specific dates for the deliverables; and•Report GHG emissions to MRV coordination unit annually•

Appoint technical, data collection and QC teams(E) Role of local governments
In some countries, local governments can play a role as the first entry point for facilities to submit a report. Also,
as they may have better access to information of facilities for their geographical region, compared to national
government ministry, local governments may provide consultation or advice to facilities when they are having
trouble in developing the report, or feedback on their emissions reduction efforts after the reporting.
(F) Role of the Secretariat/supporting agencies
Sometimes, the focal point ministries find it difficult to accommodate the workload of managing the entire
system, and processing the reports submitted by facilities. In some countries, processing and analysis of data
are outsourced to supporting agencies or consultants, to ensure a stable workflow.

34

As of November 15, 2022

(G) GHG Manager
GHG manager is responsible for data collation, preparation, and analysis of the emissions reports.
Key roles•

Assess data collection for the requisite parameters that contribute to GHG emissions•

Document measurement approaches•

Monitor GHG emission sources and their operating parameters on a regular basis•

Measure and report GHG emissions•

Submit the emissions reports in accordance with the MRV requirements; and•Ensure the emissions reports are, to the best of the knowledge of the GHG manager, complete andaccurate

3.

Providing feedback
Providing feedback plays a key role in facilitating the recognition of the emitters and encouraging theiractions for further emission reductions. There are ways to provide feedback to the emitters, by informing:⚫

Historical trend of emissions⚫

Key emission sources and potential reductions⚫

Ranking in the same sector/subsector⚫

Potential intervention for reductions, such as change of operation and introducing new technologies

4.

Other matters (criteria for designated emitters, frequency and cycle of reporting, etc.)35

As of November 15, 2022

V. Common steps for developing a reporting system<< For Government >>[Introduction]
The step for developing a reporting system is expected to start with a review of what the competentauthorities have already done, the authority they have, and whether they have implemented thecomponents required for the development of the system.

1.

Starting the development of a GHG M&R system
A) Useful steps for developing a GHG M&R system
The development of a GHG M&R system is expected to start with a review of what the competentauthorities have done already, the authority they have and whether they have implemented thecomponents required for the development of the system, such as previous climate change efforts andmechanisms. This is one of the preparations required not only for the development of GHG M&R
systems, but also for the development of various institutional arrangements.
Steps in the work include starting with Category 1 and working through the questions in each category
to see whether there is experience that can be used to develop the GHG M&R system. If there is “Yes“ ineach category, those experiences gained can also be used to develop the GHG M&R system.

36

As of November 15, 2022

Figure 11: Category 1- 5

37

As of November 15, 2022
If there is experience that can be utilized for developing a GHG M&R system, the transition towards
developing the system can proceed. However, the process of developing a GHG M&R system may involve
relationships with the relevant ministries and require country-specific procedures. For this reason, thefollowing components are considered to be commonly necessary for the development of a system:
1. To consider the need for a GHG M&R system within the ministries and agencies (If necessary, acommittee composed of experts and business stakeholders may be set up to consider the issue.)
2. To set up forums for information sharing and consultation with relevant ministries, e.g. throughthe National Climate Change Commission.
3. To conduct discussions with key stakeholders covered by the system, such as the industrial sector,
in parallel with consultations with the relevant ministries and agencies.
B) Legal underpinning of the M&R system
Legal underpinning is an important perspective when developing M&R systems in each ASEAN country.
The legal underpinning can be in the form of law, decree or ordinance, in the case of mandatory reporting
system, or in the form of a contract in the case of voluntary reporting system.
For example, if private entities may be legally required to report their GHG emissions, it is provided thatthe formula to be used will be clearly defined in the law. Also, it is expected that the roles of each ministry
will be defined, for example, which ministry will receive the calculated GHG emissions.
In the latter case of voluntary reporting system, the contract compels reporting by companies to, forexample, the Carbon Disclosure Project (CDP) or stock exchanges. These initiatives can be used as
experience for existing entities when enacting legislation, as mentioned above.
C)

Mandatory Requirement for facility level M&R System

In introducing a mandatory requirement for facilities, it is necessary to establish a law to define
obligation of reporting, definition of terms, reporting cycles, designated formats, protocols andmethodologies for reference, as well as legal consequences of non-compliance with the law. Since
facilities designated by the law have a legal obligation for submitting reports and relevant data, thegovernment has a stronger basis for ordering appropriate responses from such facilities.
In many cases, such mandates are defined as part of an entire system, and other elements, such as rolesof ministries and local governments in the system are also defined in the law. See [Column 6] Viet Nam’s
revised law on environmental protection law and Decree 06/2022/ND-CP regulations on reduction ofgreenhouse gas emissions and protection of the ozone layer.

