Skip to content

Group urges GHG Protocol to acknowledge biogas and RNG in corporations' greenhouse gas reporting

Biogas and renewable gas supporters jointly urge swift modifications to the Greenhouse Gas Protocol guidelines

Pressure Mounts on GHG Protocol to Incorporate Biogas and RNG in Business Emissions Accounting
Pressure Mounts on GHG Protocol to Incorporate Biogas and RNG in Business Emissions Accounting

Group urges GHG Protocol to acknowledge biogas and RNG in corporations' greenhouse gas reporting

In a significant development, the "Let Green Gas Count" coalition, led by the American Biogas Council (ABC) and the World Biogas Association (WBA), is urging the Greenhouse Gas Protocol to recognize market instruments for biogas and renewable natural gas in corporate greenhouse gas inventories.

The coalition's focus is on Scope 1 emissions, which are direct emissions from owned or controlled sources. The lack of explicit GHG Protocol guidance has slowed the growth of a sector that turns organic waste into energy, prevents methane emissions, and offers a route to decarbonize heavy industry, transport, and other hard-to-abate sectors.

Charlotte Morton OBE, chief executive of the WBA, has emphasized the significant slowing of the biomethane industry's growth due to the GHG Protocol's lack of guidance on the use of market instruments. She believes that interim clarity on the use of market instruments for biogas and renewable natural gas could accelerate the growth of one of the few commercially available solutions for cutting methane emissions at scale.

The GHG Protocol, which shapes the standards for climate reporting across supply chains, is under pressure to modernize its rules, reflecting a wider shift in climate governance where demand for precision in accounting is intensifying. The coalition's proposal seeks to fill that gap by allowing the use of certified instruments, such as green gas certificates, in emissions reporting.

The lack of clear treatment of renewable gases in corporate emissions reporting is a concern for C-suite leaders and sustainability officers. As it hinders their ability to demonstrate progress in decarbonization strategies and attract green finance, it poses a risk for financing new facilities. Investors are closely watching the outcome of the coalition's recommendations.

Patrick Serfass, executive director of the ABC, stated that the absence of recognition has become a barrier to market growth for biogas and renewable natural gas. If the coalition's recommendations are adopted, they could provide a bridge for corporates looking to expand renewable gas use and influence policy debates in the U.S., Europe, and beyond.

Biogas and renewable natural gas are two of the lowest carbon intensity energy sources available. However, investment in projects that produce these fuels is currently thwarted by the lack of clear guidance on market instruments that recognize their carbon intensity. Clearer treatment of renewable gases would allow corporates to avoid accusations of overstating climate gains, as shown by the debate surrounding this issue.

Without interim clarity, corporate decarbonization strategies may stagnate, and capital for new projects may be delayed. The coalition's recommendations aim to de-risk the uncertainty surrounding the use of market instruments for biogas and renewable natural gas, giving markets confidence to scale projects that contribute to national and corporate net-zero pathways.

The GHG Protocol, administered by the World Resources Institute and the World Business Council for Sustainable Development, is undergoing a multi-year update, with new guidance expected in 2028. Until then, companies lack clear rules on how to account for the purchase and use of green gases. The coalition's urgent call for action underscores the need for immediate attention to this issue.

Read also:

Latest