Connect with us

Decarbonization

Decarbonization 101: What Carbon Emissions Are Part Of Your Footprint?

Published

on

The following content is sponsored by the National Public Utilities Council

The Path to Decarbonization The 3 Scopes of Carbon Emissions

View the high-resolution version of this infographic

What Carbon Emissions Are Part Of Your Footprint?

This was originally posted on April 9, 2021, on Visual Capitalist.

With many countries and companies formalizing commitments to meeting the Paris Agreement carbon emissions reduction goals, the pressure to decarbonize is on.

A common commitment from organizations is a “net-zero” pledge to both reduce and balance carbon emissions with carbon offsets. Germany, France and the UK have already signed net-zero emissions laws targeting 2050, and the U.S. and Canada recently committed to synchronize efforts towards the same net-zero goal by 2050.

As organizations face mounting pressure from governments and consumers to decarbonize, they need to define the carbon emissions that make up their carbon footprints in order to measure and minimize them.

This infographic from the National Public Utilities Council highlights the three scopes of carbon emissions that make up a company’s carbon footprint.

The 3 Scopes of Carbon Emissions To Know

The most commonly used breakdown of a company’s carbon emissions are the three scopes defined by the Greenhouse Gas Protocol, a partnership between the World Resources Institute and Business Council for Sustainable Development.

The GHG Protocol separates carbon emissions into three buckets: emissions caused directly by the company, emissions caused by the company’s consumption of electricity, and emissions caused by activities in a company’s value chain.

Scope 1: Direct emissions

These emissions are direct GHG emissions that occur from sources owned or controlled by the company, and are generally the easiest to track and change. Scope 1 emissions include:

  • Factories
  • Facilities
  • Boilers
  • Furnaces
  • Company vehicles
  • Chemical production (not including biomass combustion)

Scope 2: Indirect electricity emissions

These emissions are indirect GHG emissions from the generation of purchased electricity consumed by the company, which requires tracking both your company’s energy consumption and the relevant electrical output type and emissions from the supplying utility. Scope 2 emissions include:

  • Electricity use (e.g. lights, computers, machinery, heating, steam, cooling)
  • Emissions occur at the facility where electricity is generated (fossil fuel combustion, etc.)

Scope 3: Value chain emissions

These emissions include all other indirect GHG emissions occurring as a consequence of a company’s activities both upstream and downstream. They aren’t controlled or owned by the company, and many reporting bodies consider them optional to track, but they are often the largest source of a company’s carbon footprint and can be impacted in many different ways. Scope 3 emissions include:

  • Purchased goods and services
  • Transportation and distribution
  • Investments
  • Employee commute
  • Business travel
  • Use and waste of products
  • Company waste disposal

The Carbon Emissions Not Measured

Most uses of the GHG Protocol by companies includes many of the most common and impactful greenhouse gases that were covered by the UN’s 1997 Kyoto Protocol. These include carbon dioxide, methane, and nitrous oxide, as well as other gases and carbon-based compounds.

But the standard doesn’t include other emissions that either act as minor greenhouse gases or are harmful to other aspects of life, such as general pollutants or ozone depletion.

These are emissions that companies aren’t required to track in the pressure to decarbonize, but are still impactful and helpful to reduce:

  • Chlorofluorocarbons (CFCs) and Hydrochlorofluorocarbons (HCFCS): These are greenhouse gases used mainly in refrigeration systems and in fire suppression systems (alongside halons) that are regulated by the Montreal Protocol due to their contribution to ozone depletion.
  • Nitrogen oxides (NOx): These gases include nitric oxide (NO) and nitrogen dioxide (NO2) and are caused by the combustion of fuels and act as a source of air pollution, contributing to the formation of smog and acid rain.
  • Halocarbons: These carbon-halogen compounds have been used historically as solvents, pesticides, refrigerants, adhesives, and plastics, and have been deemed a direct cause of global warming for their role in the depletion of the stratospheric ozone.

There are many different types of carbon emissions for companies (and governments) to consider, measure, and reduce on the path to decarbonization. But that means there are also many places to start.

The National Public Utilities Council is a collaborative body of industry experts coming together to solve decarbonization challenges in the power sector and the proud sponsor of the Decarbonization Channel.

Click for Comments

Decarbonization

Visualized: Carbon Pricing Initiatives in North America

We map out all of the national and subnational carbon pricing initiatives in North America using data from the World Bank.

Published

on

Visualized: Carbon Pricing Initiatives in North America

Carbon pricing mechanisms are a vital component of an effective emissions reduction strategy. But these initiatives currently cover just 15% of total North American carbon emissions.

