Reporting Emissions Reductions ISO 14064-2

» Scope and Position in the ISO GHG Family

• ISO 14064-2 specifies principles, requirements and guidance at the project level for quantification, monitoring and reporting of GHG emission reductions and removal enhancements.

• It applies to activities intended to cause GHG emission reductions or removal enhancements, including:

  • energy efficiency and fuel-switching projects,

  • renewable energy projects,

  • land-use, land-use change and forestry (LULUCF) projects,

  • other mitigation activities that alter a defined baseline.

• The document is GHG programme-neutral. If a project participates in a regulatory or voluntary GHG programme (e.g. offset scheme), the programme’s requirements apply in addition to ISO 14064-2.

Within the ISO 14060 family:

• ISO 14064-1 covers organization-level GHG inventories.

• ISO 14064-2 covers project-level emissions reductions/removal enhancements.

• ISO 14064-3 covers verification/validation of GHG statements.

• ISO 14065, 14066 and 14067 and ISO/TR 14069 provide associated requirements and guidance for bodies, competence and product footprints

ISO 14064-2 is the central reference for project-based GHG accounting used in carbon markets, mitigation programmes and project-level ESG claims.

» Key Terms and Concepts

ISO 14064-2 defines terminology that structures project-based GHG accounting:

GHG and carbon-accounting basics

• Greenhouse gas (GHG) – atmospheric gas (natural or anthropogenic) that absorbs and emits infrared radiation (e.g. CO₂, CH₄, N₂O, HFCs, PFCs, SF₆).

• GHG source / sink / reservoir (SSR) – processes or components that release, remove or store GHGs.

• GHG emission / GHG removal – release to, or withdrawal from, the atmosphere.

• GHG emission reduction – quantified decrease in emissions between the baseline scenario and the project.

• GHG removal enhancement – quantified increase in removals between the baseline scenario and the project.

• GHG emission factor / removal factor – coefficients that link activity data to emissions or removals.

• Global warming potential (GWP) / CO₂e – factors and units used to convert different gases into a common metric.

Project-specific concepts

• GHG project – activity or activities that alter conditions of a GHG baseline and cause emission reductions or removal enhancements.

• GHG baseline – quantitative reference for emissions/removals that would have occurred in the absence of the project, providing the basis for comparison.

• Baseline scenario – hypothetical reference case that best represents conditions most likely to occur without the project.

• Monitoring – continuous or periodic assessment of GHG data.

• Uncertainty – parameter describing dispersion of possible values around a quantified amount.

SSRs around the project

The standard does not use the term “project boundary”. Instead, it classifies relevant SSRs as:

• Controlled GHG SSRs – sources, sinks and reservoirs where operation is under the direction and influence of the project proponent (typically on the project site).

• Related GHG SSRs – SSRs with material or energy flows into, out of or within the project (often upstream or downstream).

• Affected GHG SSRs – SSRs influenced by the project through market or physical displacement effects (often referred to as “leakage”).

Parties and programmes

• Project proponent – individual or organisation with overall control and responsibility for the GHG project.

• Intended user – person or organisation relying on project GHG information to make decisions (e.g. programme administrators, regulators, investors).

• GHG programme – voluntary or mandatory system handling registration, accounting or recognition of GHG emissions, removals, reductions and enhancements (e.g. offset or crediting schemes).

Verification, validation, level of assurance and related terms follow ISO 14064-3 and the generic ISO vocabulary.

» Principles

ISO 14064-2 requires the following principles to be applied to all GHG project activities and information:

• Relevance – select SSRs, data and methods appropriate to the needs of intended users.

• Completeness – include all relevant GHG emissions and removals and all relevant supporting information.

• Consistency – enable meaningful comparisons over time and between project and baseline.

• Accuracy – reduce bias and uncertainty as far as practical.

• Transparency – report in an open, clear and coherent way with sufficient documentation for tracing and verification.

• Conservativeness – use conservative assumptions, values and procedures so that GHG emission reductions or removal enhancements are not over-estimated.

These principles underpin the credibility and “true and fair” representation of project-level GHG results.

