GHG Protocol

Over the last decade, climate change has become a major issue of public concern. There is now strong evidence of human-induced global warming which is expected to adversely affect many regions of the world. International policy efforts to contain and mitigate climate change can succeed only with the help of business, which has a key role to play in reducing heat-trapping greenhouse gas emissions and meeting energy challenges.

In 1998, the WBCSD launched the GHG Protocol Initiative with the World Resources Institute (WRI) to develop a set of practices that companies can use to account for, and report on, their greenhouse gas (GHG) emissions. The GHG Protocol aims at harmonizing GHG accounting and reporting standards internationally to ensure that different trading schemes and other climate related initiatives adopt consistent approaches to GHG accounting.

The development of these standards and corresponding tools has become increasingly relevant since the ratification of Kyoto and the development of national, and other relevant GHG emissions trading schemes both within and outside of the Kyoto framework.

The GHG Protocol Initiative consists of two modules, the Corporate GHG Accounting and Reporting Standard (Corporate Module) and the Project GHG Accounting and Reporting Standard (Project Module).

Corporate GHG Accounting and Reporting Standard (Corporate Module)
The Corporate Module ( 3.5 MB) provides standards and guidance for companies and other organizations preparing a GHG emissions inventory. It covers the accounting and reporting of the six greenhouse gases covered by the Kyoto Protocol and was designed with the following objectives in mind:

• To help companies prepare a GHG inventory that represents a true and fair account of their emissions, through the use of standardized approaches and principles.
• To simplify and reduce the costs of compiling a GHG inventory
• To provide business with information that can be used to build an effective strategy to manage and reduce GHG emissions
• To increase consistency and transparency in GHG accounting and reporting among various companies and GHG programs.

Since its 2001 launch, the Corporate Module has been adopted by many businesses and voluntary and mandatory GHG policy schemes. The revised edition, including a new chapter on GHG target setting, was published in March 2004.

The GHG Protocol for Project Accounting
The GHG Protocol for Project Accounting (Project Protocol) ( 3.4 MB) is a protocol for quantifying and reporting greenhouse gas (GHG) emission benefits of climate change mitigation projects (GHG projects) it has been developed by WRI and the WBCSD. It complements the GHG Protocol Corporate Accounting and Reporting Standard (Corporate Standard) and aims to:

• Be a tool and guidance manual for quantifying & reporting reductions from GHG Projects
• Enhance the credibility of GHG project accounting through the application of common accounting concepts, procedures & principles
• Provide a platform for harmonization among different project-based GHG initiatives & programs

The Project Protocol is the culmination of a four-year dialogue hosted by WRI/WBCSD between businesses, non-government organizations, governments, academics, and others from both developed and developing countries. As with the GHG Protocol Corporate Standard, this collaborative process helped to ensure agreement among a wide range of stakeholders and to produce a protocol that is flexible, rigorous, and comprehensive.

The WBCSD and WRI are also undertaking GHG Pilot programs in order to further foster the adaptation of the GHG protocol among companies. Successful training workshops and information meetings have been held in Mexico, South Africa, and the Philippines in 2005.