38

As of November 15, 2022

Column 6
Viet Nam’s revised Law on Environmental Protection law and the Decree 06/2022/ND-CP
regulations on reduction of greenhouse gas emissions and protection of the ozone layer.
In November 2020, the Government of Viet Nam revised the Law on Environmental Protection,
which is a basic law for the entire environmental management in Viet Nam. Government’s
response to the Paris Agreement, including the implementation of NDC, and relevant MRV havebeen included in Article 91. In this law, the government also introduced a framework for
mandatory GHG emissions measurement, reporting and verification by designated facilities.
Guided by the Revised Law, the Decree 06/2022/ND-CP regulations on reduction of GHG
emissions and protection of the ozone layer in January 2022 stipulates more detailed obligationsof facilities, and procedures for MRV.
Framework provided under the Decree 06/2022/ND-CP
GHG mitigation (including Emissions Trading Schemes)

2.

✓

Entities that must carry out GHG mitigation;✓

Objectives, roadmap and measures to mitigate GHG;✓

MRV system for GHG mitigation;✓

GHG inventory at all levels;✓

Allocation, adjustment and withdrawal of GHG emission quotas;✓

Plan on GHG mitigation, and expected results;✓

Requirements for appraisal units;✓

Responsibility for inspection and supervision of GHG mitigation activities.

Inter-ministerial coordinationA) Importance of inter-ministerial coordination
As the flowchart above shows, it may be possible to utilize the experience and efforts of othergovernment agencies to which the officer in charge does not belong. This is not simply a matter39

As of November 15, 2022
of ensuring consistency of mechanisms between government agencies but may also facilitate
reporting from the perspective of the private sector entities in the end.
The coordination of such inter-ministerial arrangements may include the following matters.
(a) Coordination between the Environmental Ministry and the Energy Ministry for consistency
and avoiding burdens of private sector reporters.
(b) Providing possible co-benefits with administration of other sectors including statistics
agency by adding new data reporting.
(c) Providing advice from statistics agency on handling of confidential data(d) Discussing with the relevant ministries the elements of data to be reported by companies
and which of the reported data are to be made public and which are to be kept confidential.
(e) Discussing with the relevant ministries whether the data collected will be used for NDC.
(f) Creating an opportunity to discuss whether amendments to current laws and regulations
are sufficient or whether additional legal actions are needed.
Such coordination is expected to be proposed in a committee of relevant ministries and agencies
on climate change, such as the National Climate Change Committee, before direct enquiries are
made to the relevant agencies by the private sector. Meanwhile, inter-ministerial coordination isrecommended as much as possible, as any lack of coordination may make it more difficult for
private entities operating in their country to report.
3.

Private sector engagementA) Encouraging the positive attitude of the private sector
In order to promote a positive attitude of private entities, attention is expected to be paid to twophases: 1. The process of establishing the system; and 2. The process of operating the system.
Please note that, in principle, the engagement of private entities in these two phases should be
decided through discussions between the ministries and private entities, and not necessarily
implemented.
To begin with, the engagement of private entities in the process of establishing the system cancreate opportunities to incorporate the know-how of private entities in the establishment of thesystem, in addition to the aspect of checking the feasibility of the system from the government's
point of view. Private entities are expected to communicate their experiences and views to theministries and relevant agencies that intend to develop a GHG M&R system.

40

As of November 15, 2022
Sample Format of GHG reporting by Japanese caseCarbon dioxide equivalent greenhouse gas emissions
No.