To discover which initiatives are currently contributing to this coverage, this graphic sponsored by the National Public Utilities Council maps out all of the national and subnational carbon pricing initiatives across North America using data from the World Bank.

Let’s begin by looking at types of carbon pricing.

Carbon Pricing Explained

Carbon pricing is a market-based policy tool that assigns a cost to carbon emissions, incentivizing reductions through the use of economic signals.

While there are several ways to go about carbon pricing, the most commonly used types of carbon pricing strategies include:

  • Emissions Trading Systems (ETS)
    ETS establishes a market for trading emissions allowances among companies. A cap on total emissions is set, and all companies receive tradable emission units. Those exceeding their limits can buy allowances from those with a surplus.
  • Carbon Taxes
    Carbon taxes impose a direct price on carbon emissions. Their goal is to disincentivize carbon-intensive activities, such as burning fossil fuels, by making them financially less attractive.

In 2022, carbon pricing strategies generated $5 billion in the U.S. and $8 billion in Canada. These funds were primarily allocated toward green investments and support for low-income households.

Carbon Pricing Initiatives By Country

The U.S. is currently the only country in North America without a national carbon pricing initiative. Both Canada and Mexico, on the other hand, have implemented federal ETS and carbon tax programs.

Beyond federal initiatives, many regions on the continent have also implemented or are considering their own carbon pricing initiatives. These subnational initiatives are listed in the table below:

RegionCarbon Pricing InitiativeStatus
🇨🇦 Alberta, CanadaETSImplemented, 2007
🇨🇦 British Columbia, Canada Carbon tax and ETS Implemented, 2008 and 2016
🇨🇦 Manitoba, CanadaCarbon tax and ETS Under Consideration
🇨🇦 New Brunswick, CanadaCarbon tax and ETS Implemented, 2020 and 2021
🇨🇦 Newfoundland and Labrador, CanadaCarbon tax and ETS Implemented, both 2019
🇨🇦 Northwest Territories, CanadaCarbon taxImplemented, 2019
🇨🇦 Nova Scotia, CanadaETSImplemented, 2019
🇨🇦 Ontario, CanadaETSImplemented, 2022
🇨🇦 Prince Edward Island, CanadaCarbon taxImplemented, 2019
🇨🇦 Quebec, CanadaETSImplemented, 2013
🇨🇦 Saskatchewan, CanadaETSImplemented, 2019
🇺🇸 California, U.S.A.ETSImplemented, 2012
🇺🇸 Hawaii, U.S.A.Carbon taxUnder Consideration
🇺🇸 Massachusetts, U.S.A.ETSImplemented, 2018
🇺🇸 New York, U.S.A.ETSUnder Consideration
🇺🇸 North Carolina, U.S.A.ETSUnder Consideration
🇺🇸 Oregon, U.S.A.ETSImplemented, 2021
🇺🇸 Pennsylvania, U.S.A.ETSUnder Consideration
🇺🇸 Regional Greenhouse Gas Initiative (RGGI)*ETSImplemented, 2009
🇺🇸 Washington, U.S.A.ETSImplemented, 2023
🇲🇽 Durango, Mexico Carbon taxImplemented, 2023
🇲🇽 Guanajuato, Mexico Carbon taxScheduled, 2023
🇲🇽 Jalisco, Mexico Carbon taxUnder Consideration
🇲🇽 Queretaro, Mexico Carbon taxImplemented, 2022
🇲🇽 State of Mexico, Mexico Carbon taxImplemented, 2022
🇲🇽 Yucatan, Mexico Carbon taxImplemented, 2022
🇲🇽 Zacatecas, Mexico Carbon taxImplemented, 2017

The RGGI was the first mandatory ETS initiative in the U.S. and applies to power plants in Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, Vermont, and Virginia.

Since its inception, emissions in the RGGI region fell by more than 50%—twice as fast as the nation as a whole—and raised nearly $6 billion to invest in local communities.

Are All Carbon Pricing Initiatives Created Equal?

In the landscape of carbon pricing initiatives, one critical factor stands out—the price of carbon itself.

According to The High-Level Commission on Carbon Prices, achieving alignment between carbon pricing strategies and the Paris Agreement temperature target requires a price of US$40–80/tCO2 by 2020 and US$50–100/tCO2 by 2030.

Unfortunately, many North American initiatives fall short of these prices, especially in the U.S. and Mexico, where carbon prices reach as low as US$12/tCO2e. Conversely, most Canadian initiatives set a price of US$48/tCO2e.

