Global companies urge clarity on renewable gas accounting within GHG Protocol

More than 140 global companies across the renewable gas supply chain issued a joint letter Feb. 10 calling for greater clarity on the role of the fuel within the Greenhouse Gas Protocol scheme.

The joint letter follows the removal of guidance on the use of biomethane certificates within the GHG Protocol, with signatories calling for the fuel's inclusion in the scheme's Scope 1 inventory.

Representing economic operators across the supply chain, the signatories stressed an "urgent need" for a climate reporting framework that provided rules and certainty for investment in their sectors.

Renewable gases and their derivatives, they argued, were necessary to decarbonize industry, transport and buildings, while a "market-based approach" was required to overcome any economic, technical and environmental barriers arising from renewable gas connections.

"We urgently call on the GHG Protocol to adopt a market-based approach for renewable gases in Scope 1 inventory, for both fuel and feedstock applications," the signatories wrote.

This could also include a location-based approach, the letter stated, part of the scheme's "dual-reporting structure."

The letter comes as the GHG Protocol's corporate accounting and reporting standard undergoes revision.

Signatories include the European Biogas Association, the World Biogas Association, the Coalition for Renewable Natural Gas, and Eurogas among others.

Renewable gases such as biogas and biomethane are widely considered a direct replacement for conventional natural gas, and are produced largely through the processing of organic matter.

Biomethane guarantees of origin (GOs) represent a market-based mechanism for verifying the renewable attributes of the renewable gas, but companies purchasing the certificates remain uncertain as to whether they contribute to Scope 1 emissions reduction under the scheme.

As such, the joint letter also called for an interim statement in the first half of 2025 confirming that robust market instruments would be recognized in GHG inventories.

Established in 1990, the GHG Protocol is a globally recognized standard for both measuring and managing greenhouse gas emissions, working with governments and wider market participants to provide emission calculation guidelines.

Under the scheme, Scope 1 emissions characterize direct GHG emissions that occur from sources controlled or owned by an organization, while Scope 2 emissions represent indirect emissions from the generation of purchased energy.

Scope 3 emissions include all indirect emissions that occur in the value chain of the reporting company, including both upstream and downstream emissions, according to the scheme's website.

European biomethane GOs continue to trade near all-time lows, with Platts, part of S&P Global Commodity Insights, assessing the German spot biomethane GO price at Eur18.00/MWh on Feb. 7.

It assessed the Dutch spot equivalent at Eur18.225/MWh over the same period, and the Danish spot biomethane GO price at Eur14.00/MWh on Feb. 7.