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The GHG Protocol is the world’s most widely used greenhouse gas accounting standard yet most companies lack any guidance for the use of market-based instruments, severely stalling the financial support needed for the deployment of renewable gas fuels and decarbonisation technologies.
That was the verdict of leading industry bodies who have signed a joint letter, calling for the collaborative body’s upcoming Actions and Market Instruments (AMI) standard to reflect the realities of existing markets and recognise the positive climate impacts of renewable gaseous fuels.
“This failure to accommodate market-based approaches is slowing the decarbonisation of hard-to abate and hard-to-electrify sectors, by limiting their use of well-established certification systems, and of existing, interconnected gas infrastructures used for delivering clean fuels,” the letter stated, culminating with the end of .
Signatories included Let Green Gas Count campaign – the World Biogas Association, the Anaerobic Digestion and Bioresources Association, Eurogas, the European Biogas Association, the American Biogas Council, the Electric Natural Gas Coalition (e-NG Coalition), Molecule Group, and the Coalition for Renewable Natural Gas (RNG Coalition).
The AMI standard would allow companies to report the climate impacts of investments, decarbonisation actions, and market instruments that cannot currently be counted within Scope 1, 2, or 3 inventories. A draft standard is expected to be published in 2028.
The joint letter urges the GHG Protocol to guarantee the recognition of contractual purchases in a manner that aligns with existing best practices and ensures interoperability with established regulatory and voluntary markets.
The recognition and valorisation of the climate and environmental benefits of renewable gaseous fuels should also be a core element of the framework, through an impact statement that enables transparent reporting based on life cycle assessment.
“A misaligned framework risks holding back the purchase of renewable gas and undermining investment in technologies that are fundamental for achieving net zero. Industry leaders stand ready to engage with the GHG Protocol during this next phase of development and maximise the acceptance and relevance of the upcoming standard,” it notes.
Under the GHG Protocol, the climate impact depends on how the biomethane is produced, delivered, and claimed, taking into account lifecycle emissions, methane leakage, and Scope 1 reporting. Biogenic CO2 is reported separately from fossil CO2 and upstream emissions cover feedstock, processing, leakage and transport.
For green hydrogen, the emissions associated with production depend heavily on how the renewable electricity is accounted for. If grid electricity is used, the emissions may be much higher than if dedicated renewable generation powers the electrolyser.
Companies producing or consuming green hydrogen must follow Scope 2 accounting rules for purchased electricity. These rules determine whether renewable electricity claims are valid.
When hydrogen is burned or used in a fuel cell, it produces no direct CO₂ emissions. However, the upstream emissions from producing the hydrogen determine its overall carbon footprint.