It’s also important to note that the broader impact of these initiatives depends on a multitude of other factors, including the industries they cover, their flexibility in accommodating changing economic conditions, and the manner in which generated revenue is invested back into sustainable practices.

Within the balance of these various elements lies the potential to steer all industries—including the power sector—toward the necessary emissions reductions.

Learn more about how electric utilities and the power sector can lead on the path toward decarbonization here.

Continue Reading

Decarbonization

The 3 Building Blocks for a Decarbonized Power Sector

How can the U.S. achieve a 100% clean power sector? See the three key pillars of a decarbonized power sector in this infographic.

Published

on

decarbonized power sector

The 3 Building Blocks for a Decarbonized Power Sector

As part of the Paris Agreement, the U.S. has set goals to achieve a 50-52% reduction in emissions by 2030 and net-zero emissions by 2050.

To lay the foundation for these targets, the Biden Administration’s goal is to create a 100% clean power sector by 2035.

This infographic from the National Public Utilities Council shows why a clean power sector is essential for net-zero emissions and highlights the three building blocks needed to achieve it. This is part 2 of the Road to Net Zero series of infographics.

The State of U.S. Energy Use

Today, fossil fuels like oil and gas provide most of the energy used in the U.S. for transportation, heating, and industrial purposes.

For example, due to the prevalence of gasoline vehicles, petroleum accounts for 90% of the transportation sector’s energy consumption, with electricity making up less than 1% of the total.

Similarly, around 80% of the industrial sector’s energy needs are met with natural gas and petroleum. Meanwhile, the residential and commercial sectors use large amounts of natural gas for their space heating needs, along with electricity for other appliances.

With fossil fuels widespread in the U.S. energy mix, the fastest path to net-zero emissions is to electrify and decarbonize energy use in all sectors. This involves replacing technologies that use fossil fuels with those powered by electricity and a clean grid.

For instance, electric vehicles could transform the transportation sector’s energy consumption and reduce emissions. Additionally, electric heat pumps could replace oil and gas boilers in residential and commercial buildings.

However, for electrification to be effective in reducing emissions, decarbonizing the power sector and generating clean electricity is essential.

The Path to a Decarbonized Power Sector

Decarbonization calls for a transformation of the power sector, from one where fossil fuels generate 60% of total electricity to one dominated by clean energy and backed by an upgraded grid.

There are three foundational building blocks for the road to 100% clean electricity:

#1: Accelerate Clean Energy Deployment

With renewable energy now cheaper than fossil fuels, expanding solar- and wind-powered generation is key to replacing fossil fuels and reaching zero emissions.

According to Princeton University, for net-zero emissions by 2050, the U.S. needs to add more than 50 gigawatts of solar capacity annually from 2022 to 2035. That is significantly higher than the 13 gigawatts installed in 2021.

#2: Support Clean Energy with Grid Expansion

With the U.S. power grid aging, new high-voltage transmission capacity is essential for transporting electricity from remote solar and wind farms to centers of demand.

From 2013 to 2020, U.S. transmission capacity grew by just 1% annually. To align with the net-zero pathway, the pace of expansion needs to more than double through 2030.

Here’s how transmission expansion could affect U.S. greenhouse gas (GHG) emissions, as modeled by Princeton:

Transmission Expansion RateProjected GHG Emissions in 2030% Change in Emissions vs. 2021
1% per year4.6 billion tonnes-18%
1.5% per year4.0 billion tonnes-29%
2.3% per year3.8 billion tonnes-32%

Source: Princeton University – Zero Lab

With a 2.3% annual growth in transmission capacity, U.S. GHG emissions could achieve a 32% reduction from the 5.6 billion tonnes emitted in 2021.

#3: Invest in Nuclear Power and Battery Storage

The intermittent nature and low reliability of wind and solar power generation pose a challenge for the energy transition.

Battery storage systems and nuclear power can solve the intermittency problem by supplying clean electricity when wind and solar generation falls.

For example, storage systems can store excess solar power that is produced during sunny periods of the day, and supply it in the evening when solar generation dips. Meanwhile, nuclear power plants can supply electricity around the clock, acting as a clean baseload power source.

Towards a Carbon-free U.S. Economy

New renewable capacity, transmission expansion, and reliable backup sources are key to unlocking a carbon-free power sector.

Together, these three building blocks form the foundation for economy-wide emissions reduction and net-zero emissions by 2050.

Click here to learn more about how electric utilities and the power sector can lead on the path toward decarbonization.

Continue Reading
National Public Utilities Council

Popular