-② Non-energy-origin CO2③ Non-energy-origin CO2 from

(Excluding ③)

the use of waste material fuels

⑥ HFC

⑦ PFC

①
Specified emitter
overallBusiness category

Business name1

Sub-classification① Energy-origin CO2④ Methane

⑤ N2O

⑧ SF6

⑨ NF3

⑩ Energy-origin CO2

②

③

④

⑤

t-CO2

t-CO2

t-CO2

t-CO2

t-CO2

⑥

⑦

⑧

⑨

⑩

t-CO2

t-CO2

t-CO2

t-CO2

t-CO2

①

②

③

④

⑤

t-CO2

t-CO2

t-CO2

t-CO2

t-CO2

⑥

⑦

⑧

⑨

⑩

t-CO2

t-CO2

t-CO2

t-CO2

t-CO2

①

②

③

④

⑤

t-CO2

t-CO2

t-CO2

t-CO2

t-CO2

⑥

⑦

⑧

⑨

⑩

t-CO2

t-CO2

t-CO2

t-CO2

t-CO2

number
Ministry in charge ofbusiness
Business name2

Sub-classification
number
Ministry in charge ofbusiness

41

As of November 15, 2022
(2) By types of energy
FY
Type of energy

Unit

Amount used

Amount of byproduct energy sold

Value
Crude oil (not including
condensate)
Condensate part of crude oil(NGL)

Calories (GJ/TOE)klkl

Volatile oilklNaphthakl

KeroseneklLight oilkl

Heavy oil A

kl

Heavy oil B, C

kl

Petroleum asphalttPetroleum coket

Liquefied

Fuel or heat

Petroleumgas

petroleum gas

t

(LPG)
Petroleumhydrocarbon gas

Flammable Liquefied natural

1,000 m3
t
42

Value

Calories (GJ/TOE)As of November 15, 2022
natural gas gas (LNG)
Other flammablenatural gases

Coal

1,000 m3

Coking coalt

Steam coalt

Anthracite coalt

Coal coket

Coal tart

Coke oven gas

1,000 m3

Blast furnace gas

1,000 m3

Converter gas

1,000 m3

Other fuels

Natural gas

1,000 m3

Industrial steam

GJ/TOE

Steam other than industrial

GJ/TOEHot water

GJ/TOE

Cold water

GJ/TOE

Subtotal

GJ/TOE43

As of November 15, 2022
Sample Format of GHG reporting by GHG Protocol
EMISSIONS

TOTAL

CO2

CH4

N2O

HFCs

PFCs

SF6

(mtCO2e)

(mt)

(mt)

(mt)

(mt)

(mt)

(mt)

Scope 1
Scope 2
Scope 3 (OPTIONAL)

Emissions disaggregated by source types
Scope 1: Direct Emissions from Owned/Controlled Operations
a.Direct Emissions from Stationary Combustion
a.Direct Emissions from Mobile Combustion
a.Direct Emissions from Process Sources
a.Direct Emissions from Fugitive Sources
a.Direct Emissions from Agricultural Sources
Scope 2: Indirect Emissions from the Use of Purchased Electricity, Steam, Heating and Coolinga.Indirect Emissions from Purchased/Acquired Electricity
a.Indirect Emissions from Purchased/Acquired Steama.Indirect Emissions from Purchased/Acquired Heatinga.Indirect Emissions from Purchased/Acquired Cooling44As of November 15, 2022
Content of the report according to the ISO 140064a) Chapter 1: General description of the organization goals and inventory objectives.
This chapter includes the description of the reporting organization, persons responsible, purpose of
the report, intended users, dissemination policy, reporting period and frequency of reporting, data andinformation included in the report (list of GHGs taken into account and explained), and statements by
the organization about verification.
b) Chapter 2: Organizational boundaries.
This chapter includes the description and explanation of boundaries and consolidation methodologies.
c) Chapter 3: Reporting boundaries.
This chapter includes the description and explanation of emissions categories that are considered.
d) Chapter 4: Quantified GHG inventory of emissions and removals.
This chapter includes the quantified data results by emission or removal category, description of
methodologies and activity data used, references and/or explanation and/or documentation ofemission and removal factors, uncertainties and accuracy impacts on results (disaggregated bycategory), and description of planned actions for reducing uncertainty for the future inventory.
e) Chapter 5: GHG reduction initiative and internal performance tracking.
The organization may report its GHG reduction initiatives and the results of its internal performancetracking
An example of an illustrative template to provide a framework for reporting is given below

45

As of November 15, 202246

As of November 15, 2022
Facilities may report activity data and EF as follows
Category/ Emission source