» Introduction to GHG Projects and the Project Cycle

The standard describes a typical GHG project cycle with two main phases: planning and implementation.

Planning phase

In planning, the project proponent:

• identifies and designs the project concept and assesses feasibility;

• consults interested parties and checks GHG programme eligibility;

• prepares a GHG project plan covering:

  • project description and objectives;

  • SSRs relevant to the project;

  • baseline scenario and its SSRs;

  • procedures to quantify, monitor and report emissions, removals, reductions and enhancements.

Programme rules may require registration, validation and public availability of the project plan before implementation.

Implementation phase

During implementation, the project proponent:

• operates the project activities;

• monitors data according to a monitoring plan;

• quantifies project and baseline emissions/removals;

• calculates GHG emission reductions and/or removal enhancements;

• reports results and may seek verification/validation.

Figure 2 and Figure 3 in the standard link planning and implementation requirements to a complete GHG project cycle.

» Core Requirements for GHG Projects

General requirements

The project proponent must:

• identify and apply relevant criteria and procedures for all stages of the project cycle;

• use established criteria and procedures from a recognised origin where available (e.g. GHG programme methods, sector guidance);

• document and justify any departures from such methods;

• establish and justify criteria and procedures when recognised guidance does not exist;

• ensure conformity with applicable GHG programme requirements, where the project is registered.

Describing the project (GHG project plan)

The project proponent must describe the project in a GHG project plan, including at least:

• project title, purpose and objectives;

• project type and how it will achieve emission reductions/removal enhancements and which GHGs are targeted;

• project location and context (organisational, geographic and physical);

• conditions prior to implementation (pre-project situation);

• technologies, products, services and expected activity levels;

• expected aggregated GHG emission reductions/removal enhancements (e.g. tonnes CO₂e);

• key risks affecting GHG results and risk management measures;

• roles and responsibilities of the proponent and other participants, including intended users and relevant regulators or programme administrators;

• summary environmental impact assessment where required by law or programme;

• relevant outcomes from stakeholder consultations and mechanisms for ongoing communication;

• chronological plan for:

  • project start date;

  • GHG baseline time period;

  • expected project end/termination;

  • monitoring and reporting frequency;

  • verification/validation frequency (where applicable);

• eligibility information required by the GHG programme (legislative, technical, sectoral, social, environmental, geographic and temporal factors).

When new activities are added or changes occur, the baseline and project quantification must be reviewed and updated, and re-validation may be required if changes affect consistency with a previously validated baseline.

Identifying relevant SSRs

The proponent must:

• select or establish criteria and procedures for identifying SSRs that are:

  • controlled by the project,

  • related to the project, or

  • affected by the project;

• identify SSRs relevant to the project according to these criteria.

Guidance on this process (including a decision tree) is provided in Annex A.

Determining the GHG baseline and baseline scenario

The proponent must select/establish criteria and procedures for determining the GHG baseline and baseline scenario, considering:

• project description and identified SSRs;

• existing and alternative project types/technologies that provide functionally equivalent products or services;

• data availability, reliability and limitations;

• other relevant information on current and future conditions (legislative, technical, economic, socio-cultural, environmental, geographic and temporal aspects).

The baseline must:

• provide functional equivalence between project and baseline (type and level of products/services);

• follow criteria and procedures that are described and justified;

• respect conservativeness, so reductions/removals are not over-estimated;

• demonstrate that project reductions/removals are additional to what would occur compared with the baseline.

Baseline SSRs and selection for monitoring/estimation

The proponent must:

• identify SSRs relevant to the baseline scenario using criteria consistent with project SSR identification;

• compare baseline SSRs with project SSRs;

• select SSRs for regular monitoring or estimation, based on appropriate and reliable data;

• justify any relevant baseline SSRs not selected for regular monitoring.

Quantifying emissions/removals and project performance

Quantifying GHG emissions and removals

• Criteria, procedures or methodologies must be established for quantifying emissions/removals for:

  • each relevant GHG and SSR under the project;

  • each relevant SSR in the baseline scenario.

