What is GHG accounting?

Greenhouse Gas (GHG) accounting refers to the systematic process of measuring and reporting the emissions of greenhouse gases that an organization generates. This process is crucial for organizations seeking to understand their environmental impact and contribute to climate change mitigation efforts. By quantifying emissions, organizations can identify their main sources of GHG emissions, track progress in reducing those emissions over time, fulfill regulatory requirements, and improve their overall sustainability strategies.

In practice, GHG accounting involves gathering data on fuel consumption, energy use, waste generation, and other activities that produce greenhouse gases. This information is converted into equivalent CO2 emissions and reported in a transparent manner, allowing for effective comparison and benchmarking. This measured approach underpins the development of strategies to reduce emissions and enhance sustainability.

The other options relate to broader themes of climate action but do not directly define GHG accounting. Evaluating the success of climate policies incorporates a wider scope of analysis beyond just emissions data, while balancing carbon credits and reducing energy costs are specific tactics that may stem from a solid understanding of GHG accounting, but do not define the accounting process itself.