Activity data

Reference/Data source

Quantity

EF

Unit

Value

Unit

Reference

Further facilities may use the following notation keys in the tables to indicate the completeness of the data
Notation Key

Definition

ExplanationNE

Not estimatedEmissions and/or removals occur but have not been estimated orreported

IE

Included elsewhere

Emissions and/or removals for this activity or category are
estimated and included in the inventory but not presented
separately for this category. The category where these emissions
and removals are included should be indicated (for example in the
documentation box in the correspondent table)

C

Confidential

Emissions and/or removals are aggregated and included elsewhere

informationin the inventory because reporting at a disaggregated level could
lead to the disclosure of confidential information.

NA

Not applicable

The activity or category exists but relevant emissions and removals
are considered never to occur. Such cells are normally shaded in thereporting tables.

NO

Not occurring

An activity or process does not exist within a country47

As of November 15, 2022

Annex 01- Singapore’s Carbon Tax
1.

Background

Singapore instituted a Carbon Tax, when the Carbon Pricing Act (CPA) and its accompanying
Regulations came into operation on 1 Jan 2019. The carbon tax is administered by the National
Environment Agency (NEA). The carbon tax forms part of a comprehensive suite of mitigation
measures by providing a broad-based price signal across the economy. The revised carbon tax
level and trajectory post-2023 are aligned with their climate ambition to reach net zero by oraround mid-century. This will also accelerate the economic transformation necessary totransition to a future-ready green economy by enhancing the business case to implement energy
efficiency improvements and other emission reduction solutions. This ensures the long-term
viability of business investments and activities in a carbon-constrained world.
The tax is applied on facilities that directly emit at least 25,000 tCO2e of greenhouse gas (GHG)
emissions annually and includes six GHGs that Singapore is currently reporting to the United
Nations Framework Convention on Climate Change (UNFCCC), namely carbon dioxide (CO2),methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), andsulphur hexafluoride (SF6). Singapore will also start reporting a seventh GHG, nitrogen trifluoride(NF3) by 2024. As such, Singapore will include NF3 as a taxable gas from 2024.
In all, the carbon tax currently covers 80% of total GHG emissions from about 50 facilities in the
manufacturing, power, waste, and water sectors. Facilities in other sectors would also indirectly
face a carbon price on the electricity they consume as power generation companies are expectedto pass on some degree of their tax burden through increased electricity tariffs.

Figure 12: Singapore’s climate ambition, which will be updated in Oct/Nov 202248

As of November 15, 2022

2.

Key Steps

Figure 13: Key steps of Singapore’s Carbon tax

49As of November 15, 2022•

Step 01- Register as a taxable / reportable facility

Any industrial facility that emits direct GHG emissions equal to or above 25,000 tCO2e annually will be
required to be registered as a taxable facility, submit a monitoring plan, and a third-party verified
Emissions Report and pay a carbon tax.
Also, any other industrial facility that emits direct greenhouse gas (GHG) emissions equal to or above
2,000 tCO2e annually is required to register as a reportable facility and to submit an Emissions Reportannually.
Registration is done via the Emissions Data Monitoring and Analysis (EDMA) System.
•

Step 02- Submit monitoring plan (MP)Each taxable facility shall submit a MP, which documents the taxable facility’s GHG emission sources
and streams, emissions quantification methods, and quality management framework.
The MP will need to be submitted to NEA by 31 Dec of the registration year and approved by NEA
before the start of the first reporting period. Each reporting period is a calendar year during which thedirect GHG emissions are measured and reported.
The approved MP will apply for all future reporting periods unless there is a change to the MP The
registered corporation shall ensure that the Monitoring Plan remains current and up-to-date, by
updating the MP and seeking NEA’s approval on the amendments when required.
The taxable facility shall use the Excel-based Monitoring Plan Template provided by NEA to prepare
its Monitoring Plan submission, which comprises of completed MP Template and supporting
documents and is submitted to NEA via the EDMA system.
•

Step 03, 04 and 05- Monitor emissions, verify emissions report and submit(verified) Emissions Report