• If emissions are aggregated directly in CO₂e, the level of aggregation must match intended-user needs and the chosen quantification approach.

• The proponent must assess the risk of reversal (permanence) for reductions/removals and address it in criteria and procedures.

• Emission/removal factors must:

  • come from recognised sources;

  • be appropriate for the specific sources/sinks;

  • be current at the time of quantification;

  • account for uncertainty and yield reproducible results;

  • be consistent with the intended use of the report.

Quantifying emission reductions and removal enhancements

• Reductions/enhancements are quantified as the difference between:

  • project emissions/removals, and

  • baseline scenario emissions/removals,
    for each relevant GHG and associated SSRs.

• Where applicable, quantities are converted to CO₂e using appropriate GWPs.

Data quality, monitoring and documentation

Managing data quality

• The proponent must implement quality management procedures for data and information, including uncertainty assessment for both project and baseline.

• Uncertainty should be reduced as far as practical.

Monitoring plan

The proponent must establish and maintain a monitoring plan that includes:

• purpose of monitoring;

• list of parameters and data to be measured or collected;

• units, data types and data origin;

• monitoring methodologies (measurement, modelling, estimation, calculation, uncertainty);

• monitoring frequency;

• roles and responsibilities, including change-control procedures;

• internal data controls and corrective actions;

• GHG information management system (data storage, retention, transfers between systems).

Measurement and monitoring equipment must be calibrated or verified and maintained appropriately. All monitoring-related data should be recorded and documented.

Documentation

• The proponent must maintain documentation demonstrating conformity with ISO 14064-2, consistent with verification/validation needs.

Verification/validation and reporting

Verification and validation

• If verification/validation is requested, it must conform to ISO 14064-3 requirements.

Project reporting and public claims

The proponent must prepare a GHG report for intended users, stating intended use and intended user, and using content and format aligned with their needs.

If a public GHG statement claims conformity with ISO 14064-2, the proponent must make publicly available either:

• an independent third-party verification/validation statement in line with ISO 14064-3, or

• a GHG report including, at a minimum:

  • project proponent name;

  • brief project description (size, location, duration, activities);

  • GHG statement(s) with emission reductions/removal enhancements in CO₂e;

  • statement on verification/validation status and level of assurance;

  • list of all relevant controlled, related and affected SSRs and selection criteria;

  • aggregate project emissions/removals by SSRs (CO₂e, per period);

  • aggregate baseline emissions/removals by SSRs (CO₂e, per period);

  • description and justification of the baseline and demonstration that reductions/removals are not over-estimated;

  • description of criteria, procedures or good practice used;

  • statement on uncertainty and how it was addressed;

  • report date and time period;

  • assessment of permanence, where applicable;

  • evidence of authorised representative;

  • applicable GHG programme(s);

  • description of changes to the project or monitoring system and assessment of their conformity with criteria and methodologies.

This minimum reporting set is designed to ensure completeness, transparency and comparability of project-level GHG information.

» Annex A – Guidance on Use of ISO 14064-2

Annex A is informative guidance on applying the standard:

• Explains the role of good practice, legislation and programme rules as additional layers on top of ISO 14064-2.

• Provides detailed guidance on:

  • application of principles (relevance, completeness, consistency, accuracy, transparency, conservativeness);

  • identifying and selecting relevant SSRs (with a decision framework);

  • the concept of additionality, clarifying that although the term is not used, it is inherently addressed through baseline determination;

  • determining and quantifying the GHG baseline (static/dynamic, historical data, performance standards, regression models);

  • quantifying emission reductions/removal enhancements;

  • managing data quality and uncertainty;

  • monitoring, documentation, verification/validation and reporting.

Adaptation Notice under the ISO – International Organization for Standardization

This text has been adapted in accordance with the guidelines set forth by the ISO – International Organization for Standardization. In our efforts to ensure transparency, accountability, and alignment, we have carefully reviewed and incorporated ISO. This adaptation process reflects our commitment to high-quality, accurate, ensuring that the information presented adheres to internationally recognized standards.