Avoided Emissions in the Energy Sector

The energy sector accounts for more than three-quarters of global greenhouse gas emissions, making its transformation essential to achieving global climate goals. This new WBCSD sector guidance, Avoided Emissions in the Energy Sector, provides tailored, sector-specific methodologies to help companies credibly assess and disclose avoided emissions to scale solutions that reduce emissions across the energy value chain.

Who is it for?

This guidance is designed for sustainability and technical teams conducting avoided emissions (AE) assessments, as well as R&D, finance, strategy and communications teams in the energy sector value chain—including technology providers, project developers, asset owners, operators, utilities, fuel and feedstock suppliers. It is also relevant for investors and policymakers aiming to reliably assess and compare the impact of low-carbon interventions in the energy sector.

Why read it?

• Understand how to define, scope, assess and credibly disclose AE for energy solutions.
• Learn how to select appropriate reference scenarios, functional units, system boundaries and data—including time-and location-specific grid emission factors.
• Access five practical case studies covering grid-level renewable energy with storage, grid-flow reallocation, low-carbon hydrogen for industrial feedstock and heat, and waste and residue based bioenergy.
• Learn how to use AE insights to support business strategy, innovation, investment and credible climate communications.

By consistently measuring and communicating avoided emissions, companies can demonstrate the contribution of energy solutions to decarbonization, strengthen decision-making and build a more credible business case for low-carbon innovation. This guidance equips energy-sector stakeholders with practical approaches to assess impact transparently, manage uncertainty and align AE disclosures with the latest science and sectoral best practices.

This document complements the Guidance on Avoided Emissions v2.0: Drive Innovations and Scale Solutions Toward Net Zero, which provides a cross-sectoral framework for AE assessment. As energy solutions are implemented across sectors, this Guidance may also be used along with our growing library of sectoral guidance documents in the Avoided Emissions Implementation Hub.