Both reportable and taxable facilities are required to monitor and submit an Emissions Reportannually by 30 June of the year following the end of each reporting period. . The Emissions Report foreach reporting period shall contain information on the facility’s activity data, conversion factors such
as NCV and emission factors, and the total direct GHG emissions at both emission stream-level andfacility-level.
The Emissions Report for reportable facilities will be verified by NEA to ensure that they are accurate,
while
the Emissions Report for taxable facilities shall be prepared in accordance with the approved
Monitoring Plan and verified by an NEA-accredited third-party verifier before submission. The thirdparty verifiers are required to assess to a reasonable level assurance that i) data reported in the
Emissions Report were collected in accordance with the approved MP; ii) data reported in the50

As of November 15, 2022
Emissions Report are complete, reliable, accurate and free from material misstatements, and iii) the
ER complies with the measurement and reporting (M&R) requirements.
The facilities are required to submit the Emissions Reports using a web-based Emissions Report formhoused in the EDMA system. This Emissions Report form were designed with the following principles
to ensure it is user friendly:oAligned to Monitoring Plan and M&R Guidelines. Taxable facilities are required toreport activity data and conversion factors for each emission stream based on thequantification methodology approved in the MPoBuilt on reporting under the Energy Conservation Act. Emissions Report form wasbuilt on the forms and templates used for the reporting of energy use and Industrial
Processes and Product Use (IPPU) emissions under the Energy Conservation Act(ECA), which majority of the taxable and reportable facilities were familiar with.

oStreamlined reporting with ECA Energy Use Report (EUR). To avoid duplication ofeffort and provide consistency in the data reported to NEA under CPA and ECA,
verified fuel combustion data reported in the ER are auto populated to the ECA.

o

Minimized manual inputs by reportable and taxable facilities. The Emissions Report
UI required minimal inputs from facilities by including default emission factors,
automate the calculation formulae, and pre-populating the new Emissions Reportusing previous Emissions Report submissions.

•

Step 06- Approve of Verified Emissions Report

NEA conducts surveillance audits on the accredited third-party verifiers 6 to ensure that theverification is carried out in compliance with CPA and its regulations. Subsequently, NEA will checkand approve the verified emissions report submitted by taxable facilities and assess each taxablefacility’s carbon tax liability based on verified emissions.
•

Step 07- Surrender carbon credits

Taxable facilities with verified emissions of equal or above 25,000tCO2e must pay carbon tax in theform of fixed-price carbon credits to be procured and surrendered in the EDMA system by 30 Sep ofeach year. The carbon tax is set at a rate of S$5 per tonne of GHG emissions (tCO2e) from 2019 to 2023
(i.e. S$5 per fixed-price carbon credit) , and will be raised to S$25/tCO2e in 2024 and 2025, andS$45/tCO2e in 2026 and 2027, with the aim to reach S$50-80/tCO2e by 2030. Companies may utilize
high-quality international carbon credits that meet Singapore’s requirements, to offset up to 5% of
their taxable emissions from 2024 onwards.
6

The third party verifiers are accredited by a Accreditation Working Committee (AWC) on a 3-yearly basis and theirperformance are subject to NEA’s annual surveillance checks on their GHG engagement works.

51

As of November 15, 2022
3. Roles and Responsibility of Key Stakeholders•

Inter-Ministerial Committee on Climate Change

The Inter -Ministerial Committee on Climate Change enhances Whole-of-Government coordination on
climate change policies to ensure that Singapore is prepared for the impacts of climate change.
Members are comprising of Ministers for Sustainability and the Environment, Finance, National
Development, Trade and Industry, Transport and Foreign Affairs.
• National Climate Change Secretariat (NCCS)
It was established in 2010 under the Prime Minister’s Office (PMO) to develop and implement
Singapore’s domestic and international policies and strategies to tackle climate change. The NCCS led
the preparatory work in the lead-up to the implementation of the carbon tax in 2018.
•

National Environment Agency (NEA)

NEA is the administer of the Carbon Pricing Act. The key administration roles under the CPA include
the registration and deregistration of reportable and taxable facilities, the accreditation andsurveillance of third-party verifiers, the validation and approval of Monitoring Plan submitted bytaxable facilities, the verification of Emissions Report submitted by reportable facilities, the approvalof verified Emissions Report and collection of carbon tax from taxable facilities. NEA has developed asuite of guidelines and templates to help the facilities and accredited verifiers to comply with themeasurement, reporting, and verification requirements. The Guidelines are available at NEA’s website.
•

Accredited third party verification company

The verification company is required to read through the Verification and Accreditation Guidelines
prepared by NEA in detail and assess the company’s capabilities to meet the accreditation
requirements before making an application to NEA. Accredited third-party verification companies
engaged by taxable facilities to conduct verification on their Emissions Report shall complete theverification and submit the verification report to the facility and NEA before 30 June of the year
following the end of each reporting period.
•

Taxable Facilities

Any industrial facility that emits direct GHG emissions equal to or above 25,000 tCO 2e annually are
required to:i)be registered as a taxable facility

ii)

appoint a GHG Manager within 30 days from the registration and appoint a DesignatedRepresentative (DR)52

As of November 15, 2022
iii)

submit a Monitoring Plan by 31 December of the registration year, andiv)

submit a verified Emissions Report to NEA annually by 30 June of the year following theend of each reporting period.

The duties and responsibilities of a GHG Manager include, but are not limited to, the list below:i)

Be responsible for data collation, preparation and analysis of the Monitoring Plan
and Emissions Reportii)

Assess applicability of the Monitoring Plan and data collection for the requisiteparameters that contribute to GHG emissionsiii)

Document measurement approaches

iv)

Monitor GHG emission sources and their operating parameters on a regular basisv)

Measure and report GHG emissionsvi)

Submit the Monitoring Plan and Emissions Report in accordance with the MRVRegulationsvii)

Ensure the Monitoring Plan and Emissions Report are, to the best of the knowledgeof the GHG manager, complete and accurate.

The duties and responsibilities of the DR include,i)

Submit GIRO application to set up the EDMA credit registry account for each facilityof the Corporationii)

Timely purchase of carbon credits according to the desired GIRO deduction date (thelist of GIRO deduction dates for the year is available on the EDMA System)iii)

Ensure sufficient funds in the bank account for the GIRO deduction to take place, forthe purchase of carbon credits and other carbon tax related paymentsiv)

Timely surrender of carbon credits (by the later of 30 September of the year
immediately following the reporting period; or 30 days after the date of service of
the Notice of Assessment)v)

Submit any application to transfer carbon credits from the registry account of ataxable facility to the registry account of another taxable facility under the same
corporation.

•

Reportable Facilities

Any industrial facility that emits direct GHG emissions equal to or above 2,000 tCO 2e annually are
required to be registered as a reportable facility and to submit an Emissions Report to NEA annually.
The registration corporation shall also appoint at least one GHG Manager for each reportable facility
to monitor and report the emissions annually and appoint at least a DR to serve as a back-up for the
GHG Manager In the event where the registered corporation has multiple reportable facilities, thesame GHG Manager could be appointed to be in charge of multiple facilities.
53

As of November 15, 2022
The appointment of external service providers to assist the GHG Manager(s) in the preparation of the
Emissions Report is allowed, but service providers shall not be appointed as the GHG Manager. The
duties and responsibilities of a GHG Manager include, but are not limited to, the list below:i) Be responsible for data collation, preparation, and analysis of the Emissions Reportii) Assess data collection for the requisite parameters that contribute to GHG emissionsiii) Document measurement approachesiv) Monitor GHG emission sources and their operating parameters on a regular basisv) Measure and report GHG emissionsvi) Submit the Emissions Report in accordance with the MRV Regulationsvii) Ensure the Emissions Report are, to the best of the knowledge of the GHG manager, complete
and accurate.
4. Preparation for carbon pricing implementation

Figure 9: Timeline for carbon tax implementation

5. References

https://www.nea.gov.sg/our-services/climate-change-energy-efficiency/climatechange/carbon-tax
https://www.thepmr.org/system/files/documents/Presentation%20Jansen%20Toh.pdf
https://www.nea.gov.sg/docs/default-source/our-services/climate-change/ghgmr_guidelines_part_1a_mr_requirements_reportable_facilities.pdf

54

As of November 15, 2022

Glossary of Terms
Conference of the Parties

The supreme decision-making body of the UNFCCC. All states that(COP)

are Parties to the Convention are represented at the COP, where they
review the implementation of the Convention and any other legal
instruments that the COP adopts and make decisions for the
implementation of the Convention, including institutional andadministrative arrangements.

Measure or monitor (M)Data and information on emissions, mitigation actions, and support.
This may entail direct physical measurement of GHG emissions,estimating emissions or emissions reductions utilizing activity dataand emission factors, calculating changes relevant to sustainable
development, and collecting information about support for climatechange mitigation

Report (R)By compiling this information in inventories and other standardized
formats to make it accessible to a range of users and facilitate public
disclosure of information

Verify (V)By periodically subjecting the reported information to some form ofreview or analysis or independent assessment to establish
completeness and reliability. Verification helps to ensure accuracy
and conformance with any established procedures, and can provide
meaningful feedback for future improvement

Facility level MRV

Involves assessing total GHG emissions and removals from all
sources within a single facility (e.g., power plant, factory, or waste
disposal site), as opposed to an entire organization, to produce a
facility-level inventory

Direct emissions

GHG emissions from GHG sources owned or controlled by theorganization

Indirect emissions

GHG emissions that are consequences of an organization’s
operations and activities, but that arise from GHG sources that are
not owned or controlled by the organization. These emissions occur
generally in the upstream and/or downstream of supply chain55

As of November 15, 2022
Energy Industry

In energy industries, fossil fuels are both raw materials for theconversion processes, and sources of energy to run these processes.
The energy industry comprises three kinds of activities:
1 Primary fuel production (e.g. coal mining and oil and gas
extraction);
2 Conversion to secondary or tertiary fossil fuels (e.g. crude oil topetroleum products in refineries, coal
to coke and coke oven gas in coke ovens);
3 Conversion to non-fossil energy vectors (e.g. from fossil fuel into
electricity and/or heat)
Emissions from combustion during production and conversion
processes are counted under energy industries.

IPCC

An advisory body that provides governments with the state ofcurrent science to inform climate policies. Established in 1988, the
IPCC is an organization of governments that are members of theUnited Nations or the World Meteorological Organization (WMO).

IPPU

Covers greenhouse gas emissions occurring from industrial
processes, from the use of greenhouse gases in products, and from
non-energy uses of fossil fuel carbon.
(IPCC, 2006b)

Greenhouse gas (GHG)

Gaseous constituents of the atmosphere, both natural andanthropogenic, that absorb and emit radiation at specificwavelengths within the spectrum of thermal infrared radiation
emitted by the Earth's surface, the atmosphere itself, and clouds.
Agriculture contributes methane and nitrous oxide emissions to theatmosphere, as well as carbon dioxide from the soil or biomass anduse of energy.

Global warming potential

The relative effect of the GHGs on the atmosphere, for the same level(GWP

of emissions. Defined scientifically as the cumulative radiative
forcing effect of a gas over a specified time period resulting from theemission of 1 kilogram of a gas relative to 1 kilogram of a referencegas (e.g., CO2 equivalent). GWP is a relative scale where carbon
dioxide equals 1. The GWP changes according to the time horizon
used.

Nationally

Determined

The plans and goals established by each country in the Paris56

As of November 15, 2022
Contribution (NDC)

Agreement for actions to reduce their national emissions and adapt
to the impacts of climate change. INDCs are a Parties firstsubmission and the NDCs are submitted every 5 years.

National

greenhouseinventorygas

Inventories of a country's anthropogenic emissions and removals of
GHGs containing transparent documentation and data. The UNFCCC
requires all Annex I Parties to submit annual inventories and the
IPCC publishes guidelines that provide methodologies for
estimating national inventories.

Paris Agreement

An agreement under the UNFCCC, ratified by 189 parties, to makethe changes necessary to keep global temperature rise by 2100
below 2 ˚Celsius above the pre-industrial average, with theadditional goal of limiting warming to 1.5 ˚Celsius if possible. It
requires all parties to put forward an NDC (see NDCs) with the goalof reducing emissions and strengthening the ability of countries todeal with the impacts of climate change.

UNFCCCA global agreement and the parent treaty of the 2015 Paris
Agreement and 1997 Kyoto Protocol. UNFCCC’s purpose is tostabilize GHG concentrations in the atmosphere at a level that will
prevent dangerous human interference with the climate system, ina time frame that allows ecosystems to adapt naturally and enables
sustainable development. Entered into force in 1994.

57